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Liability for Loss and LAE (Tables)
 6 Months Ended
Jun. 30, 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 six months ended June 30, 2021 and 2020:

 

 

 

Six Months Ended

June 30,

 

 

 

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

 

 

 

 

 

 

 

 

 

 

Other adjustments

 

 

0.1

 

 

 

(2.3

)

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

Current year

 

 

2,340.8

 

 

 

2,145.5

 

Prior years

 

 

(141.5

)

 

 

(93.7

)

Total incurred loss and LAE, net of reinsurance

 

 

2,199.3

 

 

 

2,051.8

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

Current year

 

 

298.0

 

 

 

271.0

 

Prior years

 

 

1,484.3

 

 

 

1,523.7

 

Total paid loss and LAE, net of reinsurance

 

 

1,782.3

 

 

 

1,794.7

 

 

 

 

 

 

 

 

 

 

Foreign currency exchange rate effect

 

 

63.1

 

 

 

(18.5

)

 

 

 

 

 

 

 

 

 

Net reserves as of June 30

 

 

11,747.1

 

 

 

10,580.8

 

Reinsurance recoverables as of June 30(1)

 

 

1,757.4

 

 

 

1,470.5

 

Reserves as of June 30

 

$

13,504.5

 

 

$

12,051.3

 

 

(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 and six months ended June 30, 2021 and 2020:

 

 

 

Three Months Ended

June 30,

 

 

 

Six Months Ended

June 30,

 

 

 

 

2021

 

 

 

2020

 

 

 

2021

 

 

 

2020

 

 

 

 

($ in millions)

Reinsurance Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Catastrophe events (excluding Pandemic)

 

$

1.4

 

(1)

 

$

0.5

 

 

 

$

(3.0

)

(2)

 

$

(31.9

)

(3)

Pandemic

 

 

17.8

 

 

 

 

—

 

 

 

 

47.6

 

 

 

 

—

 

 

Non-catastrophe

 

 

(23.0

)

(4)

 

 

(13.5

)

(5)

 

 

(34.6

)

(4)

 

 

(27.8

)

(5)

Total

 

 

(3.8

)

 

 

 

(13.0

)

 

 

 

10.0

 

 

 

 

(59.7

)

 

Casualty & specialty:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Catastrophe events (excluding Pandemic)

 

 

0.1

 

 

 

 

(3.8

)

 

 

 

(1.2

)

 

 

 

(2.4

)

 

Pandemic

 

 

(18.5

)

 

 

 

—

 

 

 

 

(30.3

)

 

 

 

—

 

 

Non-catastrophe

 

 

(54.2

)

(6)

 

 

(34.4

)

(7)

 

 

(108.3

)

(8)

 

 

(46.8

)

(9)

Total

 

 

(72.6

)

 

 

 

(38.2

)

 

 

 

(139.8

)

 

 

 

(49.2

)

 

Total Reinsurance Segment

 

 

(76.4

)

 

 

 

(51.2

)

 

 

 

(129.8

)

 

 

 

(108.9

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Insurance Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RSUI:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Casualty

 

 

(2.6

)

(10)

 

 

16.5

 

(11)

 

 

(3.7

)

(10)

 

 

15.5

 

(11)

Property and other

 

 

(6.7

)

(12)

 

 

—

 

 

 

 

(8.3

)

(12)

 

 

(0.5

)

 

Total

 

 

(9.3

)

 

 

 

16.5

 

 

 

 

(12.0

)

 

 

 

15.0

 

 

CapSpecialty

 

 

0.2

 

(13)

 

 

—

 

 

 

 

0.3

 

(13)

 

 

0.2

 

 

Total incurred related to prior years

 

$

(85.5

)

 

 

$

(34.7

)

 

 

$

(141.5

)

 

 

$

(93.7

)

 

 

(1)

Primarily reflects unfavorable prior accident year loss reserve development related to Hurricanes Laura and Sally in the 2020 accident year, partially offset by favorable prior accident year loss reserve development related to catastrophic events in earlier accident years.

(2)

Primarily reflects favorable prior accident year loss reserve development related to catastrophic events in the 2010, 2017 and 2018 accident years, partially offset by unfavorable prior accident year loss reserve development related to Hurricanes Laura and Sally in the 2020 accident year.

(3)

Primarily reflects favorable prior accident year loss reserve development related to Typhoon Hagibis in the 2019 accident year and, to a lesser extent, catastrophic events in the 2018 accident year.

(4)

Primarily reflects favorable prior accident year loss reserve development related to the 2019 and 2020 accident years.

(5)

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

(6)

Primarily reflects favorable prior accident year loss reserve development in the longer-tailed lines of business in the 2015 and earlier accident years, and the shorter-tailed lines of business in the 2016, 2018 and 2020 accident years.

(7)

Primarily reflects favorable prior accident year loss reserve development in the longer-tailed lines of business in the 2016 and earlier accident years and in the shorter-tailed lines of business in the 2017 accident year, partially offset by unfavorable prior accident year development in the shorter-tailed lines of business in the 2018 and 2019 accident years.

(8)

Primarily reflects favorable prior accident year loss reserve development in the longer-tailed lines of business in the 2015 and earlier accident years, and the shorter-tailed lines of business in the 2019 and 2020 accident years.

(9)

Primarily reflects favorable prior accident year loss reserve development in the longer-tailed lines of business in the 2013 and earlier accident years and in the shorter-tailed lines of business in the 2017 accident year, partially offset by unfavorable prior accident year development in the shorter-tailed lines of business in the 2014 through 2016, 2018 and 2019 accident years.

(10)

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 and 2014 accident years and the binding authority lines of business in the 2011 through 2013 accident years.

(11)

Primarily reflects unfavorable prior accident year loss reserve development in the professional liability lines of business in the 2017 through 2019 accident years, partially offset by 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.

(12)

Primarily reflects favorable prior accident year loss reserve development related to losses not classified as catastrophes in recent accident years and, to a lesser extent, 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.

(13)

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