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Reinsurance Ceded (Tables)
 12 Months Ended
Dec. 31, 2019
Insurance [Abstract]  
Reinsurance Recoverables

Amounts recoverable from reinsurers are recognized in a manner consistent with the claims liabilities associated with the reinsurance placement and presented on the balance sheet as reinsurance recoverables. Such balances as of December 31, 2019 and 2018 are presented in the table below:

 

 

 

As of December 31,

 

 

 

2019

 

 

2018

 

 

 

($ in millions)

 

Reinsurance recoverables on paid losses

 

$

98.1

 

 

$

63.9

 

Ceded outstanding loss and LAE

 

 

1,583.9

 

 

 

1,857.4

 

Total

 

$

1,682.0

 

 

$

1,921.3

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

The following table presents information regarding concentration of Alleghany’s reinsurance recoverables and the ratings profile of its reinsurers as of December 31, 2019:

 

Reinsurer(1)

 

Rating(2)

 

Amount

 

 

Percentage

 

 

 

 

 

($ in millions)

 

 

 

 

 

Syndicates at Lloyd's of London

 

A (Excellent)

 

$

134.7

 

 

 

8.0

%

Kane SAC Ltd, Rondout Segregated Account(3)

 

not rated

 

 

134.6

 

 

 

8.0

%

PartnerRe Ltd

 

A (Excellent)

 

 

95.1

 

 

 

5.7

%

Swiss Reinsurance Company

 

A+ (Superior)

 

 

91.7

 

 

 

5.5

%

Fairfax Financial Holdings Ltd

 

A (Excellent)

 

 

89.6

 

 

 

5.3

%

Kane SAC Ltd, Bowery Segregated Account(3)

 

not rated

 

 

86.4

 

 

 

5.1

%

Third Point Reinsurance Group

 

A- (Excellent)

 

 

81.1

 

 

 

4.8

%

RenaissanceRe Holdings Ltd

 

A+ (Superior)

 

 

79.8

 

 

 

4.8

%

W.R. Berkley Corporation

 

A+ (Superior)

 

 

68.4

 

 

 

4.1

%

Liberty Mutual

 

A (Excellent)

 

 

60.7

 

 

 

3.6

%

All other reinsurers

 

 

 

 

759.9

 

 

 

45.1

%

Total reinsurance recoverables(4)

 

 

 

$

1,682.0

 

 

 

100.0

%

Secured reinsurance recoverables(3)

 

 

 

$

680.5

 

 

 

40.5

%

 

(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 December 31, 2019 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.

Property and Casualty Premiums Written and Earned

The following table presents property and casualty premiums written and earned for 2019, 2018 and 2017:

 

 

 

Year Ended December 31,

 

 

 

2019

 

 

2018

 

 

2017

 

 

 

($ in millions)

 

Gross premiums written – direct

 

$

1,800.3

 

 

$

1,537.8

 

 

$

1,528.7

 

Gross premiums written – assumed

 

 

4,856.1

 

 

 

4,357.8

 

 

 

4,168.2

 

Ceded premiums written

 

 

(904.7

)

 

 

(847.2

)

 

 

(731.0

)

Net premiums written

 

$

5,751.7

 

 

$

5,048.4

 

 

$

4,965.9

 

Gross premiums earned – direct

 

$

2,114.1

 

 

$

1,935.3

 

 

$

1,932.0

 

Gross premiums earned – assumed

 

 

4,268.8

 

 

 

3,881.4

 

 

 

3,790.3

 

Ceded premiums earned

 

 

(904.8

)

 

 

(840.5

)

 

 

(767.3

)

Net premiums earned

 

$

5,478.1

 

 

$

4,976.2

 

 

$

4,955.0