The liability for losses and loss adjustment expenses ("LAE"), also referred to as loss reserves, represents our gross estimates before reinsurance for unpaid reported losses and includes losses that have been incurred but not reported ("IBNR") using a variety of actuarial methods. We recognize an asset for the portion of the liability that we expect to recover from reinsurers. LAE reserves include allocated loss adjustment expenses ("ALAE"), and unallocated loss adjustment expenses ("ULAE"). ALAE are linked to the settlement of an individual claim or loss, whereas ULAE are based on our estimates of future costs to administer the claims. IBNR represents reserves for loss and LAE that have been incurred but not yet reported to us. This includes amounts for unreported claims, development on known claims and reopened claims.


	2019
	Run-off		Legacy Underwriting		Corporate & Other		Total
Outstanding losses	$	4,407,082	$	842,483	$	—	$	5,249,565
IBNR	3,945,407		706,242		—		4,651,649
ULAE	331,494		21,140		—		352,634
Fair value adjustments- acquired companies	—		—		(167,511)		(167,511)
Fair value adjustments - fair value option	—		—		(217,933)		(217,933)
Total	$	8,683,983	$	1,569,865	$	(385,444)	$	9,868,404

Reconciliation to Consolidated Balance Sheet:
Loss and loss adjustment expenses	$	5,844,928	$	1,569,865	$	(167,511)	$	7,247,282
Loss and loss adjustment expenses, at fair value	2,839,055		—		(217,933)		2,621,122
Total	$	8,683,983	$	1,569,865	$	(385,444)	$	9,868,404


	2020		2019		2018
Balance as of January 1	$	9,868,404	$	9,048,796	$	7,100,488
Less: reinsurance reserves recoverable	1,927,624		1,708,272		1,693,028
Less: net deferred charge assets and gain liabilities on retroactive reinsurance	259,587		86,585		80,192

Less: cumulative effect of change in accounting principle on the determination of the allowance for estimated uncollectible reinsurance balances (1)	643		—		—
Net balance as of January 1	7,680,550		7,253,939		5,327,268
Net incurred losses and LAE:
Current period	405,178		580,074		533,081
Prior periods	10,748		34,105		(209,359)
Total net incurred losses and LAE	415,926		614,179		323,722
Net paid losses:
Current period	(71,989)		(179,461)		(176,172)
Prior periods	(1,413,500)		(1,609,009)		(1,158,614)
Total net paid losses	(1,485,489)		(1,788,470)		(1,334,786)
Effect of exchange rate movement	119,663		47,812		(145,243)
Acquired on purchase of subsidiaries	—		686		1,310,874
Assumed business	2,186,024		1,586,307		1,772,104
Ceded business	(154,926)		(33,260)		—
Reclassification to assets and liabilities held-for-sale	(216,808)		—		—
Net balance as of December 31	8,544,940		7,681,193		7,253,939
Plus: reinsurance reserves recoverable (2)	1,829,620		1,927,624		1,708,272
Plus: net deferred charge assets and gain liabilities on retroactive reinsurance	218,722		259,587		86,585
Balance as of December 31	$	10,593,282	$	9,868,404	$	9,048,796

(1) The Company adopted ASU 2016-13 and the related amendments on January 1, 2020. Refer to Note 2 - "Significant Accounting Policies" for further details. This amount excludes $0.4 million related to the adoption impact of ASU 2016-13 on StarStone U.S., which has been classified as a discontinued operation with the related assets and liabilities disclosed as held-for-sale on our consolidated balance sheets.


	2020
	Run-off		Legacy Underwriting		Corporate & Other		Total
Net losses paid	$	1,074,901	$	410,588	$	—	$	1,485,489
Net change in case and LAE reserves (1)	(453,080)		(87,107)		—		(540,187)
Net change in IBNR reserves (2)	(718,414)		30,790		—		(687,624)
Increase (reduction) in estimates of net ultimate losses	(96,593)		354,271		—		257,678

Increase (reduction) in provisions for unallocated LAE (3)	(48,765)		17,215		—		(31,550)
Amortization of deferred charge assets and deferred gain liabilities (4)	—		—		43,246		43,246
Amortization of fair value adjustments (5)	—		—		27,506		27,506
Changes in fair value - fair value option (6)	—		—		119,046		119,046
Net incurred losses and LAE	$	(145,358)	$	371,486	$	189,798	$	415,926


	2019
	Run-off		Legacy Underwriting		Corporate & Other		Total
Net losses paid	$	1,247,624	$	540,846	$	—	$	1,788,470
Net change in case and LAE reserves (1)	(530,891)		2,308		—		(528,583)
Net change in IBNR reserves (2)	(812,699)		17,995		—		(794,704)
Increase (reduction) in estimates of net ultimate losses	(95,966)		561,149		—		465,183

Increase (reduction) in provisions for unallocated LAE (3)	(57,404)		902		—		(56,502)
Amortization of deferred charge assets and deferred gain liabilities (4)	—		—		37,744		37,744
Amortization of fair value adjustments (5)	—		—		50,573		50,573
Changes in fair value - fair value option (6)	—		—		117,181		117,181
Net incurred losses and LAE	$	(153,370)	$	562,051	$	205,498	$	614,179


	2018
	Run-off		Legacy Underwriting		Corporate & Other		Total
Net losses paid	$	838,817	$	495,969	$	—	$	1,334,786
Net change in case and LAE reserves (1)	(547,420)		75,000		—		(472,420)
Net change in IBNR reserves (2)	(565,385)		58,591		—		(506,794)
Increase (reduction) in estimates of net ultimate losses	(273,988)		629,560		—		355,572

Increase (reduction) in provisions for unallocated LAE (3)	(65,401)		5,613		—		(59,788)
Amortization of deferred charge assets and deferred gain liabilities (4)	—		—		13,781		13,781
Amortization of fair value adjustments (5)	—		—		7,493		7,493
Changes in fair value - fair value option (6)	—		—		6,664		6,664
Net incurred losses and LAE	$	(339,389)	$	635,173	$	27,938	$	323,722

The liability for losses and LAE includes an amount determined from reported claims and an amount based on historical loss experience and industry statistics for IBNR using a variety of actuarial methods. Our loss reserves cover multiple lines of business, including workers' compensation, general casualty, asbestos and environmental, marine, aviation and transit, construction defects and other non-life lines of business. Our management, through our loss reserving committees, considers the reasonableness of loss reserves recommended by our actuaries, including actual loss development during the year.

Case reserves are recognized for known claims (including the cost of related litigation) when sufficient information has been reported to us to indicate the involvement of a specific insurance policy. We use considerable judgment in estimating losses for reported claims on an individual claim basis based upon our knowledge of the circumstances surrounding the claim, the severity of the injury or damage, the jurisdiction of the occurrence, the potential for ultimate exposure, the type of loss, and our experience with the line of business and policy provisions relating to the particular type of claim. The reserves for unpaid reported losses and LAE are established by management based on reports from brokers, ceding companies and insureds and represent the estimated ultimate cost of events or conditions that have been reported to, or specifically identified, by us. We also consider facts currently known and the current state of the law and coverage litigation.

IBNR reserves are established by management based on actuarially determined estimates of ultimate losses and loss expenses. We use generally accepted actuarial methodologies to estimate ultimate losses and LAE and those estimates are reviewed by management. In addition, the routine settlement of claims, at either below or above the carried advised loss reserve, updates historical loss development information to which actuarial methodologies are applied, often resulting in revised estimates of ultimate liabilities. On an annual basis, independent actuarial firms are retained by management to provide their estimates of ultimate losses and to review the estimates developed by our actuaries.

Within the annual loss reserve studies produced by either our actuaries or independent actuaries, exposures for each subsidiary are separated into homogeneous reserving categories for the purpose of estimating IBNR. Each reserving category contains either direct insurance or assumed reinsurance reserves and groups relatively similar types of risks and exposures (for example, asbestos, environmental, casualty, property) and lines of business written (for example, marine, aviation, non-marine). Based on the exposure characteristics and the nature of available data for each individual reserving category, a number of methodologies are applied. Recorded reserves for each category are selected from the actuarial indications produced by the various methodologies after consideration of exposure characteristics, data limitations and strengths and weaknesses of each method applied. This approach to estimating IBNR has been consistently adopted in the annual loss reserve studies for each period presented.

The estimation of unpaid claim liabilities at any given point in time is subject to a high degree of uncertainty for a number of reasons. A significant amount of time can lapse between the assumption of risk, the occurrence of a loss event, the reporting of the event to an insurance or reinsurance company and the ultimate payment of the claim on the loss event. Our actuarial methodologies include amongst other methodologies industry benchmarking which, under certain actuarial methods, compares the trend of our loss development to that of the industry. To the extent that the trend of our loss development compared to the industry changes in any period, it is likely to have an impact on our estimate of ultimate liabilities. Unpaid claim liabilities for property and casualty exposures in general are impacted by changes in the legal environment, jury awards, medical cost trends and general inflation. Certain estimates for unpaid claim liabilities involve considerable uncertainty due to significant coverage litigation, and it can be unclear whether past claim experience will be representative of future claim experience. Ultimate values for such claims cannot be estimated using reserving techniques that extrapolate losses to an ultimate basis using loss development factors, and the uncertainties surrounding the estimation of unpaid claim liabilities are not likely to be resolved in the near future. In addition, reserves are established to cover loss development related to both known and unasserted claims. Consequently, our subsequent estimates of ultimate losses and LAE, and our liability for losses and LAE, may differ materially from the amounts recorded in our consolidated financial statements.

In establishing the reserves for losses and LAE related to asbestos and environmental claims, management considers facts currently known and the current state of the law and coverage litigation environment. Liabilities are recognized for known claims (including the cost of related litigation) when sufficient information has been developed to indicate the involvement of a specific insurance policy, and management can reasonably estimate its liability. In addition, reserves have been established to cover additional exposures on both known and unreported claims. Estimates of the reserves are reviewed and updated continually. Developed case law and claim histories are still evolving for such claims, especially because significant uncertainty exists about the outcome of coverage litigation and whether past claim experience will be representative of future claim experience. In view of the changes in the legal and tort environment that affect the development of such claims, the uncertainties inherent in valuing asbestos and environmental claims are not likely to be resolved in the near future. Ultimate values for such claims cannot be estimated using traditional reserving techniques and there are significant uncertainties in estimating the amount of our potential losses for these claims. There can be no assurance that the reserves established by us will be adequate or will not be adversely affected by the development of other latent exposures.

The net liability for unpaid losses and LAE as of December 31, 2020 and 2019 included $1.9 billion and $2.1 billion, respectively, which represented an estimate of the net ultimate liability for asbestos and environmental claims. The gross liability for such claims as of December 31, 2020 and 2019 was $2.1 billion and $2.3 billion, respectively. For the years ended December 31, 2020 and 2019, our reserves for asbestos and environmental liabilities decreased by $178.2 million and increased by $419.9 million on a gross basis, respectively, and decreased by $227.2 million and increased by $374.7 million on a net basis, respectively. The decrease in 2020 was primarily due to net paid losses while the increase in 2019 was primarily due to acquisition activity, partially offset by net paid losses.

•Run-off - Loss development disclosures have been provided for the 10 latest acquisition years, in addition to disclosures for lines of business with material net losses and LAE reserve balances as of December 31, 2020, within those 10 latest acquisition years, also being provided. The disaggregated lines of business include general casualty, workers’ compensation, motor and professional indemnity and directors and officers.

•The fair value adjustments related to retroactive reinsurance agreements for which we have elected the fair value option are excluded from the loss development tables, however the undiscounted incurred losses, cumulative paid losses and allocated LAE related to retroactive reinsurance agreements for which we have elected the fair value option are included in the loss development tables;

•In the incurred loss development tables, the incurred effect of agreeing a commutation or policy buyback is included in the period in which the commutation or policy buyback is contractually agreed. We reflect the net incurred loss development arising from a commutation or policy buyback in the fiscal year in which a commutation or policy buyback is contractually agreed, and the net incurred loss development is allocated to the appropriate accident year. The claim will generally have been adjusted throughout its lifetime and the amounts recorded in prior years (which is considered supplementary information) remain unchanged in our loss development tables, such that the incurred amount that we recognize in the year in which a commutation or policy buyback is contractually agreed represents the effect of the commutation or policy buyback settlement compared to the carried net loss and LAE reserve balance in the prior year. We do not recast prior years to remove commuted or bought back claims, since this practice would eliminate any historical favorable or adverse development we may have experienced on the commuted loss and LAE reserves. Reserves that have been commuted or bought back are not adjusted in future years but the commuted or bought back value remains in our total incurred losses;

•In the cumulative paid losses tables, we reflect the amount of the commutation or policy buyback settlements in the year in which they are actually paid or received, and the net payment is allocated to the appropriate accident year. The claim or recoverable may have recorded payments or receipts throughout its lifetime and amounts recorded in prior years (which is considered supplementary information) remain unchanged in our loss development tables, such that the amounts paid or received that we recognize in the year in which a commutation or policy buyback is paid or received represents the amount actually paid or received. We do not recast prior years to remove payments or receipts related to commutations or policy buybacks, since we consider commutations and policy buybacks a key component of our business and are reflective of our ability to effectively manage acquired losses and LAE liabilities. Payments relating to commutations and policy buybacks are not adjusted in future years but the payments remain in our total cumulative paid losses;

•The amounts included within the loss development tables for the years ended December 31, 2011 through to December 31, 2019 (and in the case of StarStone, from April 1, 2014 its acquisition date through to December 31, 2019), as well as the historical average annual percentage payout ratios as of December 31, 2020, are presented as supplementary information and are therefore unaudited;

•All the incurred and paid loss activity presented within the loss development tables provided below, exclude intercompany cessions. Upon the sale of StarStone U.S. to Core Specialty on November 30, 2020, the incurred and paid loss development activity related to the cessions from StarStone U.S. to our other subsidiaries were no longer eliminated on consolidation and have been included within the loss development tables presented below;

•For the Run-off segment loss development tables, all information for both acquisitions and retroactive reinsurance agreements is presented prospectively. As the loss reserves are effectively re-underwritten at the date that they are acquired or assumed, we believe that the historical loss development prior to their acquisition is not relevant with respect to our own experience managing these acquired loss reserves. In addition, the information required to prepare the loss development disclosures on a retrospective basis is not always available to us and a mixed presentation approach would result in loss development tables that are not entirely reflective of the actual loss development of the acquired loss reserves;

•For the Run-off segment we have also presented the net incurred and paid losses and ALAE information by calendar year as well as IBNR and claim counts for accident years older than 10 years on a single row within the loss development tables. This presentation differs from the typical approach where only the net outstanding losses and LAE reserves are presented as a reconciling item at the bottom of the loss development tables. The additional detailed disclosures are provided on a voluntary basis and the inclusion of the disclosures is to provide additional information to the users of our financial statements and to also enable the reconciliation of our total loss reserves by acquisition year and by significant line of business;

•For the Legacy Underwriting segment loss development tables, all information has been presented on a prospective basis from the date of our acquisition of StarStone, which was effective on April 1, 2014. Providing pre-acquisition incurred and paid losses by accident year for years prior to 2014 was determined to be impracticable due to significant data limitations; and

The historical amounts disclosed within the loss development tables for all the acquisition years and lines of business presented below are on a constant-currency basis, which is achieved by using constant foreign exchange rates between periods in the loss development tables, and translating prior period amounts denominated in currencies other than the U.S. dollar, which is our reporting currency, using the closing exchange rates as of December 31, 2020.

The impact of this exchange rate conversion is to show the change between periods exclusive of the effect of exchange rate fluctuations, which would otherwise distort the change in incurred losses and the cash flow patterns associated with those incurred losses shown within the loss development tables. The change in net incurred losses shown within the loss development tables will, however, differ from other U.S. GAAP disclosures of incurred current and prior period reserve development amounts, which include the effect of exchange rate fluctuations.

Establishing an estimate for loss reserves involves various assumptions and judgments, therefore, the information contained within the loss development disclosures only allows readers or users of our consolidated financial statements to understand, at the summary level presented in the development tables, the change over time in our reported incurred loss estimates as well as the nature and patterns of the cash flows associated with those estimates. We, therefore, believe that the information provided within the loss development tables disclosed below is of limited use for independent analysis or application of standard actuarial estimations, and any results obtained from doing so should be interpreted with caution.

•Run-off - The claim frequency information for the exposures included within our Run-off lines of business includes direct and assumed open and closed claims by accident year at the claimant level. Reported claims that are closed without a payment are included within our cumulative number of reported claims because we typically incur claim adjustment expenses on them prior to their closure. The claim count numbers exclude counts related to claims within policy deductibles where the insured is responsible for the payment of losses within the deductible layer. Individual claim counts related to certain assumed reinsurance contracts such as excess-of-loss and quota share treaties are not available to us, and the losses arising from these treaties have been treated as single claims for the purposes of determining claim counts. Therefore, each treaty year within the reinsurance contract is deemed a single claim because the detailed underlying individual claim information is generally not reported to us by our cedants; and

•Legacy Underwriting - The claim frequency information is determined at the claimant level for the exposures within the lines of business related to these segments. Our claims system assigns a unique claim identifier to each reported claim we receive. Each unique claim identifier is deemed to be a single claim, irrespective of whether the claim remains open or has been closed with or without payment. For certain insurance facilities and business produced or managed by managing general agents, coverholders and third party administrators where the underlying claims data is reported to us in an aggregated format, the information necessary to provide cumulative claims frequency is not available. In such cases, we typically record a “block” claim in our system. This also applies to a small amount of assumed reinsurance business that we write where, similarly, the underlying claims data is reported to us in an aggregated format. In such instances, each assumed reinsurance contract is deemed a single claim.

•Claim counts are presented only on a reported and not on an ultimate basis. Therefore, reported claim counts include open claims which have outstanding reserves but exclude IBNR claims. As such the reported claims are consistent with reported losses, which can be calculated by subtracting IBNR losses from incurred losses. However, the reported claim counts are inconsistent with the losses in the incurred loss development tables, which include IBNR losses, and to losses in the paid loss development tables, which exclude outstanding reserves;

•Run-off - The annual percentage payout disclosures for our Run-off segment are based on the payout of incurred claims by age, net of reinsurance. For our Run-off segment, claims aging reflects the number of years that have lapsed since the original acquisition of the related net liability for losses and LAE reserves to the date the claim is paid. There may be occasions where, due to our claims management strategies (including commutations and policy buy-backs) or due to the timing of claims payments relative to the associated recovery, the cash received from reinsurance recoveries is greater than the cash paid out to our claimants, (i.e. a net recovery rather than a net payout for a particular calendar year), thereby resulting in a negative annual percentage payout for that calendar year.


	2020		2019		2018
Balance as of January 1	$	8,683,983	$	8,132,941	$	6,390,218
Less: reinsurance reserves recoverable	1,645,352		1,511,206		1,522,438

Plus: cumulative effect of change in accounting principal on allowance for estimated uncollectible reinsurance (1)	703		—		—
Net balance as of January 1	7,039,334		6,621,735		4,867,780
Net incurred losses and LAE:
Current period	30,165		123,559		12,451
Prior periods	(175,523)		(276,929)		(351,840)
Total net incurred losses and LAE	(145,358)		(153,370)		(339,389)
Net paid losses:
Current period	(9,990)		(64,820)		(5)
Prior periods	(1,064,911)		(1,182,804)		(838,812)
Total net paid losses	(1,074,901)		(1,247,624)		(838,817)
Effect of exchange rate movement	89,755		53,411		(143,765)
Acquired on purchase of subsidiaries	—		686		1,214,871
Assumed business	2,215,620		1,797,053		1,861,055
Ceded business	(154,926)		(33,260)		—
Net balance as of December 31	7,969,524		7,038,631		6,621,735
Plus: reinsurance reserves recoverable(2)	1,463,001		1,645,352		1,511,206

Balance as of December 31	$	9,432,525	$	8,683,983	$	8,132,941


	2020						2019						2018
	Prior Period		Current Period		Total		Prior Period		Current Period		Total		Prior Period		Current Period		Total
Net losses paid	$	1,064,911	$	9,990	$	1,074,901	$	1,182,804	$	64,820	$	1,247,624	$	838,812	$	5	$	838,817
Net change in case and LAE reserves (1)	(449,610)		(3,470)		(453,080)		(553,996)		23,105		(530,891)		(552,124)		4,704		(547,420)
Net change in IBNR reserves (2)	(742,417)		24,003		(718,414)		(847,893)		35,194		(812,699)		(573,127)		7,742		(565,385)
Increase (reduction) in estimates of net ultimate losses	(127,116)		30,523		(96,593)		(219,085)		123,119		(95,966)		(286,439)		12,451		(273,988)

Increase (reduction) in provisions for unallocated LAE (3)	(48,407)		(358)		(48,765)		(57,844)		440		(57,404)		(65,401)		—		(65,401)



Net incurred losses and LAE	$	(175,523)	$	30,165	$	(145,358)	$	(276,929)	$	123,559	$	(153,370)	$	(351,840)	$	12,451	$	(339,389)


	2020
	Net losses paid		Net change in case and LAE reserves		Net change in IBNR reserves		Increase (reduction) in estimates of net ultimate losses
Asbestos	$	132,853	$	(1,300)	$	(150,054)	$	(18,501)
Environmental	23,866		(266)		(36,362)		(12,762)
General Casualty	170,502		(68,744)		(127,421)		(25,663)
Workers' Compensation	142,790		(176,927)		(149,198)		(183,335)
Marine, aviation and transit	33,927		(14,458)		(50,558)		(31,089)
Construction defect	27,476		(6,092)		(13,382)		8,002
Professional indemnity/ Directors & Officers	63,878		3,698		(79,181)		(11,605)
Motor	349,366		(106,561)		(95,040)		147,765
Property	71,422		(24,356)		(64,331)		(17,265)
All Other	48,831		(54,604)		23,110		17,337
Total	$	1,064,911	$	(449,610)	$	(742,417)	$	(127,116)

Workers' Compensation - The workers’ compensation line of business experienced a $183.3 million reduction in estimates of net ultimate losses as a result of favorable actual development versus expected development across nearly all our acquired companies and assumed portfolios. We continue to drive favorable loss experience by proactively settling claims for less than the current case reserves. During 2020, we paid net losses of $142.8 million and released case and LAE reserves of $176.9 million. This represents a decline in reported losses of $34.1 million for the year. As a result of the favorable development in our data, our actuarial analyses indicated and resulted in a release of $149.2 million of IBNR reserves, primarily attributed to a settlement of an outwards reinsurance agreement resulting in the reduction in gross ultimate losses inuring to our benefit.

Marine, aviation and transit - We experienced $31.1 million of favorable development in our marine, aviation and transit line of business. The reduction in net ultimate loss reserves was driven by a number of favorable outcomes on certain large claims from our London based portfolios and better actual than expected experience of reported losses across most reserve segments which led to releases of IBNR reserves as a result of our annual actuarial analyses.

General casualty - Our general casualty line of business experienced $25.7 million in favorable loss development which was the result of better actual than expected claim emergence across several portfolios including a new portfolio acquired in 2020 that underwent its first actuarial analysis by our outside actuarial consultant. To date, we have not experienced adverse social inflation in our general casualty line of business since we are generally proactive in settling claims early for fair value which reduces legal costs for both the defendant and plaintiff.

Motor - The experience in the motor line was adverse by $147.8 million due to higher than expected severity related to a recent assumed loss portfolio transfer transaction. The case reserves were significantly strengthened when we transferred the claim handling to a new third-party administrator with specialist experience in commercial automobile exposures. Along with the new third-party administrator, we have implemented several claim initiatives aimed at reducing defense costs, settling claims earlier, lowering claims severity and increased governance and technical oversight.


	2019
	Net losses paid		Net change in case and LAE reserves		Net change in IBNR reserves		Increase (reduction) in estimates of net ultimate losses
Asbestos	$	118,557	$	35,003	$	(146,749)	$	6,811
Environmental	16,899		13,796		(15,707)		14,988
General Casualty	175,044		(89,968)		(91,818)		(6,742)
Workers' Compensation	208,961		(156,435)		(188,944)		(136,418)
Marine, aviation and transit	82,058		(77,958)		(24,508)		(20,408)
Construction defect	32,078		(8,313)		(25,025)		(1,260)
Professional indemnity/ Directors & Officers	103,413		(36,986)		(104,984)		(38,557)
Motor	276,563		(134,127)		(179,887)		(37,451)
Property	94,093		(73,259)		(7,358)		13,476
All Other	75,138		(25,749)		(62,913)		(13,524)
Total	$	1,182,804	$	(553,996)	$	(847,893)	$	(219,085)

Workers' Compensation - A $136.4 million reduction in estimates of net ultimate losses in our workers' compensation line of business arose across multiple portfolios, where reported loss development was generally significantly less than expected development. The lower than expected actual development was driven by significant proactive settlement activity on individual claimants where we were able to settle claims lower than the case reserve estimates. For example, in two of our portfolios we observed favorable reported loss development, where we paid $39.3 million in loss payments to release a corresponding $53.6 million of associated case reserves for $14.3 million in favorable reported loss development. These settlement activities and the favorable actual loss development versus expected loss development, led to a change in the actuarial assumptions in the annual reserve study that reflect this favorable loss development.

We also continue to actively seek to commute policies in our workers' compensation line of business when possible, and where the commutation of the policy is settled at a level below the carried value of the loss reserves, we record a reduction in our estimates of net ultimate losses. During 2019, we completed 6 commutations across several workers' compensation portfolios that contributed to a $6.1 million reduction in estimates of net ultimate losses.

Professional Indemnity/Directors & Officers - A $38.6 million reduction in estimates of net ultimate losses in our professional indemnity/directors’ & officers’ line of business arose based on the annual actuarial analysis which reflected the better than expected loss development during 2019. As part of the reserve analysis, an in-depth review of recently acquired portfolios’ ceded reinsurance programs led to an increase in the ceded reinsurance asset of $13.5 million, which is a reduction in net ultimate losses.

Asbestos - A $6.8 million increase in estimates of net ultimate losses in our asbestos line of business arose primarily due to changes in our actuarial assumptions related to dismissal rates. During 2019, the number of new defendants and filed claims was less than expected, but this was offset by a lowering of the dismissal rate. In asbestos, the dismissal rates are extremely high as many of the claims do not have merit against the insured. However, we have seen a trend in both US and UK exposure of the dismissal rate decreasing in the range of 2 to 3 percentage points.


	2018
	Net losses paid		Net change in case and LAE reserves		Net change in IBNR reserves		Increase (reduction) in estimates of net ultimate losses
Asbestos	$	108,248	$	(21,535)	$	(151,662)	$	(64,949)
Environmental	21,273		479		(7,599)		14,153
General Casualty	141,624		(115,240)		(60,828)		(34,444)
Workers' Compensation	139,226		(178,138)		(115,648)		(154,560)
Marine, aviation and transit	67,831		(44,200)		(21,188)		2,443
Construction defect	22,182		(7,257)		(33,146)		(18,221)
Professional indemnity/ Directors & Officers	161,797		(11,159)		(130,957)		19,681
Motor	104,182		(109,962)		(34,215)		(39,995)
Property	22,178		(24,271)		(11,497)		(13,590)
All Other	50,271		(40,841)		(6,387)		3,043
Total	$	838,812	$	(552,124)	$	(573,127)	$	(286,439)

Workers' Compensation - The $154.6 million reduction in estimates of net ultimate losses in our workers' compensation line of business arose across multiple portfolios, where reported incurred loss development was generally significantly less than expected. When actual development is less than expected for a sustained period of time across a significant volume of exposures, an updated actuarial analysis tends to indicate reductions in IBNR reserves. Updates to actuarial analysis, factoring in the less-than-expected reported incurred loss development for the year, is the primary driver of the reduction to our Workers' Compensation net ultimate loss estimates.

For certain of our portfolios, the lower than expected actual development was driven by significant proactive settlement activity on individual claimants where we were able to close open claims earlier than was indicated by our original payout patterns, and in other portfolios, based on the review of recent loss development activity we revised our actuarial development "tail factor" assumption, which led to a reduction in net ultimate losses. For example, in one portfolio we observed favorable incurred loss development, primarily relating to accident years 1995 through 2005 where we paid $22.7 million in loss payments to release a corresponding $37.0 million of associated case reserves for $14.3 million in favorable incurred loss development.

For acquired portfolios of workers' compensation business, we have utilized our subsidiary, Paladin Managed Care Services ("Paladin"), to assist us in reviewing claims. Paladin generally produces savings related to medical expense liabilities over and above savings achieved by prior vendors of such services, and the savings lead to actual development that is less than expected, thereby driving reductions to the estimates of net ultimate losses. In one particular program, our claims personnel pursued a proactive strategy of settling with numerous workers' compensation claimants whose injuries arose in recent accident years. For this portfolio, the claims team reduced the open inventory of claims by 78% during 2018. This reduction in exposure, when incorporated into an updated actuarial analysis, led to a reduction in our estimate of ultimate net losses of $30.2 million, primarily relating to accident years 2010 through 2014.

We also continue to actively seek commutations on policies when possible, and where the commutation of the policy is settled at a level below the carried value of the loss reserves, we record a reduction in our estimates of net ultimate losses. During 2018, we completed 7 commutations across several portfolios that contributed to an $11.2 million the reduction in estimates of net ultimate losses.

Asbestos - The $64.9 million reduction in estimates of net ultimate losses in our asbestos line of business arose primarily due to one asbestos portfolio where lower than expected volume of claims reported and a lower than expected severity on claims settled in the period, when projected to net ultimate losses through actuarial methodologies, resulted in a significant reduction in estimates of net ultimate losses. The volume of claims reported was 3% less than expected and the average cost per claim was 5% less than expected. Across our other asbestos portfolios, we completed 8 commutations and 2 policy buy-backs contributing to a $9.5 million reduction in estimates of net ultimate losses.


	2020
	Gross						Net
	OLR		IBNR		Total		OLR		IBNR		Total
	(in thousands of U.S. dollars)
Asbestos	$	544,438	$	1,234,101	$	1,778,539	$	464,102	$	1,122,021	$	1,586,123
Environmental	184,783		118,111		302,894		164,709		100,339		265,048
General casualty	610,437		1,279,991		1,890,428		492,039		1,247,662		1,739,701
Workers' compensation/personal accident	1,087,324		918,238		2,005,562		912,068		776,941		1,689,009
Marine, aviation and transit	271,469		73,081		344,550		229,464		56,414		285,878
Construction defect	23,380		85,578		108,958		23,109		83,039		106,148
Professional indemnity/Directors & Officers	764,768		336,705		1,101,473		526,333		307,349		833,682
Motor	619,682		355,044		974,726		451,097		283,576		734,673
Property	116,398		35,832		152,230		97,826		34,182		132,008
Other	217,746		204,819		422,565		141,448		121,893		263,341
	$	4,440,425	$	4,641,500	$	9,081,925	$	3,502,195	$	4,133,416	$	7,635,611




ULAE					350,600						333,913
Total					$	9,432,525					$	7,969,524


	2019
	Gross						Net
	OLR		IBNR		Total		OLR		IBNR		Total
	(in thousands of U.S. dollars)
Asbestos	$	542,681	$	1,373,678	$	1,916,359	$	490,117	$	1,271,982	$	1,762,099
Environmental	187,165		156,121		343,286		173,878		142,351		316,229
General casualty	501,863		489,129		990,992		399,396		421,426		820,822
Workers' compensation/personal accident	1,270,530		977,808		2,248,338		963,578		751,074		1,714,652
Marine, aviation and transit	290,067		121,577		411,644		244,611		100,135		344,746
Construction defect	29,772		98,312		128,084		29,245		94,888		124,133
Professional indemnity/Directors & Officers	693,760		265,490		959,250		485,478		170,926		656,404
Motor	480,668		233,806		714,474		317,829		165,543		483,372
Property	140,620		63,604		204,224		122,010		56,450		178,460
Other	269,956		165,882		435,838		208,647		97,573		306,220
	$	4,407,082	$	3,945,407	$	8,352,489	$	3,434,789	$	3,272,348	$	6,707,137




ULAE					331,494						331,494
Total					$	8,683,983					$	7,038,631


	Acquisition Year
	2010 and Prior		2011		2012		2013		2014		2015		2016		2017		2018		2019		2020		Total
Asbestos	$	142,028	$	—	$	—	$	7,767	$	—	$	—	$	407,958	$	726,901	$	1,105	$	277,947	$	—	$	1,563,706
Environmental	42,356		—		—		—		—		—		89,865		22,891		11,203		95,072		—		261,387
General casualty	52,582		13,270		9,983		16,696		31,610		34,704		3,727		44,551		228,419		218,995		1,077,908		1,732,445
Workers' compensation/personal accident	42,908		125,649		—		48,207		—		287,653		219,157		53,659		322,737		387,438		199,864		1,687,272
Marine, aviation and transit	8,760		2,747		—		(188)		10,592		1,616		32		77,321		106,431		56,709		19,848		283,868
Construction defect	43		—		—		—		—		36,258		14,289		18,836		—		36,709		—		106,135
Professional indemnity/Directors & Officers	7,539		9,564		23,210		—		20,942		—		76,314		—		331,676		130,906		232,934		833,085
Motor	12,452		201		276		—		1,465		13,147		—		3,710		260,797		17,899		422,321		732,268
Property	3,301		161		7,008		—		18,165		3,880		465		(114)		47,270		39,286		10,887		130,309
All Other	17,473		854		2,696		4,260		9,676		6,959		23,582		94,499		18,222		78,474		—		256,695
Total	$	329,442	$	152,446	$	43,173	$	76,742	$	92,450	$	384,217	$	835,389	$	1,042,254	$	1,327,860	$	1,339,435	$	1,963,762	$	7,587,170


	2020
	Total Net Reserves per all Acquisition Years		Provision for Bad Debt		Total Net Reserves
Asbestos	$	1,563,706	$	22,417	$	1,586,123
Environmental	261,387		3,661		265,048
General casualty	1,732,445		7,256		1,739,701
Workers' compensation/personal accident	1,687,272		1,737		1,689,009
Marine, aviation and transit	283,868		2,010		285,878
Construction defect	106,135		13		106,148
Professional indemnity/Directors & Officers	833,085		597		833,682
Motor	732,268		2,405		734,673
Property	130,309		1,699		132,008
All Other	256,695		6,646		263,341
Total	$	7,587,170	$	48,441	$	7,635,611

Our Run-off segment is unique within the insurance industry in that legacy reserves are continuously being acquired and added to this segment through business acquisitions or through retroactive reinsurance agreements. Accordingly, it would not be appropriate to extrapolate redundancies or deficiencies into the future from the loss development tables provided below. Acquired and assumed reserves arising from business acquisitions and retroactive reinsurance agreements are presented on a full prospective basis.

The following tables set forth information about incurred and paid loss development, total IBNR reserves and cumulative loss frequency related to our 2011 through 2020 acquisition years within the Run-off segment as of December 31, 2020. In addition, we have also presented loss development tables for the significant lines of business within certain acquisition years. The information related to incurred and paid loss development for the years ended December 31, 2011 through 2019 is presented as supplementary information and is therefore unaudited.


Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance																					As of December 31, 2020
			For the Years Ended December 31,
Accident Year	Total Net Reserves Acquired		2011 (unaudited)		2012 (unaudited)		2013 (unaudited)		2014 (unaudited)		2015 (unaudited)		2016 (unaudited)		2017 (unaudited)		2018 (unaudited)		2019 (unaudited)				2020			IBNR	Cumulative Number of Claims
2010 and Prior	$	597,263	$	621,819	$	589,004	$	489,877	$	426,777	$	375,227	$	319,423	$	274,136	$	261,234	$	240,808	$	229,458		$	17,493	112,837
2011	—		102		36		45		54		61		71		79		86		93		100			—		19
2012	—				122		11		10		10		10		17		18		17		17			—		7
2013	—						23		43		15		15		15		15		15		15			—		16
2014	—								1		3		3		3		18		15		14			2		14
2015	—										—		(2)		(2)		32		24		19			—		1
2016	—												2		(139)		(111)		(99)		(88)			7		2
2017	—														—		21		15		17			1		2
2018	—																7		8		8			1		1
2019	—																		—		2			1		1
2020	—																				2			1		1
	$	597,263																			$	229,564		$	17,506	112,901

Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
			For The Years Ended December 31,
Accident Year			2011 (unaudited)		2012 (unaudited)		2013 (unaudited)		2014 (unaudited)		2015 (unaudited)		2016 (unaudited)		2017 (unaudited)		2018 (unaudited)		2019 (unaudited)		2020
2010 and Prior			$	58,934	$	98,969	$	90,711	$	24,238	$	19,370	$	27,563	$	19,697	$	31,108	$	56,741	$	77,051
2011			27		36		46		54		61		71		79		86		93		100
2012					6		10		10		10		10		17		17		17		17
2013							6		11		15		15		15		15		15		15
2014									1		3		3		3		4		7		7
2015											(1)		(2)		(2)		2		11		18
2016													2		(153)		(125)		(114)		(105)
2017															—		3		6		10
2018																	1		4		5
2019																			—		—
2020																					—
																					$	77,118
Total outstanding liabilities for unpaid losses and LAE, net of reinsurance																	$	152,446


Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance																	As of December 31, 2020
			For the Years Ended December 31,
Accident Year	Total Net Reserves Acquired		2012 (unaudited)		2013 (unaudited)		2014 (unaudited)		2015 (unaudited)		2016 (unaudited)		2017 (unaudited)		2018 (unaudited)						2019 (unaudited)	2020			IBNR	Cumulative Number of Claims
2010 and Prior	$	326,229	$	328,419	$	321,295	$	312,510	$	297,081	$	286,660	$	277,778	$	269,004	$	263,472	$	252,318		$	10,889	47,773
2011	1,487		1,466		1,336		1,182		1,095		1,072		1,049		1,032		1,032		1,032			—		5
2012	55		81		49		363		344		406		397		167		167		167			—		6
2013	—				946		119		427		433		421		136		136		136			—		5
2014	(60)						2,991		3,108		1,552		1,300		1,195		1,146		1,068			1		7
2015	—								729		1,517		739		739		739		739			—		5
2016	(485)										67		1,266		1,113		1,059		445			37		2
2017	—												75		167		100		100			—		4
2018	(59)														—		154		74			4		1
2019	(123)																274		145			11		4
2020	—																		164			—		3
	$	327,044																	$	256,388		$	10,942	47,815

Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
			For The Years Ended December 31,
Accident Year			2012 (unaudited)		2013 (unaudited)		2014 (unaudited)		2015 (unaudited)		2016 (unaudited)		2017 (unaudited)		2018 (unaudited)		2019 (unaudited)		2020
2010 and Prior			$	3,194	$	70,440	$	112,966	$	144,553	$	169,781	$	180,270	$	194,011	$	204,482	$	209,656
2011			120		496		742		866		928		990		1,032		1,032		1,032
2012			31		49		49		52		167		167		167		167		167
2013					109		119		136		136		136		136		136		136
2014							67		224		459		675		864		989		1,053
2015									112		117		739		739		739		739
2016											3		56		98		98		98
2017													13		43		100		100
2018															—		30		34
2019																	18		36
2020																			164
																			$	213,215
Total outstanding liabilities for unpaid losses and LAE, net of reinsurance													$	43,173


Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance													As of December 31, 2020
			For the Years Ended December 31,
Accident Year	Total Net Reserves Acquired		2013 (unaudited)		2014 (unaudited)		2015 (unaudited)		2016 (unaudited)		2017 (unaudited)						2018 (unaudited)		2019 (unaudited)	2020			IBNR	Cumulative Number of Claims
2010 and Prior	$	320,974	$	349,297	$	354,585	$	361,812	$	356,522	$	340,248	$	326,851	$	313,347	$	314,497		$	16,353	56,441
2011	96,929		102,288		100,482		100,243		95,848		87,913		86,403		85,919		81,616			2,700		11,185
2012	131,119		127,323		121,364		118,085		114,772		110,045		107,853		108,025		105,564			1,831		10,423
2013	13,062		90,739		91,634		88,920		85,791		81,732		80,036		80,091		79,174			1,073		5,656
2014	—				4,514		3,714		3,425		16,800		16,225		16,304		16,269			55		174
2015	—						265		280		982		329		250		237			42		2
2016	—								103		71		70		69		69			1		1
2017	—										30		13		13		13			—		1
2018	—												22		17		18			—		1
2019	—														13		15			—		1
2020	—																61			4		1
	$	562,084															$	597,533		$	22,059	83,886

Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
			For The Years Ended December 31,
Accident Year			2013 (unaudited)		2014 (unaudited)		2015 (unaudited)		2016 (unaudited)		2017 (unaudited)		2018 (unaudited)		2019 (unaudited)		2020
2010 and Prior			$	74,418	$	134,409	$	186,762	$	222,891	$	229,942	$	243,755	$	249,023	$	258,436
2011			30,323		52,455		63,952		70,498		75,055		77,290		79,112		73,282
2012			33,361		59,095		74,663		86,916		92,445		96,780		99,781		98,096
2013			17,022		37,653		52,638		62,876		68,866		71,487		74,556		74,472
2014					993		1,747		2,256		15,804		15,959		16,123		16,164
2015							43		102		112		165		190		191
2016									34		64		65		66		67
2017											9		13		13		13
2018													13		17		18
2019															8		15
2020																	37
																	$	520,791
Total outstanding liabilities for unpaid losses and LAE, net of reinsurance									$	76,742


Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance									As of December 31, 2020
			For the Years Ended December 31,
Accident Year	Total Net Reserves Acquired		2014 (unaudited)		2015 (unaudited)		2016 (unaudited)						2017 (unaudited)		2018 (unaudited)		2019 (unaudited)	2020			IBNR	Cumulative Number of Claims
2010 and Prior	$	142,341	$	133,678	$	123,973	$	155,274	$	142,256	$	141,058	$	145,889	$	144,874		$	6,454	12,014
2011	74,248		129,149		154,394		134,137		136,257		137,806		139,997		135,181			10,057		6,228
2012	141,597		147,347		178,577		187,062		179,745		165,821		162,740		160,769			10,449		6,393
2013	86,920		76,313		95,125		83,564		88,189		90,387		88,391		90,951			8,947		3,173
2014	—		13,802		9,554		14,506		7,438		6,590		6,954		7,098			1,708		1,112
2015	—				33,549		15,553		20,741		18,929		17,206		17,090			72		183
2016	—						330		1,108		4,594		771		724			89		45
2017	—								5,078		3,893		8,200		8,463			24		37
2018	—										6		5		82			—		19
2019	—												—		—			—		10
2020	—														—			—		6
	$	445,106													$	565,232		$	37,800	29,220

Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
			For The Years Ended December 31,
Accident Year			2014 (unaudited)		2015 (unaudited)		2016 (unaudited)		2017 (unaudited)		2018 (unaudited)		2019 (unaudited)		2020
2010 and Prior			$	36,509	$	82,699	$	103,197	$	118,857	$	120,309	$	121,847	$	127,622
2011			84,031		109,675		110,575		113,701		120,155		123,335		123,364
2012			47,495		90,307		120,910		130,001		130,105		133,900		133,026
2013			21,752		40,817		48,223		56,941		65,073		65,625		66,225
2014			1,462		2,504		3,293		3,989		6,147		6,660		6,654
2015					1,741		4,308		11,566		13,371		13,417		13,473
2016							20		556		558		561		559
2017									537		1,541		1,238		1,778
2018											5		5		81
2019													—		—
2020															—
															$	472,782
Total outstanding liabilities for unpaid losses and LAE, net of reinsurance					$	92,450


Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance							As of December 31, 2020
					For the Years Ended December 31,
Accident Year	Total Net Reserves Acquired				2015 (unaudited)						2016 (unaudited)		2017 (unaudited)		2018 (unaudited)		2019 (unaudited)	2020			IBNR	Cumulative Number of Claims
2010 and Prior	$	1,003,949			$	933,328	$	640,324	$	594,466	$	564,502	$	521,598	$	505,379		$	49,461	13,557
2011	124,727				137,429		131,303		129,657		128,155		128,672		126,764			14,306		5,587
2012	179,136				187,488		197,895		201,017		194,277		193,553		192,426			18,110		4,885
2013	229,590				189,838		196,582		199,983		189,737		185,101		184,590			13,855		4,699
2014	144,392				143,193		137,668		142,937		137,541		152,478		147,567			7,413		7,783
2015	23,750				70,276		69,322		66,152		64,974		69,465		73,256			6,959		10,997
2016	—						14,872		13,141		13,440		14,576		12,868			2,178		14,283
2017	—								4,095		4,527		5,277		6,860			345		3,534
2018	—										3,055		1,889		1,805			985		400
2019	—												1,838		1,873			1,831		51
2020	—														1,951			1,962		3
	$	1,705,544													$	1,255,339		$	117,405	65,779

Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
					For The Years Ended December 31,
Accident Year					2015 (unaudited)		2016 (unaudited)		2017 (unaudited)		2018 (unaudited)		2019 (unaudited)		2020
2010 and Prior					$	32,819	$	83,350	$	134,737	$	166,983	$	195,205	$	220,984
2011					33,827		55,115		71,023		86,397		98,000		105,178
2012					52,728		94,831		119,520		142,358		158,620		168,213
2013					46,761		89,930		120,509		145,788		159,767		164,215
2014					30,747		64,475		91,016		109,451		125,619		133,094
2015					20,653		38,709		46,668		51,994		59,963		63,181
2016							5,603		7,371		8,687		9,861		10,321
2017									2,321		3,925		4,767		5,047
2018											567		862		820
2019													45		65
2020															4
															$	871,122
Total outstanding liabilities for unpaid losses and LAE, net of reinsurance			$	384,217


Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance							As of December 31, 2020
					For the Years Ended December 31,
Accident Year	Total Net Reserves Acquired				2015 (unaudited)						2016 (unaudited)		2017 (unaudited)		2018 (unaudited)		2019 (unaudited)	2020			IBNR	Cumulative Number of Claims
2010 and Prior	$	953,178			$	868,509	$	569,692	$	518,764	$	490,534	$	449,380	$	434,422		$	40,504	8,605
2011	76,789				73,723		69,009		68,013		66,781		67,741		65,825			3,685		1,241
2012	120,298				110,007		108,251		106,625		100,187		99,212		98,733			4,613		1,809
2013	146,237				124,726		122,238		121,010		113,056		112,677		113,414			5,595		2,386
2014	82,141				86,852		82,038		83,095		78,389		78,948		80,307			1,513		3,686
2015	4,089				18,647		12,623		13,488		12,295		11,309		11,337			557		2,900
2016	—						873		955		583		536		514			52		38
2017	—								358		61		41		33			13		10
2018	—										—		5		3			—		1
2019	—												1		3			1		1
2020	—														—			—		—
	$	1,382,732													$	804,591		$	56,533	20,677

Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
					For The Years Ended December 31,
Accident Year					2015 (unaudited)		2016 (unaudited)		2017 (unaudited)		2018 (unaudited)		2019 (unaudited)		2020
2010 and Prior					$	20,630	$	65,008	$	107,906	$	132,025	$	155,329	$	177,205
2011					16,032		30,462		39,635		50,470		55,595		58,420
2012					25,103		52,851		66,092		79,367		88,369		91,332
2013					27,737		55,675		75,065		91,559		100,890		104,265
2014					17,824		38,051		53,308		65,561		72,696		75,781
2015					3,034		5,672		7,917		9,169		9,248		9,461
2016							134		363		417		447		452
2017									2		10		18		19
2018											—		1		2
2019													—		1
2020															—
															$	516,938
Total outstanding liabilities for unpaid losses and LAE, net of reinsurance			$	287,653


Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance					As of December 31, 2020
										For the Years Ended December 31,
Accident Year	Total Net Reserves Acquired					2016 (unaudited)		2017 (unaudited)		2018 (unaudited)		2019 (unaudited)		2020		IBNR		Cumulative Number of Claims
2010 and Prior	$	1,304,938				$	1,316,544	$	1,346,575	$	1,321,289	$	1,322,161	$	1,361,353	$	305,042	24,449
2011	17,291					17,291		19,920		19,754		18,829		18,609		2,266		861
2012	13,717					13,717		17,020		14,765		12,717		13,037		1,829		809
2013	373					373		1,312		1,237		1,120		914		603		127
2014	391					391		1,380		1,056		869		817		310		57
2015	—					—		—		—		—		—		—		—
2016	—					—		—		—		—		—		—		—
2017	—							—		—		—		—		—		—
2018	—									—		—		—		—		—
2019	—											—		—		—		—
2020	—													—		—		—
	$	1,336,710												$	1,394,730	$	310,050	26,303

Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
						For the Years Ended December 31,
Accident Year						2016 (unaudited)		2017 (unaudited)		2018 (unaudited)		2019 (unaudited)		2020
2010 and Prior						$	101,098	$	222,703	$	331,218	$	445,770	$	536,987
2011						2,758		6,647		8,218		9,691		13,098
2012						2,734		5,206		6,461		7,587		8,492
2013						145		191		278		285		301
2014						178		207		284		366		463
2015						—		—		—		—		—
2016						—		—		—		—		—
2017								—		—		—		—
2018										—		—		—
2019												—		—
2020														—
														$	559,341
Total outstanding liabilities for unpaid losses and LAE, net of reinsurance			$	835,389


Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance					As of December 31, 2020
										For the Years Ended December 31,
Accident Year	Total Net Reserves Acquired					2016 (unaudited)		2017 (unaudited)		2018 (unaudited)		2019 (unaudited)		2020		IBNR		Cumulative Number of Claims
2010 and Prior	$	437,457				$	437,805	$	403,319	$	391,476	$	382,446	$	367,109	$	19,015	9,452
2011	15,376					15,376		16,399		16,501		16,327		16,472		1,374		469
2012	13,074					13,074		15,465		13,276		11,379		11,256		1,020		612
2013	—					—		—		—		—		—		—		—
2014	—					—		—		—		—		—		—		—
2015	—					—		—		—		—		—		—		—
2016	—					—		—		—		—		—		—		—
2017	—							—		—		—		—		—		—
2018	—									—		—		—		—		—
2019	—											—		—		—		—
2020	—													—		—		—
	$	465,907												$	394,837	$	21,409	10,533

Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
						For the Years Ended December 31,
Accident Year						2016 (unaudited)		2017 (unaudited)		2018 (unaudited)		2019 (unaudited)		2020
2010 and Prior						$	35,518	$	65,264	$	90,599	$	127,081	$	155,433
2011						2,631		5,871		7,305		8,756		12,130
2012						2,638		5,028		6,247		7,382		8,117
2013						—		—		—		—		—
2014						—		—		—		—		—
2015						—		—		—		—		—
2016						—		—		—		—		—
2017								—		—		—		—
2018										—		—		—
2019												—		—
2020														—
														$	175,680
Total outstanding liabilities for unpaid losses and LAE, net of reinsurance			$	219,157


Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance					As of December 31, 2020
										For the Years Ended December 31,
Accident Year	Total Net Reserves Acquired					2017 (unaudited)		2018 (unaudited)		2019 (unaudited)		2020		IBNR		Cumulative Number of Claims
2010 and Prior	$	1,507,609				$	1,433,301	$	1,351,451	$	1,364,113	$	1,349,226	$	749,197	31,566
2011	40,743					29,274		25,389		27,316		26,942		5,834		8
2012	43,653					35,470		31,238		29,456		28,485		3,744		10
2013	35,671					30,338		28,139		24,707		29,829		1,860		11
2014	32,858					20,315		16,984		15,996		16,342		2,287		20
2015	8,808					6,494		7,002		6,295		6,043		234		8
2016	362					(4)		126		919		1,074		394		3
2017	—					174		—		—		—		—		1
2018	—							—		—		—		—		—
2019	—									—		—		—		—
2020	—											—		—		—
	$	1,669,704										$	1,457,941	$	763,550	31,627

Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
						For the Years Ended December 31,
Accident Year						2017 (unaudited)		2018 (unaudited)		2019 (unaudited)		2020
2010 and Prior						$	85,514	$	175,630	$	257,071	$	334,586
2011						4,125		9,257		12,971		15,407
2012						10,348		15,372		18,605		21,076
2013						9,509		15,714		21,280		25,832
2014						6,482		8,986		11,559		12,668
2015						1,361		3,720		4,687		5,582
2016						(56)		66		434		536
2017						4		—		—		—
2018								—		—		—
2019										—		—
2020												—
												$	415,687
Total outstanding liabilities for unpaid losses and LAE, net of reinsurance			$	1,042,254


Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance					As of December 31, 2020
										For the Year Ended December 31,
Accident Year	Total Net Reserves Acquired					2018 (unaudited)		2019 (unaudited)		2020		IBNR		Cumulative Number of Claims
2010 and Prior	$	662,009				$	497,101	$	476,164	$	409,505	$	50,970	223,572
2011	164,556					150,408		150,388		147,796		16,240		14,072
2012	232,116					224,955		224,959		225,528		29,903		14,382
2013	272,732					274,377		268,237		250,013		35,175		16,126
2014	419,593					462,858		439,396		415,829		38,688		19,463
2015	365,429					483,489		480,093		496,187		62,476		24,768
2016	173,309					175,428		178,061		169,872		36,090		2,026
2017	207,040					207,190		205,466		204,490		55,056		4,163
2018	315,659					315,659		285,038		282,279		53,287		4,929
2019	—							68,271		68,041		9,762		1,634
2020	—									—		—		—
	$	2,812,443								$	2,669,540	$	387,647	325,135

Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
						For the Year Ended December 31,
Accident Year						2018 (unaudited)		2019 (unaudited)		2020
2010 and Prior						$	50,515	$	86,132	$	81,554
2011						26,236		53,151		65,522
2012						31,772		81,356		106,297
2013						41,544		96,968		133,398
2014						90,689		188,721		235,787
2015						95,688		199,373		269,559
2016						6,854		63,982		93,705
2017						56		72,800		113,770
2018						—		139,815		191,442
2019								39,099		50,646
2020										—
										$	1,341,680
Total outstanding liabilities for unpaid losses and LAE, net of reinsurance			$	1,327,860


Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance					As of December 31, 2020
										For the Year Ended December 31,
Accident Year	Total Net Reserves Acquired					2018 (unaudited)		2019 (unaudited)		2020		IBNR		Cumulative Number of Claims
2010 and Prior	$	130,049				$	74,102	$	70,937	$	67,933	$	4,827	47,893
2011	18,044					16,554		16,650		15,855		151		1,421
2012	37,454					33,433		29,123		29,760		3,270		1,593
2013	43,301					56,092		46,596		46,999		4,352		1,596
2014	66,562					80,896		74,947		68,535		5,802		2,291
2015	79,191					94,124		104,790		109,694		14,188		3,594
2016	28,825					28,825		36,585		36,684		10,075		253
2017	37,209					37,209		41,664		43,174		14,554		230
2018	39,888					39,888		40,753		39,157		11,605		182
2019	—							6,767		6,187		394		34
2020	—									—		—		—
	$	480,523								$	463,978	$	69,218	59,087

Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
						For the Year Ended December 31,
Accident Year						2018 (unaudited)		2019 (unaudited)		2020
2010 and Prior						$	9,164	$	18,817	$	29,840
2011						2,349		7,115		11,018
2012						1,281		11,453		14,383
2013						10,404		19,938		27,717
2014						13,766		27,833		41,899
2015						15,494		31,535		49,860
2016						—		14,109		18,916
2017						—		11,048		21,130
2018						—		8,879		17,455
2019								2,373		3,341
2020										—
										$	235,559
Total outstanding liabilities for unpaid losses and LAE, net of reinsurance			$	228,419


Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance					As of December 31, 2020
										For the Year Ended December 31,
Accident Year	Total Net Reserves Acquired					2018 (unaudited)		2019 (unaudited)		2020		IBNR		Cumulative Number of Claims
2010 and Prior	$	131,873				$	122,831	$	129,280	$	131,775	$	39,843	2,098
2011	29,897					28,685		29,981		27,203		9,067		401
2012	28,749					29,181		27,676		26,833		10,597		468
2013	38,029					38,554		38,093		35,212		13,243		869
2014	65,049					66,346		57,163		52,797		17,605		1,345
2015	38,851					39,379		35,235		33,253		13,026		1,464
2016	44,686					44,686		38,945		37,714		15,857		892
2017	52,360					52,360		49,156		45,529		23,004		998
2018	65,075					65,075		60,923		59,768		19,310		886
2019	—							20,889		21,417		4,445		383
2020	—									—		—		—
	$	494,569								$	471,501	$	165,997	9,804

Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
						For the Year Ended December 31,
Accident Year						2018 (unaudited)		2019 (unaudited)		2020
2010 and Prior						$	604	$	11,788	$	21,726
2011						2,281		5,592		9,418
2012						516		5,508		7,941
2013						1,525		7,773		12,280
2014						3,260		14,687		21,380
2015						1,403		4,355		9,844
2016						—		3,666		7,176
2017						—		5,900		9,088
2018						—		28,725		34,317
2019								13,483		15,594
2020										—
										$	148,764
Total outstanding liabilities for unpaid losses and LAE, net of reinsurance			$	322,737


Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance					As of December 31, 2020
										For the Year Ended December 31,
Accident Year	Total Net Reserves Acquired					2018 (unaudited)		2019 (unaudited)		2020		IBNR		Cumulative Number of Claims
2010 and Prior	$	43,818				$	31,489	$	30,036	$	33,230	$	2,599	1,323
2011	48,231					38,092		37,707		36,301		2,031		1,239
2012	65,427					58,006		63,786		59,276		5,862		1,641
2013	78,456					71,276		65,012		55,345		5,744		683
2014	116,677					103,761		90,902		84,459		5,243		1,260
2015	135,855					133,493		132,167		132,165		15,246		1,510
2016	93,164					95,283		97,040		91,600		9,824		732
2017	100,321					100,471		99,135		102,038		16,628		2,797
2018	180,471					180,471		157,556		160,143		21,609		3,731
2019	—							39,757		39,647		4,955		1,200
2020	—									—		—		—
	$	862,420								$	794,204	$	89,741	16,116

Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
						For the Year Ended December 31,
Accident Year						2018 (unaudited)		2019 (unaudited)		2020
2010 and Prior						$	7,460	$	13,722	$	16,655
2011						6,060		12,980		15,464
2012						12,380		24,433		31,136
2013						11,114		29,311		35,186
2014						22,393		49,089		60,254
2015						21,712		61,928		84,976
2016						6,854		43,851		65,287
2017						56		48,661		73,440
2018						—		86,861		120,041
2019								22,687		30,968
2020										—
										$	533,407
Total outstanding liabilities for unpaid losses and LAE, net of reinsurance			$	260,797


Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance					As of December 31, 2020
										For the Year Ended December 31,
Accident Year	Total Net Reserves Acquired					2018 (unaudited)		2019 (unaudited)		2020		IBNR		Cumulative Number of Claims
2010 and Prior	$	236,568				$	137,394	$	147,383	$	143,585	$	(3,639)	56,674
2011	46,512					52,553		48,884		51,600		3,185		3,762
2012	57,937					70,636		69,641		74,884		4,399		3,285
2013	59,457					63,284		78,933		76,291		10,543		3,257
2014	88,173					111,193		107,411		114,621		11,523		3,619
2015	47,337					100,975		81,272		85,394		15,074		3,990
2016	—					—		—		—		—		—
2017	—					—		—		—		—		—
2018	—					—		—		—		—		—
2019	—							—		—		—		—
2020	—									—		—		—
	$	535,984								$	546,375	$	41,085	74,587

Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
						For the Year Ended December 31,
Accident Year						2018 (unaudited)		2019 (unaudited)		2020
2010 and Prior						$	29,359	$	54,157	$	28,528
2011						13,123		20,017		22,250
2012						16,382		23,237		33,794
2013						10,987		21,919		34,269
2014						22,734		39,601		61,024
2015						14,245		26,595		34,834
2016						—		—		—
2017						—		—		—
2018						—		—		—
2019								—		—
2020										—
										$	214,699
Total outstanding liabilities for unpaid losses and LAE, net of reinsurance			$	331,676


Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance					As of December 31, 2020
										For the Year Ended December 31,
Accident Year	Total Net Reserves Acquired					2019 (unaudited)		2020			IBNR		Cumulative Number of Claims
2010 and Prior	$	652,608				$	630,171	$	628,495		$	272,910	74,742
2011	49,873					40,554		35,876			8,773		15,218
2012	73,098					54,301		49,349			12,905		12,329
2013	112,031					93,213		88,066			29,931		14,952
2014	137,324					137,478		127,704			53,814		17,624
2015	179,651					188,833		196,007			80,816		25,081
2016	253,099					295,011		260,473			118,653		32,057
2017	116,386					116,386		116,386			116,386		2
2018	162,744					162,744		162,744			162,744		2
2019	—					54,571		64,595			6,155		1,679
2020	—							27,975			5,483		1,020
	$	1,736,814						$	1,757,670		$	868,570	194,706

Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
						For the Year Ended December 31,
Accident Year						2019 (unaudited)		2020
2010 and Prior						$	26,817	$	106,195
2011						4,786		8,100
2012						6,886		9,565
2013						13,540		20,906
2014						28,188		47,310
2015						33,417		63,994
2016						56,125		84,592
2017						—		—
2018						—		—
2019						25,595		55,912
2020								21,661
								$	418,235
Total outstanding liabilities for unpaid losses and LAE, net of reinsurance			$	1,339,435


Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance					As of December 31, 2020
										For the Year Ended December 31,
Accident Year	Total Net Reserves Acquired					2019 (unaudited)		2020			IBNR		Cumulative Number of Claims
2010 and Prior	$	12,765				$	9,788	$	9,994		$	1,620	1,424
2011	12,321					9,490		7,979			3,587		796
2012	18,107					14,471		13,786			8,214		1,165
2013	23,750					18,230		20,960			8,897		313
2014	33,767					31,181		29,341			16,377		905
2015	58,818					45,936		41,158			18,055		2,003
2016	48,606					64,159		58,061			32,692		3,134
2017	32,188					32,188		32,188			32,188		1
2018	45,010					45,010		45,010			45,010		1
2019	—					1,750		1,873			510		225
2020	—							1,118			267		411
	$	285,332						$	261,468		$	167,417	10,378

Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
						For the Year Ended December 31,
Accident Year						2019 (unaudited)		2020
2010 and Prior						$	2,230	$	2,894
2011						810		1,869
2012						3,326		6,604
2013						3,499		5,813
2014						3,878		8,155
2015						4,421		5,121
2016						4,894		10,723
2017						—		—
2018						—		—
2019						—		841
2020								453
								$	42,473
Total outstanding liabilities for unpaid losses and LAE, net of reinsurance			$	218,995


Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance					As of December 31, 2020
										For the Year Ended December 31,
Accident Year	Total Net Reserves Acquired					2019 (unaudited)		2020			IBNR		Cumulative Number of Claims
2010 and Prior	$	5,860				$	4,420	$	4,551		$	1,938	9,869
2011	2,474					2,410		2,409			2,342		1,082
2012	6,280					6,176		6,176			6,991		1,640
2013	16,738					18,339		15,980			14,415		2,897
2014	35,023					35,426		35,556			31,501		3,410
2015	57,194					56,171		57,314			48,840		4,802
2016	87,702					85,530		84,862			70,769		4,829
2017	84,197					84,197		84,197			84,197		1
2018	117,734					117,734		117,734			117,734		1
2019	—					—		—			—		—
2020	—							2,045			—		189
	$	413,202						$	410,824		$	378,727	28,720

Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
						For the Year Ended December 31,
Accident Year						2019 (unaudited)		2020
2010 and Prior						$	607	$	696
2011						22		23
2012						22		63
2013						458		572
2014						3,080		3,443
2015						3,549		6,325
2016						7,337		12,137
2017						—		—
2018						—		—
2019						—		—
2020								127
								$	23,386
Total outstanding liabilities for unpaid losses and LAE, net of reinsurance			$	387,438


Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance			As of December 31, 2020
						For the Years Ended December 31,
Accident Year	Total Net Reserves Acquired			2020		IBNR		Cumulative Number of Claims
2010 and Prior	$	256,228		$	169,601	$	91,688	47
2011	26,488			26,983		25,162		36
2012	58,128			58,241		53,749		74
2013	68,683			63,922		47,944		140
2014	100,054			102,600		83,249		201
2015	161,383			161,352		113,476		384
2016	210,661			205,305		120,481		816
2017	316,751			342,330		168,832		1,770
2018	432,590			575,706		305,471		3,108
2019	344,495			343,168		301,463		1,351
2020	166,946			168,091		144,090		1,481
	$	2,142,407		$	2,217,299	$	1,455,605	9,408

Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
				For the Years Ended December 31,
Accident Year				2020
2010 and Prior				$	2,310
2011				54
2012				601
2013				4,283
2014				5,975
2015				12,253
2016				33,985
2017				73,001
2018				111,871
2019				1,509
2020				7,695
				$	253,537
Total outstanding liabilities for unpaid losses and LAE, net of reinsurance	$	1,963,762


Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance			As of December 31, 2020
						For the Years Ended December 31,
Accident Year	Total Net Reserves Acquired			2020		IBNR		Cumulative Number of Claims
2010 and Prior	$	43,511		$	43,849	$	36,455	36
2011	26,434			26,928		25,133		29
2012	55,478			55,591		51,130		60
2013	60,872			56,111		41,186		122
2014	87,620			90,182		71,022		185
2015	140,583			139,947		96,032		280
2016	142,395			143,156		100,293		394
2017	142,862			137,097		112,135		439
2018	141,803			138,267		133,942		316
2019	202,521			201,174		179,284		388
2020	83,021			82,598		77,737		338
	$	1,127,100		$	1,114,900	$	924,349	2,587

Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
				For the Years Ended December 31,
Accident Year				2020
2010 and Prior				$	522
2011				54
2012				601
2013				3,258
2014				5,983
2015				10,230
2016				9,125
2017				4,149
2018				400
2019				203
2020				2,467
				$	36,992
Total outstanding liabilities for unpaid losses and LAE, net of reinsurance	$	1,077,908


Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance			As of December 31, 2020
						For the Years Ended December 31,
Accident Year	Total Net Reserves Acquired			2020		IBNR		Cumulative Number of Claims
2010 and Prior	$	—		$	—	$	—	—
2011	—			—		—		—
2012	—			—		—		—
2013	—			—		—		—
2014	—			—		—		—
2015	2,397			3,018		603		19
2016	48,505			42,420		2,779		221
2017	154,070			185,445		38,279		1,099
2018	250,028			397,413		145,623		2,204
2019	—			—		—		—
2020	—			—		—		—
	$	455,000		$	628,296	$	187,284	3,543

Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
				For the Years Ended December 31,
Accident Year				2020
2010 and Prior				$	—
2011				—
2012				—
2013				—
2014				—
2015				2,012
2016				24,804
2017				68,712
2018				110,447
2019				—
2020				—
				$	205,975
Total outstanding liabilities for unpaid losses and LAE, net of reinsurance	$	422,321


Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance			As of December 31, 2020
						For the Years Ended December 31,
Accident Year	Total Net Reserves Acquired			2020		IBNR		Cumulative Number of Claims
2010 and Prior	$	4,680		$	4,678	$	4,679	1
2011	44			44		44		3
2012	2,593			2,593		2,584		4
2013	7,791			7,791		6,745		6
2014	11,949			11,949		11,947		4
2015	16,120			16,120		15,769		4
2016	16,259			16,216		16,053		9
2017	17,212			17,206		16,906		41
2018	25,323			25,290		19,209		115
2019	99,460			99,350		92,944		135
2020	34,548			34,757		30,144		79
	$	235,979		$	235,994	$	217,024	401

Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
				For the Years Ended December 31,
Accident Year				2020
2010 and Prior				$	—
2011				—
2012				—
2013				1,025
2014				—
2015				6
2016				1
2017				5
2018				475
2019				410
2020				1,138
				$	3,060
Total outstanding liabilities for unpaid losses and LAE, net of reinsurance	$	232,934


	Annual Percentage Payout of Incurred Losses since Year of Acquisition, Net of Reinsurance
Year of Acquisition	Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10


2011 - All lines of business	25.68	%	17.45	%	(3.59)	%	(28.95)	%	(2.12)	%	3.57	%	(3.49)	%	4.99	%	11.18	%	8.86	%
2012 - All lines of business	1.30	%	26.42	%	16.71	%	12.48	%	10.00	%	4.47	%	5.48	%	4.17	%	2.12	%
2013 - All lines of business	25.96	%	21.67	%	15.93	%	11.01	%	6.15	%	3.89	%	2.24	%	0.32	%
2014 - All lines of business	33.84	%	24.15	%	11.11	%	8.07	%	3.74	%	1.65	%	1.10	%
2015 - All lines of business	17.33	%	17.09	%	12.84	%	9.80	%	7.69	%	4.65	%
2015 - Workers' compensation	13.72	%	17.09	%	12.73	%	9.73	%	6.71	%	4.27	%
2016 - All lines of business	7.67	%	9.18	%	7.99	%	8.41	%	6.86	%
2016 - Workers' Compensation	10.33	%	8.96	%	7.09	%	9.89	%	8.22	%
2017 - All lines of business	8.04	%	7.64	%	6.71	%	6.11	%

2018 - All lines of business	12.86	%	25.40	%	12.00	%
2018 - General Casualty	11.31	%	21.69	%	17.77	%
2018 - Workers' Compensation	2.03	%	19.49	%	10.03	%

2018 - Professional Indemnity/Directors & Officers	19.55	%	14.40	%	5.34	%
2018 - Motor	11.08	%	38.47	%	17.61	%
2019 - All lines of business	11.11	%	12.68	%
2019 - General Casualty	8.82	%	7.43	%
2019 - Workers' Compensation	3.67	%	2.02	%
2020 - All lines of business	11.43	%

2020 - General Casualty	3.32	%
2020 - Motor	32.78	%
2020 - Professional Indemnity/Directors & Officers	1.30	%

The negative payout percentages in the table above for years 3, 4, 5, and 7 within the 2011 year of acquisition were primarily due to ceded paid losses exceeding the assumed paid losses as a result of commutations completed with several reinsurers covering the exposures assumed by one of our reinsurance subsidiaries that we acquired in 2011. For the specific years referenced above, we collected more paid recoveries from our reinsurers than the losses we paid on the assumed exposures, and as such, the calculated annual payout percentages were negative.


	2020		2019		2018
Balance as of January 1	$	1,569,865	$	1,505,125	$	1,142,024
Less: reinsurance reserves recoverable	385,613		343,418		316,213

Less: cumulative effect of change in accounting principal on allowance for estimated uncollectible reinsurance (1)	1,346		—		—
Net balance as of January 1	1,182,906		1,161,707		825,811
Net incurred losses and LAE:
Current period	375,013		456,515		520,630
Prior periods	(3,527)		105,536		114,543
Total net incurred losses and LAE	371,486		562,051		635,173
Net paid losses:
Current period	(61,999)		(114,641)		(176,167)
Prior periods	(348,589)		(426,205)		(319,802)
Total net paid losses	(410,588)		(540,846)		(495,969)
Effect of exchange rate movement	25,524		1,340		(12,611)
Acquired on purchase of subsidiaries	—		—		199,035
Assumed business	—		—		10,268

Reclassification to assets and liabilities held-for-sale	(214,198)		—		—
Net balance as of December 31	955,130		1,184,252		1,161,707
Plus: reinsurance reserves recoverable (2)	403,399		385,613		343,418
Balance as of December 31	$	1,358,529	$	1,569,865	$	1,505,125


	2020						2019						2018
	Prior Period		Current Period		Total		Prior Period		Current Period		Total		Prior Period		Current Period		Total
Net losses paid	$	348,589	$	61,999	$	410,588	$	426,205	$	114,641	$	540,846	$	319,802	$	176,167	$	495,969
Net change in case and LAE reserves (1)	(145,778)		58,671		(87,107)		(109,695)		112,003		2,308		(87,386)		162,386		75,000
Net change in IBNR reserves (2)	(205,920)		236,710		30,790		(208,308)		226,303		17,995		(114,831)		173,422		58,591
Increase (reduction) in estimates of net ultimate losses	(3,109)		357,380		354,271		108,202		452,947		561,149		117,585		511,975		629,560
Increase (reduction) in provisions for unallocated LAE (3)	(418)		17,633		17,215		(2,666)		3,568		902		(3,042)		8,655		5,613


Net incurred losses and LAE	$	(3,527)	$	375,013	$	371,486	$	105,536	$	456,515	$	562,051	$	114,543	$	520,630	$	635,173

The following tables provide a breakdown of the gross and net losses and LAE reserves by line of business and ULAE for the Legacy Underwriting segment as of December 31, 2020 and 2019. The breakdown as of December 31, 2020 does not include Atrium business as it was classified as held-for-sale as discussed in Note 5 - "Divestitures, Held-for-Sale Businesses and Discontinued Operations."


	2020
	Gross						Net
	OLR		IBNR		Total		OLR		IBNR		Total
StarStone International	(in thousands of U.S. dollars)
Casualty	$	115,295	$	276,941	$	392,236	$	98,721	$	232,433	$	331,154
Marine	142,631		174,015		316,646		119,628		132,482		252,110
Property	322,735		117,240		439,975		141,089		81,459		222,548
Aerospace	84,515		36,178		120,693		42,100		18,240		60,340
Workers' Compensation	12,044		11,589		23,633		12,044		11,589		23,633
StarStone International Subtotal	$	677,220	$	615,963	$	1,293,183	$	413,582	$	476,203	$	889,785
Other	10,204		20,040		30,244		10,204		20,040		30,244
Total	$	687,424	$	636,003	$	1,323,427	$	423,786	$	496,243	$	920,029
ULAE					35,102						35,101
Total					$	1,358,529					$	955,130


Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance															As of December 31, 2020
	For The Years Ended December 31,
Accident Year	2014 (unaudited)		2015 (unaudited)		2016 (unaudited)		2017 (unaudited)		2018 (unaudited)		2019 (unaudited)		2020		IBNR(1)		Cumulative Number of Claims
2010 and Prior	$	100,449	$	101,217	$	101,444	$	101,801	$	102,539	$	102,317	$	102,661	$	19	4,322
2011	16,244		18,740		19,681		19,103		27,703		27,859		28,027		429		2,962
2012	39,797		33,853		30,788		28,482		33,511		36,159		37,072		3,418		3,521
2013	51,458		47,304		54,282		53,493		56,145		63,323		67,638		9,044		4,821
2014	66,094		67,141		67,461		66,559		66,585		75,513		72,097		10,495		4,863
2015			76,470		82,050		81,685		92,904		99,425		101,191		13,037		4,323
2016					92,406		95,726		111,020		135,670		128,139		25,293		3,825
2017							100,585		135,743		161,288		166,472		34,822		3,899
2018									87,781		101,381		106,014		39,329		2,929
2019											42,595		59,902		23,758		2,581
2020													98,738		72,789		1,582
											Total		$	967,951	$	232,433	39,628
(1) Total of IBNR plus expected development on reported losses.
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
			For The Years Ended December 31,
Accident Year	2014 (unaudited)		2015 (unaudited)		2016 (unaudited)		2017 (unaudited)		2018 (unaudited)		2019 (unaudited)		2020
2010 and Prior	$	99,643	$	101,181	$	101,326	$	101,712	$	101,783	$	101,813	$	101,886
2011	12,394		15,941		18,354		18,760		27,385		27,401		27,426
2012	13,336		20,634		22,746		23,711		32,644		32,666		32,706
2013	16,373		22,131		35,799		38,866		42,123		48,898		52,333
2014	4,318		16,141		27,043		36,802		46,654		49,571		51,949
2015			6,439		21,503		36,971		50,598		69,948		75,875
2016					4,206		32,864		59,074		76,175		92,223
2017							7,712		41,896		87,902		114,062
2018									18,747		34,762		54,000
2019											4,721		26,235
2020													8,102
											Total		$	636,797
Total outstanding liabilities for unpaid losses and LAE, net of reinsurance													$	331,154


Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance															As of December 31, 2020
	For The Years Ended December 31,
Accident Year	2014 (unaudited)		2015 (unaudited)		2016 (unaudited)		2017 (unaudited)		2018 (unaudited)		2019 (unaudited)		2020		IBNR(1)		Cumulative Number of Claims
2010 and Prior	$	50,395	$	47,336	$	47,194	$	47,287	$	47,175	$	47,213	$	46,828	$	62	3,037
2011	29,890		28,190		27,767		27,824		28,162		27,956		28,075		229		1,966
2012	48,204		52,010		51,710		50,435		51,231		49,176		48,706		307		2,431
2013	63,442		55,981		53,783		54,790		58,209		64,399		63,323		926		2,202
2014	50,959		54,370		49,449		56,049		51,642		51,062		49,676		1,003		3,944
2015			70,492		70,160		80,196		81,864		83,646		80,438		1,612		5,606
2016					80,830		83,187		88,459		88,023		89,309		4,150		6,658
2017							125,976		158,450		166,304		162,629		7,959		8,352
2018									164,461		164,042		161,831		16,444		10,123
2019											152,423		158,919		39,463		7,015
2020													84,427		60,327		2,703
											Total		$	974,161	$	132,482	54,037
(1) Total of IBNR plus expected development on reported losses.
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
	For The Years Ended December 31,
Accident Year	2014 (unaudited)		2015 (unaudited)		2016 (unaudited)		2017 (unaudited)		2018 (unaudited)		2019 (unaudited)		2020
2010 and Prior	$	44,212	$	46,360	$	46,464	$	46,470	$	46,563	$	46,682	$	46,709
2011	24,599		25,686		26,688		26,942		27,057		27,082		27,285
2012	38,570		42,787		44,681		45,498		45,951		46,178		47,452
2013	29,436		38,880		43,027		45,575		47,698		57,539		62,037
2014	11,037		25,306		33,076		37,594		43,323		44,727		44,740
2015			10,234		30,143		50,376		56,557		59,918		62,401
2016					11,669		41,875		58,438		73,778		76,534
2017							23,986		68,233		107,787		125,335
2018									40,698		103,930		129,632
2019											33,196		84,414
2020													15,512
											Total		$	722,051
Total outstanding liabilities for unpaid losses and LAE, net of reinsurance													$	252,110


Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance															As of December 31, 2020
	For The Years Ended December 31,
Accident Year	2014 (unaudited)		2015 (unaudited)		2016 (unaudited)		2017 (unaudited)		2018 (unaudited)		2019 (unaudited)		2020		IBNR(1)		Cumulative Number of Claims
2010 and Prior	$	190,649	$	188,537	$	187,286	$	187,846	$	188,778	$	189,079	$	190,667	$	13	4,485
2011	91,712		90,272		90,328		90,018		89,918		90,259		90,406		88		1,635
2012	66,137		62,119		61,243		62,177		59,201		59,463		58,247		133		1,516
2013	78,501		65,608		65,394		64,521		62,711		61,114		61,383		152		1,955
2014	59,390		44,130		43,631		44,081		41,968		41,226		40,612		794		2,125
2015			75,514		73,946		67,944		67,733		68,678		69,314		1,377		11,435
2016					83,622		91,680		92,038		91,956		94,450		1,361		14,167
2017							152,172		169,673		181,855		171,673		4,429		14,553
2018									161,507		172,640		174,137		11,123		11,891
2019											116,634		117,009		22,609		6,166
2020													71,147		39,380		1,338
											Total		$	1,139,045	$	81,459	71,266
(1) Total of IBNR plus expected development on reported losses.
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
	For The Years Ended December 31,
Accident Year	2014 (unaudited)		2015 (unaudited)		2016 (unaudited)		2017 (unaudited)		2018 (unaudited)		2019 (unaudited)		2020
2010 and Prior	$	183,649	$	186,876	$	187,040	$	187,264	$	187,285	$	187,300	$	188,080
2011	87,937		89,149		89,662		89,894		89,894		89,940		90,110
2012	48,322		52,442		54,681		55,672		55,895		58,099		58,100
2013	31,000		46,556		51,431		53,548		59,756		60,916		61,060
2014	5,517		18,945		31,854		34,869		36,461		37,609		39,681
2015			8,756		25,890		52,799		61,347		62,237		62,826
2016					23,803		54,188		72,244		81,904		83,577
2017							34,961		96,151		137,569		146,340
2018									60,944		93,275		126,763
2019											19,461		52,637
2020													7,323
											Total		$	916,497
Total outstanding liabilities for unpaid losses and LAE, net of reinsurance													$	222,548


Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance															As of December 31, 2020
	For The Years Ended December 31,
Accident Year	2014 (unaudited)		2015 (unaudited)		2016 (unaudited)		2017 (unaudited)		2018 (unaudited)		2019 (unaudited)		2020		IBNR(1)		Cumulative Number of Claims
2010 and Prior	$	18,439	$	18,083	$	18,393	$	18,906	$	18,962	$	18,759	$	18,693	$	36	622
2011	58,748		57,226		57,653		58,084		59,578		58,677		58,299		96		2,179
2012	55,293		55,087		55,870		55,823		57,044		56,771		56,907		186		2,375
2013	71,930		69,976		70,255		74,733		77,222		76,774		78,673		297		2,538
2014	65,227		53,457		53,533		52,471		54,534		48,757		45,978		485		2,867
2015			64,550		67,846		70,903		71,624		69,612		69,879		1,070		2,962
2016					35,923		43,371		46,832		43,991		42,954		1,463		2,925
2017							28,816		33,623		54,980		52,590		2,193		3,381
2018									58,573		54,969		54,831		3,491		3,390
2019											45,401		45,784		5,148		2,028
2020													8,732		3,775		357
											Total		$	533,320	$	18,240	25,624
(1) Total of IBNR plus expected development on reported losses
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
	For The Years Ended December 31,
Accident Year	2014 (unaudited)		2015 (unaudited)		2016 (unaudited)		2017 (unaudited)		2018 (unaudited)		2019 (unaudited)		2020
2010 and Prior	$	15,391	$	16,530	$	17,141	$	18,209	$	18,480	$	18,535	$	18,538
2011	53,785		55,133		55,817		56,394		56,954		57,482		57,483
2012	45,618		49,009		51,787		53,271		54,415		55,160		55,290
2013	50,725		59,639		63,226		68,574		72,573		73,309		73,923
2014	17,297		31,192		38,494		40,749		43,857		43,858		43,868
2015			31,417		50,844		59,342		62,522		64,811		65,630
2016					11,001		30,516		35,884		37,909		37,933
2017							9,000		26,857		44,582		46,134
2018									24,979		39,531		43,284
2019											23,294		30,210
2020													687
											Total		$	472,980
Total outstanding liabilities for unpaid losses and LAE, net of reinsurance													$	60,340


Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance															As of December 31, 2020
	For The Years Ended December 31,
Accident Year	2014 (unaudited)		2015 (unaudited)		2016 (unaudited)		2017 (unaudited)		2018 (unaudited)		2019 (unaudited)		2020		IBNR(1)		Cumulative Number of Claims
2010 and Prior	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	—
2011	—		—		—		—		—		—		—		—		—
2012	—		—		—		—		—		—		—		—		—
2013	—		—		—		—		1		1		1		—		—
2014	10,145		11,179		11,889		10,180		9,867		9,666		9,372		500		137
2015			35,735		36,078		32,567		30,742		29,757		28,768		1,870		259
2016					40,912		35,179		37,703		38,739		36,293		2,847		277
2017							28,188		29,931		22,900		23,320		3,888		295
2018									15,100		14,814		14,490		2,484		161
2019											—		—		—		—
2020													—		—		—
											Total		$	112,244	$	11,589	1,129
(1) Total of IBNR plus expected development on reported losses.
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
	For The Years Ended December 31,
Accident Year	2014 (unaudited)		2015 (unaudited)		2016 (unaudited)		2017 (unaudited)		2018 (unaudited)		2019 (unaudited)		2020
2010 and Prior	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2011	—		—		—		—		—		—		—
2012	—		—		—		—		—		—		—
2013	—		—		—		—		1		1		1
2014	969		3,951		6,031		7,430		7,957		8,201		8,503
2015			4,135		13,126		19,785		22,952		24,301		25,032
2016					5,170		15,229		22,940		27,632		29,539
2017							3,560		10,436		14,600		16,520
2018									2,574		6,431		9,016
2019											—		—
2020													—
											Total		$	88,611
Total outstanding liabilities for unpaid losses and LAE, net of reinsurance													$	23,633