Losses and Loss Expenses (Tables)

12 Months Ended

Dec. 31, 2012

Segment Reporting Information [Line Items]

(U.S. dollars in thousands)	2012		2011
Reserve for reported losses and loss expenses	$	7,976,121	$	8,153,585
Reserve for losses incurred but not reported		12,508,000		12,460,316
Unpaid losses and loss expenses	$	20,484,121	$	20,613,901

Components of incurred losses and loss expenses

(U.S. dollars in thousands)	2012		2011		2010
Loss and loss expenses payments	$	4,673,997	$	4,911,737	$	4,309,523
Change in unpaid losses and loss expenses		(297,660)		260,631		(141,589)
Change in unpaid losses and loss expenses recoverable		279,900		(28,442)		(117,120)
Paid loss recoveries		(890,755)		(1,065,535)		(839,014)
Net losses and loss expenses incurred	$	3,765,482	$	4,078,391	$	3,211,800

Reserve roll forward

(U.S. dollars in thousands)		2012		2011		2010
Unpaid losses and loss expenses at the beginning of the year		$	20,613,901	$	20,531,607	$	20,823,524
Unpaid losses and loss expenses recoverable			3,629,928		3,649,290		3,557,391
Net unpaid losses and loss expenses at the beginning of the year		$	16,983,973	$	16,882,317	$	17,266,133
Increase (decrease) in net losses and loss expenses incurred in respect of losses occurring in:
	Current year		4,081,377		4,363,258		3,584,662
	Prior year		(315,895)		(284,867)		(372,862)
	Total net incurred losses and loss expenses	$	3,765,482	$	4,078,391	$	3,211,800
Exchange rate effects			156,206		(130,533)		(125,107)
Less net losses and loss expenses paid in respect of losses occurring in:
	Current year		416,844		589,870		442,262
	Prior year		3,366,398		3,256,332		3,028,247
	Total net paid losses	$	3,783,242	$	3,846,202	$	3,470,509
Net unpaid losses and loss expenses at the end of the year			17,122,419		16,983,973		16,882,317
Unpaid losses and loss expenses recoverable			3,361,702		3,629,928		3,649,290
Unpaid losses and loss expenses at the end of the year		$	20,484,121	$	20,613,901	$	20,531,607

Components of prior year development

(U.S. dollars in thousands)	2012		2011		2010
Insurance segment	$	(140,067)	$	(76,516)	$	(127,411)
Reinsurance segment		(175,828)		(208,351)		(245,451)
Total	$	(315,895)	$	(284,867)	$	(372,862)

Asbestos and environmental related claims rollforward

Year ended December 31,
(U.S. dollars in thousands)	2012		2011		2010
Net unpaid losses and loss expenses at beginning of year	$	77,778	$	84,075	$	100,922
Net incurred losses and loss expenses		6,558		(41)		(130)
Less net paid losses and loss expenses		6,021		6,256		16,718
Net increase (decrease) in unpaid losses and loss expenses		537		(6,297)		(16,848)
Net unpaid losses and loss expenses at end of year		78,315		77,778		84,075
Unpaid losses and loss expenses recoverable at end of year		123,799		134,323		142,037
Gross unpaid losses and loss expenses at end of year	$	202,114	$	212,101	$	226,112

Schedule of open claims files for potential asbestos and environmental claims

	Asbestos		Environmental
	Claims		Claims
Total number of claims outstanding at December 31, 2009		1,437		484
New claims reported in 2010		125		31
Claims resolved in 2010		(362)		(98)
Total number of claims outstanding at December 31, 2010		1,200		417
New claims reported in 2011		106		36
Claims resolved in 2011		(268)		(91)
Total number of claims outstanding at December 31, 2011		1,038		362
New claims reported in 2012		236		60
Claims resolved in 2012		(201)		(68)
Total number of claims outstanding at December 31, 2012		1,073		354

Insurance Segment [Member]

Segment Reporting Information [Line Items]

Components of prior year development

(U.S. dollars in thousands)	2012		2011		2010
Property	$	(46,733)	$	(8,922)	$	(23,525)
Casualty		(61,633)		34,500		28,987
Professional		(106,368)		(87,520)		(118,552)
Specialty		(61,761)		(71,285)		(66,278)
Other		136,428		56,711		51,957
Total	$	(140,067)	$	(76,516)	$	(127,411)

Reinsurance Segment [Member]

Segment Reporting Information [Line Items]

Components of prior year development

(U.S. dollars in thousands)	2012		2011		2010
Property and other short-tail lines	$	(107,613)	$	(64,267)	$	(145,768)
Casualty and other		(68,215)		(144,084)		(99,683)
Total	$	(175,828)	$	(208,351)	$	(245,451)

- Definition

Tabular disclosure of the activity in the reserve for settling insured claims and expenses incurred in the claims settlement process for the period. The estimated liability includes the amount of money that will be required for future payments of (a) claims that have been reported to the insurer, (b) claims related to insured events that have occurred but that have not been reported to the insurer as of the date the liability is estimated, and (c) claim adjustment expenses. Claim adjustment expenses include costs incurred in the claim settlement process such as legal fees; outside adjuster fees; and costs to record, process, and adjust claims.

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