Short Duration Contracts

12 Months Ended

Dec. 31, 2022

Short Duration Contracts Disclosure [Abstract]

Short duration contracts

The Company’s reserves for losses and loss adjustment expenses primarily relate to short-duration contracts with various characteristics (e.g., type of coverage, geography, claims duration). The Company considered such information in determining the level of disaggregation for disclosures related to its short-duration contracts, as detailed in the table below:

Reportable segment	Level of disaggregation	Included lines of business
Insurance	Property energy, marine and aviation	Property energy, marine and aviation
	Third party occurrence business	Excess and surplus casualty (excluding contract binding); construction and national accounts; and other (including alternative market risks, excess workers’ compensation and employer’s liability insurance coverages)
	Third party claims-made business	Professional lines
	Multi-line and other specialty	Programs; contract binding (part of excess and surplus casualty); travel, accident and health; warranty and lenders solutions; and other (contract and commercial surety coverages)
Reinsurance	Casualty	Casualty
	Property catastrophe	Property catastrophe
	Property excluding property catastrophe	Property excluding property catastrophe
	Marine and aviation	Marine and aviation
	Other specialty	Other specialty
Mortgage	Direct mortgage insurance in the U.S.	Mortgage insurance on U.S. primary exposures

The Company determined the following to be insignificant for disclosure purposes: (i) certain mortgage business, including non-U.S. primary business, second lien and student loan exposures, global mortgage reinsurance and participation in various GSE credit risk-sharing products and (ii) certain reinsurance business, including casualty clash and non-traditional lines. Such amounts are included as reconciling items.

The Company is required to establish reserves for losses and loss adjustment expenses (“Loss Reserves”) that arise from the business the Company underwrites. Loss Reserves for the insurance, reinsurance and mortgage segments represent estimates of future amounts required to pay losses and loss adjustment expenses for insured or reinsured events which have occurred at or before the balance sheet date. Loss Reserves do not reflect contingency reserve allowances to account for future loss occurrences. Losses arising from future events will be estimated and recognized at the time the losses are incurred and could be substantial.

Insurance Segment

Loss Reserves for the insurance segment are comprised of estimated amounts for (1) reported losses (“case reserves”) and (2) incurred but not reported losses (“IBNR reserves”). Generally, claims personnel determine whether to establish a case reserve for the estimated amount of the ultimate settlement of individual claims. The estimate reflects the judgment of claims personnel based on general corporate reserving practices, the experience and knowledge of such personnel regarding the nature and value of the specific type of claim and, where appropriate, advice of counsel. The Company also contracts with a number of outside third party administrators in the claims process who, in certain cases, have limited authority to establish case reserves. The work of such administrators is reviewed and monitored by our claims personnel. Loss Reserves are also established to provide for loss adjustment expenses and represent the estimated expense of settling claims, including legal and other fees and the general expenses of administering the claims adjustment process. Periodically, adjustments to the case reserves may be made as additional information is reported or payments are made. IBNR reserves are established to provide for incurred claims which have not yet been reported at the balance sheet date as well as to adjust for any projected variance in case reserving. Actuaries estimate ultimate losses and loss adjustment expenses using various generally accepted actuarial methods applied to known losses and other relevant information. Like case reserves, IBNR reserves are adjusted as additional information becomes known or payments are made. The process of estimating reserves involves a considerable degree of judgment by management and, as of any given date, is inherently uncertain.

Ultimate losses and loss adjustment expenses are generally determined by projection of claim emergence and settlement patterns observed in the past that can reasonably be expected to persist into the future. In forecasting ultimate losses and loss adjustment expenses with respect to any line of business, past experience with respect to that line of business is the primary resource, developed through both industry and company experience, but cannot be relied upon in isolation. Uncertainties in estimating ultimate losses and loss adjustment expenses are magnified by the length of the time lag between when a claim actually occurs and when it is reported and settled. This time lag is sometimes referred to as the “claim-tail.” During this period additional facts regarding coverages written in prior accident years, as well as about actual claims and trends, may become known and, as a result, may lead to adjustments of the related Loss Reserves. If the Company determines that an adjustment is appropriate, the adjustment is recorded in the accounting period in which such determination is made. Accordingly, should Loss Reserves need to be increased or decreased in the future from amounts currently established, future results of operations would be negatively or positively impacted respectively. The

Company authorizes managing general agents, general agents and other producers to write program business on the Company’s behalf within prescribed underwriting authorities. This delegated authority process introduces additional complexity to the actuarial determination of unpaid future losses and loss adjustment expenses. In order to monitor adherence to the underwriting guidelines given to such parties, the Company periodically performs underwriting and claims due diligence reviews.

In determining ultimate losses and loss adjustment expenses, the cost to indemnify claimants, provide needed legal defense and other services for insureds and administer the investigation and adjustment of claims are considered. These claim costs are influenced by many factors that change over time, such as expanded coverage definitions as a result of new court decisions, inflation in costs to repair or replace damaged property, inflation in the cost of medical services and legislated changes in statutory benefits, as well as by the particular, unique facts that pertain to each claim. As a result, the rate at which claims arose in the past and the costs to settle them may not always be representative of what will occur in the future. The factors influencing changes in claim costs are often difficult to isolate or quantify and developments in paid and incurred losses from historical trends are frequently subject to multiple and conflicting interpretations. Changes in coverage terms or claims handling practices may also cause future experience and/or development patterns to vary from the past. A key objective of actuaries in developing estimates of ultimate losses and loss adjustment expenses, and resulting IBNR reserves, is to identify aberrations and systemic changes occurring within historical experience and adjust for them so that the future can be projected more reliably. Because of the factors previously discussed, this process requires the substantial use of informed judgment and is inherently uncertain.

Although Loss Reserves are initially determined based on underwriting and pricing analyses, the Company’s insurance segment applies several generally accepted actuarial methods, as discussed below, on a quarterly basis to evaluate the Loss Reserves, in addition to the expected loss method, in particular for Loss Reserves from more mature accident years (the year in which a loss occurred). Each quarter, as part of the reserving process, the segments’ actuaries reaffirm that the assumptions used in the reserving process continue to form a sound basis for the projection of liabilities. If actual loss activity differs substantially from expectations based on historical information, an adjustment to Loss Reserves may be supported. The Company places more or less reliance on a particular actuarial method based on the facts and circumstances at the time the estimates of Loss Reserves are made.

These methods generally fall into one of the following categories or are hybrids of one or more of the following categories:

•Expected loss methods - these methods are based on the assumption that ultimate losses vary proportionately with premiums. Expected loss and loss adjustment expense ratios are typically developed based upon the information derived by underwriters and actuaries during the initial pricing of the business, supplemented by industry data available from organizations, such as statistical bureaus and consulting firms, where appropriate. These ratios consider, among other things, rate increases and changes in terms and conditions that have been observed in the market. Expected loss methods are useful for estimating ultimate losses and loss adjustment expenses in the early years of long-tailed lines of business, when little or no paid or incurred loss information is available, and is commonly applied when limited loss experience exists for a company.

•Historical incurred loss development methods - these methods assume that the ratio of losses in one period to losses in an earlier period will remain constant in the future. These methods use incurred losses (i.e., the sum of cumulative historical loss payments plus outstanding case reserves) over discrete periods of time to estimate future losses. Historical incurred loss development methods may be preferable to historical paid loss development methods because they explicitly take into account open cases and the claims adjusters’ evaluations of the cost to settle all known claims. However, historical incurred loss development methods necessarily assume that case reserving practices are consistently applied over time. Therefore, when there have been significant changes in how case reserves are established, using incurred loss data to project ultimate losses may be less reliable than other methods.

•Historical paid loss development methods - these methods, like historical incurred loss development methods, assume that the ratio of losses in one period to losses in an earlier period will remain constant. These methods use historical loss payments over discrete periods of time to estimate future losses and necessarily assume that factors that have affected paid losses in the past, such as inflation or the effects of litigation, will remain constant in the future. Because historical paid loss development methods do not use incurred losses to estimate ultimate losses, they may be more reliable than the other methods that use incurred losses in situations where there are significant changes in how incurred losses are established by a company’s claims adjusters. However, historical paid loss development methods are more leveraged (meaning that small changes in payments have a larger impact on estimates of ultimate losses) than

actuarial methods that use incurred losses because cumulative loss payments take much longer to equal the expected ultimate losses than cumulative incurred amounts. In addition, and for similar reasons, historical paid loss development methods are often slow to react to situations when new or different factors arise than those that have affected paid losses in the past.

•Adjusted historical paid and incurred loss development methods - these methods take traditional historical paid and incurred loss development methods and adjust them for the estimated impact of changes from the past in factors such as inflation, the speed of claim payments or the adequacy of case reserves. Adjusted historical paid and incurred loss development methods are often more reliable methods of predicting ultimate losses in periods of significant change, provided the actuaries can develop methods to reasonably quantify the impact of changes. As such, these methods utilize more judgment than historical paid and incurred loss development methods.

•Bornhuetter-Ferguson (“B-F”) paid and incurred loss methods - these methods utilize actual paid and incurred losses and expected patterns of paid and incurred losses, taking the initial expected ultimate losses into account to determine an estimate of expected ultimate losses. The B-F paid and incurred loss methods are useful when there are few reported claims and a relatively less stable pattern of reported losses.

•Frequency-Severity methods - These methods utilize actual paid and incurred claim experience, but break the data down into its component pieces: claim counts, often expressed as a ratio to exposure or premium (frequency), and average claim size (severity). The component pieces are projected to an ultimate level and multiplied together to result in an estimate of ultimate loss. These methods are especially useful when the severity of claims can be confined to a relatively stable range of estimated ultimate average claim value.

•Additional analyses - other methodologies are often used in the reserving process for specific types of claims or events, such as catastrophic or other specific major events. These include vendor catastrophe models, which are typically used in the estimation of Loss Reserves at the early stage of known catastrophic events before information has been reported to an insurer or reinsurer.

In the initial reserving process for short-tail insurance lines (consisting of property, energy, marine and aviation and other exposures including travel, accident and health, and warranty and lenders solutions), the Company relies on a combination of the reserving methods discussed above. For catastrophe-exposed business, the reserving process also includes the usage of catastrophe models for known events

and a heavy reliance on analysis of individual catastrophic events and management judgment. The development of losses on short-tail business can be unstable, especially for policies characterized by high severity, low frequency losses. As time passes, for a given accident year, additional weight is given to the paid and incurred B-F loss development methods and eventually to the historical paid and incurred loss development methods in the reserving process. The Company makes a number of key assumptions in their reserving process, including that historical paid and reported development patterns are stable, catastrophe models provide useful information about our exposure to catastrophic events that have occurred and underwriters’ judgment as to potential loss exposures can be relied on. The expected loss ratios used in the initial reserving process for short-tail business have varied over time due to changes in pricing, reinsurance structure, estimates of catastrophe losses, policy changes (such as attachment points, class and limits) and geographical distribution. As losses in short-tail lines are reported relatively quickly, expected loss ratios are selected for the current accident year based upon actual attritional loss ratios for earlier accident years, adjusted for rate changes, inflation, changes in reinsurance programs and expected attritional losses based on modeling. Furthermore, ultimate losses for short-tail business are known in a reasonably short period of time.

In the initial reserving process for medium-tail and long-tail insurance lines (consisting of third party occurrence business, third party claims made business, and other exposures including surety, programs and contract binding exposures), the Company primarily relies on the expected loss method. The development of the Company’s medium-tail and long-tail business may be unstable, especially if there are high severity major events, as a portion of the Company’s casualty business is in high excess layers. As time passes, for a given accident year, additional weight is given to the paid and incurred B-F loss development methods and historical paid and incurred loss development methods in the reserving process. The Company makes a number of key assumptions

in reserving for medium-tail and long-tail lines, including that the pricing loss ratio is the best estimate of the ultimate loss ratio at the time the policy is entered into, that the loss development patterns, which are based on a combination of company and industry loss development patterns and adjusted to reflect differences in the insurance segment’s mix of business, are reasonable and that claims personnel and underwriters analyses of our exposure to major events are assumed to be the best estimate of exposure to the known claims on those events. The expected loss ratios used in the initial reserving process for medium-tail and long-tail business for recent accident years have varied over time, in some cases significantly, from earlier accident years. As the credibility of historical experience for earlier accident years increases, the experience from these accident years will be given a greater weighting in the actuarial analysis to determine future accident year expected loss ratios, adjusted for changes in pricing, loss trends, terms and conditions and reinsurance structure.

From time to time, the Company enters into loss portfolio transfer and adverse development cover reinsurance agreements accounted for as retroactive reinsurance. These agreements transfer Loss Reserves and future favorable or adverse development on certain runoff programs and certain third party occurrence business, within multi-line and other specialty business (the “Covered Lines”). As incurred losses and allocated loss adjustment expenses for the Covered Lines are ceded to the reinsurer, the Company is not exposed to changes in the amount, timing and uncertainty of cash flows arising from the Covered Lines. To avoid distortion, the incurred losses and allocated loss adjustment expenses and cumulative paid losses and loss adjustment expenses for the Covered Lines are excluded entirely from the tables below. Unpaid loss and loss adjustment expenses recoverable at December 31, 2022 included $280.2 million related to such reinsurance agreements.

The following tables present information on the insurance segment’s short-duration insurance contracts:

Property, energy, marine and aviation ($000’s except claim count)
Incurred losses and allocated loss adjustment expenses, net of reinsurance																					December 31, 2022
																					Total of IBNR liabilities plus expected development on reported claims		Cumulative number of reported claims
	Year ended December 31,
Accident year	2013 unaudited		2014 unaudited		2015 unaudited		2016 unaudited		2017 unaudited		2018 unaudited		2019 unaudited		2020 unaudited		2021 unaudited		2022
2013	$	158,548	$	156,147	$	148,622	$	142,889	$	134,473	$	133,400	$	128,157	$	126,825	$	125,813	$	124,868	$	27	3,982
2014			148,104		145,679		147,248		136,050		132,166		134,192		134,895		134,803		133,605		1,674		3,557
2015					112,299		109,769		103,921		102,449		97,789		91,770		91,833		90,816		2,654		4,244
2016							104,002		100,843		105,184		100,003		95,989		92,108		87,618		61		5,704
2017									280,686		246,264		235,924		230,413		231,199		225,298		3,268		6,287
2018											180,981		186,030		173,693		170,057		170,411		7,177		5,048
2019													179,056		178,564		165,477		161,156		4,162		5,942
2020															359,394		329,362		335,747		28,330		8,546
2021																	426,870		428,719		54,746		7,566
2022																			521,750		208,080		8,965
																	Total		$	2,279,988
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance
2013	$	32,216	$	84,680	$	110,432	$	119,649	$	121,779	$	125,014	$	122,894	$	124,227	$	124,381	$	124,402
2014			25,849		53,632		77,764		84,061		87,681		98,423		115,253		122,165		122,792
2015					23,561		64,900		76,282		86,196		87,870		86,190		87,260		87,564
2016							24,684		83,218		98,303		97,089		94,570		90,808		87,232
2017									30,215		139,849		195,512		211,688		215,874		217,764
2018											30,026		102,285		134,858		142,838		149,663
2019													26,130		105,380		133,911		139,141
2020															55,619		194,487		251,055
2021																	90,423		267,677
2022																			100,476
									Total										1,547,766
									All outstanding liabilities before 2013, net of reinsurance										18,239
							Liabilities for losses and loss adjustment expenses, net of reinsurance												$	750,461

Third party occurrence business ($000’s except claim count)
	Incurred losses and allocated loss adjustment expenses, net of reinsurance																				December 31, 2022
																					Total of IBNR liabilities plus expected development on reported claims		Cumulative number of reported claims
	Year ended December 31,
Accident year	2013 unaudited		2014 unaudited		2015 unaudited		2016 unaudited		2017 unaudited		2018 unaudited		2019 unaudited		2020 unaudited		2021 unaudited		2022
2013	$	282,852	$	296,668	$	306,572	$	301,622	$	281,637	$	274,246	$	272,385	$	269,297	$	270,110	$	263,430	$	43,148	66,118
2014			329,718		335,587		338,505		342,759		339,403		343,904		342,641		343,286		345,024		60,263		75,557
2015					358,769		391,570		398,565		391,797		391,132		382,427		386,465		379,226		75,540		78,507
2016							389,530		394,190		405,803		399,315		374,654		367,586		363,453		93,800		78,576
2017									417,097		417,662		422,360		412,231		406,857		406,165		114,603		84,418
2018											430,128		452,879		450,647		451,164		458,050		156,700		77,685
2019													455,928		487,080		480,535		471,279		195,283		84,985
2020															606,640		616,314		640,231		309,019		90,795
2021																	621,972		662,716		431,302		89,718
2022																			688,082		614,366		70,380
																	Total		$	4,677,656
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance
2013	$	6,840	$	29,215	$	71,335	$	101,153	$	122,045	$	149,012	$	164,090	$	174,591	$	184,444	$	192,159
2014			9,200		40,226		71,473		112,541		161,935		191,108		211,440		223,895		237,135
2015					11,110		44,514		88,411		139,364		181,505		211,510		227,439		249,399
2016							11,679		41,920		87,543		136,759		164,534		194,637		215,481
2017									13,391		52,309		99,806		134,988		165,468		220,660
2018											16,991		63,776		115,049		154,138		198,502
2019													18,375		73,075		121,646		172,948
2020															24,407		76,567		154,902
2021																	26,235		90,791
2022																			23,981
									Total										1,755,958
									All outstanding liabilities before 2013, net of reinsurance										263,297
							Liabilities for losses and loss adjustment expenses, net of reinsurance												$	3,184,995

Third party claims-made business ($000’s except claim count)
Incurred losses and allocated loss adjustment expenses, net of reinsurance																					December 31, 2022
																					Total of IBNR liabilities plus expected development on reported claims		Cumulative number of reported claims
	Year ended December 31,
Accident year	2013 unaudited		2014 unaudited		2015 unaudited		2016 unaudited		2017 unaudited		2018 unaudited		2019 unaudited		2020 unaudited		2021 unaudited		2022
2013	$	301,608	$	320,266	$	324,044	$	320,177	$	294,372	$	290,852	$	281,642	$	271,156	$	273,607	$	281,584	$	14,639	14,953
2014			264,273		279,410		298,541		278,556		281,271		297,248		291,498		287,573		296,153		21,206		15,482
2015					258,740		277,358		276,256		259,830		255,207		252,263		267,725		266,758		18,198		14,392
2016							274,996		291,258		308,080		314,412		321,764		326,960		329,534		29,356		15,083
2017									270,272		285,738		311,724		308,172		323,128		316,673		45,042		15,198
2018											272,543		314,112		319,646		336,106		347,449		61,612		15,934
2019													289,128		317,312		317,363		322,178		93,422		15,858
2020															383,497		413,156		423,375		187,245		15,438
2021																	514,676		517,975		351,736		15,751
2022																			657,664		575,484		18,190
																	Total		$	3,759,343
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance
2013	$	19,007	$	87,386	$	137,857	$	179,261	$	197,861	$	216,984	$	238,730	$	245,423	$	246,813	$	253,570
2014			13,814		63,288		129,409		172,722		207,447		229,314		243,137		249,307		260,333
2015					9,059		52,007		100,030		126,431		174,084		193,105		216,892		220,871
2016							10,537		68,157		127,203		158,127		205,478		242,300		256,705
2017									9,281		67,529		112,975		143,064		195,788		232,508
2018											12,241		68,244		118,105		158,389		208,063
2019													12,373		65,286		122,046		154,630
2020															17,070		87,248		151,750
2021																	23,253		90,487
2022																			25,244
									Total										1,854,161
									All outstanding liabilities before 2013, net of reinsurance										86,120
							Liabilities for losses and loss adjustment expenses, net of reinsurance												$	1,991,302

Multi-line and other specialty ($000’s except claim count)
Incurred losses and allocated loss adjustment expenses, net of reinsurance																					December 31, 2022
																					Total of IBNR liabilities plus expected development on reported claims		Cumulative number of reported claims
	Year ended December 31,
Accident year	2013 unaudited		2014 unaudited		2015 unaudited		2016 unaudited		2017 unaudited		2018 unaudited		2019 unaudited		2020 unaudited		2021 unaudited		2022
2013	$	264,243	$	272,335	$	263,631	$	263,928	$	251,894	$	253,271	$	248,634	$	245,825	$	245,069	$	244,191	$	2,761	86,371
2014			301,548		325,705		318,453		318,268		317,197		313,221		310,051		309,061		310,977		3,968		130,844
2015					334,684		357,939		356,777		364,815		356,657		349,432		347,206		344,974		5,632		170,579
2016							408,686		430,976		427,829		416,108		409,987		408,004		408,716		8,616		189,406
2017									482,436		501,026		491,347		500,947		504,322		512,717		12,776		229,570
2018											512,406		564,563		562,848		565,116		564,693		21,722		256,621
2019													566,864		612,179		640,262		651,004		38,672		250,441
2020															618,340		569,123		515,016		87,261		162,214
2021																	635,186		618,581		153,336		113,165
2022																			678,479		425,107		89,859
																	Total		$	4,849,348
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance
2013	$	86,680	$	150,925	$	180,428	$	213,461	$	225,324	$	234,330	$	236,375	$	237,293	$	238,321	$	238,257
2014			107,726		196,899		234,267		267,079		281,195		291,727		293,131		294,630		295,896
2015					138,153		236,108		277,850		305,895		320,971		326,652		330,431		331,320
2016							175,948		304,743		341,789		362,823		379,305		385,314		390,350
2017									181,102		342,385		380,696		423,480		446,002		471,978
2018											211,711		389,047		442,643		479,824		508,649
2019													211,970		385,794		486,882		548,844
2020															171,994		309,106		358,967
2021																	156,992		334,549
2022																			177,092
									Total										3,655,902
									All outstanding liabilities before 2013, net of reinsurance										22,275
							Liabilities for losses and loss adjustment expenses, net of reinsurance												$	1,215,721

The following table presents the average annual percentage payout of incurred losses and allocated loss adjustment expenses by age, net of reinsurance, as of December 31, 2022:

	Average annual percentage payout of incurred losses and allocated loss adjustment expenses by age, net of reinsurance
	Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10
Property, energy, marine and aviation	20.3	%	44.2	%	18.4	%	5.2	%	1.5	%	1.1	%	2.0	%	2.2	%	0.3	%	—	%
Third party occurrence business	3.4	%	9.3	%	11.8	%	11.2	%	9.7	%	9.7	%	5.4	%	4.5	%	3.8	%	2.9	%
Third party claims-made business	4.1	%	17.2	%	17.2	%	11.4	%	13.6	%	8.8	%	6.4	%	2.0	%	2.1	%	2.4	%
Multi-line and other specialty	34.3	%	28.9	%	10.9	%	8.8	%	4.5	%	3.1	%	0.9	%	0.4	%	0.4	%	—	%

Reinsurance Segment

Loss Reserves for the Company’s reinsurance segment are comprised of (1) case reserves, (2) additional case reserves (“ACRs”) and (3) IBNR reserves. The Company receives reports of claims notices from ceding companies and records case reserves based upon the amount of reserves recommended by the ceding company. Case reserves may be supplemented by ACRs, which may be estimated by the Company’s claims personnel ahead of official notification from the ceding company, or when judgment regarding the size or severity of the known event differs from the ceding company. In certain instances, the Company establishes ACRs even when the ceding company does not report any liability on a known event. In addition, specific claim information reported by ceding companies or obtained through claim audits can alert the Company to emerging trends such as changing legal interpretations of coverage and liability, claims from unexpected sources or classes of business, and significant changes in the frequency or severity of individual claims. Such information is often used in the process of estimating IBNR reserves. IBNR reserves are established to provide for incurred claims which have not yet been reported at the balance sheet date as well as to adjust for any projected variance in case reserving. Actuaries estimate ultimate losses and loss adjustment expenses using various generally accepted actuarial methods applied to known losses and other relevant information. Like case reserves, IBNR reserves are adjusted as additional information becomes known or payments are made. The process of estimating Loss Reserves involves a considerable degree of judgment by management and, as of any given date, is inherently uncertain.

The estimation of Loss Reserves for the reinsurance segment is subject to the same risk factors as the estimation of Loss Reserves for the insurance segment. In addition, the inherent uncertainties of estimating such reserves are even greater for reinsurers, due primarily to the following factors: (1) the claim-tail for reinsurers is generally longer because claims are first reported to the ceding company and then to the reinsurer through one or more intermediaries, (2) the reliance on premium estimates, where reports have not been received from the ceding company, in the reserving process, (3) the potential for writing a number of reinsurance contracts with different ceding companies with the same exposure to a single loss event, (4) the diversity of loss development

patterns among different types of reinsurance contracts, (5) the necessary reliance on the ceding companies for information regarding reported claims and (6) the differing reserving practices among ceding companies.

Ultimate losses and loss adjustment expenses are generally determined by projection of claim emergence and settlement patterns observed in the past that can reasonably be expected to persist into the future. As with the insurance segment, the process of estimating Loss Reserves for the reinsurance segment involves a considerable degree of judgment by management and, as of any given date, is inherently uncertain. As discussed above, such uncertainty is greater for reinsurers compared to insurers. As a result, our reinsurance operations obtain information from numerous sources to assist in the process. Pricing actuaries from the reinsurance segment devote considerable effort to understanding and analyzing a ceding company’s operations and loss history during the underwriting of the business, using a combination of ceding company and industry statistics. Such statistics normally include historical premium and loss data by class of business, individual claim information for larger claims, distributions of insurance limits provided, loss reporting and payment patterns, and rate change history. This analysis is used to project expected loss ratios for each treaty during the upcoming contract period.

As mentioned above, there can be a considerable time lag from the time a claim is reported to a ceding company to the time it is reported to the reinsurer. The lag can be several years in some cases and may be attributed to a number of reasons, including the time it takes to investigate a claim, delays associated with the litigation process, the deterioration in a claimant’s physical condition many years after an accident occurs, the case reserving approach of the ceding company, etc. In the reserving process, the Company assumes that such lags are predictable, on average, over time and therefore the lags are contemplated in the loss reporting patterns used in their actuarial methods. This means that the reinsurance segment must rely on estimates for a longer period of time than does an insurance company. Backlogs in the recording of assumed reinsurance can also complicate the accuracy of loss reserve estimation. As of December 31, 2022 there were no significant backlogs related to the processing of assumed reinsurance information at our reinsurance operations.

The reinsurance segment relies heavily on information reported by ceding companies, as discussed above. In order to determine the accuracy and completeness of such information, underwriters, actuaries, and claims personnel often perform audits of ceding companies and regularly review information received from ceding companies for unusual or unexpected results. Material findings are usually discussed with the ceding companies. The Company sometimes encounters situations where they determine that a claim presentation from a ceding company is not in accordance with contract terms. In these situations, the Company attempts to resolve the dispute with the ceding company. Most situations are resolved amicably and without the need for litigation or arbitration. However, in the infrequent situations where a resolution is not possible, the Company will vigorously defend its position in such disputes.

Although Loss Reserves are initially determined based on underwriting and pricing analysis, the Company applies several generally accepted actuarial methods, as discussed above, on a quarterly basis to evaluate its Loss Reserves in addition to the expected loss method, in particular for reserves from more mature underwriting years (the year in which business is underwritten). Each quarter, as part of the reserving process, the Company’s actuaries reaffirm that the assumptions used in the reserving process continue to form a sound basis for projection of liabilities. If actual loss activity differs substantially from expectations based on historical information, an adjustment to Loss Reserves may be supported. Estimated Loss Reserves for more mature underwriting years are now based more on actual loss activity and historical patterns than on the initial assumptions based on pricing indications. More recent underwriting years rely more heavily on internal pricing assumptions. The Company places more or less reliance on a particular actuarial method based on the facts and circumstances at the time the estimates of Loss Reserves are made.

In the initial reserving process for short-tail reinsurance lines (consisting of property excluding property catastrophe and property catastrophe exposures), the Company relies on a combination of the reserving methods discussed above. For known catastrophic events, the reserving process also includes the usage of catastrophe models and a heavy reliance on analysis which includes ceding company inquiries and management judgment. The development of property losses may be unstable, especially where there is high catastrophic exposure, may be characterized by high severity, low frequency losses for excess and catastrophe-exposed business and may be highly correlated across contracts. As time passes, for a given underwriting year, additional weight is given to the paid and incurred B-F loss development methods and historical paid and incurred loss development

methods in the reserving process. The Company makes a number of key assumptions in reserving for short-tail lines, including that historical paid and reported development patterns are stable, catastrophe models provide useful information about our exposure to catastrophic events that have occurred and our underwriters’ judgment and guidance received from ceding companies as to potential loss exposures may be relied on. The expected loss ratios used in the initial reserving process for property exposures have varied over time due to changes in pricing, reinsurance structure, estimates of catastrophe losses, terms and conditions and geographical distribution. As losses in property lines are reported relatively quickly, expected loss ratios are selected for the current underwriting year incorporating the experience for earlier underwriting years, adjusted for rate changes, inflation, changes in reinsurance programs, expectations about present and future market conditions and expected attritional losses based on modeling. Due to the short-tail nature of property business, reported loss experience emerges quickly and ultimate losses are known in a reasonably short period of time.

In the initial reserving process for medium-tail and long-tail reinsurance lines (consisting of casualty, other specialty, marine and aviation and other exposures), the Company primarily relies on the expected loss method. The development of medium-tail and long-tail business may be unstable, especially if there are high severity major events, with business written on an excess of loss basis typically having a longer tail than business written on a pro rata basis. As time passes, for a given underwriting year, additional weight is given to the paid and incurred B-F loss development methods and eventually to the historical paid and incurred loss development methods in the reserving process. Our reinsurance operations make a number of key assumptions in reserving for medium-tail and long-tail lines, including that the pricing loss ratio is the best estimate of the ultimate loss ratio at the time the contract is entered into, historical paid and reported development patterns are stable and claims personnel and underwriters’ analyses of our exposure to major events are our best estimate of our exposure to the known claims on those events. The expected loss ratios used in our reinsurance operations’ initial reserving process for medium-tail and long-tail contracts have varied over time due to changes in pricing, terms and conditions and reinsurance structure. As the credibility of historical experience for earlier underwriting years increases, the experience from these underwriting years is used in the actuarial analysis to determine future underwriting year expected loss ratios, adjusted for changes in pricing, loss trends, terms and conditions and reinsurance structure.

The following tables present information on the reinsurance segment’s short-duration insurance contracts:

Casualty ($000’s)
Incurred losses and allocated loss adjustment expenses, net of reinsurance																					December 31, 2022
																					Total of IBNR liabilities plus expected development on reported claims		Cumulative number of reported claims
	Year ended December 31,
Accident year	2013 unaudited		2014 unaudited		2015 unaudited		2016 unaudited		2017 unaudited		2018 unaudited		2019 unaudited		2020 unaudited		2021 unaudited		2022
2013	$	163,425	$	156,619	$	152,392	$	146,230	$	134,204	$	132,701	$	129,120	$	133,401	$	133,687	$	133,094	$	26,542	N/A
2014			212,923		217,991		214,724		227,485		224,105		233,922		234,293		230,944		231,175		33,255		N/A
2015					217,343		216,759		224,385		231,473		235,637		242,554		245,756		247,419		44,753		N/A
2016							208,192		221,004		242,089		257,214		264,573		264,475		268,079		46,122		N/A
2017									262,894		251,827		267,173		293,381		304,194		310,858		52,415		N/A
2018											270,621		284,405		276,802		281,852		293,320		56,325		N/A
2019													325,359		334,755		361,549		372,669		93,310		N/A
2020															378,668		367,595		349,831		169,909		N/A
2021																	434,187		431,165		292,696		N/A
2022																			541,941		482,552		N/A
																	Total		$	3,179,551
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance
2013	$	2,421	$	9,822	$	22,886	$	42,861	$	54,323	$	62,751	$	70,289	$	76,141	$	81,167	$	87,485
2014			3,885		15,973		40,651		63,214		90,530		113,596		133,263		143,929		152,586
2015					4,440		20,208		46,933		70,523		95,988		119,096		136,138		151,119
2016							5,720		25,626		51,494		86,362		112,818		131,341		155,584
2017									6,417		30,316		63,922		112,474		136,489		163,243
2018											7,576		31,240		106,443		128,728		154,173
2019													15,798		57,568		96,593		129,766
2020															17,646		50,383		90,156
2021																	14,633		53,264
2022																			17,638
									Total										1,155,014
									All outstanding liabilities before 2013, net of reinsurance										299,288
							Liabilities for losses and loss adjustment expenses, net of reinsurance												$	2,323,825

Property catastrophe ($000’s)
Incurred losses and allocated loss adjustment expenses, net of reinsurance																					December 31, 2022
																					Total of IBNR liabilities plus expected development on reported claims		Cumulative number of reported claims
	Year ended December 31,
Accident year	2013 unaudited		2014 unaudited		2015 unaudited		2016 unaudited		2017 unaudited		2018 unaudited		2019 unaudited		2020 unaudited		2021 unaudited		2022
2013	$	65,372	$	45,962	$	34,959	$	30,518	$	27,974	$	27,248	$	26,415	$	26,543	$	26,344	$	26,221	$	(138)	N/A
2014			43,800		29,801		24,500		21,764		20,026		19,326		19,229		19,004		19,045		(10)		N/A
2015					32,748		17,558		11,425		5,531		3,779		3,133		2,932		2,569		68		N/A
2016							23,224		16,582		12,749		9,190		6,886		5,987		5,181		877		N/A
2017									86,410		53,699		49,507		35,893		24,239		21,026		(803)		N/A
2018											73,041		52,001		33,425		19,831		10,722		3,039		N/A
2019													25,526		14,252		13,093		4,590		4,576		N/A
2020															260,244		322,680		326,262		33,413		N/A
2021																	308,014		302,124		29,963		N/A
2022																			299,636		73,474		N/A
																	Total		$	1,017,376
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance
2013	$	12,035	$	18,496	$	23,001	$	24,697	$	26,329	$	26,549	$	26,549	$	27,233	$	26,998	$	27,023
2014			13,619		19,544		17,902		18,679		18,244		18,421		18,550		18,629		18,592
2015					(3,141)		(2,109)		1,843		2,103		1,659		1,745		1,817		1,874
2016							(7,039)		1,759		1,870		2,932		2,086		2,433		2,594
2017									30,625		31,621		37,084		27,060		14,215		16,034
2018											27,424		7,344		18,253		(10,934)		(8,100)
2019													4,374		8,845		12,895		(11,472)
2020															52,592		152,075		200,510
2021																	64,408		167,806
2022																			69,969
									Total										484,830
									All outstanding liabilities before 2013, net of reinsurance										2,612
							Liabilities for losses and loss adjustment expenses, net of reinsurance												$	535,158

Property excluding property catastrophe ($000’s)
Incurred losses and allocated loss adjustment expenses, net of reinsurance																					December 31, 2022
																					Total of IBNR liabilities plus expected development on reported claims		Cumulative number of reported claims
	Year ended December 31,
Accident year	2013 unaudited		2014 unaudited		2015 unaudited		2016 unaudited		2017 unaudited		2018 unaudited		2019 unaudited		2020 unaudited		2021 unaudited		2022
2013	$	114,775	$	76,290	$	69,981	$	65,734	$	64,013	$	63,247	$	62,070	$	62,774	$	62,288	$	63,390	$	29	N/A
2014			142,092		116,331		98,263		90,031		87,768		83,476		81,812		80,348		79,307		443		N/A
2015					213,681		187,932		183,709		187,569		186,861		175,812		172,189		166,580		3,909		N/A
2016							174,506		144,323		136,367		134,362		138,216		135,116		128,941		6,208		N/A
2017									266,628		247,462		235,310		227,891		212,133		204,128		8,794		N/A
2018											222,932		238,876		234,794		211,852		201,429		7,370		N/A
2019													214,513		204,620		194,164		189,456		8,407		N/A
2020															366,726		338,712		319,097		36,912		N/A
2021																	545,101		497,059		83,934		N/A
2022																			742,703		360,528		N/A
																	Total		$	2,592,090
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance
2013	$	25,943	$	42,418	$	49,433	$	52,614	$	53,400	$	55,272	$	60,777	$	61,640	$	61,665	$	63,228
2014			23,342		62,414		71,144		76,060		77,687		78,067		78,029		77,728		77,894
2015					75,458		118,396		148,887		159,482		164,637		158,293		158,537		159,054
2016							33,236		94,121		97,918		103,202		111,039		113,300		114,432
2017									27,456		124,220		155,139		162,933		177,737		181,029
2018											29,654		107,172		151,632		166,598		174,778
2019													42,919		123,293		149,377		161,573
2020															100,927		207,061		242,844
2021																	135,815		269,481
2022																			142,938
									Total										1,587,251
									All outstanding liabilities before 2013, net of reinsurance										5,765
							Liabilities for losses and loss adjustment expenses, net of reinsurance												$	1,010,604

Marine and aviation ($000’s)
Incurred losses and allocated loss adjustment expenses, net of reinsurance																					December 31, 2022
																					Total of IBNR liabilities plus expected development on reported claims		Cumulative number of reported claims
	Year ended December 31,
Accident year	2013 unaudited		2014 unaudited		2015 unaudited		2016 unaudited		2017 unaudited		2018 unaudited		2019 unaudited		2020 unaudited		2021 unaudited		2022
2013	$	38,167	$	36,765	$	35,669	$	34,293	$	34,207	$	33,453	$	33,001	$	29,434	$	26,728	$	25,695	$	1,012	N/A
2014			30,566		28,757		26,995		25,297		23,302		22,919		21,698		21,651		18,511		800		N/A
2015					33,134		37,019		31,499		31,373		30,423		28,120		27,299		25,008		1,514		N/A
2016							27,258		22,625		23,448		19,122		16,834		14,896		11,952		4,080		N/A
2017									28,590		26,165		23,613		20,749		19,842		17,329		4,178		N/A
2018											27,613		25,680		24,058		24,192		21,052		3,738		N/A
2019													48,383		54,684		60,321		60,635		5,574		N/A
2020															82,716		75,695		79,338		28,621		N/A
2021																	110,129		95,586		51,391		N/A
2022																			125,685		99,917		N/A
																	Total		$	480,791
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance
2013	$	4,751	$	13,054	$	17,678	$	20,580	$	21,557	$	22,803	$	23,176	$	22,941	$	22,912	$	23,648
2014			4,005		7,795		11,335		12,209		14,368		14,794		15,650		15,729		17,084
2015					(6)		13,321		18,852		20,623		22,318		21,971		22,114		22,297
2016							(7,371)		(1,739)		445		3,169		5,764		6,656		7,028
2017									1,650		6,433		9,249		10,897		11,488		11,817
2018											1,993		6,817		11,021		13,332		13,923
2019													10,537		21,261		28,680		34,637
2020															9,096		26,129		42,203
2021																	8,407		24,108
2022																			12,101
									Total										208,846
									All outstanding liabilities before 2013, net of reinsurance										17,999
							Liabilities for losses and loss adjustment expenses, net of reinsurance												$	289,944

Other specialty ($000’s)
Incurred losses and allocated loss adjustment expenses, net of reinsurance																					December 31, 2022
																					Total of IBNR liabilities plus expected development on reported claims		Cumulative number of reported claims
	Year ended December 31,
Accident year	2013 unaudited		2014 unaudited		2015 unaudited		2016 unaudited		2017 unaudited		2018 unaudited		2019 unaudited		2020 unaudited		2021 unaudited		2022
2013	$	304,905	$	280,398	$	269,105	$	267,106	$	266,970	$	264,418	$	263,713	$	257,960	$	255,453	$	254,380	$	4,327	N/A
2014			328,056		308,074		310,153		303,589		298,357		299,789		295,270		289,460		287,941		6,034		N/A
2015					271,235		269,237		267,079		263,826		263,985		261,158		250,103		248,848		6,340		N/A
2016							313,982		310,907		303,432		295,116		301,277		296,251		293,571		8,371		N/A
2017									382,884		375,347		357,762		357,212		355,763		351,478		22,234		N/A
2018											402,372		395,484		390,135		413,116		408,905		32,668		N/A
2019													414,049		393,864		387,810		383,491		38,889		N/A
2020															579,367		511,136		506,164		57,946		N/A
2021																	589,452		590,091		148,264		N/A
2022																			924,130		601,334		N/A
																	Total		$	4,248,999
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance
2013	$	81,609	$	155,936	$	188,651	$	209,775	$	222,292	$	229,228	$	237,023	$	237,559	$	240,669	$	243,881
2014			92,743		181,222		223,243		240,680		250,427		263,123		266,898		270,529		271,712
2015					80,453		157,176		190,699		204,444		216,683		227,879		230,640		231,384
2016							103,649		196,496		231,761		249,699		265,763		271,609		277,028
2017									130,150		245,165		285,299		299,405		312,273		322,863
2018											124,996		265,000		303,141		323,868		340,061
2019													116,762		204,625		267,972		293,260
2020															129,621		285,729		361,031
2021																	146,503		300,025
2022																			175,834
									Total										2,817,079
									All outstanding liabilities before 2013, net of reinsurance										13,001
							Liabilities for losses and loss adjustment expenses, net of reinsurance												$	1,444,921

The following table presents the average annual percentage payout of incurred losses and allocated loss adjustment expenses by age, net of reinsurance, as of December 31, 2022:

	Average annual percentage payout of incurred losses and allocated loss adjustment expenses by age, net of reinsurance
	Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10
Casualty	2.8	%	7.8	%	12.4	%	11.3	%	9.5	%	8.2	%	7.5	%	5.0	%	3.8	%	4.7	%
Property catastrophe	41.7	%	27.3	%	49.4	%	(115.6)	%	(10.7)	%	4.1	%	1.7	%	1.7	%	(0.5)	%	0.1	%
Property excluding property catastrophe	27.0	%	37.4	%	13.2	%	5.6	%	4.0	%	0.6	%	2.4	%	0.4	%	0.1	%	2.5	%
Marine and aviation	4.5	%	28.8	%	18.3	%	10.9	%	8.4	%	3.0	%	2.4	%	0.1	%	3.6	%	2.9	%
Other specialty	29.9	%	29.9	%	13.1	%	6.0	%	4.4	%	3.3	%	1.8	%	0.6	%	0.8	%	1.3	%

Mortgage Segment

The Company’s mortgage segment includes (1) U.S. primary mortgage insurance (2) U.S. credit risk transfer and other, and (3) international mortgage insurance and reinsurance. The latter two categories along with second lien and student loan exposures are excluded on the basis of insignificance for the purposes of presenting disclosures related to short duration contracts.

For primary mortgage insurance business, the Company establishes case reserves for loans that have been reported as delinquent by loan servicers as well as those that are delinquent but not reported (IBNR reserves). The Company also reserves for the expenses of adjusting claims related to these delinquencies. The trigger that creates a case reserve estimate is that an insured loan is reported to us as being two payments in arrears. The actuarial reviews and documentation created in the reserving process are completed in accordance with generally accepted actuarial standards.

The selected assumptions reflect actuarial judgment based on the analysis of historical data and experience combined with information concerning current underwriting, economic, judicial, regulatory and other influences on ultimate claim settlements.

Because the reserving process requires the Company to forecast future conditions, it is inherently uncertain and requires significant judgment and estimation. The use of different estimates would result in the establishment of different reserve levels. Additionally, changes in estimates are likely to occur from period to period as economic conditions change, and the ultimate liability may vary significantly from the estimates used. Major risk factors include (but are not limited to) changes in home prices and borrower equity, which can limit the borrower’s ability to sell the property and satisfy the outstanding loan balance, and changes in unemployment, which can affect the borrower’s income and ability to make mortgage payments. The unique nature of the COVID-19 pandemic, with no historical

precedent, adds further uncertainty to current reserve estimates.

The lead actuarial methodology used by the Company is a frequency-severity method based on the inventory of pending delinquencies. Each month the loan servicers report the delinquency status of each insured loan. Using the frequency-severity method allows the Company to take advantage of its knowledge of the number of delinquent loans and the coverage provided (“risk size”) on those loans by directly relating the reserves to these amounts. The delinquencies are grouped into homogeneous cohorts for analysis, reflecting the age of delinquency. A claim rate is then developed for each cohort which represents the frequency with which the delinquencies become claims. The claim frequency rates are based on an analysis of the patterns of emerging cure counts and claim counts, the foreclosure status of the pending delinquencies, the product and geographical mix of the delinquencies and our view of future economic and claim conditions, which include trends in home prices and unemployment. Claim rates can vary materially by age of delinquency, depending on the mix of delinquencies and economic conditions.

Claim size severity estimates are determined by examining the risk sizes on the delinquent loans and estimating the portion of risk that will be paid, as well as any expenses. This is done based on a review of historical development patterns, an assessment of economic conditions and the level of equity the borrowers may have in their homes, as well as considering economic conditions and loss mitigation opportunities. Mortgage insurance is generally not subject to large claim sizes, as with some other lines of insurance. A claim size over $250,000 is rare, and this helps reduce the volatility of claim size estimates.

The claim rate and claim size assumptions generate case reserves for the population of reported delinquencies. The reserve for unreported delinquencies (included in IBNR reserves) is estimated by looking at historical patterns of reporting. Claim rates and claim sizes can then be assigned to estimated unreported delinquencies using assumptions made in the establishment of case reserves.

Mortgage insurance Loss Reserves are short-tail, in the sense that the vast majority of delinquencies are resolved within two years of being reported. Due to the forbearances and foreclosure moratoriums associated with COVID-19, settlement timelines have been extended. While reserves are initially analyzed by reserve cohort, as described above, they are also rolled up by underwriting year to ensure that reserve assumptions are consistent with the performance of the underwriting year. The accuracy of prior reserve assumptions is also checked in hindsight to determine if adjustments to the assumptions are needed.

Loss Reserves for the Company’s mortgage reinsurance business and GSE credit risk sharing transactions are comprised of case reserves and IBNR reserves. The Company’s mortgage reinsurance operations receive reports of delinquent loans and claims notices from ceding companies and record case reserves based upon the amount of reserves recommended by the ceding company. In addition, specific claim and delinquency information reported by ceding companies is used in the process of estimating IBNR reserves.

The following table presents information on the mortgage segment’s short-duration insurance contracts:

U.S. primary mortgage insurance ($000’s except claim count)
Incurred losses and allocated loss adjustment expenses, net of reinsurance																					December 31, 2022
																					Total of IBNR liabilities plus expected development on reported claims	Cumulative number of paid claims
Year ended December 31,
Accident year	2013 unaudited		2014 unaudited		2015 unaudited		2016 unaudited		2017 unaudited		2018 unaudited		2019 unaudited		2020 unaudited		2021 unaudited		2022
2013	$	469,311	$	419,668	$	411,793	$	405,809	$	395,693	$	393,149	$	390,987	$	391,062	$	391,324	$	390,299	2	9,474
2014			316,095		297,151		279,434		266,027		265,992		261,091		262,682		262,829		260,554		4	6,311
2015					222,790		197,238		198,001		194,677		189,235		190,913		190,560		188,649		1	4,573
2016							183,556		170,532		148,715		140,608		142,392		141,657		137,415		—	3,445
2017									179,376		132,220		107,255		108,181		109,242		102,005		(1)	2,516
2018											132,318		96,357		89,120		87,962		71,976		(4)	1,718
2019													108,424		119,253		110,362		63,485		74	1,002
2020															420,003		373,533		78,334		476	299
2021																	144,375		77,212		379	72
2022																			173,327		2,147	7
															Total				$	1,543,256
Cumulative paid losses and allocated loss adjustment expenses, net of reinsurance
2013	41,447		203,957		308,956		353,189		373,909		382,200		386,853		387,894		387,879		388,036
2014			20,099		129,159		201,925		233,879		247,038		254,175		256,285		256,875		257,232
2015					16,159		92,431		151,222		171,337		180,321		183,472		184,025		184,955
2016							11,462		72,201		113,357		127,286		131,161		131,717		132,387
2017									8,622		48,112		78,650		87,317		89,756		91,645
2018											3,966		31,478		50,135		55,853		58,687
2019													2,899		20,105		29,102		34,178
2020															1,040		4,144		7,740
2021																	469		1,687
2022																			176
																			1,156,723
									All outstanding liabilities before 2013, net of reinsurance										10,585
							Liabilities for losses and loss adjustment expenses, net of reinsurance												$	397,118

The following table presents the average annual percentage payout of incurred losses and allocated loss adjustment expenses by age, net of reinsurance, as of December 31, 2022:

Average annual percentage payout of incurred losses and allocated loss adjustment expenses by age, net of reinsurance
	Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10
U.S. Primary	5.6	%	30.9	%	23.8	%	9.8	%	4.0	%	1.8	%	0.7	%	0.3	%	0.1	%	—	%

The following table represents a reconciliation of the disclosures of net incurred and paid loss development tables to the reserve for losses and loss adjustment expenses at December 31, 2022:

	December 31, 2022
Net outstanding liabilities
Insurance
Property, energy, marine and aviation	$	750,461
Third party occurrence business	3,184,995
Third party claims-made business	1,991,302
Multi-line and other specialty	1,215,721
Reinsurance
Casualty	2,323,825
Property catastrophe	535,158
Property excluding property catastrophe	1,010,604
Marine and aviation	289,944
Other specialty	1,444,921
Mortgage
U.S. primary	397,118
Other short duration lines not included in disclosures	301,222
Total for short duration lines	13,445,271
Unpaid losses and loss adjustment expenses recoverable
Insurance
Property, energy, marine and aviation	423,740
Third party occurrence business	1,761,871
Third party claims-made business	995,921
Multi-line and other specialty	173,051
Reinsurance
Casualty	684,663
Property catastrophe	595,740
Property excluding property catastrophe	206,867
Marine and aviation	186,416
Other specialty	656,130
Mortgage
U.S. primary	37,531
Other short duration lines not included in disclosures (1)	560,642
Intercompany eliminations	(3,747)
Total for short duration lines	6,278,825
Lines other than short duration	102,283
Discounting	(60,536)
Unallocated claims adjustment expenses	266,100
	307,847
Total gross reserves for losses and loss adjustment expenses	$	20,031,943

(1)    Includes unpaid loss and loss adjustment expenses recoverable of $280.2 million related to the loss portfolio transfer reinsurance agreements.