Reinsurance Ceded (Tables)

3 Months Ended

Mar. 31, 2021

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, 2021 and December 31, 2020 are presented in the table below:

	As of March 31,			As of December 31,
	2021			2020
	($ in millions)
Reinsurance recoverables on paid losses	$	96.5		$	85.3
Ceded outstanding loss and LAE		1,738.7			1,703.7
Reinsurance recoverables, before allowance for credit losses		1,835.2			1,789.0
Allowance for credit losses		(6.0	)		(7.9	)
Total	$	1,829.2		$	1,781.1

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 our reinsurers as of March 31, 2021:

Reinsurer⁽¹⁾	Rating⁽²⁾	Amount			Percentage
	($ in millions)
Syndicates at Lloyd's of London	A (Excellent)	$	152.4			8.3	%
Kane SAC Ltd, Rondout Segregated Account⁽³⁾	not rated		129.2			7.1	%
PartnerRe Ltd	A (Excellent)		119.9			6.5	%
RenaissanceRe Holdings Ltd	A+ (Superior)		119.9			6.5	%
Fairfax Financial Holdings Ltd	A (Excellent)		108.7			5.9	%
Swiss Reinsurance Company	A+ (Superior)		97.0			5.3	%
Third Point Reinsurance Group⁽³⁾	A- (Excellent)		79.3			4.3	%
W.R. Berkley Corporation	A+ (Superior)		73.5			4.0	%
Chubb	A++ (Superior)		71.3			3.9	%
Kane SAC Ltd, Bowery Segregated Account⁽³⁾	not rated		61.6			3.4	%
All other reinsurers			822.4			44.8	%
Total reinsurance recoverables, before allowance for credit losses⁽⁴⁾		$	1,835.2			100.0	%
Allowance for credit losses			(6.0	)
Total		$	1,829.2
Secured reinsurance recoverables⁽³⁾		$	697.8			38.0	%

(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 71 percent of our reinsurance recoverables balance as of March 31, 2021 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, 2021 and 2020:

	For the Three Months Ended March 31,
	2021			2020
	($ in millions)
Allowance for Credit Losses
Beginning balance	$	7.9		$	—
Beginning balance - cumulative effect of an accounting change		—			3.3
Provision for credit losses		(1.9	)		3.5
Charge-offs		—			—
Recoveries		—			—
Ending balance	$	6.0		$	6.8