Reserves for Losses and Loss Adjustment Expenses

12 Months Ended

Dec. 31, 2022

Insurance [Abstract]

Reserves for Losses and Loss Adjustment Expenses

Reserves for Losses and Loss Adjustment Expenses

The following table provides a reconciliation of reserves for losses and loss adjustment expenses (“LAE”):

	For the Years Ended December 31,
(in millions)	2022		2021		2020
Net reserves beginning of the year	$	3,123.2	$	2,906.1	$	2,722.7
Net Ariel Indemnity Limited reserves acquired	—		—		27.9
Add:
Losses and LAE incurred during current calendar year, net of reinsurance:
Current accident year	1,102.2		1,176.3		1,201.1
Prior accident years	64.7		138.3		7.7
Losses and LAE incurred during calendar year, net of reinsurance	1,166.9		1,314.6		1,208.8
Deduct:
Losses and LAE payments made during current calendar year, net of reinsurance:
Current accident year	171.5		180.8		253.4
Prior accident years	828.0		688.4		866.4
Losses and LAE payments made during current calendar year, net of reinsurance:	999.5		869.2		1,119.8
Less:
Divestitures (1)	35.2		—		—
Reclassified to liabilities held-for-sale (2)	313.0		—		—
Net reserves ceded to Syndicate 1200 (2)	129.6		—		—
Loss portfolio transfer:
U.S. (3)	472.6		—		—
Syndicate 1200 (for years of account 2019 and 2018) (4)	144.0		—		—
Reinsurance to close transaction (for years of account 2017 and prior) (5)	—		219.7		—
Total net reserve adjustments	1,094.4		219.7		—
Change in participation interest (6)	34.3		8.4		32.8
Foreign exchange adjustments	(17.4)		(17.0)		33.7
Net reserves - end of year	2,213.1		3,123.2		2,906.1
Add:
Reinsurance recoverables on unpaid losses and LAE, end of year	2,838.5		2,471.8		2,499.9
Gross reserves - end of year	$	5,051.6	$	5,595.0	$	5,406.0

(1)Refer to the sale of Argo Seguros and AGSE in Note 2, “Recent Acquisitions, Disposals & Other Transactions” for additional information.

(2)Refer to the sale of Argo Underwriting Agency Limited in Note 2, “Recent Acquisitions, Disposals & Other Transactions” for additional information. Additionally, the Company reduced net reserves in the amount of $129.6 million for reinsurance contracts with AUA subsidiaries, which were reclassified to held-for-sale.

(3)Loss portfolio transfer of the Company’s U.S. casualty insurance reserves for accident years 2011 to 2019. Refer to Note 2, “Recent Acquisitions, Disposals & Other Transactions” for additional information.

(4)Loss portfolio transfer on Syndicate 1200's reserves for the 2018 and 2019 years of account. Refer to Note 2, “Recent Acquisitions, Disposals & Other Transactions” for additional information.

(5)Amount represents reserves ceded under the reinsurance to close transaction with RiverStone for Lloyd’s years of account 2017 and prior, effective January 1, 2021.

(6)Amount represents the change in reserves due to changing our participation in Syndicates 1200 and 1910.

Reserves for losses and LAE represent the estimated indemnity cost and related adjustment expenses necessary to investigate and settle claims. Such estimates are based upon individual case estimates for reported claims, estimates from ceding companies for reinsurance assumed and actuarial estimates for losses that have been incurred but not yet reported to the insurer. Any change in probable ultimate liabilities is reflected in current operating results.

The Company did not incur net losses and loss adjustment expenses attributed to the COVID-19 pandemic for the year ended December 31, 2022. Underwriting results for the years ended December 31, 2021 included net losses and loss adjustment expenses attributed to the COVID-19 pandemic of $12.4 million, primarily resulting from contingency and property exposures in the Company’s International Operations. Property losses relate to sub-limited affirmative business interruption coverage, primarily in certain International markets, as well as expected costs associated with claims handling.

The impact from the net unfavorable (favorable) development of prior accident years’ losses and LAE reserves on each reporting segment is presented below: 

	For the Years Ended December 31,
(in millions)	2022		2021		2020
U.S. Operations	$	64.5	$	120.9	$	2.4
International Operations	(2.7)		(26.9)		(6.2)
Run-off Lines	2.9		44.3		11.5
Total (favorable) unfavorable prior-year development	$	64.7	$	138.3	$	7.7

The following describes the primary factors behind each segment’s net prior accident year reserve development for the years ended December 31, 2022, 2021 and 2020:

Year ended December 31, 2022:

•U.S. Operations: Net unfavorable development primarily related to liability lines, including the impact of large losses and claims alleging construction defect, and driven by businesses we have exited, partially offset by favorable development in specialty and professional lines. The net unfavorable prior year development relates to accident years 2019 and prior partially offset by favorable prior year development on accident years 2020 and 2021.

•International Operations: Net favorable development primarily related to favorable development in liability and specialty lines, partially offset by unfavorable development from professional and property lines. The professional lines development included large claim movements in Argo Insurance Bermuda.

•Run-off Lines: Net unfavorable development primarily related to asbestos and environmental lines partially offset by favorable loss reserve development in run-off liability losses excluding asbestos and environmental.

Year ended December 31, 2021:

•U.S. Operations: Net unfavorable development in liability and professional lines, partially offset by favorable development in specialty. The liability lines and professional lines prior-year development was largely due to movements in the fourth quarter of 2021. The liability lines movement was largely due to actual incurred loss movements greater than the expected movements in business units with significant exposure to claims alleging construction defect ($112.1 million of prior year development), driven by accident years 2017 and prior. The professional lines movement was driven by evaluations of individual management liability claims. The professional lines prior-year development of $33.0 million was driven by accident years 2018 and prior.

•International Operations: Net favorable development primarily related to favorable development in liability and property lines, partially offset by unfavorable development in Argo Insurance Bermuda. The unfavorable movement in Argo Insurance Bermuda was driven by liability and professional losses.

•Run-off Lines: Net unfavorable loss reserve development in run-off liability lines, including asbestos and environmental lines, and risk management workers compensation. The movement on liability exposures excluding asbestos and environmental was due to analysis of individual claims. The exposures driving the change were largely the result of claims alleging abuse. A large portion of the change was due to defense costs. The movement on asbestos and environmental lines was due to higher than expected loss activity and movements on large claims alleging environmental losses.

Year ended December 31, 2020:

•U.S. Operations: Net unfavorable development in liability and professional lines, partially offset by favorable development in specialty and property.

•International Operations: Net favorable development primarily related to favorable development in Reinsurance, partially offset by unfavorable development in Bermuda Insurance. The favorable development in Reinsurance was due to experience on catastrophe losses from recent years and decreases on claims from older accident years. The unfavorable movement in Bermuda Insurance was driven by professional and liability losses.

•Run-off Lines: Net unfavorable loss reserve development in asbestos and environmental lines and other run-off lines, partially offset by favorable loss reserve development on prior accident years in risk management workers compensation.

Our reserves represent the best estimate of our ultimate liabilities, based on currently known facts, current law, and reasonable assumptions where facts are not known. Due to the significant uncertainties and related management judgments, there can be no assurance that future favorable or unfavorable loss development, which may be material, will not occur.

The spread of COVID-19 and related economic shutdown has increased the uncertainty that is always present in our estimate of the ultimate cost of loss and settlement expense. Actuarial models base future emergence on historic experience, with adjustments for current trends, and the appropriateness of these assumptions involved more uncertainty as of December 31, 2022. We expect there will be impacts to the timing of loss emergence and ultimate loss ratios for certain coverages we underwrite. The industry is experiencing new issues, including the temporary suspension of civil court cases in most states, the extension of certain statutes of limitations and the impact on our insureds from a significant reduction in economic activity. Our booked reserves include consideration of these factors, but legislative, regulatory or judicial actions could result in loss reserve deficiencies and reduce earnings in future periods.

Short-Duration Contract Disclosures

Our basis for disaggregating short-duration contracts is by each of our two ongoing reporting segments, U.S. Operations and International Operations, with International Operations further disaggregated by operating divisions. We have chosen to disaggregate the data in this way so as to not obscure useful information by otherwise aggregating items with significantly different characteristics. See Note 19, “Segment Information,” for additional information regarding our two ongoing reporting segments.

Operating Divisions

Our U.S. Operations reporting segment is comprised of one primary operating division (see Note 19, “Segment Information” for additional information on U.S Operations). International Operations’ primary operating division is Argo Insurance Bermuda, further described below.

Argo Insurance Bermuda

Argo Insurance Bermuda offers casualty, property and professional lines, which serves the needs of global clients by providing the following coverages: property, general and products liability, directors and officers liability, errors and omissions liability and employment practices liability.

Lines of Business

We use an underwriting committee structure to monitor and evaluate the operating performance of our lines of business. The underwriting committees are organized to allow products or coverages with similar characteristics to be managed and evaluated in distinct groups. Using this approach, our insurance business is categorized into underwriting groups, which are Property, Liability, Professional, and Specialty. Noted below are descriptions of the types of characteristics considered to disaggregate our business into these groups, as well as other qualitative factors to consider when using the information contained in the following incurred and paid claims development tables.

Property

Property losses are generally reported within a short period of time from the date of loss, and in most instances, property claims are settled and paid within a relatively short timeframe. However, Property can be impacted by catastrophe losses which can be more complex than non-catastrophe Property claims due to factors such as difficulty accessing impacted areas and other physical, legal and regulatory impediments potentially extending the period of time it takes to settle and pay claims. The impacts of catastrophe losses can be more significant in our Reinsurance and Syndicate 1200 divisions.

Liability

Our Liability business generally covers exposures where most claims are reported without a significant time lag between the event that gives rise to a claim and the date the claim is reported to us, but certain claims like those alleging construction defect can involve a longer time period between the event and the date the claim is reported to us. Since facts and information are frequently not complete at the time claims are reported to us, and because protracted litigation is sometimes involved, it can be several years before the ultimate value of these claims is determined. In our Argo Bermuda Insurance division, much of the business covers higher layers, potentially increasing the time it takes to fully determine our exposure.

Professional

Much of our Professional business is written on a claims-made basis resulting in coverage only for claims that are reported to us during the year in which the policy is effective, thus reducing the number of claims that will become known to us after the end of the policy expiration date. However, facts and information are frequently not complete at the time claims are reported to us, and protracted litigation is sometimes involved. It can be several years before the ultimate value of these claims is determined. In our Argo Bermuda Insurance division, much of the business covers higher layers, potentially increasing the time it takes to fully determine our exposure.

Specialty

Specialty lines losses are generally reported within a short period of time from the date of loss, and in most instances, Specialty lines claims are settled and paid within a relatively short timeframe. However, Specialty lines can be impacted by larger losses where facts and information are frequently not complete at the time claims are reported to us. These large losses can be more complex than smaller Specialty claims due to factors such as difficulty determining actual damages and other physical, legal and regulatory impediments potentially extending the period of time it takes to settle and pay claims.

Descriptions of the primary types of coverages, as disclosed in the following tables, included in the significant lines of business for each operating division are noted below:

U.S Operations

•Liability: primary and excess specialty casualty, construction defect, general liability, commercial multi-peril, workers compensation, product liability, environmental liability, and auto liability

•Professional: management liability, transaction liability and errors and omissions liability

•Property: primary and excess property, inland marine and auto physical damage

•Specialty: surety, animal mortality and ocean marine

Argo Insurance Bermuda

•Liability: general and products liability

•Professional: directors and officers liability, errors and omissions liability and employment practices liability

Run-off Lines Segment

We have a Run-off Lines segment for certain products that we no longer underwrite, including asbestos and environmental claims. We have excluded the Run-off Lines segment from the following disaggregated short-duration contract disclosures due to its insignificance to our consolidated financial position and results of operations, both quantitatively and qualitatively. Gross reserves for losses and LAE in Run-off Lines account for less than 5% of our consolidated gross reserves for losses and LAE, and are primarily related to accident years prior to the mid-1990s. As such, claims development tables for the most recent ten accident years would not provide meaningful information to users of our financial statements, as the majority of the remaining reserves for losses and LAE would be for accident years not separately presented. See Note 8, “Run-off Lines,” for further information on this segment, including discussion of prior accidents years’ development.

Loss Portfolio Transfers

On August 8, 2022, the Company entered into a loss portfolio transfer agreement with a wholly owned subsidiary of Enstar Group Limited (“Enstar”) covering a majority of the Company’s U.S. casualty insurance reserves, including construction, for accident years 2011 to 2019. See Note 2, “Recent Acquisitions, Disposals & Other Transactions” for additional information on the U.S. loss portfolio transfer. The calendar year 2022 activity in the claims development table includes the impact of this agreement.

Reserves for IBNR Claims

Reserves for IBNR claims are based on the estimated ultimate cost of settling claims, including the effects of inflation and other social and economic factors, using past experience adjusted for current trends and any other factors that would modify past experience. We use a variety of actuarial techniques to analyze current claims costs, including frequency and severity data. These actuarial techniques consider variables such as past loss experience, current claims trends, and prevailing economic, social and legal environments. Each such method has its own set of assumptions and outputs, and each has strengths and weaknesses in different areas. Since no single estimation method is superior to another method in all situations, the methods and assumptions used to project loss reserves will vary by coverage and product. We use what we believe to be the most appropriate set of actuarial methods and assumptions for each product line grouping and coverage. While the loss projection methods may vary by product line and coverage, the general approach for calculating IBNR remains the same: ultimate losses are forecasted first, and that amount is reduced by the amount of cumulative paid claims and case reserves. Reserves established in prior years are adjusted as loss experience develops and new information becomes available. Adjustments to previously estimated reserves are reflected in the results of operations in the year in which they are made.

As described above, various actuarial methods are used to determine the reserves for losses and LAE recorded in our Consolidated Balance Sheets. Weightings of methods at a detailed level may change from evaluation to evaluation based on a number of observations, measures, and time elements. In comparing loss reserve methods and assumptions used at December 31, 2022 as compared with methods and assumptions used at December 31, 2021, management has not changed or adjusted methodologies or assumptions in any significant manner.

Incurred & Paid Claims Development Disclosures

The following tables provide information about incurred and cumulative paid losses and allocated loss adjustment expenses (“ALAE”), net of reinsurance. The following tables also include IBNR reserves plus expected development on reported claims and the cumulative number of reported claims as of December 31, 2022.

Reporting Segment: U.S. Operations Line of Business: Liability (in millions, except number of claims reported)
	Incurred Losses & ALAE, Net of Reinsurance
Accident Year	For the Years Ended December 31,
	2013 (1)		2014 (1)		2015 (1)		2016 (1)		2017 (1)		2018 (1)		2019 (1)		2020 (1)		2021 (1)		2022 (1)
2013	$	344.5	$	355.8	$	361.0	$	360.4	$	351.5	$	346.6	$	343.1	$	344.8	$	357.3	$	334.3
2014			328.6		337.1		330.0		326.3		323.9		321.9		327.4		341.3		310.7
2015					339.8		343.8		330.3		328.7		328.0		335.4		347.9		318.9
2016							342.6		350.5		342.4		353.0		355.3		379.0		349.1
2017									374.8		373.7		384.3		397.7		431.7		385.2
2018											426.1		430.4		414.5		420.4		366.5
2019													421.1		423.7		427.1		318.6
2020															404.2		386.7		371.1
2021																	416.4		419.1
2022																			439.5
																	Total		$	3,613.0
	Cumulative Paid Losses & ALAE, Net of Reinsurance
Accident Year	For the Years Ended December 31,
	2013 (1)		2014 (1)		2015 (1)		2016 (1)		2017 (1)		2018 (1)		2019 (1)		2020 (1)		2021 (1)		2022 (1)
2013	$	36.5	$	109.7	$	174.3	$	228.8	$	266.5	$	289.3	$	306.9	$	318.2	$	325.4	$	329.3
2014			32.4		91.0		154.6		206.9		240.6		266.3		283.2		291.4		304.4
2015					33.7		86.9		140.2		195.6		236.4		263.9		289.3		305.6
2016							28.5		84.5		144.1		217.1		255.6		293.8		327.1
2017									27.8		83.0		158.8		238.5		295.2		348.0
2018											34.3		98.9		175.8		245.5		315.9
2019													32.4		113.6		186.1		260.1
2020															25.6		85.9		149.0
2021																	27.5		83.1
2022																			27.2
																	Total		$	2,449.7
Other Property outstanding liabilities including unpaid loss and ALAE prior to 2013, net of reinsurance																			56.5
Total outstanding liabilities for unpaid losses and ALAE, net of reinsurance																			$	1,219.8

	As of December 31, 2022
Accident Year	Incurred Losses & ALAE, Net of Reinsurance		IBNR & Expected Development on Reported Claims		Cumulative Number of Reported Claims (2)
2013	$	334.3	$	0.4	22,317
2014	310.7		—		22,254
2015	318.9		6.5		20,874
2016	349.1		11.5		17,947
2017	385.2		22.7		20,419
2018	366.5		21.8		22,925
2019	318.6		21.1		22,161
2020	371.1		136.0		17,452
2021	419.1		253.5		13,367
2022	439.5		354.3		11,011

(1)Information presented for calendar years prior to 2022 is required supplementary information and is unaudited.

(2)During 2021, the Company revised the manner in which it measures reported claims. The cumulative number of reported claims is measured by individual claimant at a coverage level. Reported occurrences that do not result in a liability are included as reported claims. During 2021, we implemented additional processes to consolidate multiple data sources for U.S. Operations reserving. As part of that process, the level of detail used to determine the number of reported claims for some of the business units in US Operations changed. As a result, the cumulative number of reported claims for each accident year presented above as of December 31, 2021 is not comparable to the cumulative number of reported claims disclosed in previously issued financial statements.

Reporting Segment: U.S. Operations Line of Business: Professional (in millions, except number of claims reported)
	Incurred Losses & ALAE, Net of Reinsurance
Accident Year	For the Years Ended December 31,
	2013 (1)		2014 (1)		2015 (1)		2016 (1)		2017 (1)		2018 (1)		2019 (1)		2020 (1)		2021 (1)		2022 (1)
2013	$	20.9	$	21.5	$	21.1	$	19.0	$	19.8	$	19.5	$	18.3	$	18.1	$	18.0	$	17.9
2014			22.4		22.4		26.0		33.7		36.2		35.4		35.1		34.4		32.7
2015					29.9		29.5		33.2		34.0		37.1		37.9		38.3		31.3
2016							44.2		44.8		45.1		42.9		35.5		43.0		43.5
2017									60.1		61.8		78.3		87.9		99.5		87.0
2018											70.8		73.2		79.2		94.8		88.5
2019													94.4		96.8		105.0		94.5
2020															152.6		142.6		127.8
2021																	177.8		159.5
2022																			185.4
																	Total		868.1
	Cumulative Paid Losses & ALAE, Net of Reinsurance
Accident Year	For the Years Ended December 31,
	2013 (1)		2014 (1)		2015 (1)		2016 (1)		2017 (1)		2018 (1)		2019 (1)		2020 (1)		2021 (1)		2022 (1)
2013	$	1.9	$	6.3	$	10.9	$	14.2	$	17.6	$	17.5	$	17.9	$	17.9	$	17.9	$	17.9
2014			2.3		5.4		15.1		24.1		25.5		32.3		33.3		33.6		33.5
2015					1.8		8.3		15.6		20.8		26.2		31.3		31.7		33.8
2016							2.4		11.9		24.6		28.9		30.8		34.4		38.3
2017									3.5		24.9		38.0		59.7		77.9		85.5
2018											4.5		16.7		43.8		62.6		78.8
2019													4.9		32.9		50.0		81.7
2020															13.3		36.4		70.5
2021																	12.2		39.6
2022																			14.3
																	Total		$	493.9
Other Property outstanding liabilities including unpaid loss and ALAE prior to 2013, net of reinsurance																			(3.0)
Total outstanding liabilities for unpaid losses and ALAE, net of reinsurance																			$	371.2

	As of December 31, 2022
Accident Year	Incurred Losses & ALAE, Net of Reinsurance		IBNR & Expected Development on Reported Claims		Cumulative Number of Reported Claims (2)
2013	$	17.9	$	—	625
2014	32.7		(0.8)		1,044
2015	31.3		(2.5)		1,832
2016	43.5		2.4		3,263
2017	87.0		1.7		3,772
2018	88.5		8.8		4,328
2019	94.5		9.5		5,133
2020	127.8		29.6		5,476
2021	159.5		97.4		5,895
2022	185.4		163.2		4,864

(1)Information presented for calendar years prior to 2022 is required supplementary information and is unaudited.

(2)During 2021, the Company revised the manner in which it measures reported claims. The cumulative number of reported claims is measured by individual claimant at a coverage level. Reported occurrences that do not result in a liability are included as reported claims. During 2021, we implemented additional processes to consolidate multiple data sources for U.S. Operations reserving. As part of that process, the level of detail used to determine the number of reported claims for some of the business units in US Operations changed. As a result, the cumulative number of reported claims for each accident year presented above as of December 31, 2021 is not comparable to the cumulative number of reported claims disclosed in previously issued financial statements.

Reporting Segment: U.S. Operations Line of Business: Property (in millions, except number of claims reported)
	Incurred Losses & ALAE, Net of Reinsurance
Accident Year	For the Years Ended December 31,
	2013 (1)		2014 (1)		2015 (1)		2016 (1)		2017 (1)		2018 (1)		2019 (1)		2020 (1)		2021 (1)		2022 (1)
2013	$	74.5	$	79.9	$	78.7	$	78.2	$	77.8	$	78.2	$	78.4	$	78.2	$	77.2	$	76.9
2014			80.4		82.2		77.0		77.1		76.9		76.9		76.1		76.0		76.1
2015					74.0		73.4		69.9		68.9		69.1		69.2		69.2		68.4
2016							59.4		57.6		57.1		56.6		56.6		56.5		54.2
2017									75.2		79.6		86.9		94.9		94.5		97.4
2018											89.2		93.1		95.1		96.9		102.4
2019													91.4		88.8		98.4		97.9
2020															129.5		133.2		133.1
2021																	111.7		114.8
2022																			103.1
																	Total		$	924.3
	Cumulative Paid Losses & ALAE, Net of Reinsurance
Accident Year	For the Years Ended December 31,
	2013 (1)		2014 (1)		2015 (1)		2016 (1)		2017 (1)		2018 (1)		2019 (1)		2020 (1)		2021 (1)		2022 (1)
2013	$	52.5	$	73.2	$	75.5	$	77.4	$	77.1	$	75.9	$	78.1	$	78.2	$	77.2	$	76.9
2014			51.6		73.1		75.7		76.4		76.3		76.4		76.1		76.0		76.0
2015					44.6		67.6		68.6		67.9		68.3		68.5		69.0		68.6
2016							39.4		55.2		55.8		56.1		56.4		56.3		54.5
2017									54.4		95.3		113.9		100.8		88.4		95.1
2018											61.3		126.7		107.0		98.8		101.4
2019													55.8		82.4		90.9		94.0
2020															75.9		116.6		121.6
2021																	71.3		118.3
2022																			52.2
																	Total		858.6
Other Property outstanding liabilities including unpaid loss and ALAE prior to 2013, net of reinsurance																			(5.5)
Total outstanding liabilities for unpaid losses and ALAE, net of reinsurance																			$	60.2

	As of December 31, 2022
Accident Year	Incurred Losses & ALAE, Net of Reinsurance		IBNR & Expected Development on Reported Claims		Cumulative Number of Reported Claims (2)
2013	$	76.9	$	—	9,707
2014	76.1		—		8,034
2015	68.4		(0.1)		7,341
2016	54.2		(0.2)		7,687
2017	97.4		(1.3)		9,913
2018	102.4		(2.4)		10,868
2019	97.9		1.9		11,481
2020	133.1		(7.3)		11,356
2021	114.8		(14.5)		10,255
2022	103.1		22.8		7,960

(1)Information presented for calendar years prior to 2022 is required supplementary information and is unaudited.

(2)During 2021, the Company revised the manner in which it measures reported claims. The cumulative number of reported claims is measured by individual claimant at a coverage level. Reported occurrences that do not result in a liability are included as reported claims. During 2021, we implemented additional processes to consolidate multiple data sources for U.S. Operations reserving. As part of that process, the level of detail used to determine the number of reported claims for some of the business units in US Operations changed. As a result, the cumulative number of reported claims for each accident year presented above as of December 31, 2021 is not comparable to the cumulative number of reported claims disclosed in previously issued financial statements.

Reporting Segment: U.S. Operations Line of Business: Specialty (in millions, except number of claims reported)
	Incurred Losses & ALAE, Net of Reinsurance
Accident Year	For the Years Ended December 31,
	2013 (1)		2014 (1)		2015 (1)		2016 (1)		2017 (1)		2018 (1)		2019 (1)		2020 (1)		2021 (1)		2022 (1)
2013	$	10.0	$	8.6	$	4.6	$	2.5	$	1.7	$	0.9	$	0.9	$	0.9	$	0.9	$	0.9
2014			13.1		13.1		8.9		6.0		4.8		4.6		4.6		4.1		4.1
2015					14.8		14.3		9.5		5.5		1.2		0.5		0.3		0.2
2016							15.0		15.0		11.2		6.2		4.7		3.3		3.2
2017									16.2		16.2		7.6		0.9		0.7		0.7
2018											20.9		17.4		3.3		3.5		3.5
2019													22.7		8.5		5.6		5.9
2020															25.4		10.3		15.9
2021																	27.9		5.2
2022																			33.0
																	Total		$	72.6
	Cumulative Paid Losses & ALAE, Net of Reinsurance
Accident Year	For the Years Ended December 31,
	2013 (1)		2014 (1)		2015 (1)		2016 (1)		2017 (1)		2018 (1)		2019 (1)		2020 (1)		2021 (1)		2022 (1)
2013	$	0.4	$	0.9	$	0.9	$	0.9	$	0.9	$	0.9	$	0.9	$	0.9	$	0.9	$	0.9
2014			1.1		3.3		4.0		4.0		4.1		4.1		4.0		4.1		4.1
2015					0.2		0.1		0.2		0.3		0.3		0.3		0.3		0.2
2016							1.3		1.6		2.2		2.2		2.2		2.8		2.8
2017									0.3		0.1		—		0.1		0.2		0.2
2018											—		0.7		1.7		1.2		2.4
2019													0.7		0.7		3.2		5.4
2020															0.3		7.6		10.6
2021																	0.2		1.4
2022																			0.1
																	Total		28.1
Other Property outstanding liabilities including unpaid loss and ALAE prior to 2013, net of reinsurance																			0.8
Total outstanding liabilities for unpaid losses and ALAE, net of reinsurance																			$	45.3

	As of December 31, 2022
Accident Year	Incurred Losses & ALAE, Net of Reinsurance		IBNR & Expected Development on Reported Claims		Cumulative Number of Reported Claims (2)
2013	$	0.9	$	—	28
2014	4.1		—		20
2015	0.2		—		14
2016	3.2		0.4		46
2017	0.7		0.5		62
2018	3.5		0.1		82
2019	5.9		0.4		124
2020	15.9		0.7		273
2021	5.2		3.7		290
2022	33.0		25.7		236

(1)Information presented for calendar years prior to 2022 is required supplementary information and is unaudited.

(2)During 2021, the Company revised the manner in which it measures reported claims. The cumulative number of reported claims is measured by individual claimant at a coverage level. Reported occurrences that do not result in a liability are included as reported claims. During 2021, we implemented additional processes to consolidate multiple data sources for U.S. Operations reserving. As part of that process, the level of detail used to determine the number of reported claims for some of the business units in US Operations changed. As a result, the cumulative number of reported claims for each accident year presented above as of December 31, 2021 is not comparable to the cumulative number of reported claims disclosed in previously issued financial statements.

Reporting Segment: International Operations Operating Division: Argo Insurance Bermuda Line of Business: Liability (in millions, except number of claims reported)
	Incurred Losses & ALAE, Net of Reinsurance
Accident Year	For the Years Ended December 31,
	2013 (1)		2014 (1)		2015 (1)		2016 (1)		2017 (1)		2018 (1)		2019 (1)		2020 (1)		2021 (1)		2022 (1)
2013	$	8.5	$	8.5	$	8.5	$	8.5	$	4.9	$	2.2	$	5.3	$	5.3	$	6.0	$	5.8
2014			9.8		9.8		9.8		6.2		1.5		2.3		2.3		1.6		1.6
2015					11.3		14.3		24.8		35.4		45.4		45.1		51.3		50.3
2016							13.9		14.0		14.0		6.6		6.1		0.8		2.4
2017									17.1		17.3		26.9		30.3		37.3		44.3
2018											8.9		32.1		26.6		24.2		22.9
2019													13.3		13.6		13.8		13.3
2020															23.3		24.9		12.4
2021																	12.3		11.4
2022																			11.1
																	Total		$	175.5
	Cumulative Paid Losses & ALAE, Net of Reinsurance
Accident Year	For the Years Ended December 31,
	2013 (1)		2014 (1)		2015 (1)		2016 (1)		2017 (1)		2018 (1)		2019 (1)		2020 (1)		2021 (1)		2022 (1)
2013	$	—	$	—	$	—	$	—	$	2.3	$	2.3	$	2.3	$	2.4	$	2.4	$	3.7
2014			—		—		0.1		0.1		1.2		1.2		1.4		1.4		1.4
2015					—		—		16.1		20.3		26.6		34.8		38.9		50.2
2016							—		—		—		0.1		0.1		0.2		0.3
2017									—		3.3		3.4		18.0		19.7		22.0
2018											—		13.8		18.3		18.5		18.5
2019													—		0.1		0.7		0.6
2020															0.8		7.0		0.5
2021																	—		—
2022																			—
																	Total		$	97.2
Other Property outstanding liabilities including unpaid loss and ALAE prior to 2013, net of reinsurance																			0.5
Total outstanding liabilities for unpaid losses and ALAE, net of reinsurance																			$	78.8

	As of December 31, 2022
Accident Year	Incurred Losses & ALAE, Net of Reinsurance		IBNR & Expected Development on Reported Claims		Cumulative Number of Reported Claims (2)
2013	$	5.8	$	0.2	1,210
2014	1.6		(0.4)		1,360
2015	50.3		—		1,623
2016	2.4		2.0		1,987
2017	44.3		7.8		2,114
2018	22.9		3.5		1,140
2019	13.3		12.1		1,179
2020	12.4		11.9		1,336
2021	11.4		10.2		1,252
2022	11.1		11.1		875

(1)Information presented for calendar years prior to 2022 is required supplementary information and is unaudited.

(2)The cumulative number of reported claims is measured by individual claimant at a coverage level. Reported occurrences that do not result in a liability are included as reported claims.

Reporting Segment: International Operations Operating Division: Argo Insurance Bermuda Line of Business: Professional (in millions, except number of claims reported)
	Incurred Losses & ALAE, Net of Reinsurance
Accident Year	For the Years Ended December 31,
	2013 (1)		2014 (1)		2015 (1)		2016 (1)		2017 (1)		2018 (1)		2019 (1)		2020 (1)		2021 (1)		2022 (1)
2013	$	3.8	$	3.8	$	3.8	$	3.1	$	1.8	$	—	$	—	$	—	$	1.0	$	3.5
2014			4.0		4.0		4.0		4.0		3.9		10.2		12.5		8.1		10.1
2015					4.9		4.9		4.9		2.7		5.0		5.2		7.3		7.9
2016							6.7		6.7		4.8		3.1		7.3		3.1		1.9
2017									7.6		7.6		9.7		9.5		12.4		10.5
2018											8.3		8.3		8.0		6.5		21.3
2019													9.6		8.7		16.4		18.3
2020															10.4		10.4		10.4
2021																	13.0		13.0
2022																			9.5
																	Total		$	106.4
	Cumulative Paid Losses & ALAE, Net of Reinsurance
Accident Year	For the Years Ended December 31,
	2013 (1)		2014 (1)		2015 (1)		2016 (1)		2017 (1)		2018 (1)		2019 (1)		2020 (1)		2021 (1)		2022 (1)
2013	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2014			—		—		—		0.3		1.0		0.4		3.2		0.4		0.4
2015					—		—		—		—		—		—		2.9		2.9
2016							—		—		—		—		—		—		—
2017									0.1		0.1		4.9		9.8		9.8		9.8
2018											—		—		2.0		2.1		6.0
2019													2.0		0.6		0.6		0.7
2020															—		—		—
2021																	—		—
2022																			—
																	Total		19.8
Other Property outstanding liabilities including unpaid loss and ALAE prior to 2013, net of reinsurance																			0.3
Total outstanding liabilities for unpaid losses and ALAE, net of reinsurance																			$	86.9

	As of December 31, 2022
Accident Year	Incurred Losses & ALAE, Net of Reinsurance		IBNR & Expected Development on Reported Claims		Cumulative Number of Reported Claims (2)
2013	$	3.5	$	3.4	1,081
2014	10.1		2.3		1,142
2015	7.9		3.5		1,197
2016	1.9		1.8		1,293
2017	10.5		0.7		1,357
2018	21.3		9.9		1,138
2019	18.3		7.6		843
2020	10.4		10.3		908
2021	13.0		13.0		822
2022	9.5		9.5		597

(1)Information presented for calendar years prior to 2022 is required supplementary information and is unaudited.

(2)The cumulative number of reported claims is measured by individual claimant at a coverage level. Reported occurrences that do not result in a liability are included as reported claims.

The reconciliation of the net incurred and paid development tables to the liability for unpaid losses and LAE in our Consolidated Balance Sheets is as follows:

(in millions)	As of December 31, 2022
Liabilities for unpaid losses and ALAE:
US Operations:
Liability	$	1,219.8
Professional	371.2
Property	60.2
Specialty	45.3
International Operations:
Argo Insurance Bermuda- Liability	78.8
Argo Insurance Bermuda- Professional	86.9
Run-off Lines	168.0
Other lines	132.8
Total liabilities for unpaid losses and ALAE, net of reinsurance	2,163.0
Reinsurance recoverables on unpaid losses and LAE:
US Operations:
Liability	1,389.0
Professional	356.9
Property	205.2
Specialty	18.3
International Operations:
Argo Insurance Bermuda- Liability	215.4
Argo Insurance Bermuda- Professional	137.0
Run-off Lines	69.8
Other lines	446.9
Total reinsurance recoverables on unpaid losses and LAE	2,838.5
Unallocated loss adjustment expenses	69.4
Unamortized reserve discount	(19.3)
Gross liability for unpaid losses and LAE	$	5,051.6

Other lines in the table above are comprised of lines of business and operating divisions within our two ongoing reporting segments which are not individually significant for separate disaggregated disclosure.

Claims Duration

The following table provides supplementary unaudited information about the annual percentage payout of incurred losses and ALAE, net of reinsurance, as of December 31, 2022:

	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (1)
	Year 1	Year 2	Year 3	Year 4	Year 5	Year 6	Year 7	Year 8	Year 9	Year 10	Remainder
U.S. Operations:
US Liability	7.8%	17.0%	18.5%	19.4%	12.4%	8.6%	6.1%	3.0%	2.1%	1.5%	3.6%
US Professional	5.4%	17.0%	19.4%	17.5%	12.2%	9.8%	6.7%	4.4%	2.8%	1.8%	2.8%
US Property	56.6%	33.1%	6.7%	2.5%	0.8%	0.2%	0.1%	—%	—%	—%	—%
US Specialty	27.9%	32.4%	23.5%	10.0%	4.0%	1.5%	0.5%	0.2%	0.1%	—%	—%
International Operations:
Bermuda Insurance Professional	2.7%	7.6%	11.8%	13.7%	13.5%	11.9%	9.8%	7.7%	5.9%	4.4%	11.1%
Bermuda Insurance Liability	0.5%	14.7%	19.6%	15.2%	10.7%	7.7%	5.6%	4.3%	3.4%	2.7%	15.6%

(1) The average annual percentage payout is calculated from a paid losses and ALAE development pattern based on an actuarial analysis of the paid losses and ALAE movements by accident year for each disaggregation category. The paid losses and ALAE development pattern provides the expected percentage of ultimate losses and ALAE to be paid in each year. The pattern considers all accident years included in the claim’s development tables.

Information About Amounts Reported at Present Value

We discount certain workers compensation liabilities for unpaid losses and LAE within our U.S. Operations and Run-off Lines segments. The discounted U.S. Operations liabilities relate to all non-ALAE workers compensation liabilities within one of our insurance subsidiaries. In Run-off Lines, we discount certain pension-type liabilities for unpaid losses and LAE. The following tables provide information about these discounted liabilities for unpaid losses and LAE:

	Carrying Amount of
	Reserves for Losses & LAE						Aggregate Amount of Discount
	As of December 31,						As of December 31,
(in millions, except discount percentages)	2022		2021		2020		2022		2021		2020
US Operations:
Commercial Specialty - Liability	$	168.0	$	163.1	$	150.4	$	14.7	$	14.1	$	12.9
Run-off Lines	93.0		114.3		128.4		4.6		4.7		4.9
Total	$	261.0	$	277.4	$	278.8	$	19.3	$	18.8	$	17.8

	Interest Accretion (1)						Discount Rate
	For the Years Ended December 31,						As of December 31,
	2022		2021		2020		2022	2021	2020
US Operations:
Commercial Specialty - Liability	$	1.7	$	0.9	$	1.9	2.25%	2.25%	2.25%
Run-off Lines	0.1		0.2		—		3.50%	3.50%	3.50%
Total	$	1.8	$	1.1	$	1.9

(1) Interest accretion is recorded in the line item Losses and loss adjustment expenses in our Consolidated Statements of Income (Loss).