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Reserves for Losses and LAE (Tables)

12 Months Ended

Dec. 31, 2018

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, 2018, 2017 and 2016:

	Years Ended December 31,
amounts in thousands	2018			2017			2016
Net Reserves for Losses and LAE at Beginning of Year	$	1,705,380		$	1,510,451		$	1,393,126
Acquired Net Reserves		16,159			—			—
Provision for Losses and LAE for Claims Occurring in the Current Year		817,537			771,955			693,976
Increase (Decrease) in Estimated Losses and LAE for Claims Occurring in Prior Years		76,242			34,310			(28,528	)
Incurred Losses and LAE	$	893,779		$	806,265		$	665,448
Losses and LAE Paid for Claims Occurring During:
Current Year		(124,754	)		(144,095	)		(119,485	)
Prior Years		(554,733	)		(478,979	)		(412,544	)
Losses and LAE Payments	$	(679,487	)	$	(623,074	)	$	(532,029	)
Foreign Currency Adjustment		(12,047	)		11,738			(16,094	)
Net Reserves for Losses and LAE at End of Period		1,923,784			1,705,380			1,510,451
Reinsurance Recoverables on Unpaid Losses and LAE		820,189			809,765			779,276
Gross Reserves for Losses and LAE at End of Period	$	2,743,973		$	2,515,145		$	2,289,727

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, 2018, 2017 and 2016 are as follows:

	Years Ended December 31,
amounts in thousands	2018			2017		2016
U.S. Insurance
Marine	$	(789	)	$	1,696	$	(10,122	)
P&C		10,310			1,613		2,790
Professional Liability		9,387			13,405		5,984
Total	$	18,908		$	16,714	$	(1,348	)
Int'l Insurance
Marine	$	21,788		$	6,518	$	(22,068	)
P&C		(4,913	)		3,118		(7,051	)
Professional Liability		14,478			5,198		4,100
Total	$	31,353		$	14,834	$	(25,019	)
GlobalRe	$	25,981		$	2,762	$	(2,161	)
Total Strengthening (Releases)	$	76,242		$	34,310	$	(28,528	)

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, 2018
	Total Net Reserves		Reinsurance Recoverables on Unpaid Claims		Total Gross Reserves
U.S. Marine	$	90,028	$	88,783	$	178,811
U.S. P&C		977,968		387,081		1,365,049
U.S. Professional Liability		128,321		54,052		182,373
Int'l Marine		214,455		68,117		282,572
Int'l P&C		87,368		106,879		194,247
Int'l Professional Liability		162,600		86,970		249,570
GlobalRe		174,395		12,751		187,146
Liabilities for Unpaid Claims and Claim Adjustment Expenses	$	1,835,135	$	804,633	$	2,639,768
Unallocated Claims Adjustment Expenses						72,099
ASCO Reserves						31,834
Other						272
Total Gross Liability for Unpaid Claims and Claim Adjustment Expense					$	2,743,973

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, 2018
AY	2009		2010		2011		2012		2013		2014		2015		2016		2017		2018		Total IBNR		# of Reported Claims
2009	$	47,473	$	53,273	$	61,023	$	58,600	$	60,789	$	58,487	$	58,660	$	58,143	$	61,083	$	60,067	$	716		1,370
2010				52,302		64,020		68,375		75,619		74,535		86,787		85,348		86,164		87,687		477		1,430
2011						58,116		62,087		70,240		73,028		79,181		79,136		82,558		82,754		715		1,726
2012								61,196		54,480		57,097		55,917		58,344		58,563		58,040		1,657		2,175
2013										60,899		54,982		49,104		48,298		54,228		58,855		3,230		1,984
2014												49,899		35,749		39,699		41,936		43,585		4,590		2,016
2015														31,375		30,486		30,802		35,186		4,712		1,680
2016																41,053		36,036		41,299		5,266		1,813
2017																		50,825		44,346		22,367		1,980
2018																				54,629		46,916		2,017
																	Total		$	566,448


	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	2009		2010		2011		2012		2013		2014		2015		2016		2017		2018
2009	$	3,837	$	21,742	$	41,675	$	51,642	$	55,378	$	53,859	$	57,744	$	58,095	$	58,150	$	58,161
2010				2,981		23,147		46,868		54,019		59,765		82,013		84,511		84,529		85,158
2011						3,204		23,878		43,551		59,576		65,710		75,641		78,258		78,382
2012								3,855		22,635		35,681		44,028		49,675		54,728		55,215
2013										4,677		22,167		32,904		38,876		47,062		50,909
2014												2,304		14,319		29,309		35,008		37,780
2015														2,256		11,173		18,303		23,321
2016																2,351		18,283		31,563
2017																		2,613		16,246
2018																				2,719
																	Total		$	439,454
																	Net reserves < 2009			1,327
																	Total Net reserves		$	128,321

Summary of Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance

	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		5.7	%		29.1	%		26.4	%		13.7	%		8.4	%		10.0	%		3.3	%		0.3	%		0.4	%		0.0	%

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, 2018
AY	2009		2010		2011		2012		2013		2014		2015		2016		2017		2018		Total IBNR			# of Reported Claims
2009	$	62,044	$	58,500	$	55,277	$	49,650	$	47,204	$	48,488	$	50,694	$	49,870	$	50,545	$	50,625	$	105			2,334
2010				64,212		63,221		59,219		53,684		51,791		55,974		55,478		55,316		55,687		67			2,011
2011						69,652		68,967		66,900		62,464		61,258		59,709		59,151		58,237		(95	)		1,916
2012								84,927		87,253		71,941		68,546		70,057		70,573		72,896		1,774			1,863
2013										60,887		57,598		51,464		53,987		55,886		54,033		(882	)		1,818
2014												58,009		41,454		40,211		44,985		49,366		603			1,951
2015														59,296		50,837		49,341		48,027		338			2,257
2016																51,289		47,254		46,817		2,187			2,534
2017																		52,135		49,961		10,634			2,389
2018																				49,188		28,204			1,735
																	Total		$	534,837


	U.S. Marine
	Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
amounts in thousands	For the Years Ended December 31,
AY	2009		2010		2011		2012		2013		2014		2015		2016		2017		2018
2009	$	12,857	$	28,714	$	34,769	$	40,763	$	42,528	$	45,106	$	45,952	$	48,634	$	49,252	$	49,543
2010				16,258		31,769		39,081		42,017		47,173		50,963		54,163		54,321		54,612
2011						14,925		39,707		48,443		51,897		56,405		57,350		57,992		57,879
2012								27,254		46,215		54,470		60,486		66,950		68,750		69,007
2013										17,789		35,350		41,281		46,782		51,041		51,245
2014												10,677		23,162		34,453		40,487		44,852
2015														16,801		30,565		39,927		43,897
2016																11,587		24,566		38,163
2017																		18,861		32,341
2018																				11,010
																	Total		$	452,549
																	Net reserves < 2009			7,740
																	Total Net reserves		$	90,028

Summary of Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance

	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		29.2	%		29.9	%		16.7	%		8.9	%		7.7	%		3.3	%		2.2	%		1.8	%		0.9	%		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, 2018
AY	2009		2010		2011		2012		2013		2014		2015		2016		2017		2018		Total IBNR		# of Reported Claims
2009	$	127,749	$	130,391	$	131,636	$	136,835	$	142,348	$	147,405	$	148,126	$	151,298	$	150,614	$	152,609	$	4,699		8,603
2010				97,426		97,037		95,133		101,134		104,094		105,989		108,894		111,136		110,940		5,939		7,981
2011						80,399		78,420		87,297		90,301		91,267		98,857		101,061		102,403		9,172		6,623
2012								103,437		90,111		91,780		99,502		107,526		111,459		118,647		14,122		4,664
2013										139,986		126,220		129,385		137,692		149,841		156,793		14,770		4,040
2014												192,897		160,828		149,462		156,149		167,782		36,292		4,154
2015														246,404		220,278		215,822		235,390		39,530		4,115
2016																273,693		245,905		242,986		133,717		3,772
2017																		298,195		259,919		183,018		3,851
2018																				335,885		301,480		3,514
																	Total		$	1,883,354


	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	2009		2010		2011		2012		2013		2014		2015		2016		2017		2018
2009	$	11,335	$	33,601	$	56,453	$	87,622	$	111,571	$	124,908	$	130,402	$	137,576	$	139,768	$	144,224
2010				12,310		27,036		47,222		65,972		78,243		86,665		91,559		98,053		100,698
2011						3,660		14,694		30,766		47,150		59,038		71,065		80,248		85,885
2012								4,761		17,404		27,717		47,253		67,772		83,215		91,557
2013										7,188		21,035		48,923		84,874		118,932		136,446
2014												5,269		13,569		44,999		75,618		113,585
2015														3,719		24,579		79,639		142,655
2016																5,885		30,124		65,439
2017																		13,014		40,012
2018																				16,752
																	Total		$	937,253
																	Net reserves < 2009			31,867
																	Total Net reserves		$	977,968

Summary of Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance

	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		4.8	%		10.3	%		16.5	%		19.7	%		16.7	%		10.5	%		6.0	%		5.4	%		1.9	%		2.9	%

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, 2018
AY		2012		2013		2014		2015		2016		2017		2018		Total IBNR		# of Reported Claims
2009		$	16,528	$	17,061	$	17,143	$	16,785	$	15,752	$	15,711	$	14,496	$	118		624
2010			14,388		13,935		14,076		14,066		15,611		14,376		16,245		13		746
2011			15,310		17,971		19,213		8,817		6,872		12,622		10,704		3		666
2012			6,810		11,433		12,665		13,302		16,970		17,886		21,691		2		1,107
2013					10,250		4,232		14,469		15,546		16,575		15,529		0		1,181
2014							20,607		24,419		23,663		21,438		25,411		6,564		1,775
2015									28,132		30,322		35,144		40,182		5,923		2,483
2016											36,103		34,074		35,873		15,285		3,212
2017													47,610		45,128		32,642		3,642
2018															66,823		55,207		2,031
												Total		$	292,082


	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		2018
2009		$	8,879	$	10,804	$	12,857	$	13,842	$	14,136	$	14,674	$	14,842
2010			5,861		7,256		10,556		12,688		13,412		13,419		13,566
2011			1,211		2,020		2,965		4,038		4,613		16,367		16,430
2012			2,123		3,207		4,251		5,533		7,423		6,818		7,675
2013					726		2,263		3,042		9,349		13,676		14,334
2014							1,373		2,464		5,158		8,799		20,192
2015									3,417		5,864		17,242		21,128
2016											2,051		6,857		10,931
2017													1,992		5,881
2018															4,768
												Total		$	129,747
												Net reserves < 2009			265
												Total Net reserves		$	162,600

Summary of Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance

	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 Liability		5.8	%		9.4	%		16.8	%		21.5	%		27.1	%		2.3	%		39.4	%		0.9	%		2.3	%		1.2	%

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, 2018
AY		2012		2013		2014		2015		2016		2017		2018		Total IBNR			# of Reported Claims
2009		$	95,612	$	90,880	$	89,667	$	82,730	$	81,296	$	80,930	$	82,896	$	2,065			4,908
2010			130,924		128,878		118,028		113,877		111,165		107,400		107,443		330			5,231
2011			99,374		84,959		81,617		77,099		73,181		73,508		72,008		107			4,855
2012			109,784		131,234		106,553		98,960		91,991		91,844		93,931		272			5,368
2013					87,215		93,736		81,807		81,072		83,094		79,832		669			5,052
2014							104,464		117,228		115,909		118,195		112,498		(6,412	)		5,125
2015									98,245		94,055		95,449		99,103		(1,843	)		7,664
2016											87,690		94,464		89,992		1,561			10,085
2017													107,151		135,759		15,783			12,028
2018															94,251		16,778			7,603
												Total		$	967,713


	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		2018
2009		$	65,715	$	69,853	$	72,605	$	76,050	$	76,752	$	78,007	$	78,044
2010			77,626		89,896		95,906		99,875		102,161		102,597		102,841
2011			45,400		58,695		63,084		67,988		68,951		69,287		69,962
2012			23,088		54,300		69,811		77,847		80,449		82,370		84,744
2013					23,455		45,992		57,973		64,075		66,900		68,443
2014							29,625		56,964		80,943		89,506		104,801
2015									22,651		53,995		75,185		80,684
2016											23,357		54,708		66,912
2017													28,774		77,451
2018															25,404
												Total		$	759,286
												Net reserves < 2009			6,028
												Total Net reserves		$	214,455

Summary of Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance

	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		24.7	%		34.1	%		18.8	%		6.9	%		6.6	%		1.8	%		1.7	%		0.7	%		0.9	%		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, 2018
AY		2012		2013		2014		2015		2016		2017		2018		Total IBNR			# of Reported Claims
2009		$	38,479	$	40,687	$	40,776	$	40,488	$	34,049	$	34,305	$	34,679	$	(100	)		1,038
2010			42,807		42,234		41,628		41,911		42,528		42,285		40,594		(240	)		1,026
2011			71,160		61,290		59,128		59,237		59,238		54,798		59,050		(215	)		1,030
2012			45,287		37,168		36,167		32,242		32,376		32,830		32,069		(251	)		921
2013					35,862		37,182		36,307		34,221		35,185		34,656		154			1,298
2014							26,741		22,200		20,417		16,363		17,517		(497	)		1,273
2015									34,678		36,391		33,703		32,566		(86	)		2,045
2016											78,827		91,431		74,382		987			3,800
2017													56,376		70,448		15,782			3,209
2018															46,487		15,981			1,053
												Total		$	442,448


	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		2018
2009		$	28,790	$	33,079	$	33,538	$	33,180	$	33,276	$	33,359	$	34,711
2010			34,935		40,576		43,112		40,818		40,935		41,405		41,505
2011			38,362		47,594		50,480		53,034		53,963		51,940		58,422
2012			13,171		21,436		26,904		29,937		31,136		31,389		32,041
2013					7,093		18,294		25,649		28,484		30,067		32,715
2014							3,864		8,948		13,150		16,709		17,626
2015									6,780		18,293		29,420		30,659
2016											25,971		55,287		66,743
2017													14,875		35,628
2018															9,580
												Total		$	359,630
												Net reserves < 2009			4,550
												Total Net reserves		$	87,368

Summary of Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance

	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		25.5	%		34.7	%		24.5	%		10.8	%		4.5	%		3.3	%		-0.4	%		4.1	%		0.2	%		3.9	%

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, 2018
AY		2012		2013		2014		2015		2016		2017		2018		Total IBNR			# of Reported Claims
2009		$	11,158	$	11,290	$	11,171	$	10,426	$	10,466	$	10,307	$	10,610	$	338			201
2010			13,036		12,997		14,012		11,796		12,476		13,012		13,073		21			202
2011			53,778		76,261		76,054		73,528		72,782		73,428		73,474		(586	)		740
2012			107,134		99,019		92,584		88,203		114,856		119,565		118,477		(1,218	)		1,395
2013					114,785		118,688		102,514		105,049		102,323		101,705		(561	)		1,271
2014							119,351		141,968		121,591		118,131		114,981		860			1,172
2015									101,626		91,526		94,187		93,693		5,777			1,033
2016											88,401		90,567		97,921		5,781			1,022
2017													129,001		153,017		19,356			1,018
2018															128,284		83,977			435
												Total		$	905,235


	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		2018
2009		$	8,635	$	8,865	$	8,992	$	9,939	$	10,049	$	10,049	$	10,118
2010			9,927		10,263		10,439		11,058		11,105		11,170		11,203
2011			43,412		71,086		71,754		72,038		72,177		72,345		72,743
2012			37,709		77,147		83,287		84,668		111,816		117,631		118,006
2013					53,445		82,641		90,649		98,393		99,965		100,981
2014							66,271		119,195		105,574		108,693		111,712
2015									41,623		64,425		76,837		82,942
2016											36,312		66,141		84,245
2017													43,639		115,743
2018															25,017
												Total		$	732,710
												Net reserves < 2009			1,870
												Total Net reserves		$	174,395

Summary of Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance

	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		28.4	%		34.0	%		6.6	%		5.6	%		9.0	%		2.0	%		0.3	%		0.7	%		0.1	%		0.7	%