UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 1, 2013
ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG
(Exact Name of Registrant as Specified in Charter)
Switzerland | 001-32938 | 98-0681223 | ||
(State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) |
Lindenstrasse 8
6340 Baar
Zug, Switzerland
(Address of Principal Executive Offices and Zip Code)
Registrants telephone number, including area code: 41-41-768-1080
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 7.01. | Regulation FD Disclosure. |
On July 1, 2013, Allied World Assurance Company Holdings, AG (the Company) released its 2012 Global Loss Triangles report. A copy of this report is attached hereto as Exhibit 99.1 and is also available at the Investor Relations section of the Companys website at www.awac.com.
The information in Item 7.01 of this report is being furnished, not filed, pursuant to Regulation FD. Accordingly, the information in Item 7.01 of this report will not be incorporated by reference into any registration statement filed by the Company under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated by reference. The furnishing of the information in this report is not intended to, and does not, constitute a determination or admission by the Company that the information in this report is material or complete, or that investors should consider this information before making an investment decision with respect to any security of the Company.
Cautionary Statement Regarding Forward-Looking Statements
Any forward-looking statements made in the report in Exhibit 99.1 reflect our current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties, which may cause actual results to differ materially from those set forth in these statements. For example, our forward-looking statements could be affected by pricing and policy term trends; increased competition; the impact of acts of terrorism and acts of war; greater frequency or severity of unpredictable catastrophic events; negative rating agency actions; the adequacy of our loss reserves; the Company or its subsidiaries becoming subject to significant income taxes in the United States or elsewhere; changes in regulations or tax laws; changes in the availability, cost or quality of reinsurance or retrocessional coverage; adverse general economic conditions; and judicial, legislative, political and other governmental developments, as well as managements response to these factors, and other factors identified in our filings with the U.S. Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We are under no obligation (and expressly disclaim any such obligation) to update or revise any forward-looking statement that may be made from time to time, whether as a result of new information, future developments or otherwise.
Item 9.01. | Financial Statements and Exhibits. |
(d) | Exhibits |
Exhibit |
Description | |
99.1 | 2012 Global Loss Triangles report. |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG | ||||||
Dated: July 1, 2013 | By: | /s/ Wesley D. Dupont | ||||
Name: | Wesley D. Dupont | |||||
Title: | Executive Vice President & General Counsel |
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EXHIBIT INDEX
Exhibit |
Description | |
99.1 | 2012 Global Loss Triangles report. |
Exhibit 99.1
ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG
2012 GLOBAL LOSS TRIANGLES
Global Loss Development Triangle Cautionary Language
This report is for informational purposes only and is current only as of December 31, 2012. Allied World Assurance Company Holdings, AG (Allied World, the Company, we, us or our) is under no obligation (and expressly disclaims any such obligation) to update or revise this report, whether as a result of new information, future events or otherwise. Nothing contained in this report is or should be relied upon as a promise or representation as to the future. Although the loss development patterns disclosed in this report are an important factor in the process used to estimate loss reserve requirements, they are not the only factors considered in establishing reserves. The process for establishing reserves is subject to considerable variability and requires the use of informed estimates and judgments. Important details, such as specific loss development expectations for particular contracts, years or events, cannot be developed solely by analyzing the information provided in this report. In addition to analyzing loss development data, management incorporates additional information into the reserving process, such as pricing for insurance and reinsurance products as well as current market conditions. Readers must keep these and other qualifications more fully described in this report in mind when reviewing this information. Information presented in this report may differ materially from that reported in the Companys financial statements prepared in accordance with accounting principles generally accepted in the United States due to differences in foreign exchange rates, exclusions, the impact of premium adjustments and other adjustments. This report is a supplement to the Companys financial disclosures and should be read in conjunction with the Companys most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other documents on file with the U.S. Securities and Exchange Commission (the SEC). This report shall not be incorporated by reference into any of the Companys filings under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.
Cautionary Statement Regarding Forward-Looking Statements
Any forward-looking statements made in this report reflect the Companys current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties, which may cause actual results to differ materially from those set forth in these statements. For example, the Companys forward-looking statements could be affected by pricing and policy term trends; increased competition; the impact of acts of terrorism and acts of war; greater frequency or severity of unpredictable catastrophic events; negative rating agency actions; the adequacy of our loss reserves; the Company or its subsidiaries becoming subject to significant income taxes in the United States or elsewhere; changes in regulations or tax laws; changes in the availability, cost or quality of reinsurance or retrocessional coverage; adverse general economic conditions; and judicial, legislative, political and other governmental developments, as well as managements response to these factors, and other factors identified in the Companys filings with the SEC. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The Company is under no obligation (and expressly disclaims any such obligation) to update or revise any forward-looking statement that may be made from time to time, whether as a result of new information, future developments or otherwise.
ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG
2012 GLOBAL LOSS TRIANGLES
Table of Contents
Page | ||||||
I. | EXECUTIVE SUMMARY |
1 | ||||
Overview |
1 | |||||
Limitations of the Reserving Processes |
3 | |||||
Treaty Year Projections |
5 | |||||
II. | RECONCILIATION OF GLOBAL LOSS TRIANGLES TO DECEMBER 31, 2012 FINANCIAL STATEMENTS |
6 | ||||
III. | GLOBAL LOSS TRIANGLES |
7 | ||||
Basis of Presentation |
7 | |||||
Description of Data Presented |
8 | |||||
Large Losses |
8 | |||||
GLT Class Details |
9 | |||||
Property Insurance (Gross of Ceded Reinsurance) |
12 | |||||
General Casualty Insurance (Gross of Ceded Reinsurance) |
13 | |||||
Professional Liability Lines Insurance (Gross of Ceded Reinsurance) |
14 | |||||
Healthcare Insurance (Gross of Ceded Reinsurance) |
15 | |||||
Property Insurance (Net of Ceded Reinsurance) |
16 | |||||
General Casualty Insurance (Net of Ceded Reinsurance) |
17 | |||||
Professional Liability Lines Insurance (Net of Ceded Reinsurance) |
18 | |||||
Healthcare Insurance (Net of Ceded Reinsurance) |
19 | |||||
Property Catastrophe Reinsurance (Gross of Ceded Reinsurance) |
20 | |||||
Property Other Reinsurance (Gross of Ceded Reinsurance) |
21 | |||||
General Casualty Reinsurance (Gross of Ceded Reinsurance) |
22 | |||||
Professional Liability Lines Reinsurance (Gross of Ceded Reinsurance) |
23 | |||||
Other Reinsurance (Gross of Ceded Reinsurance) |
24 | |||||
Property Catastrophe Reinsurance (Net of Ceded Reinsurance) |
25 | |||||
Property Other Reinsurance (Net of Ceded Reinsurance) |
26 | |||||
General Casualty Reinsurance (Net of Ceded Reinsurance) |
27 | |||||
Professional Liability Lines Reinsurance (Net of Ceded Reinsurance) |
28 | |||||
Other Reinsurance (Net of Ceded Reinsurance) |
29 | |||||
Insurance (Gross of Ceded Reinsurance) Premium/Loss Summary |
30 | |||||
Insurance (Net of Ceded Reinsurance) Premium/Loss Summary |
31 | |||||
Reinsurance (Gross of Ceded Reinsurance) Premium/Loss Summary |
32 | |||||
Reinsurance (Net of Ceded Reinsurance) Premium/Loss Summary |
33 | |||||
IV. | SELECTED EXCERPTS FROM ALLIED WORLDS 2012 10-K DISCLOSURE |
34 | ||||
V. | GLOSSARY |
39 |
I. | EXECUTIVE SUMMARY |
Overview
A critical component of financial reporting for insurance and reinsurance companies is to accurately estimate potential losses and associated loss expenses on risks that have been insured or reinsured. This report is Allied Worlds release of its Global Loss Triangles (GLTs) as of December 31, 2012. For your convenience, we have included a glossary beginning on page 39 of selected insurance and reinsurance terms.
We establish a reserve for losses and loss expenses to cover our estimated liability for the payment of all losses and loss expenses incurred with respect to earned premiums on the policies and treaties that we write. This reserve is a balance sheet liability representing estimates of losses and loss expenses we are required to pay for insured or reinsured claims that have occurred as of or before the balance sheet date.
The process of establishing loss reserves can be complex and is subject to considerable variability as it requires the use of judgment regarding numerous items, including future litigation trends, future inflation trends, new laws and regulations, attachment points and timing of payments. Actuarial estimates of these reserves are subject to potential errors of estimation, which could be significant, as they are based upon the outcomes of future events. The estimates are even more difficult for a company such as Allied World, as many of our casualty lines of business have relatively high attachment points (often exceeding $100 million) and relatively high net limits (with $25 million being a typical maximum). Those characteristics make some of our casualty lines subject to claims that are very low in frequency (the number of actual claims), but very high in severity (the average claim size). The combination of low frequency and high severity exacerbates the difficulty in establishing loss reserves for Allied World. We caution that an attempt to evaluate our loss reserves using exclusively the data presented in this report could be misleading.
The reserve for losses and loss expenses is comprised of two main elements: outstanding loss reserves, also known as case reserves, and reserves for losses incurred but not reported (IBNR). Outstanding loss reserves relate to known claims and represent managements best estimate of the likely loss settlement cost. Thus, there is a significant amount of estimation involved in determining the likely loss payment. IBNR reserves require judgment because they relate primarily to unreported events that, based on industry information, managements experience and actuarial evaluation, can reasonably be expected to have occurred and are reasonably likely to result in a loss to the Company. IBNR reserves also relate to estimated development of reported events that based on industry information, managements experience and actuarial evaluation, can reasonably be expected to reach our attachment point and are reasonably likely to result in a loss to the Company.
IBNR is the estimated liability for (1) claims that have occurred but have not yet been reported as well as (2) changes in the values of claims that have been reported to us but are not yet settled. Each claim is settled individually based upon its merits and it is not unusual for a claim to take years after being reported to settle, especially if legal action is involved. As a result, reserves for losses and loss expenses include significant estimates for IBNR reserves.
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The reserve for IBNR is estimated by management for each line of business based on various factors, including underwriters expectations about loss experience, actuarial analysis, comparisons with the results of industry benchmarks and loss experience to date. The reserve for IBNR is calculated as the ultimate amount of losses and loss expenses less cumulative paid losses and loss expenses and case reserves. Our actuaries employ generally accepted actuarial methodologies to determine estimated ultimate loss reserves.
When estimating IBNR reserves, we segregate the Companys insurance and reinsurance loss and exposure data into over 110 classes in total. Within each class, the business is further segregated by treaty year, accident year or report year. Professional liability and healthcare lines of business are reviewed on a report year basis due to the claims-made nature of the underlying contracts. Our general casualty insurance business is a mixture of claims-made and loss-occurring contracts. Since the Companys formation in November 2001, 59% of our gross earned premiums and 61% of our net earned premiums have been associated with occurrence policies for our general casualty insurance business.
Generally, initial actuarial estimates of IBNR reserves not related to a single event (such as a catastrophe) are based upon the expected loss ratio method applied to each class of business. Actual paid losses and case reserves are subtracted from the expected ultimate losses to derive the IBNR reserves. The initial expected loss ratio used in the expected loss ratio method involve managerial judgments and are based upon historical information for the class of business, which includes historic loss ratios, market conditions, changes in pricing, policy terms and conditions, peer analysis, underwriting changes, changes in claims emergence and other factors that may influence expected ultimate losses. Over time, the actuarial estimates for our non-property lines of business generally become a blend of the Bornhuetter-Ferguson reported loss method (the B-F method) and the expected loss ratio method. The B-F method incorporates actual reported loss data and expected unreported losses, which is a function of the initial expected loss ratio and the expected loss emergence pattern, to determine an estimate of ultimate losses. The B-F method is often appropriate for lines of business where there is limited actual loss data and/or a relatively less stable pattern of loss emergence. For additional details on the B-F method, see IV. Selected Excerpts from Allied Worlds 2012 10-K Disclosure Expected Loss Ratio Method and B-F Method.
These actuarial methods may be inappropriate for lines of business with very low frequency and high severity and in certain specific situations, such as catastrophe losses. In such situations, specific knowledge of the open claims, the underlying exposures, ceded reinsurance, litigation trends, the types of coverages involved and the changes in the frequency or severity of the claim may be used to establish reserves.
Multiple estimates of ultimate losses using a variety of actuarial methods are calculated for many of our classes of business for each year of loss experience. Our actuaries review each class of business and each year of loss experience and determine the most appropriate point estimate based upon the characteristics of the particular class of business and other relevant
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factors as described above. Once our actuaries make their determination of the most appropriate point estimate for each class of business and for each year of loss experience, both gross and net of reinsurance, this information is aggregated and presented to management for consideration in establishing the recorded reserves for losses and loss expenses.
Limitations of the Reserving Processes
Reserving actuaries, especially in personal lines and mid-market commercial lines companies, often employ standard actuarial loss development methods to project ultimate losses from triangles of paid and reported losses. These methods rely on an assumption that losses develop consistently from one year to the next, and for the expected loss ratio and B-F methods, on the assumption that an initial expected loss ratio and expected emergence pattern can be accurately selected. However, Allied World writes complex lines of business, including excess casualty insurance and reinsurance, which often do not have the consistent patterns of reported losses that personal lines and mid-market commercial lines companies do.
Projections of ultimate losses require a significant amount of estimation and judgment based on a variety of factors. We strongly caution against any assumption that standard loss projection techniques applied mechanically can alone be used to estimate ultimate losses for our data as the outcome of such a simplistic approach would lead to misleading results and inaccurate conclusions. Reasons to avoid simplistic projections include:
| Allied World has only been in existence since November 2001 and many of our GLTs lack sufficient actuarial credibility to project ultimate losses and do not have the history to accurately estimate the development of losses beyond ten years. |
| Allied World acquired Darwin Professional Underwriters, Inc. and its subsidiaries (Darwin) in October 2008. The loss triangles from Darwin have been merged into Allied Worlds GLTs. However, it is likely that the historical loss emergence patterns from the Darwin business are substantially different from the historical loss patterns of the business written by Allied World due to different attachment point profiles, different policy forms (nearly all Darwin policies are claims-made) and differing claims department philosophies. |
| As many of our casualty lines can have relatively low frequency and relatively high severity losses, the absence or emergence of only a few losses can distort our paid and reported GLTs. |
| Our U.S. direct insurance business has been generally growing faster than our international direct insurance business. The difference in the business mix between these two insurance businesses and the lower attachment point profile of the U.S. business can cause historical loss development not to be appropriate for future loss development. |
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| Some of our largest reinsurance treaties have special characteristics, such as loss corridors, annual aggregate deductibles or swing-rated premiums that cannot be considered in a simplistic aggregate projection. |
| We have had changes in our underwriting philosophy over time, exiting or paring back some classes of business and in other classes changing coverage terms and conditions. |
| Losses develop differently for different classes of business. The aim of the GLTs contained herein is to present our loss development experience in an informative format, while protecting proprietary Company information. Accordingly, we do not show our 110+ reserving classes, but rather have aggregated them into nine classes, which represent different geographies, pricing environments, legislative climates and policy forms and which will not be as homogeneous as our actual reserving classes would be if reported individually. |
| Paid loss development patterns are considerably longer than the corresponding reported loss development patterns and can produce for many of our classes of business extremely volatile indications, particularly within the first several years of development. |
| For several classes of business, pricing conditions have changed in recent years. The extrapolation of losses and loss expense ratios from prior periods to current periods would not be appropriate. |
In addition to these factors, the global credit crisis and the effects of inflation (as discussed in more detail below) could adversely impact our ultimate losses and cause our projections and judgments regarding our expected loss reserves to differ materially from the ultimate losses we may incur.
Global Credit Crisis Worldwide financial and housing markets have experienced extreme volatility and disruption in recent years. As a result of the global credit crisis, the following reserving classes have been impacted:
| direct insurance professional liability lines (primarily the 2007 and 2008 report years), and |
| reinsurance professional liability lines (primarily the 2006 through 2008 treaty years). |
There continues to be increased uncertainty around the ultimate losses for the years referenced above. This is mainly attributable to the higher volume of reported claims and the higher proportion of open claims for these years compared to earlier years at the same stage of development. In addition, these reported claims have caused higher reported losses and ALAE ratios for these years compared to earlier years at similar stages of development. As a result, the ultimate loss development patterns on these years may differ from prior years. The uncertainty is
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increased by the fact that we have relatively high average attachment points for many of these potential credit crisis-related claims for our direct insurance business and by the fact that we often provide D&O side A cover. On side A cover, we are required to provide coverage to directors and officer for claims alleging negligence or malfeasance if such claims are not indemnified by the insured.
Our reserves for these lines of business are based on a detailed analysis of all open claims that considers attachment points, exposed limits, coverage provided and litigation trends as well as quarterly, in-depth discussions with members of our claims department and underwriting staff.
Inflation Losses and loss expense reserves can be impacted by social and judicial inflation. Higher than expected inflation can negatively impact the costs of claims as it may cause an increase in frequency (the number of actual claims) and severity (the average claim size). Though our reserving techniques factor in inflation through the use of expected loss ratios derived from our pricing models, which consider the effects of inflation, and through the use of industry loss development patterns that go back as far as 1984, losses and loss expense reserves can be impacted by unexpected changes in inflation rates. We do not explicitly account for excessive inflation in our reserves.
Treaty Year Projections
Data organized by treaty year assigns claims and premiums to the year in which the assumed reinsurance contract incepted. As such, a treaty year may cover claims spanning several accident years. This has two primary implications for estimating ultimate loss reserves. First, the payment and reporting patterns are generally slower to develop than for the data presented by accident year or report year. This means that it is even more critical that premium-based reserving methods, such as the expected loss ratio method or the B-F method, are used for the more recent years rather than loss development methods that can be distorted by small movements in actual paid or reported loss activity due to the application of large loss development factors. Second, treaty years for which premium is not fully earned require an adjustment to the indicated reserves to reflect only the portion of the ultimate treaty year losses that are associated with losses that have occurred prior to the evaluation date. This is typically done by developing an ultimate loss ratio estimate for the full treaty year and applying this loss ratio to the earned premiums from the treaty year.
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II. | RECONCILIATION OF GLOBAL LOSS TRIANGLES TO DECEMBER 31, 2012 FINANCIAL STATEMENTS |
The tables below provide a reconciliation of our presented GLTs to our audited financial statements as of and for the year ended December 31, 2011 and 2012, respectively.
(Expressed in U.S. dollars in thousands)
Paid Losses and Paid LAE in 2011 Calendar Year |
||||
Consolidated GLTs net paid losses and ALAE1 |
$ | 640,874 | ||
Paid losses and paid ALAE from excluded catastrophes |
21,289 | |||
Paid ULAE |
21,906 | |||
Foreign exchange and other |
742 | |||
|
|
|||
Paid losses and paid LAE in 2011 calendar year per 10-K |
$ | 684,811 | ||
|
|
|||
Paid Losses and Paid LAE in 2012 Calendar Year |
||||
Consolidated GLTs net paid losses and ALAE1 |
$ | 798,111 | ||
Paid losses and paid ALAE from excluded catastrophes |
37,071 | |||
Paid ULAE |
26,494 | |||
Foreign exchange and other |
(709 | ) | ||
|
|
|||
Paid losses and paid LAE in 2012 calendar year per 10-K |
$ | 860,967 | ||
|
|
|||
Incurred Losses and Incurred LAE in 2011 Calendar Year |
||||
Consolidated GLTs net reported losses and ALAE1 |
$ | 835,518 | ||
Reported losses and reported ALAE from excluded catastrophes |
48,073 | |||
Reported ULAE |
21,906 | |||
Change in IBNR |
61,024 | |||
Foreign exchange and other |
(7,365 | ) | ||
|
|
|||
Incurred losses and incurred LAE in 2011 calendar year per 10-K |
$ | 959,156 | ||
|
|
|||
Incurred Losses and Incurred LAE in 2012 Calendar Year |
||||
Consolidated GLTs net reported losses and ALAE1 |
$ | 894,216 | ||
Reported losses and reported ALAE from excluded catastrophes |
71,437 | |||
Reported ULAE |
26,494 | |||
Change in IBNR |
147,319 | |||
Foreign exchange and other |
(202 | ) | ||
|
|
|||
Incurred losses and incurred LAE in 2012 calendar year per 10-K |
$ | 1,139,264 | ||
|
|
1. | Excludes losses from the following catastrophes: 2004 Hurricanes/Tropical Storms Charlie, Frances, Jeanne and Ivan; 2005 Hurricanes/Tropical Storms Katrina, Rita and Wilma; 2008 Hurricanes/Tropical Storms Gustav and Ike; 2010 Chilean Earthquake; 2011 Japanese Earthquake/Tsunami; 2012 Superstorm Sandy. |
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III. | GLOBAL LOSS TRIANGLES |
Basis of Presentation
For the basis of this presentation, we have split our data into nine classes of GLTs, four for our direct insurance business and five for our reinsurance business. They are listed below:
Direct Insurance Business | Reinsurance Business | |
Property |
Property Catastrophe | |
General Casualty |
Property Other | |
Professional Liability Lines |
General Casualty | |
Healthcare |
Professional Liability Lines | |
Other Reinsurance |
| Our direct insurance general casualty business contains a mix of claims-made, occurrence-reported and occurrence policy forms. |
General Casualty | ||||||||||||||||
Distribution of Gross Premiums Written | ||||||||||||||||
Underwriting Year |
Claims-Made | Occurrence- Reported |
Occurrence | Total | ||||||||||||
2002 | 20.3 | % | 26.1 | % | 53.6 | % | 100.0 | % | ||||||||
2003 | 16.6 | % | 30.0 | % | 53.4 | % | 100.0 | % | ||||||||
2004 | 20.3 | % | 30.7 | % | 49.0 | % | 100.0 | % | ||||||||
2005 | 14.4 | % | 35.2 | % | 50.4 | % | 100.0 | % | ||||||||
2006 | 16.1 | % | 32.3 | % | 51.6 | % | 100.0 | % | ||||||||
2007 | 16.5 | % | 35.5 | % | 48.0 | % | 100.0 | % | ||||||||
2008 | 16.3 | % | 29.8 | % | 54.0 | % | 100.0 | % | ||||||||
2009 | 10.9 | % | 22.2 | % | 67.0 | % | 100.0 | % | ||||||||
2010 | 11.3 | % | 19.3 | % | 69.4 | % | 100.0 | % | ||||||||
2011 | 11.1 | % | 15.4 | % | 73.6 | % | 100.0 | % | ||||||||
2012 | 9.3 | % | 13.4 | % | 77.3 | % | 100.0 | % |
| Our reinsurance business classified as other reinsurance includes accident and health, workers compensation catastrophe coverage, aviation, crop and marine. |
| Our reinsurance business is presented separately from our direct insurance business as we show the reinsurance classes on a treaty year basis. Many reinsurance treaties do not provide sufficient detail to split losses and loss adjustment expenses accurately by accident year or report year. |
| Our nine classes were selected to create categories that were relatively homogeneous yet were not so small as to have insufficient actuarial credibility. |
| Our GLTs are presented in thousands of U.S. dollars, reflecting conversions from local currencies based upon the date on which the transactions were entered into the Companys systems. |
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Description of Data Presented
For each class of business, earned premiums are presented both gross and net of external reinsurance, with intercompany reinsurance transactions not being reflected in the GLTs. For classes of business within our reinsurance lines, these premiums are presented on a treaty year basis. For all other classes of business, the net earned premiums are presented on a calendar year basis. GLTs that show cumulative paid losses and ALAE, gross and net of reinsurance, are presented for each class of business. In addition, we present GLTs of cumulative reported losses and ALAE (paid plus case reserves), gross and net of reinsurance, for each class of business. For the reinsurance classes of business, the GLTs are presented on a treaty year basis. For direct insurance business, property classes of business are presented on an accident year basis. Our general casualty classes of business are a blend of policies where losses can be triggered by either report date or accident date, so the paid and reported losses are a blend of report year and accident year data. The remaining casualty classes of business, including professional liability and healthcare, are presented on a report year basis. These conventions match the standard industry reserving practices for reinsurance and direct insurance, respectively.
Case reserves for Allied Worlds reinsurance classes are generally established based upon reports received from ceding companies as we generally follow their fortunes. Additional case reserves may be established by Allied World to reflect our estimated ultimate cost of a loss. Any such additional case reserves have been included in the presented reinsurance GLTs.
The premiums in our reinsurance lines are often based upon estimates by the ceding companies. At the end of the treaty year, these estimates will be replaced by actual premiums. In addition, some of our reinsurance treaties may have premiums that are swing-rated subject to reinstatement premiums. The presented premium data is subject to future adjustments, either upwards or downwards, based upon these factors.
Large Losses
Loss development associated with the following six groups of catastrophic losses have been excluded from the GLTs for all lines except for property catastrophe reinsurance: (1) 2004 hurricanes, (2) 2005 hurricanes, (3) 2008 hurricanes, (4) 2010 Chilean Earthquake, (5) 2011 Japanese Earthquake/Tsunami and (6) 2012 Superstorm Sandy. These events have been excluded from the GLTs due to their magnitude in order to avoid distortions in the development factors and indicated reserve levels. Reserves for these events are not based on aggregate development statistics, but rather on ground-up, exposure-based assessments reflecting information provided by insureds and cedents on an insurance policy-by-policy and reinsurance contract-by-contract basis. Separate information is provided on these catastrophic events including gross and net paid losses, reported losses and IBNR as of December 31, 2012.
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GLT Class Details
Insurance Lines of Business
Property Our property insurance GLTs are shown on both a gross and net of reinsurance basis (see pages 12 and 16). The vast majority of the ceded reinsurance we have purchased for our direct property class of business is written as quota share reinsurance, with a smaller portion written as facultative reinsurance. We have not removed losses associated with recoveries from any catastrophe covers as we have excluded major catastrophes already from the data. The major catastrophes removed from our property insurance GLTs, as well as from our property other reinsurance and our other reinsurance GLTs discussed below, include:
| 2004 Hurricanes/Tropical Storms Charlie, Frances, Jeanne and Ivan; |
| 2005 Hurricanes/Tropical Storms Katrina, Rita and Wilma; |
| 2008 Hurricanes/Tropical Storms Gustav and Ike; |
| 2010 Chilean Earthquake; |
| 2011 Japanese Earthquake/Tsunami; and |
| 2012 Superstorm Sandy. |
It should be noted that we removed all property losses associated with these events, even after such storms may have weakened and moved inland. For our property insurance GLTs, the total amounts excluded from these storms are as follows:
Gross | Net of Reinsurance | |||||||||||||||
Paid | Reported | Paid | Reported | |||||||||||||
(Dollars in Millions) | (Dollars in Millions) | |||||||||||||||
2004 Events |
$ | 170.1 | $ | 170.8 | $ | 149.7 | $ | 150.1 | ||||||||
2005 Events |
$ | 458.4 | $ | 459.1 | $ | 190.7 | $ | 191.1 | ||||||||
2008 Events |
$ | 97.8 | $ | 99.7 | $ | 61.9 | $ | 63.1 | ||||||||
2010 Events |
$ | 64.9 | $ | 65.5 | $ | 50.6 | $ | 51.0 | ||||||||
2011 Events |
$ | 34.6 | $ | 54.5 | $ | 24.4 | $ | 38.2 | ||||||||
2012 Events |
$ | 8.9 | $ | 81.2 | $ | 7.2 | $ | 64.9 |
Our property book of business has shifted over time. Over the last several years, we have de-emphasized energy classes of business, which included such industry classes as mining, chemical plants, pulp and paper manufacturing and refiners. In addition, our Bermuda property book of business (which is included in the property insurance GLTs) has evolved from largely being a primary insurance account based book of business to where we now write many accounts on an excess basis.
General Casualty Our general casualty insurance GLTs are shown on both a gross and net of reinsurance basis (see pages 13 and 17). Our Bermuda and European casualty books of business are comprised largely of Fortune 1000-type accounts with generally high attachment points with medians between $80 million and $100 million. Historically, about 57% to 59% of the earned premiums have come from occurrence policies. This percentage grew to 77% in 2012 as our business mix has shifted to more occurrence business as we expanded our U.S.
-9-
underwriting platform. The vast majority of the ceded reinsurance we have purchased for the casualty class of business has been either quota share reinsurance or surplus treaty reinsurance. The general casualty book has changed over time, with pharmaceutical and energy classes being de-emphasized in Bermuda and with the business underwritten in the United States (which generally has a lower attachment point profile) shrinking in the 2005-2007 calendar years and growing in the 2008-2012 calendar years.
Professional Liability Lines Our professional liability lines insurance GLTs are shown on both a gross and net of reinsurance basis (see pages 14 and 18). Professional liability lines include directors and officers liability, errors & omissions liability, D&O side A cover, employment practices liability insurance, crime and fiduciary liability business. Similar to our casualty lines of business, our Bermuda and European professional liability lines are comprised largely of Fortune 1000 and FTSE 1000-type accounts with generally high attachment points with medians between $80 million and $100 million. It is not uncommon for the Company to ventilate an account, which means the Company underwrites two excess layers with differing attachment points. Our U.S. professional liability book has a very different profile, with a portion of the business underwritten on a primary basis for smaller, non-Fortune 1000 accounts. Common classes include insurance agencies, psychologists/counselors and smaller law firms. Our professional liability lines book of business, excluding crime, is written on claims-made and occurrence-reported basis and virtually none of this business is written on an occurrence basis (regardless of where it is written). Crime insurance is written on a losses discovered basis.
Healthcare Our healthcare insurance GLTs are shown on both a gross and net of reinsurance basis (see pages 15 and 19). Our healthcare book of business is written on a claims-made and occurrence-reported basis and has virtually no business written on occurrence policy forms. The Bermuda healthcare group writes gross lines of up to $25 million, with average attachment points of around $45 million. This business is largely comprised of large hospitals, but does include managed care organizations and healthcare systems. The U.S. healthcare business has a much lower attachment point profile than the international book of business, with much of the U.S. business being written on a primary basis. It includes smaller hospitals and hospital systems, managed care organizations and medical facilities such as home care providers, specialized surgery and rehabilitation centers, and outpatient clinics. Our Bermuda business also writes some accounts on a primary basis, although typically over a large deductible.
Reinsurance Lines of Business
Property Catastrophe Our property catastrophe reinsurance GLTs are shown on both a gross and net of reinsurance basis (see pages 20 and 25). This business is excess-of-loss property catastrophe reinsurance. Typically, it has a relatively short tail.
Property Other Our property other reinsurance GLTs are shown on both a gross and net of reinsurance basis (see pages 21 and 26). This line contains our entire property reinsurance book of business, excluding property catastrophe coverages, and is written as either excess-of-loss reinsurance or quota share reinsurance.
-10-
General Casualty Our general casualty reinsurance GLTs are shown on both a gross and net of reinsurance basis (see pages 22 and 27). This business is essentially comprised of any business that does not fit into the other casualty classes. It is largely umbrella casualty business that contains some workers compensation business. This business can be written as either excess-of-loss reinsurance or quota share reinsurance.
Professional Liability Lines Our professional liability lines reinsurance GLTs are shown on both a gross and net of reinsurance basis (see pages 23 and 28). This business is largely written on a claims-made basis. Lines of business include employment practices liability insurance, medical malpractice, directors and officers, errors and omissions and miscellaneous professional classes and transactional risk liability. Some of our larger treaties can have complex structures, including swing-rated premiums, loss corridors and annual aggregate deductibles. This business is written as either excess-of-loss reinsurance or quota share reinsurance.
Other Reinsurance Our other reinsurance GLTs are shown on both a gross and net of reinsurance basis (see pages 24 and 29). This business is a mixture of miscellaneous lines including accident and health (which is predominantly catastrophe driven), workers compensation catastrophe, aviation, crop and marine. The marine treaties were impacted by various hurricanes (specifically Ivan, Katrina, Rita, Ike and Gustav) which went through the Gulf of Mexico.
For our other reinsurance and property other GLTs, the total amounts excluded from the 2004, 2005, 2008, 2010, 2011 and 2012 events discussed above are as follows:
Gross | Net of Reinsurance | |||||||||||||||
Paid | Reported | Paid | Reported | |||||||||||||
(Dollars in Millions) | (Dollars in Millions) | |||||||||||||||
2004 Events |
$ | 38.3 | $ | 40.3 | $ | 38.3 | $ | 40.3 | ||||||||
2005 Events |
$ | 93.0 | $ | 95.9 | $ | 86.0 | $ | 88.9 | ||||||||
2008 Events |
$ | 1.5 | $ | 5.8 | $ | 1.5 | $ | 5.8 | ||||||||
2010 Events |
$ | 0.1 | $ | 0.8 | $ | 0.1 | $ | 0.8 | ||||||||
2011 Events |
$ | 0.1 | $ | 5.2 | $ | 0.1 | $ | 5.2 | ||||||||
2012 Events |
$ | 0.7 | $ | 10.0 | $ | 0.7 | $ | 10.0 |
-11-
December 2012 Global Loss Triangles - Direct Insurance
Excluding large losses
U.S. dollars in thousands
Property Insurance (Gross of Ceded Reinsurance)
Cumulative Paid Loss & ALAE |
||||||||||||||||||||||||||||||||||||||||||||
Accident | Months of Development | |||||||||||||||||||||||||||||||||||||||||||
Year | 12 | 24 | 36 | 48 | 60 | 72 | 84 | 96 | 108 | 120 | 132 | |||||||||||||||||||||||||||||||||
2002 | 2,584 | 29,354 | 46,287 | 51,590 | 56,582 | 56,687 | 56,776 | 56,675 | 56,700 | 56,701 | 56,701 | |||||||||||||||||||||||||||||||||
2003 | 50,572 | 136,299 | 198,801 | 217,328 | 218,048 | 217,531 | 221,698 | 221,688 | 221,846 | 221,814 | ||||||||||||||||||||||||||||||||||
2004 | 38,251 | 153,141 | 203,006 | 217,517 | 229,205 | 232,011 | 233,997 | 234,829 | 237,674 | |||||||||||||||||||||||||||||||||||
2005 | 91,198 | 228,634 | 308,207 | 354,253 | 366,892 | 365,434 | 367,337 | 365,380 | ||||||||||||||||||||||||||||||||||||
2006 | 30,040 | 103,621 | 172,546 | 201,132 | 208,659 | 210,277 | 212,916 | |||||||||||||||||||||||||||||||||||||
2007 | 43,151 | 129,076 | 169,655 | 186,261 | 191,756 | 199,710 | ||||||||||||||||||||||||||||||||||||||
2008 | 75,528 | 155,973 | 198,875 | 210,168 | 218,452 | |||||||||||||||||||||||||||||||||||||||
2009 | 24,044 | 64,420 | 74,513 | 77,316 | ||||||||||||||||||||||||||||||||||||||||
2010 | 44,677 | 107,035 | 128,648 | |||||||||||||||||||||||||||||||||||||||||
2011 | 52,142 | 115,930 | ||||||||||||||||||||||||||||||||||||||||||
2012 | 21,849 | |||||||||||||||||||||||||||||||||||||||||||
Reported Loss & ALAE |
||||||||||||||||||||||||||||||||||||||||||||
Accident | Months of Development | |||||||||||||||||||||||||||||||||||||||||||
Year | 12 | 24 | 36 | 48 | 60 | 72 | 84 | 96 | 108 | 120 | 132 | |||||||||||||||||||||||||||||||||
2002 | 18,005 | 55,432 | 58,559 | 59,169 | 57,437 | 56,848 | 57,987 | 56,707 | 56,700 | 56,701 | 56,701 | |||||||||||||||||||||||||||||||||
2003 | 146,467 | 208,054 | 228,434 | 232,111 | 227,106 | 224,146 | 222,856 | 222,651 | 222,550 | 222,481 | ||||||||||||||||||||||||||||||||||
2004 | 132,453 | 223,557 | 246,425 | 247,612 | 244,839 | 239,798 | 238,060 | 235,425 | 238,232 | |||||||||||||||||||||||||||||||||||
2005 | 224,245 | 353,712 | 382,922 | 384,183 | 382,139 | 370,420 | 368,929 | 366,287 | ||||||||||||||||||||||||||||||||||||
2006 | 157,140 | 225,124 | 235,681 | 222,453 | 219,524 | 215,327 | 217,148 | |||||||||||||||||||||||||||||||||||||
2007 | 189,533 | 227,570 | 227,509 | 220,583 | 221,004 | 220,826 | ||||||||||||||||||||||||||||||||||||||
2008 | 263,049 | 265,851 | 240,547 | 229,376 | 226,406 | |||||||||||||||||||||||||||||||||||||||
2009 | 89,871 | 89,436 | 88,222 | 85,366 | ||||||||||||||||||||||||||||||||||||||||
2010 | 114,296 | 156,419 | 155,811 | |||||||||||||||||||||||||||||||||||||||||
2011 | 156,249 | 188,553 | ||||||||||||||||||||||||||||||||||||||||||
2012 | 72,864 |
Reported Loss & ALAE Ratio to Earned Premium (excluding IBNR) |
||||||||||||||||||||||||||||||||||||||||||||
Accident | Months of Development | |||||||||||||||||||||||||||||||||||||||||||
Year | 12 | 24 | 36 | 48 | 60 | 72 | 84 | 96 | 108 | 120 | 132 | |||||||||||||||||||||||||||||||||
2002 | 9 | % | 28 | % | 30 | % | 30 | % | 29 | % | 29 | % | 30 | % | 29 | % | 29 | % | 29 | % | 29 | % | ||||||||||||||||||||||
2003 | 30 | % | 43 | % | 47 | % | 48 | % | 47 | % | 46 | % | 46 | % | 46 | % | 46 | % | 46 | % | ||||||||||||||||||||||||
2004 | 23 | % | 40 | % | 44 | % | 44 | % | 43 | % | 42 | % | 42 | % | 42 | % | 42 | % | ||||||||||||||||||||||||||
2005 | 47 | % | 74 | % | 80 | % | 81 | % | 80 | % | 78 | % | 77 | % | 77 | % | ||||||||||||||||||||||||||||
2006 | 36 | % | 51 | % | 53 | % | 50 | % | 50 | % | 49 | % | 49 | % | ||||||||||||||||||||||||||||||
2007 | 45 | % | 54 | % | 54 | % | 52 | % | 52 | % | 52 | % | ||||||||||||||||||||||||||||||||
2008 | 74 | % | 74 | % | 67 | % | 64 | % | 63 | % | ||||||||||||||||||||||||||||||||||
2009 | 33 | % | 33 | % | 32 | % | 31 | % | ||||||||||||||||||||||||||||||||||||
2010 | 49 | % | 67 | % | 67 | % | ||||||||||||||||||||||||||||||||||||||
2011 | 69 | % | 84 | % | ||||||||||||||||||||||||||||||||||||||||
2012 | 28 | % |
Accident | Earned | Loss & ALAE | ||||||||||||||||||||||||||||||
Year | Premium | Paid | Case O/S | Reported | IBNR | Ultimate | Ult. Ratio | Unpaid | ||||||||||||||||||||||||
2002 | 196,237 | 56,701 | | 56,701 | 0 | 56,701 | 28.9 | % | 0 | |||||||||||||||||||||||
2003 | 483,719 | 221,814 | 667 | 222,481 | 182 | 222,664 | 46.0 | % | 850 | |||||||||||||||||||||||
2004 | 565,327 | 237,674 | 558 | 238,232 | 84 | 238,317 | 42.2 | % | 643 | |||||||||||||||||||||||
2005 | 476,481 | 365,380 | 907 | 366,287 | 227 | 366,514 | 76.9 | % | 1,134 | |||||||||||||||||||||||
2006 | 441,138 | 212,916 | 4,232 | 217,148 | 1,354 | 218,503 | 49.5 | % | 5,586 | |||||||||||||||||||||||
2007 | 423,468 | 199,710 | 21,115 | 220,826 | 3,334 | 224,160 | 52.9 | % | 24,450 | |||||||||||||||||||||||
2008 | 357,588 | 218,452 | 7,954 | 226,406 | 1,856 | 228,262 | 63.8 | % | 9,810 | |||||||||||||||||||||||
2009 | 272,873 | 77,316 | 8,050 | 85,366 | 1,874 | 87,240 | 32.0 | % | 9,924 | |||||||||||||||||||||||
2010 | 233,716 | 128,648 | 27,163 | 155,811 | 6,465 | 162,275 | 69.4 | % | 33,627 | |||||||||||||||||||||||
2011 | 225,599 | 115,930 | 72,623 | 188,553 | 27,285 | 215,838 | 95.7 | % | 99,908 | |||||||||||||||||||||||
2012 | 260,345 | 21,849 | 51,015 | 72,864 | 45,005 | 117,869 | 45.3 | % | 96,020 | |||||||||||||||||||||||
Total | 3,936,490 | 1,856,389 | 194,285 | 2,050,674 | 87,668 | 2,138,342 | 54.3 | % | 281,953 |
-12-
December 2012 Global Loss Triangles - Direct Insurance
U.S. dollars in thousands
General Casualty Insurance (Gross of Ceded Reinsurance)
Cumulative Paid Loss & ALAE |
||||||||||||||||||||||||||||||||||||||||||||
Accident | Months of Development | |||||||||||||||||||||||||||||||||||||||||||
Year | 12 | 24 | 36 | 48 | 60 | 72 | 84 | 96 | 108 | 120 | 132 | |||||||||||||||||||||||||||||||||
2002 | 0 | 0 | 185 | 464 | 2,848 | 4,691 | 5,591 | 6,574 | 7,802 | 8,662 | 9,887 | |||||||||||||||||||||||||||||||||
2003 | 0 | 461 | 16,019 | 18,500 | 29,401 | 55,140 | 57,458 | 57,463 | 57,487 | 57,534 | ||||||||||||||||||||||||||||||||||
2004 | 0 | 21 | 90 | 634 | 5,507 | 8,516 | 19,470 | 24,754 | 31,861 | |||||||||||||||||||||||||||||||||||
2005 | 15 | 26,548 | 31,396 | 63,544 | 65,785 | 118,117 | 118,386 | 120,531 | ||||||||||||||||||||||||||||||||||||
2006 | | 274 | 2,591 | 34,249 | 84,696 | 108,738 | 108,776 | |||||||||||||||||||||||||||||||||||||
2007 | 107 | 7,235 | 9,707 | 13,553 | 26,963 | 29,224 | ||||||||||||||||||||||||||||||||||||||
2008 | 1,319 | 8,351 | 26,339 | 47,500 | 53,168 | |||||||||||||||||||||||||||||||||||||||
2009 | 309 | 8,309 | 36,402 | 60,422 | ||||||||||||||||||||||||||||||||||||||||
2010 | 1,045 | 61,109 | 132,702 | |||||||||||||||||||||||||||||||||||||||||
2011 | 8,380 | 28,876 | ||||||||||||||||||||||||||||||||||||||||||
2012 | 8,699 | |||||||||||||||||||||||||||||||||||||||||||
Reported Loss & ALAE |
||||||||||||||||||||||||||||||||||||||||||||
Accident | Months of Development | |||||||||||||||||||||||||||||||||||||||||||
Year | 12 | 24 | 36 | 48 | 60 | 72 | 84 | 96 | 108 | 120 | 132 | |||||||||||||||||||||||||||||||||
2002 | 1,429 | 618 | 989 | 552 | 6,299 | 15,616 | 16,506 | 17,369 | 23,361 | 22,058 | 32,290 | |||||||||||||||||||||||||||||||||
2003 | 23 | 13,124 | 25,852 | 33,579 | 58,980 | 59,141 | 57,667 | 57,575 | 57,537 | 57,534 | ||||||||||||||||||||||||||||||||||
2004 | 1,007 | 540 | 816 | 915 | 7,822 | 24,831 | 25,154 | 34,193 | 35,432 | |||||||||||||||||||||||||||||||||||
2005 | 30,852 | 109,619 | 113,339 | 119,923 | 124,573 | 124,781 | 123,362 | 149,613 | ||||||||||||||||||||||||||||||||||||
2006 | 165 | 30,097 | 39,318 | 90,005 | 92,725 | 108,758 | 108,816 | |||||||||||||||||||||||||||||||||||||
2007 | 4,131 | 15,419 | 15,970 | 32,500 | 37,670 | 38,733 | ||||||||||||||||||||||||||||||||||||||
2008 | 8,193 | 26,768 | 52,114 | 52,723 | 56,855 | |||||||||||||||||||||||||||||||||||||||
2009 | 1,876 | 35,225 | 49,792 | 70,495 | ||||||||||||||||||||||||||||||||||||||||
2010 | 70,055 | 131,974 | 159,289 | |||||||||||||||||||||||||||||||||||||||||
2011 | 34,513 | 109,349 | ||||||||||||||||||||||||||||||||||||||||||
2012 | 57,620 | |||||||||||||||||||||||||||||||||||||||||||
Reported Loss & ALAE Ratio to Earned Premium (excluding IBNR) |
||||||||||||||||||||||||||||||||||||||||||||
Accident | Months of Development | |||||||||||||||||||||||||||||||||||||||||||
Year | 12 | 24 | 36 | 48 | 60 | 72 | 84 | 96 | 108 | 120 | 132 | |||||||||||||||||||||||||||||||||
2002 | 2 | % | 1 | % | 1 | % | 1 | % | 7 | % | 18 | % | 19 | % | 20 | % | 27 | % | 25 | % | 37 | % | ||||||||||||||||||||||
2003 | 0 | % | 5 | % | 10 | % | 13 | % | 23 | % | 23 | % | 22 | % | 22 | % | 22 | % | 22 | % | ||||||||||||||||||||||||
2004 | 0 | % | 0 | % | 0 | % | 0 | % | 2 | % | 7 | % | 8 | % | 10 | % | 11 | % | ||||||||||||||||||||||||||
2005 | 10 | % | 37 | % | 38 | % | 40 | % | 42 | % | 42 | % | 41 | % | 50 | % | ||||||||||||||||||||||||||||
2006 | 0 | % | 11 | % | 14 | % | 33 | % | 34 | % | 39 | % | 40 | % | ||||||||||||||||||||||||||||||
2007 | 2 | % | 6 | % | 6 | % | 12 | % | 14 | % | 15 | % | ||||||||||||||||||||||||||||||||
2008 | 3 | % | 11 | % | 21 | % | 22 | % | 23 | % | ||||||||||||||||||||||||||||||||||
2009 | 1 | % | 13 | % | 19 | % | 27 | % | ||||||||||||||||||||||||||||||||||||
2010 | 24 | % | 45 | % | 55 | % | ||||||||||||||||||||||||||||||||||||||
2011 | 10 | % | 33 | % | ||||||||||||||||||||||||||||||||||||||||
2012 | 14 | % |
Accident | Earned | Loss & ALAE | ||||||||||||||||||||||||||||||
Year | Premium | Paid | Case O/S | Reported | IBNR | Ultimate | Ult. Ratio | Unpaid | ||||||||||||||||||||||||
2002 | 88,051 | 9,887 | 22,403 | 32,290 | 6,851 | 39,141 | 44.5 | % | 29,254 | |||||||||||||||||||||||
2003 | 257,017 | 57,534 | | 57,534 | 31,383 | 88,917 | 34.6 | % | 31,383 | |||||||||||||||||||||||
2004 | 332,389 | 31,861 | 3,571 | 35,432 | 50,132 | 85,565 | 25.7 | % | 53,704 | |||||||||||||||||||||||
2005 | 297,511 | 120,531 | 29,082 | 149,613 | 47,792 | 197,405 | 66.4 | % | 76,874 | |||||||||||||||||||||||
2006 | 275,405 | 108,776 | 40 | 108,816 | 60,858 | 169,674 | 61.6 | % | 60,898 | |||||||||||||||||||||||
2007 | 264,680 | 29,224 | 9,509 | 38,733 | 84,914 | 123,647 | 46.7 | % | 94,423 | |||||||||||||||||||||||
2008 | 243,673 | 53,168 | 3,687 | 56,855 | 122,290 | 179,145 | 73.5 | % | 125,978 | |||||||||||||||||||||||
2009 | 265,068 | 60,422 | 10,073 | 70,495 | 130,349 | 200,845 | 75.8 | % | 140,423 | |||||||||||||||||||||||
2010 | 290,498 | 132,702 | 26,587 | 159,289 | 151,482 | 310,772 | 107.0 | % | 178,069 | |||||||||||||||||||||||
2011 | 333,193 | 28,876 | 80,473 | 109,349 | 190,310 | 299,658 | 89.9 | % | 270,783 | |||||||||||||||||||||||
2012 | 410,540 | 8,699 | 48,921 | 57,620 | 251,859 | 309,479 | 75.4 | % | 300,780 | |||||||||||||||||||||||
Total | 3,058,025 | 641,679 | 234,348 | 876,027 | 1,128,220 | 2,004,247 | 65.5 | % | 1,362,568 |
-13-
December 2012 Global Loss Triangles - Direct Insurance
U.S. dollars in thousands
Professional Liability Lines Insurance (Gross of Ceded Reinsurance)
Cumulative Paid Loss & ALAE |
||||||||||||||||||||||||||||||||||||||||||||
Accident | Months of Development | |||||||||||||||||||||||||||||||||||||||||||
Year | 12 | 24 | 36 | 48 | 60 | 72 | 84 | 96 | 108 | 120 | 132 | |||||||||||||||||||||||||||||||||
2002 | | 10 | 61 | 5,225 | 13,909 | 45,884 | 59,860 | 59,930 | 59,944 | 59,984 | 62,538 | |||||||||||||||||||||||||||||||||
2003 | 20 | 80 | 603 | 802 | 6,002 | 16,936 | 17,238 | 26,397 | 26,479 | 27,620 | ||||||||||||||||||||||||||||||||||
2004 | 15 | 683 | 7,406 | 29,477 | 30,403 | 39,004 | 48,452 | 48,571 | 48,702 | |||||||||||||||||||||||||||||||||||
2005 | 95 | 3,328 | 7,370 | 23,528 | 24,320 | 44,267 | 44,547 | 44,851 | ||||||||||||||||||||||||||||||||||||
2006 | 296 | 6,850 | 44,815 | 59,330 | 88,030 | 97,134 | 111,154 | |||||||||||||||||||||||||||||||||||||
2007 | 1,401 | 12,296 | 41,310 | 66,992 | 77,189 | 91,900 | ||||||||||||||||||||||||||||||||||||||
2008 | 2,750 | 22,943 | 46,656 | 103,602 | 162,596 | |||||||||||||||||||||||||||||||||||||||
2009 | 6,051 | 31,866 | 52,805 | 68,037 | ||||||||||||||||||||||||||||||||||||||||
2010 | 9,628 | 43,547 | 70,837 | |||||||||||||||||||||||||||||||||||||||||
2011 | 15,377 | 70,623 | ||||||||||||||||||||||||||||||||||||||||||
2012 | 17,676 | |||||||||||||||||||||||||||||||||||||||||||
Reported Loss & ALAE |
||||||||||||||||||||||||||||||||||||||||||||
Accident | Months of Development | |||||||||||||||||||||||||||||||||||||||||||
Year | 12 | 24 | 36 | 48 | 60 | 72 | 84 | 96 | 108 | 120 | 132 | |||||||||||||||||||||||||||||||||
2002 | | 2,010 | 7,062 | 23,775 | 28,000 | 47,706 | 60,648 | 59,930 | 59,944 | 59,984 | 62,538 | |||||||||||||||||||||||||||||||||
2003 | 60 | 243 | 858 | 6,255 | 33,468 | 41,460 | 44,712 | 42,038 | 43,597 | 43,237 | ||||||||||||||||||||||||||||||||||
2004 | 434 | 1,692 | 8,106 | 32,701 | 55,437 | 55,592 | 61,361 | 60,795 | 60,926 | |||||||||||||||||||||||||||||||||||
2005 | 3,931 | 15,625 | 48,363 | 51,426 | 50,281 | 58,062 | 58,190 | 59,136 | ||||||||||||||||||||||||||||||||||||
2006 | 41,225 | 52,944 | 92,820 | 120,819 | 133,887 | 185,213 | 184,305 | |||||||||||||||||||||||||||||||||||||
2007 | 11,223 | 47,137 | 111,624 | 143,673 | 135,584 | 124,918 | ||||||||||||||||||||||||||||||||||||||
2008 | 17,483 | 86,164 | 126,011 | 175,230 | 214,571 | |||||||||||||||||||||||||||||||||||||||
2009 | 20,752 | 62,075 | 79,290 | 92,917 | ||||||||||||||||||||||||||||||||||||||||
2010 | 30,731 | 70,628 | 107,204 | |||||||||||||||||||||||||||||||||||||||||
2011 | 47,123 | 120,843 | ||||||||||||||||||||||||||||||||||||||||||
2012 | 47,124 | |||||||||||||||||||||||||||||||||||||||||||
Reported Loss & ALAE Ratio to Earned Premium (excluding IBNR) |
||||||||||||||||||||||||||||||||||||||||||||
Accident | Months of Development | |||||||||||||||||||||||||||||||||||||||||||
Year | 12 | 24 | 36 | 48 | 60 | 72 | 84 | 96 | 108 | 120 | 132 | |||||||||||||||||||||||||||||||||
2002 | 0 | % | 3 | % | 12 | % | 40 | % | 47 | % | 80 | % | 102 | % | 101 | % | 101 | % | 101 | % | 105 | % | ||||||||||||||||||||||
2003 | 0 | % | 0 | % | 0 | % | 3 | % | 14 | % | 17 | % | 19 | % | 18 | % | 18 | % | 18 | % | ||||||||||||||||||||||||
2004 | 0 | % | 1 | % | 3 | % | 10 | % | 17 | % | 17 | % | 19 | % | 19 | % | 19 | % | ||||||||||||||||||||||||||
2005 | 1 | % | 4 | % | 14 | % | 15 | % | 14 | % | 16 | % | 17 | % | 17 | % | ||||||||||||||||||||||||||||
2006 | 10 | % | 13 | % | 23 | % | 31 | % | 34 | % | 47 | % | 47 | % | ||||||||||||||||||||||||||||||
2007 | 3 | % | 11 | % | 26 | % | 33 | % | 31 | % | 29 | % | ||||||||||||||||||||||||||||||||
2008 | 4 | % | 19 | % | 28 | % | 38 | % | 47 | % | ||||||||||||||||||||||||||||||||||
2009 | 4 | % | 12 | % | 16 | % | 18 | % | ||||||||||||||||||||||||||||||||||||
2010 | 6 | % | 15 | % | 23 | % | ||||||||||||||||||||||||||||||||||||||
2011 | 10 | % | 25 | % | ||||||||||||||||||||||||||||||||||||||||
2012 | 9 | % |
Accident | Earned | Loss & ALAE | ||||||||||||||||||||||||||||||
Year | Premium | Paid | Case O/S | Reported | IBNR | Ultimate | Ult. Ratio | Unpaid | ||||||||||||||||||||||||
2002 | 59,558 | 62,538 | | 62,538 | 2,830 | 65,368 | 109.8 | % | 2,830 | |||||||||||||||||||||||
2003 | 237,656 | 27,620 | 15,617 | 43,237 | 29,946 | 73,183 | 30.8 | % | 45,563 | |||||||||||||||||||||||
2004 | 321,801 | 48,702 | 12,224 | 60,926 | 22,655 | 83,581 | 26.0 | % | 34,879 | |||||||||||||||||||||||
2005 | 352,174 | 44,851 | 14,285 | 59,136 | 30,963 | 90,099 | 25.6 | % | 45,248 | |||||||||||||||||||||||
2006 | 395,104 | 111,154 | 73,151 | 184,305 | 51,885 | 236,190 | 59.8 | % | 125,036 | |||||||||||||||||||||||
2007 | 431,009 | 91,900 | 33,019 | 124,918 | 98,364 | 223,283 | 51.8 | % | 131,383 | |||||||||||||||||||||||
2008 | 457,068 | 162,596 | 51,975 | 214,571 | 117,500 | 332,071 | 72.7 | % | 169,475 | |||||||||||||||||||||||
2009 | 506,027 | 68,037 | 24,880 | 92,917 | 235,452 | 328,369 | 64.9 | % | 260,332 | |||||||||||||||||||||||
2010 | 475,224 | 70,837 | 36,367 | 107,204 | 217,280 | 324,484 | 68.3 | % | 253,647 | |||||||||||||||||||||||
2011 | 478,865 | 70,623 | 50,219 | 120,843 | 232,461 | 353,304 | 73.8 | % | 282,681 | |||||||||||||||||||||||
2012 | 537,257 | 17,676 | 29,448 | 47,124 | 317,495 | 364,619 | 67.9 | % | 346,943 | |||||||||||||||||||||||
Total | 4,251,742 | 776,535 | 341,186 | 1,117,721 | 1,356,831 | 2,474,552 | 58.2 | % | 1,698,017 |
-14-
December 2012 Global Loss Triangles - Direct Insurance
U.S. dollars in thousands
Healthcare Insurance (Gross of Ceded Reinsurance)
Cumulative Paid Loss & ALAE |
||||||||||||||||||||||||||||||||||||||||||||
Accident | Months of Development | |||||||||||||||||||||||||||||||||||||||||||
Year | 12 | 24 | 36 | 48 | 60 | 72 | 84 | 96 | 108 | 120 | 132 | |||||||||||||||||||||||||||||||||
2002 | | 835 | 2,158 | 3,209 | 5,533 | 8,008 | 8,020 | 8,023 | 8,025 | 8,025 | 8,027 | |||||||||||||||||||||||||||||||||
2003 | 1 | 4,202 | 11,148 | 13,777 | 14,724 | 18,198 | 18,756 | 20,074 | 20,104 | 23,203 | ||||||||||||||||||||||||||||||||||
2004 | 2 | 852 | 5,892 | 9,738 | 12,694 | 13,229 | 13,379 | 13,786 | 15,325 | |||||||||||||||||||||||||||||||||||
2005 | 277 | 2,861 | 4,941 | 10,255 | 11,122 | 11,692 | 13,475 | 13,647 | ||||||||||||||||||||||||||||||||||||
2006 | 381 | 4,009 | 5,864 | 12,839 | 16,034 | 19,443 | 22,350 | |||||||||||||||||||||||||||||||||||||
2007 | 944 | 7,190 | 17,307 | 20,125 | 23,303 | 32,100 | ||||||||||||||||||||||||||||||||||||||
2008 | 793 | 9,776 | 18,469 | 28,147 | 34,461 | |||||||||||||||||||||||||||||||||||||||
2009 | 6,586 | 16,658 | 27,066 | 38,919 | ||||||||||||||||||||||||||||||||||||||||
2010 | 2,139 | 12,037 | 32,365 | |||||||||||||||||||||||||||||||||||||||||
2011 | 1,931 | 15,556 | ||||||||||||||||||||||||||||||||||||||||||
2012 | 1,919 | |||||||||||||||||||||||||||||||||||||||||||
Reported Loss & ALAE |
||||||||||||||||||||||||||||||||||||||||||||
Accident | Months of Development | |||||||||||||||||||||||||||||||||||||||||||
Year | 12 | 24 | 36 | 48 | 60 | 72 | 84 | 96 | 108 | 120 | 132 | |||||||||||||||||||||||||||||||||
2002 | 130 | 1,350 | 5,450 | 8,985 | 8,910 | 8,444 | 8,121 | 8,086 | 8,046 | 8,042 | 8,027 | |||||||||||||||||||||||||||||||||
2003 | 345 | 11,153 | 20,246 | 20,723 | 20,529 | 23,625 | 23,160 | 23,420 | 23,793 | 25,905 | ||||||||||||||||||||||||||||||||||
2004 | 1,849 | 6,406 | 12,190 | 14,720 | 14,999 | 16,045 | 15,928 | 15,944 | 17,967 | |||||||||||||||||||||||||||||||||||
2005 | 5,566 | 11,649 | 15,497 | 14,435 | 13,384 | 13,710 | 14,639 | 15,443 | ||||||||||||||||||||||||||||||||||||
2006 | 5,666 | 11,753 | 13,222 | 17,022 | 19,082 | 24,650 | 23,322 | |||||||||||||||||||||||||||||||||||||
2007 | 3,773 | 15,281 | 24,537 | 37,172 | 39,822 | 45,816 | ||||||||||||||||||||||||||||||||||||||
2008 | 3,801 | 19,115 | 33,315 | 40,238 | 45,251 | |||||||||||||||||||||||||||||||||||||||
2009 | 10,999 | 29,590 | 48,454 | 73,176 | ||||||||||||||||||||||||||||||||||||||||
2010 | 11,731 | 38,663 | 77,261 | |||||||||||||||||||||||||||||||||||||||||
2011 | 10,204 | 50,594 | ||||||||||||||||||||||||||||||||||||||||||
2012 | 15,083 | |||||||||||||||||||||||||||||||||||||||||||
Reported Loss & ALAE Ratio to Earned Premium (excluding IBNR) |
||||||||||||||||||||||||||||||||||||||||||||
Accident | Months of Development | |||||||||||||||||||||||||||||||||||||||||||
Year | 12 | 24 | 36 | 48 | 60 | 72 | 84 | 96 | 108 | 120 | 132 | |||||||||||||||||||||||||||||||||
2002 | 0 | % | 3 | % | 14 | % | 23 | % | 22 | % | 21 | % | 20 | % | 20 | % | 20 | % | 20 | % | 20 | % | ||||||||||||||||||||||
2003 | 0 | % | 15 | % | 27 | % | 27 | % | 27 | % | 31 | % | 30 | % | 31 | % | 31 | % | 34 | % | ||||||||||||||||||||||||
2004 | 2 | % | 5 | % | 10 | % | 12 | % | 12 | % | 13 | % | 13 | % | 13 | % | 15 | % | ||||||||||||||||||||||||||
2005 | 4 | % | 9 | % | 11 | % | 11 | % | 10 | % | 10 | % | 11 | % | 11 | % | ||||||||||||||||||||||||||||
2006 | 4 | % | 8 | % | 9 | % | 11 | % | 13 | % | 16 | % | 16 | % | ||||||||||||||||||||||||||||||
2007 | 3 | % | 10 | % | 17 | % | 25 | % | 27 | % | 31 | % | ||||||||||||||||||||||||||||||||
2008 | 2 | % | 11 | % | 20 | % | 24 | % | 27 | % | ||||||||||||||||||||||||||||||||||
2009 | 6 | % | 15 | % | 25 | % | 37 | % | ||||||||||||||||||||||||||||||||||||
2010 | 5 | % | 17 | % | 35 | % | ||||||||||||||||||||||||||||||||||||||
2011 | 4 | % | 22 | % | ||||||||||||||||||||||||||||||||||||||||
2012 | 6 | % |
Accident | Earned | Loss & ALAE | ||||||||||||||||||||||||||||||
Year | Premium | Paid | Case O/S | Reported | IBNR | Ultimate | Ult. Ratio | Unpaid | ||||||||||||||||||||||||
2002 | 39,904 | 8,027 | | 8,027 | 2,137 | 10,164 | 25.5 | % | 2,137 | |||||||||||||||||||||||
2003 | 76,140 | 23,203 | 2,702 | 25,905 | 4,001 | 29,907 | 39.3 | % | 6,703 | |||||||||||||||||||||||
2004 | 120,800 | 15,325 | 2,642 | 17,967 | 6,324 | 24,291 | 20.1 | % | 8,965 | |||||||||||||||||||||||
2005 | 136,577 | 13,647 | 1,796 | 15,443 | 11,043 | 26,487 | 19.4 | % | 12,839 | |||||||||||||||||||||||
2006 | 150,401 | 22,350 | 972 | 23,322 | 12,900 | 36,222 | 24.1 | % | 13,872 | |||||||||||||||||||||||
2007 | 147,720 | 32,100 | 13,715 | 45,816 | 8,330 | 54,146 | 36.7 | % | 22,045 | |||||||||||||||||||||||
2008 | 170,600 | 34,461 | 10,789 | 45,251 | 33,018 | 78,269 | 45.9 | % | 43,807 | |||||||||||||||||||||||
2009 | 197,314 | 38,919 | 34,257 | 73,176 | 39,569 | 112,745 | 57.1 | % | 73,827 | |||||||||||||||||||||||
2010 | 222,171 | 32,365 | 44,896 | 77,261 | 66,685 | 143,946 | 64.8 | % | 111,581 | |||||||||||||||||||||||
2011 | 228,445 | 15,556 | 35,037 | 50,594 | 91,274 | 141,868 | 62.1 | % | 126,312 | |||||||||||||||||||||||
2012 | 237,910 | 1,919 | 13,164 | 15,083 | 125,046 | 140,129 | 58.9 | % | 138,210 | |||||||||||||||||||||||
Total | 1,727,981 | 237,873 | 159,972 | 397,845 | 400,327 | 798,172 | 46.2 | % | 560,299 |
-15-
December 2012 Global Loss Triangles - Direct Insurance
Excluding large losses
U.S. dollars in thousands
Property Insurance (Net of Ceded Reinsurance)
Cumulative Paid Loss & ALAE |
||||||||||||||||||||||||||||||||||||||||||||
Accident | Months of Development | |||||||||||||||||||||||||||||||||||||||||||
Year | 12 | 24 | 36 | 48 | 60 | 72 | 84 | 96 | 108 | 120 | 132 | |||||||||||||||||||||||||||||||||
2002 | 2,572 | 27,085 | 39,606 | 43,638 | 48,955 | 49,063 | 49,154 | 49,054 | 49,066 | 49,067 | 49,067 | |||||||||||||||||||||||||||||||||
2003 | 49,208 | 118,094 | 163,485 | 175,303 | 175,715 | 175,379 | 179,293 | 179,283 | 179,378 | 179,392 | ||||||||||||||||||||||||||||||||||
2004 | 25,256 | 94,518 | 131,352 | 141,420 | 148,139 | 149,307 | 150,467 | 150,907 | 152,189 | |||||||||||||||||||||||||||||||||||
2005 | 40,373 | 99,880 | 138,713 | 161,091 | 165,024 | 165,290 | 166,393 | 164,486 | ||||||||||||||||||||||||||||||||||||
2006 | 12,871 | 46,209 | 76,773 | 87,886 | 93,293 | 94,060 | 95,230 | |||||||||||||||||||||||||||||||||||||
2007 | 20,325 | 62,106 | 79,511 | 86,918 | 89,091 | 94,204 | ||||||||||||||||||||||||||||||||||||||
2008 | 38,751 | 84,955 | 109,698 | 117,040 | 121,119 | |||||||||||||||||||||||||||||||||||||||
2009 | 15,993 | 42,846 | 50,242 | 53,634 | ||||||||||||||||||||||||||||||||||||||||
2010 | 29,325 | 67,717 | 83,323 | |||||||||||||||||||||||||||||||||||||||||
2011 | 31,764 | 79,874 | ||||||||||||||||||||||||||||||||||||||||||
2012 | 17,121 | |||||||||||||||||||||||||||||||||||||||||||
Reported Loss & ALAE |
||||||||||||||||||||||||||||||||||||||||||||
Accident | Months of Development | |||||||||||||||||||||||||||||||||||||||||||
Year | 12 | 24 | 36 | 48 | 60 | 72 | 84 | 96 | 108 | 120 | 132 | |||||||||||||||||||||||||||||||||
2002 | 15,359 | 48,581 | 50,631 | 50,905 | 49,787 | 49,206 | 50,347 | 49,066 | 49,066 | 49,067 | 49,067 | |||||||||||||||||||||||||||||||||
2003 | 130,863 | 173,192 | 187,840 | 187,279 | 182,859 | 180,769 | 179,873 | 179,676 | 179,641 | 179,619 | ||||||||||||||||||||||||||||||||||
2004 | 83,824 | 136,345 | 156,171 | 159,157 | 156,810 | 153,693 | 152,326 | 151,247 | 152,540 | |||||||||||||||||||||||||||||||||||
2005 | 99,789 | 152,456 | 173,462 | 173,122 | 172,390 | 167,846 | 167,108 | 164,600 | ||||||||||||||||||||||||||||||||||||
2006 | 65,486 | 96,268 | 101,170 | 99,127 | 97,845 | 96,643 | 98,153 | |||||||||||||||||||||||||||||||||||||
2007 | 91,985 | 107,261 | 107,409 | 105,592 | 105,695 | 105,889 | ||||||||||||||||||||||||||||||||||||||
2008 | 153,019 | 152,847 | 136,537 | 128,392 | 126,912 | |||||||||||||||||||||||||||||||||||||||
2009 | 59,002 | 61,631 | 60,966 | 60,584 | ||||||||||||||||||||||||||||||||||||||||
2010 | 70,807 | 99,749 | 100,179 | |||||||||||||||||||||||||||||||||||||||||
2011 | 109,475 | 134,352 | ||||||||||||||||||||||||||||||||||||||||||
2012 | 56,045 |
Reported Loss & ALAE Ratio to Earned Premium (excluding IBNR) |
||||||||||||||||||||||||||||||||||||||||||||
Accident | Months of Development | |||||||||||||||||||||||||||||||||||||||||||
Year | 12 | 24 | 36 | 48 | 60 | 72 | 84 | 96 | 108 | 120 | 132 | |||||||||||||||||||||||||||||||||
2002 | 9 | % | 28 | % | 29 | % | 30 | % | 29 | % | 29 | % | 29 | % | 29 | % | 29 | % | 29 | % | 29 | % | ||||||||||||||||||||||
2003 | 37 | % | 49 | % | 53 | % | 53 | % | 51 | % | 51 | % | 50 | % | 50 | % | 50 | % | 50 | % | ||||||||||||||||||||||||
2004 | 25 | % | 41 | % | 47 | % | 48 | % | 47 | % | 46 | % | 46 | % | 45 | % | 46 | % | ||||||||||||||||||||||||||
2005 | 44 | % | 67 | % | 76 | % | 76 | % | 76 | % | 74 | % | 74 | % | 73 | % | ||||||||||||||||||||||||||||
2006 | 34 | % | 50 | % | 53 | % | 52 | % | 51 | % | 51 | % | 51 | % | ||||||||||||||||||||||||||||||
2007 | 51 | % | 59 | % | 60 | % | 59 | % | 59 | % | 59 | % | ||||||||||||||||||||||||||||||||
2008 | 88 | % | 88 | % | 79 | % | 74 | % | 73 | % | ||||||||||||||||||||||||||||||||||
2009 | 41 | % | 43 | % | 43 | % | 42 | % | ||||||||||||||||||||||||||||||||||||
2010 | 55 | % | 78 | % | 78 | % | ||||||||||||||||||||||||||||||||||||||
2011 | 78 | % | 96 | % | ||||||||||||||||||||||||||||||||||||||||
2012 | 30 | % |
Accident | Earned | Loss & ALAE | ||||||||||||||||||||||||||||||
Year | Premium | Paid | Case O/S | Reported | IBNR | Ultimate | Ult. Ratio | Unpaid | ||||||||||||||||||||||||
2002 | 171,696 | 49,067 | | 49,067 | 0 | 49,067 | 28.6 | % | 0 | |||||||||||||||||||||||
2003 | 356,275 | 179,392 | 227 | 179,619 | 84 | 179,703 | 50.4 | % | 311 | |||||||||||||||||||||||
2004 | 333,170 | 152,189 | 350 | 152,540 | 34 | 152,574 | 45.8 | % | 384 | |||||||||||||||||||||||
2005 | 226,828 | 164,486 | 114 | 164,600 | 84 | 164,684 | 72.6 | % | 198 | |||||||||||||||||||||||
2006 | 190,783 | 95,230 | 2,923 | 98,153 | 611 | 98,764 | 51.8 | % | 3,534 | |||||||||||||||||||||||
2007 | 180,460 | 94,204 | 11,686 | 105,889 | 1,536 | 107,425 | 59.5 | % | 13,222 | |||||||||||||||||||||||
2008 | 173,790 | 121,119 | 5,794 | 126,912 | 1,148 | 128,060 | 73.7 | % | 6,942 | |||||||||||||||||||||||
2009 | 142,872 | 53,634 | 6,950 | 60,584 | 1,411 | 61,995 | 43.4 | % | 8,361 | |||||||||||||||||||||||
2010 | 128,427 | 83,323 | 16,856 | 100,179 | 5,429 | 105,608 | 82.2 | % | 22,285 | |||||||||||||||||||||||
2011 | 139,897 | 79,874 | 54,479 | 134,352 | 21,234 | 155,586 | 111.2 | % | 75,713 | |||||||||||||||||||||||
2012 | 184,340 | 17,121 | 38,925 | 56,045 | 35,142 | 91,187 | 49.5 | % | 74,066 | |||||||||||||||||||||||
Total | 2,228,538 | 1,089,637 | 138,303 | 1,227,940 | 66,713 | 1,294,652 | 58.1 | % | 205,016 |
-16-
December 2012 Global Loss Triangles - Direct Insurance
U.S. dollars in thousands
General Casualty Insurance (Net of Ceded Reinsurance)
Cumulative Paid Loss & ALAE |
||||||||||||||||||||||||||||||||||||||||||||
Accident | Months of Development | |||||||||||||||||||||||||||||||||||||||||||
Year | 12 | 24 | 36 | 48 | 60 | 72 | 84 | 96 | 108 | 120 | 132 | |||||||||||||||||||||||||||||||||
2002 | 0 | 0 | 185 | 464 | 2,848 | 4,691 | 5,591 | 6,574 | 7,802 | 8,662 | 9,887 | |||||||||||||||||||||||||||||||||
2003 | 0 | 461 | 16,018 | 18,499 | 29,401 | 55,139 | 57,457 | 57,462 | 57,486 | 57,533 | ||||||||||||||||||||||||||||||||||
2004 | 0 | 14 | 77 | 506 | 5,053 | 7,545 | 16,465 | 21,746 | 28,834 | |||||||||||||||||||||||||||||||||||
2005 | 15 | 26,496 | 31,126 | 60,576 | 62,700 | 93,736 | 93,977 | 95,881 | ||||||||||||||||||||||||||||||||||||
2006 | | 266 | 2,570 | 29,999 | 56,694 | 72,659 | 72,688 | |||||||||||||||||||||||||||||||||||||
2007 | 90 | 6,212 | 7,646 | 11,171 | 23,180 | 25,344 | ||||||||||||||||||||||||||||||||||||||
2008 | 1,114 | 5,663 | 18,971 | 35,915 | 39,859 | |||||||||||||||||||||||||||||||||||||||
2009 | 308 | 5,891 | 25,347 | 45,889 | ||||||||||||||||||||||||||||||||||||||||
2010 | 932 | 33,959 | 81,399 | |||||||||||||||||||||||||||||||||||||||||
2011 | 6,911 | 24,609 | ||||||||||||||||||||||||||||||||||||||||||
2012 | 8,513 | |||||||||||||||||||||||||||||||||||||||||||
Reported Loss & ALAE |
||||||||||||||||||||||||||||||||||||||||||||
Accident | Months of Development | |||||||||||||||||||||||||||||||||||||||||||
Year | 12 | 24 | 36 | 48 | 60 | 72 | 84 | 96 | 108 | 120 | 132 | |||||||||||||||||||||||||||||||||
2002 | 1,429 | 618 | 989 | 552 | 6,299 | 15,616 | 16,506 | 17,369 | 23,361 | 22,058 | 32,290 | |||||||||||||||||||||||||||||||||
2003 | 23 | 13,124 | 25,852 | 33,578 | 58,980 | 59,140 | 57,666 | 57,574 | 57,536 | 57,533 | ||||||||||||||||||||||||||||||||||
2004 | 1,007 | 533 | 803 | 668 | 7,208 | 21,354 | 21,803 | 30,832 | 32,091 | |||||||||||||||||||||||||||||||||||
2005 | 30,852 | 85,663 | 89,087 | 95,511 | 100,049 | 100,281 | 98,800 | 123,397 | ||||||||||||||||||||||||||||||||||||
2006 | 165 | 27,081 | 35,290 | 61,938 | 63,445 | 72,671 | 72,728 | |||||||||||||||||||||||||||||||||||||
2007 | 4,081 | 13,364 | 13,836 | 28,498 | 31,557 | 32,539 | ||||||||||||||||||||||||||||||||||||||
2008 | 5,543 | 19,509 | 39,067 | 39,434 | 42,650 | |||||||||||||||||||||||||||||||||||||||
2009 | 1,875 | 23,928 | 32,781 | 51,965 | ||||||||||||||||||||||||||||||||||||||||
2010 | 46,228 | 81,263 | 100,472 | |||||||||||||||||||||||||||||||||||||||||
2011 | 29,292 | 67,676 | ||||||||||||||||||||||||||||||||||||||||||
2012 | 43,065 | |||||||||||||||||||||||||||||||||||||||||||
Reported Loss & ALAE Ratio to Earned Premium (excluding IBNR) |
||||||||||||||||||||||||||||||||||||||||||||
Accident | Months of Development | |||||||||||||||||||||||||||||||||||||||||||
Year | 12 | 24 | 36 | 48 | 60 | 72 | 84 | 96 | 108 | 120 | 132 | |||||||||||||||||||||||||||||||||
2002 | 2 | % | 1 | % | 1 | % | 1 | % | 7 | % | 18 | % | 19 | % | 20 | % | 27 | % | 25 | % | 37 | % | ||||||||||||||||||||||
2003 | 0 | % | 6 | % | 11 | % | 14 | % | 25 | % | 25 | % | 25 | % | 25 | % | 25 | % | 25 | % | ||||||||||||||||||||||||
2004 | 0 | % | 0 | % | 0 | % | 0 | % | 3 | % | 8 | % | 8 | % | 11 | % | 12 | % | ||||||||||||||||||||||||||
2005 | 13 | % | 36 | % | 38 | % | 40 | % | 42 | % | 42 | % | 42 | % | 52 | % | ||||||||||||||||||||||||||||
2006 | 0 | % | 13 | % | 16 | % | 29 | % | 30 | % | 34 | % | 34 | % | ||||||||||||||||||||||||||||||
2007 | 2 | % | 7 | % | 7 | % | 15 | % | 16 | % | 17 | % | ||||||||||||||||||||||||||||||||
2008 | 3 | % | 12 | % | 24 | % | 24 | % | 26 | % | ||||||||||||||||||||||||||||||||||
2009 | 1 | % | 14 | % | 19 | % | 30 | % | ||||||||||||||||||||||||||||||||||||
2010 | 24 | % | 42 | % | 51 | % | ||||||||||||||||||||||||||||||||||||||
2011 | 13 | % | 30 | % | ||||||||||||||||||||||||||||||||||||||||
2012 | 16 | % |
Accident | Earned | Loss & ALAE | ||||||||||||||||||||||||||||||
Year | Premium | Paid | Case O/S | Reported | IBNR | Ultimate | Ult. Ratio | Unpaid | ||||||||||||||||||||||||
2002 | 88,051 | 9,887 | 22,403 | 32,290 | 6,851 | 39,141 | 44.5 | % | 29,254 | |||||||||||||||||||||||
2003 | 233,589 | 57,533 | | 57,533 | 28,450 | 85,983 | 36.8 | % | 28,450 | |||||||||||||||||||||||
2004 | 271,160 | 28,834 | 3,256 | 32,091 | 40,637 | 72,727 | 26.8 | % | 43,893 | |||||||||||||||||||||||
2005 | 236,587 | 95,881 | 27,515 | 123,397 | 37,921 | 161,318 | 68.2 | % | 65,436 | |||||||||||||||||||||||
2006 | 214,376 | 72,688 | 40 | 72,728 | 47,261 | 119,989 | 56.0 | % | 47,301 | |||||||||||||||||||||||
2007 | 192,097 | 25,344 | 7,195 | 32,539 | 61,334 | 93,873 | 48.9 | % | 68,529 | |||||||||||||||||||||||
2008 | 162,750 | 39,859 | 2,791 | 42,650 | 80,397 | 123,048 | 75.6 | % | 83,188 | |||||||||||||||||||||||
2009 | 172,403 | 45,889 | 6,076 | 51,965 | 79,814 | 131,779 | 76.4 | % | 85,890 | |||||||||||||||||||||||
2010 | 195,237 | 81,399 | 19,073 | 100,472 | 93,718 | 194,190 | 99.5 | % | 112,791 | |||||||||||||||||||||||
2011 | 222,493 | 24,609 | 43,068 | 67,676 | 116,787 | 184,464 | 82.9 | % | 159,855 | |||||||||||||||||||||||
2012 | 274,263 | 8,513 | 34,551 | 43,065 | 157,625 | 200,689 | 73.2 | % | 192,176 | |||||||||||||||||||||||
Total | 2,263,007 | 490,436 | 165,970 | 656,406 | 750,795 | 1,407,201 | 62.2 | % | 916,765 |
-17-
December 2012 Global Loss Triangles - Direct Insurance
U.S. dollars in thousands
Professional Liability Lines Insurance (Net of Ceded Reinsurance)
Cumulative Paid Loss & ALAE |
||||||||||||||||||||||||||||||||||||||||||||
Accident | Months of Development | |||||||||||||||||||||||||||||||||||||||||||
Year | 12 | 24 | 36 | 48 | 60 | 72 | 84 | 96 | 108 | 120 | 132 | |||||||||||||||||||||||||||||||||
2002 | | 10 | 61 | 5,225 | 13,909 | 45,884 | 59,860 | 59,930 | 59,944 | 59,984 | 62,538 | |||||||||||||||||||||||||||||||||
2003 | 20 | 80 | 603 | 799 | 5,997 | 15,424 | 15,727 | 24,885 | 24,967 | 26,108 | ||||||||||||||||||||||||||||||||||
2004 | 15 | 681 | 7,403 | 29,464 | 30,384 | 38,983 | 48,431 | 48,537 | 48,664 | |||||||||||||||||||||||||||||||||||
2005 | 95 | 3,328 | 7,272 | 18,291 | 19,043 | 40,954 | 41,214 | 41,518 | ||||||||||||||||||||||||||||||||||||
2006 | 266 | 4,296 | 34,123 | 48,611 | 70,853 | 79,956 | 93,976 | |||||||||||||||||||||||||||||||||||||
2007 | 1,312 | 11,982 | 36,732 | 56,952 | 66,212 | 77,668 | ||||||||||||||||||||||||||||||||||||||
2008 | 2,728 | 20,856 | 38,433 | 81,913 | 130,147 | |||||||||||||||||||||||||||||||||||||||
2009 | 5,938 | 30,737 | 51,066 | 65,484 | ||||||||||||||||||||||||||||||||||||||||
2010 | 9,575 | 43,251 | 69,631 | |||||||||||||||||||||||||||||||||||||||||
2011 | 15,257 | 65,775 | ||||||||||||||||||||||||||||||||||||||||||
2012 | 17,643 | |||||||||||||||||||||||||||||||||||||||||||
Reported Loss & ALAE |
||||||||||||||||||||||||||||||||||||||||||||
Accident | Months of Development | |||||||||||||||||||||||||||||||||||||||||||
Year | 12 | 24 | 36 | 48 | 60 | 72 | 84 | 96 | 108 | 120 | 132 | |||||||||||||||||||||||||||||||||
2002 | | 2,010 | 7,062 | 23,775 | 28,000 | 47,706 | 60,648 | 59,930 | 59,944 | 59,984 | 62,538 | |||||||||||||||||||||||||||||||||
2003 | 60 | 243 | 858 | 6,252 | 31,963 | 39,947 | 43,200 | 40,526 | 42,085 | 41,725 | ||||||||||||||||||||||||||||||||||
2004 | 434 | 1,690 | 8,102 | 32,688 | 55,417 | 55,570 | 61,340 | 60,761 | 60,888 | |||||||||||||||||||||||||||||||||||
2005 | 3,931 | 12,613 | 40,988 | 43,748 | 42,802 | 54,727 | 54,855 | 55,801 | ||||||||||||||||||||||||||||||||||||
2006 | 41,109 | 40,424 | 77,728 | 97,820 | 112,069 | 162,521 | 161,730 | |||||||||||||||||||||||||||||||||||||
2007 | 10,557 | 30,869 | 79,692 | 107,002 | 112,600 | 106,267 | ||||||||||||||||||||||||||||||||||||||
2008 | 15,136 | 72,016 | 104,703 | 144,350 | 174,785 | |||||||||||||||||||||||||||||||||||||||
2009 | 20,418 | 59,130 | 74,956 | 86,672 | ||||||||||||||||||||||||||||||||||||||||
2010 | 30,527 | 68,384 | 101,151 | |||||||||||||||||||||||||||||||||||||||||
2011 | 46,013 | 113,706 | ||||||||||||||||||||||||||||||||||||||||||
2012 | 45,869 | |||||||||||||||||||||||||||||||||||||||||||
Reported Loss & ALAE Ratio to Earned Premium (excluding IBNR) |
||||||||||||||||||||||||||||||||||||||||||||
Accident | Months of Development | |||||||||||||||||||||||||||||||||||||||||||
Year | 12 | 24 | 36 | 48 | 60 | 72 | 84 | 96 | 108 | 120 | 132 | |||||||||||||||||||||||||||||||||
2002 | 0 | % | 3 | % | 12 | % | 40 | % | 47 | % | 80 | % | 102 | % | 101 | % | 101 | % | 101 | % | 105 | % | ||||||||||||||||||||||
2003 | 0 | % | 0 | % | 0 | % | 3 | % | 14 | % | 17 | % | 19 | % | 17 | % | 18 | % | 18 | % | ||||||||||||||||||||||||
2004 | 0 | % | 1 | % | 3 | % | 11 | % | 18 | % | 18 | % | 20 | % | 20 | % | 20 | % | ||||||||||||||||||||||||||
2005 | 1 | % | 4 | % | 13 | % | 13 | % | 13 | % | 17 | % | 17 | % | 17 | % | ||||||||||||||||||||||||||||
2006 | 12 | % | 12 | % | 23 | % | 28 | % | 33 | % | 47 | % | 47 | % | ||||||||||||||||||||||||||||||
2007 | 3 | % | 9 | % | 23 | % | 31 | % | 32 | % | 30 | % | ||||||||||||||||||||||||||||||||
2008 | 4 | % | 21 | % | 31 | % | 42 | % | 51 | % | ||||||||||||||||||||||||||||||||||
2009 | 5 | % | 15 | % | 19 | % | 22 | % | ||||||||||||||||||||||||||||||||||||
2010 | 9 | % | 19 | % | 28 | % | ||||||||||||||||||||||||||||||||||||||
2011 | 13 | % | 32 | % | ||||||||||||||||||||||||||||||||||||||||
2012 | 12 | % |
Accident | Earned | Loss & ALAE | ||||||||||||||||||||||||||||||
Year | Premium | Paid | Case O/S | Reported | IBNR | Ultimate | Ult. Ratio | Unpaid | ||||||||||||||||||||||||
2002 | 59,558 | 62,538 | | 62,538 | 2,830 | 65,368 | 109.8 | % | 2,830 | |||||||||||||||||||||||
2003 | 232,141 | 26,108 | 15,617 | 41,725 | 29,205 | 70,930 | 30.6 | % | 44,822 | |||||||||||||||||||||||
2004 | 304,642 | 48,664 | 12,224 | 60,888 | 21,501 | 82,388 | 27.0 | % | 33,725 | |||||||||||||||||||||||
2005 | 326,766 | 41,518 | 14,283 | 55,801 | 29,566 | 85,367 | 26.1 | % | 43,849 | |||||||||||||||||||||||
2006 | 343,955 | 93,976 | 67,754 | 161,730 | 48,540 | 210,270 | 61.1 | % | 116,294 | |||||||||||||||||||||||
2007 | 349,869 | 77,668 | 28,600 | 106,267 | 86,614 | 192,881 | 55.1 | % | 115,214 | |||||||||||||||||||||||
2008 | 341,088 | 130,147 | 44,638 | 174,785 | 89,174 | 263,960 | 77.4 | % | 133,812 | |||||||||||||||||||||||
2009 | 386,618 | 65,484 | 21,189 | 86,672 | 183,045 | 269,717 | 69.8 | % | 204,234 | |||||||||||||||||||||||
2010 | 355,310 | 69,631 | 31,520 | 101,151 | 152,421 | 253,572 | 71.4 | % | 183,941 | |||||||||||||||||||||||
2011 | 354,064 | 65,775 | 47,931 | 113,706 | 153,467 | 267,173 | 75.5 | % | 201,398 | |||||||||||||||||||||||
2012 | 374,339 | 17,643 | 28,226 | 45,869 | 206,511 | 252,380 | 67.4 | % | 234,736 | |||||||||||||||||||||||
Total | 3,428,350 | 699,152 | 311,982 | 1,011,134 | 1,002,872 | 2,014,007 | 58.7 | % | 1,314,854 |
-18-
December 2012 Global Loss Triangles - Direct Insurance
U.S. dollars in thousands
Healthcare Insurance (Net of Ceded Reinsurance)
Cumulative Paid Loss & ALAE |
||||||||||||||||||||||||||||||||||||||||||||
Accident Year |
Months of Development | |||||||||||||||||||||||||||||||||||||||||||
12 | 24 | 36 | 48 | 60 | 72 | 84 | 96 | 108 | 120 | 132 | ||||||||||||||||||||||||||||||||||
2002 | | 835 | 2,158 | 3,209 | 5,533 | 8,008 | 8,020 | 8,023 | 8,025 | 8,025 | 8,027 | |||||||||||||||||||||||||||||||||
2003 | 1 | 4,202 | 11,148 | 13,777 | 14,724 | 18,198 | 18,756 | 20,074 | 20,104 | 23,203 | ||||||||||||||||||||||||||||||||||
2004 | 2 | 841 | 5,881 | 9,727 | 12,683 | 13,218 | 13,368 | 13,775 | 15,315 | |||||||||||||||||||||||||||||||||||
2005 | 237 | 2,681 | 4,577 | 9,493 | 10,026 | 10,549 | 11,912 | 12,068 | ||||||||||||||||||||||||||||||||||||
2006 | 308 | 2,652 | 4,428 | 8,749 | 11,948 | 14,604 | 16,824 | |||||||||||||||||||||||||||||||||||||
2007 | 934 | 6,029 | 15,608 | 18,396 | 21,564 | 25,807 | ||||||||||||||||||||||||||||||||||||||
2008 | 789 | 7,893 | 15,849 | 25,510 | 31,383 | |||||||||||||||||||||||||||||||||||||||
2009 | 4,581 | 14,167 | 24,529 | 36,001 | ||||||||||||||||||||||||||||||||||||||||
2010 | 2,135 | 12,032 | 31,645 | |||||||||||||||||||||||||||||||||||||||||
2011 | 1,902 | 15,010 | ||||||||||||||||||||||||||||||||||||||||||
2012 | 1,905 | |||||||||||||||||||||||||||||||||||||||||||
Reported Loss & ALAE |
||||||||||||||||||||||||||||||||||||||||||||
Accident | Months of Development | |||||||||||||||||||||||||||||||||||||||||||
Year | 12 | 24 | 36 | 48 | 60 | 72 | 84 | 96 | 108 | 120 | 132 | |||||||||||||||||||||||||||||||||
2002 | 130 | 1,350 | 5,450 | 8,985 | 8,910 | 8,444 | 8,121 | 8,086 | 8,046 | 8,042 | 8,027 | |||||||||||||||||||||||||||||||||
2003 | 345 | 11,153 | 20,246 | 20,723 | 20,529 | 23,625 | 23,160 | 23,420 | 23,793 | 25,905 | ||||||||||||||||||||||||||||||||||
2004 | 1,846 | 6,395 | 12,054 | 14,584 | 14,863 | 15,909 | 15,917 | 15,933 | 17,957 | |||||||||||||||||||||||||||||||||||
2005 | 5,197 | 10,142 | 13,483 | 12,473 | 11,766 | 12,116 | 12,937 | 13,753 | ||||||||||||||||||||||||||||||||||||
2006 | 4,267 | 8,926 | 10,239 | 12,740 | 14,827 | 17,791 | 17,796 | |||||||||||||||||||||||||||||||||||||
2007 | 3,603 | 13,040 | 22,295 | 31,659 | 34,971 | 35,581 | ||||||||||||||||||||||||||||||||||||||
2008 | 3,786 | 16,754 | 29,522 | 35,794 | 38,252 | |||||||||||||||||||||||||||||||||||||||
2009 | 8,941 | 26,830 | 45,270 | 62,051 | ||||||||||||||||||||||||||||||||||||||||
2010 | 11,044 | 37,973 | 69,468 | |||||||||||||||||||||||||||||||||||||||||
2011 | 9,943 | 48,178 | ||||||||||||||||||||||||||||||||||||||||||
2012 | 15,062 | |||||||||||||||||||||||||||||||||||||||||||
Reported Loss & ALAE Ratio to Earned Premium (excluding IBNR) |
||||||||||||||||||||||||||||||||||||||||||||
Accident | Months of Development | |||||||||||||||||||||||||||||||||||||||||||
Year | 12 | 24 | 36 | 48 | 60 | 72 | 84 | 96 | 108 | 120 | 132 | |||||||||||||||||||||||||||||||||
2002 | 0 | % | 3 | % | 14 | % | 23 | % | 22 | % | 21 | % | 20 | % | 20 | % | 20 | % | 20 | % | 20 | % | ||||||||||||||||||||||
2003 | 0 | % | 15 | % | 27 | % | 28 | % | 27 | % | 31 | % | 31 | % | 31 | % | 32 | % | 35 | % | ||||||||||||||||||||||||
2004 | 2 | % | 6 | % | 10 | % | 13 | % | 13 | % | 14 | % | 14 | % | 14 | % | 16 | % | ||||||||||||||||||||||||||
2005 | 4 | % | 9 | % | 11 | % | 11 | % | 10 | % | 10 | % | 11 | % | 12 | % | ||||||||||||||||||||||||||||
2006 | 3 | % | 7 | % | 8 | % | 10 | % | 12 | % | 14 | % | 14 | % | ||||||||||||||||||||||||||||||
2007 | 3 | % | 11 | % | 19 | % | 27 | % | 30 | % | 30 | % | ||||||||||||||||||||||||||||||||
2008 | 3 | % | 13 | % | 22 | % | 27 | % | 29 | % | ||||||||||||||||||||||||||||||||||
2009 | 6 | % | 18 | % | 30 | % | 41 | % | ||||||||||||||||||||||||||||||||||||
2010 | 7 | % | 22 | % | 41 | % | ||||||||||||||||||||||||||||||||||||||
2011 | 6 | % | 28 | % | ||||||||||||||||||||||||||||||||||||||||
2012 | 9 | % |
Accident | Earned | Loss & ALAE | ||||||||||||||||||||||||||||||
Year | Premium | Paid | Case O/S | Reported | IBNR | Ultimate | Ult. Ratio | Unpaid | ||||||||||||||||||||||||
2002 | 39,904 | 8,027 | | 8,027 | 2,137 | 10,164 | 25.5 | % | 2,137 | |||||||||||||||||||||||
2003 | 75,002 | 23,203 | 2,702 | 25,905 | 4,001 | 29,907 | 39.9 | % | 6,703 | |||||||||||||||||||||||
2004 | 114,883 | 15,315 | 2,642 | 17,957 | 6,324 | 24,280 | 21.1 | % | 8,965 | |||||||||||||||||||||||
2005 | 118,565 | 12,068 | 1,686 | 13,753 | 8,955 | 22,709 | 19.2 | % | 10,641 | |||||||||||||||||||||||
2006 | 124,024 | 16,824 | 972 | 17,796 | 10,210 | 28,005 | 22.6 | % | 11,182 | |||||||||||||||||||||||
2007 | 117,748 | 25,807 | 9,774 | 35,581 | 7,705 | 43,286 | 36.8 | % | 17,479 | |||||||||||||||||||||||
2008 | 131,356 | 31,383 | 6,869 | 38,252 | 24,524 | 62,776 | 47.8 | % | 31,394 | |||||||||||||||||||||||
2009 | 150,165 | 36,001 | 26,050 | 62,051 | 28,937 | 90,988 | 60.6 | % | 54,987 | |||||||||||||||||||||||
2010 | 169,545 | 31,645 | 37,823 | 69,468 | 47,254 | 116,722 | 68.8 | % | 85,077 | |||||||||||||||||||||||
2011 | 173,460 | 15,010 | 33,168 | 48,178 | 62,343 | 110,521 | 63.7 | % | 95,511 | |||||||||||||||||||||||
2012 | 175,947 | 1,905 | 13,157 | 15,062 | 89,074 | 104,135 | 59.2 | % | 102,231 | |||||||||||||||||||||||
Total | 1,390,599 | 217,187 | 134,842 | 352,030 | 291,464 | 643,494 | 46.3 | % | 426,306 |
-19-
December 2012 Global Loss Triangles - Reinsurance
U.S. dollars in thousands
Property Catastrophe Reinsurance (Gross of Ceded Reinsurance)
Cumulative Paid Loss & ALAE |
||||||||||||||||||||||||||||||||||||||||||||
Treaty | Months of Development | |||||||||||||||||||||||||||||||||||||||||||
Year | 12 | 24 | 36 | 48 | 60 | 72 | 84 | 96 | 108 | 120 | 132 | |||||||||||||||||||||||||||||||||
2002 | 101 | 2,131 | 4,161 | 4,194 | 4,310 | 4,310 | 4,336 | 4,336 | 4,336 | 4,336 | 4,336 | |||||||||||||||||||||||||||||||||
2003 | 3,977 | 6,251 | 6,882 | 6,831 | 6,843 | 7,235 | 7,237 | 7,237 | 7,237 | 7,237 | ||||||||||||||||||||||||||||||||||
2004 | 17,379 | 47,475 | 55,350 | 57,786 | 59,259 | 60,040 | 60,489 | 60,852 | 61,286 | |||||||||||||||||||||||||||||||||||
2005 | 35,255 | 121,814 | 141,709 | 148,497 | 151,206 | 152,497 | 152,998 | 153,327 | ||||||||||||||||||||||||||||||||||||
2006 | 710 | 8,912 | 9,671 | 9,829 | 9,903 | 9,917 | 9,917 | |||||||||||||||||||||||||||||||||||||
2007 | 3,999 | 12,770 | 12,511 | 12,767 | 12,561 | 12,603 | ||||||||||||||||||||||||||||||||||||||
2008 | 15,798 | 26,979 | 30,619 | 32,007 | 33,204 | |||||||||||||||||||||||||||||||||||||||
2009 | 269 | 905 | 2,977 | 4,139 | ||||||||||||||||||||||||||||||||||||||||
2010 | 3,798 | 54,580 | 76,523 | |||||||||||||||||||||||||||||||||||||||||
2011 | 22,254 | 64,133 | ||||||||||||||||||||||||||||||||||||||||||
2012 | 26,282 | |||||||||||||||||||||||||||||||||||||||||||
Reported Loss & ALAE |
||||||||||||||||||||||||||||||||||||||||||||
Treaty | Months of Development | |||||||||||||||||||||||||||||||||||||||||||
Year | 12 | 24 | 36 | 48 | 60 | 72 | 84 | 96 | 108 | 120 | 132 | |||||||||||||||||||||||||||||||||
2002 | 3,041 | 5,163 | 4,370 | 4,390 | 4,372 | 4,371 | 4,356 | 4,356 | 4,336 | 4,336 | 4,336 | |||||||||||||||||||||||||||||||||
2003 | 6,172 | 7,561 | 7,009 | 6,920 | 6,939 | 7,235 | 7,237 | 7,237 | 7,237 | 7,237 | ||||||||||||||||||||||||||||||||||
2004 | 33,642 | 56,808 | 59,396 | 60,325 | 60,712 | 61,073 | 60,889 | 61,110 | 61,373 | |||||||||||||||||||||||||||||||||||
2005 | 130,142 | 151,004 | 151,495 | 153,665 | 154,739 | 155,285 | 155,383 | 155,317 | ||||||||||||||||||||||||||||||||||||
2006 | 3,275 | 9,580 | 9,885 | 10,172 | 10,131 | 10,136 | 10,131 | |||||||||||||||||||||||||||||||||||||
2007 | 17,051 | 15,664 | 13,584 | 13,412 | 12,847 | 12,778 | ||||||||||||||||||||||||||||||||||||||
2008 | 31,318 | 32,595 | 33,106 | 33,901 | 33,952 | |||||||||||||||||||||||||||||||||||||||
2009 | 2,557 | 5,613 | 5,246 | 5,281 | ||||||||||||||||||||||||||||||||||||||||
2010 | 32,490 | 86,547 | 103,457 | |||||||||||||||||||||||||||||||||||||||||
2011 | 89,719 | 123,934 | ||||||||||||||||||||||||||||||||||||||||||
2012 | 55,315 | |||||||||||||||||||||||||||||||||||||||||||
Reported Loss & ALAE Ratio to Earned Premium (excluding IBNR) |
||||||||||||||||||||||||||||||||||||||||||||
Treaty | Months of Development | |||||||||||||||||||||||||||||||||||||||||||
Year | 12 | 24 | 36 | 48 | 60 | 72 | 84 | 96 | 108 | 120 | 132 | |||||||||||||||||||||||||||||||||
2002 | 12 | % | 15 | % | 13 | % | 13 | % | 13 | % | 13 | % | 13 | % | 13 | % | 13 | % | 13 | % | 13 | % | ||||||||||||||||||||||
2003 | 13 | % | 13 | % | 12 | % | 12 | % | 12 | % | 12 | % | 12 | % | 12 | % | 12 | % | 12 | % | ||||||||||||||||||||||||
2004 | 62 | % | 86 | % | 90 | % | 91 | % | 92 | % | 92 | % | 92 | % | 92 | % | 93 | % | ||||||||||||||||||||||||||
2005 | 178 | % | 180 | % | 181 | % | 183 | % | 185 | % | 185 | % | 185 | % | 185 | % | ||||||||||||||||||||||||||||
2006 | 6 | % | 14 | % | 15 | % | 15 | % | 15 | % | 15 | % | 15 | % | ||||||||||||||||||||||||||||||
2007 | 25 | % | 19 | % | 16 | % | 16 | % | 15 | % | 15 | % | ||||||||||||||||||||||||||||||||
2008 | 63 | % | 49 | % | 49 | % | 50 | % | 51 | % | ||||||||||||||||||||||||||||||||||
2009 | 4 | % | 7 | % | 6 | % | 6 | % | ||||||||||||||||||||||||||||||||||||
2010 | 31 | % | 64 | % | 76 | % | ||||||||||||||||||||||||||||||||||||||
2011 | 64 | % | 63 | % | ||||||||||||||||||||||||||||||||||||||||
2012 | 31 | % |
Treaty Year |
Earned Premium |
Loss & ALAE | ||||||||||||||||||||||||||||||
Paid | Case O/S | Reported | IBNR | Ultimate | Ult. Ratio | Unpaid | ||||||||||||||||||||||||||
2002 | 33,846 | 4,336 | 0 | 4,336 | | 4,336 | 12.8 | % | 0 | |||||||||||||||||||||||
2003 | 58,868 | 7,237 | 0 | 7,237 | | 7,237 | 12.3 | % | 0 | |||||||||||||||||||||||
2004 | 66,178 | 61,286 | 87 | 61,373 | 12 | 61,386 | 92.8 | % | 100 | |||||||||||||||||||||||
2005 | 83,838 | 153,327 | 1,991 | 155,317 | 393 | 155,711 | 185.7 | % | 2,384 | |||||||||||||||||||||||
2006 | 67,029 | 9,917 | 213 | 10,131 | 21 | 10,152 | 15.1 | % | 234 | |||||||||||||||||||||||
2007 | 83,675 | 12,603 | 175 | 12,778 | 8 | 12,787 | 15.3 | % | 183 | |||||||||||||||||||||||
2008 | 66,915 | 33,204 | 748 | 33,952 | 239 | 34,191 | 51.1 | % | 987 | |||||||||||||||||||||||
2009 | 83,264 | 4,139 | 1,142 | 5,281 | 290 | 5,571 | 6.7 | % | 1,432 | |||||||||||||||||||||||
2010 | 136,296 | 76,523 | 26,934 | 103,457 | 6,894 | 110,351 | 81.0 | % | 33,829 | |||||||||||||||||||||||
2011 | 195,282 | 64,133 | 59,801 | 123,934 | 18,825 | 142,759 | 73.1 | % | 78,626 | |||||||||||||||||||||||
2012 | 175,910 | 26,282 | 29,033 | 55,315 | 56,458 | 111,772 | 63.5 | % | 85,490 | |||||||||||||||||||||||
Total | 1,051,101 | 452,988 | 120,125 | 573,112 | 83,141 | 656,253 | 62.4 | % | 203,266 |
-20-
December 2012 Global Loss Triangles - Reinsurance
Excluding large losses
U.S. dollars in thousands
Property Other Reinsurance (Gross of Ceded Reinsurance)
Cumulative Paid Loss & ALAE |
||||||||||||||||||||||||||||||||||||||||||||
Treaty | Months of Development | |||||||||||||||||||||||||||||||||||||||||||
Year | 12 | 24 | 36 | 48 | 60 | 72 | 84 | 96 | 108 | 120 | 132 | |||||||||||||||||||||||||||||||||
2002 | 1,994 | 14,146 | 21,254 | 24,533 | 26,202 | 27,034 | 27,241 | 27,550 | 27,573 | 27,588 | 27,587 | |||||||||||||||||||||||||||||||||
2003 | 1,794 | 9,960 | 13,446 | 16,264 | 17,931 | 18,421 | 18,892 | 19,262 | 19,340 | 19,374 | ||||||||||||||||||||||||||||||||||
2004 | 949 | 7,461 | 11,995 | 14,439 | 15,598 | 17,294 | 17,210 | 17,405 | 17,442 | |||||||||||||||||||||||||||||||||||
2005 | 5,111 | 23,166 | 29,796 | 31,025 | 42,623 | 46,347 | 46,594 | 47,527 | ||||||||||||||||||||||||||||||||||||
2006 | 3,793 | 17,679 | 23,689 | 27,465 | 29,525 | 29,862 | 29,924 | |||||||||||||||||||||||||||||||||||||
2007 | 717 | 8,668 | 12,738 | 14,733 | 15,753 | 19,398 | ||||||||||||||||||||||||||||||||||||||
2008 | 3,920 | 10,738 | 12,479 | 14,966 | 15,195 | |||||||||||||||||||||||||||||||||||||||
2009 | 4,664 | 12,112 | 18,692 | 21,638 | ||||||||||||||||||||||||||||||||||||||||
2010 | 5,835 | 20,289 | 29,650 | |||||||||||||||||||||||||||||||||||||||||
2011 | 4,003 | 22,074 | ||||||||||||||||||||||||||||||||||||||||||
2012 | 5,422 | |||||||||||||||||||||||||||||||||||||||||||
Reported Loss & ALAE |
||||||||||||||||||||||||||||||||||||||||||||
Treaty | Months of Development | |||||||||||||||||||||||||||||||||||||||||||
Year | 12 | 24 | 36 | 48 | 60 | 72 | 84 | 96 | 108 | 120 | 132 | |||||||||||||||||||||||||||||||||
2002 | 3,082 | 17,552 | 26,185 | 27,026 | 27,589 | 27,756 | 27,588 | 27,715 | 27,606 | 27,628 | 27,603 | |||||||||||||||||||||||||||||||||
2003 | 6,313 | 14,931 | 17,064 | 19,609 | 19,904 | 19,931 | 20,437 | 19,891 | 19,427 | 19,377 | ||||||||||||||||||||||||||||||||||
2004 | 7,729 | 9,571 | 14,654 | 16,236 | 16,650 | 17,180 | 17,493 | 17,538 | 17,528 | |||||||||||||||||||||||||||||||||||
2005 | 6,675 | 33,802 | 43,645 | 45,360 | 45,571 | 46,163 | 46,136 | 47,257 | ||||||||||||||||||||||||||||||||||||
2006 | 9,307 | 23,794 | 30,449 | 30,525 | 30,085 | 30,377 | 30,259 | |||||||||||||||||||||||||||||||||||||
2007 | 3,360 | 23,153 | 24,853 | 23,927 | 23,660 | 20,075 | ||||||||||||||||||||||||||||||||||||||
2008 | 9,627 | 15,156 | 15,746 | 16,123 | 16,068 | |||||||||||||||||||||||||||||||||||||||
2009 | 11,574 | 20,126 | 21,982 | 23,031 | ||||||||||||||||||||||||||||||||||||||||
2010 | 13,219 | 34,080 | 36,749 | |||||||||||||||||||||||||||||||||||||||||
2011 | 16,736 | 38,181 | ||||||||||||||||||||||||||||||||||||||||||
2012 | 19,163 | |||||||||||||||||||||||||||||||||||||||||||
Reported Loss & ALAE Ratio to Earned Premium (excluding IBNR) |
||||||||||||||||||||||||||||||||||||||||||||
Treaty | Months of Development | |||||||||||||||||||||||||||||||||||||||||||
Year | 12 | 24 | 36 | 48 | 60 | 72 | 84 | 96 | 108 | 120 | 132 | |||||||||||||||||||||||||||||||||
2002 | 17 | % | 28 | % | 41 | % | 42 | % | 43 | % | 43 | % | 43 | % | 43 | % | 43 | % | 43 | % | 43 | % | ||||||||||||||||||||||
2003 | 19 | % | 22 | % | 24 | % | 28 | % | 29 | % | 30 | % | 31 | % | 30 | % | 29 | % | 29 | % | ||||||||||||||||||||||||
2004 | 16 | % | 13 | % | 20 | % | 22 | % | 22 | % | 23 | % | 23 | % | 23 | % | 23 | % | ||||||||||||||||||||||||||
2005 | 15 | % | 43 | % | 57 | % | 59 | % | 59 | % | 60 | % | 60 | % | 62 | % | ||||||||||||||||||||||||||||
2006 | 19 | % | 35 | % | 45 | % | 45 | % | 44 | % | 45 | % | 44 | % | ||||||||||||||||||||||||||||||
2007 | 14 | % | 57 | % | 60 | % | 57 | % | 56 | % | 48 | % | ||||||||||||||||||||||||||||||||
2008 | 42 | % | 46 | % | 48 | % | 49 | % | 48 | % | ||||||||||||||||||||||||||||||||||
2009 | 51 | % | 58 | % | 62 | % | 65 | % | ||||||||||||||||||||||||||||||||||||
2010 | 39 | % | 69 | % | 72 | % | ||||||||||||||||||||||||||||||||||||||
2011 | 38 | % | 54 | % | ||||||||||||||||||||||||||||||||||||||||
2012 | 33 | % |
Treaty | Earned | Loss & ALAE | ||||||||||||||||||||||||||||||
Year | Premium | Paid | Case O/S | Reported | IBNR | Ultimate | Ult. Ratio | Unpaid | ||||||||||||||||||||||||
2002 | 64,253 | 27,587 | 16 | 27,603 | 8 | 27,611 | 43.0 | % | 23 | |||||||||||||||||||||||
2003 | 66,185 | 19,374 | 3 | 19,377 | 2 | 19,379 | 29.3 | % | 5 | |||||||||||||||||||||||
2004 | 75,094 | 17,442 | 87 | 17,528 | 32 | 17,561 | 23.4 | % | 119 | |||||||||||||||||||||||
2005 | 76,794 | 47,527 | (270 | ) | 47,257 | 567 | 47,824 | 62.3 | % | 297 | ||||||||||||||||||||||
2006 | 68,055 | 29,924 | 334 | 30,259 | 150 | 30,409 | 44.7 | % | 485 | |||||||||||||||||||||||
2007 | 41,916 | 19,398 | 677 | 20,075 | 357 | 20,432 | 48.7 | % | 1,034 | |||||||||||||||||||||||
2008 | 33,155 | 15,195 | 873 | 16,068 | 307 | 16,375 | 49.4 | % | 1,180 | |||||||||||||||||||||||
2009 | 35,446 | 21,638 | 1,393 | 23,031 | 836 | 23,866 | 67.3 | % | 2,228 | |||||||||||||||||||||||
2010 | 50,836 | 29,650 | 7,099 | 36,749 | 3,543 | 40,293 | 79.3 | % | 10,643 | |||||||||||||||||||||||
2011 | 70,098 | 22,074 | 16,107 | 38,181 | 19,577 | 57,758 | 82.4 | % | 35,684 | |||||||||||||||||||||||
2012 | 58,466 | 5,422 | 13,741 | 19,163 | 24,671 | 43,834 | 75.0 | % | 38,412 | |||||||||||||||||||||||
Total | 640,299 | 255,231 | 40,060 | 295,291 | 50,050 | 345,341 | 53.9 | % | 90,110 |
-21-
December 2012 Global Loss Triangles - Reinsurance
U.S. dollars in thousands
General Casualty Reinsurance (Gross of Ceded Reinsurance)
Cumulative Paid Loss & ALAE |
||||||||||||||||||||||||||||||||||||||||||||
Treaty | Months of Development | |||||||||||||||||||||||||||||||||||||||||||
Year | 12 | 24 | 36 | 48 | 60 | 72 | 84 | 96 | 108 | 120 | 132 | |||||||||||||||||||||||||||||||||
2002 | 329 | 3,688 | 7,670 | 10,682 | 13,471 | 15,290 | 16,500 | 17,685 | 18,347 | 18,481 | 18,814 | |||||||||||||||||||||||||||||||||
2003 | 705 | 3,063 | 5,962 | 11,466 | 21,916 | 26,087 | 27,838 | 30,357 | 32,877 | 35,385 | ||||||||||||||||||||||||||||||||||
2004 | 648 | 1,088 | 6,331 | 11,850 | 21,718 | 28,466 | 37,451 | 40,561 | 44,091 | |||||||||||||||||||||||||||||||||||
2005 | 119 | 1,584 | 9,500 | 19,705 | 31,410 | 41,416 | 50,092 | 57,041 | ||||||||||||||||||||||||||||||||||||
2006 | 944 | 6,183 | 20,496 | 34,829 | 43,542 | 51,219 | 56,562 | |||||||||||||||||||||||||||||||||||||
2007 | 3 | 3,135 | 10,113 | 26,839 | 39,243 | 49,828 | ||||||||||||||||||||||||||||||||||||||
2008 | 29 | 1,468 | 13,077 | 22,515 | 34,675 | |||||||||||||||||||||||||||||||||||||||
2009 | 460 | 4,842 | 16,498 | 27,254 | ||||||||||||||||||||||||||||||||||||||||
2010 | 519 | 24,429 | 45,235 | |||||||||||||||||||||||||||||||||||||||||
2011 | 849 | 12,560 | ||||||||||||||||||||||||||||||||||||||||||
2012 | 842 | |||||||||||||||||||||||||||||||||||||||||||
Reported Loss & ALAE |
||||||||||||||||||||||||||||||||||||||||||||
Treaty | Months of Development | |||||||||||||||||||||||||||||||||||||||||||
Year | 12 | 24 | 36 | 48 | 60 | 72 | 84 | 96 | 108 | 120 | 132 | |||||||||||||||||||||||||||||||||
2002 | 346 | 5,531 | 10,970 | 18,737 | 19,011 | 19,864 | 20,694 | 19,214 | 19,906 | 19,931 | 19,860 | |||||||||||||||||||||||||||||||||
2003 | 1,588 | 8,176 | 11,853 | 21,884 | 28,983 | 29,495 | 32,262 | 33,460 | 36,363 | 37,525 | ||||||||||||||||||||||||||||||||||
2004 | 1,357 | 9,104 | 14,286 | 23,228 | 36,173 | 44,570 | 45,306 | 48,468 | 53,339 | |||||||||||||||||||||||||||||||||||
2005 | 2,055 | 11,283 | 23,806 | 34,636 | 44,890 | 51,272 | 55,714 | 63,185 | ||||||||||||||||||||||||||||||||||||
2006 | 2,682 | 20,398 | 38,266 | 51,622 | 57,314 | 64,110 | 67,040 | |||||||||||||||||||||||||||||||||||||
2007 | 1,033 | 9,706 | 34,826 | 47,229 | 58,048 | 67,933 | ||||||||||||||||||||||||||||||||||||||
2008 | 1,591 | 13,743 | 37,550 | 48,234 | 61,791 | |||||||||||||||||||||||||||||||||||||||
2009 | 1,256 | 20,078 | 37,140 | 55,604 | ||||||||||||||||||||||||||||||||||||||||
2010 | 10,615 | 43,972 | 67,172 | |||||||||||||||||||||||||||||||||||||||||
2011 | 2,869 | 23,007 | ||||||||||||||||||||||||||||||||||||||||||
2012 | 2,991 | |||||||||||||||||||||||||||||||||||||||||||
Reported Loss & ALAE Ratio to Earned Premium (excluding IBNR) |
||||||||||||||||||||||||||||||||||||||||||||
Treaty | Months of Development | |||||||||||||||||||||||||||||||||||||||||||
Year | 12 | 24 | 36 | 48 | 60 | 72 | 84 | 96 | 108 | 120 | 132 | |||||||||||||||||||||||||||||||||
2002 | 10 | % | 20 | % | 33 | % | 56 | % | 57 | % | 59 | % | 62 | % | 57 | % | 59 | % | 59 | % | 59 | % | ||||||||||||||||||||||
2003 | 7 | % | 10 | % | 12 | % | 22 | % | 29 | % | 29 | % | 32 | % | 33 | % | 36 | % | 37 | % | ||||||||||||||||||||||||
2004 | 3 | % | 8 | % | 11 | % | 19 | % | 29 | % | 36 | % | 37 | % | 40 | % | 43 | % | ||||||||||||||||||||||||||
2005 | 4 | % | 8 | % | 15 | % | 22 | % | 29 | % | 33 | % | 36 | % | 40 | % | ||||||||||||||||||||||||||||
2006 | 6 | % | 16 | % | 29 | % | 40 | % | 44 | % | 49 | % | 52 | % | ||||||||||||||||||||||||||||||
2007 | 2 | % | 7 | % | 25 | % | 33 | % | 40 | % | 47 | % | ||||||||||||||||||||||||||||||||
2008 | 4 | % | 11 | % | 29 | % | 37 | % | 47 | % | ||||||||||||||||||||||||||||||||||
2009 | 2 | % | 13 | % | 24 | % | 36 | % | ||||||||||||||||||||||||||||||||||||
2010 | 18 | % | 28 | % | 37 | % | ||||||||||||||||||||||||||||||||||||||
2011 | 5 | % | 12 | % | ||||||||||||||||||||||||||||||||||||||||
2012 | 5 | % |
Treaty | Earned | Loss & ALAE | ||||||||||||||||||||||||||||||
Year | Premium | Paid | Case O/S | Reported | IBNR | Ultimate | Ult. Ratio | Unpaid | ||||||||||||||||||||||||
2002 | 33,679 | 18,814 | 1,046 | 19,860 | 1,436 | 21,296 | 63.2 | % | 2,482 | |||||||||||||||||||||||
2003 | 100,556 | 35,385 | 2,140 | 37,525 | 6,122 | 43,646 | 43.4 | % | 8,262 | |||||||||||||||||||||||
2004 | 122,676 | 44,091 | 9,249 | 53,339 | 10,762 | 64,102 | 52.3 | % | 20,011 | |||||||||||||||||||||||
2005 | 156,623 | 57,041 | 6,144 | 63,185 | 15,419 | 78,604 | 50.2 | % | 21,563 | |||||||||||||||||||||||
2006 | 130,166 | 56,562 | 10,478 | 67,040 | 16,165 | 83,204 | 63.9 | % | 26,643 | |||||||||||||||||||||||
2007 | 143,144 | 49,828 | 18,106 | 67,933 | 31,977 | 99,910 | 69.8 | % | 50,082 | |||||||||||||||||||||||
2008 | 131,471 | 34,675 | 27,116 | 61,791 | 36,622 | 98,413 | 74.9 | % | 63,738 | |||||||||||||||||||||||
2009 | 156,152 | 27,254 | 28,350 | 55,604 | 58,019 | 113,623 | 72.8 | % | 86,370 | |||||||||||||||||||||||
2010 | 179,230 | 45,235 | 21,937 | 67,172 | 73,643 | 140,815 | 78.6 | % | 95,580 | |||||||||||||||||||||||
2011 | 185,231 | 12,560 | 10,447 | 23,007 | 111,950 | 134,956 | 72.9 | % | 122,397 | |||||||||||||||||||||||
2012 | 60,169 | 842 | 2,150 | 2,991 | 38,835 | 41,827 | 69.5 | % | 40,985 | |||||||||||||||||||||||
Total | 1,399,097 | 382,285 | 137,163 | 519,447 | 400,950 | 920,397 | 65.8 | % | 538,113 |
-22-
December 2012 Global Loss Triangles - Reinsurance
U.S. dollars in thousands
Professional Liability Lines Reinsurance (Gross of Ceded Reinsurance)
Cumulative Paid Loss & ALAE |
||||||||||||||||||||||||||||||||||||||||||||
Treaty | Months of Development | |||||||||||||||||||||||||||||||||||||||||||
Year | 12 | 24 | 36 | 48 | 60 | 72 | 84 | 96 | 108 | 120 | 132 | |||||||||||||||||||||||||||||||||
2002 | | 915 | 1,676 | 4,405 | 10,898 | 12,884 | 14,202 | 15,561 | 16,061 | 16,838 | 16,776 | |||||||||||||||||||||||||||||||||
2003 | 0 | 191 | 1,274 | 3,207 | 12,429 | 16,125 | 21,385 | 24,308 | 26,798 | 27,514 | ||||||||||||||||||||||||||||||||||
2004 | 9 | 345 | 5,373 | 10,445 | 19,634 | 24,920 | 31,103 | 32,512 | 34,241 | |||||||||||||||||||||||||||||||||||
2005 | 8 | 786 | 6,852 | 22,841 | 35,126 | 43,205 | 48,780 | 51,822 | ||||||||||||||||||||||||||||||||||||
2006 | 1 | 711 | 7,112 | 20,428 | 34,442 | 46,932 | 52,492 | |||||||||||||||||||||||||||||||||||||
2007 | 5 | 1,263 | 11,453 | 41,735 | 69,029 | 100,723 | ||||||||||||||||||||||||||||||||||||||
2008 | 37 | 2,140 | 10,455 | 25,184 | 46,029 | |||||||||||||||||||||||||||||||||||||||
2009 | 17 | 1,675 | 6,595 | 15,484 | ||||||||||||||||||||||||||||||||||||||||
2010 | 24 | 2,064 | 8,371 | |||||||||||||||||||||||||||||||||||||||||
2011 | 19 | 610 | ||||||||||||||||||||||||||||||||||||||||||
2012 | 32 | |||||||||||||||||||||||||||||||||||||||||||
Reported Loss & ALAE |
||||||||||||||||||||||||||||||||||||||||||||
Treaty | Months of Development | |||||||||||||||||||||||||||||||||||||||||||
Year | 12 | 24 | 36 | 48 | 60 | 72 | 84 | 96 | 108 | 120 | 132 | |||||||||||||||||||||||||||||||||
2002 | | 3,594 | 12,221 | 21,012 | 22,717 | 22,060 | 22,297 | 21,292 | 19,469 | 19,553 | 18,660 | |||||||||||||||||||||||||||||||||
2003 | 65 | 1,599 | 13,981 | 21,047 | 29,125 | 29,219 | 33,173 | 33,043 | 34,729 | 34,090 | ||||||||||||||||||||||||||||||||||
2004 | 819 | 7,902 | 20,205 | 33,619 | 36,122 | 35,884 | 42,934 | 41,564 | 41,758 | |||||||||||||||||||||||||||||||||||
2005 | 456 | 6,067 | 22,581 | 46,077 | 50,876 | 55,740 | 61,260 | 68,872 | ||||||||||||||||||||||||||||||||||||
2006 | 71 | 8,619 | 26,873 | 50,886 | 66,537 | 70,039 | 77,882 | |||||||||||||||||||||||||||||||||||||
2007 | 227 | 17,507 | 75,722 | 118,166 | 134,239 | 138,158 | ||||||||||||||||||||||||||||||||||||||
2008 | 2,684 | 15,190 | 38,738 | 61,121 | 78,988 | |||||||||||||||||||||||||||||||||||||||
2009 | 295 | 6,314 | 17,184 | 29,616 | ||||||||||||||||||||||||||||||||||||||||
2010 | 502 | 5,216 | 13,559 | |||||||||||||||||||||||||||||||||||||||||
2011 | 165 | 2,973 | ||||||||||||||||||||||||||||||||||||||||||
2012 | 394 | |||||||||||||||||||||||||||||||||||||||||||
Reported Loss & ALAE Ratio to Earned Premium (excluding IBNR) |
||||||||||||||||||||||||||||||||||||||||||||
Treaty | Months of Development | |||||||||||||||||||||||||||||||||||||||||||
Year | 12 | 24 | 36 | 48 | 60 | 72 | 84 | 96 | 108 | 120 | 132 | |||||||||||||||||||||||||||||||||
2002 | 0 | % | 9 | % | 26 | % | 46 | % | 49 | % | 48 | % | 48 | % | 46 | % | 42 | % | 42 | % | 40 | % | ||||||||||||||||||||||
2003 | 0 | % | 2 | % | 15 | % | 22 | % | 29 | % | 29 | % | 33 | % | 33 | % | 35 | % | 34 | % | ||||||||||||||||||||||||
2004 | 2 | % | 7 | % | 17 | % | 28 | % | 30 | % | 30 | % | 36 | % | 35 | % | 35 | % | ||||||||||||||||||||||||||
2005 | 1 | % | 3 | % | 11 | % | 22 | % | 24 | % | 27 | % | 30 | % | 33 | % | ||||||||||||||||||||||||||||
2006 | 0 | % | 5 | % | 14 | % | 26 | % | 34 | % | 36 | % | 40 | % | ||||||||||||||||||||||||||||||
2007 | 0 | % | 9 | % | 36 | % | 55 | % | 62 | % | 64 | % | ||||||||||||||||||||||||||||||||
2008 | 5 | % | 9 | % | 21 | % | 33 | % | 43 | % | ||||||||||||||||||||||||||||||||||
2009 | 1 | % | 5 | % | 13 | % | 22 | % | ||||||||||||||||||||||||||||||||||||
2010 | 2 | % | 5 | % | 13 | % | ||||||||||||||||||||||||||||||||||||||
2011 | 1 | % | 4 | % | ||||||||||||||||||||||||||||||||||||||||
2012 | 2 | % |
Treaty | Earned | Loss & ALAE | ||||||||||||||||||||||||||||||
Year | Premium | Paid | Case O/S | Reported | IBNR | Ultimate | Ult. Ratio | Unpaid | ||||||||||||||||||||||||
2002 | 46,830 | 16,776 | 1,884 | 18,660 | 2,709 | 21,369 | 45.6 | % | 4,593 | |||||||||||||||||||||||
2003 | 99,803 | 27,514 | 6,575 | 34,090 | 7,399 | 41,489 | 41.6 | % | 13,975 | |||||||||||||||||||||||
2004 | 119,141 | 34,241 | 7,517 | 41,758 | 10,163 | 51,921 | 43.6 | % | 17,679 | |||||||||||||||||||||||
2005 | 207,087 | 51,822 | 17,049 | 68,872 | 17,019 | 85,891 | 41.5 | % | 34,069 | |||||||||||||||||||||||
2006 | 194,981 | 52,492 | 25,389 | 77,882 | 25,481 | 103,363 | 53.0 | % | 50,870 | |||||||||||||||||||||||
2007 | 214,606 | 100,723 | 37,435 | 138,158 | 29,064 | 167,222 | 77.9 | % | 66,499 | |||||||||||||||||||||||
2008 | 185,107 | 46,029 | 32,958 | 78,988 | 62,678 | 141,666 | 76.5 | % | 95,636 | |||||||||||||||||||||||
2009 | 134,603 | 15,484 | 14,132 | 29,616 | 65,962 | 95,578 | 71.0 | % | 80,093 | |||||||||||||||||||||||
2010 | 108,233 | 8,371 | 5,188 | 13,559 | 60,383 | 73,942 | 68.3 | % | 65,571 | |||||||||||||||||||||||
2011 | 69,305 | 610 | 2,363 | 2,973 | 43,422 | 46,395 | 66.9 | % | 45,785 | |||||||||||||||||||||||
2012 | 23,188 | 32 | 361 | 394 | 15,287 | 15,680 | 67.6 | % | 15,648 | |||||||||||||||||||||||
Total | 1,402,885 | 354,098 | 150,852 | 504,949 | 339,566 | 844,516 | 60.2 | % | 490,418 |
-23-
December 2012 Global Loss Triangles - Reinsurance
Excluding large losses
U.S. dollars in thousands
Other Reinsurance (Gross of Ceded Reinsurance)
Cumulative Paid Loss & ALAE |
||||||||||||||||||||||||||||||||||||||||||||
Treaty | Months of Development | |||||||||||||||||||||||||||||||||||||||||||
Year | 12 | 24 | 36 | 48 | 60 | 72 | 84 | 96 | 108 | 120 | 132 | |||||||||||||||||||||||||||||||||
2002 | 52 | 1,225 | 2,576 | 3,222 | 3,687 | 4,081 | 4,191 | 4,439 | 4,466 | 4,475 | 4,484 | |||||||||||||||||||||||||||||||||
2003 | 15 | 886 | 2,373 | 3,294 | 4,452 | 4,656 | 4,602 | 4,660 | 4,728 | 4,800 | ||||||||||||||||||||||||||||||||||
2004 | 43 | 5,115 | 8,048 | 10,943 | 9,076 | 9,470 | 9,876 | 10,582 | 10,649 | |||||||||||||||||||||||||||||||||||
2005 | 278 | 3,943 | 9,184 | 7,919 | 10,600 | 12,078 | 12,797 | 12,955 | ||||||||||||||||||||||||||||||||||||
2006 | 68 | 2,821 | 5,666 | 6,934 | 7,793 | 8,329 | 8,560 | |||||||||||||||||||||||||||||||||||||
2007 | 279 | 4,098 | 7,242 | 8,936 | 10,047 | 10,686 | ||||||||||||||||||||||||||||||||||||||
2008 | 534 | 4,050 | 7,972 | 10,335 | 12,427 | |||||||||||||||||||||||||||||||||||||||
2009 | 121 | 2,196 | 4,283 | 6,338 | ||||||||||||||||||||||||||||||||||||||||
2010 | 73 | 1,222 | 3,879 | |||||||||||||||||||||||||||||||||||||||||
2011 | 2,365 | 10,645 | ||||||||||||||||||||||||||||||||||||||||||
2012 | 28,387 | |||||||||||||||||||||||||||||||||||||||||||
Reported Loss & ALAE |
||||||||||||||||||||||||||||||||||||||||||||
Treaty | Months of Development | |||||||||||||||||||||||||||||||||||||||||||
Year | 12 | 24 | 36 | 48 | 60 | 72 | 84 | 96 | 108 | 120 | 132 | |||||||||||||||||||||||||||||||||
2002 | 270 | 3,065 | 4,472 | 4,580 | 4,963 | 4,700 | 4,691 | 4,629 | 4,623 | 4,609 | 4,587 | |||||||||||||||||||||||||||||||||
2003 | 54 | 887 | 2,614 | 4,643 | 5,266 | 5,158 | 4,929 | 4,872 | 4,905 | 4,996 | ||||||||||||||||||||||||||||||||||
2004 | 134 | 8,197 | 9,085 | 11,931 | 10,545 | 9,696 | 9,826 | 9,694 | 9,641 | |||||||||||||||||||||||||||||||||||
2005 | 304 | 11,551 | 11,472 | 10,788 | 11,522 | 12,312 | 14,221 | 14,149 | ||||||||||||||||||||||||||||||||||||
2006 | 69 | 6,022 | 7,949 | 8,880 | 9,035 | 9,226 | 9,256 | |||||||||||||||||||||||||||||||||||||
2007 | 841 | 7,432 | 9,808 | 10,708 | 10,667 | 10,645 | ||||||||||||||||||||||||||||||||||||||
2008 | 1,072 | 9,821 | 12,870 | 11,804 | 12,130 | |||||||||||||||||||||||||||||||||||||||
2009 | 326 | 3,799 | 6,911 | 7,929 | ||||||||||||||||||||||||||||||||||||||||
2010 | 237 | 3,781 | 5,245 | |||||||||||||||||||||||||||||||||||||||||
2011 | 4,691 | 17,305 | ||||||||||||||||||||||||||||||||||||||||||
2012 | 31,773 | |||||||||||||||||||||||||||||||||||||||||||
Reported Loss & ALAE Ratio to Earned Premium (excluding IBNR) |
||||||||||||||||||||||||||||||||||||||||||||
Treaty | Months of Development | |||||||||||||||||||||||||||||||||||||||||||
Year | 12 | 24 | 36 | 48 | 60 | 72 | 84 | 96 | 108 | 120 | 132 | |||||||||||||||||||||||||||||||||
2002 | 22 | % | 28 | % | 39 | % | 38 | % | 41 | % | 39 | % | 39 | % | 38 | % | 38 | % | 38 | % | 38 | % | ||||||||||||||||||||||
2003 | 2 | % | 7 | % | 13 | % | 23 | % | 26 | % | 26 | % | 25 | % | 24 | % | 24 | % | 25 | % | ||||||||||||||||||||||||
2004 | 1 | % | 26 | % | 24 | % | 32 | % | 28 | % | 25 | % | 26 | % | 25 | % | 25 | % | ||||||||||||||||||||||||||
2005 | 3 | % | 33 | % | 28 | % | 26 | % | 28 | % | 30 | % | 35 | % | 34 | % | ||||||||||||||||||||||||||||
2006 | 0 | % | 20 | % | 26 | % | 29 | % | 29 | % | 30 | % | 30 | % | ||||||||||||||||||||||||||||||
2007 | 4 | % | 20 | % | 25 | % | 27 | % | 27 | % | 27 | % | ||||||||||||||||||||||||||||||||
2008 | 5 | % | 30 | % | 38 | % | 35 | % | 36 | % | ||||||||||||||||||||||||||||||||||
2009 | 2 | % | 12 | % | 21 | % | 24 | % | ||||||||||||||||||||||||||||||||||||
2010 | 1 | % | 10 | % | 13 | % | ||||||||||||||||||||||||||||||||||||||
2011 | 10 | % | 24 | % | ||||||||||||||||||||||||||||||||||||||||
2012 | 29 | % |
Treaty | Earned | Loss & ALAE | ||||||||||||||||||||||||||||||
Year | Premium | Paid | Case O/S | Reported | IBNR | Ultimate | Ult. Ratio | Unpaid | ||||||||||||||||||||||||
2002 | 12,192 | 4,484 | 103 | 4,587 | 116 | 4,704 | 38.6 | % | 219 | |||||||||||||||||||||||
2003 | 20,108 | 4,800 | 196 | 4,996 | 182 | 5,179 | 25.8 | % | 378 | |||||||||||||||||||||||
2004 | 38,404 | 10,649 | (1,008 | ) | 9,641 | 385 | 10,027 | 26.1 | % | (622 | ) | |||||||||||||||||||||
2005 | 41,180 | 12,955 | 1,194 | 14,149 | 778 | 14,927 | 36.2 | % | 1,972 | |||||||||||||||||||||||
2006 | 30,959 | 8,560 | 695 | 9,256 | 739 | 9,995 | 32.3 | % | 1,435 | |||||||||||||||||||||||
2007 | 38,901 | 10,686 | (41 | ) | 10,645 | 913 | 11,558 | 29.7 | % | 872 | ||||||||||||||||||||||
2008 | 33,848 | 12,427 | (298 | ) | 12,130 | 1,877 | 14,007 | 41.4 | % | 1,579 | ||||||||||||||||||||||
2009 | 32,532 | 6,338 | 1,591 | 7,929 | 943 | 8,872 | 27.3 | % | 2,534 | |||||||||||||||||||||||
2010 | 38,918 | 3,879 | 1,367 | 5,245 | 2,918 | 8,164 | 21.0 | % | 4,285 | |||||||||||||||||||||||
2011 | 71,527 | 10,645 | 6,660 | 17,305 | 9,920 | 27,225 | 38.1 | % | 16,580 | |||||||||||||||||||||||
2012 | 110,703 | 28,387 | 3,387 | 31,773 | 70,299 | 102,072 | 92.2 | % | 73,685 | |||||||||||||||||||||||
Total | 469,273 | 113,810 | 13,846 | 127,657 | 89,072 | 216,729 | 46.2 | % | 102,918 |
-24-
December 2012 Global Loss Triangles - Reinsurance
U.S. dollars in thousands
Property Catastrophe Reinsurance (Net of Ceded Reinsurance)
Cumulative Paid Loss & ALAE |
||||||||||||||||||||||||||||||||||||||||||||
Treaty | Months of Development | |||||||||||||||||||||||||||||||||||||||||||
Year | 12 | 24 | 36 | 48 | 60 | 72 | 84 | 96 | 108 | 120 | 132 | |||||||||||||||||||||||||||||||||
2002 | 101 | 2,131 | 4,161 | 4,194 | 4,310 | 4,310 | 4,336 | 4,336 | 4,336 | 4,336 | 4,336 | |||||||||||||||||||||||||||||||||
2003 | 3,977 | 6,251 | 6,882 | 6,831 | 6,843 | 7,235 | 7,237 | 7,237 | 7,237 | 7,237 | ||||||||||||||||||||||||||||||||||
2004 | 17,379 | 47,475 | 55,350 | 57,786 | 58,813 | 59,457 | 59,741 | 60,097 | 60,525 | |||||||||||||||||||||||||||||||||||
2005 | 35,255 | 99,502 | 106,468 | 111,778 | 113,039 | 112,992 | 113,330 | 113,657 | ||||||||||||||||||||||||||||||||||||
2006 | 710 | 8,912 | 9,671 | 9,829 | 9,903 | 9,917 | 9,917 | |||||||||||||||||||||||||||||||||||||
2007 | 3,999 | 12,770 | 12,511 | 12,767 | 12,561 | 12,603 | ||||||||||||||||||||||||||||||||||||||
2008 | 15,798 | 26,979 | 30,619 | 32,007 | 33,204 | |||||||||||||||||||||||||||||||||||||||
2009 | 269 | 905 | 2,977 | 4,139 | ||||||||||||||||||||||||||||||||||||||||
2010 | 3,798 | 54,580 | 76,523 | |||||||||||||||||||||||||||||||||||||||||
2011 | 22,254 | 64,133 | ||||||||||||||||||||||||||||||||||||||||||
2012 | 26,282 | |||||||||||||||||||||||||||||||||||||||||||
Reported Loss & ALAE |
||||||||||||||||||||||||||||||||||||||||||||
Treaty | Months of Development | |||||||||||||||||||||||||||||||||||||||||||
Year | 12 | 24 | 36 | 48 | 60 | 72 | 84 | 96 | 108 | 120 | 132 | |||||||||||||||||||||||||||||||||
2002 | 3,041 | 5,163 | 4,370 | 4,390 | 4,372 | 4,371 | 4,356 | 4,356 | 4,336 | 4,336 | 4,336 | |||||||||||||||||||||||||||||||||
2003 | 6,172 | 7,561 | 7,009 | 6,920 | 6,939 | 7,235 | 7,237 | 7,237 | 7,237 | 7,237 | ||||||||||||||||||||||||||||||||||
2004 | 33,642 | 56,808 | 59,396 | 60,325 | 60,267 | 60,490 | 60,141 | 60,355 | 60,613 | |||||||||||||||||||||||||||||||||||
2005 | 130,142 | 128,692 | 116,254 | 116,946 | 116,572 | 115,780 | 115,715 | 115,648 | ||||||||||||||||||||||||||||||||||||
2006 | 3,275 | 9,580 | 9,885 | 10,172 | 10,131 | 10,136 | 10,131 | |||||||||||||||||||||||||||||||||||||
2007 | 17,051 | 15,664 | 13,584 | 13,412 | 12,847 | 12,778 | ||||||||||||||||||||||||||||||||||||||
2008 | 31,318 | 32,595 | 33,106 | 33,901 | 33,952 | |||||||||||||||||||||||||||||||||||||||
2009 | 2,557 | 5,613 | 5,246 | 5,281 | ||||||||||||||||||||||||||||||||||||||||
2010 | 32,490 | 86,547 | 103,457 | |||||||||||||||||||||||||||||||||||||||||
2011 | 89,719 | 123,934 | ||||||||||||||||||||||||||||||||||||||||||
2012 | 55,315 | |||||||||||||||||||||||||||||||||||||||||||
Reported Loss & ALAE Ratio to Earned Premium (excluding IBNR) |
||||||||||||||||||||||||||||||||||||||||||||
Treaty | Months of Development | |||||||||||||||||||||||||||||||||||||||||||
Year | 12 | 24 | 36 | 48 | 60 | 72 | 84 | 96 | 108 | 120 | 132 | |||||||||||||||||||||||||||||||||
2002 | 12 | % | 15 | % | 13 | % | 13 | % | 13 | % | 13 | % | 13 | % | 13 | % | 13 | % | 13 | % | 13 | % | ||||||||||||||||||||||
2003 | 13 | % | 13 | % | 12 | % | 12 | % | 12 | % | 12 | % | 12 | % | 12 | % | 12 | % | 12 | % | ||||||||||||||||||||||||
2004 | 72 | % | 98 | % | 102 | % | 104 | % | 104 | % | 104 | % | 103 | % | 104 | % | 104 | % | ||||||||||||||||||||||||||
2005 | 220 | % | 184 | % | 166 | % | 167 | % | 167 | % | 166 | % | 166 | % | 165 | % | ||||||||||||||||||||||||||||
2006 | 6 | % | 15 | % | 15 | % | 15 | % | 15 | % | 15 | % | 15 | % | ||||||||||||||||||||||||||||||
2007 | 25 | % | 19 | % | 16 | % | 16 | % | 15 | % | 15 | % | ||||||||||||||||||||||||||||||||
2008 | 64 | % | 49 | % | 50 | % | 51 | % | 51 | % | ||||||||||||||||||||||||||||||||||
2009 | 4 | % | 7 | % | 6 | % | 6 | % | ||||||||||||||||||||||||||||||||||||
2010 | 31 | % | 65 | % | 76 | % | ||||||||||||||||||||||||||||||||||||||
2011 | 64 | % | 63 | % | ||||||||||||||||||||||||||||||||||||||||
2012 | 31 | % |
Treaty | Earned | Loss & ALAE | ||||||||||||||||||||||||||||||
Year | Premium | Paid | Case O/S | Reported | IBNR | Ultimate | Ult. Ratio | Unpaid | ||||||||||||||||||||||||
2002 | 33,846 | 4,336 | 0 | 4,336 | | 4,336 | 12.8 | % | 0 | |||||||||||||||||||||||
2003 | 58,868 | 7,237 | 0 | 7,237 | | 7,237 | 12.3 | % | 0 | |||||||||||||||||||||||
2004 | 58,128 | 60,525 | 87 | 60,613 | (387 | ) | 60,226 | 103.6 | % | (299 | ) | |||||||||||||||||||||
2005 | 69,898 | 113,657 | 1,991 | 115,648 | 161 | 115,809 | 165.7 | % | 2,151 | |||||||||||||||||||||||
2006 | 65,966 | 9,917 | 213 | 10,131 | 21 | 10,152 | 15.4 | % | 234 | |||||||||||||||||||||||
2007 | 83,608 | 12,603 | 175 | 12,778 | 8 | 12,787 | 15.3 | % | 183 | |||||||||||||||||||||||
2008 | 66,833 | 33,204 | 748 | 33,952 | 239 | 34,191 | 51.2 | % | 987 | |||||||||||||||||||||||
2009 | 83,184 | 4,139 | 1,142 | 5,281 | 290 | 5,571 | 6.7 | % | 1,432 | |||||||||||||||||||||||
2010 | 136,279 | 76,523 | 26,934 | 103,457 | 6,894 | 110,351 | 81.0 | % | 33,829 | |||||||||||||||||||||||
2011 | 195,280 | 64,133 | 59,801 | 123,934 | 18,825 | 142,759 | 73.1 | % | 78,626 | |||||||||||||||||||||||
2012 | 175,908 | 26,282 | 29,033 | 55,315 | 56,458 | 111,772 | 63.5 | % | 85,490 | |||||||||||||||||||||||
Total | 1,027,798 | 412,558 | 120,125 | 532,682 | 82,509 | 615,191 | 59.9 | % | 202,634 |
-25-
December 2012 Global Loss Triangles - Reinsurance
Excluding large losses
U.S. dollars in thousands
Property Other Reinsurance (Net of Ceded Reinsurance)
Cumulative Paid Loss & ALAE |
||||||||||||||||||||||||||||||||||||||||||||
Treaty | Months of Development | |||||||||||||||||||||||||||||||||||||||||||
Year | 12 | 24 | 36 | 48 | 60 | 72 | 84 | 96 | 108 | 120 | 132 | |||||||||||||||||||||||||||||||||
2002 | 1,994 | 14,146 | 21,254 | 24,533 | 26,202 | 27,034 | 27,241 | 27,550 | 27,573 | 27,588 | 27,587 | |||||||||||||||||||||||||||||||||
2003 | 1,794 | 9,960 | 13,446 | 16,264 | 17,931 | 18,421 | 18,892 | 19,262 | 19,340 | 19,374 | ||||||||||||||||||||||||||||||||||
2004 | 949 | 7,461 | 11,995 | 14,439 | 15,598 | 17,294 | 17,210 | 17,405 | 17,442 | |||||||||||||||||||||||||||||||||||
2005 | 5,111 | 23,166 | 29,796 | 31,025 | 42,623 | 46,347 | 46,594 | 47,527 | ||||||||||||||||||||||||||||||||||||
2006 | 3,793 | 17,679 | 23,689 | 27,465 | 29,525 | 29,862 | 29,924 | |||||||||||||||||||||||||||||||||||||
2007 | 717 | 8,668 | 12,738 | 14,733 | 15,753 | 19,398 | ||||||||||||||||||||||||||||||||||||||
2008 | 3,920 | 10,738 | 12,479 | 14,966 | 15,195 | |||||||||||||||||||||||||||||||||||||||
2009 | 4,664 | 12,112 | 18,692 | 21,638 | ||||||||||||||||||||||||||||||||||||||||
2010 | 5,835 | 20,289 | 29,650 | |||||||||||||||||||||||||||||||||||||||||
2011 | 4,003 | 22,074 | ||||||||||||||||||||||||||||||||||||||||||
2012 | 5,422 | |||||||||||||||||||||||||||||||||||||||||||
Reported Loss & ALAE |
||||||||||||||||||||||||||||||||||||||||||||
Treaty | Months of Development | |||||||||||||||||||||||||||||||||||||||||||
Year | 12 | 24 | 36 | 48 | 60 | 72 | 84 | 96 | 108 | 120 | 132 | |||||||||||||||||||||||||||||||||
2002 | 3,082 | 17,552 | 26,185 | 27,026 | 27,589 | 27,756 | 27,588 | 27,715 | 27,606 | 27,628 | 27,603 | |||||||||||||||||||||||||||||||||
2003 | 6,313 | 14,931 | 17,064 | 19,609 | 19,904 | 19,931 | 20,437 | 19,891 | 19,427 | 19,377 | ||||||||||||||||||||||||||||||||||
2004 | 7,729 | 9,571 | 14,654 | 16,236 | 16,650 | 17,180 | 17,493 | 17,538 | 17,528 | |||||||||||||||||||||||||||||||||||
2005 | 6,675 | 33,802 | 43,645 | 45,360 | 45,571 | 46,163 | 46,136 | 47,257 | ||||||||||||||||||||||||||||||||||||
2006 | 9,307 | 23,794 | 30,449 | 30,525 | 30,085 | 30,377 | 30,259 | |||||||||||||||||||||||||||||||||||||
2007 | 3,360 | 23,153 | 24,853 | 23,927 | 23,660 | 20,075 | ||||||||||||||||||||||||||||||||||||||
2008 | 9,627 | 15,156 | 15,746 | 16,123 | 16,068 | |||||||||||||||||||||||||||||||||||||||
2009 | 11,574 | 20,126 | 21,982 | 23,031 | ||||||||||||||||||||||||||||||||||||||||
2010 | 13,219 | 34,080 | 36,749 | |||||||||||||||||||||||||||||||||||||||||
2011 | 16,736 | 38,181 | ||||||||||||||||||||||||||||||||||||||||||
2012 | 19,163 | |||||||||||||||||||||||||||||||||||||||||||
Reported Loss & ALAE Ratio to Earned Premium (excluding IBNR) |
||||||||||||||||||||||||||||||||||||||||||||
Treaty | Months of Development | |||||||||||||||||||||||||||||||||||||||||||
Year | 12 | 24 | 36 | 48 | 60 | 72 | 84 | 96 | 108 | 120 | 132 | |||||||||||||||||||||||||||||||||
2002 | 17 | % | 28 | % | 41 | % | 42 | % | 43 | % | 43 | % | 43 | % | 43 | % | 43 | % | 43 | % | 43 | % | ||||||||||||||||||||||
2003 | 19 | % | 22 | % | 24 | % | 28 | % | 29 | % | 30 | % | 31 | % | 30 | % | 29 | % | 29 | % | ||||||||||||||||||||||||
2004 | 16 | % | 13 | % | 20 | % | 22 | % | 22 | % | 23 | % | 23 | % | 23 | % | 23 | % | ||||||||||||||||||||||||||
2005 | 16 | % | 44 | % | 59 | % | 61 | % | 61 | % | 62 | % | 62 | % | 64 | % | ||||||||||||||||||||||||||||
2006 | 20 | % | 35 | % | 45 | % | 45 | % | 44 | % | 45 | % | 45 | % | ||||||||||||||||||||||||||||||
2007 | 14 | % | 57 | % | 60 | % | 57 | % | 56 | % | 48 | % | ||||||||||||||||||||||||||||||||
2008 | 44 | % | 48 | % | 50 | % | 51 | % | 50 | % | ||||||||||||||||||||||||||||||||||
2009 | 51 | % | 58 | % | 62 | % | 65 | % | ||||||||||||||||||||||||||||||||||||
2010 | 39 | % | 69 | % | 72 | % | ||||||||||||||||||||||||||||||||||||||
2011 | 38 | % | 54 | % | ||||||||||||||||||||||||||||||||||||||||
2012 | 34 | % |
Treaty | Earned | Loss & ALAE | ||||||||||||||||||||||||||||||
Year | Premium | Paid | Case O/S | Reported | IBNR | Ultimate | Ult. Ratio | Unpaid | ||||||||||||||||||||||||
2002 | 64,253 | 27,587 | 16 | 27,603 | 8 | 27,611 | 43.0 | % | 23 | |||||||||||||||||||||||
2003 | 66,185 | 19,374 | 3 | 19,377 | 2 | 19,379 | 29.3 | % | 5 | |||||||||||||||||||||||
2004 | 75,094 | 17,442 | 87 | 17,528 | 32 | 17,561 | 23.4 | % | 119 | |||||||||||||||||||||||
2005 | 74,334 | 47,527 | (270 | ) | 47,257 | 567 | 47,824 | 64.3 | % | 297 | ||||||||||||||||||||||
2006 | 67,629 | 29,924 | 334 | 30,259 | 150 | 30,409 | 45.0 | % | 485 | |||||||||||||||||||||||
2007 | 41,916 | 19,398 | 677 | 20,075 | 357 | 20,432 | 48.7 | % | 1,034 | |||||||||||||||||||||||
2008 | 31,822 | 15,195 | 873 | 16,068 | 307 | 16,375 | 51.5 | % | 1,180 | |||||||||||||||||||||||
2009 | 35,446 | 21,638 | 1,393 | 23,031 | 836 | 23,866 | 67.3 | % | 2,228 | |||||||||||||||||||||||
2010 | 50,836 | 29,650 | 7,099 | 36,749 | 3,543 | 40,293 | 79.3 | % | 10,643 | |||||||||||||||||||||||
2011 | 70,098 | 22,074 | 16,107 | 38,181 | 19,577 | 57,758 | 82.4 | % | 35,684 | |||||||||||||||||||||||
2012 | 56,141 | 5,422 | 13,741 | 19,163 | 23,159 | 42,322 | 75.4 | % | 36,900 | |||||||||||||||||||||||
Total | 633,755 | 255,231 | 40,060 | 295,291 | 48,538 | 343,830 | 54.3 | % | 88,598 |
-26-
December 2012 Global Loss Triangles - Reinsurance
U.S. dollars in thousands
General Casualty Reinsurance (Net of Ceded Reinsurance)
Cumulative Paid Loss & ALAE |
||||||||||||||||||||||||||||||||||||||||||||
Treaty | Months of Development | |||||||||||||||||||||||||||||||||||||||||||
Year | 12 | 24 | 36 | 48 | 60 | 72 | 84 | 96 | 108 | 120 | 132 | |||||||||||||||||||||||||||||||||
2002 | 329 | 3,688 | 7,670 | 10,682 | 13,471 | 15,290 | 16,500 | 17,685 | 18,347 | 18,481 | 18,814 | |||||||||||||||||||||||||||||||||
2003 | 705 | 3,063 | 5,962 | 11,466 | 21,916 | 26,087 | 27,838 | 30,357 | 32,877 | 35,385 | ||||||||||||||||||||||||||||||||||
2004 | 648 | 1,088 | 6,331 | 11,850 | 21,718 | 28,466 | 37,451 | 40,561 | 44,091 | |||||||||||||||||||||||||||||||||||
2005 | 119 | 1,584 | 9,500 | 19,705 | 31,410 | 41,416 | 50,092 | 57,041 | ||||||||||||||||||||||||||||||||||||
2006 | 944 | 6,183 | 20,496 | 34,829 | 43,542 | 51,219 | 56,562 | |||||||||||||||||||||||||||||||||||||
2007 | 3 | 3,135 | 10,113 | 26,839 | 39,243 | 49,828 | ||||||||||||||||||||||||||||||||||||||
2008 | 29 | 1,468 | 13,077 | 22,515 | 34,675 | |||||||||||||||||||||||||||||||||||||||
2009 | 460 | 4,842 | 16,498 | 27,254 | ||||||||||||||||||||||||||||||||||||||||
2010 | 519 | 24,429 | 45,235 | |||||||||||||||||||||||||||||||||||||||||
2011 | 849 | 12,560 | ||||||||||||||||||||||||||||||||||||||||||
2012 | 842 | |||||||||||||||||||||||||||||||||||||||||||
Reported Loss & ALAE |
||||||||||||||||||||||||||||||||||||||||||||
Treaty | Months of Development | |||||||||||||||||||||||||||||||||||||||||||
Year | 12 | 24 | 36 | 48 | 60 | 72 | 84 | 96 | 108 | 120 | 132 | |||||||||||||||||||||||||||||||||
2002 | 346 | 5,531 | 10,970 | 18,737 | 19,011 | 19,864 | 20,694 | 19,214 | 19,906 | 19,931 | 19,860 | |||||||||||||||||||||||||||||||||
2003 | 1,588 | 8,176 | 11,853 | 21,884 | 28,983 | 29,495 | 32,262 | 33,460 | 36,363 | 37,525 | ||||||||||||||||||||||||||||||||||
2004 | 1,357 | 9,104 | 14,286 | 23,228 | 36,173 | 44,570 | 45,306 | 48,468 | 53,339 | |||||||||||||||||||||||||||||||||||
2005 | 2,055 | 11,283 | 23,806 | 34,636 | 44,890 | 51,272 | 55,714 | 63,185 | ||||||||||||||||||||||||||||||||||||
2006 | 2,682 | 20,398 | 38,266 | 51,622 | 57,314 | 64,110 | 67,040 | |||||||||||||||||||||||||||||||||||||
2007 | 1,033 | 9,706 | 34,826 | 47,229 | 58,048 | 67,933 | ||||||||||||||||||||||||||||||||||||||
2008 | 1,591 | 13,743 | 37,550 | 48,234 | 61,791 | |||||||||||||||||||||||||||||||||||||||
2009 | 1,256 | 20,078 | 37,140 | 55,604 | ||||||||||||||||||||||||||||||||||||||||
2010 | 10,615 | 43,972 | 67,172 | |||||||||||||||||||||||||||||||||||||||||
2011 | 2,869 | 23,007 | ||||||||||||||||||||||||||||||||||||||||||
2012 | 2,991 | |||||||||||||||||||||||||||||||||||||||||||
Reported Loss & ALAE Ratio to Earned Premium (excluding IBNR) |
||||||||||||||||||||||||||||||||||||||||||||
Treaty | Months of Development | |||||||||||||||||||||||||||||||||||||||||||
Year | 12 | 24 | 36 | 48 | 60 | 72 | 84 | 96 | 108 | 120 | 132 | |||||||||||||||||||||||||||||||||
2002 | 10 | % | 20 | % | 33 | % | 56 | % | 57 | % | 59 | % | 62 | % | 57 | % | 59 | % | 59 | % | 59 | % | ||||||||||||||||||||||
2003 | 7 | % | 10 | % | 12 | % | 22 | % | 29 | % | 29 | % | 32 | % | 33 | % | 36 | % | 37 | % | ||||||||||||||||||||||||
2004 | 3 | % | 8 | % | 11 | % | 19 | % | 29 | % | 36 | % | 37 | % | 40 | % | 43 | % | ||||||||||||||||||||||||||
2005 | 4 | % | 8 | % | 15 | % | 22 | % | 29 | % | 33 | % | 36 | % | 40 | % | ||||||||||||||||||||||||||||
2006 | 6 | % | 16 | % | 29 | % | 40 | % | 44 | % | 49 | % | 52 | % | ||||||||||||||||||||||||||||||
2007 | 2 | % | 7 | % | 25 | % | 33 | % | 41 | % | 48 | % | ||||||||||||||||||||||||||||||||
2008 | 4 | % | 11 | % | 29 | % | 37 | % | 47 | % | ||||||||||||||||||||||||||||||||||
2009 | 2 | % | 13 | % | 24 | % | 36 | % | ||||||||||||||||||||||||||||||||||||
2010 | 18 | % | 28 | % | 38 | % | ||||||||||||||||||||||||||||||||||||||
2011 | 5 | % | 12 | % | ||||||||||||||||||||||||||||||||||||||||
2012 | 5 | % |
Treaty | Earned | Loss & ALAE | ||||||||||||||||||||||||||||||
Year | Premium | Paid | Case O/S | Reported | IBNR | Ultimate | Ult. Ratio | Unpaid | ||||||||||||||||||||||||
2002 | 33,679 | 18,814 | 1,046 | 19,860 | 1,436 | 21,296 | 63.2 | % | 2,482 | |||||||||||||||||||||||
2003 | 100,556 | 35,385 | 2,140 | 37,525 | 6,122 | 43,646 | 43.4 | % | 8,262 | |||||||||||||||||||||||
2004 | 122,676 | 44,091 | 9,249 | 53,339 | 10,762 | 64,102 | 52.3 | % | 20,011 | |||||||||||||||||||||||
2005 | 156,395 | 57,041 | 6,144 | 63,185 | 15,419 | 78,604 | 50.3 | % | 21,563 | |||||||||||||||||||||||
2006 | 129,986 | 56,562 | 10,478 | 67,040 | 16,165 | 83,204 | 64.0 | % | 26,643 | |||||||||||||||||||||||
2007 | 142,884 | 49,828 | 18,106 | 67,933 | 31,977 | 99,910 | 69.9 | % | 50,082 | |||||||||||||||||||||||
2008 | 131,189 | 34,675 | 27,116 | 61,791 | 36,622 | 98,413 | 75.0 | % | 63,738 | |||||||||||||||||||||||
2009 | 155,822 | 27,254 | 28,350 | 55,604 | 58,019 | 113,623 | 72.9 | % | 86,370 | |||||||||||||||||||||||
2010 | 178,705 | 45,235 | 21,937 | 67,172 | 73,643 | 140,815 | 78.8 | % | 95,580 | |||||||||||||||||||||||
2011 | 185,231 | 12,560 | 10,447 | 23,007 | 111,950 | 134,956 | 72.9 | % | 122,397 | |||||||||||||||||||||||
2012 | 60,169 | 842 | 2,150 | 2,991 | 38,835 | 41,827 | 69.5 | % | 40,985 | |||||||||||||||||||||||
Total | 1,397,291 | 382,285 | 137,163 | 519,447 | 400,950 | 920,397 | 65.9 | % | 538,113 |
-27-
December 2012 Global Loss Triangles - Reinsurance
U.S. dollars in thousands
Professional Liability Lines Reinsurance (Net of Ceded Reinsurance)
Cumulative Paid Loss & ALAE |
||||||||||||||||||||||||||||||||||||||||||||
Treaty | Months of Development | |||||||||||||||||||||||||||||||||||||||||||
Year | 12 | 24 | 36 | 48 | 60 | 72 | 84 | 96 | 108 | 120 | 132 | |||||||||||||||||||||||||||||||||
2002 | | 915 | 1,676 | 4,405 | 10,898 | 12,884 | 14,202 | 15,561 | 16,061 | 16,838 | 16,776 | |||||||||||||||||||||||||||||||||
2003 | 0 | 191 | 1,274 | 3,207 | 12,429 | 16,125 | 21,385 | 24,308 | 26,798 | 27,514 | ||||||||||||||||||||||||||||||||||
2004 | 9 | 345 | 5,373 | 10,445 | 19,634 | 24,920 | 31,103 | 32,512 | 34,241 | |||||||||||||||||||||||||||||||||||
2005 | 8 | 786 | 6,852 | 22,841 | 35,126 | 43,205 | 48,780 | 51,822 | ||||||||||||||||||||||||||||||||||||
2006 | 1 | 711 | 7,112 | 20,428 | 34,442 | 46,932 | 52,492 | |||||||||||||||||||||||||||||||||||||
2007 | 5 | 1,263 | 11,453 | 41,735 | 69,029 | 100,723 | ||||||||||||||||||||||||||||||||||||||
2008 | 37 | 2,140 | 10,455 | 25,184 | 46,029 | |||||||||||||||||||||||||||||||||||||||
2009 | 17 | 1,675 | 6,595 | 15,484 | ||||||||||||||||||||||||||||||||||||||||
2010 | 24 | 2,064 | 8,371 | |||||||||||||||||||||||||||||||||||||||||
2011 | 19 | 610 | ||||||||||||||||||||||||||||||||||||||||||
2012 | 32 | |||||||||||||||||||||||||||||||||||||||||||
Reported Loss & ALAE |
||||||||||||||||||||||||||||||||||||||||||||
Treaty | Months of Development | |||||||||||||||||||||||||||||||||||||||||||
Year | 12 | 24 | 36 | 48 | 60 | 72 | 84 | 96 | 108 | 120 | 132 | |||||||||||||||||||||||||||||||||
2002 | | 3,594 | 12,221 | 21,012 | 22,717 | 22,060 | 22,297 | 21,292 | 19,469 | 19,553 | 18,660 | |||||||||||||||||||||||||||||||||
2003 | 65 | 1,599 | 13,981 | 21,047 | 29,125 | 29,219 | 33,173 | 33,043 | 34,729 | 34,090 | ||||||||||||||||||||||||||||||||||
2004 | 819 | 7,902 | 20,205 | 33,619 | 36,122 | 35,884 | 42,934 | 41,564 | 41,758 | |||||||||||||||||||||||||||||||||||
2005 | 456 | 6,067 | 22,581 | 46,077 | 50,876 | 55,740 | 61,260 | 68,872 | ||||||||||||||||||||||||||||||||||||
2006 | 71 | 8,619 | 26,873 | 50,886 | 66,537 | 70,039 | 77,882 | |||||||||||||||||||||||||||||||||||||
2007 | 227 | 17,507 | 75,722 | 118,166 | 134,239 | 138,158 | ||||||||||||||||||||||||||||||||||||||
2008 | 2,684 | 15,190 | 38,738 | 61,121 | 78,988 | |||||||||||||||||||||||||||||||||||||||
2009 | 295 | 6,314 | 17,184 | 29,616 | ||||||||||||||||||||||||||||||||||||||||
2010 | 502 | 5,216 | 13,559 | |||||||||||||||||||||||||||||||||||||||||
2011 | 165 | 2,973 | ||||||||||||||||||||||||||||||||||||||||||
2012 | 394 | |||||||||||||||||||||||||||||||||||||||||||
Reported Loss & ALAE Ratio to Earned Premium (excluding IBNR) |
||||||||||||||||||||||||||||||||||||||||||||
Treaty | Months of Development | |||||||||||||||||||||||||||||||||||||||||||
Year | 12 | 24 | 36 | 48 | 60 | 72 | 84 | 96 | 108 | 120 | 132 | |||||||||||||||||||||||||||||||||
2002 | 0 | % | 9 | % | 26 | % | 46 | % | 49 | % | 48 | % | 48 | % | 46 | % | 42 | % | 42 | % | 40 | % | ||||||||||||||||||||||
2003 | 0 | % | 2 | % | 15 | % | 22 | % | 29 | % | 29 | % | 33 | % | 33 | % | 35 | % | 34 | % | ||||||||||||||||||||||||
2004 | 2 | % | 7 | % | 17 | % | 28 | % | 30 | % | 30 | % | 36 | % | 35 | % | 35 | % | ||||||||||||||||||||||||||
2005 | 1 | % | 3 | % | 11 | % | 22 | % | 24 | % | 27 | % | 30 | % | 33 | % | ||||||||||||||||||||||||||||
2006 | 0 | % | 5 | % | 14 | % | 26 | % | 34 | % | 36 | % | 40 | % | ||||||||||||||||||||||||||||||
2007 | 0 | % | 9 | % | 36 | % | 55 | % | 62 | % | 64 | % | ||||||||||||||||||||||||||||||||
2008 | 5 | % | 10 | % | 21 | % | 33 | % | 43 | % | ||||||||||||||||||||||||||||||||||
2009 | 1 | % | 5 | % | 13 | % | 22 | % | ||||||||||||||||||||||||||||||||||||
2010 | 2 | % | 5 | % | 13 | % | ||||||||||||||||||||||||||||||||||||||
2011 | 1 | % | 4 | % | ||||||||||||||||||||||||||||||||||||||||
2012 | 2 | % |
Treaty | Earned | Loss & ALAE | ||||||||||||||||||||||||||||||
Year | Premium | Paid | Case O/S | Reported | IBNR | Ultimate | Ult. Ratio | Unpaid | ||||||||||||||||||||||||
2002 | 46,830 | 16,776 | 1,884 | 18,660 | 2,709 | 21,369 | 45.6 | % | 4,593 | |||||||||||||||||||||||
2003 | 99,803 | 27,514 | 6,575 | 34,090 | 7,399 | 41,489 | 41.6 | % | 13,975 | |||||||||||||||||||||||
2004 | 119,141 | 34,241 | 7,517 | 41,758 | 10,163 | 51,921 | 43.6 | % | 17,679 | |||||||||||||||||||||||
2005 | 207,087 | 51,822 | 17,049 | 68,872 | 17,019 | 85,891 | 41.5 | % | 34,069 | |||||||||||||||||||||||
2006 | 194,981 | 52,492 | 25,389 | 77,882 | 25,481 | 103,363 | 53.0 | % | 50,870 | |||||||||||||||||||||||
2007 | 214,606 | 100,723 | 37,435 | 138,158 | 29,064 | 167,222 | 77.9 | % | 66,499 | |||||||||||||||||||||||
2008 | 184,333 | 46,029 | 32,958 | 78,988 | 62,678 | 141,666 | 76.9 | % | 95,636 | |||||||||||||||||||||||
2009 | 134,603 | 15,484 | 14,132 | 29,616 | 65,962 | 95,578 | 71.0 | % | 80,093 | |||||||||||||||||||||||
2010 | 108,233 | 8,371 | 5,188 | 13,559 | 60,383 | 73,942 | 68.3 | % | 65,571 | |||||||||||||||||||||||
2011 | 69,305 | 610 | 2,363 | 2,973 | 43,422 | 46,395 | 66.9 | % | 45,785 | |||||||||||||||||||||||
2012 | 23,188 | 32 | 361 | 394 | 15,287 | 15,680 | 67.6 | % | 15,648 | |||||||||||||||||||||||
Total | 1,402,112 | 354,098 | 150,852 | 504,949 | 339,566 | 844,516 | 60.2 | % | 490,418 |
-28-
December 2012 Global Loss Triangles - Reinsurance
Excluding large losses
U.S. dollars in thousands
Other Reinsurance (Net of Ceded Reinsurance)
Cumulative Paid Loss & ALAE |
||||||||||||||||||||||||||||||||||||||||||||
Treaty | Months of Development | |||||||||||||||||||||||||||||||||||||||||||
Year | 12 | 24 | 36 | 48 | 60 | 72 | 84 | 96 | 108 | 120 | 132 | |||||||||||||||||||||||||||||||||
2002 | 52 | 1,225 | 2,576 | 3,222 | 3,687 | 4,081 | 4,191 | 4,439 | 4,466 | 4,475 | 4,484 | |||||||||||||||||||||||||||||||||
2003 | 15 | 886 | 2,373 | 3,294 | 4,452 | 4,656 | 4,602 | 4,660 | 4,728 | 4,800 | ||||||||||||||||||||||||||||||||||
2004 | 24 | 4,699 | 6,910 | 9,525 | 7,585 | 7,963 | 8,368 | 9,075 | 9,141 | |||||||||||||||||||||||||||||||||||
2005 | 265 | 3,772 | 8,768 | 7,471 | 10,158 | 11,573 | 12,292 | 12,450 | ||||||||||||||||||||||||||||||||||||
2006 | 68 | 2,821 | 5,666 | 6,934 | 7,793 | 8,329 | 8,560 | |||||||||||||||||||||||||||||||||||||
2007 | 279 | 4,098 | 7,242 | 8,936 | 10,047 | 10,686 | ||||||||||||||||||||||||||||||||||||||
2008 | 534 | 4,050 | 7,972 | 10,335 | 12,427 | |||||||||||||||||||||||||||||||||||||||
2009 | 121 | 2,196 | 4,283 | 6,338 | ||||||||||||||||||||||||||||||||||||||||
2010 | 73 | 1,222 | 3,879 | |||||||||||||||||||||||||||||||||||||||||
2011 | 2,365 | 10,645 | ||||||||||||||||||||||||||||||||||||||||||
2012 | 28,387 | |||||||||||||||||||||||||||||||||||||||||||
Reported Loss & ALAE |
||||||||||||||||||||||||||||||||||||||||||||
Treaty | Months of Development | |||||||||||||||||||||||||||||||||||||||||||
Year | 12 | 24 | 36 | 48 | 60 | 72 | 84 | 96 | 108 | 120 | 132 | |||||||||||||||||||||||||||||||||
2002 | 270 | 3,065 | 4,472 | 4,580 | 4,963 | 4,700 | 4,691 | 4,629 | 4,623 | 4,609 | 4,587 | |||||||||||||||||||||||||||||||||
2003 | 54 | 887 | 2,614 | 4,643 | 5,266 | 5,158 | 4,929 | 4,872 | 4,905 | 4,996 | ||||||||||||||||||||||||||||||||||
2004 | 37 | 7,097 | 7,476 | 10,324 | 9,038 | 8,188 | 8,319 | 8,186 | 8,134 | |||||||||||||||||||||||||||||||||||
2005 | 278 | 11,206 | 10,817 | 10,337 | 11,080 | 11,801 | 13,710 | 13,637 | ||||||||||||||||||||||||||||||||||||
2006 | 69 | 6,022 | 7,949 | 8,880 | 9,035 | 9,226 | 9,256 | |||||||||||||||||||||||||||||||||||||
2007 | 841 | 7,432 | 9,808 | 10,708 | 10,667 | 10,645 | ||||||||||||||||||||||||||||||||||||||
2008 | 1,072 | 9,821 | 12,870 | 11,804 | 12,130 | |||||||||||||||||||||||||||||||||||||||
2009 | 326 | 3,799 | 6,911 | 7,929 | ||||||||||||||||||||||||||||||||||||||||
2010 | 237 | 3,781 | 5,245 | |||||||||||||||||||||||||||||||||||||||||
2011 | 4,691 | 17,305 | ||||||||||||||||||||||||||||||||||||||||||
2012 | 31,773 | |||||||||||||||||||||||||||||||||||||||||||
Reported Loss & ALAE Ratio to Earned Premium (excluding IBNR) |
||||||||||||||||||||||||||||||||||||||||||||
Treaty | Months of Development | |||||||||||||||||||||||||||||||||||||||||||
Year | 12 | 24 | 36 | 48 | 60 | 72 | 84 | 96 | 108 | 120 | 132 | |||||||||||||||||||||||||||||||||
2002 | 22 | % | 28 | % | 39 | % | 38 | % | 41 | % | 39 | % | 39 | % | 38 | % | 38 | % | 38 | % | 38 | % | ||||||||||||||||||||||
2003 | 2 | % | 7 | % | 13 | % | 23 | % | 26 | % | 26 | % | 25 | % | 24 | % | 24 | % | 25 | % | ||||||||||||||||||||||||
2004 | 0 | % | 29 | % | 24 | % | 33 | % | 29 | % | 26 | % | 26 | % | 26 | % | 25 | % | ||||||||||||||||||||||||||
2005 | 2 | % | 34 | % | 28 | % | 27 | % | 29 | % | 31 | % | 36 | % | 35 | % | ||||||||||||||||||||||||||||
2006 | 0 | % | 20 | % | 26 | % | 29 | % | 29 | % | 30 | % | 30 | % | ||||||||||||||||||||||||||||||
2007 | 4 | % | 20 | % | 25 | % | 27 | % | 27 | % | 27 | % | ||||||||||||||||||||||||||||||||
2008 | 5 | % | 30 | % | 38 | % | 35 | % | 36 | % | ||||||||||||||||||||||||||||||||||
2009 | 2 | % | 12 | % | 21 | % | 24 | % | ||||||||||||||||||||||||||||||||||||
2010 | 1 | % | 10 | % | 14 | % | ||||||||||||||||||||||||||||||||||||||
2011 | 11 | % | 25 | % | ||||||||||||||||||||||||||||||||||||||||
2012 | 29 | % |
Treaty | Earned Premium |
Loss & ALAE | ||||||||||||||||||||||||||||||
Year | Paid | Case O/S | Reported | IBNR | Ultimate | Ult. Ratio | Unpaid | |||||||||||||||||||||||||
2002 | 12,192 | 4,484 | 103 | 4,587 | 116 | 4,704 | 38.6 | % | 219 | |||||||||||||||||||||||
2003 | 20,108 | 4,800 | 196 | 4,996 | 182 | 5,179 | 25.8 | % | 378 | |||||||||||||||||||||||
2004 | 31,929 | 9,141 | (1,008 | ) | 8,134 | 385 | 8,519 | 26.7 | % | (622 | ) | |||||||||||||||||||||
2005 | 38,654 | 12,450 | 1,188 | 13,637 | 784 | 14,422 | 37.3 | % | 1,972 | |||||||||||||||||||||||
2006 | 30,959 | 8,560 | 695 | 9,256 | 739 | 9,995 | 32.3 | % | 1,435 | |||||||||||||||||||||||
2007 | 38,901 | 10,686 | (41 | ) | 10,645 | 913 | 11,558 | 29.7 | % | 872 | ||||||||||||||||||||||
2008 | 33,848 | 12,427 | (298 | ) | 12,130 | 1,877 | 14,007 | 41.4 | % | 1,579 | ||||||||||||||||||||||
2009 | 32,532 | 6,338 | 1,591 | 7,929 | 943 | 8,872 | 27.3 | % | 2,534 | |||||||||||||||||||||||
2010 | 38,343 | 3,879 | 1,367 | 5,245 | 2,918 | 8,164 | 21.3 | % | 4,285 | |||||||||||||||||||||||
2011 | 70,014 | 10,645 | 6,660 | 17,305 | 9,920 | 27,225 | 38.9 | % | 16,580 | |||||||||||||||||||||||
2012 | 110,103 | 28,387 | 3,387 | 31,773 | 70,299 | 102,072 | 92.7 | % | 73,685 | |||||||||||||||||||||||
Total | 457,583 | 111,798 | 13,840 | 125,638 | 89,078 | 214,716 | 46.9 | % | 102,918 |
-29-
December 2012 Global Loss Triangles - Direct Insurance
Excluding large losses on Property
U.S. dollars in thousands
Premium - Gross of ceded reinsurance |
||||||||||||||||||||||||||||||||
Cal/Acc | Property | General Casualty | Prof. Liab. Lines | Healthcare | ||||||||||||||||||||||||||||
Year | Written | Earned | Written | Earned | Written | Earned | Written | Earned | ||||||||||||||||||||||||
2002 | 376,526 | 196,237 | 166,995 | 88,051 | 141,612 | 59,558 | 73,076 | 39,904 | ||||||||||||||||||||||||
2003 | 554,735 | 483,719 | 305,812 | 257,017 | 301,271 | 237,656 | 95,630 | 76,140 | ||||||||||||||||||||||||
2004 | 547,959 | 565,327 | 352,392 | 332,389 | 358,020 | 321,801 | 142,160 | 120,800 | ||||||||||||||||||||||||
2005 | 412,879 | 476,481 | 289,364 | 297,511 | 372,460 | 352,174 | 137,074 | 136,577 | ||||||||||||||||||||||||
2006 | 463,900 | 441,138 | 276,940 | 275,405 | 434,999 | 395,104 | 156,698 | 150,401 | ||||||||||||||||||||||||
2007 | 391,018 | 423,468 | 252,902 | 264,680 | 452,245 | 431,009 | 153,567 | 147,720 | ||||||||||||||||||||||||
2008 | 327,491 | 357,588 | 235,939 | 243,673 | 498,544 | 457,068 | 184,055 | 170,600 | ||||||||||||||||||||||||
2009 | 243,193 | 272,873 | 287,085 | 265,068 | 489,872 | 506,027 | 210,422 | 197,314 | ||||||||||||||||||||||||
2010 | 224,453 | 233,716 | 311,987 | 290,498 | 469,036 | 475,224 | 228,810 | 222,171 | ||||||||||||||||||||||||
2011 | 244,636 | 225,599 | 379,295 | 333,193 | 509,565 | 478,865 | 235,559 | 228,445 | ||||||||||||||||||||||||
2012 | 274,556 | 260,345 | 471,090 | 410,540 | 589,248 | 537,257 | 234,099 | 237,910 | ||||||||||||||||||||||||
Total | 4,061,346 | 3,936,490 | 3,329,801 | 3,058,025 | 4,616,873 | 4,251,742 | 1,851,151 | 1,727,981 | ||||||||||||||||||||||||
Loss & ALAE - Gross of ceded reinsurance |
||||||||||||||||||||||||||||||||
Accident | Property | General Casualty | Prof. Liab. Lines | Healthcare | ||||||||||||||||||||||||||||
Year | Paid | Reported | Paid | Reported | Paid | Reported | Paid | Reported | ||||||||||||||||||||||||
2002 | 56,701 | 56,701 | 9,887 | 32,290 | 62,538 | 62,538 | 8,027 | 8,027 | ||||||||||||||||||||||||
2003 | 221,814 | 222,481 | 57,534 | 57,534 | 27,620 | 43,237 | 23,203 | 25,905 | ||||||||||||||||||||||||
2004 | 237,674 | 238,232 | 31,861 | 35,432 | 48,702 | 60,926 | 15,325 | 17,967 | ||||||||||||||||||||||||
2005 | 365,380 | 366,287 | 120,531 | 149,613 | 44,851 | 59,136 | 13,647 | 15,443 | ||||||||||||||||||||||||
2006 | 212,916 | 217,148 | 108,776 | 108,816 | 111,154 | 184,305 | 22,350 | 23,322 | ||||||||||||||||||||||||
2007 | 199,710 | 220,826 | 29,224 | 38,733 | 91,900 | 124,918 | 32,100 | 45,816 | ||||||||||||||||||||||||
2008 | 218,452 | 226,406 | 53,168 | 56,855 | 162,596 | 214,571 | 34,461 | 45,251 | ||||||||||||||||||||||||
2009 | 77,316 | 85,366 | 60,422 | 70,495 | 68,037 | 92,917 | 38,919 | 73,176 | ||||||||||||||||||||||||
2010 | 128,648 | 155,811 | 132,702 | 159,289 | 70,837 | 107,204 | 32,365 | 77,261 | ||||||||||||||||||||||||
2011 | 115,930 | 188,553 | 28,876 | 109,349 | 70,623 | 120,843 | 15,556 | 50,594 | ||||||||||||||||||||||||
2012 | 21,849 | 72,864 | 8,699 | 57,620 | 17,676 | 47,124 | 1,919 | 15,083 | ||||||||||||||||||||||||
Total | 1,856,389 | 2,050,674 | 641,679 | 876,027 | 776,535 | 1,117,721 | 237,873 | 397,845 |
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December 2012 Global Loss Triangles - Direct Insurance
Excluding large losses on Property
U.S. dollars in thousands
Premium - Net of ceded reinsurance |
||||||||||||||||||||||||||||||||
Cal/Acc | Property | General Casualty | Prof. Liab. Lines | Healthcare | ||||||||||||||||||||||||||||
Year | Written | Earned | Written | Earned | Written | Earned | Written | Earned | ||||||||||||||||||||||||
2002 | 300,021 | 171,696 | 166,995 | 88,051 | 141,612 | 59,558 | 73,076 | 39,904 | ||||||||||||||||||||||||
2003 | 383,345 | 356,275 | 260,049 | 233,589 | 287,807 | 232,141 | 93,126 | 75,002 | ||||||||||||||||||||||||
2004 | 308,623 | 333,170 | 283,537 | 271,160 | 330,199 | 304,642 | 126,731 | 114,883 | ||||||||||||||||||||||||
2005 | 170,895 | 226,828 | 228,477 | 236,587 | 322,937 | 326,766 | 106,857 | 118,565 | ||||||||||||||||||||||||
2006 | 193,652 | 190,783 | 211,686 | 214,376 | 362,190 | 343,955 | 124,109 | 124,024 | ||||||||||||||||||||||||
2007 | 176,420 | 180,460 | 173,099 | 192,097 | 346,657 | 349,869 | 120,773 | 117,748 | ||||||||||||||||||||||||
2008 | 169,889 | 173,790 | 150,779 | 162,750 | 386,010 | 341,088 | 149,237 | 131,356 | ||||||||||||||||||||||||
2009 | 123,011 | 142,872 | 195,581 | 172,403 | 367,364 | 386,618 | 165,738 | 150,165 | ||||||||||||||||||||||||
2010 | 132,548 | 128,427 | 207,783 | 195,237 | 355,963 | 355,310 | 175,110 | 169,545 | ||||||||||||||||||||||||
2011 | 160,551 | 139,897 | 256,741 | 222,493 | 372,044 | 354,064 | 177,464 | 173,460 | ||||||||||||||||||||||||
2012 | 204,044 | 184,340 | 313,044 | 274,263 | 398,691 | 374,339 | 173,997 | 175,947 | ||||||||||||||||||||||||
Total | 2,322,998 | 2,228,538 | 2,447,772 | 2,263,007 | 3,671,476 | 3,428,350 | 1,486,219 | 1,390,599 | ||||||||||||||||||||||||
Loss & ALAE - Net of ceded reinsurance |
||||||||||||||||||||||||||||||||
Accident | Property | General Casualty | Prof. Liab. Lines | Healthcare | ||||||||||||||||||||||||||||
Year | Paid | Reported | Paid | Reported | Paid | Reported | Paid | Reported | ||||||||||||||||||||||||
2002 | 49,067 | 49,067 | 9,887 | 32,290 | 62,538 | 62,538 | 8,027 | 8,027 | ||||||||||||||||||||||||
2003 | 179,392 | 179,619 | 57,533 | 57,533 | 26,108 | 41,725 | 23,203 | 25,905 | ||||||||||||||||||||||||
2004 | 152,189 | 152,540 | 28,834 | 32,091 | 48,664 | 60,888 | 15,315 | 17,957 | ||||||||||||||||||||||||
2005 | 164,486 | 164,600 | 95,881 | 123,397 | 41,518 | 55,801 | 12,068 | 13,753 | ||||||||||||||||||||||||
2006 | 95,230 | 98,153 | 72,688 | 72,728 | 93,976 | 161,730 | 16,824 | 17,796 | ||||||||||||||||||||||||
2007 | 94,204 | 105,889 | 25,344 | 32,539 | 77,668 | 106,267 | 25,807 | 35,581 | ||||||||||||||||||||||||
2008 | 121,119 | 126,912 | 39,859 | 42,650 | 130,147 | 174,785 | 31,383 | 38,252 | ||||||||||||||||||||||||
2009 | 53,634 | 60,584 | 45,889 | 51,965 | 65,484 | 86,672 | 36,001 | 62,051 | ||||||||||||||||||||||||
2010 | 83,323 | 100,179 | 81,399 | 100,472 | 69,631 | 101,151 | 31,645 | 69,468 | ||||||||||||||||||||||||
2011 | 79,874 | 134,352 | 24,609 | 67,676 | 65,775 | 113,706 | 15,010 | 48,178 | ||||||||||||||||||||||||
2012 | 17,121 | 56,045 | 8,513 | 43,065 | 17,643 | 45,869 | 1,905 | 15,062 | ||||||||||||||||||||||||
Total | 1,089,637 | 1,227,940 | 490,436 | 656,406 | 699,152 | 1,011,134 | 217,187 | 352,030 |
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December 2012 Global Loss Triangles - Reinsurance
Excluding large losses on Property Other and Other
U.S. dollars in thousands
Premium - Gross of ceded reinsurance |
||||||||||||||||||||||||||||||||||||||||
Treaty | Property Catastrophe | Property Other | General Casualty | Prof. Liab. Lines | Other | |||||||||||||||||||||||||||||||||||
Year | Written | Earned | Written | Earned | Written | Earned | Written | Earned | Written | Earned | ||||||||||||||||||||||||||||||
2002 | 33,846 | 33,846 | 64,253 | 64,253 | 33,679 | 33,679 | 46,830 | 46,830 | 12,192 | 12,192 | ||||||||||||||||||||||||||||||
2003 | 58,868 | 58,868 | 66,185 | 66,185 | 100,556 | 100,556 | 99,803 | 99,803 | 20,108 | 20,108 | ||||||||||||||||||||||||||||||
2004 | 66,178 | 66,178 | 75,094 | 75,094 | 122,676 | 122,676 | 119,141 | 119,141 | 38,404 | 38,404 | ||||||||||||||||||||||||||||||
2005 | 83,838 | 83,838 | 76,794 | 76,794 | 156,623 | 156,623 | 207,087 | 207,087 | 41,180 | 41,180 | ||||||||||||||||||||||||||||||
2006 | 67,029 | 67,029 | 68,055 | 68,055 | 130,166 | 130,166 | 194,981 | 194,981 | 30,959 | 30,959 | ||||||||||||||||||||||||||||||
2007 | 83,675 | 83,675 | 41,916 | 41,916 | 143,144 | 143,144 | 214,606 | 214,606 | 38,901 | 38,901 | ||||||||||||||||||||||||||||||
2008 | 66,915 | 66,915 | 33,155 | 33,155 | 131,492 | 131,471 | 185,107 | 185,107 | 33,848 | 33,848 | ||||||||||||||||||||||||||||||
2009 | 83,264 | 83,264 | 35,446 | 35,446 | 156,152 | 156,152 | 134,603 | 134,603 | 32,532 | 32,532 | ||||||||||||||||||||||||||||||
2010 | 136,491 | 136,296 | 50,838 | 50,836 | 179,230 | 179,230 | 108,260 | 108,233 | 38,918 | 38,918 | ||||||||||||||||||||||||||||||
2011 | 198,225 | 195,282 | 70,725 | 70,098 | 209,851 | 185,231 | 76,339 | 69,305 | 74,760 | 71,527 | ||||||||||||||||||||||||||||||
2012 | 249,048 | 175,910 | 97,490 | 58,466 | 159,638 | 60,169 | 62,621 | 23,188 | 141,248 | 110,703 | ||||||||||||||||||||||||||||||
Total | 1,127,378 | 1,051,101 | 679,951 | 640,299 | 1,523,207 | 1,399,097 | 1,449,378 | 1,402,885 | 503,051 | 469,273 | ||||||||||||||||||||||||||||||
Loss & ALAE - Gross of ceded reinsurance |
||||||||||||||||||||||||||||||||||||||||
Treaty | Property Catastrophe | Property Other | General Casualty | Prof. Liab. Lines | Other | |||||||||||||||||||||||||||||||||||
Year | Paid | Reported | Paid | Reported | Paid | Reported | Paid | Reported | Paid | Reported | ||||||||||||||||||||||||||||||
2002 | 4,336 | 4,336 | 27,587 | 27,603 | 18,814 | 19,860 | 16,776 | 18,660 | 4,484 | 4,587 | ||||||||||||||||||||||||||||||
2003 | 7,237 | 7,237 | 19,374 | 19,377 | 35,385 | 37,525 | 27,514 | 34,090 | 4,800 | 4,996 | ||||||||||||||||||||||||||||||
2004 | 61,286 | 61,373 | 17,442 | 17,528 | 44,091 | 53,339 | 34,241 | 41,758 | 10,649 | 9,641 | ||||||||||||||||||||||||||||||
2005 | 153,327 | 155,317 | 47,527 | 47,257 | 57,041 | 63,185 | 51,822 | 68,872 | 12,955 | 14,149 | ||||||||||||||||||||||||||||||
2006 | 9,917 | 10,131 | 29,924 | 30,259 | 56,562 | 67,040 | 52,492 | 77,882 | 8,560 | 9,256 | ||||||||||||||||||||||||||||||
2007 | 12,603 | 12,778 | 19,398 | 20,075 | 49,828 | 67,933 | 100,723 | 138,158 | 10,686 | 10,645 | ||||||||||||||||||||||||||||||
2008 | 33,204 | 33,952 | 15,195 | 16,068 | 34,675 | 61,791 | 46,029 | 78,988 | 12,427 | 12,130 | ||||||||||||||||||||||||||||||
2009 | 4,139 | 5,281 | 21,638 | 23,031 | 27,254 | 55,604 | 15,484 | 29,616 | 6,338 | 7,929 | ||||||||||||||||||||||||||||||
2010 | 76,523 | 103,457 | 29,650 | 36,749 | 45,235 | 67,172 | 8,371 | 13,559 | 3,879 | 5,245 | ||||||||||||||||||||||||||||||
2011 | 64,133 | 123,934 | 22,074 | 38,181 | 12,560 | 23,007 | 610 | 2,973 | 10,645 | 17,305 | ||||||||||||||||||||||||||||||
2012 | 26,282 | 55,315 | 5,422 | 19,163 | 842 | 2,991 | 32 | 394 | 28,387 | 31,773 | ||||||||||||||||||||||||||||||
Total | 452,988 | 573,112 | 255,231 | 295,291 | 382,285 | 519,447 | 354,098 | 504,949 | 113,810 | 127,657 |
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December 2012 Global Loss Triangles - Reinsurance
Excluding large losses on Property Other and Other
U.S. dollars in thousands
Premium - Net of ceded reinsurance |
||||||||||||||||||||||||||||||||||||||||
Treaty | Property Catastrophe | Property Other | General Casualty | Prof. Liab. Lines | Other | |||||||||||||||||||||||||||||||||||
Year | Written | Earned | Written | Earned | Written | Earned | Written | Earned | Written | Earned | ||||||||||||||||||||||||||||||
2002 | 33,846 | 33,846 | 64,253 | 64,253 | 33,679 | 33,679 | 46,830 | 46,830 | 12,192 | 12,192 | ||||||||||||||||||||||||||||||
2003 | 58,868 | 58,868 | 66,185 | 66,185 | 100,556 | 100,556 | 99,803 | 99,803 | 20,108 | 20,108 | ||||||||||||||||||||||||||||||
2004 | 58,128 | 58,128 | 75,094 | 75,094 | 122,676 | 122,676 | 119,141 | 119,141 | 31,929 | 31,929 | ||||||||||||||||||||||||||||||
2005 | 69,898 | 69,898 | 74,334 | 74,334 | 156,395 | 156,395 | 207,087 | 207,087 | 38,654 | 38,654 | ||||||||||||||||||||||||||||||
2006 | 65,966 | 65,966 | 67,629 | 67,629 | 129,986 | 129,986 | 194,981 | 194,981 | 30,959 | 30,959 | ||||||||||||||||||||||||||||||
2007 | 83,608 | 83,608 | 41,916 | 41,916 | 142,884 | 142,884 | 214,606 | 214,606 | 38,901 | 38,901 | ||||||||||||||||||||||||||||||
2008 | 66,833 | 66,833 | 31,822 | 31,822 | 131,210 | 131,189 | 184,555 | 184,333 | 33,848 | 33,848 | ||||||||||||||||||||||||||||||
2009 | 83,184 | 83,184 | 35,446 | 35,446 | 155,822 | 155,822 | 134,603 | 134,603 | 32,532 | 32,532 | ||||||||||||||||||||||||||||||
2010 | 136,474 | 136,279 | 50,838 | 50,836 | 178,705 | 178,705 | 108,260 | 108,233 | 38,343 | 38,343 | ||||||||||||||||||||||||||||||
2011 | 198,223 | 195,280 | 70,725 | 70,098 | 209,851 | 185,231 | 76,339 | 69,305 | 72,945 | 70,014 | ||||||||||||||||||||||||||||||
2012 | 249,046 | 175,908 | 87,167 | 56,141 | 159,638 | 60,169 | 62,621 | 23,188 | 139,369 | 110,103 | ||||||||||||||||||||||||||||||
Total | 1,104,075 | 1,027,798 | 665,410 | 633,755 | 1,521,401 | 1,397,291 | 1,448,826 | 1,402,112 | 489,781 | 457,583 | ||||||||||||||||||||||||||||||
Loss & ALAE - Net of ceded reinsurance |
||||||||||||||||||||||||||||||||||||||||
Treaty | Property Catastrophe | Property Other | General Casualty | Prof. Liab. Lines | Other | |||||||||||||||||||||||||||||||||||
Year | Paid | Reported | Paid | Reported | Paid | Reported | Paid | Reported | Paid | Reported | ||||||||||||||||||||||||||||||
2002 | 4,336 | 4,336 | 27,587 | 27,603 | 18,814 | 19,860 | 16,776 | 18,660 | 4,484 | 4,587 | ||||||||||||||||||||||||||||||
2003 | 7,237 | 7,237 | 19,374 | 19,377 | 35,385 | 37,525 | 27,514 | 34,090 | 4,800 | 4,996 | ||||||||||||||||||||||||||||||
2004 | 60,525 | 60,613 | 17,442 | 17,528 | 44,091 | 53,339 | 34,241 | 41,758 | 9,141 | 8,134 | ||||||||||||||||||||||||||||||
2005 | 113,657 | 115,648 | 47,527 | 47,257 | 57,041 | 63,185 | 51,822 | 68,872 | 12,450 | 13,637 | ||||||||||||||||||||||||||||||
2006 | 9,917 | 10,131 | 29,924 | 30,259 | 56,562 | 67,040 | 52,492 | 77,882 | 8,560 | 9,256 | ||||||||||||||||||||||||||||||
2007 | 12,603 | 12,778 | 19,398 | 20,075 | 49,828 | 67,933 | 100,723 | 138,158 | 10,686 | 10,645 | ||||||||||||||||||||||||||||||
2008 | 33,204 | 33,952 | 15,195 | 16,068 | 34,675 | 61,791 | 46,029 | 78,988 | 12,427 | 12,130 | ||||||||||||||||||||||||||||||
2009 | 4,139 | 5,281 | 21,638 | 23,031 | 27,254 | 55,604 | 15,484 | 29,616 | 6,338 | 7,929 | ||||||||||||||||||||||||||||||
2010 | 76,523 | 103,457 | 29,650 | 36,749 | 45,235 | 67,172 | 8,371 | 13,559 | 3,879 | 5,245 | ||||||||||||||||||||||||||||||
2011 | 64,133 | 123,934 | 22,074 | 38,181 | 12,560 | 23,007 | 610 | 2,973 | 10,645 | 17,305 | ||||||||||||||||||||||||||||||
2012 | 26,282 | 55,315 | 5,422 | 19,163 | 842 | 2,991 | 32 | 394 | 28,387 | 31,773 | ||||||||||||||||||||||||||||||
Total | 412,558 | 532,682 | 255,231 | 295,291 | 382,285 | 519,447 | 354,098 | 504,949 | 111,798 | 125,638 |
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IV. | SELECTED EXCERPTS FROM ALLIED WORLDS 2012 10-K DISCLOSURE |
The reserve for losses and loss expenses is comprised of two main elements: outstanding loss reserves, also known as case reserves, and reserves for IBNR. Outstanding loss reserves relate to known claims and represent managements best estimate of the likely loss settlement. IBNR reserves relate primarily to unreported events that, based on industry information, managements experience and actuarial evaluation, can reasonably be expected to have occurred and are reasonably likely to result in a loss to our company. IBNR reserves also relate to estimated development of reported events that based on industry information, managements experience and actuarial evaluation, can reasonably be expected to reach our attachment point and are reasonably likely to result in a loss to our company. We also include IBNR changes in the values of claims that have been reported to us but are not yet settled. Each claim is settled individually based upon its merits and it is not unusual for a claim to take years after being reported to settle, especially if legal action is involved. As a result, reserves for losses and loss expenses include significant estimates for IBNR reserves.
The reserve for IBNR is estimated by management for each line of business based on various factors, including underwriters expectations about loss experience, actuarial analysis, comparisons with the results of industry benchmarks and loss experience to date. The reserve for IBNR is calculated as the ultimate amount of losses and loss expenses less cumulative paid losses and loss expenses and case reserves. Our actuaries employ generally accepted actuarial methodologies to determine estimated ultimate loss reserves.
While management believes that our case reserves and IBNR are sufficient to cover losses assumed by us, there can be no assurance that losses will not deviate from our reserves, possibly by material amounts. The methodology of estimating loss reserves is periodically reviewed to ensure that the assumptions made continue to be appropriate. To the extent actual reported losses exceed estimated losses, the carried estimate of the ultimate losses will be increased (i.e., unfavorable reserve development), and to the extent actual reported losses are less than estimated losses, the carried estimate of ultimate losses will be reduced (i.e., favorable reserve development). We record any changes in our loss reserve estimates and the related reinsurance recoverables in the periods in which they are determined.
In certain lines of business, claims are generally reported and paid within a relatively short period of time (shorter tail lines) during and following the policy coverage period. This generally enables us to determine with greater certainty our estimate of ultimate losses and loss expenses. The estimate of reserves for our shorter tail lines of business and products, including property, crop, aviation, marine, personal accident and workers compensation catastrophe relies primarily on traditional loss reserving methodologies, utilizing selected paid and reported loss development factors.
Our casualty insurance and casualty reinsurance lines of business include general liability risks, healthcare and professional liability risks. Claims may be reported or settled several years after the coverage period has terminated for these lines of business (longer tail lines), which increases uncertainties of our reserve estimates in such lines. In addition, our attachment points for these longer tail lines are often relatively high, making reserving for these lines of business
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more difficult than shorter tail lines due to having to estimate whether the severity of the estimated losses will exceed our attachment point. We establish a case reserve when sufficient information is gathered to make a reasonable estimate of the liability, which often requires a significant amount of information and time. Due to the lengthy reporting pattern of these casualty lines, reliance is placed on industry benchmarks supplemented by our own experience. For expected loss ratio selections, we are giving greater consideration to our existing experience supplemented with analysis of loss trends, rate changes and experience of peer companies.
Our reinsurance treaties are reviewed individually, based upon individual characteristics and loss experience emergence. Loss reserves on assumed reinsurance have unique features that make them more difficult to estimate than direct insurance. We establish loss reserves upon receipt of advice from a cedent that a reserve is merited. Our claims staff may establish additional loss reserves where, in their judgment, the amount reported by a cedent is potentially inadequate. The following are the most significant features that make estimating loss reserves on assumed reinsurance difficult:
| Reinsurers have to rely upon the cedents and reinsurance intermediaries to report losses in a timely fashion. |
| Reinsurers must rely upon cedents to price the underlying business appropriately. |
| Reinsurers have less predictable loss emergence patterns than direct insurers, particularly when writing excess-of-loss reinsurance. |
For excess-of-loss reinsurance, cedents generally are required to report losses that either exceed 50% of the retention, have a reasonable probability of exceeding the retention or meet serious injury reporting criteria. All reinsurance claims that are reserved are reviewed at least every six months. For quota share reinsurance treaties, cedents are required to give a periodic statement of account, generally monthly or quarterly. These periodic statements typically include information regarding written premiums, earned premiums, unearned premiums, ceding commissions, brokerage amounts, applicable taxes, paid losses and outstanding losses. They can be submitted 60 to 90 days after the close of the reporting period. Some quota share reinsurance treaties have specific language regarding earlier notice of serious claims.
Reinsurance generally has a greater time lag than direct insurance in the reporting of claims. The time lag is caused by the claim first being reported to the cedent, then the intermediary (such as a broker) and finally the reinsurer. This lag can be up to six months or longer in certain cases. There is also a time lag because the insurer may not be required to report claims to the reinsurer until certain reporting criteria are met. In some instances this could be several years while a claim is being litigated. We use reporting factors based on data from the Reinsurance Association of America to adjust for time lags. We also use historical treaty-specific reporting factors when applicable. Loss and premium information are entered into our reinsurance system by our claims department and our accounting department on a timely basis.
We record the individual case reserves sent to us by the cedents through the reinsurance intermediaries. Individual claims are reviewed by our reinsurance claims department and adjusted as deemed appropriate. The loss data received from the intermediaries is checked for reasonableness and for known events. Details of the loss listings are reviewed during routine claim audits.
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The expected loss ratios that we assign to each treaty are based upon analysis and modeling performed by a team of actuaries. The historical data reviewed by the team of pricing actuaries is considered in setting the reserves for each cedent. The historical data in the submissions is matched against our carried reserves for our historical treaty years.
Loss reserves do not represent an exact calculation of liability. Rather, loss reserves are estimates of what we expect the ultimate resolution and administration of claims will cost. These estimates are based on actuarial and statistical projections and on our assessment of currently available data, as well as estimates of future trends in claims severity and frequency, judicial theories of liability and other factors. Loss reserve estimates are refined as experience develops and as claims are reported and resolved. In addition, the relatively long periods between when a loss occurs and when it may be reported to our claims department for our casualty insurance and casualty reinsurance lines of business increase the uncertainties of our reserve estimates in such lines.
We utilize a variety of standard actuarial methods in our analysis. The selections from these various methods are based on the loss development characteristics of the specific line of business. For lines of business with long reporting periods such as casualty reinsurance, we may rely more on an expected loss ratio method (as described below) until losses begin to develop. For lines of business with short reporting periods such as property insurance, we may rely more on a paid loss development method (as described below) as losses are reported relatively quickly. The actuarial methods we utilize include:
Paid Loss Development Method. We estimate ultimate losses by calculating past paid loss development factors and applying them to exposure periods with further expected paid loss development. The paid loss development method assumes that losses are paid at a consistent rate. The paid loss development method provides an objective test of reported loss projections because paid losses contain no reserve estimates. In some circumstances, paid losses for recent periods may be too varied for accurate predictions. For many coverages, especially casualty coverages, claim payments are made slowly and it may take years for claims to be fully reported and settled. These payments may be unreliable for determining future loss projections because of shifts in settlement patterns or because of large settlements in the early stages of development. Choosing an appropriate tail factor to determine the amount of payments from the latest development period to the ultimate development period may also require considerable judgment, especially for coverages that have long payment patterns. As we have limited payment history, we have had to supplement our paid loss development patterns with appropriate benchmarks.
Reported Loss Development Method. We estimate ultimate losses by calculating past reported loss development factors and applying them to exposure periods with further expected reported loss development. Since reported losses include payments and case reserves, changes in both of these amounts are incorporated in this method. This approach provides a larger volume of data to estimate ultimate losses than the paid loss development method. Thus, reported loss patterns may be less varied than paid loss patterns, especially for coverages that have historically been paid out over a long period of time but for which claims are reported relatively early and have case loss reserve estimates established. This method assumes that reserves have been
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established using consistent practices over the historical period that is reviewed. Changes in claims handling procedures, large claims or significant numbers of claims of an unusual nature may cause results to be too varied for accurate forecasting. Also, choosing an appropriate tail factor to determine the change in reported loss from the latest development period to the ultimate development period may require considerable judgment. As we have limited reported history, we have had to supplement our reported loss development patterns with appropriate benchmarks.
Expected Loss Ratio Method. To estimate ultimate losses under the expected loss ratio method, we multiply earned premiums by an expected loss ratio. The expected loss ratio is selected utilizing industry data, historical company data and professional judgment. This method is particularly useful for new insurance companies or new lines of business where there are no historical losses or where past loss experience is not credible.
Bornhuetter-Ferguson Paid Loss Method. The Bornhuetter-Ferguson paid loss method is a combination of the paid loss development method and the expected loss ratio method. The amount of losses yet to be paid is based upon the expected loss ratios and the expected percentage of losses unpaid. These expected loss ratios are modified to the extent paid losses to date differ from what would have been expected to have been paid based upon the selected paid loss development pattern. This method avoids some of the distortions that could result from a large development factor being applied to a small base of paid losses to calculate ultimate losses. This method will react slowly if actual loss ratios develop differently because of major changes in rate levels, retentions or deductibles, the forms and conditions of reinsurance coverage, the types of risks covered or a variety of other changes.
B-F Method. The B-F method is similar to the Bornhuetter-Ferguson paid loss method with the exception that it uses reported losses and reported loss development factors.
During 2012, 2011 and 2010, we adjusted our reliance on actuarial methods utilized for certain casualty lines of business and loss years within our U.S. insurance and international insurance lines from using a blend of the B-F method and the expected loss ratio method to using only the B-F method. We also began adjusting our reliance on actuarial methods utilized for certain other casualty lines of business and loss years within all of our operating units including the reinsurance lines, by placing greater reliance on the B-F method than on the expected loss ratio method. Placing greater reliance on more responsive actuarial methods for certain casualty lines of business and loss years within each of our operating units is a natural progression as we mature as a company and gain sufficient historical experience of our own that allows us to further refine our estimate of the reserve for losses and loss expenses. We believe utilizing only the B-F method for older loss years will more accurately reflect the reported loss activity we have had thus far in our ultimate loss ratio selections, and will better reflect how the ultimate losses will develop over time. We will continue to utilize the expected loss ratio method for the most recent loss years until we have sufficient experience to utilize other acceptable actuarial methodologies.
We expect that the trend of placing greater reliance on more responsive actuarial methods, for example from the expected loss ratio method to the B-F method, to continue as both (1) our loss years mature and become more statistically reliable and (2) as we build databases of our internal loss development patterns. The expected loss ratio remains a key assumption as the Bornhuetter-Ferguson methods rely upon an expected loss ratio selection and a loss development pattern selection.
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The key assumptions used to arrive at our best estimate of loss reserves are the expected loss ratios, rate of loss cost inflation, selection of benchmarks and reported and paid loss emergence patterns. Our reporting factors and expected loss ratios are based on a blend of our own experience and industry benchmarks for longer tailed business and primarily our own experience for shorter tail business. The benchmarks selected were those that we believe are most similar to our underwriting business.
Our expected loss ratios for shorter tail lines change from year to year. As our losses from shorter tail lines of business are reported relatively quickly, we select our expected loss ratios for the most recent years based upon our actual loss ratios for our older years adjusted for rate changes, inflation, cost of reinsurance and average storm activity. For the shorter tail lines, we initially used benchmarks for reported and paid loss emergence patterns. As we mature as a company, we have begun supplementing those benchmark patterns with our actual patterns as appropriate. For the longer tail lines, we continue to use benchmark patterns, although we update the benchmark patterns as additional information is published regarding the benchmark data.
For shorter tail lines, the primary assumption that changed during both 2012 as compared to 2011 and 2011 as compared to 2010 as it relates to prior year losses was actual paid and reported loss emergence patterns were generally less severe than estimated for each year due to lower frequency and severity of reported losses. As a result of this change, we recognized net favorable prior year reserve development in both 2012 and 2011. However, we did experience significant losses on certain of our shorter tail lines related to the current loss year.
The selection of the expected loss ratios for the longer tail lines is our most significant assumption. Due to the lengthy reporting pattern of longer tail lines, we supplement our own experience with industry benchmarks of expected loss ratios and reporting patterns in addition to our own experience. For our longer tail lines, the primary assumption that changed during both 2012 as compared to 2011 and 2011 as compared to 2010 as it relates to prior year losses was using the Bornhuetter-Ferguson loss development method for certain casualty lines of business and loss years as discussed above. This method calculated a lower projected loss ratio based on loss emergence patterns to date. As a result of the change in the expected loss ratio, we recognized net favorable prior year reserve development in 2012, 2011 and 2010. We believe that recognition of the reserve changes in the period they were recorded was appropriate since a pattern of reported losses had not emerged and the loss years were previously too immature to deviate from the expected loss ratio method in prior periods.
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V. GLOSSARY
Accident year | The year in which the event occurred that triggers a claim to us. All years referred to are years ending December 31. | |
ALAE | Allocated loss adjustment expense, which is an estimate of the associated external expenses to be incurred in settling a claim. ALAE includes the costs of third party loss assessors and legal experts. | |
Assumed reinsurance | That portion of a risk that a reinsurer accepts from an insurer in return for a stated premium. | |
Attachment point | The loss point of which an insurance or reinsurance policy becomes operative and below which any losses are retained by either the insured or other insurers or reinsurers, as the case may be. | |
Case reserves | Loss reserves, established with respect to specific, individual reported claims. | |
Casualty lines | Insurance that is primarily concerned with losses due to injuries to persons and liability imposed on the insured for such injury or for damage to the property of others. | |
Catastrophe reinsurance | A form of excess-of-loss reinsurance that, subject to a specified limit, indemnifies the ceding company for the amount of loss in excess of a specified retention with respect to an accumulation of losses resulting from a catastrophic event. The actual reinsurance document is called a catastrophe cover. These reinsurance contracts are typically designed to cover property insurance losses but can be written to cover other types of insurance losses such as workers compensation policies. |
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Cede, cedent or ceding company | When an insurer transfers some or all of its risk to a reinsurer, it cedes business and is referred to as the ceding company or cedent. | |
Claims-made policies | A liability policy covering all claims first advised during the term of the insurance policy, regardless of when the loss itself was sustained. | |
Deductible | The amount of exposure an insured retains on any one risk or group of risks. The term may apply to an insurance policy, where the insured is an individual or business, or a reinsurance contract, where the insured is an insurance company. See Retention. | |
D&O side A cover | Insurance that provides liability coverage to directors and officers for non-indemnified losses arising from their negligence or malfeasance. Coverage applies only if the directors and officers are not indemnified by their company for such loss. Such coverage is provided on both an excess basis (i.e., policy attaches after all underlying policy limits are exhausted) and on a difference-in-conditions basis (i.e., policy drops down and attaches at a lower attachment point due to the failure or inability of the underlying policy(ies) to pay the loss). | |
Earned premiums | That portion of premiums written that applies to the expired portion of the policy term. Earned premiums are recognized as revenues under both statutory accounting practice and accounting principles generally accepted in the United States of America. |
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Employment practices liability insurance | Insurance that primarily provides liability coverage to organizations and their employees for losses arising from acts of discrimination, harassment and retaliation against current and prospective employees of the organization. | |
Errors and omissions | Insurance that provides liability coverage for claims arising from professional negligence or malpractice, subject to applicable exclusions, terms and conditions of the policy. | |
Excess or Excess layer | Insurance to cover losses in one or more layers above a certain amount with losses below that amount usually covered by the insureds primary policy and its self-insured retention. | |
Excess-of-loss reinsurance | Reinsurance that indemnifies the insured against all or a specified portion of losses over a specified amount or retention. | |
Exclusions | Provisions in an insurance or reinsurance policy excluding certain risks or otherwise limiting the scope of coverage. | |
Exposure | The possibility of loss. A unit of measure of the amount of risk a company assumes. | |
Facultative reinsurance | The reinsurance of all or a portion of the insurance provided by a single policy. Each policy reinsured is separately negotiated. | |
Fiduciary liability insurance | Insurance that primarily provides liability coverage to fiduciaries of employee benefit and welfare plans for losses arising from the breach of any fiduciary duty owed to plan beneficiaries. |
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General casualty | Insurance that is primarily concerned with losses due to injuries to persons and liability imposed on the insured for such injury or for damage to the property of others. | |
Global loss triangles | A table of loss experience showing total losses for a certain period at regular valuation dates, reflecting the change in amounts as claims mature. Older periods in the table will have one more entry than the next youngest period, leading to the triangle shape of the data in the table. | |
Gross premiums written | Total premiums for insurance and reinsurance written during a given period. | |
Healthcare lines | Insurance coverage, often referred to as medical malpractice insurance, which addresses liability risks of doctors, surgeons, nurses, other healthcare professionals and the institutions (hospitals, clinics, etc.), in which they practice. | |
Incurred but not reported (IBNR) reserves | Reserves established by us for claims that have occurred but have not yet been reported to us as well as for changes in the values of claims that have been reported to us but are not yet settled. | |
LAE | The total of ALAE and ULAE. | |
Loss corridor | A mechanism contained in a reinsurance treaty that requires the cedent to be responsible for a certain amount of the ultimate net loss that is above the companys designated retention and below the designated limit, and which would otherwise be reimbursed under the treaty. Loss corridors are employed to mitigate the volatility of reinsurance agreements. |
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Loss development | The difference between the original loss as initially reserved by an insurer or reinsurer and its subsequent evaluation at a later date or at the time of its closure. Loss development occurs because of inflation and time lags between the occurrence of claims and the time they are actually reported to an insurer or reinsurer. To account for these increases, a loss development factor or multiplier is usually applied to a claim or group of claims in an effort to more accurately project the ultimate amount that will be paid. | |
Loss reserves | Liabilities established by insurers and reinsurers to reflect the estimated cost of claims incurred that the insurer or reinsurer will ultimately be required to pay. Reserves are established for losses and for loss expenses, and consist of case reserves and IBNR reserves. As the term is used in this Form 10-K, loss reserves is meant to include reserves for both losses and for loss expenses. | |
Loss year | The year to which a claim is attributed based upon the terms in the underlying policy or contract. All years referred to are years ending December 31. | |
Losses and loss expense ratio | Derived by dividing net losses and loss expenses by net earned premiums. | |
Losses and loss expenses | Losses are an occurrence that is the basis for submission or payment of a claim. Losses may be covered, limited or excluded from coverage, depending on the terms of the insurance policy or other insurance or reinsurance contracts. Loss |
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expenses are the expenses incurred by an insurance or reinsurance company in settling a loss. | ||
Losses discovered basis | Covers losses that are discovered by the insured during the policy period and a specified period thereafter (unless replaced with similar insurance), no matter when the loss occurred and it does not matter if the insured had prior coverage. | |
Net limits | The amount that an insurer or reinsurer will insure or reinsure for a specified risk, a portfolio of risks or on a single insured entity, less any applicable reinsurance purchased by such insurer or reinsurer. The term also refers to the maximum amount of benefit payable for a given claim or occurrence. | |
Occurrence policies | A liability policy covering all claims arising from an event that takes place during the policy period, regardless of when the claim is reported to us. | |
Occurrence-reported policies | A liability policy covering all claims arising from an event that takes place after a date specified in the policy and the claims must be reported to the insurer during the policy period. | |
Paid losses | Claim amounts paid to insureds or ceding companies. | |
Primary insurance | Insurance that absorbs the losses immediately above the insureds retention layer. A primary insurer will pay up to a certain dollar amount of losses over the insureds retention, at which point a higher layer excess insurer will be liable for additional losses. The coverage terms of a primary insurance layer typically assume an element of regular loss frequency. |
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Professional liability | Insurance that provides liability coverage to directors and officers, attorneys, doctors, accountants and other professionals who offer services to the general public and claim expertise in a particular area greater than the ordinary layperson for their negligence or malfeasance. | |
Property catastrophe coverage | In reinsurance, coverage that protects the ceding company against accumulated losses in excess of a stipulated sum that arise from a catastrophic event such as an earthquake, fire or windstorm. Catastrophe loss generally refers to the total loss of an insurer arising out of a single catastrophic event. | |
Quota share reinsurance | A proportional reinsurance treaty in which the ceding company cedes an agreed-on percentage of every risk it insures that falls within a class or classes of business subject to the treaty. | |
Reinsurance | The practice whereby one insurer, called the reinsurer, in consideration of a premium paid to that reinsurer, agrees to indemnify another insurer, called the ceding company, for part or all of the liability of the ceding company under one or more policies or contracts of insurance that it has issued. | |
Report year | The year in which a claim is reported to us. All years referred to are years ending December 31. | |
Reserves | Liabilities established by insurers and reinsurers to reflect the estimated cost of claims incurred that the insurer or reinsurer will ultimately be required to pay. Reserves are established for |
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losses and for loss expenses, and consist of case reserves and IBNR reserves. As the term is used in this report, reserves are meant to include reserves for both losses and for loss expenses. | ||
Retention | The amount of exposure an insured retains on any one risk or group of risks. The term may apply to an insurance policy, where the insured is an individual or business, or a reinsurance contract, where the insured is an insurance company. See Deductible. | |
Short tail | Lines of business where claims are generally reported and paid within a relatively short period of time following the policy coverage period. | |
Surplus treaty reinsurance | Reinsurance contracts under which the ceding company agrees to cede and the reinsurer agrees to assume part of every risk that exceeds the ceding companys predetermined retention limit. The reinsurer shares in premiums and losses in the same proportion as it shares in the total policy limits of the risk. | |
Swing-rated premium | Earned premiums from a swing-rated reinsurance contract, which is a contract that links the ultimate amount of ceded premium to the ultimate loss ratio on the reinsured business. This type of reinsurance contract enables the cedent to retain a greater portion of premium if the ultimate loss ratio develops at a level below the initial loss threshold set by the reinsurers, but requires a higher amount of ceded premium if the ultimate loss ratio develops above the initial threshold. |
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Treaties | Reinsurance contracts under which the ceding company agrees to cede and the reinsurer agrees to assume risks of a particular class or classes of business. | |
Treaty year | The year in which the contract incepts. Exposure from contracts incepting during the current treaty year will potentially affect both the current accident year as well future accident years. | |
ULAE | Means unallocated loss adjustment expenses, which are an assessment of the internal expenses required to settle claims. | |
Ultimate loss | Total of all expected settlement amounts, whether paid or reserved together with any associated loss adjustment expenses, and is the estimated total amount of loss at the measurement date. For purposes of this report, ultimate loss is the sum of paid losses, case reserves and IBNR. | |
Underwriter | An employee of an insurance or reinsurance company who examines, accepts or rejects risks and classifies accepted risks in order to charge an appropriate premium for each accepted risk. The underwriter is expected to select business that will produce an average risk of loss no greater than that anticipated for the class of business. |
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