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Reinsurance Ceded (Tables)
 3 Months Ended
Mar. 31, 2022
Insurance [Abstract]  
Reinsurance Recoverables After Allowance for Credit Losses

Amounts recoverable from reinsurers are recognized in a manner consistent with the loss and loss adjustment expense (“LAE”) liabilities associated with the reinsurance placement and presented on the balance sheet as reinsurance recoverables, and are recorded after an allowance for credit losses. Such balances as of March 31, 2022 and December 31, 2021 are presented in the table below:

 

 

As of March 31,

 

 

As of December 31,

 

 

 

2022

 

 

2021

 

 

 

($ in millions)

 

Reinsurance recoverables on paid losses

 

$

145.1

 

 

$

173.1

 

Ceded outstanding loss and LAE

 

 

2,022.3

 

 

 

2,026.1

 

Reinsurance recoverables, before allowance for credit losses

 

 

2,167.4

 

 

 

2,199.2

 

Allowance for credit losses

 

 

(2.7

)

 

 

(3.2

)

Total

 

$

2,164.7

 

 

$

2,196.0

 

 
Information Regarding Concentration of Reinsurance Recoverables and Ratings Profile of Our Reinsurers

The following table presents information regarding concentration of Alleghany’s reinsurance recoverables and the ratings profile of Alleghany's reinsurers as of March 31, 2022:

 

Reinsurer(1)

 

Rating(2)

 

Amount

 

 

Percentage

 

 

 

($ in millions)

 

PartnerRe Ltd

 

A+ (Superior)

 

$

161.8

 

 

 

7.5

%

Syndicates at Lloyd's of London

 

A (Excellent)

 

 

156.8

 

 

 

7.2

%

Kane SAC Ltd, Rondout Segregated Account(3)

 

not rated

 

 

131.6

 

 

 

6.1

%

Fairfax Financial Holdings Ltd

 

A (Excellent)

 

 

128.9

 

 

 

5.9

%

RenaissanceRe Holdings Ltd

 

A+ (Superior)

 

 

128.1

 

 

 

5.9

%

Swiss Reinsurance Company

 

A+ (Superior)

 

 

99.2

 

 

 

4.6

%

Integral Reinsurance Ltd.(3)

 

not rated

 

 

86.7

 

 

 

4.0

%

Chubb Ltd.

 

A++ (Superior)

 

 

80.1

 

 

 

3.7

%

W.R. Berkley Corporation

 

A+ (Superior)

 

 

76.1

 

 

 

3.5

%

SiriusPoint Ltd.(3)

 

A- (Excellent)

 

 

70.9

 

 

 

3.3

%

All other reinsurers

 

 

 

 

1,047.2

 

 

 

48.3

%

Total reinsurance recoverables, before allowance for credit losses(4)

 

 

 

$

2,167.4

 

 

 

100.0

%

Allowance for credit losses

 

 

 

 

(2.7

)

 

 

 

Total

 

 

 

$

2,164.7

 

 

 

 

Secured reinsurance recoverables(3)

 

 

 

$

957.6

 

 

 

44.2

%

 

(1)
Reinsurance recoverables reflect amounts due from one or more reinsurance subsidiaries of the listed company.
(2)
Represents the A.M. Best Company, Inc. financial strength rating for the applicable reinsurance subsidiary or subsidiaries from which the reinsurance recoverable is due.
(3)
Represents reinsurance recoverables secured by funds held, trust agreements or letters of credit.
(4)
Approximately 66 percent of Alleghany's reinsurance recoverables balance as of March 31, 2022 was due from reinsurers having an A.M. Best Company, Inc. financial strength rating of A (Excellent) or higher, with a majority of the other reinsurance recoverables being secured by funds held, trust agreements or letters of credit.
Allowance for Credit Losses on Reinsurance Recoverables

The following table presents a rollforward of Alleghany’s allowance for credit losses on reinsurance recoverables for the three months ended March 31, 2022 and 2021:

 

 

 

Three Months Ended
March 31,

 

 

 

2022

 

 

2021

 

 

 

($ in millions)

 

Allowance for Credit Losses

 

 

 

 

 

 

Beginning balance

 

$

3.2

 

 

$

7.9

 

Provision for credit losses

 

 

(0.5

)

 

 

(1.9

)

Charge-offs

 

 

—

 

 

 

—

 

Recoveries

 

 

—

 

 

 

—

 

Ending balance

 

$

2.7

 

 

$

6.0