XML 130 R14.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Liability for Loss and LAE
 12 Months Ended
Dec. 31, 2019
Insurance [Abstract]  
Liability for Loss and LAE

6. Liability for Loss and LAE

(a) Liability Rollforward

The following table presents the activity in the liability for loss and LAE in 2019, 2018 and 2017:

 

 

 

Year Ended December 31,

 

 

 

 

2019

 

 

2018

 

 

2017

 

 

 

 

($ in millions)

Reserves as of January 1

 

$

12,250.3

 

 

$

11,871.3

 

 

$

11,087.2

 

 

Less: reinsurance recoverables(1)

 

 

1,857.4

 

 

 

1,650.1

 

 

 

1,236.2

 

 

Net reserves as of January 1

 

 

10,392.9

 

 

 

10,221.2

 

 

 

9,851.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other adjustments

 

 

(2.3

)

 

 

0.9

 

 

 

(293.7

)

(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Incurred loss and LAE, net of reinsurance, related to:

 

 

 

 

 

 

 

 

 

 

 

 

 

Current year

 

 

3,871.1

 

 

 

3,849.4

 

 

 

3,918.8

 

 

Prior years

 

 

(184.7

)

 

 

(329.0

)

 

 

(298.6

)

 

Total incurred loss and LAE, net of reinsurance

 

 

3,686.4

 

 

 

3,520.4

 

 

 

3,620.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Paid loss and LAE, net of reinsurance, related to:(3)

 

 

 

 

 

 

 

 

 

 

 

 

 

Current year

 

 

884.6

 

 

 

838.9

 

 

 

853.2

 

 

Prior years

 

 

2,839.9

 

 

 

2,419.0

 

 

 

2,225.2

 

 

Total paid loss and LAE, net of reinsurance

 

 

3,724.5

 

 

 

3,257.9

 

 

 

3,078.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency exchange rate effect

 

 

(8.0

)

 

 

(91.7

)

 

 

122.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net reserves as of December 31

 

 

10,344.5

 

 

 

10,392.9

 

 

 

10,221.2

 

 

Reinsurance recoverables as of December 31(1)

 

 

1,583.9

 

 

 

1,857.4

 

 

 

1,650.1

 

 

Reserves as of December 31

 

$

11,928.4

 

 

$

12,250.3

 

 

$

11,871.3

 

 

 

(1)

Reinsurance recoverables in this table include only ceded loss and LAE reserves.

(2)

Primarily represents the impact on net reserves arising from the sale of PacificComp.

(3)

Includes paid loss and LAE, net of reinsurance, related to commutations.

Gross loss and LAE reserves as of December 31, 2019 decreased from December 31, 2018, primarily reflecting payments on catastrophe losses incurred in 2017 and 2018 and favorable prior accident year loss reserve development, partially offset by the impact of growing net premiums earned and catastrophe losses incurred in 2019.  The 2019 catastrophe losses, net of reinsurance, include $183.7 million related to Typhoon Hagibis, $95.4 million related to Typhoon Faxai, $22.3 million related to civil unrest in Chile and $13.6 million related to Hurricane Dorian.

Gross loss and LAE reserves as of December 31, 2018 increased from December 31, 2017, primarily reflecting catastrophe losses in 2018, partially offset by payments on catastrophe losses incurred in 2017 and favorable prior accident year loss reserve development. The 2018 catastrophe losses, net of reinsurance, include $183.4 million related to Typhoon Jebi, $182.0 million related to wildfires in California, $135.2 million related to Hurricane Michael, $70.4 million related to Hurricane Florence and $33.7 million related to Typhoon Trami.

(b) Liability Development

The following table presents the (favorable) unfavorable prior accident year loss reserve development for 2019, 2018 and 2017:

 

 

 

Year Ended December,

 

 

 

 

2019

 

 

2018

 

 

2017

 

 

 

 

($ in millions)

Reinsurance Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

Property:

 

 

 

 

 

 

 

 

 

 

 

 

 

Catastrophe events

 

$

(6.8

)

(1)

$

(20.2

)

(2)

$

(22.2

)

(3)

Non-catastrophe

 

 

(39.4

)

(4)

 

(64.7

)

(5)

 

(72.3

)

(6)

Total

 

 

(46.2

)

 

 

(84.9

)

 

 

(94.5

)

 

Casualty & other:

 

 

 

 

 

 

 

 

 

 

 

 

 

Malpractice Treaties(7)

 

 

(1.4

)

 

 

(3.4

)

 

 

(5.0

)

 

Ogden rate impact(8)

 

 

—

 

 

 

—

 

 

 

24.4

 

 

Other

 

 

(148.2

)

(9)

 

(177.8

)

(10)

 

(174.4

)

(11)

Total

 

 

(149.6

)

 

 

(181.2

)

 

 

(155.0

)

 

Total Reinsurance Segment

 

 

(195.8

)

 

 

(266.1

)

 

 

(249.5

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Insurance Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

RSUI:

 

 

 

 

 

 

 

 

 

 

 

 

 

Casualty

 

 

(16.3

)

(12)

 

(27.8

)

(13)

 

(38.9

)

(14)

Property and other

 

 

(1.2

)

(15)

 

(30.9

)

(16)

 

(4.3

)

(17)

Total

 

 

(17.5

)

 

 

(58.7

)

 

 

(43.2

)

 

CapSpecialty:

 

 

 

 

 

 

 

 

 

 

 

 

 

Ongoing lines of business

 

 

26.1

 

(18)

 

(4.2

)

(19)

 

(3.4

)

(20)

Terminated Program(21)

 

 

3.0

 

 

 

—

 

 

 

—

 

 

Asbestos-related illness and environmental impairment liability

 

 

(0.5

)

 

 

—

 

 

 

—

 

 

Total

 

 

28.6

 

 

 

(4.2

)

 

 

(3.4

)

 

PacificComp

 

 

—

 

 

 

—

 

 

 

(2.5

)

(22)

Total incurred related to prior years

 

$

(184.7

)

 

$

(329.0

)

 

$

(298.6

)

 

 

(1)

Primarily reflects favorable prior accident year loss reserve development related to wildfires in California in the 2018 accident year, partially offset by unfavorable prior accident year loss reserve development related to Typhoon Jebi in the 2018 accident year and Hurricane Irma in 2017 accident year.

(2)

Primarily reflects favorable prior accident year loss reserve development related to Hurricane Harvey in the 2017 accident year and catastrophes in the 2016 accident year, partially offset by unfavorable prior accident year loss reserve development related to Hurricanes Maria and Irma in the 2017 accident year.

(3)

Reflects favorable prior accident year loss reserve development related to several catastrophes primarily in the 2016 accident year.

(4)

Primarily reflects favorable prior accident year loss reserve development in the 2016 and 2017 accident years, partially offset by unfavorable prior accident year loss reserve development in the 2018 accident year.

(5)

Primarily reflects favorable prior accident year loss reserve development in the 2015 and 2016 accident years, partially offset by unfavorable prior accident year loss reserve development in the 2017 accident year.

(6)

Reflects favorable prior accident year loss reserve development primarily in the 2011 through 2016 accident years.

(7)

Represents certain medical malpractice treaties pursuant to which the increased underwriting profits created by the favorable prior accident year loss reserve development are largely retained by the cedants. As a result, the favorable prior accident year loss reserve development is largely offset by an increase in profit commission expense incurred when such favorable prior accident year loss reserve development occurs.

(8)

Represents unfavorable prior accident year loss reserve development related to the U.K. Ministry of Justice’s reduction in the discount rate used to calculate lump-sum bodily injury payouts in personal injury insurance claims in the U.K to negative 0.75 percent as of March 20, 2017 from 2.50 percent.

(9)

Primarily reflects favorable prior accident year loss reserve development in the longer-tailed casualty lines of business in the 2014 and prior accident years and, to a lesser extent, shorter-tailed lines of business in the 2014 and prior accident years, partially offset by unfavorable prior accident year loss reserve development in the marine and aviation lines of business in the 2018 accident year.

(10)

Primarily reflects favorable prior accident year loss reserve development in the longer-tailed casualty lines of business in the 2002 through 2010 accident years and in the shorter-tailed casualty lines of business (specifically, ocean marine, automobile liability and accident & health) in the 2017 accident year, partially offset by unfavorable prior accident year loss reserve development in the professional liability lines of business in the 2015 accident year.

(11)

Primarily reflects favorable prior accident year loss reserve development in: (i) longer-tailed professional liability and general liability lines of business in the 2003 through 2012 accident years; and (ii) shorter-tailed casualty lines of business in the 2010 through 2014 accident years; partially offset by unfavorable prior accident year loss reserve development in shorter-tailed casualty lines of business in the 2015 and 2016 accident years.

(12)

Primarily reflects favorable prior accident year loss reserve development in the directors’ and officers’ liability and umbrella/excess lines of business in the 2011 through 2015 accident years, partially offset by unfavorable prior accident year loss reserve development in the professional liability lines of business in the 2016 through 2018 accident years.

(13)

Primarily reflects favorable prior accident year loss reserve development in the umbrella/excess lines of business in the 2005 through 2012 accident years, partially offset by unfavorable prior accident year loss reserve development in the directors’ and officers’ liability lines of business in the 2009, 2012 and 2016 accident years.

(14)

Primarily reflects favorable prior accident year loss reserve development in the umbrella/excess lines of business in the 2005 through 2011 accident years.

(15)

Primarily reflects favorable prior accident year loss reserve development related to Superstorm Sandy in the 2012 accident year, Hurricanes Florence and Michael in the 2018 accident year and Hurricanes Harvey and Maria in the 2017 accident year, partially offset by assumed property reinsurance lines of business from both catastrophe and non-catastrophe losses in the 2018 accident year.

(16)

Primarily reflects favorable prior accident year loss reserve development related to Hurricane Irma in the 2017 accident year and, to a lesser extent, Hurricane Matthew in the 2016 accident year, as well as various other losses not classified as catastrophes in recent accident years.

(17)

Primarily reflects favorable prior accident year catastrophe loss reserve development in the 2016 accident year, partially offset by unfavorable prior accident year property loss reserve development in the binding authority lines of business primarily in the 2015 and 2016 accident years.

(18)

Primarily reflects unfavorable prior accident year loss reserves development related to the professional liability and other casualty lines of business in the 2015 through 2018 accident years.

(19)

Primarily reflects favorable prior accident year loss reserve development in the surety lines of business in the 2016 and 2017 accident years.

(20)

Primarily reflects favorable prior accident year loss reserve development in the casualty lines of business in the 2010, 2014, 2015 and 2016 accident years.

(21)

Represents certain specialty lines of business written through a program administrator in connection with a terminated program in the 2010 and 2009 accident years and reflects favorable loss emergence compared with loss emergence patterns assumed in earlier periods for such business.

(22)

Primarily reflects favorable prior accident year loss reserve development in the 2013 and prior accident years.

(c) Information on Incurred and Paid Loss and LAE Development

The following is information about incurred and paid loss and LAE development, net of reinsurance. The information for 2010 through 2018 is unaudited and is provided as supplementary information. Information is also included for the portion of unpaid loss and LAE, net of reinsurance recoverables, that relate to IBNR and, for the insurance segment, the cumulative number of reported insurance claims. For the reinsurance segment, reported insurance claim information is generally not received from the cedants, and such information is therefore impracticable to disclose.

Reinsurance Segment

Property

 

 

 

Incurred Loss and LAE, Net of Reinsurance

 

 

As of

 

 

 

Year Ended December 31,

 

 

December 31, 2019

 

Accident

Year

 

2010

(unaudited)

 

 

2011

(unaudited)

 

 

2012

(unaudited)

 

 

2013

(unaudited)

 

 

2014

(unaudited)

 

 

2015

(unaudited)

 

 

2016

(unaudited)

 

 

2017

(unaudited)

 

 

2018

(unaudited)

 

 

2019

 

 

IBNR

 

 

 

($ in millions)

 

2010

 

$

615.6

 

 

$

527.1

 

 

$

528.0

 

 

$

540.4

 

 

$

581.2

 

 

$

606.0

 

 

$

609.9

 

 

$

613.0

 

 

$

605.3

 

 

$

601.3

 

 

$

8.8

 

2011

 

 

 

 

 

 

1,351.2

 

 

 

1,342.3

 

 

 

1,269.4

 

 

 

1,240.7

 

 

 

1,235.2

 

 

 

1,217.1

 

 

 

1,210.9

 

 

 

1,209.6

 

 

 

1,207.7

 

 

 

0.8

 

2012

 

 

 

 

 

 

 

 

 

 

697.2

 

 

 

579.1

 

 

 

530.3

 

 

 

495.6

 

 

 

478.1

 

 

 

469.4

 

 

 

462.5

 

 

 

460.3

 

 

 

4.0

 

2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

501.2

 

 

 

470.6

 

 

 

444.6

 

 

 

422.1

 

 

 

406.8

 

 

 

403.6

 

 

 

398.1

 

 

 

2.4

 

2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

496.4

 

 

 

464.8

 

 

 

451.3

 

 

 

435.2

 

 

 

429.8

 

 

 

425.1

 

 

 

6.0

 

2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

368.8

 

 

 

332.0

 

 

 

320.6

 

 

 

306.3

 

 

 

301.9

 

 

 

3.6

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

684.1

 

 

 

647.2

 

 

 

596.7

 

 

 

587.9

 

 

 

19.2

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,174.6

 

 

 

1,179.5

 

 

 

1,148.3

 

 

 

30.2

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,152.7

 

 

 

1,169.4

 

 

 

137.0

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

988.7

 

 

 

355.4

 

Total Incurred Loss and LAE for the 2010 through 2019 accident years

 

 

$

7,288.7

 

 

 

 

 

 

 

 

Paid Loss and LAE, Net of Reinsurance

 

 

 

Year Ended December 31,

 

Accident

Year

 

2010

(unaudited)

 

 

2011

(unaudited)

 

 

2012

(unaudited)

 

 

2013

(unaudited)

 

 

2014

(unaudited)

 

 

2015

(unaudited)

 

 

2016

(unaudited)

 

 

2017

(unaudited)

 

 

2018

(unaudited)

 

 

2019

 

 

 

($ in millions)

 

2010

 

$

169.3

 

 

$

349.0

 

 

$

418.9

 

 

$

472.3

 

 

$

513.5

 

 

$

540.1

 

 

$

563.7

 

 

$

571.5

 

 

$

575.1

 

 

$

581.9

 

2011

 

 

 

 

 

 

407.8

 

 

 

796.4

 

 

 

1,014.3

 

 

 

1,129.2

 

 

 

1,171.0

 

 

 

1,187.2

 

 

 

1,195.0

 

 

 

1,199.7

 

 

 

1,195.3

 

2012

 

 

 

 

 

 

 

 

 

 

90.3

 

 

 

268.9

 

 

 

377.8

 

 

 

416.7

 

 

 

438.0

 

 

 

448.0

 

 

 

451.2

 

 

 

460.1

 

2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

113.1

 

 

 

277.4

 

 

 

361.0

 

 

 

389.8

 

 

 

396.7

 

 

 

399.7

 

 

 

401.4

 

2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

109.4

 

 

 

297.6

 

 

 

360.0

 

 

 

382.9

 

 

 

394.0

 

 

 

397.3

 

2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

96.0

 

 

 

217.7

 

 

 

278.3

 

 

 

303.1

 

 

 

307.6

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

210.5

 

 

 

429.8

 

 

 

504.8

 

 

 

535.1

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

324.5

 

 

 

818.5

 

 

 

977.9

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

309.5

 

 

 

811.8

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

265.1

 

Cumulative Paid Loss and LAE for the 2010 through 2019 accident years

 

 

$

5,933.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total incurred loss and LAE for the 2010 through 2019 accident years

 

 

$

7,288.7

 

Cumulative paid loss and LAE for the 2010 through 2019 accident years

 

 

 

5,933.5

 

Unpaid loss and LAE, net of reinsurance recoverables, for accident years prior to 2010

 

 

 

6.0

 

Unpaid loss and LAE, net of reinsurance recoverables, as of December 31, 2019

 

 

$

1,361.2

 

 

 Reinsurance Segment

Casualty & other – Longer-Tailed Lines of Business(1)

 

 

 

Incurred Loss and LAE, Net of Reinsurance

 

 

As of

 

 

 

Year Ended December 31,

 

 

December 31, 2019

 

Accident

Year

 

2010

(unaudited)

 

 

2011

(unaudited)

 

 

2012

(unaudited)

 

 

2013

(unaudited)

 

 

2014

(unaudited)

 

 

2015

(unaudited)

 

 

2016

(unaudited)

 

 

2017

(unaudited)

 

 

2018

(unaudited)

 

 

2019

 

 

IBNR

 

 

 

($ in millions)

 

2010

 

$

1,098.6

 

 

$

1,101.9

 

 

$

1,090.7

 

 

$

1,063.5

 

 

$

1,015.5

 

 

$

999.3

 

 

$

977.6

 

 

$

962.9

 

 

$

959.7

 

 

$

951.3

 

 

$

102.0

 

2011

 

 

 

 

 

 

996.0

 

 

 

1,009.6

 

 

 

994.6

 

 

 

974.6

 

 

 

959.1

 

 

 

949.9

 

 

 

942.6

 

 

 

925.5

 

 

 

920.6

 

 

 

116.5

 

2012

 

 

 

 

 

 

 

 

 

 

877.5

 

 

 

877.5

 

 

 

875.9

 

 

 

860.8

 

 

 

833.1

 

 

 

829.8

 

 

 

832.4

 

 

 

826.4

 

 

 

121.3

 

2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

798.6

 

 

 

802.2

 

 

 

799.2

 

 

 

777.5

 

 

 

776.7

 

 

 

783.0

 

 

 

767.4

 

 

 

184.0

 

2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

801.8

 

 

 

791.1

 

 

 

794.3

 

 

 

793.9

 

 

 

790.3

 

 

 

784.8

 

 

 

205.2

 

2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

794.8

 

 

 

799.0

 

 

 

797.0

 

 

 

793.7

 

 

 

799.1

 

 

 

226.4

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

776.7

 

 

 

776.8

 

 

 

787.4

 

 

 

807.8

 

 

 

268.0

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

764.4

 

 

 

765.7

 

 

 

783.4

 

 

 

385.8

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

727.3

 

 

 

741.6

 

 

 

510.4

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

759.7

 

 

 

672.5

 

Total Incurred Loss and LAE for the 2010 through 2019 accident years

 

 

$

8,142.1

 

 

 

 

 

 

 

 

Paid Loss and LAE, Net of Reinsurance

 

 

 

Year Ended December 31,

 

Accident

Year

 

2010

(unaudited)

 

 

2011

(unaudited)

 

 

2012

(unaudited)

 

 

2013

(unaudited)

 

 

2014

(unaudited)

 

 

2015

(unaudited)

 

 

2016

(unaudited)

 

 

2017

(unaudited)

 

 

2018

(unaudited)

 

 

2019

 

 

 

($ in millions)

 

2010

 

$

33.8

 

 

$

108.4

 

 

$

208.5

 

 

$

322.3

 

 

$

438.7

 

 

$

573.9

 

 

$

644.3

 

 

$

688.9

 

 

$

735.8

 

 

$

770.2

 

2011

 

 

 

 

 

 

29.6

 

 

 

89.4

 

 

 

206.4

 

 

 

373.4

 

 

 

501.8

 

 

 

595.1

 

 

 

663.0

 

 

 

709.1

 

 

 

748.2

 

2012

 

 

 

 

 

 

 

 

 

 

46.9

 

 

 

106.8

 

 

 

201.1

 

 

 

316.6

 

 

 

435.7

 

 

 

521.3

 

 

 

587.0

 

 

 

624.4

 

2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

22.2

 

 

 

85.1

 

 

 

176.6

 

 

 

296.4

 

 

 

378.0

 

 

 

452.7

 

 

 

494.6

 

2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

29.8

 

 

 

107.5

 

 

 

229.6

 

 

 

342.9

 

 

 

444.7

 

 

 

522.7

 

2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

32.2

 

 

 

100.4

 

 

 

205.0

 

 

 

325.8

 

 

 

455.8

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

34.8

 

 

 

121.8

 

 

 

242.9

 

 

 

370.0

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

34.0

 

 

 

110.6

 

 

 

221.8

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

33.0

 

 

 

104.6

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

29.0

 

Cumulative Paid Loss and LAE for the 2010 through 2019 accident years

 

 

$

4,341.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total incurred loss and LAE for the 2010 through 2019 accident years

 

 

$

8,142.1

 

Cumulative paid loss and LAE for the 2010 through 2019 accident years

 

 

 

4,341.3

 

Unpaid loss and LAE, net of reinsurance recoverables, for accident years prior to 2010

 

 

 

776.5

 

Unpaid loss and LAE, net of reinsurance recoverables, as of December 31, 2019

 

 

$

4,577.3

 

 

(1)

Represents the following reinsurance lines of business: directors’ and officers’ liability; errors and omissions liability; general liability; and medical malpractice.


 

Reinsurance Segment

Casualty & other – Shorter-Tailed Lines of Business(1)

 

 

 

Incurred Loss and LAE, Net of Reinsurance

 

 

As of

 

 

 

Year Ended December 31,

 

 

December 31, 2019

 

Accident

Year

 

2010

(unaudited)

 

 

2011

(unaudited)

 

 

2012

(unaudited)

 

 

2013

(unaudited)

 

 

2014

(unaudited)

 

 

2015

(unaudited)

 

 

2016

(unaudited)

 

 

2017

(unaudited)

 

 

2018

(unaudited)

 

 

2019

 

 

IBNR

 

 

 

($ in millions)

 

2010

 

$

1,024.5

 

 

$

1,007.0

 

 

$

985.9

 

 

$

978.3

 

 

$

967.2

 

 

$

954.0

 

 

$

950.3

 

 

$

943.4

 

 

$

927.7

 

 

$

924.2

 

 

$

9.1

 

2011

 

 

 

 

 

 

1,031.2

 

 

 

1,023.6

 

 

 

1,007.6

 

 

 

992.8

 

 

 

973.0

 

 

 

963.7

 

 

 

959.8

 

 

 

976.0

 

 

 

972.9

 

 

 

15.9

 

2012

 

 

 

 

 

 

 

 

 

 

1,022.3

 

 

 

1,059.9

 

 

 

1,056.8

 

 

 

1,005.5

 

 

 

983.9

 

 

 

958.9

 

 

 

948.4

 

 

 

941.4

 

 

 

19.8

 

2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

850.8

 

 

 

868.8

 

 

 

838.4

 

 

 

823.4

 

 

 

804.1

 

 

 

790.3

 

 

 

780.7

 

 

 

28.8

 

2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

850.4

 

 

 

833.0

 

 

 

808.8

 

 

 

784.3

 

 

 

772.4

 

 

 

755.0

 

 

 

38.7

 

2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

763.4

 

 

 

768.6

 

 

 

784.0

 

 

 

798.4

 

 

 

776.7

 

 

 

46.1

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,118.0

 

 

 

1,124.4

 

 

 

1,111.6

 

 

 

1,100.3

 

 

 

80.0

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,095.9

 

 

 

1,046.3

 

 

 

1,026.9

 

 

 

169.7

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,255.4

 

 

 

1,266.1

 

 

 

288.7

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,408.6

 

 

 

689.4

 

Total Incurred Loss and LAE for the 2010 through 2019 accident years

 

 

$

9,952.8

 

 

 

 

 

 

 

 

Paid Loss and LAE, Net of Reinsurance

 

 

 

Year Ended December 31,

 

Accident

Year

 

2010

(unaudited)

 

 

2011

(unaudited)

 

 

2012

(unaudited)

 

 

2013

(unaudited)

 

 

2014

(unaudited)

 

 

2015

(unaudited)

 

 

2016

(unaudited)

 

 

2017

(unaudited)

 

 

2018

(unaudited)

 

 

2019

 

 

 

($ in millions)

 

2010

 

$

404.9

 

 

$

671.3

 

 

$

776.5

 

 

$

832.7

 

 

$

866.7

 

 

$

884.8

 

 

$

897.5

 

 

$

903.7

 

 

$

909.6

 

 

$

916.0

 

2011

 

 

 

 

 

 

376.5

 

 

 

606.4

 

 

 

752.7

 

 

 

820.9

 

 

 

858.8

 

 

 

880.2

 

 

 

894.5

 

 

 

906.1

 

 

 

915.1

 

2012

 

 

 

 

 

 

 

 

 

 

354.8

 

 

 

614.5

 

 

 

740.0

 

 

 

792.7

 

 

 

828.3

 

 

 

846.5

 

 

 

860.2

 

 

 

871.4

 

2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

265.4

 

 

 

523.5

 

 

 

613.3

 

 

 

663.0

 

 

 

685.5

 

 

 

704.9

 

 

 

717.5

 

2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

251.2

 

 

 

421.1

 

 

 

523.3

 

 

 

572.9

 

 

 

604.6

 

 

 

627.8

 

2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

218.5

 

 

 

409.1

 

 

 

518.7

 

 

 

577.7

 

 

 

629.1

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

367.2

 

 

 

685.6

 

 

 

828.7

 

 

 

921.3

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

342.8

 

 

 

639.1

 

 

 

793.5

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

397.9

 

 

 

774.4

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

462.0

 

Cumulative Paid Loss and LAE for the 2010 through 2019 accident years

 

 

$

7,628.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total incurred loss and LAE for the 2010 through 2019 accident years

 

 

$

9,952.8

 

Cumulative paid loss and LAE for the 2010 through 2019 accident years

 

 

 

7,628.1

 

Unpaid loss and LAE, net of reinsurance recoverables, for accident years prior to 2010

 

 

 

153.1

 

Unpaid loss and LAE, net of reinsurance recoverables, as of December 31, 2019

 

 

$

2,477.8

 

 

(1)

Primarily represents the following reinsurance lines of business: ocean marine and aviation; auto liability; accident & health; mortgage reinsurance; surety; and credit.


 

Insurance Segment

RSUI - Property

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of

December 31, 2019

 

 

 

Incurred Loss and LAE, Net of Reinsurance

 

 

 

 

 

 

Cumulative

 

 

 

Year Ended December 31,

 

 

 

 

 

 

Number of

 

Accident

Year

 

2010

(unaudited)

 

 

2011

(unaudited)

 

 

2012

(unaudited)

 

 

2013

(unaudited)

 

 

2014

(unaudited)

 

 

2015

(unaudited)

 

 

2016

(unaudited)

 

 

2017

(unaudited)

 

 

2018

(unaudited)

 

 

2019

 

 

IBNR

 

 

Reported

Claims(2)

 

 

 

($ in millions)

 

2010

 

$

110.2

 

 

$

101.7

 

 

$

101.8

 

 

$

105.7

 

 

$

104.2

 

 

$

109.8

 

 

$

109.9

 

 

$

109.6

 

 

$

101.7

 

 

$

101.7

 

 

$

0.8

 

 

 

1,631

 

2011

 

 

 

 

 

 

168.8

 

 

 

162.0

 

 

 

160.5

 

 

 

159.9

 

 

 

159.0

 

 

 

159.3

 

 

 

159.3

 

 

 

159.9

 

 

 

160.2

 

 

 

1.0

 

 

 

2,207

 

2012

 

 

 

 

 

 

 

 

 

 

270.9

 

 

 

262.5

 

 

 

258.6

 

 

 

256.1

 

 

 

235.1

 

 

 

236.1

 

 

 

235.5

 

 

 

228.3

 

 

 

1.1

 

 

 

2,311

 

2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

157.3

 

 

 

157.2

 

 

 

150.4

 

 

 

152.1

 

 

 

152.4

 

 

 

152.5

 

 

 

154.3

 

 

 

1.6

 

 

 

2,394

 

2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

170.7

 

 

 

166.2

 

 

 

155.9

 

 

 

153.7

 

 

 

153.8

 

 

 

153.6

 

 

 

1.9

 

 

 

3,091

 

2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

140.5

 

 

 

136.1

 

 

 

142.6

 

 

 

141.3

 

 

 

140.1

 

 

 

2.6

 

 

 

3,004

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

181.4

 

 

 

170.5

 

 

 

172.9

 

 

 

173.9

 

 

 

3.3

 

 

 

3,365

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

330.7

 

 

 

306.5

 

 

 

304.1

 

 

 

23.1

 

 

 

3,668

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

259.9

 

 

 

265.7

 

 

 

42.9

 

 

 

2,992

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

204.3

 

 

 

57.2

 

 

 

2,888

 

Total Incurred Loss and LAE for the 2010 through 2019 accident years

 

 

$

1,886.2

 

 

 

 

 

 

 

 

 

 

 

 

Paid Loss and LAE, Net of Reinsurance

 

 

 

Year Ended December 31,

 

Accident

Year

 

2010

(unaudited)

 

 

2011

(unaudited)

 

 

2012

(unaudited)

 

 

2013

(unaudited)

 

 

2014

(unaudited)

 

 

2015

(unaudited)

 

 

2016

(unaudited)

 

 

2017

(unaudited)

 

 

2018

(unaudited)

 

 

2019

 

 

 

($ in millions)

 

2010

 

$

53.0

 

 

$

83.6

 

 

$

92.4

 

 

$

98.6

 

 

$

100.6

 

 

$

101.1

 

 

$

101.5

 

 

$

101.3

 

 

$

100.8

 

 

$

100.9

 

2011

 

 

 

 

 

 

61.0

 

 

 

118.4

 

 

 

144.0

 

 

 

154.3

 

 

 

156.1

 

 

 

157.2

 

 

 

157.6

 

 

 

158.6

 

 

 

158.8

 

2012

 

 

 

 

 

 

 

 

 

 

62.0

 

 

 

157.5

 

 

 

181.9

 

 

 

193.5

 

 

 

202.4

 

 

 

216.2

 

 

 

216.7

 

 

 

219.2

 

2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

72.7

 

 

 

118.7

 

 

 

134.0

 

 

 

141.1

 

 

 

144.0

 

 

 

148.7

 

 

 

151.5

 

2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

93.2

 

 

 

133.8

 

 

 

145.0

 

 

 

148.8

 

 

 

150.3

 

 

 

151.3

 

2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

70.8

 

 

 

106.9

 

 

 

120.0

 

 

 

129.8

 

 

 

136.5

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

72.0

 

 

 

127.1

 

 

 

147.1

 

 

 

161.2

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

88.6

 

 

 

213.3

 

 

 

253.3

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

62.3

 

 

 

175.1

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

79.8

 

Cumulative Paid Loss and LAE for the 2010 through 2019 accident years

 

 

$

1,587.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total incurred loss and LAE for the 2010 through 2019 accident years

 

 

$

1,886.2

 

Cumulative paid loss and LAE for the 2010 through 2019 accident years

 

 

 

1,587.6

 

Unpaid loss and LAE, net of reinsurance recoverables, for accident years prior to 2010

 

 

 

3.7

 

Unpaid loss and LAE, net of reinsurance recoverables, as of December 31, 2019

 

 

$

302.3

 

 

(1)

Represents claims reported by insured claimants.


 

Insurance Segment

RSUI - Casualty

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of

December 31, 2019

 

 

 

Incurred Loss and LAE, Net of Reinsurance

 

 

 

 

 

 

Cumulative

 

 

 

Year Ended December 31,

 

 

 

 

 

 

Number of

 

Accident

Year

 

2010

(unaudited)

 

 

2011

(unaudited)

 

 

2012

(unaudited)

 

 

2013

(unaudited)

 

 

2014

(unaudited)

 

 

2015

(unaudited)

 

 

2016

(unaudited)

 

 

2017

(unaudited)

 

 

2018

(unaudited)

 

 

2019

 

 

IBNR

 

 

Reported

Claims(2)

 

 

 

($ in millions)

 

2010

 

$

204.1

 

 

$

204.1

 

 

$

204.1

 

 

$

203.4

 

 

$

194.6

 

 

$

178.6

 

 

$

177.0

 

 

$

171.0

 

 

$

168.0

 

 

$

166.7

 

 

$

7.5

 

 

 

6,986

 

2011

 

 

 

 

 

 

205.9

 

 

 

205.9

 

 

 

208.3

 

 

 

212.1

 

 

 

211.6

 

 

 

206.8

 

 

 

202.0

 

 

 

189.7

 

 

 

184.9

 

 

 

13.3

 

 

 

7,551

 

2012

 

 

 

 

 

 

 

 

 

 

226.3

 

 

 

226.3

 

 

 

230.3

 

 

 

242.8

 

 

 

238.9

 

 

 

233.8

 

 

 

231.9

 

 

 

221.8

 

 

 

31.9

 

 

 

7,681

 

2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

264.8

 

 

 

264.8

 

 

 

277.6

 

 

 

280.1

 

 

 

279.0

 

 

 

273.5

 

 

 

269.6

 

 

 

44.4

 

 

 

8,731

 

2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

292.0

 

 

 

322.7

 

 

 

321.1

 

 

 

322.4

 

 

 

320.3

 

 

 

310.9

 

 

 

56.8

 

 

 

10,242

 

2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

300.2

 

 

 

300.2

 

 

 

304.2

 

 

 

302.2

 

 

 

291.4

 

 

 

83.6

 

 

 

9,375

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

290.7

 

 

 

293.7

 

 

 

301.3

 

 

 

312.0

 

 

 

83.0

 

 

 

8,917

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

282.5

 

 

 

286.4

 

 

 

299.1

 

 

 

121.6

 

 

 

8,716

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

290.0

 

 

 

301.5

 

 

 

185.6

 

 

 

8,730

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

316.9

 

 

 

267.7

 

 

 

7,267

 

Total Incurred Loss and LAE for the 2010 through 2019 accident years

 

 

$

2,674.8

 

 

 

 

 

 

 

 

 

 

 

 

Paid Loss and LAE, Net of Reinsurance

 

 

 

Year Ended December 31,

 

Accident

Year

 

2010

(unaudited)

 

 

2011

(unaudited)

 

 

2012

(unaudited)

 

 

2013

(unaudited)

 

 

2014

(unaudited)

 

 

2015

(unaudited)

 

 

2016

(unaudited)

 

 

2017

(unaudited)

 

 

2018

(unaudited)

 

 

2019

 

 

 

($ in millions)

 

2010

 

$

4.7

 

 

$

30.9

 

 

$

70.1

 

 

$

90.1

 

 

$

122.6

 

 

$

128.6

 

 

$

132.9

 

 

$

149.2

 

 

$

152.3

 

 

$

158.1

 

2011

 

 

 

 

 

 

6.5

 

 

 

31.9

 

 

 

66.7

 

 

 

100.3

 

 

 

118.4

 

 

 

138.5

 

 

 

150.0

 

 

 

153.6

 

 

 

156.4

 

2012

 

 

 

 

 

 

 

 

 

 

6.8

 

 

 

38.4

 

 

 

96.0

 

 

 

125.5

 

 

 

144.0

 

 

 

159.3

 

 

 

166.7

 

 

 

176.1

 

2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10.1

 

 

 

50.0

 

 

 

103.4

 

 

 

146.2

 

 

 

176.6

 

 

 

191.3

 

 

 

203.9

 

2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13.0

 

 

 

69.5

 

 

 

130.1

 

 

 

179.1

 

 

 

206.5

 

 

 

234.6

 

2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9.0

 

 

 

47.3

 

 

 

96.6

 

 

 

129.2

 

 

 

176.5

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13.7

 

 

 

69.2

 

 

 

123.6

 

 

 

197.8

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9.4

 

 

 

63.6

 

 

 

115.6

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13.0

 

 

 

70.4

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12.9

 

Cumulative Paid Loss and LAE for the 2010 through 2019 accident years

 

 

$

1,502.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total incurred loss and LAE for the 2010 through 2019 accident years

 

 

$

2,674.8

 

Cumulative paid loss and LAE for the 2010 through 2019 accident years

 

 

 

1,502.3

 

Unpaid loss and LAE, net of reinsurance recoverables, for accident years prior to 2010

 

 

 

64.4

 

Unpaid loss and LAE, net of  reinsurance recoverables, as of December 31, 2019

 

 

$

1,236.9

 

 

(1)

Represents claims reported by insured claimants.


 

Insurance Segment

CapSpecialty(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of

December 31, 2019

 

 

 

Incurred Loss and LAE, Net of Reinsurance

 

 

 

 

 

 

Cumulative

 

 

 

Year Ended December 31,

 

 

 

 

 

 

Number of

 

Accident

Year

 

2010

(unaudited)

 

 

2011

(unaudited)

 

 

2012

(unaudited)

 

 

2013

(unaudited)

 

 

2014

(unaudited)

 

 

2015

(unaudited)

 

 

2016

(unaudited)

 

 

2017

(unaudited)

 

 

2018

(unaudited)

 

 

2019

 

 

IBNR

 

 

Reported

Claims(1)

 

 

 

($ in millions)

 

2010

 

$

93.2

 

 

$

110.8

 

 

$

117.9

 

 

$

134.8

 

 

$

134.5

 

 

$

129.8

 

 

$

129.5

 

 

$

127.7

 

 

$

127.2

 

 

$

129.6

 

 

$

3.8

 

 

 

8,212

 

2011

 

 

 

 

 

 

74.0

 

 

 

71.2

 

 

 

74.4

 

 

 

76.9

 

 

 

79.4

 

 

 

78.4

 

 

 

78.2

 

 

 

77.7

 

 

 

77.6

 

 

 

0.5

 

 

 

5,695

 

2012

 

 

 

 

 

 

 

 

 

 

72.7

 

 

 

71.8

 

 

 

66.2

 

 

 

69.3

 

 

 

69.7

 

 

 

68.7

 

 

 

68.8

 

 

 

69.1

 

 

 

0.4

 

 

 

5,265

 

2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

78.7

 

 

 

81.4

 

 

 

85.2

 

 

 

84.4

 

 

 

87.2

 

 

 

88.6

 

 

 

87.4

 

 

 

1.1

 

 

 

5,166

 

2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

102.8

 

 

 

102.7

 

 

 

101.0

 

 

 

100.2

 

 

 

98.6

 

 

 

97.6

 

 

 

2.4

 

 

 

5,952

 

2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

111.0

 

 

 

111.8

 

 

 

109.2

 

 

 

109.7

 

 

 

112.4

 

 

 

4.2

 

 

 

5,551

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

129.4

 

 

 

132.4

 

 

 

132.7

 

 

 

135.0

 

 

 

14.5

 

 

 

6,131

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

147.3

 

 

 

143.7

 

 

 

157.6

 

 

 

31.5

 

 

 

6,318

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

164.1

 

 

 

173.3

 

 

 

66.9

 

 

 

6,319

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

193.0

 

 

 

134.1

 

 

 

4,955

 

Total Incurred Loss and LAE for the 2010 through 2019 accident years

 

 

$

1,232.6

 

 

 

 

 

 

 

 

 

 

 

 

Paid Loss and LAE, Net of Reinsurance

 

 

 

Year Ended December 31,

 

Accident

Year

 

2010

(unaudited)

 

 

2011

(unaudited)

 

 

2012

(unaudited)

 

 

2013

(unaudited)

 

 

2014

(unaudited)

 

 

2015

(unaudited)

 

 

2016

(unaudited)

 

 

2017

(unaudited)

 

 

2018

(unaudited)

 

 

2019

 

 

 

($ in millions)

 

2010

 

$

22.0

 

 

$

56.2

 

 

$

78.4

 

 

$

98.1

 

 

$

111.0

 

 

$

119.2

 

 

$

121.6

 

 

$

123.9

 

 

$

124.4

 

 

$

124.7

 

2011

 

 

 

 

 

 

16.3

 

 

 

31.9

 

 

 

44.7

 

 

 

57.7

 

 

 

67.3

 

 

 

69.8

 

 

 

73.8

 

 

 

75.7

 

 

 

76.0

 

2012

 

 

 

 

 

 

 

 

 

 

18.6

 

 

 

38.6

 

 

 

46.9

 

 

 

57.2

 

 

 

63.3

 

 

 

65.0

 

 

 

66.5

 

 

 

67.7

 

2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

23.4

 

 

 

48.0

 

 

 

62.0

 

 

 

69.6

 

 

 

78.6

 

 

 

84.5

 

 

 

85.3

 

2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

34.0

 

 

 

56.3

 

 

 

71.9

 

 

 

83.1

 

 

 

89.8

 

 

 

93.1

 

2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30.9

 

 

 

57.4

 

 

 

73.5

 

 

 

88.8

 

 

 

101.1

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30.3

 

 

 

64.0

 

 

 

86.6

 

 

 

106.1

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30.1

 

 

 

65.6

 

 

 

95.1

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31.7

 

 

 

72.4

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

29.8

 

Cumulative Paid Loss and LAE for the 2010 through 2019 accident years

 

 

$

851.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total incurred loss and LAE for the 2010 through 2019 accident years

 

 

$

1,232.6

 

Cumulative paid loss and LAE for the 2010 through 2019 accident years

 

 

 

851.3

 

Unpaid loss and LAE, net of reinsurance recoverables, for accident years prior to 2010

 

 

 

7.7

 

Unpaid loss and LAE, net of reinsurance recoverables, as of December 31, 2019

 

 

$

389.0

 

 

(1)

The vast majority of the CapSpecialty’s loss and LAE reserves relate to its casualty lines of business.

(2)

Represents claims reported by insured claimants.


 

Loss and LAE Reserve Summary and Reconciliation to Consolidated Balance Sheet

 

 

 

Unpaid loss and LAE as of December 31, 2019(1)

 

 

 

Gross Loss and

LAE Reserves

 

 

Reinsurance

Recoverables

on Unpaid

Losses

 

 

Net Loss and

LAE Reserves

 

 

 

($ in millions)

 

Reinsurance Segment:

 

 

 

 

 

 

 

 

 

 

 

 

Property

 

$

1,965.5

 

 

 

604.3

 

 

$

1,361.2

 

Casualty & other - Longer-Tailed Lines of Business

 

 

4,691.7

 

 

 

114.4

 

 

 

4,577.3

 

Casualty & other - Shorter-Tailed Lines of Business

 

 

2,666.6

 

 

 

188.8

 

 

 

2,477.8

 

 

 

 

9,323.8

 

 

 

907.5

 

 

 

8,416.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Insurance Segment:

 

 

 

 

 

 

 

 

 

 

 

 

RSUI - Property

 

 

444.6

 

 

 

142.3

 

 

 

302.3

 

RSUI - Casualty

 

 

1,801.0

 

 

 

564.1

 

 

 

1,236.9

 

RSUI

 

 

2,245.6

 

 

 

706.4

 

 

 

1,539.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CapSpecialty

 

 

424.7

 

 

 

35.7

 

 

 

389.0

 

 

 

 

2,670.3

 

 

 

742.1

 

 

 

1,928.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Eliminations

 

 

(65.7

)

 

 

(65.7

)

 

 

—

 

Total

 

$

11,928.4

 

 

$

1,583.9

 

 

$

10,344.5

 

 

(1)

Includes unallocated LAE, which aggregate to 1.1 percent of gross loss and LAE reserves as of December 31, 2019. Net loss and LAE reserves by component are shown in the preceding tables, and consolidated gross loss and LAE reserves is presented in the consolidated balance sheets.

(d) Supplementary Information on Historical Loss and LAE Duration (Unaudited)

The following table presents supplemental information about average historical loss and LAE duration, net of reinsurance, as of December 31, 2019.

 

 

 

 

 

Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance

 

 

 

 

 

As of December 31, 2019

 

 

 

Years

 

1

 

 

2

 

 

3

 

 

4

 

 

5

 

 

6

 

 

7

 

 

8

 

 

9

 

 

10

 

Reinsurance Segment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property

 

 

 

 

28.5

%

 

 

38.9

%

 

 

17.0

%

 

 

7.5

%

 

 

3.5

%

 

 

1.9

%

 

 

1.4

%

 

 

1.2

%

 

 

0.1

%

 

 

1.1

%

Casualty & other - Longer-Tailed Lines of Business

 

4.0

%

 

 

8.7

%

 

 

13.0

%

 

 

15.0

%

 

 

13.4

%

 

 

10.9

%

 

 

7.0

%

 

 

4.7

%

 

 

4.6

%

 

 

3.6

%

Casualty & other - Shorter-Tailed Lines of Business

 

34.7

%

 

 

27.5

%

 

 

13.4

%

 

 

6.8

%

 

 

4.2

%

 

 

2.3

%

 

 

1.5

%

 

 

1.0

%

 

 

0.8

%

 

 

0.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Insurance Segment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RSUI - Property

 

 

 

 

40.8

%

 

 

33.7

%

 

 

10.8

%

 

 

5.7

%

 

 

2.4

%

 

 

2.2

%

 

 

0.7

%

 

 

0.5

%

 

 

0.2

%

 

 

0.1

%

RSUI - Casualty

 

 

 

 

3.6

%

 

 

16.0

%

 

 

19.6

%

 

 

15.4

%

 

 

12.1

%

 

 

7.0

%

 

 

4.1

%

 

 

5.3

%

 

 

1.7

%

 

 

3.5

%

CapSpecialty

 

 

 

 

21.7

%

 

 

24.4

%

 

 

16.3

%

 

 

13.6

%

 

 

9.9

%

 

 

4.7

%

 

 

2.4

%

 

 

1.9

%

 

 

0.4

%

 

 

0.2

%