Reserves for Losses and LAE (Tables)

12 Months Ended

Dec. 31, 2017

Summary of Activity in Reserve for Losses and LAE

The following table summarizes activity for our Company’s Reserves for Losses and LAE for the years ended December 31, 2017, 2016 and 2015:

	Years Ended December 31,
amounts in thousands	2017			2016			2015
Net Reserves for Losses and LAE at Beginning of Year	$	1,510,451		$	1,393,126		$	1,308,136
Provision for Losses and LAE for Claims Occurring in the Current Year		771,955			693,976			637,267
Increase (Decrease) in Estimated Losses and LAE for Claims Occurring    in Prior Years		34,310			(28,528	)		(64,669	)
Incurred Losses and LAE	$	806,265		$	665,448		$	572,598
Losses and LAE Paid for Claims Occurring During:
Current Year		(144,095	)		(119,485	)		(159,802	)
Prior Years		(478,979	)		(412,544	)		(320,863	)
Losses and LAE Payments	$	(623,074	)	$	(532,029	)	$	(480,665	)
Foreign Currency Adjustment		11,738			(16,094	)		(6,943	)
Net Reserves for Losses and LAE at End of Period		1,705,380			1,510,451			1,393,126
Reinsurance Recoverables on Unpaid Losses and LAE		809,765			779,276			809,518
Gross Reserves for Losses and LAE at End of Period	$	2,515,145		$	2,289,727		$	2,202,644

Reporting and Operating Segments Break Down of Prior Years' Net Reserve Deficiency (Redundancy)

The reporting and operating segments breakdowns of prior period net reserve strengthening (releases) for the years ended December 31, 2017, 2016 and 2015 are as follows:

	Years Ended December 31,
amounts in thousands	2017		2016			2015
U.S. Insurance
Marine	$	1,696	$	(10,122	)	$	(24,825	)
P&C		1,613		2,790			(706	)
Professional Liability		13,405		5,984			(3,788	)
Total	$	16,714	$	(1,348	)	$	(29,319	)
Int'l Insurance
Marine	$	6,518	$	(22,068	)	$	(21,914	)
P&C		3,118		(7,051	)		(8,458	)
Professional Liability		5,198		4,100			4,156
Total	$	14,834	$	(25,019	)	$	(26,216	)
GlobalRe	$	2,762	$	(2,161	)	$	(9,134	)
Total Strengthening (Releases)	$	34,310	$	(28,528	)	$	(64,669	)

Summary of Reconciliation of Net Incurred and Paid Claims Development to the Reserve for Losses and LAE

The reconciliation of the net incurred and paid claims development tables to the Reserve for losses and LAE in the consolidated statement of financial position is as follows:

	Carried Reserves Reconciliation
amounts in thousands	As of December 31, 2017
	Total Net Reserves		Reinsurance Recoverables on Unpaid Claims		Total Gross Reserves
U.S. Marine	$	101,091	$	98,373	$	199,464
U.S. P&C		849,009		371,651		1,220,660
U.S. Professional Liability		108,302		49,650		157,952
Int'l Marine		221,659		90,792		312,451
Int'l P&C		95,680		126,365		222,045
Int'l Professional Liability		116,783		55,393		172,176
GlobalRe		148,350		17,541		165,891
Liabilities for Unpaid Claims and Claim Adjustment Expenses	$	1,640,874	$	809,765	$	2,450,639
Unallocated Claims Adjustment Expenses						64,269
Other						237
Total Gross Liability for Unpaid Claims and Claim Adjustment Expense					$	2,515,145

U.S.Insurance | Marine

Summary of Information about Incurred Claims Development and Cumulative Paid Claims and Allocated Loss Adjustment Expense (ALAE), Net of Reinsurance

	U.S. Marine
	Loss and ALAE, Net of Reinsurance
amounts in thousands except # of reported claims	For the Years Ended December 31,																				As of December 31, 2017
AY	2008		2009		2010		2011		2012		2013		2014		2015		2016		2017		Total IBNR			# of Reported Claims
2008	$	56,878	$	67,421	$	72,259	$	73,734	$	73,494	$	68,393	$	68,557	$	66,717	$	66,937	$	66,849	$	282			3,194
2009				62,556		59,278		56,052		50,501		48,366		49,571		51,783		50,874		51,537		205			2,323
2010						64,753		63,812		60,035		54,813		52,847		57,008		56,458		56,281		(224	)		2,007
2011								70,219		69,293		67,640		63,099		61,912		60,329		59,750		630			1,910
2012										85,275		87,606		72,219		68,841		70,337		70,887		(619	)		1,856
2013												61,356		57,865		51,748		54,381		56,319		144			1,814
2014														59,270		42,684		41,006		45,762		(377	)		1,927
2015																61,106		51,864		50,331		5,148			2,187
2016																		53,011		48,791		12,748			2,352
2017																				54,061		23,327			1,986
																	Total		$	560,568
	U.S. Marine
	Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
amounts in thousands	For the Years Ended December 31,
AY	2008		2009		2010		2011		2012		2013		2014		2015		2016		2017
2008	$	7,554	$	36,397	$	54,175	$	56,460	$	62,398	$	62,700	$	63,027	$	63,140	$	64,029	$	64,433
2009				12,947		29,266		35,449		41,650		43,450		46,033		46,894		49,573		50,191
2010						16,582		32,323		39,825		42,896		48,114		51,887		55,096		55,249
2011								14,955		39,821		48,850		52,408		56,955		57,929		58,558
2012										27,254		46,308		54,673		60,734		67,220		69,059
2013												17,831		35,471		41,488		47,162		51,466
2014														10,717		23,415		34,899		41,021
2015																16,945		31,010		40,586
2016																		11,610		25,154
2017																				18,947
																	Total		$	474,664
																	Net reserves < 2008			15,187
																	Total Net reserves		$	101,091

	U.S. Marine
	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Years	1			2			3			4			5			6			7			8			9			10
U.S. Marine		27.7	%		31.8	%		16.7	%		8.4	%		7.7	%		3.3	%		2.2	%		1.9	%		1.3	%		0.6	%

U.S.Insurance | Property Casualty

Summary of Information about Incurred Claims Development and Cumulative Paid Claims and Allocated Loss Adjustment Expense (ALAE), Net of Reinsurance

	U.S. P&C
	Loss and ALAE, Net of Reinsurance
amounts in thousands except # of reported claims	For the Years Ended December 31,																				As of December 31, 2017
AY	2008		2009		2010		2011		2012		2013		2014		2015		2016		2017		Total IBNR		# of Reported Claims
2008	$	151,401	$	152,659	$	138,860	$	135,255	$	136,498	$	138,499	$	142,641	$	147,763	$	152,814	$	154,169	$	3,706		10,937
2009				127,237		129,613		130,860		135,984		141,186		146,321		147,036		150,294		149,622		6,143		8,515
2010						96,885		96,446		94,317		100,006		103,038		104,955		107,914		110,170		7,776		7,874
2011								79,832		78,093		86,557		89,666		90,613		98,238		100,461		12,051		6,450
2012										103,089		89,758		91,502		99,207		107,245		111,146		18,194		4,579
2013												139,517		125,952		129,100		137,298		149,409		20,569		3,898
2014														191,515		159,477		148,541		155,248		51,231		3,880
2015																244,311		218,973		214,547		76,700		3,672
2016																		271,351		243,754		190,052		3,136
2017																				295,386		263,648		2,527
																	Total		$	1,683,912
	U.S. P&C
	Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
amounts in thousands	For the Years Ended December 31,
AY	2008		2009		2010		2011		2012		2013		2014		2015		2016		2017
2008	$	10,266	$	32,307	$	54,663	$	78,024	$	99,825	$	111,420	$	119,766	$	128,886	$	142,284	$	146,295
2009				11,245		33,049		55,773		86,736		110,648		123,981		129,461		136,636		138,829
2010						11,985		26,482		46,478		65,094		77,302		85,740		90,625		97,125
2011								3,630		14,579		30,359		46,638		58,489		70,486		79,682
2012										4,761		17,311		27,513		47,005		67,502		82,906
2013												7,146		20,914		48,716		84,494		118,506
2014														5,229		13,264		44,468		74,979
2015																3,575		24,057		78,856
2016																		5,831		29,131
2017																				12,860
																	Total		$	859,169
																	Net reserves < 2008			24,266
																	Total Net reserves		$	849,009

	U.S. P&C
	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Years	1			2			3			4			5			6			7			8			9			10
U.S. P&C		5.0	%		10.9	%		17.1	%		18.6	%		15.7	%		10.0	%		5.7	%		5.5	%		5.1	%		2.6	%

U.S.Insurance | Professional Liability

Summary of Information about Incurred Claims Development and Cumulative Paid Claims and Allocated Loss Adjustment Expense (ALAE), Net of Reinsurance

	U.S. Professional Liability
	Loss and ALAE, Net of Reinsurance
amounts in thousands except # of reported claims	For the Years Ended December 31,																				As of December 31, 2017
AY	2008		2009		2010		2011		2012		2013		2014		2015		2016		2017		Total IBNR		# of Reported Claims
2008	$	34,346	$	38,449	$	39,130	$	35,844	$	37,603	$	37,939	$	37,497	$	37,620	$	41,766	$	43,003	$	875		770
2009				47,473		53,273		61,023		58,600		60,789		58,487		58,660		58,143		61,083		788		1,370
2010						52,302		64,020		68,375		75,619		74,535		86,787		85,348		86,164		932		1,431
2011								58,116		62,087		70,240		73,028		79,181		79,136		82,558		699		1,726
2012										61,196		54,480		57,097		55,917		58,344		58,563		2,254		2,175
2013												60,899		54,982		49,104		48,298		54,228		3,915		1,982
2014														50,020		35,870		39,826		42,060		5,255		2,017
2015																31,659		30,764		31,088		8,721		1,674
2016																		41,673		36,650		12,608		1,806
2017																				51,708		44,396		1,902
																	Total		$	547,105
	U.S. Professional Liability
	Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
amounts in thousands	For the Years Ended December 31,
AY	2008		2009		2010		2011		2012		2013		2014		2015		2016		2017
2008	$	1,880	$	15,288	$	25,042	$	30,581	$	34,902	$	35,206	$	35,598	$	37,175	$	42,056	$	42,046
2009				3,837		21,742		41,675		51,642		55,378		53,859		57,744		58,095		58,150
2010						2,981		23,147		46,868		54,019		59,765		82,013		84,511		84,529
2011								3,204		23,878		43,551		59,576		65,710		75,641		78,258
2012										3,855		22,635		35,681		44,028		49,675		54,728
2013												4,677		22,167		32,904		38,876		47,062
2014														2,304		14,371		29,392		35,114
2015																2,257		11,249		18,428
2016																		2,382		18,687
2017																				2,682
																	Total		$	439,684
																	Net reserves < 2008			881
																	Total Net reserves		$	108,302

	U.S. Professional Liability
	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Years	1			2			3			4			5			6			7			8			9			10
U.S. Professional Liability		5.8	%		30.6	%		25.9	%		13.7	%		9.2	%		8.9	%		3.3	%		1.4	%		5.7	%		0.0	%

International Insurance | Marine

Summary of Information about Incurred Claims Development and Cumulative Paid Claims and Allocated Loss Adjustment Expense (ALAE), Net of Reinsurance

	Int'l Marine
	Loss and ALAE, Net of Reinsurance
amounts in thousands except # of reported claims	For the Years Ended December 31,													As of December 31, 2017
AY		2012		2013		2014		2015		2016		2017		Total IBNR			# of Reported Claims
2008		$	85,148	$	80,793	$	80,589	$	84,122	$	84,449	$	83,962		(135	)		5,733
2009			96,465		91,705		90,527		83,477		82,074		81,729		(265	)		5,045
2010			132,080		130,102		119,156		114,940		112,259		108,523		(428	)		5,129
2011			100,162		85,720		82,441		77,848		73,970		74,309		(500	)		4,643
2012			110,316		132,245		107,636		100,029		93,052		92,983		(1,224	)		4,908
2013					87,987		94,614		82,641		81,989		84,100		3,168			4,716
2014							104,397		117,974		116,899		119,767		(1,483	)		4,986
2015									99,067		95,001		96,614		(1,913	)		7,400
2016											88,388		95,584		8,335			9,114
2017													107,915		32,198			7,385
										Total		$	945,486
	Int'l Marine
	Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
amounts in thousands	For the Years Ended December 31,
AY		2012		2013		2014		2015		2016		2017
2008		$	71,355	$	73,799	$	75,255	$	79,024	$	80,185	$	80,183
2009			66,388		70,553		73,321		76,783		77,487		78,772
2010			78,509		90,871		96,920		100,897		103,188		103,646
2011			45,896		59,341		63,778		68,702		69,672		70,022
2012			23,382		54,954		70,657		78,789		81,411		83,381
2013					23,731		46,552		58,687		64,859		67,730
2014							29,977		57,629		81,941		90,619
2015									22,862		54,550		76,044
2016											23,665		55,420
2017													29,082
										Total		$	734,899
										Net reserves < 2008			11,072
										Total Net reserves		$	221,659

	Int'l Marine
	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Years	1			2			3			4			5			6			7			8			9			10
Int'l Marine		25.1	%		29.7	%		19.0	%		7.8	%		4.3	%		2.4	%		2.3	%		1.9	%		1.5	%		0.0	%

International Insurance | Property Casualty

Summary of Information about Incurred Claims Development and Cumulative Paid Claims and Allocated Loss Adjustment Expense (ALAE), Net of Reinsurance

	Int'l P&C
	Loss and ALAE, Net of Reinsurance
amounts in thousands except # of reported claims	For the Years Ended December 31,													As of December 31, 2017
AY		2012		2013		2014		2015		2016		2017		Total IBNR			# of Reported Claims
2008		$	37,256	$	34,428	$	34,495	$	33,877	$	41,536	$	41,472	$	67			913
2009			38,680		40,896		40,984		40,692		34,186		34,461		206			885
2010			43,096		42,527		41,922		42,196		42,822		42,613		309			1,089
2011			71,531		61,564		59,405		59,529		59,516		55,127		221			1,216
2012			45,693		37,520		36,444		32,472		32,622		33,075		152			1,358
2013					36,044		37,520		36,599		34,499		35,443		1,027			1,592
2014							27,829		22,787		20,997		16,449		(1,396	)		1,300
2015									34,889		36,689		33,969		10			1,986
2016											79,393		92,108		18,665			3,556
2017													56,953		10,229			2,213
										Total		$	441,670
	Int'l P&C
	Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
amounts in thousands	For the Years Ended December 31,
AY		2012		2013		2014		2015		2016		2017
2008		$	38,275	$	39,489	$	39,869	$	40,398	$	40,249	$	40,333
2009			28,919		33,223		33,685		33,317		33,405		33,494
2010			35,192		40,880		43,429		41,102		41,204		41,691
2011			38,548		47,851		50,753		53,318		54,239		52,225
2012			13,238		21,578		27,084		30,135		31,332		31,596
2013					7,160		18,441		25,840		28,682		30,279
2014							3,902		9,015		13,232		16,805
2015									6,845		18,436		29,624
2016											26,190		55,749
2017													15,019
										Total		$	346,815
										Net reserves < 2008			825
										Total Net reserves		$	95,680

	Int'l P&C
	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Years	1			2			3			4			5			6			7			8			9			10
Int'l P&C		25.0	%		32.4	%		26.5	%		13.0	%		4.3	%		-1.0	%		-1.5	%		0.9	%		-0.1	%		0.2	%

International Insurance | Professional Liability

Summary of Information about Incurred Claims Development and Cumulative Paid Claims and Allocated Loss Adjustment Expense (ALAE), Net of Reinsurance

	Int'l Professional Liability
	Loss and ALAE, Net of Reinsurance
amounts in thousands except # of reported claims	For the Years Ended December 31,													As of December 31, 2017
AY		2012		2013		2014		2015		2016		2017		Total IBNR		# of Reported Claims
2008		$	11,749	$	13,524	$	13,798	$	13,829	$	14,082	$	14,463	$	258		439
2009			16,661		17,225		17,365		17,016		16,020		15,988		758		624
2010			14,423		14,023		14,225		14,221		15,864		14,639		247		745
2011			15,390		18,125		19,429		8,923		6,989		12,823		1,769		665
2012			6,835		11,506		12,789		13,457		17,168		18,068		2,365		1,102
2013					10,218		4,099		14,532		15,748		16,842		1,607		1,174
2014							20,662		24,519		23,861		21,758		4,216		1,747
2015									28,319		30,539		35,586		9,550		2,370
2016											36,167		34,218		22,567		2,744
2017													47,697		41,954		1,522
										Total		$	232,082
	Int'l Professional Liability
	Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
amounts in thousands	For the Years Ended December 31,
AY		2012		2013		2014		2015		2016		2017
2008		$	12,198	$	13,360	$	13,754	$	13,784	$	14,071	$	14,105
2009			8,954		10,901		12,983		14,008		14,331		14,918
2010			5,909		7,320		10,659		12,840		13,597		13,643
2011			1,221		2,038		2,994		4,087		4,677		16,642
2012			2,141		3,236		4,293		5,600		7,526		6,933
2013					733		2,285		3,078		9,478		13,906
2014							1,387		2,493		5,228		8,945
2015									3,457		5,939		17,502
2016											2,076		6,955
2017													2,024
										Total		$	115,573
										Net reserves < 2008			274
										Total Net reserves		$	116,783

	Int'l Professional Liability
	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Years	1			2			3			4			5			6			7			8			9			10
Int'l Professional		6.7	%		8.8	%		16.6	%		20.8	%		15.2	%		5.4	%		35.0	%		0.8	%		2.8	%		0.2	%

Global Reinsurance

Summary of Information about Incurred Claims Development and Cumulative Paid Claims and Allocated Loss Adjustment Expense (ALAE), Net of Reinsurance

	GlobalRe
	Loss and ALAE, Net of Reinsurance
amounts in thousands except # of reported claims	For the Years Ended December 31,													As of December 31, 2017
AY		2012		2013		2014		2015		2016		2017		Total IBNR			# of Reported Claims
2008		$	14,467	$	14,846	$	14,198	$	13,792	$	13,487	$	13,123	$	529			306
2009			11,247		11,381		11,267		10,516		10,567		10,406		53			200
2010			13,150		13,110		14,142		11,908		12,631		13,159		(54	)		201
2011			53,868		76,362		76,164		73,610		72,877		73,530		(438	)		769
2012			107,189		99,116		92,730		88,367		115,058		119,771		(815	)		1,456
2013					114,873		118,779		102,632		105,172		102,433		1,067			1,285
2014							119,379		142,058		121,716		118,255		5,062			1,070
2015									101,764		91,767		94,428		6,897			896
2016											88,543		90,755		15,972			749
2017													129,150		60,576			428
										Total		$	765,010
	GlobalRe
	Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
amounts in thousands	For the Years Ended December 31,
AY		2012		2013		2014		2015		2016		2017
2008		$	11,775	$	11,799	$	11,661	$	11,640	$	11,702	$	11,797
2009			8,694		8,930		9,060		10,018		10,133		10,133
2010			10,005		10,349		10,529		11,154		11,207		11,272
2011			43,450		71,138		71,816		72,102		72,246		72,414
2012			37,746		77,227		83,408		84,801		111,962		117,782
2013					53,476		82,701		90,721		98,484		100,059
2014							66,286		119,249		105,648		108,794
2015									41,660		64,527		76,973
2016											36,352		66,277
2017													43,663
										Total		$	619,164
										Net reserves < 2008			2,504
										Total Net reserves		$	148,350

	GlobalRe
	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Years	1			2			3			4			5			6			7			8			9			10
GlobalRe		39.3	%		34.0	%		3.2	%		3.8	%		8.2	%		3.3	%		3.3	%		0.5	%		0.2	%		0.7	%