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Liability for Loss and LAE (Tables)
 3 Months Ended
Mar. 31, 2021
Insurance [Abstract]  
Activity in Liability for Loss and Loss Adjustment Expense

The following table presents the activity in the liability for loss and LAE for the three months ended March 31, 2021 and 2020:

 

 

 

Three Months Ended

March 31,

 

 

 

2021

 

 

2020

 

 

 

($ in millions)

 

Reserves as of January 1

 

$

12,970.6

 

 

$

11,928.4

 

Less: reinsurance recoverables(1)

 

 

1,703.7

 

 

 

1,583.9

 

Net reserves as of January 1

 

 

11,266.9

 

 

 

10,344.5

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

Current year

 

 

1,168.2

 

 

 

1,086.4

 

Prior years

 

 

(56.1

)

 

 

(59.0

)

Total incurred loss and LAE, net of reinsurance

 

 

1,112.1

 

 

 

1,027.4

 

 

 

 

 

 

 

 

 

 

Paid loss and LAE, net of reinsurance, related to:(2)

 

 

 

 

 

 

 

 

Current year

 

 

87.4

 

 

 

87.3

 

Prior years

 

 

766.8

 

 

 

770.2

 

Total paid loss and LAE, net of reinsurance

 

 

854.2

 

 

 

857.5

 

 

 

 

 

 

 

 

 

 

Foreign currency exchange rate effect

 

 

29.5

 

 

 

(7.5

)

 

 

 

 

 

 

 

 

 

Net reserves as of March 31

 

 

11,554.3

 

 

 

10,506.9

 

Reinsurance recoverables as of March 31(1)

 

 

1,738.7

 

 

 

1,559.5

 

Reserves as of March 31

 

$

13,293.0

 

 

$

12,066.4

 

 

(1)

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

(2)

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

(Favorable) Unfavorable Prior Accident Year Loss Reserve Development

The following table presents the (favorable) unfavorable prior accident year loss reserve development for the three months ended March 31, 2021 and 2020:

 

 

 

Three Months Ended

March 31,

 

 

 

 

2021

 

 

 

2020

 

 

 

 

($ in millions)

 

 

Reinsurance Segment

 

 

 

 

 

 

 

 

 

 

Property:

 

 

 

 

 

 

 

 

 

 

Catastrophe events (excluding Pandemic)

 

$

(4.5

)

(1)

 

$

(32.3

)

(2)

Pandemic

 

 

29.8

 

 

 

 

—

 

 

Non-catastrophe

 

 

(11.5

)

(3)

 

 

(14.4

)

(4)

Total

 

 

13.8

 

 

 

 

(46.7

)

 

Casualty & other:

 

 

 

 

 

 

 

 

 

 

Catastrophe events (excluding Pandemic)

 

 

(1.3

)

 

 

 

1.4

 

 

Pandemic

 

 

(11.8

)

 

 

 

—

 

 

Non-catastrophe

 

 

(54.2

)

(5)

 

 

(12.4

)

(6)

Total

 

 

(67.3

)

 

 

 

(11.0

)

 

Total Reinsurance Segment

 

 

(53.5

)

 

 

 

(57.7

)

 

 

 

 

 

 

 

 

 

 

 

 

Insurance Segment

 

 

 

 

 

 

 

 

 

 

RSUI:

 

 

 

 

 

 

 

 

 

 

Casualty

 

 

(1.1

)

(7)

 

 

(1.0

)

(8)

Property and other

 

 

(1.6

)

(9)

 

 

(0.5

)

(10)

Total

 

 

(2.7

)

 

 

 

(1.5

)

 

CapSpecialty

 

 

0.1

 

(11)

 

 

0.2

 

(12)

Total incurred related to prior years

 

$

(56.1

)

 

 

$

(59.0

)

 

 

(1)

Primarily reflects favorable prior accident year loss reserve development related to Hurricane Michael in the 2018 accident year, partially offset by unfavorable prior accident year loss reserve development related to Hurricane Laura in the 2020 accident year.

(2)

Primarily reflects favorable prior accident year loss reserve development related to Typhoon Hagibis in the 2019 accident year and catastrophes in the 2018 accident year.

(3)

Primarily reflects favorable prior accident year loss reserve development in the 2020 accident year.

(4)

Primarily reflects favorable prior accident year loss reserve development in the 2017 and 2019 accident years.

(5)

Primarily reflects favorable prior accident year loss reserve development in the longer-tailed lines of business in the 2016 and prior accident years and shorter-tailed lines of business in the 2019 and 2020 accident years, partially offset by unfavorable development in certain longer- and shorter-tailed lines of business in the 2018 accident year.

(6)

Primarily reflects favorable prior accident year loss reserve development in the longer-tailed lines of business in the 2013 and earlier accident years, partially offset by unfavorable prior accident year development in the shorter-tailed lines of business in the 2014 through 2019 accident years.

(7)

Primarily reflects favorable prior accident year loss reserve development in the umbrella/excess lines of business in the 2007 through 2014 accident years, partially offset by unfavorable prior accident year loss reserve development in the directors’ and officers’ liability lines of business in the 2013 accident year.

(8)

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 recent accident years.

(9)

Primarily reflects favorable prior accident year loss reserve development related to catastrophes in the 2017 and 2018 accident years, partially offset by unfavorable prior accident year loss reserve development related to catastrophes in the 2020 accident year.

(10)

Primarily reflects favorable prior accident year loss reserve development related to catastrophes in the 2018 accident year, partially offset by unfavorable prior accident year loss reserve development related to catastrophes in the 2017 accident year.

(11)

Primarily reflects unfavorable prior accident year loss reserve development related to several casualty lines of business.

(12)

Primarily reflects unfavorable prior accident year loss reserve development in certain specialty lines of business written through a program administrator in connection with a terminated program in the 2009 and 2010 accident years.