Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Common shares, par value $0.0125 per share | AXS | New York Stock Exchange |
Depositary Shares, each representing a 1/100th interest in a 5.50% Series E preferred shares | AXS PRE | New York Stock Exchange |
Large accelerated filer |
Non-accelerated filer |
Page | ||
PART I | ||
Item 1. | ||
Item 1A. | ||
Item 1B. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
PART II | ||
Item 5. | ||
Item 6. | ||
Item 7. | ||
Item 7A. | ||
Item 8. | ||
Item 9. | ||
Item 9A. | ||
Item 9B. | ||
PART III | ||
Item 10. | ||
Item 11. | ||
Item 12. | ||
Item 13. | ||
Item 14. | ||
PART IV | ||
Item 15. | ||
Item 16. |
ITEM 1. | BUSINESS |
Year ended December 31, | 2017 | 2016 | 2015 | ||||||||||
Insurance | $ | 3,127,837 | $ | 2,720,242 | $ | 2,583,081 | |||||||
Reinsurance | 2,428,436 | 2,249,966 | 2,020,649 | ||||||||||
Total | $ | 5,556,273 | $ | 4,970,208 | $ | 4,603,730 | |||||||
Year ended December 31, | 2019 | 2018 | 2017 | ||||||||||
Insurance | $ | 3,675,931 | $ | 3,797,592 | $ | 2,814,918 | |||||||
Reinsurance | 3,222,927 | 3,112,473 | 2,741,355 | ||||||||||
Total | $ | 6,898,858 | $ | 6,910,065 | $ | 5,556,273 | |||||||
• | Property: provides physical loss or damage, business interruption and machinery breakdown cover for virtually all types of property, including commercial buildings, residential premises, construction projects and onshore renewable energy installations. This line of business includes primary and excess risks, some of which are catastrophe-exposed. |
• | Marine: provides cover for traditional marine classes, including offshore energy, cargo, liability, recreational marine, fine art, specie, and hull and war. Offshore energy coverage includes physical damage, business interruption, operator's extra expense and liability coverage for all aspects of offshore upstream energy, from exploration and construction through the operation and distribution phases. |
• | Terrorism: provides cover for physical damage and business interruption of an insured following an act of terrorism and includes kidnap and ransom, and crisis management insurance. |
• | Aviation: provides hull and liability, and specific war cover primarily for passenger airlines but also for cargo operations, general aviation operations, airports, aviation authorities, security firms and product manufacturers. |
• | Credit and Political Risk: provides credit and political risk insurance products for banks, commodity traders, corporations and multilateral and export credit agencies. Cover is provided for a range of risks including sovereign default, credit default, political violence, currency inconvertibility and non-transfer, expropriation, aircraft non-repossession and contract frustration due to political events. |
• | Professional Lines: provides directors’ and officers’ liability, errors and omissions liability, employment practices liability, fiduciary liability, crime, professional indemnity, cyber and privacy insurance, medical malpractice and other financial insurance related covers for commercial enterprises, financial institutions, not-for-profit organizations and other professional service providers. This business is predominantly written on a claims-made basis. |
• | Liability: primarily targets primary and low to mid-level excess and umbrella commercial liability risks in the U.S. wholesale markets in addition to primary and excess of loss employers, public, and products liability predominately in the U.K. Target industry sectors include construction, manufacturing, transportation and trucking, and other services. |
• | Accident and Health: includes accidental death, travel insurance and specialty health products for employer and affinity groups. |
• | Discontinued Lines - Novae: includes those lines of business that Novae exited or placed into run-off in the fourth quarter of 2016 and in the first quarter of 2017. These discontinued insurance lines include financial institutions, professional indemnity, international liability, and international direct and facultative property. |
Year ended December 31, | 2017 | 2016 | 2015 | |||||||||||||||||||
Marsh & McLennan Companies Inc. | $ | 352,661 | 11 | % | $ | 388,793 | 14 | % | $ | 416,876 | 16 | % | ||||||||||
Aon plc | 410,145 | 13 | % | 402,779 | 15 | % | 401,612 | 16 | % | |||||||||||||
Willis Tower Watson PLC | 276,085 | 9 | % | 253,887 | 9 | % | 314,615 | 12 | % | |||||||||||||
Other brokers [a] | 1,512,725 | 48 | % | 1,285,091 | 47 | % | 1,202,747 | 47 | % | |||||||||||||
Managing general agencies and underwriters [a] | 576,221 | 19 | % | 389,692 | 15 | % | 247,231 | 9 | % | |||||||||||||
Total | $ | 3,127,837 | 100 | % | $ | 2,720,242 | 100 | % | $ | 2,583,081 | 100 | % | ||||||||||
Years ended December 31, | 2019 | 2018 | 2017 | |||||||||||||||||||
Marsh & McLennan Companies Inc. | $ | 434,108 | 12 | % | $ | 380,238 | 10 | % | $ | 330,057 | 12 | % | ||||||||||
Aon plc | 393,645 | 11 | % | 405,281 | 11 | % | 374,940 | 13 | % | |||||||||||||
Other brokers | 2,015,822 | 54 | % | 2,067,447 | 54 | % | 1,633,444 | 58 | % | |||||||||||||
Managing general agencies and underwriters | 832,356 | 23 | % | 944,626 | 25 | % | 476,477 | 17 | % | |||||||||||||
Total | $ | 3,675,931 | 100 | % | $ | 3,797,592 | 100 | % | $ | 2,814,918 | 100 | % | ||||||||||
• | Catastrophe: provides protection for most catastrophic losses that are covered in the underlying insurance policies written by our cedants. The underlying policies principally cover property-related exposures but other exposures including workers compensation and personal accident are also covered. The principal perils covered by policies in this portfolio include hurricane and windstorm, earthquake, flood, tornado, hail and fire. In some instances, terrorism may be a covered peril or the only peril. This business is written on a proportional and excess of loss basis. |
• | Property: provides protection for property damage and related losses resulting from natural and man-made perils that are covered in the underlying personal and commercial lines insurance policies written by our cedants. The predominant |
• | Professional Lines: providesprotection for directors’ and officers’ liability, employment practices liability, medical malpractice, professional indemnity, environmental liability, cyber and miscellaneous errors and omissions insurance risks. The underlying business is predominantly written on a claims-made basis. This business is written on a proportional and excess of loss basis. |
• | Credit and Surety: provides reinsurance of trade credit insurance products and includes proportional and excess of loss structures. The underlying insurance indemnifies sellers of goods and services in the event of a payment default by the buyer of those goods and services. Surety reinsurance provides protection for losses arising from a broad array of surety bonds issued by insurers to satisfy regulatory demands or contract obligations in a variety of jurisdictions around the world. Mortgage reinsurance is also provided to mortgage guaranty insurers and U.S. government sponsored entities for losses related to credit risk transfer into the private sector. |
• | Motor: provides protection to insurers for motor liability and property damage losses arising out of any one occurrence. A loss occurrence can involve one or many claimants where the ceding insurer aggregates the claims from the occurrence. Traditional proportional and non-proportional reinsurance as well as structured solutions are offered. |
• | Liability: provides protection to insurers of admitted casualty business, excess and surplus lines casualty business and specialty casualty programs. The primary focus of the underlying business is general liability, workers' compensation, auto liability, and excess casualty. |
• | Agriculture: provides protection for risks associated with the production of food and fiber on a global basis for primary insurance companies writing multi-peril crop insurance, crop hail, and named peril covers, as well as custom risk transfer mechanisms for agricultural dependent industries with exposures to crop yield and/or price deviations. This business is written on a proportional and aggregate stop loss reinsurance basis. |
• | Engineering: provides protection for all types of construction risks and risks associated with erection, testing and commissioning of machinery and plants during the construction stage. This line of business also includes cover for losses arising from operational failures of machinery, plant and equipment, and electronic equipment as well as business interruption. |
• | Marine and Other: includes marine and aviation reinsurance. |
• | Accident and Health: includes personal accident, specialty health, accidental death, travel, life and disability reinsurance products which are offered on a proportional and catastrophic or per life excess of events loss basis. |
• | Discontinued Lines - Novae: includes those lines of business that Novae exited or placed into run-off in the fourth quarter of 2016 and in the first quarter of 2017. These discontinued reinsurance lines include motor reinsurance, general liability reinsurance, and international facultative property. |
Year ended December 31, | 2017 | 2016 | 2015 | |||||||||||||||||||
Marsh & McLennan Companies Inc. | $ | 760,682 | 31 | % | $ | 677,677 | 30 | % | $ | 580,843 | 29 | % | ||||||||||
Aon plc | 547,994 | 23 | % | 556,577 | 25 | % | 439,069 | 22 | % | |||||||||||||
Willis Tower Watson PLC | 378,185 | 16 | % | 338,188 | 15 | % | 295,244 | 15 | % | |||||||||||||
Capsicum & Gallagher | 233,868 | 10 | % | 222,461 | 10 | % | 250,662 | 12 | % | |||||||||||||
Other brokers | 331,106 | 14 | % | 319,459 | 14 | % | 327,365 | 16 | % | |||||||||||||
Direct | 176,600 | 6 | % | 135,604 | 6 | % | 127,466 | 6 | % | |||||||||||||
Total | $ | 2,428,436 | 100 | % | $ | 2,249,966 | 100 | % | $ | 2,020,649 | 100 | % | ||||||||||
Years ended December 31, | 2019 | 2018 | 2017 | |||||||||||||||||||
Marsh & McLennan Companies Inc. | $ | 838,617 | 26 | % | $ | 779,375 | 25 | % | $ | 783,286 | 29 | % | ||||||||||
Aon plc | 887,602 | 28 | % | 765,779 | 25 | % | 583,199 | 21 | % | |||||||||||||
Willis Tower Watson PLC | 403,402 | 13 | % | 361,983 | 12 | % | 408,188 | 15 | % | |||||||||||||
Other brokers | 795,352 | 24 | % | 864,601 | 28 | % | 690,337 | 25 | % | |||||||||||||
Direct | 135,614 | 4 | % | 178,568 | 6 | % | 176,600 | 6 | % | |||||||||||||
Managing general agencies and underwriters | 162,339 | 5 | % | 162,167 | 5 | % | 99,744 | 4 | % | |||||||||||||
Total | $ | 3,222,927 | 100 | % | $ | 3,112,473 | 100 | % | $ | 2,741,355 | 100 | % | ||||||||||
• | Excess of loss per risk – the reinsurer indemnifies us for loss amounts of all individual policies effected, defined in the treaty terms and conditions. Per risk treaties are an effective means of risk mitigation against large single losses (e.g. a large fire claim). This includes the Northshore Re catastrophe bond program, which provides a combined $715 million of limit across the Group. Refer to Item 7 'Management’s Discussion and Analysis of Financial Condition and Results of Operations' – Underwriting Results – Consolidated – Underwriting Expenses' for further details. |
At January 1, (in millions of U.S. dollars) | 2018 | 2017 | |||||||||||||||||||||||||
Single zone/single event | Perils | 50 Year Return Period | 100 Year Return Period | 250 Year Return Period | 50 Year Return Period | 100 Year Return Period | 250 Year Return Period | ||||||||||||||||||||
Southeast | U.S. Hurricane | $ | 350 | $ | 430 | $ | 848 | $ | 461 | $ | 534 | $ | 811 | ||||||||||||||
Northeast | U.S. Hurricane | 58 | 164 | 297 | 38 | 105 | 223 | ||||||||||||||||||||
Mid-Atlantic | U.S. Hurricane | 121 | 273 | 401 | 100 | 256 | 453 | ||||||||||||||||||||
Gulf of Mexico | U.S. Hurricane | 237 | 302 | 400 | 332 | 405 | 468 | ||||||||||||||||||||
California | Earthquake | 241 | 328 | 527 | 381 | 446 | 561 | ||||||||||||||||||||
Europe | Windstorm | 232 | 327 | 467 | 145 | 205 | 273 | ||||||||||||||||||||
Japan | Earthquake | 168 | 232 | 336 | 121 | 157 | 276 | ||||||||||||||||||||
Japan | Windstorm | 60 | 99 | 140 | 35 | 60 | 108 | ||||||||||||||||||||
At January 1, (in millions of U.S. dollars) | 2020 | 2019 | |||||||||||||||||||||||||
Single zone/single event | Perils | 50 Year Return Period | 100 Year Return Period | 250 Year Return Period | 50 Year Return Period | 100 Year Return Period | 250 Year Return Period | ||||||||||||||||||||
Southeast | U.S. Hurricane | $ | 262 | $ | 310 | $ | 428 | $ | 383 | $ | 441 | $ | 620 | ||||||||||||||
Northeast | U.S. Hurricane | 53 | 145 | 236 | 52 | 156 | 290 | ||||||||||||||||||||
Mid-Atlantic | U.S. Hurricane | 120 | 214 | 349 | 133 | 315 | 449 | ||||||||||||||||||||
Gulf of Mexico | U.S. Hurricane | 202 | 249 | 283 | 258 | 316 | 394 | ||||||||||||||||||||
California | Earthquake | 176 | 249 | 292 | 253 | 369 | 468 | ||||||||||||||||||||
Europe | Windstorm | 195 | 238 | 316 | 231 | 301 | 376 | ||||||||||||||||||||
Japan | Earthquake | 138 | 247 | 414 | 147 | 227 | 359 | ||||||||||||||||||||
Japan | Windstorm | 114 | 195 | 256 | 60 | 109 | 158 | ||||||||||||||||||||
• | Regulatory capital requirements - In each country in which we operate, the local regulator specifies the minimum amount and type of capital that each of the regulated entities must hold in support of their liabilities and business plans. We target to hold, in addition to the minimum capital required to comply with the solvency requirements, an adequate buffer to ensure that each of our operating entities meets its local capital requirements. Refer to Item 8, Note 21 to the Consolidated Financial Statements, 'Statutory Financial Information' for further details. |
• | Rating agency capital requirements - Rating agencies apply their own models to evaluate the relationship between the required risk capital of a company and its available capital resources. The assessment of capital adequacy is usually an integral part of the rating agency process. Meeting rating agency capital requirements and maintaining strong credit ratings are strategic business objectives of the Company. Refer to Item 7 'Management’s Discussion and Analysis of Financial Condition and Results of Operations –Liquidity and Capital Resources' for further details. |
ITEM 1A. | RISK FACTORS |
ITEM 1B. | UNRESOLVED STAFF COMMENTS |
ITEM 2. | PROPERTIES |
ITEM 3. | LEGAL PROCEEDINGS |
ITEM 4. | MINE SAFETY DISCLOSURES |
ITEM 5. | MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |
2017 | 2016 | ||||||||||||||||||||||||
High | Low | Dividends Declared | High | Low | Dividends Declared | ||||||||||||||||||||
1st Quarter | $ | 71.06 | $ | 63.67 | $ | 0.38 | $ | 56.39 | $ | 51.67 | $ | 0.35 | |||||||||||||
2nd Quarter | $ | 68.51 | $ | 62.00 | $ | 0.38 | $ | 56.38 | $ | 51.01 | $ | 0.35 | |||||||||||||
3rd Quarter | $ | 66.44 | $ | 52.15 | $ | 0.38 | $ | 57.33 | $ | 52.67 | $ | 0.35 | |||||||||||||
4th Quarter | $ | 58.03 | $ | 49.42 | $ | 0.39 | $ | 66.23 | $ | 53.66 | $ | 0.38 | |||||||||||||
Period | Total Number of Shares Purchased(a) | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number (or Approximate Dollar Value) of Shares That May Yet Be Purchased Under the Plans or Programs(b) | ||||||
October 1-31, 2017 | 806 | $57.31 | — | $738.8 | million | |||||
November 1-30, 2017 | 1,537 | $54.37 | — | $738.8 | million | |||||
December 1-31, 2017 | 1,332 | $51.06 | — | $738.8 | million | |||||
Total | 3,675 | — | $738.8 | million |
Period | Total number of shares purchased(a) (b) | Average price paid per share | Total number of shares purchased as part of publicly announced plans or programs | Maximum number (or approximate dollar value) of shares that may yet be purchased under the plans or programs(b) | |||||
October 1-31, 2019 | 9 | $65.26 | — | — | |||||
November 1-30, 2019 | 1 | $59.33 | — | — | |||||
December 1-31, 2019 | 1 | $58.97 | — | — | |||||
Total | 11 | — | — |
(a) | In thousands. |
(b) | Shares are repurchased from employees to satisfy withholding tax liabilities |
Period | Total Number of Shares Purchased(a) | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number (or Approximate Dollar Value) of Shares That May Yet Be Purchased Under the Plans or Programs | ||||||
April 1-30, 2017 | 14,042,955 | $25.00 | — | $0.0 | million | |||||
Total | 14,042,955 | — | $0.0 | million |
ITEM 6. | SELECTED FINANCIAL DATA |
At and For the year Ended December 31, | |||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||||||
Selected Statement of Operations Data: | |||||||||||||||||||||
Gross premiums written | $ | 5,556,273 | $ | 4,970,208 | $ | 4,603,730 | $ | 4,711,519 | $ | 4,697,041 | |||||||||||
Net premiums earned | 4,148,760 | 3,705,625 | 3,686,417 | 3,870,999 | 3,707,065 | ||||||||||||||||
Net investment income | 400,805 | 353,335 | 305,336 | 342,766 | 409,312 | ||||||||||||||||
Net realized investment gains (losses) | 28,226 | (60,525 | ) | (138,491 | ) | 132,108 | 75,564 | ||||||||||||||
Net losses and loss expenses | 3,287,772 | 2,204,197 | 2,176,199 | 2,186,722 | 2,134,195 | ||||||||||||||||
Acquisition costs | 823,591 | 746,876 | 718,112 | 737,197 | 664,191 | ||||||||||||||||
General and administrative expenses | 579,428 | 602,717 | 596,821 | 621,876 | 575,390 | ||||||||||||||||
Interest expense and financing costs | 54,811 | 51,360 | 50,963 | 74,695 | 61,979 | ||||||||||||||||
Preferred share dividends | 46,810 | 46,597 | 40,069 | 40,088 | 40,474 | ||||||||||||||||
Net income (loss) available to common shareholders(1) (2) (3) (4) (5) | $ | (415,779 | ) | $ | 465,462 | $ | 601,562 | $ | 770,657 | $ | 683,910 | ||||||||||
Per Common Share Data: | |||||||||||||||||||||
Basic earnings (loss) per common share | $ | (4.94 | ) | $ | 5.13 | $ | 6.10 | $ | 7.38 | $ | 6.02 | ||||||||||
Diluted earnings (loss) per common share | (4.94 | ) | 5.08 | 6.04 | 7.29 | 5.93 | |||||||||||||||
Cash dividends declared per common share | $ | 1.53 | $ | 1.43 | $ | 1.22 | $ | 1.10 | $ | 1.02 | |||||||||||
Basic weighted average common shares outstanding | 84,108 | 90,772 | 98,609 | 104,368 | 113,636 | ||||||||||||||||
Diluted weighted average common shares outstanding | 84,108 | 91,547 | 99,629 | 105,713 | 115,328 | ||||||||||||||||
Operating Ratios:(6) | |||||||||||||||||||||
Net loss and loss expense ratio | 79.2 | % | 59.5 | % | 59.0 | % | 56.5 | % | 57.6 | % | |||||||||||
Acquisition cost ratio | 19.9 | % | 20.2 | % | 19.5 | % | 19.0 | % | 17.9 | % | |||||||||||
General and administrative expense ratio | 14.0 | % | 16.2 | % | 16.2 | % | 16.1 | % | 15.5 | % | |||||||||||
Combined ratio | 113.1 | % | 95.9 | % | 94.7 | % | 91.6 | % | 91.0 | % | |||||||||||
Selected Balance Sheet Data: | |||||||||||||||||||||
Investments | $ | 14,784,210 | $ | 13,459,507 | $ | 13,386,118 | $ | 13,778,911 | $ | 13,780,336 | |||||||||||
Cash and cash equivalents | 1,363,786 | 1,241,507 | 1,174,751 | 1,209,695 | 987,876 | ||||||||||||||||
Reinsurance recoverable on unpaid and paid losses | 3,338,840 | 2,334,922 | 2,096,104 | 1,926,145 | 1,929,988 | ||||||||||||||||
Total assets | 24,760,177 | 20,813,691 | 19,981,891 | 19,955,736 | 19,634,784 | ||||||||||||||||
Reserve for losses and loss expenses | 12,997,553 | 9,697,827 | 9,646,285 | 9,596,797 | 9,582,140 | ||||||||||||||||
Unearned premiums | 3,641,399 | 2,969,498 | 2,760,889 | 2,735,376 | 2,683,849 | ||||||||||||||||
Senior notes and notes payable | 1,376,529 | 992,950 | 991,825 | 990,790 | 995,855 | ||||||||||||||||
Total shareholders’ equity attributable to AXIS Capital | $ | 5,341,264 | $ | 6,272,370 | $ | 5,866,882 | $ | 5,821,121 | $ | 5,817,962 | |||||||||||
Book value per common share(7)(8) | $ | 54.91 | $ | 59.54 | $ | 55.32 | $ | 52.23 | $ | 47.40 | |||||||||||
Diluted book value per common share(7)(8) | $ | 53.88 | $ | 58.27 | $ | 54.08 | $ | 50.63 | $ | 45.80 | |||||||||||
Common shares outstanding(8) | 83,161 | 86,441 | 94,708 | 99,426 | 109,485 | ||||||||||||||||
Common shares outstanding - diluted(8) | 84,745 | 88,317 | 96,883 | 102,577 | 113,325 | ||||||||||||||||
At and for the year ended December 31, | |||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||||||
Selected Statements of Operations Data: | |||||||||||||||||||||
Gross premiums written | $ | 6,898,858 | $ | 6,910,065 | $ | 5,556,273 | $ | 4,970,208 | $ | 4,603,730 | |||||||||||
Net premiums earned | 4,587,178 | 4,791,495 | 4,148,760 | 3,705,625 | 3,686,417 | ||||||||||||||||
Net investment income | 478,572 | 438,507 | 400,805 | 353,335 | 305,336 | ||||||||||||||||
Net investment gains (losses) | 91,233 | (150,218 | ) | 28,226 | (60,525 | ) | (138,491 | ) | |||||||||||||
Net losses and loss expenses | 3,044,798 | 3,190,287 | 3,287,772 | 2,204,197 | 2,176,199 | ||||||||||||||||
Acquisition costs | 1,024,582 | 968,835 | 823,591 | 746,876 | 718,112 | ||||||||||||||||
General and administrative expenses | 634,831 | 627,389 | 579,428 | 602,717 | 596,821 | ||||||||||||||||
Interest expense and financing costs | 68,107 | 67,432 | 54,811 | 51,360 | 50,963 | ||||||||||||||||
Preferred share dividends | 41,112 | 42,625 | 46,810 | 46,597 | 40,069 | ||||||||||||||||
Net income (loss) available (attributable) to common shareholders(1) (2) (3) (4) (5) | $ | 282,361 | $ | 396 | $ | (415,779 | ) | $ | 465,462 | $ | 601,562 | ||||||||||
Per share data: | |||||||||||||||||||||
Earnings (loss) per common share | $ | 3.37 | $ | — | $ | (4.94 | ) | $ | 5.13 | $ | 6.10 | ||||||||||
Earnings (loss) per diluted common share | $ | 3.34 | $ | — | $ | (4.94 | ) | $ | 5.08 | $ | 6.04 | ||||||||||
Cash dividends declared per common share | $ | 1.61 | $ | 1.57 | $ | 1.53 | $ | 1.43 | $ | 1.22 | |||||||||||
Weighted average common shares outstanding | 83,894 | 83,501 | 84,108 | 90,772 | 98,609 | ||||||||||||||||
Weighted average diluted common shares outstanding | 84,473 | 84,007 | 84,108 | 91,547 | 99,629 | ||||||||||||||||
Operating Ratios:(6) | |||||||||||||||||||||
Net losses and loss expenses ratio | 66.4 | % | 66.6 | % | 79.2 | % | 59.5 | % | 59.0 | % | |||||||||||
Acquisition cost ratio | 22.3 | % | 20.2 | % | 19.9 | % | 20.2 | % | 19.5 | % | |||||||||||
General and administrative expense ratio | 13.9 | % | 13.1 | % | 14.0 | % | 16.2 | % | 16.2 | % | |||||||||||
Combined ratio | 102.6 | % | 99.9 | % | 113.1 | % | 95.9 | % | 94.7 | % | |||||||||||
Selected Balance Sheet Data: | |||||||||||||||||||||
Investments | $ | 14,302,375 | $ | 13,155,560 | $ | 14,784,210 | $ | 13,459,507 | $ | 13,386,118 | |||||||||||
Cash and cash equivalents | 1,576,457 | 1,830,020 | 1,363,786 | 1,241,507 | 1,174,751 | ||||||||||||||||
Reinsurance recoverable on unpaid and paid losses and loss expenses | 4,205,551 | 3,781,902 | 3,338,840 | 2,334,922 | 2,096,104 | ||||||||||||||||
Total assets | 25,604,054 | 24,132,566 | 24,760,177 | 20,813,691 | 19,981,891 | ||||||||||||||||
Reserve for losses and loss expenses | 12,752,081 | 12,280,769 | 12,997,553 | 9,697,827 | 9,646,285 | ||||||||||||||||
Unearned premiums | 3,626,246 | 3,635,758 | 3,641,399 | 2,969,498 | 2,760,889 | ||||||||||||||||
Debt | 1,808,157 | 1,341,961 | 1,376,529 | 992,950 | 991,825 | ||||||||||||||||
Total shareholders’ equity | $ | 5,544,008 | $ | 5,030,071 | $ | 5,341,264 | $ | 6,272,370 | $ | 5,866,882 | |||||||||||
Book value per common share(7)(8) | $ | 56.80 | $ | 50.91 | $ | 54.91 | $ | 59.54 | $ | 55.32 | |||||||||||
Book value per diluted common share(7)(8) | $ | 55.79 | $ | 49.93 | $ | 53.88 | $ | 58.27 | $ | 54.08 | |||||||||||
Common shares outstanding(8) | 83,959 | 83,586 | 83,161 | 86,441 | 94,708 | ||||||||||||||||
Diluted common shares outstanding(8) | 85,489 | 85,229 | 84,745 | 88,317 | 96,883 | ||||||||||||||||
(1) | During 2019 and 2018, the Company recognized reorganization expenses of $37 million and $67 million, respectively, related to its transformation program which was launched in 2017. This program encompasses the integration of Novae Group plc ("Novae") which commenced in the fourth quarter of 2017, the realignment of our accident and health business, together with other initiatives designed to increase our efficiency and enhance our profitability while delivering a customer-centric operating model. During 2017, the Company recognized transaction and reorganization expenses of $27 million which included transaction costs incurred in connection with the acquisition of Novae, such as due diligence, legal, accounting, investment banking fees and expenses, as well as integration expenses related to the |
(2) | During 2017, the Company recognized a tax expense of $42 million due to the revaluation of net deferred tax assets pursuant to the U.S. Tax Reform. |
(3) | During 2019, 2018 and 2017, the Company recognized amortization of value of business acquired ("VOBA") of $27 million, $172 million and $50 million, respectively, related to the acquisition of Novae. Refer to Item 8, Note |
(4) | During 2015, the Company accepted a request from PartnerRe Ltd., a Bermuda exempted company ("PartnerRe") to terminate the Agreement and Plan of Amalgamation (the "Amalgamation Agreement") with the Company. PartnerRe paid the Company a termination fee of $280 million. |
(5) | During 2015, the Company early adopted the Accounting Standard Update |
(6) | Operating ratios are calculated by dividing the respective operating expenses by net premiums earned. |
(7) | Book value per common share and |
(8) | Calculations and share amounts at December 31, 2015 include 1,358,380 additional shares delivered to the Company in January 2016 under the Company's Accelerated Share Repurchase ("ASR") agreement entered into on August 17, 2015. |
ITEM 7. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Page | |
Executive Summary | |
Underwriting Results – | |
Results by Segment: Years ended December 31, | |
i) Insurance Segment | |
ii) Reinsurance Segment | |
Other Expenses (Revenues), Net | |
Net Investment Income and Net | |
Cash and Investments | |
Liquidity and Capital Resources | |
Critical Accounting Estimates | |
i) | |
ii) Reinsurance Recoverable on Unpaid Losses and Loss Expenses | |
iii) Gross Premiums Written and Net Premiums Earned | |
iv) Fair Value Measurements of Financial Assets and Liabilities | |
v) Other-Than-Temporary Impairments | |
Recent Accounting Pronouncements | |
Off-Balance Sheet and Special Purpose Entity Arrangements |
• |
• | Gross premiums written of $6.9 billion |
• | Net premiums written of $4.5 billion |
• | Net premiums earned of $4.6 billion |
• | Net favorable prior year reserve development of $79 million |
• | Underwriting |
• | Net investment income of $479 million |
• | Net investment gains of $91 million |
• | Reorganization expenses of $37 million |
• | Foreign exchange gains of $12 million |
• | Total cash and investments of $15.9 billion; fixed maturities, cash and short-term securities comprise 89% of total cash and investments and have an average credit rating of AA- |
• | Total assets of $25.6 billion |
• | Reserve for losses and loss expenses of $12.8 billion and reinsurance recoverable on unpaid and paid losses and loss expenses of $4.2 billion |
• | Debt of $1.8 billion and a debt to total capital ratio(3) of 24.6% |
• | Common shares repurchased were 0.2 million for $10 million |
(1) |
(2) | Consolidated underwriting income (loss) is a non-GAAP financial measure as defined in Item 10(e) of SEC Regulation S-K. The reconciliation to net income (loss) |
(3) | The debt to total capital ratio is calculated by dividing debt by total capital. Total capital represents the sum of total shareholders’ equity and debt. |
Year ended December 31, | 2017 | % Change | 2016 | % Change | 2015 | ||||||||||||
Underwriting revenues: | |||||||||||||||||
Net premiums earned | $ | 4,148,760 | 12% | $ | 3,705,625 | 1% | $ | 3,686,417 | |||||||||
Other insurance related income (losses) | (1,240 | ) | nm | 7,222 | nm | (2,953 | ) | ||||||||||
Underwriting expenses: | |||||||||||||||||
Net losses and loss expenses | (3,287,772 | ) | 49% | (2,204,197 | ) | 1% | (2,176,199 | ) | |||||||||
Acquisition costs | (823,591 | ) | 10% | (746,876 | ) | 4% | (718,112 | ) | |||||||||
Underwriting general and administrative expenses (1) | (449,483 | ) | (7%) | (482,701 | ) | (1%) | (486,911 | ) | |||||||||
Underwriting Income (Loss) | $ | (413,326 | ) | $ | 279,073 | $ | 302,242 | ||||||||||
Corporate expenses (1) | (129,945 | ) | 8% | (120,016 | ) | 9% | (109,910 | ) | |||||||||
Net investment income | 400,805 | 13% | 353,335 | 16% | 305,336 | ||||||||||||
Net realized investment gains (losses) | 28,226 | nm | (60,525 | ) | (56%) | (138,491 | ) | ||||||||||
Other (expenses) revenues, net | (189,548 | ) | nm | 69,935 | 36% | 51,349 | |||||||||||
Termination fees received | — | nm | — | nm | 280,000 | ||||||||||||
Bargain purchase gain | 15,044 | nm | — | nm | — | ||||||||||||
Transaction and reorganization expenses | (26,718 | ) | nm | — | nm | (45,867 | ) | ||||||||||
Amortization of value of business acquired | (50,104 | ) | nm | — | nm | — | |||||||||||
Amortization of intangibles | (2,543 | ) | nm | — | nm | — | |||||||||||
Income (loss) before income taxes and interest in income (loss) of equity method investments | (368,109 | ) | 521,802 | 644,659 | |||||||||||||
Income tax (expense) benefit | 7,542 | nm | (6,340 | ) | nm | (3,028 | ) | ||||||||||
Interest in loss of equity method investments | (8,402 | ) | nm | (2,094 | ) | nm | — | ||||||||||
Net income (loss) | (368,969 | ) | 513,368 | 641,631 | |||||||||||||
Preferred share dividends | (46,810 | ) | —% | (46,597 | ) | 16% | (40,069 | ) | |||||||||
Loss on repurchase of preferred shares | — | nm | $ | (1,309 | ) | nm | $ | — | |||||||||
Net income available to common shareholders | $ | (415,779 | ) | nm | $ | 465,462 | (23%) | $ | 601,562 | ||||||||
Net realized investment gains (losses), net of tax (2) | (26,204 | ) | nm | 62,355 | (54%) | 135,320 | |||||||||||
Foreign exchange gains (losses), net of tax (3) | 126,960 | nm | (119,181 | ) | 20% | (99,291 | ) | ||||||||||
Revaluation of net deferred tax (4) | 41,629 | nm | — | nm | — | ||||||||||||
Termination fee received (4) | — | nm | — | nm | (280,000 | ) | |||||||||||
Bargain purchase gain (4) | (15,044 | ) | nm | — | nm | — | |||||||||||
Transaction and reorganization expenses, net of tax(5) | 23,879 | nm | — | nm | 42,924 | ||||||||||||
Loss on repurchase of preferred shares (4) | — | nm | 1,309 | nm | — | ||||||||||||
Non-GAAP operating income (loss) | $ | (264,559 | ) | nm | $ | 409,945 | 2% | $ | 400,515 | ||||||||
Years ended December 31, | 2019 | % Change | 2018 | % Change | 2017 | ||||||||||||
Underwriting revenues: | |||||||||||||||||
Net premiums earned | $ | 4,587,178 | (4%) | $ | 4,791,495 | 15% | $ | 4,148,760 | |||||||||
Other insurance related income (losses) | 16,444 | 55% | 10,622 | nm | (1,240 | ) | |||||||||||
Underwriting expenses: | |||||||||||||||||
Net losses and loss expenses | (3,044,798 | ) | (5%) | (3,190,287 | ) | (3%) | (3,287,772 | ) | |||||||||
Acquisition costs | (1,024,582 | ) | 6% | (968,835 | ) | 18% | (823,591 | ) | |||||||||
Underwriting-related general and administrative expenses (1) | (505,735 | ) | (3%) | (519,168 | ) | 16% | (449,483 | ) | |||||||||
Underwriting income (loss) | $ | 28,507 | $ | 123,827 | $ | (413,326 | ) | ||||||||||
Net investment income | 478,572 | 9% | 438,507 | 9% | 400,805 | ||||||||||||
Net investment gains (losses) | 91,233 | nm | (150,218 | ) | nm | 28,226 | |||||||||||
Corporate expenses (1) | (129,096 | ) | 19% | (108,221 | ) | (17%) | (129,945 | ) | |||||||||
Other (expenses) revenues, net | (56,066 | ) | 47% | (38,267 | ) | (80%) | (189,548 | ) | |||||||||
Transaction and reorganization expenses | (37,384 | ) | (44%) | (66,940 | ) | nm | (26,718 | ) | |||||||||
Amortization of value of business acquired | (26,722 | ) | (84%) | (172,332 | ) | nm | (50,104 | ) | |||||||||
Amortization of intangible assets | (11,597 | ) | (16%) | (13,814 | ) | nm | (2,543 | ) | |||||||||
Bargain purchase gain | — | —% | — | nm | 15,044 | ||||||||||||
Income (loss) before income taxes and interest in income (loss) of equity method investments | 337,447 | 12,542 | (368,109 | ) | |||||||||||||
Income tax (expense) benefit | (23,692 | ) | nm | 29,486 | nm | 7,542 | |||||||||||
Interest in income (loss) of equity method investments | 9,718 | nm | 993 | nm | (8,402 | ) | |||||||||||
Net income (loss) | 323,473 | 43,021 | (368,969 | ) | |||||||||||||
Preferred share dividends | (41,112 | ) | (4%) | (42,625 | ) | (9%) | (46,810 | ) | |||||||||
Net income (loss) available (attributable) to common shareholders | $ | 282,361 | nm | $ | 396 | nm | $ | (415,779 | ) | ||||||||
Net investment (gains) losses(2) | (91,233 | ) | nm | 150,218 | nm | (28,226 | ) | ||||||||||
Foreign exchange losses (gains)(3) | (12,041 | ) | (59%) | (29,165 | ) | nm | 134,737 | ||||||||||
Transaction and reorganization expenses (4) | 37,384 | (44%) | 66,940 | nm | 26,718 | ||||||||||||
Interest in (income) loss of equity method investments(5) | (9,718 | ) | nm | (993 | ) | nm | 8,402 | ||||||||||
Revaluation of net deferred tax asset(6) | — | —% | — | nm | 41,629 | ||||||||||||
Bargain purchase gain(6) | — | —% | — | nm | (15,044 | ) | |||||||||||
Income tax expense (benefit) | 6,656 | nm | (26,697 | ) | nm | (8,594 | ) | ||||||||||
Operating income (loss)(7) | $ | 213,409 | 33% | $ | 160,699 | nm | $ | (256,157 | ) | ||||||||
(1) | Underwriting-related general and administrative expenses is a non-GAAP financial measure as defined in Item 10(e) of SEC Regulation S-K. The reconciliation to general and administrative expenses, the most comparable GAAP financial measure, also included corporate expenses of |
(2) | Tax cost (benefit) of |
(3) | Tax cost (benefit) of |
(4) | Tax |
(5) | Tax cost (benefit) of |
(6) | Tax impact is $nil. |
(7) | Operating income (loss) is a non-GAAP financial measure as defined in Item 10(e) of SEC Regulation S-K. The reconciliations to net income (loss), the most comparable GAAP financial measure is presented in the table above, and a discussion of the rationale for its presentation is provided in 'Management’s Discussion and Analysis of Financial Condition and Results of Operations – Non-GAAP Financial Measures'. |
Year ended December 31, | 2017 | 2016 | 2015 | ||||||||||
Net income (loss) available to common shareholders | $ | (415,779 | ) | $ | 465,462 | $ | 601,562 | ||||||
Non-GAAP operating income (loss) | $ | (264,559 | ) | $ | 409,945 | $ | 400,515 | ||||||
Weighted average common shares and common share equivalents - diluted(1) | 84,108 | 91,547 | 99,629 | ||||||||||
Earnings (loss) per common share - diluted | $ | (4.94 | ) | $ | 5.08 | $ | 6.04 | ||||||
Non-GAAP operating income (loss) per common share - diluted | $ | (3.15 | ) | $ | 4.48 | $ | 4.02 | ||||||
Average common shareholders’ equity | $ | 4,856,280 | $ | 5,192,668 | $ | 5,216,159 | |||||||
Annualized return on average common equity(2) | (8.6 | %) | 9.0 | % | 11.5 | % | |||||||
Annualized Non-GAAP operating ROACE(3) | (5.4 | %) | 7.9 | % | 7.7 | % | |||||||
Year ended December 31, | 2019 | 2018 | 2017 | ||||||||||
Net income (loss) available (attributable) to common shareholders | $ | 282,361 | $ | 396 | $ | (415,779 | ) | ||||||
Operating income (loss) | $ | 213,409 | $ | 160,699 | $ | (256,157 | ) | ||||||
Weighted average diluted common shares outstanding(1) | 84,473 | 84,007 | 84,108 | ||||||||||
Earnings (loss) per diluted common share | $ | 3.34 | $ | — | $ | (4.94 | ) | ||||||
Operating income (loss) per diluted common share(2) | $ | 2.52 | $ | 1.91 | $ | (3.05 | ) | ||||||
Average common shareholders’ equity | $ | 4,512,040 | $ | 4,410,668 | $ | 4,856,280 | |||||||
Return on average common equity(3) | 6.3 | % | — | % | (8.6 | %) | |||||||
Operating return on average common equity(4) | 4.7 | % | 3.6 | % | (5.3 | %) | |||||||
(1) | Refer to Item 8, Note 13 to the Consolidated Financial Statements 'Earnings Per Common Share' for further |
(2) | Operating income (loss) per diluted common share is a non-GAAP financial measure as defined in Item 10(e) of SEC Regulation S-K. The reconciliation to earnings (loss) per diluted common share, the most comparable GAAP financial measure is presented in the table above, and a discussion of the rationale for its presentation is provided in 'Management’s Discussion and Analysis of Financial Condition and Results of Operations – Non-GAAP Financial Measures'. |
(3) | Return on average common equity ("ROACE") is calculated by dividing net income (loss) available (attributable) to common shareholders for the year by the average common shareholders' equity determined |
Operating ROACE, a non-GAAP financial measure as defined in Item 10(e) of SEC Regulation S-K, is calculated by dividing |
Years ended December 31, | 2019 | % Change | 2018 | % Change | 2017 | ||||||||||||
Net income (loss) available (attributable) to common shareholders | $ | 282,361 | nm | $ | 396 | nm | $ | (415,779 | ) | ||||||||
Net investment (gains) losses | (91,233 | ) | nm | 150,218 | nm | (28,226 | ) | ||||||||||
Foreign exchange losses (gains) | (12,041 | ) | (59%) | (29,165 | ) | nm | 134,737 | ||||||||||
Transaction and reorganization expenses | 37,384 | (44%) | 66,940 | nm | 26,718 | ||||||||||||
Interest in (income) loss of equity method investments | (9,718 | ) | nm | (993 | ) | nm | 8,402 | ||||||||||
Revaluation of net deferred tax asset | — | —% | — | nm | 41,629 | ||||||||||||
Bargain purchase gain | — | —% | — | nm | (15,044 | ) | |||||||||||
Income tax expense (benefit) | $ | 6,656 | nm | (26,697 | ) | nm | (8,594 | ) | |||||||||
Operating income (loss) | $ | 213,409 | 33% | $ | 160,699 | nm | $ | (256,157 | ) | ||||||||
Amortization of VOBA and intangible assets (3) | 37,939 | (79%) | 184,531 | nm | 52,647 | ||||||||||||
Amortization of acquisition costs(4) | (12,207 | ) | (90%) | (125,467 | ) | nm | (32,646 | ) | |||||||||
Income tax (benefit) | $ | (4,888 | ) | (56%) | (11,222 | ) | nm | (3,800 | ) | ||||||||
Ex-PGAAP operating income (loss)(1) | $ | 234,253 | 12% | $ | 208,541 | nm | $ | (239,956 | ) | ||||||||
Earnings (loss) per diluted common share | $ | 3.34 | $ | — | $ | (4.94 | ) | ||||||||||
Net investment (gains) losses | (1.08 | ) | 1.79 | (0.34 | ) | ||||||||||||
Foreign exchange losses (gains) | (0.14 | ) | (0.35 | ) | 1.60 | ||||||||||||
Transaction and reorganization expenses | 0.44 | 0.80 | 0.32 | ||||||||||||||
Interest in (income) loss of equity method investments | (0.12 | ) | (0.01 | ) | 0.10 | ||||||||||||
Revaluation of net deferred tax asset | — | — | 0.49 | ||||||||||||||
Bargain purchase gain | — | — | (0.18 | ) | |||||||||||||
Income tax expense (benefit) | 0.08 | (0.32 | ) | (0.10 | ) | ||||||||||||
Operating income (loss) per diluted common share | 2.52 | 1.91 | (3.05 | ) | |||||||||||||
Amortization of VOBA and intangible assets(3) | 0.45 | 2.20 | 0.63 | ||||||||||||||
Amortization of acquisition cost(4) | (0.14 | ) | (1.49 | ) | (0.39 | ) | |||||||||||
Income tax (benefit) | (0.06 | ) | (0.14 | ) | $ | (0.04 | ) | ||||||||||
Ex-PGAAP operating income (loss) per diluted common share(1) | $ | 2.77 | $ | 2.48 | $ | (2.85 | ) | ||||||||||
Weighted average diluted common shares outstanding | 84,473 | 84,007 | 84,108 | ||||||||||||||
Average common shareholders' equity | $ | 4,512,040 | $ | 4,410,668 | $ | 4,856,280 | |||||||||||
Return on average common equity | 6.3 | % | — | % | (8.6 | %) | |||||||||||
Operating return on average common equity | 4.7 | % | 3.6 | % | (5.3 | %) | |||||||||||
Ex-PGAAP operating return on average common equity(1)(2) | 5.2 | % | 4.7 | % | (4.9 | %) | |||||||||||
(1) | Ex-PGAAP operating income (loss), ex-PGAAP operating income (loss) per diluted common share and ex-PGAAP operating ROACE are non-GAAP financial measures as defined in Item 10(e) of SEC Regulation S-K. The reconciliations to the most comparable GAAP financial measures, net income (loss) available (attributable) to common shareholders, earnings (loss) per diluted common share, and ROACE, respectively, are presented in the table above, and a discussion of the rationale for the presentation of these items is provided in 'Management’s Discussion and Analysis of Financial Condition and Results of Operations – Non-GAAP Financial Measures'. |
(2) | Ex-PGAAP operating ROACE is calculated by dividing ex-PGAAP operating income (loss) for the year by the average common shareholders' equity determined using the common shareholders’ equity balances at the beginning and end of the year. |
(3) | Tax (benefit) of $(7) million, $(35) million and $(10) million for the years ended December 31, 2019, 2018, and 2017, respectively. Tax impact is estimated by applying the statutory rates of applicable jurisdictions. |
(4) | Tax cost of $2 million, $24 million and $6 million for the years ended December 31, 2019, 2018, and 2017, respectively. Tax impact is estimated by applying the statutory rates of applicable jurisdictions. |
Year ended and at December 31, | 2019 | 2018 | 2017 | ||||||||||
Return on average common equity | 6.3 | % | — | % | (8.6 | %) | |||||||
Operating return on average common equity | 4.7 | % | 3.6 | % | (5.3 | %) | |||||||
Ex-PGAAP operating return on average common equity | 5.2 | % | 4.7 | % | (4.9 | %) | |||||||
Book value per diluted common share(1) | $ | 55.79 | $ | 49.93 | $ | 53.88 | |||||||
Cash dividends declared per common share | $ | 1.61 | $ | 1.57 | $ | 1.53 | |||||||
Increase (decrease) in book value per diluted common share adjusted for dividends | $ | 7.47 | $ | (2.38 | ) | $ | (2.86 | ) | |||||
Year ended and at December 31, | 2017 | 2016 | 2015 | ||||||||||
ROACE (1) | (8.6 | %) | 9.0 | % | 11.5 | % | |||||||
Non-GAAP operating ROACE (2) | (5.4 | %) | 7.9 | % | 7.7 | % | |||||||
Diluted book value per common share(3)(4) | $ | 53.88 | $ | 58.27 | $ | 54.08 | |||||||
Cash dividends declared per common share | 1.53 | 1.43 | 1.22 | ||||||||||
Increase (decrease) in diluted book value per common share adjusted for dividends | $ | (2.86 | ) | $ | 5.62 | $ | 4.67 | ||||||
Year ended December 31, | 2017 | % Change | 2016 | % Change | 2015 | |||||||||||||
Revenues: | ||||||||||||||||||
Gross premiums written | $ | 5,556,273 | 12% | $ | 4,970,208 | 8% | $ | 4,603,730 | ||||||||||
Net premiums written | 4,027,143 | 7% | 3,752,974 | 2% | 3,674,666 | |||||||||||||
Net premiums earned | 4,148,760 | 12% | 3,705,625 | 1% | 3,686,417 | |||||||||||||
Other insurance related income (losses) | (1,240 | ) | nm | 7,222 | nm | (2,953 | ) | |||||||||||
Expenses: | ||||||||||||||||||
Current year net losses and loss expenses | (3,487,826 | ) | (2,496,574 | ) | (2,419,247 | ) | ||||||||||||
Prior year reserve development | 200,054 | 292,377 | 243,048 | |||||||||||||||
Acquisition costs | (823,591 | ) | (746,876 | ) | (718,112 | ) | ||||||||||||
Underwriting-related general and administrative expenses(1) | (449,483 | ) | (482,701 | ) | (486,911 | ) | ||||||||||||
Underwriting income(2) | $ | (413,326 | ) | nm | $ | 279,073 | (8%) | $ | 302,242 | |||||||||
General and administrative expenses(1) | $ | 579,428 | $ | 602,717 | $ | 596,821 | ||||||||||||
Income before income taxes and interest in income (loss) of equity method investments(2) | $ | (368,109 | ) | $ | 521,802 | $ | 644,659 | |||||||||||
Years ended December 31, | 2019 | % Change | 2018 | % Change | 2017 | |||||||||||||
Revenues: | ||||||||||||||||||
Gross premiums written | $ | 6,898,858 | —% | $ | 6,910,065 | 24% | $ | 5,556,273 | ||||||||||
Net premiums written | 4,489,615 | (4%) | 4,658,962 | 16% | 4,027,143 | |||||||||||||
Net premiums earned | 4,587,178 | (4%) | 4,791,495 | 15% | 4,148,760 | |||||||||||||
Other insurance related income (losses) | 16,444 | 55% | 10,622 | nm | (1,240 | ) | ||||||||||||
Expenses: | ||||||||||||||||||
Current accident year net losses and loss expenses | (3,123,698 | ) | (3,389,949 | ) | (3,487,826 | ) | ||||||||||||
Prior year reserve development | 78,900 | 199,662 | 200,054 | |||||||||||||||
Acquisition costs | (1,024,582 | ) | (968,835 | ) | (823,591 | ) | ||||||||||||
Underwriting-related general and administrative expenses(1) | (505,735 | ) | (519,168 | ) | (449,483 | ) | ||||||||||||
Underwriting income (loss)(2) | $ | 28,507 | nm | $ | 123,827 | nm | $ | (413,326 | ) | |||||||||
General and administrative expenses(1) | $ | 634,831 | $ | 627,389 | $ | 579,428 | ||||||||||||
Income (loss) before income taxes and interest in income (loss) of equity method investments(2) | $ | 337,447 | $ | 12,542 | $ | (368,109 | ) | |||||||||||
(1) | Underwriting-related general and administrative expenses is a non-GAAP financial measure as defined in Item 10(e) of SEC Regulation S-K. The reconciliation to general and administrative expenses, the most comparable GAAP financial measure, is |
(2) |
Gross Premiums Written | |||||||||||||||||||||
Year ended December 31, | 2017 | % Change | 2016 | % Change | 2015 | ||||||||||||||||
Insurance | $ | 3,127,837 | 15% | $ | 2,720,242 | 5% | $ | 2,583,081 | |||||||||||||
Reinsurance | 2,428,436 | 8% | 2,249,966 | 11% | 2,020,649 | ||||||||||||||||
Total | $ | 5,556,273 | 12% | $ | 4,970,208 | 8% | $ | 4,603,730 | |||||||||||||
% ceded | |||||||||||||||||||||
Insurance | 33 | % | (1 | ) | pts | 34 | % | 2 | pts | 32 | % | ||||||||||
Reinsurance | 20 | % | 6 | pts | 14 | % | 9 | pts | 5 | % | |||||||||||
Total | 28 | % | 4 | pts | 24 | % | 4 | pts | 20 | % | |||||||||||
Net Premiums Written | |||||||||||||||||||||
2017 | % Change | 2016 | % Change | 2015 | |||||||||||||||||
Insurance | $ | 2,087,734 | 16% | $ | 1,807,125 | 3% | $ | 1,759,359 | |||||||||||||
Reinsurance | 1,939,409 | —% | 1,945,849 | 2% | 1,915,307 | ||||||||||||||||
Total | $ | 4,027,143 | 7% | $ | 3,752,974 | 2% | $ | 3,674,666 | |||||||||||||
Gross premiums written | |||||||||||||||||||||
Years ended December 31, | 2019 | % Change | 2018 | % Change | 2017 | ||||||||||||||||
Insurance | $ | 3,675,931 | (3%) | $ | 3,797,592 | 35% | $ | 2,814,918 | |||||||||||||
Reinsurance | 3,222,927 | 4% | 3,112,473 | 14% | 2,741,355 | ||||||||||||||||
Total | $ | 6,898,858 | nm | $ | 6,910,065 | 24% | $ | 5,556,273 | |||||||||||||
% ceded | |||||||||||||||||||||
Insurance | 40 | % | 1 | pts | 39 | % | 2 | pts | 37 | % | |||||||||||
Reinsurance | 29 | % | 4 | pts | 25 | % | 7 | pts | 18 | % | |||||||||||
Total | 35 | % | 2 | pts | 33 | % | 5 | pts | 28 | % | |||||||||||
Net premiums written | |||||||||||||||||||||
2019 | % Change | 2018 | % Change | 2017 | |||||||||||||||||
Insurance | $ | 2,209,155 | (5%) | $ | 2,324,747 | 31% | $ | 1,775,825 | |||||||||||||
Reinsurance | 2,280,460 | (2%) | 2,334,215 | 4% | 2,251,318 | ||||||||||||||||
Total | $ | 4,489,615 | (4%) | $ | 4,658,962 | 16% | $ | 4,027,143 | |||||||||||||
% Change | ||||||||||||||||||||||||||||
Year ended December 31, | 2017 | 2016 | 2015 | 16 to 17 | 15 to 16 | |||||||||||||||||||||||
Insurance | $ | 2,106,363 | 51 | % | $ | 1,777,321 | 48 | % | $ | 1,798,191 | 49 | % | 19 | % | (1 | %) | ||||||||||||
Reinsurance | 2,042,397 | 49 | % | 1,928,304 | 52 | % | 1,888,226 | 51 | % | 6 | % | 2 | % | |||||||||||||||
Total | $ | 4,148,760 | 100 | % | $ | 3,705,625 | 100 | % | $ | 3,686,417 | 100 | % | 12 | % | 1 | % | ||||||||||||
% Change | ||||||||||||||||||||||||||||
Years ended December 31, | 2019 | 2018 | 2017 | 2018 to 2019 | 2017 to 2018 | |||||||||||||||||||||||
Insurance | $ | 2,190,084 | 48 | % | $ | 2,362,606 | 49 | % | $ | 1,816,438 | 44 | % | (7 | %) | 30 | % | ||||||||||||
Reinsurance | 2,397,094 | 52 | % | 2,428,889 | 51 | % | 2,332,322 | 56 | % | (1 | %) | 4 | % | |||||||||||||||
Total | $ | 4,587,178 | 100 | % | $ | 4,791,495 | 100 | % | $ | 4,148,760 | 100 | % | (4 | %) | 15 | % | ||||||||||||
Year ended December 31, | 2017 | % Point Change | 2016 | % Point Change | 2015 | |||||||||||
Current accident year loss ratio | 84.1 | % | 16.7 | 67.4 | % | 1.8 | 65.6 | % | ||||||||
Prior year reserve development | (4.9 | %) | 3.0 | (7.9 | %) | (1.3 | ) | (6.6 | %) | |||||||
Acquisition cost ratio | 19.9 | % | (0.3 | ) | 20.2 | % | 0.7 | 19.5 | % | |||||||
General and administrative expense ratio(1) | 14.0 | % | (2.2 | ) | 16.2 | % | — | 16.2 | % | |||||||
Combined ratio | 113.1 | % | 17.2 | 95.9 | % | 1.2 | 94.7 | % | ||||||||
Years ended December 31, | 2019 | % Point Change | 2018 | % Point Change | 2017 | |||||||||||
Current accident year loss ratio excluding catastrophe and weather-related losses | 60.6 | % | (1.1 | ) | 61.7 | % | (2.0 | ) | 63.7 | % | ||||||
Catastrophe and weather-related losses ratio | 7.5 | % | (1.5 | ) | 9.0 | % | (11.4 | ) | 20.4 | % | ||||||
Current accident year loss ratio | 68.1 | % | (2.6 | ) | 70.7 | % | (13.4 | ) | 84.1 | % | ||||||
Prior year reserve development ratio | (1.7 | %) | 2.4 | (4.1 | %) | 0.8 | (4.9 | %) | ||||||||
Net losses and loss expenses ratio | 66.4 | % | (0.2 | ) | 66.6 | % | (12.6 | ) | 79.2 | % | ||||||
Acquisition cost ratio | 22.3 | % | 2.1 | 20.2 | % | 0.3 | 19.9 | % | ||||||||
General and administrative expense ratio(1) | 13.9 | % | 0.8 | 13.1 | % | (0.9 | ) | 14.0 | % | |||||||
Combined ratio | 102.6 | % | 2.7 | 99.9 | % | (13.2 | ) | 113.1 | % | |||||||
(1) | The general and administration expense ratio |
Year ended December 31, | 2017 | 2016 | 2015 | ||||||||||
Insurance | $ | 48,969 | $ | 55,905 | $ | 23,447 | |||||||
Reinsurance | 151,085 | 236,472 | 219,601 | ||||||||||
Total | $ | 200,054 | $ | 292,377 | $ | 243,048 | |||||||
Years ended December 31, | 2019 | 2018 | 2017 | ||||||||||
Insurance | $ | 53,302 | $ | 92,806 | $ | 60,459 | |||||||
Reinsurance | 25,598 | 106,856 | 139,595 | ||||||||||
Total | $ | 78,900 | $ | 199,662 | $ | 200,054 | |||||||
Insurance | ||||||||||
Reserve class and tail | ||||||||||
Property and other | Marine | Aviation | Credit and | Professional | Liability | |||||
Short | Short/Medium | Medium | Medium | Long | |||||||
of business | |||||||||||
Property | X | ||||||||||
Marine | X | ||||||||||
Terrorism | X | ||||||||||
X | |||||||||||
Credit and political risk | X | ||||||||||
Professional lines | X | ||||||||||
Liability | X | ||||||||||
Accident and health | X | ||||||||||
Discontinued lines - Novae | X | X | X |
Reinsurance segment | |||||||||||
Reserve class and tail | |||||||||||
Property and other | Credit and surety | Professional | Liability | ||||||||
Short | Medium | Medium | Long | Long | |||||||
Reported lines of business | |||||||||||
Catastrophe | X | ||||||||||
Property | X | ||||||||||
Credit and surety | X | ||||||||||
Professional lines | X | ||||||||||
Motor | X | ||||||||||
Liability | X | ||||||||||
Engineering | X | ||||||||||
Agriculture | X | ||||||||||
Marine and other | X | ||||||||||
Accident and health | X | ||||||||||
Discontinued lines - Novae | X | X | X |
Year ended December 31, | 2017 | 2016 | 2015 | ||||||||||
Property and Other | $ | 325 | $ | 34,784 | $ | 52,257 | |||||||
Marine | 28,206 | 12,068 | 24,563 | ||||||||||
Aviation | 1,895 | 3,113 | 2,429 | ||||||||||
Credit and Political Risk | 70 | (242 | ) | (15,435 | ) | ||||||||
Professional Lines | 26,248 | 14,005 | (13,789 | ) | |||||||||
Liability | (7,775 | ) | (7,823 | ) | (26,578 | ) | |||||||
Total | $ | 48,969 | $ | 55,905 | $ | 23,447 | |||||||
Years ended December 31, | 2019 | 2018 | 2017 | ||||||||||
Property and other | $ | 11,042 | $ | 64,781 | $ | 11,815 | |||||||
Marine | 33,260 | 17,913 | 28,206 | ||||||||||
Aviation | 3,741 | (2,938 | ) | 1,895 | |||||||||
Credit and political risk | 18,810 | 3,609 | 70 | ||||||||||
Professional lines | 11,721 | 31,687 | 26,248 | ||||||||||
Liability | (25,272 | ) | (22,246 | ) | (7,775 | ) | |||||||
Total | $ | 53,302 | $ | 92,806 | $ | 60,459 | |||||||
Years ended December 31, | 2019 | 2018 | 2017 | ||||||||||
Property and other | $ | (133,448 | ) | $ | 6,012 | $ | 18,564 | ||||||
Credit and surety | 53,223 | 33,497 | 32,791 | ||||||||||
Professional lines | 3,668 | 21,310 | 44,164 | ||||||||||
Motor | 70,872 | 22,932 | 1,155 | ||||||||||
Liability | 31,283 | 23,105 | 42,921 | ||||||||||
Total | $ | 25,598 | $ | 106,856 | $ | 139,595 | |||||||
Year ended December 31, | 2017 | 2016 | 2015 | ||||||||||
Property and Other | $ | 30,054 | $ | 97,691 | $ | 72,789 | |||||||
Credit and Surety | 32,791 | 10,488 | 26,568 | ||||||||||
Professional Lines | 44,164 | 29,592 | 37,778 | ||||||||||
Motor | 1,155 | 55,106 | 36,677 | ||||||||||
Liability | 42,921 | 43,595 | 45,789 | ||||||||||
Total | $ | 151,085 | $ | 236,472 | $ | 219,601 | |||||||
Year ended and at December 31, | 2019 | 2018 | 2017 | ||||||||||
Return on average common equity | 6.3 | % | — | % | (8.6 | %) | |||||||
Operating return on average common equity | 4.7 | % | 3.6 | % | (5.3 | %) | |||||||
Ex-PGAAP operating return on average common equity | 5.2 | % | 4.7 | % | (4.9 | %) | |||||||
Book value per diluted common share(1) | $ | 55.79 | $ | 49.93 | $ | 53.88 | |||||||
Cash dividends declared per common share | $ | 1.61 | $ | 1.57 | $ | 1.53 | |||||||
Increase (decrease) in book value per diluted common share adjusted for dividends | $ | 7.47 | $ | (2.38 | ) | $ | (2.86 | ) | |||||
Years ended December 31, | 2019 | % Change | 2018 | % Change | 2017 | |||||||||||||
Revenues: | ||||||||||||||||||
Gross premiums written | $ | 6,898,858 | —% | $ | 6,910,065 | 24% | $ | 5,556,273 | ||||||||||
Net premiums written | 4,489,615 | (4%) | 4,658,962 | 16% | 4,027,143 | |||||||||||||
Net premiums earned | 4,587,178 | (4%) | 4,791,495 | 15% | 4,148,760 | |||||||||||||
Other insurance related income (losses) | 16,444 | 55% | 10,622 | nm | (1,240 | ) | ||||||||||||
Expenses: | ||||||||||||||||||
Current accident year net losses and loss expenses | (3,123,698 | ) | (3,389,949 | ) | (3,487,826 | ) | ||||||||||||
Prior year reserve development | 78,900 | 199,662 | 200,054 | |||||||||||||||
Acquisition costs | (1,024,582 | ) | (968,835 | ) | (823,591 | ) | ||||||||||||
Underwriting-related general and administrative expenses(1) | (505,735 | ) | (519,168 | ) | (449,483 | ) | ||||||||||||
Underwriting income (loss)(2) | $ | 28,507 | nm | $ | 123,827 | nm | $ | (413,326 | ) | |||||||||
General and administrative expenses(1) | $ | 634,831 | $ | 627,389 | $ | 579,428 | ||||||||||||
Income (loss) before income taxes and interest in income (loss) of equity method investments(2) | $ | 337,447 | $ | 12,542 | $ | (368,109 | ) | |||||||||||
(1) | Underwriting-related general and administrative expenses is a non-GAAP financial measure as defined in Item 10(e) of SEC Regulation S-K. The reconciliation to general and administrative expenses, the most comparable GAAP financial measure, is provided in 'Management's Discussion and Analysis of Financial Condition and Results of Operations – Executive Summary – Results of Operations'. |
(2) | Consolidated underwriting income (loss) is a non-GAAP financial measure as defined in Item 10(e) of SEC Regulation S-K. The reconciliation to net income (loss), the most comparable GAAP financial measure, is provided in 'Management's Discussion and Analysis of Financial Condition and Results of Operations – Executive Summary – Results of Operation'. |
Year ended December 31, | 2017 | % Change | 2016 | % Change | 2015 | ||||||||||||
Revenues: | |||||||||||||||||
Gross premiums written | $ | 3,127,837 | 15% | $ | 2,720,242 | 5% | $ | 2,583,081 | |||||||||
Net premiums written | 2,087,734 | 16% | 1,807,125 | 3% | 1,759,359 | ||||||||||||
Net premiums earned | 2,106,363 | 19% | 1,777,321 | (1%) | 1,798,191 | ||||||||||||
Other insurance related income | 3,458 | nm | 89 | (91)% | 1,036 | ||||||||||||
Expenses: | |||||||||||||||||
Current year net losses and loss expenses | (1,710,001 | ) | (1,197,838 | ) | (1,178,375 | ) | |||||||||||
Prior year reserve development | 48,969 | 55,905 | 23,447 | ||||||||||||||
Acquisition costs | (332,749 | ) | (251,120 | ) | (261,208 | ) | |||||||||||
General and administrative expenses | (344,012 | ) | (346,857 | ) | (341,658 | ) | |||||||||||
Underwriting income (loss) | $ | (227,972 | ) | nm | $ | 37,500 | (9%) | $ | 41,433 | ||||||||
% Point Change | % Point Change | ||||||||||||||||
Ratios: | |||||||||||||||||
Current year loss ratio | 81.2 | % | 13.8 | 67.4 | % | 1.9 | 65.5 | % | |||||||||
Prior year reserve development | (2.3 | %) | 0.8 | (3.1 | %) | (1.8) | (1.3 | %) | |||||||||
Acquisition cost ratio | 15.8 | % | 1.7 | 14.1 | % | (0.4) | 14.5 | % | |||||||||
General and administrative expense ratio | 16.3 | % | (3.2) | 19.5 | % | 0.4 | 19.1 | % | |||||||||
Combined ratio | 111.0 | % | 13.1 | 97.9 | % | 0.1 | 97.8 | % | |||||||||
Gross premiums written | |||||||||||||||||||||
Years ended December 31, | 2019 | % Change | 2018 | % Change | 2017 | ||||||||||||||||
Insurance | $ | 3,675,931 | (3%) | $ | 3,797,592 | 35% | $ | 2,814,918 | |||||||||||||
Reinsurance | 3,222,927 | 4% | 3,112,473 | 14% | 2,741,355 | ||||||||||||||||
Total | $ | 6,898,858 | nm | $ | 6,910,065 | 24% | $ | 5,556,273 | |||||||||||||
% ceded | |||||||||||||||||||||
Insurance | 40 | % | 1 | pts | 39 | % | 2 | pts | 37 | % | |||||||||||
Reinsurance | 29 | % | 4 | pts | 25 | % | 7 | pts | 18 | % | |||||||||||
Total | 35 | % | 2 | pts | 33 | % | 5 | pts | 28 | % | |||||||||||
Net premiums written | |||||||||||||||||||||
2019 | % Change | 2018 | % Change | 2017 | |||||||||||||||||
Insurance | $ | 2,209,155 | (5%) | $ | 2,324,747 | 31% | $ | 1,775,825 | |||||||||||||
Reinsurance | 2,280,460 | (2%) | 2,334,215 | 4% | 2,251,318 | ||||||||||||||||
Total | $ | 4,489,615 | (4%) | $ | 4,658,962 | 16% | $ | 4,027,143 | |||||||||||||
% Change | ||||||||||||||||||||||||||||
Year ended December 31, | 2017 | 2016 | 2015 | 16 to 17 | 15 to 16 | |||||||||||||||||||||||
Property | $ | 738,373 | 24 | % | $ | 672,891 | 25 | % | $ | 607,358 | 24 | % | 10 | % | 11 | % | ||||||||||||
Marine | 241,393 | 8 | % | 225,609 | 8 | % | 241,956 | 9 | % | 7 | % | (7 | %) | |||||||||||||||
Terrorism | 47,514 | 2 | % | 38,146 | 1 | % | 33,709 | 1 | % | 25 | % | 13 | % | |||||||||||||||
Aviation | 83,906 | 3 | % | 53,173 | 2 | % | 54,642 | 2 | % | 58 | % | (3 | %) | |||||||||||||||
Credit and Political Risk | 91,316 | 3 | % | 49,930 | 2 | % | 59,967 | 2 | % | 83 | % | (17 | %) | |||||||||||||||
Professional Lines | 922,502 | 29 | % | 845,358 | 31 | % | 850,011 | 33 | % | 9 | % | (1 | %) | |||||||||||||||
Liability | 473,935 | 15 | % | 405,030 | 15 | % | 384,145 | 15 | % | 17 | % | 5 | % | |||||||||||||||
Accident and Health | 514,078 | 16 | % | 430,105 | 16 | % | 351,293 | 14 | % | 20 | % | 22 | % | |||||||||||||||
Discontinued Lines - Novae | 14,820 | — | % | — | — | % | — | — | % | nm | — | % | ||||||||||||||||
Total | $ | 3,127,837 | 100 | % | $ | 2,720,242 | 100 | % | $ | 2,583,081 | 100 | % | 15 | % | 5 | % | ||||||||||||
% Change | ||||||||||||||||||||||||||||
Years ended December 31, | 2019 | 2018 | 2017 | 2018 to 2019 | 2017 to 2018 | |||||||||||||||||||||||
Insurance | $ | 2,190,084 | 48 | % | $ | 2,362,606 | 49 | % | $ | 1,816,438 | 44 | % | (7 | %) | 30 | % | ||||||||||||
Reinsurance | 2,397,094 | 52 | % | 2,428,889 | 51 | % | 2,332,322 | 56 | % | (1 | %) | 4 | % | |||||||||||||||
Total | $ | 4,587,178 | 100 | % | $ | 4,791,495 | 100 | % | $ | 4,148,760 | 100 | % | (4 | %) | 15 | % | ||||||||||||
% Change | ||||||||||||||||||||||||||||
Year ended December 31, | 2017 | 2016 | 2015 | 16 to 17 | 15 to 16 | |||||||||||||||||||||||
Property | $ | 543,342 | 25 | % | $ | 426,918 | 23 | % | $ | 432,587 | 24 | % | 27 | % | (1 | %) | ||||||||||||
Marine | 181,533 | 9 | % | 150,046 | 8 | % | 183,696 | 10 | % | 21 | % | (18 | %) | |||||||||||||||
Terrorism | 36,084 | 2 | % | 33,279 | 2 | % | 36,818 | 2 | % | 8 | % | (10 | %) | |||||||||||||||
Aviation | 75,107 | 4 | % | 44,980 | 3 | % | 45,659 | 3 | % | 67 | % | (1 | %) | |||||||||||||||
Credit and Political Risk | 56,432 | 3 | % | 57,964 | 3 | % | 63,583 | 4 | % | (3 | %) | (9 | %) | |||||||||||||||
Professional Lines | 519,759 | 25 | % | 510,806 | 29 | % | 596,430 | 33 | % | 2 | % | (14 | %) | |||||||||||||||
Liability | 188,770 | 9 | % | 169,182 | 10 | % | 161,614 | 9 | % | 12 | % | 5 | % | |||||||||||||||
Accident and Health | 489,046 | 23 | % | 384,146 | 22 | % | 277,804 | 15 | % | 27 | % | 38 | % | |||||||||||||||
Discontinued Lines - Novae | 16,290 | 1 | % | — | — | % | — | — | % | nm | — | % | ||||||||||||||||
Total | $ | 2,106,363 | 100 | % | $ | 1,777,321 | 100 | % | $ | 1,798,191 | 100 | % | 19 | % | (1 | %) | ||||||||||||
Year ended December 31, | 2017 | % Point Change | 2016 | % Point Change | 2015 | ||||||||||
Current accident year | 81.2 | % | 13.8 | 67.4 | % | 1.9 | 65.5 | % | |||||||
Prior year reserve development | (2.3 | %) | 0.8 | (3.1 | %) | (1.8 | ) | (1.3 | %) | ||||||
Loss ratio | 78.9 | % | 14.6 | 64.3 | % | 0.1 | 64.2 | % | |||||||
Years ended December 31, | 2019 | % Point Change | 2018 | % Point Change | 2017 | |||||||||||
Current accident year loss ratio excluding catastrophe and weather-related losses | 60.6 | % | (1.1 | ) | 61.7 | % | (2.0 | ) | 63.7 | % | ||||||
Catastrophe and weather-related losses ratio | 7.5 | % | (1.5 | ) | 9.0 | % | (11.4 | ) | 20.4 | % | ||||||
Current accident year loss ratio | 68.1 | % | (2.6 | ) | 70.7 | % | (13.4 | ) | 84.1 | % | ||||||
Prior year reserve development ratio | (1.7 | %) | 2.4 | (4.1 | %) | 0.8 | (4.9 | %) | ||||||||
Net losses and loss expenses ratio | 66.4 | % | (0.2 | ) | 66.6 | % | (12.6 | ) | 79.2 | % | ||||||
Acquisition cost ratio | 22.3 | % | 2.1 | 20.2 | % | 0.3 | 19.9 | % | ||||||||
General and administrative expense ratio(1) | 13.9 | % | 0.8 | 13.1 | % | (0.9 | ) | 14.0 | % | |||||||
Combined ratio | 102.6 | % | 2.7 | 99.9 | % | (13.2 | ) | 113.1 | % | |||||||
(1) | The general and administration expense ratio included corporate expenses not allocated to underwriting segments of 2.8%, 2.3% and 3.1% for 2019, 2018 and 2017, respectively. Refer to 'Management’s Discussion and Analysis of Financial Condition and Results of Operations – Other Expenses (Revenues), Net' for further details. |
Year ended December 31, | 2017 | % Change | 2016 | % Change | 2015 | ||||||||||||
Revenues: | |||||||||||||||||
Gross premiums written | $ | 2,428,436 | 8% | $ | 2,249,966 | 11% | $ | 2,020,649 | |||||||||
Net premiums written | 1,939,409 | —% | 1,945,849 | 2% | 1,915,307 | ||||||||||||
Net premiums earned | 2,042,397 | 6% | 1,928,304 | 2% | 1,888,226 | ||||||||||||
Other insurance related income (losses) | (4,698 | ) | nm | 7,133 | nm | (3,989 | ) | ||||||||||
Expenses: | |||||||||||||||||
Current year net losses and loss expenses | (1,777,825 | ) | (1,298,736 | ) | (1,240,872 | ) | |||||||||||
Prior year reserve development | 151,085 | 236,472 | 219,601 | ||||||||||||||
Acquisition costs | (490,842 | ) | (495,756 | ) | (456,904 | ) | |||||||||||
General and administrative expenses | (105,471 | ) | (135,844 | ) | (145,253 | ) | |||||||||||
Underwriting income (loss) | $ | (185,354 | ) | nm | $ | 241,573 | (7%) | $ | 260,809 | ||||||||
% Point Change | % Point Change | ||||||||||||||||
Ratios: | |||||||||||||||||
Current year loss ratio | 87.0 | % | 19.6 | 67.4 | % | 1.7 | 65.7 | % | |||||||||
Prior year reserve development | (7.4 | %) | 4.9 | (12.3 | %) | (0.7) | (11.6 | %) | |||||||||
Acquisition cost ratio | 24.0 | % | (1.7) | 25.7 | % | 1.5 | 24.2 | % | |||||||||
General and administrative expense ratio | 5.2 | % | (1.8) | 7.0 | % | (0.7) | 7.7 | % | |||||||||
Combined ratio | 108.8 | % | 21.0 | 87.8 | % | 1.8 | 86.0 | % | |||||||||
% Change | ||||||||||||||||||||||||||||
Year ended December 31, | 2017 | 2016 | 2015 | 16 to 17 | 15 to 16 | |||||||||||||||||||||||
Catastrophe | $ | 436,707 | 19 | % | $ | 324,884 | 14 | % | $ | 291,697 | 13 | % | 34 | % | 11 | % | ||||||||||||
Property | 352,609 | 15 | % | 282,535 | 13 | % | 305,160 | 15 | % | 25 | % | (7 | %) | |||||||||||||||
Professional Lines | 252,272 | 10 | % | 268,403 | 12 | % | 276,479 | 14 | % | (6 | %) | (3 | %) | |||||||||||||||
Credit and Surety | 205,352 | 8 | % | 319,077 | 14 | % | 242,620 | 12 | % | (36 | %) | 32 | % | |||||||||||||||
Motor | 391,923 | 16 | % | 346,087 | 15 | % | 335,084 | 17 | % | 13 | % | 3 | % | |||||||||||||||
Liability | 420,701 | 17 | % | 422,489 | 19 | % | 345,319 | 17 | % | — | % | 22 | % | |||||||||||||||
Agriculture | 236,200 | 10 | % | 158,278 | 7 | % | 132,629 | 7 | % | 49 | % | 19 | % | |||||||||||||||
Engineering | 77,134 | 3 | % | 68,892 | 3 | % | 72,050 | 4 | % | 12 | % | (4 | %) | |||||||||||||||
Marine and Other | 55,925 | 2 | % | 59,321 | 3 | % | 19,611 | 1 | % | (6 | %) | 202 | % | |||||||||||||||
Discontinued Lines - Novae | (387 | ) | — | % | — | — | % | — | — | % | nm | — | % | |||||||||||||||
Total | $ | 2,428,436 | 100 | % | $ | 2,249,966 | 100 | % | $ | 2,020,649 | 100 | % | 8 | % | 11 | % | ||||||||||||
% Change | ||||||||||||||||||||||||||||
Year ended December 31, | 2017 | 2016 | 2015 | 16 to 17 | 15 to 16 | |||||||||||||||||||||||
Catastrophe | $ | 209,470 | 11 | % | $ | 199,825 | 11 | % | $ | 216,020 | 12 | % | 5 | % | (7 | %) | ||||||||||||
Property | 304,376 | 15 | % | 272,403 | 14 | % | 306,083 | 16 | % | 12 | % | (11 | %) | |||||||||||||||
Professional Lines | 226,622 | 11 | % | 289,868 | 15 | % | 310,915 | 16 | % | (22 | %) | (7 | %) | |||||||||||||||
Credit and Surety | 244,186 | 12 | % | 252,210 | 13 | % | 250,208 | 13 | % | (3 | %) | 1 | % | |||||||||||||||
Motor | 371,501 | 18 | % | 318,863 | 17 | % | 299,883 | 16 | % | 17 | % | 6 | % | |||||||||||||||
Liability | 351,940 | 17 | % | 332,479 | 17 | % | 297,000 | 16 | % | 6 | % | 12 | % | |||||||||||||||
Agriculture | 195,391 | 10 | % | 142,501 | 7 | % | 129,346 | 7 | % | 37 | % | 10 | % | |||||||||||||||
Engineering | 66,291 | 3 | % | 62,833 | 3 | % | 61,043 | 3 | % | 6 | % | 3 | % | |||||||||||||||
Marine and Other | 64,449 | 3 | % | 57,322 | 3 | % | 17,728 | 1 | % | 12 | % | 223 | % | |||||||||||||||
Discontinued Lines - Novae | 8,171 | — | % | — | — | % | — | — | % | nm | — | % | ||||||||||||||||
Total | $ | 2,042,397 | 100 | % | $ | 1,928,304 | 100 | % | $ | 1,888,226 | 100 | % | 6 | % | 2 | % | ||||||||||||
Year ended December 31, | 2017 | % Point Change | 2016 | % Point Change | 2015 | |||||||||||
Current accident year | 87.0 | % | 19.6 | 67.4 | % | 1.7 | 65.7 | % | ||||||||
Prior year reserve development | (7.4 | %) | 4.9 | (12.3 | %) | (0.7 | ) | (11.6 | %) | |||||||
Loss ratio | 79.6 | % | 24.5 | 55.1 | % | 1.0 | 54.1 | % | ||||||||
Years ended December 31, | 2019 | 2018 | 2017 | ||||||||||
Insurance | $ | 53,302 | $ | 92,806 | $ | 60,459 | |||||||
Reinsurance | 25,598 | 106,856 | 139,595 | ||||||||||
Total | $ | 78,900 | $ | 199,662 | $ | 200,054 | |||||||
Insurance segment | ||||||
Reserve class and tail | ||||||
Property and other | Marine | Aviation | Credit and political risk | Professional lines | Liability | |
Short | Short | Short/Medium | Medium | Medium | Long | |
Reported lines of business | ||||||
Property | X | |||||
Marine | X | |||||
Terrorism | X | |||||
Aviation | X | |||||
Credit and political risk | X | |||||
Professional lines | X | |||||
Liability | X | |||||
Accident and health | X | |||||
Discontinued lines - Novae | X | X | X |
Reinsurance segment | |||||
Reserve class and tail | |||||
Property and other | Credit and surety | Professional lines | Motor | Liability | |
Short | Medium | Medium | Long | Long | |
Reported lines of business | |||||
Catastrophe | X | ||||
Property | X | ||||
Credit and surety | X | ||||
Professional lines | X | ||||
Motor | X | ||||
Liability | X | ||||
Engineering | X | ||||
Agriculture | X | ||||
Marine and other | X | ||||
Accident and health | X | ||||
Discontinued lines - Novae | X | X | X |
Years ended December 31, | 2019 | 2018 | 2017 | ||||||||||
Property and other | $ | 11,042 | $ | 64,781 | $ | 11,815 | |||||||
Marine | 33,260 | 17,913 | 28,206 | ||||||||||
Aviation | 3,741 | (2,938 | ) | 1,895 | |||||||||
Credit and political risk | 18,810 | 3,609 | 70 | ||||||||||
Professional lines | 11,721 | 31,687 | 26,248 | ||||||||||
Liability | (25,272 | ) | (22,246 | ) | (7,775 | ) | |||||||
Total | $ | 53,302 | $ | 92,806 | $ | 60,459 | |||||||
Years ended December 31, | 2019 | 2018 | 2017 | ||||||||||
Property and other | $ | (133,448 | ) | $ | 6,012 | $ | 18,564 | ||||||
Credit and surety | 53,223 | 33,497 | 32,791 | ||||||||||
Professional lines | 3,668 | 21,310 | 44,164 | ||||||||||
Motor | 70,872 | 22,932 | 1,155 | ||||||||||
Liability | 31,283 | 23,105 | 42,921 | ||||||||||
Total | $ | 25,598 | $ | 106,856 | $ | 139,595 | |||||||
Year ended December 31, | 2017 | % Change | 2016 | % Change | 2015 | ||||||||||||
Corporate expenses | $ | 129,945 | 8% | $ | 120,016 | 9% | $ | 109,910 | |||||||||
Foreign exchange losses (gains) | 134,737 | nm | (121,295 | ) | 19% | (102,312 | ) | ||||||||||
Interest expense and financing costs | 54,811 | 7% | 51,360 | 1% | 50,963 | ||||||||||||
Income tax (benefit) expense | (7,542 | ) | nm | 6,340 | 109% | 3,028 | |||||||||||
Total | $ | 311,951 | nm | $ | 56,421 | (8%) | $ | 61,589 | |||||||||
Year ended and at December 31, | 2019 | 2018 | 2017 | ||||||||||
Return on average common equity | 6.3 | % | — | % | (8.6 | %) | |||||||
Operating return on average common equity | 4.7 | % | 3.6 | % | (5.3 | %) | |||||||
Ex-PGAAP operating return on average common equity | 5.2 | % | 4.7 | % | (4.9 | %) | |||||||
Book value per diluted common share(1) | $ | 55.79 | $ | 49.93 | $ | 53.88 | |||||||
Cash dividends declared per common share | $ | 1.61 | $ | 1.57 | $ | 1.53 | |||||||
Increase (decrease) in book value per diluted common share adjusted for dividends | $ | 7.47 | $ | (2.38 | ) | $ | (2.86 | ) | |||||
Years ended December 31, | 2019 | % Change | 2018 | % Change | 2017 | |||||||||||||
Revenues: | ||||||||||||||||||
Gross premiums written | $ | 6,898,858 | —% | $ | 6,910,065 | 24% | $ | 5,556,273 | ||||||||||
Net premiums written | 4,489,615 | (4%) | 4,658,962 | 16% | 4,027,143 | |||||||||||||
Net premiums earned | 4,587,178 | (4%) | 4,791,495 | 15% | 4,148,760 | |||||||||||||
Other insurance related income (losses) | 16,444 | 55% | 10,622 | nm | (1,240 | ) | ||||||||||||
Expenses: | ||||||||||||||||||
Current accident year net losses and loss expenses | (3,123,698 | ) | (3,389,949 | ) | (3,487,826 | ) | ||||||||||||
Prior year reserve development | 78,900 | 199,662 | 200,054 | |||||||||||||||
Acquisition costs | (1,024,582 | ) | (968,835 | ) | (823,591 | ) | ||||||||||||
Underwriting-related general and administrative expenses(1) | (505,735 | ) | (519,168 | ) | (449,483 | ) | ||||||||||||
Underwriting income (loss)(2) | $ | 28,507 | nm | $ | 123,827 | nm | $ | (413,326 | ) | |||||||||
General and administrative expenses(1) | $ | 634,831 | $ | 627,389 | $ | 579,428 | ||||||||||||
Income (loss) before income taxes and interest in income (loss) of equity method investments(2) | $ | 337,447 | $ | 12,542 | $ | (368,109 | ) | |||||||||||
(1) | Underwriting-related general and administrative expenses is a non-GAAP financial measure as defined in Item 10(e) of SEC Regulation S-K. The reconciliation to general and administrative expenses, the most comparable GAAP financial measure, is provided in 'Management's Discussion and Analysis of Financial Condition and Results of Operations – Executive Summary – Results of Operations'. |
(2) | Consolidated underwriting income (loss) is a non-GAAP financial measure as defined in Item 10(e) of SEC Regulation S-K. The reconciliation to net income (loss), the most comparable GAAP financial measure, is provided in 'Management's Discussion and Analysis of Financial Condition and Results of Operations – Executive Summary – Results of Operation'. |
Gross premiums written | |||||||||||||||||||||
Years ended December 31, | 2019 | % Change | 2018 | % Change | 2017 | ||||||||||||||||
Insurance | $ | 3,675,931 | (3%) | $ | 3,797,592 | 35% | $ | 2,814,918 | |||||||||||||
Reinsurance | 3,222,927 | 4% | 3,112,473 | 14% | 2,741,355 | ||||||||||||||||
Total | $ | 6,898,858 | nm | $ | 6,910,065 | 24% | $ | 5,556,273 | |||||||||||||
% ceded | |||||||||||||||||||||
Insurance | 40 | % | 1 | pts | 39 | % | 2 | pts | 37 | % | |||||||||||
Reinsurance | 29 | % | 4 | pts | 25 | % | 7 | pts | 18 | % | |||||||||||
Total | 35 | % | 2 | pts | 33 | % | 5 | pts | 28 | % | |||||||||||
Net premiums written | |||||||||||||||||||||
2019 | % Change | 2018 | % Change | 2017 | |||||||||||||||||
Insurance | $ | 2,209,155 | (5%) | $ | 2,324,747 | 31% | $ | 1,775,825 | |||||||||||||
Reinsurance | 2,280,460 | (2%) | 2,334,215 | 4% | 2,251,318 | ||||||||||||||||
Total | $ | 4,489,615 | (4%) | $ | 4,658,962 | 16% | $ | 4,027,143 | |||||||||||||
% Change | ||||||||||||||||||||||||||||
Years ended December 31, | 2019 | 2018 | 2017 | 2018 to 2019 | 2017 to 2018 | |||||||||||||||||||||||
Insurance | $ | 2,190,084 | 48 | % | $ | 2,362,606 | 49 | % | $ | 1,816,438 | 44 | % | (7 | %) | 30 | % | ||||||||||||
Reinsurance | 2,397,094 | 52 | % | 2,428,889 | 51 | % | 2,332,322 | 56 | % | (1 | %) | 4 | % | |||||||||||||||
Total | $ | 4,587,178 | 100 | % | $ | 4,791,495 | 100 | % | $ | 4,148,760 | 100 | % | (4 | %) | 15 | % | ||||||||||||
Years ended December 31, | 2019 | % Point Change | 2018 | % Point Change | 2017 | |||||||||||
Current accident year loss ratio excluding catastrophe and weather-related losses | 60.6 | % | (1.1 | ) | 61.7 | % | (2.0 | ) | 63.7 | % | ||||||
Catastrophe and weather-related losses ratio | 7.5 | % | (1.5 | ) | 9.0 | % | (11.4 | ) | 20.4 | % | ||||||
Current accident year loss ratio | 68.1 | % | (2.6 | ) | 70.7 | % | (13.4 | ) | 84.1 | % | ||||||
Prior year reserve development ratio | (1.7 | %) | 2.4 | (4.1 | %) | 0.8 | (4.9 | %) | ||||||||
Net losses and loss expenses ratio | 66.4 | % | (0.2 | ) | 66.6 | % | (12.6 | ) | 79.2 | % | ||||||
Acquisition cost ratio | 22.3 | % | 2.1 | 20.2 | % | 0.3 | 19.9 | % | ||||||||
General and administrative expense ratio(1) | 13.9 | % | 0.8 | 13.1 | % | (0.9 | ) | 14.0 | % | |||||||
Combined ratio | 102.6 | % | 2.7 | 99.9 | % | (13.2 | ) | 113.1 | % | |||||||
(1) | The general and administration expense ratio included corporate expenses not allocated to underwriting segments of 2.8%, 2.3% and 3.1% for 2019, 2018 and 2017, respectively. Refer to 'Management’s Discussion and Analysis of Financial Condition and Results of Operations – Other Expenses (Revenues), Net' for further details. |
Years ended December 31, | 2019 | 2018 | 2017 | ||||||||||
Insurance | $ | 53,302 | $ | 92,806 | $ | 60,459 | |||||||
Reinsurance | 25,598 | 106,856 | 139,595 | ||||||||||
Total | $ | 78,900 | $ | 199,662 | $ | 200,054 | |||||||
Insurance segment | ||||||
Reserve class and tail | ||||||
Property and other | Marine | Aviation | Credit and political risk | Professional lines | Liability | |
Short | Short | Short/Medium | Medium | Medium | Long | |
Reported lines of business | ||||||
Property | X | |||||
Marine | X | |||||
Terrorism | X | |||||
Aviation | X | |||||
Credit and political risk | X | |||||
Professional lines | X | |||||
Liability | X | |||||
Accident and health | X | |||||
Discontinued lines - Novae | X | X | X |
Reinsurance segment | |||||
Reserve class and tail | |||||
Property and other | Credit and surety | Professional lines | Motor | Liability | |
Short | Medium | Medium | Long | Long | |
Reported lines of business | |||||
Catastrophe | X | ||||
Property | X | ||||
Credit and surety | X | ||||
Professional lines | X | ||||
Motor | X | ||||
Liability | X | ||||
Engineering | X | ||||
Agriculture | X | ||||
Marine and other | X | ||||
Accident and health | X | ||||
Discontinued lines - Novae | X | X | X |
Years ended December 31, | 2019 | 2018 | 2017 | ||||||||||
Property and other | $ | 11,042 | $ | 64,781 | $ | 11,815 | |||||||
Marine | 33,260 | 17,913 | 28,206 | ||||||||||
Aviation | 3,741 | (2,938 | ) | 1,895 | |||||||||
Credit and political risk | 18,810 | 3,609 | 70 | ||||||||||
Professional lines | 11,721 | 31,687 | 26,248 | ||||||||||
Liability | (25,272 | ) | (22,246 | ) | (7,775 | ) | |||||||
Total | $ | 53,302 | $ | 92,806 | $ | 60,459 | |||||||
Years ended December 31, | 2019 | 2018 | 2017 | ||||||||||
Property and other | $ | (133,448 | ) | $ | 6,012 | $ | 18,564 | ||||||
Credit and surety | 53,223 | 33,497 | 32,791 | ||||||||||
Professional lines | 3,668 | 21,310 | 44,164 | ||||||||||
Motor | 70,872 | 22,932 | 1,155 | ||||||||||
Liability | 31,283 | 23,105 | 42,921 | ||||||||||
Total | $ | 25,598 | $ | 106,856 | $ | 139,595 | |||||||
Year ended December 31, | 2019 | % Change | 2018 | % Change | 2017 | ||||||||||||
Revenues: | |||||||||||||||||
Gross premiums written | $ | 3,675,931 | (3%) | $ | 3,797,592 | 35% | $ | 2,814,918 | |||||||||
Net premiums written | 2,209,155 | (5%) | 2,324,747 | 31% | 1,775,825 | ||||||||||||
Net premiums earned | 2,190,084 | (7%) | 2,362,606 | 30% | 1,816,438 | ||||||||||||
Other insurance related income | 2,858 | (17)% | 3,460 | 18% | 2,944 | ||||||||||||
Expenses: | |||||||||||||||||
Current accident year net losses and loss expenses | (1,331,981 | ) | (1,587,129 | ) | (1,525,886 | ) | |||||||||||
Prior year reserve development | 53,302 | 92,806 | 60,459 | ||||||||||||||
Acquisition costs | (468,281 | ) | (399,193 | ) | (270,229 | ) | |||||||||||
General and administrative expenses | (401,963 | ) | (395,252 | ) | (325,368 | ) | |||||||||||
Underwriting income (loss) | $ | 44,019 | (43%) | $ | 77,298 | nm | $ | (241,642 | ) | ||||||||
% Point Change | % Point Change | ||||||||||||||||
Ratios: | |||||||||||||||||
Current accident year loss ratio excluding catastrophe and weather-related losses | 57.0 | % | (1.5) | 58.5 | % | (2.8) | 61.3 | % | |||||||||
Catastrophe and weather-related losses ratio | 3.8 | % | (4.9) | 8.7 | % | (14.0) | 22.7 | % | |||||||||
Current accident year loss ratio | 60.8 | % | (6.4) | 67.2 | % | (16.8) | 84.0 | % | |||||||||
Prior year reserve development ratio | (2.4 | %) | 1.6 | (4.0 | %) | (0.7) | (3.3 | %) | |||||||||
Net losses and loss expenses ratio | 58.4 | % | (4.8) | 63.2 | % | (17.5) | 80.7 | % | |||||||||
Acquisition cost ratio | 21.4 | % | 4.5 | 16.9 | % | 2.0 | 14.9 | % | |||||||||
General and administrative expense ratio | 18.3 | % | 1.5 | 16.8 | % | (1.1) | 17.9 | % | |||||||||
Combined ratio | 98.1 | % | 1.2 | 96.9 | % | (16.6) | 113.5 | % | |||||||||
% Change | ||||||||||||||||||||||||||||
Year ended December 31, | 2019 | 2018 | 2017 | 2018 to 2019 | 2017 to 2018 | |||||||||||||||||||||||
Property | $ | 943,760 | 26 | % | $ | 1,192,807 | 31 | % | $ | 738,373 | 25 | % | (21 | %) | 62 | % | ||||||||||||
Marine | 411,309 | 11 | % | 367,047 | 10 | % | 241,393 | 9 | % | 12 | % | 52 | % | |||||||||||||||
Terrorism | 60,120 | 2 | % | 61,663 | 2 | % | 47,514 | 2 | % | (3 | %) | 30 | % | |||||||||||||||
Aviation | 74,670 | 2 | % | 89,673 | 2 | % | 83,906 | 3 | % | (17 | %) | 7 | % | |||||||||||||||
Credit and political risk | 154,999 | 4 | % | 190,433 | 5 | % | 91,316 | 3 | % | (19 | %) | nm | ||||||||||||||||
Professional lines | 1,177,274 | 32 | % | 1,115,213 | 29 | % | 922,502 | 33 | % | 6 | % | 21 | % | |||||||||||||||
Liability | 699,876 | 19 | % | 553,461 | 15 | % | 473,935 | 17 | % | 26 | % | 17 | % | |||||||||||||||
Accident and health | 144,103 | 4 | % | 210,502 | 6 | % | 201,159 | 7 | % | (32 | )% | 5 | % | |||||||||||||||
Discontinued lines - Novae | 9,820 | — | % | 16,793 | — | % | 14,820 | 1 | % | (42 | )% | nm | ||||||||||||||||
Total | $ | 3,675,931 | 100 | % | $ | 3,797,592 | 100 | % | $ | 2,814,918 | 100 | % | (3 | %) | 35 | % | ||||||||||||
% Change | ||||||||||||||||||||||||||||
Year ended December 31, | 2019 | 2018 | 2017 | 2018 to 2019 | 2017 to 2018 | |||||||||||||||||||||||
Property | $ | 633,550 | 29 | % | $ | 796,945 | 34 | % | $ | 543,342 | 30 | % | (21 | %) | 47 | % | ||||||||||||
Marine | 281,764 | 13 | % | 300,944 | 13 | % | 181,533 | 10 | % | (6 | %) | 66 | % | |||||||||||||||
Terrorism | 47,345 | 2 | % | 49,150 | 2 | % | 36,084 | 2 | % | (4 | %) | 36 | % | |||||||||||||||
Aviation | 55,028 | 3 | % | 74,203 | 3 | % | 75,107 | 4 | % | (26 | %) | (1 | %) | |||||||||||||||
Credit and political risk | 91,698 | 4 | % | 102,825 | 4 | % | 56,432 | 3 | % | (11 | %) | 82 | % | |||||||||||||||
Professional lines | 661,250 | 30 | % | 570,241 | 24 | % | 519,759 | 29 | % | 16 | % | 10 | % | |||||||||||||||
Liability | 264,667 | 12 | % | 229,373 | 10 | % | 188,770 | 10 | % | 15 | % | 22 | % | |||||||||||||||
Accident and health | 144,499 | 7 | % | 207,777 | 9 | % | 199,121 | 11 | % | (30 | %) | 4 | % | |||||||||||||||
Discontinued lines - Novae | 10,283 | — | % | 31,148 | 1 | % | 16,290 | 1 | % | (67 | %) | nm | ||||||||||||||||
Total | $ | 2,190,084 | 100 | % | $ | 2,362,606 | 100 | % | $ | 1,816,438 | 100 | % | (7 | %) | 30 | % | ||||||||||||
Year ended December 31, | 2019 | % Point Change | 2018 | % Point Change | 2017 | |||||||||||
Current accident year loss ratio | 60.8 | % | (6.4 | ) | 67.2 | % | (16.8 | ) | 84.0 | % | ||||||
Prior year reserve development ratio | (2.4 | %) | 1.6 | (4.0 | %) | (0.7 | ) | (3.3 | %) | |||||||
Loss ratio | 58.4 | % | (4.8 | ) | 63.2 | % | (17.5 | ) | 80.7 | % | ||||||
Year ended December 31, | 2019 | % Change | 2018 | % Change | 2017 | ||||||||||||
Revenues: | |||||||||||||||||
Gross premiums written | $ | 3,222,927 | 4% | $ | 3,112,473 | 14% | $ | 2,741,355 | |||||||||
Net premiums written | 2,280,460 | (2%) | 2,334,215 | 4% | 2,251,318 | ||||||||||||
Net premiums earned | 2,397,094 | (1%) | 2,428,889 | 4% | 2,332,322 | ||||||||||||
Other insurance related income (losses) | 13,586 | nm | 7,162 | nm | (4,184 | ) | |||||||||||
Expenses: | |||||||||||||||||
Current accident year net losses and loss expenses | (1,791,717 | ) | (1,802,820 | ) | (1,961,940 | ) | |||||||||||
Prior year reserve development | 25,598 | 106,856 | 139,595 | ||||||||||||||
Acquisition costs | (556,301 | ) | (569,642 | ) | (553,362 | ) | |||||||||||
General and administrative expenses | (103,772 | ) | (123,916 | ) | (124,115 | ) | |||||||||||
Underwriting income (loss) | $ | (15,512 | ) | nm | $ | 46,529 | nm | $ | (171,684 | ) | |||||||
% Point Change | % Point Change | ||||||||||||||||
Ratios: | |||||||||||||||||
Current accident year loss ratio excluding catastrophe and weather-related losses | 64.0 | % | (0.8) | 64.8 | % | (0.8) | 65.6 | % | |||||||||
Catastrophe and weather-related losses ratio | 10.7 | % | 1.3 | 9.4 | % | (9.1) | 18.5 | % | |||||||||
Current accident year loss ratio | 74.7 | % | 0.5 | 74.2 | % | (9.9) | 84.1 | % | |||||||||
Prior year reserve development ratio | (1.0 | %) | 3.4 | (4.4 | %) | 1.6 | (6.0 | %) | |||||||||
Net losses and loss expenses ratio | 73.7 | % | 3.9 | 69.8 | % | (8.3) | 78.1 | % | |||||||||
Acquisition cost ratio | 23.2 | % | (0.3) | 23.5 | % | (0.2) | 23.7 | % | |||||||||
General and administrative expense ratio | 4.3 | % | (0.8) | 5.1 | % | (0.2) | 5.3 | % | |||||||||
Combined ratio | 101.2 | % | 2.8 | 98.4 | % | (8.7) | 107.1 | % | |||||||||
% Change | ||||||||||||||||||||||||||||
Year ended December 31, | 2019 | 2018 | 2017 | 2018 to 2019 | 2017 to 2018 | |||||||||||||||||||||||
Catastrophe | $ | 718,514 | 24 | % | $ | 536,243 | 17 | % | $ | 436,707 | 17 | % | 34 | % | 23 | % | ||||||||||||
Property | 304,166 | 9 | % | 342,789 | 11 | % | 352,609 | 13 | % | (11 | %) | (3 | %) | |||||||||||||||
Credit and surety | 269,733 | 8 | % | 329,126 | 11 | % | 205,352 | 7 | % | (18 | %) | 60 | % | |||||||||||||||
Professional lines | 261,072 | 8 | % | 268,181 | 9 | % | 252,272 | 9 | % | (3 | %) | 6 | % | |||||||||||||||
Motor | 334,887 | 10 | % | 499,727 | 16 | % | 391,923 | 14 | % | (33 | %) | 28 | % | |||||||||||||||
Liability | 546,479 | 17 | % | 438,767 | 14 | % | 420,701 | 15 | % | 25 | % | 4 | % | |||||||||||||||
Engineering | 57,028 | 2 | % | 60,358 | 2 | % | 77,134 | 3 | % | (6 | %) | (22 | %) | |||||||||||||||
Agriculture | 224,961 | 7 | % | 226,246 | 7 | % | 236,200 | 9 | % | (1 | %) | (4 | %) | |||||||||||||||
Marine and other | 74,781 | 2 | % | 44,741 | 1 | % | 55,925 | 2 | % | 67 | % | (20 | %) | |||||||||||||||
Accident and health | 432,670 | 13 | % | 365,660 | 12 | % | 312,919 | 11 | % | 18 | % | 17 | % | |||||||||||||||
Discontinued lines - Novae | (1,364 | ) | — | % | 635 | — | % | (387 | ) | — | % | nm | nm | |||||||||||||||
Total | $ | 3,222,927 | 100 | % | $ | 3,112,473 | 100 | % | $ | 2,741,355 | 100 | % | 4 | % | 14 | % | ||||||||||||
% Change | ||||||||||||||||||||||||||||
Year ended December 31, | 2019 | 2018 | 2017 | 2018 to 2019 | 2017 to 2018 | |||||||||||||||||||||||
Catastrophe | $ | 267,591 | 10 | % | $ | 250,016 | 12 | % | $ | 209,470 | 10 | % | 7 | % | 19 | % | ||||||||||||
Property | 311,625 | 13 | % | 317,038 | 13 | % | 304,376 | 13 | % | (2 | %) | 4 | % | |||||||||||||||
Credit and surety | 208,717 | 9 | % | 250,276 | 10 | % | 244,186 | 10 | % | (17 | %) | 2 | % | |||||||||||||||
Professional lines | 206,328 | 9 | % | 220,687 | 9 | % | 226,622 | 10 | % | (7 | %) | (3 | %) | |||||||||||||||
Motor | 398,565 | 17 | % | 438,693 | 18 | % | 371,501 | 16 | % | (9 | %) | 18 | % | |||||||||||||||
Liability | 373,664 | 16 | % | 363,292 | 15 | % | 351,940 | 15 | % | 3 | % | 3 | % | |||||||||||||||
Engineering | 63,899 | 3 | % | 67,932 | 3 | % | 66,291 | 3 | % | (6 | %) | 2 | % | |||||||||||||||
Agriculture | 188,925 | 8 | % | 176,435 | 7 | % | 195,391 | 8 | % | 7 | % | (10 | %) | |||||||||||||||
Marine and other | 59,209 | 2 | % | 35,570 | 1 | % | 64,449 | 3 | % | 66 | % | (45 | %) | |||||||||||||||
Accident and health | 319,619 | 13 | % | 299,813 | 12 | % | 289,925 | 12 | % | 7 | % | 3 | % | |||||||||||||||
Discontinued lines - Novae | (1,048 | ) | — | % | 9,137 | — | % | 8,171 | — | % | nm | 12 | % | |||||||||||||||
Total | $ | 2,397,094 | 100 | % | $ | 2,428,889 | 100 | % | $ | 2,332,322 | 100 | % | (1 | %) | 4 | % | ||||||||||||
Year ended December 31, | 2019 | % Point Change | 2018 | % Point Change | 2017 | |||||||||||
Current accident year loss ratio | 74.7 | % | 0.5 | 74.2 | % | (9.9 | ) | 84.1 | % | |||||||
Prior year reserve development ratio | (1.0 | %) | 3.4 | (4.4 | %) | 1.6 | (6.0 | %) | ||||||||
Loss ratio | 73.7 | % | 3.9 | 69.8 | % | (8.3 | ) | 78.1 | % | |||||||
Year ended December 31, | 2019 | % Change | 2018 | % Change | 2017 | ||||||||||||
Corporate expenses | $ | 129,096 | 19% | $ | 108,221 | (17%) | $ | 129,945 | |||||||||
Foreign exchange losses (gains) | (12,041 | ) | nm | (29,165 | ) | nm | 134,737 | ||||||||||
Interest expense and financing costs | 68,107 | 1% | 67,432 | 23% | 54,811 | ||||||||||||
Income tax expense (benefit) | 23,692 | nm | (29,486 | ) | nm | (7,542 | ) | ||||||||||
Total | $ | 208,854 | nm | $ | 117,002 | nm | $ | 311,951 | |||||||||
Year ended December 31, | 2017 | % Change | 2016 | % Change | 2015 | ||||||||||||
Fixed maturities | $ | 312,662 | 2% | $ | 305,459 | 4% | $ | 294,725 | |||||||||
Other investments | 76,858 | 81% | 42,514 | 111% | 20,148 | ||||||||||||
Equities | 14,919 | (9%) | 16,306 | 44% | 11,289 | ||||||||||||
Mortgage loans | 10,780 | 35% | 7,996 | nm | 1,861 | ||||||||||||
Cash and cash equivalents | 10,057 | 9% | 9,209 | 7% | 8,572 | ||||||||||||
Short-term investments | 2,718 | 32% | 2,060 | nm | 439 | ||||||||||||
Gross investment income | 427,994 | 12% | 383,544 | 14% | 337,034 | ||||||||||||
Investment expense | (27,189 | ) | (10%) | (30,209 | ) | (5%) | (31,698 | ) | |||||||||
Net investment income | $ | 400,805 | 13% | $ | 353,335 | 16% | $ | 305,336 | |||||||||
Pre-tax yield:(1) | |||||||||||||||||
Fixed maturities | 2.7 | % | 2.6 | % | 2.4 | % | |||||||||||
Year ended December 31, | 2019 | % Change | 2018 | % Change | 2017 | ||||||||||||
Fixed maturities | $ | 384,053 | 8% | $ | 356,273 | 14% | $ | 312,662 | |||||||||
Other investments | 60,038 | 23% | 48,959 | (36%) | 76,858 | ||||||||||||
Equity securities | 10,434 | 4% | 10,077 | (32%) | 14,919 | ||||||||||||
Mortgage loans | 14,712 | 8% | 13,566 | 26% | 10,780 | ||||||||||||
Cash and cash equivalents | 26,882 | (2%) | 27,566 | nm | 10,057 | ||||||||||||
Short-term investments | 7,053 | (25%) | 9,365 | nm | 2,718 | ||||||||||||
Gross investment income | 503,172 | 8% | 465,806 | 9% | 427,994 | ||||||||||||
Investment expense | (24,600 | ) | (10%) | (27,299 | ) | —% | (27,189 | ) | |||||||||
Net investment income | $ | 478,572 | 9% | $ | 438,507 | 9% | $ | 400,805 | |||||||||
Pre-tax yield:(1) | |||||||||||||||||
Fixed maturities | 3.2 | % | 3.0 | % | 2.7 | % | |||||||||||
(1) | Pre-tax yield is |
Year ended December 31, | 2017 | 2016 | 2015 | ||||||||||
Hedge, direct lending, private equity and real estate funds | $ | 69,740 | $ | 21,378 | $ | 21,888 | |||||||
Other privately held investments | 4,560 | 124 | — | ||||||||||
CLO-Equities | 2,558 | 21,012 | (1,740 | ) | |||||||||
Total net investment income from other investments | $ | 76,858 | $ | 42,514 | $ | 20,148 | |||||||
Pre-tax return on other investments(1) | 9.6 | % | 5.1 | % | 2.3 | % | |||||||
Year ended December 31, | 2019 | 2018 | 2017 | ||||||||||
Hedge, direct lending, private equity and real estate funds | $ | 42,186 | $ | 40,295 | $ | 69,740 | |||||||
Other privately held investments | 18,050 | 2,036 | 4,560 | ||||||||||
CLO-Equities | (198 | ) | 6,628 | 2,558 | |||||||||
Total net investment income from other investments(1) | $ | 60,038 | $ | 48,959 | $ | 76,858 | |||||||
Pre-tax return on other investments(2) | 8.5 | % | 6.4 | % | 9.6 | % | |||||||
(1) | Excluding overseas deposits. |
(2) | The pre-tax return on other investments is |
Year ended December 31, | 2019 | 2018 | 2017 | ||||||||||
On sale of investments: | |||||||||||||
Fixed maturities and short-term investments | $ | 36,645 | $ | (96,086 | ) | $ | (26,396 | ) | |||||
Equity securities | 3,126 | 17,046 | 77,384 | ||||||||||
39,771 | (79,040 | ) | 50,988 | ||||||||||
OTTI charges recognized in net income | (6,984 | ) | (9,733 | ) | (14,493 | ) | |||||||
Change in fair value of investment derivatives | (1,823 | ) | 5,445 | (8,269 | ) | ||||||||
Net unrealized gains (losses) on equity securities | 60,269 | (66,890 | ) | — | |||||||||
Net investment gains (losses) | $ | 91,233 | $ | (150,218 | ) | $ | 28,226 | ||||||
Year ended December 31, | 2017 | 2016 | 2015 | ||||||||||
On sale of investments: | |||||||||||||
Fixed maturities and short-term investments | $ | (26,396 | ) | $ | (48,193 | ) | $ | (83,600 | ) | ||||
Equities | 77,384 | 2,949 | 10,570 | ||||||||||
50,988 | (45,244 | ) | (73,030 | ) | |||||||||
OTTI charges recognized in earnings | (14,493 | ) | (26,210 | ) | (72,720 | ) | |||||||
Change in fair value of investment derivatives | (8,269 | ) | 10,929 | 7,259 | |||||||||
Net realized investment gains (losses) | $ | 28,226 | $ | (60,525 | ) | $ | (138,491 | ) | |||||
Year ended December 31, | 2019 | 2018 | 2017 | ||||||||||
Fixed maturities: | |||||||||||||
Non-U.S. government | $ | 90 | $ | 4,697 | $ | 8,187 | |||||||
Corporate debt | 6,894 | 4,995 | 6,306 | ||||||||||
Non-Agency CMBS | — | 41 | — | ||||||||||
Total OTTI charge recognized in net income | $ | 6,984 | $ | 9,733 | $ | 14,493 | |||||||
Year ended December 31, | 2017 | 2016 | 2015 | ||||||||||
Fixed maturities: | |||||||||||||
Non-U.S. government | $ | 8,187 | $ | 3,557 | $ | 3,538 | |||||||
Corporate debt | 6,306 | 20,093 | 47,029 | ||||||||||
Non-Agency RMBS | — | — | 111 | ||||||||||
ABS | — | — | 124 | ||||||||||
14,493 | 23,650 | 50,802 | |||||||||||
Equity securities: | |||||||||||||
Exchange-traded funds | — | 2,560 | 10,732 | ||||||||||
Bond mutual funds | — | — | 11,186 | ||||||||||
— | 2,560 | 21,918 | |||||||||||
Total OTTI recognized in earnings | $ | 14,493 | $ | 26,210 | $ | 72,720 | |||||||
Year ended December 31, | 2017 | 2016 | 2015 | ||||||||||
Net investment income | $ | 400,805 | $ | 353,335 | $ | 305,336 | |||||||
Net realized investments gains (losses) | 28,226 | (60,525 | ) | (138,491 | ) | ||||||||
Change in net unrealized gains (losses)(1) | 177,259 | 70,588 | (134,746 | ) | |||||||||
Interest in loss of equity method investments | (8,402 | ) | (2,094 | ) | — | ||||||||
Total | $ | 597,888 | $ | 361,304 | $ | 32,099 | |||||||
Average cash and investments(2) | $ | 14,854,569 | $ | 14,491,830 | $ | 14,894,856 | |||||||
Total return on average cash and investments, pre-tax: | |||||||||||||
Inclusive of investment related foreign exchange movements | 4.0 | % | 2.5 | % | 0.2 | % | |||||||
Exclusive of investment related foreign exchange movements(3) | 3.5 | % | 3.0 | % | 0.9 | % | |||||||
Year ended December 31, | 2019 | 2018 | 2017 | ||||||||||
Net investment income | $ | 478,572 | $ | 438,507 | $ | 400,805 | |||||||
Net investments gains (losses) | 91,233 | (150,218 | ) | 28,226 | |||||||||
Change in net unrealized gains (losses) on fixed maturities(1) | 385,364 | (191,529 | ) | 177,259 | |||||||||
Interest in income (loss) of equity method investments | 9,718 | 993 | (8,402 | ) | |||||||||
Total | $ | 964,887 | $ | 97,753 | $ | 597,888 | |||||||
Average cash and investments(2) | $ | 15,322,688 | $ | 15,361,287 | $ | 14,854,569 | |||||||
Total return on average cash and investments, pre-tax: | |||||||||||||
Including investment related foreign exchange movements | 6.3 | % | 0.6 | % | 4.0 | % | |||||||
Excluding investment related foreign exchange movements(3) | 6.1 | % | 0.9 | % | 3.5 | % | |||||||
(1) | Change in net unrealized gains (losses) on fixed maturities is calculated by taking net unrealized gains (losses) at period end less net unrealized gains (losses) at the prior period end. |
(2) | The average cash and investments balance is calculated by taking the average of the |
(3) | Pre-tax total return on average cash and investments excluding foreign exchange rate movements is a non-GAAP financial measure as defined in Item 10(e) of SEC Regulation S-K. The reconciliation to pre-tax total return on cash and investments, the most comparable GAAP financial measure, included foreign exchange gains (losses) of |
December 31, 2017 | December 31, 2016 | ||||||||
Fair Value | Fair Value | ||||||||
Fixed maturities | $ | 12,622,006 | $ | 11,397,114 | |||||
Equities | 635,511 | 638,744 | |||||||
Mortgage loans | 325,062 | 349,969 | |||||||
Other investments | 1,009,373 | 830,219 | |||||||
Equity method investments | 108,597 | 116,000 | |||||||
Short-term investments | 83,661 | 127,461 | |||||||
Total investments | $ | 14,784,210 | $ | 13,459,507 | |||||
Cash and cash equivalents(1) | $ | 1,363,786 | $ | 1,241,507 | |||||
December 31, 2019 | December 31, 2018 | ||||||||
Fair value | Fair value | ||||||||
Fixed maturities | $ | 12,468,205 | $ | 11,435,347 | |||||
Equity securities | 474,207 | 381,633 | |||||||
Mortgage loans | 432,748 | 298,650 | |||||||
Other investments | 770,923 | 787,787 | |||||||
Equity method investments | 117,821 | 108,103 | |||||||
Short-term investments | 38,471 | 144,040 | |||||||
Total investments | $ | 14,302,375 | $ | 13,155,560 | |||||
Cash and cash equivalents(1) | $ | 1,576,457 | $ | 1,830,020 | |||||
(1) | Includes restricted cash and cash equivalents of |
December 31, 2017 | December 31, 2016 | ||||||||||||||
Fair Value | % of Total | Fair Value | % of Total | ||||||||||||
Fixed maturities: | |||||||||||||||
U.S. government and agency | $ | 1,712,469 | 14 | % | $ | 1,656,069 | 15 | % | |||||||
Non-U.S. government | 806,299 | 6 | % | 565,834 | 5 | % | |||||||||
Corporate debt | 5,297,866 | 43 | % | 4,600,743 | 40 | % | |||||||||
Agency RMBS | 2,395,152 | 19 | % | 2,465,135 | 22 | % | |||||||||
CMBS | 777,728 | 6 | % | 666,237 | 6 | % | |||||||||
Non-Agency RMBS | 46,831 | — | % | 56,921 | — | % | |||||||||
ABS | 1,436,281 | 11 | % | 1,222,214 | 11 | % | |||||||||
Municipals(1) | 149,380 | 1 | % | 163,961 | 1 | % | |||||||||
Total | $ | 12,622,006 | 100 | % | $ | 11,397,114 | 100 | % | |||||||
Credit ratings: | |||||||||||||||
U.S. government and agency | $ | 1,712,469 | 14 | % | $ | 1,656,069 | 15 | % | |||||||
AAA(2) | 4,990,848 | 39 | % | 4,165,226 | 36 | % | |||||||||
AA | 1,050,631 | 8 | % | 1,124,167 | 10 | % | |||||||||
A | 2,090,632 | 17 | % | 1,747,857 | 15 | % | |||||||||
BBB | 1,758,291 | 14 | % | 1,563,352 | 14 | % | |||||||||
Below BBB(3) | 1,019,135 | 8 | % | 1,140,443 | 10 | % | |||||||||
Total | $ | 12,622,006 | 100 | % | $ | 11,397,114 | 100 | % | |||||||
December 31, 2019 | December 31, 2018 | ||||||||||||||
Fair value | % of total | Fair value | % of total | ||||||||||||
Fixed maturities: | |||||||||||||||
U.S. government and agency | $ | 2,112,881 | 17 | % | $ | 1,515,697 | 13 | % | |||||||
Non-U.S. government | 576,592 | 5 | % | 493,016 | 4 | % | |||||||||
Corporate debt | 4,930,254 | 38 | % | 4,876,921 | 44 | % | |||||||||
Agency RMBS | 1,592,584 | 13 | % | 1,643,308 | 14 | % | |||||||||
CMBS | 1,365,052 | 11 | % | 1,092,530 | 10 | % | |||||||||
Non-Agency RMBS | 84,922 | 1 | % | 40,687 | — | % | |||||||||
ABS | 1,598,693 | 13 | % | 1,637,603 | 14 | % | |||||||||
Municipals(1) | 207,227 | 2 | % | 135,585 | 1 | % | |||||||||
Total | $ | 12,468,205 | 100 | % | $ | 11,435,347 | 100 | % | |||||||
Credit ratings: | |||||||||||||||
U.S. government and agency | $ | 2,112,881 | 17 | % | $ | 1,515,697 | 13 | % | |||||||
AAA(2) | 4,896,833 | 38 | % | 4,569,632 | 40 | % | |||||||||
AA | 865,601 | 7 | % | 874,932 | 8 | % | |||||||||
A | 1,848,331 | 15 | % | 1,769,686 | 15 | % | |||||||||
BBB | 1,684,589 | 14 | % | 1,678,962 | 15 | % | |||||||||
Below BBB(3) | 1,059,970 | 9 | % | 1,026,438 | 9 | % | |||||||||
Total | $ | 12,468,205 | 100 | % | $ | 11,435,347 | 100 | % | |||||||
(1) | Includes bonds issued by states, municipalities, and political subdivisions. |
(2) | Includes U.S. government-sponsored |
(3) | Non-investment grade and non-rated securities. |
December 31, 2017 | December 31, 2016 | ||||||||||||||||||
Country | Fair Value | % of Total | Weighted Average Credit Rating | Fair Value | % of Total | Weighted Average Credit Rating | |||||||||||||
Eurozone countries: | |||||||||||||||||||
Netherlands | $ | 42,739 | 5 | % | AAA | $ | 18,003 | 3 | % | AAA | |||||||||
Germany | 35,332 | 4 | % | AA+ | 2,573 | — | % | AAA | |||||||||||
France | 34,386 | 4 | % | AA | — | — | % | — | |||||||||||
Belgium | 36,095 | 4 | % | AA- | — | — | % | — | |||||||||||
Supranationals(1) | 19,196 | 2 | % | AAA | 7,316 | 1 | % | AAA | |||||||||||
Italy | 7,366 | 1 | % | BBB | — | — | % | — | |||||||||||
Ireland | 7,060 | 1 | % | A | — | — | % | — | |||||||||||
Spain | 2,948 | — | % | BBB+ | — | — | % | — | |||||||||||
Total eurozone | $ | 185,122 | 21 | % | AA | $ | 27,892 | 4 | % | AAA | |||||||||
Other concentrations: | |||||||||||||||||||
United Kingdom | $ | 275,656 | 34 | % | AA | $ | 217,517 | 38 | % | AA | |||||||||
Canada | 151,027 | 19 | % | AA+ | 101,549 | 18 | % | AAA | |||||||||||
Mexico | 37,021 | 5 | % | BBB+ | 37,489 | 7 | % | BBB+ | |||||||||||
Other | 157,473 | 21 | % | A | 181,387 | 33 | % | AA- | |||||||||||
Total other concentrations | $ | 621,177 | 79 | % | AA- | $ | 537,942 | 96 | % | AA | |||||||||
Total non-U.S. government | $ | 806,299 | 100 | % | AA- | $ | 565,834 | 100 | % | AA | |||||||||
December 31, 2019 | December 31, 2018 | ||||||||||||||||||
Country | Fair value | % of total | Weighted average credit rating | Fair value | % of total | Weighted average credit rating | |||||||||||||
Eurozone countries: | |||||||||||||||||||
Netherlands | $ | 12,034 | 2 | % | AA+ | $ | 5,534 | 1 | % | AA+ | |||||||||
Supranationals(1) | 11,928 | 2 | % | AAA | 3,849 | 1 | % | AAA | |||||||||||
France | 4,908 | 1 | % | AA | 4,156 | 1 | % | AA | |||||||||||
Germany | 4,356 | 1 | % | AAA | — | — | % | — | |||||||||||
Austria | 3,972 | 1 | % | AA+ | 2,309 | — | % | AA+ | |||||||||||
Belgium | — | — | % | — | 10,983 | 2 | % | AA- | |||||||||||
Spain | — | — | % | — | 1,629 | — | % | A- | |||||||||||
Portugal | — | — | % | — | 876 | — | % | BBB- | |||||||||||
Total eurozone | $ | 37,198 | 7 | % | AA+ | $ | 29,336 | 5 | % | AA | |||||||||
Other concentrations: | |||||||||||||||||||
United Kingdom | $ | 238,238 | 41 | % | AA | $ | 219,452 | 45 | % | AA | |||||||||
Canada | 129,191 | 22 | % | AA+ | 90,187 | 18 | % | AA+ | |||||||||||
Mexico | 22,402 | 4 | % | BBB+ | 28,735 | 6 | % | BBB+ | |||||||||||
Other | 149,563 | 26 | % | AA+ | 125,306 | 26 | % | A+ | |||||||||||
Total other concentrations | $ | 539,394 | 93 | % | AA+ | $ | 463,680 | 95 | % | AA+ | |||||||||
Total non-U.S. government | $ | 576,592 | 100 | % | AA- | $ | 493,016 | 100 | % | AA- | |||||||||
(1) | Includes supranationals only |
December 31, 2017 | December 31, 2016 | ||||||||||||||||||
Fair Value | % of Total | Weighted Average Credit Rating | Fair Value | % of Total | Weighted Average Credit Rating | ||||||||||||||
Financial institutions: | |||||||||||||||||||
U.S. banking | $ | 1,169,750 | 22 | % | A- | $ | 979,377 | 21 | % | A- | |||||||||
Foreign banking | 600,114 | 11 | % | A+ | 271,951 | 6 | % | A | |||||||||||
Corporate/commercial finance | 309,589 | 6 | % | BB+ | 341,121 | 7 | % | BB+ | |||||||||||
Insurance | 147,446 | 3 | % | A+ | 131,375 | 3 | % | A+ | |||||||||||
Investment brokerage | 18,571 | — | % | BBB+ | 24,858 | 1 | % | BBB+ | |||||||||||
Total financial institutions | 2,245,470 | 42 | % | A- | 1,748,682 | 38 | % | BBB+ | |||||||||||
Consumer non-cyclicals | 668,621 | 13 | % | BBB | 644,296 | 14 | % | BBB | |||||||||||
Consumer cyclical | 513,824 | 10 | % | BBB- | 517,103 | 11 | % | BBB- | |||||||||||
Communications | 418,945 | 8 | % | BBB- | 401,656 | 9 | % | BBB- | |||||||||||
Technology | 348,725 | 7 | % | BBB | 296,078 | 6 | % | BBB | |||||||||||
Industrials | 339,819 | 6 | % | BB | 358,371 | 8 | % | BB | |||||||||||
Energy | 277,129 | 5 | % | BBB | 269,875 | 6 | % | BBB | |||||||||||
Utilities | 156,544 | 3 | % | BBB | 141,526 | 3 | % | BBB+ | |||||||||||
Other | 328,789 | 6 | % | A+ | 223,156 | 5 | % | A | |||||||||||
Total | $ | 5,297,866 | 100 | % | BBB+ | $ | 4,600,743 | 100 | % | BBB | |||||||||
Credit quality summary: | |||||||||||||||||||
Investment grade | $ | 4,319,620 | 82 | % | A- | $ | 3,499,457 | 76 | % | A- | |||||||||
Non-investment grade | 978,246 | 18 | % | B | 1,101,286 | 24 | % | B | |||||||||||
Total | $ | 5,297,866 | 100 | % | BBB+ | $ | 4,600,743 | 100 | % | BBB | |||||||||
December 31, 2019 | December 31, 2018 | ||||||||||||||||||
Fair value | % of total | Weighted average credit rating | Fair value | % of total | Weighted average credit rating | ||||||||||||||
Financial institutions: | |||||||||||||||||||
U.S. banking | $ | 969,570 | 20 | % | A- | $ | 1,075,998 | 22 | % | A- | |||||||||
Foreign banking | 370,981 | 8 | % | A | 433,182 | 9 | % | A | |||||||||||
Corporate/commercial finance | 358,008 | 7 | % | BBB- | 305,896 | 6 | % | BB | |||||||||||
Insurance | 147,287 | 3 | % | A | 134,537 | 3 | % | A | |||||||||||
Investment brokerage | 53,173 | 1 | % | A- | 35,223 | 1 | % | A | |||||||||||
Total financial institutions | 1,899,019 | 39 | % | A- | 1,984,836 | 41 | % | A- | |||||||||||
Consumer non-cyclicals | 614,605 | 12 | % | BBB- | 584,248 | 12 | % | BBB- | |||||||||||
Communications | 454,400 | 9 | % | BB+ | 420,511 | 9 | % | BBB- | |||||||||||
Consumer cyclical | 452,375 | 9 | % | BBB- | 468,250 | 10 | % | BBB- | |||||||||||
Technology | 354,449 | 7 | % | BBB- | 328,101 | 7 | % | BBB- | |||||||||||
Industrials | 346,289 | 7 | % | BB | 321,306 | 7 | % | BB | |||||||||||
Energy | 239,857 | 5 | % | BBB | 267,644 | 5 | % | BBB | |||||||||||
Utilities | 141,104 | 3 | % | BBB+ | 149,276 | 3 | % | BBB+ | |||||||||||
Other | 428,156 | 9 | % | A+ | 352,749 | 6 | % | A+ | |||||||||||
Total | $ | 4,930,254 | 100 | % | BBB+ | $ | 4,876,921 | 100 | % | BBB+ | |||||||||
Credit quality summary: | |||||||||||||||||||
Investment grade | $ | 3,935,941 | 80 | % | A- | $ | 3,892,399 | 80 | % | A- | |||||||||
Non-investment grade | 994,313 | 20 | % | B+ | 984,522 | 20 | % | B | |||||||||||
Total | $ | 4,930,254 | 100 | % | BBB+ | $ | 4,876,921 | 100 | % | BBB+ | |||||||||
December 31, 2017 | December 31, 2016 | ||||||||||||||||
RMBS | CMBS | RMBS | CMBS | ||||||||||||||
Government agency | $ | 2,395,152 | $ | 192,034 | $ | 2,465,135 | $ | — | |||||||||
AAA | 23,113 | 509,112 | 20,902 | 475,504 | |||||||||||||
AA | 109 | 63,217 | 1,882 | 118,653 | |||||||||||||
A | 1,913 | 12,608 | 4,233 | 61,036 | |||||||||||||
BBB | 6,896 | 757 | 9,755 | 10,791 | |||||||||||||
Below BBB(1) | 14,800 | — | 20,149 | 253 | |||||||||||||
Total | $ | 2,441,983 | $ | 777,728 | $ | 2,522,056 | $ | 666,237 | |||||||||
December 31, 2019 | December 31, 2018 | ||||||||||||||||
RMBS | CMBS | RMBS | CMBS | ||||||||||||||
Government agency | $ | 1,592,584 | $ | 332,383 | $ | 1,643,308 | $ | 204,744 | |||||||||
AAA | 64,685 | 991,627 | 20,965 | 824,226 | |||||||||||||
AA | 1,377 | 37,872 | 3,066 | 52,875 | |||||||||||||
A | 1,107 | 3,170 | 1,459 | 9,943 | |||||||||||||
BBB | 1,760 | — | 3,218 | 742 | |||||||||||||
Below BBB(1) | 15,993 | — | 11,979 | — | |||||||||||||
Total | $ | 1,677,506 | $ | 1,365,052 | $ | 1,683,995 | $ | 1,092,530 | |||||||||
(1) | Non-investment grade securities |
Asset-backed securities | |||||||||||||||||||||||||
AAA | AA | A | BBB | Below BBB | Total | ||||||||||||||||||||
At December 31, 2017 | |||||||||||||||||||||||||
CLO - debt tranches | $ | 795,968 | $ | 38,621 | $ | — | $ | 3,617 | $ | 3,771 | $ | 841,977 | |||||||||||||
Auto | 308,991 | 7,093 | 9,476 | 8,731 | — | 334,291 | |||||||||||||||||||
Student loan | 64,755 | 20,222 | — | — | — | 84,977 | |||||||||||||||||||
Credit card | 26,674 | — | — | — | — | 26,674 | |||||||||||||||||||
Other | 98,628 | 19,430 | 25,971 | 1,625 | 2,708 | 148,362 | |||||||||||||||||||
Total | $ | 1,295,016 | $ | 85,366 | $ | 35,447 | $ | 13,973 | $ | 6,479 | $ | 1,436,281 | |||||||||||||
% of total | 90% | 6% | 2% | 1% | 1% | 100% | |||||||||||||||||||
At December 31, 2016 | |||||||||||||||||||||||||
CLO - debt tranches | $ | 537,703 | $ | 260,960 | $ | — | $ | 3,510 | $ | 5,978 | $ | 808,151 | |||||||||||||
Auto | 156,981 | 11,084 | 12,926 | 17,495 | — | 198,486 | |||||||||||||||||||
Student loan | 49,974 | 13,006 | — | — | — | 62,980 | |||||||||||||||||||
Credit card | 25,379 | — | — | — | — | 25,379 | |||||||||||||||||||
Other | 73,398 | 9,748 | 39,668 | 1,811 | 2,593 | 127,218 | |||||||||||||||||||
Total | $ | 843,435 | $ | 294,798 | $ | 52,594 | $ | 22,816 | $ | 8,571 | $ | 1,222,214 | |||||||||||||
% of total | 69% | 24% | 4% | 2% | 1% | 100% | |||||||||||||||||||
Asset-backed securities | |||||||||||||||||||||||||
AAA | AA | A | BBB | Below BBB | Total | ||||||||||||||||||||
At December 31, 2019 | |||||||||||||||||||||||||
CLO - debt tranches | $ | 840,999 | $ | 46,463 | $ | 16,682 | $ | 10,385 | $ | 23,447 | $ | 937,976 | |||||||||||||
Auto | 349,103 | — | — | — | — | 349,103 | |||||||||||||||||||
Student loan | 69,690 | 5,003 | — | — | — | 74,693 | |||||||||||||||||||
Credit card | 19,657 | — | — | — | — | 19,657 | |||||||||||||||||||
Other | 177,488 | 9,142 | 27,860 | 2,186 | 588 | 217,264 | |||||||||||||||||||
Total | $ | 1,456,937 | $ | 60,608 | $ | 44,542 | $ | 12,571 | $ | 24,035 | $ | 1,598,693 | |||||||||||||
% of total | 91% | 4% | 3% | 1% | 1% | 100% | |||||||||||||||||||
At December 31, 2018 | |||||||||||||||||||||||||
CLO - debt tranches | $ | 900,157 | $ | 27,492 | $ | — | $ | 9,938 | $ | 23,540 | $ | 961,127 | |||||||||||||
Auto | 365,685 | 7,872 | 4,231 | — | — | 377,788 | |||||||||||||||||||
Student loan | 79,419 | 17,415 | — | — | — | 96,834 | |||||||||||||||||||
Credit card | 33,219 | — | — | — | — | 33,219 | |||||||||||||||||||
Other | 127,638 | 13,457 | 24,867 | 103 | 2,570 | 168,635 | |||||||||||||||||||
Total | $ | 1,506,118 | $ | 66,236 | $ | 29,098 | $ | 10,041 | $ | 26,110 | $ | 1,637,603 | |||||||||||||
% of total | 92% | 4% | 2% | 1% | 1% | 100% | |||||||||||||||||||
G.O. | Revenue | Total | % of Total Fair Value | Gross Unrealized Gains | Gross Unrealized Losses | Weighted Average Credit Rating | |||||||||||||||||||
At December 31, 2017 | |||||||||||||||||||||||||
New York | $ | 12,510 | $ | 29,211 | $ | 41,721 | 28% | $ | 103 | $ | (569 | ) | AA+ | ||||||||||||
California | 20,119 | 11,597 | 31,716 | 21% | 663 | (98 | ) | AA- | |||||||||||||||||
Utah | — | 11,626 | 11,626 | 8% | 87 | — | AA+ | ||||||||||||||||||
Michigan | — | 9,247 | 9,247 | 6% | 19 | (83 | ) | A+ | |||||||||||||||||
Florida | — | 7,702 | 7,702 | 5% | 40 | (2 | ) | AA | |||||||||||||||||
Other | 5,558 | 41,810 | 47,368 | 32% | 273 | (220 | ) | AA- | |||||||||||||||||
$ | 38,187 | $ | 111,193 | $ | 149,380 | 100% | $ | 1,185 | $ | (972 | ) | AA | |||||||||||||
At December 31, 2016 | |||||||||||||||||||||||||
New York | $ | 16,181 | $ | 19,676 | $ | 35,857 | 22% | $ | 199 | $ | (447 | ) | AA | ||||||||||||
California | 15,032 | 8,046 | 23,078 | 14% | 644 | (73 | ) | AA- | |||||||||||||||||
Utah | — | 14,491 | 14,491 | 9% | 18 | — | AA+ | ||||||||||||||||||
Michigan | — | 9,081 | 9,081 | 6% | — | (256 | ) | A+ | |||||||||||||||||
Florida | — | 7,921 | 7,921 | 5% | 107 | (39 | ) | AA | |||||||||||||||||
Other | 15,150 | 58,383 | 73,533 | 44% | 542 | (175 | ) | AA- | |||||||||||||||||
$ | 46,363 | $ | 117,598 | $ | 163,961 | 100% | $ | 1,510 | $ | (990 | ) | AA- | |||||||||||||
G.O. | Revenue | Total | % of total fair value | Gross unrealized gains | Gross unrealized losses | Weighted average credit rating | |||||||||||||||||||
At December 31, 2019 | |||||||||||||||||||||||||
New York | $ | 5,011 | $ | 44,549 | $ | 49,560 | 24% | $ | 1,139 | $ | (35 | ) | AA+ | ||||||||||||
California | 21,333 | 21,416 | 42,749 | 21% | 1,088 | (4 | ) | AA | |||||||||||||||||
Massachusetts | 16,122 | 522 | 16,644 | 8% | 22 | (117 | ) | AA | |||||||||||||||||
Texas | 3,702 | 11,232 | 14,934 | 7% | 418 | (88 | ) | AA | |||||||||||||||||
Michigan | — | 13,952 | 13,952 | 7% | 194 | (17 | ) | AA- | |||||||||||||||||
Other | 12,796 | 56,592 | 69,388 | 33% | 1,498 | (146 | ) | A+ | |||||||||||||||||
$ | 58,964 | $ | 148,263 | $ | 207,227 | 100% | $ | 4,359 | $ | (407 | ) | AA | |||||||||||||
At December 31, 2018 | |||||||||||||||||||||||||
New York | $ | 9,805 | $ | 29,479 | $ | 39,284 | 29% | $ | 67 | $ | (726 | ) | AA | ||||||||||||
California | 21,371 | 13,314 | 34,685 | 26% | 518 | (168 | ) | AA- | |||||||||||||||||
Utah | — | 9,507 | 9,507 | 7% | 57 | — | AA+ | ||||||||||||||||||
Florida | — | 9,160 | 9,160 | 7% | 19 | (34 | ) | AA | |||||||||||||||||
Michigan | — | 9,147 | 9,147 | 7% | — | (136 | ) | AA- | |||||||||||||||||
Other | 4,326 | 29,476 | 33,802 | 24% | 253 | (333 | ) | AA- | |||||||||||||||||
$ | 35,502 | $ | 100,083 | $ | 135,585 | 100% | $ | 914 | $ | (1,397 | ) | AA- | |||||||||||||
December 31, 2017 | December 31, 2016 | ||||||||||||||||||||||
Severity of Unrealized Loss | Fair Value | Gross Unrealized Losses | % of Total Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | % of Total Gross Unrealized Losses | |||||||||||||||||
0-10% | $ | 6,790,123 | $ | (71,076 | ) | 86 | % | $ | 6,162,925 | $ | (109,381 | ) | 60 | % | |||||||||
10-20% | 78,348 | (11,838 | ) | 14 | % | 208,223 | (37,642 | ) | 21 | % | |||||||||||||
20-30% | 872 | (229 | ) | — | % | 110,579 | (30,692 | ) | 17 | % | |||||||||||||
30-40% | — | — | — | % | 4,706 | (2,368 | ) | 1 | % | ||||||||||||||
40-50% | — | — | — | % | 2,738 | (1,923 | ) | 1 | % | ||||||||||||||
> 50% | — | — | — | % | — | — | — | % | |||||||||||||||
Total | $ | 6,869,343 | $ | (83,143 | ) | 100 | % | $ | 6,489,171 | $ | (182,006 | ) | 100 | % | |||||||||
December 31, 2019 | December 31, 2018 | ||||||||||||||||||||||
Severity of Unrealized Loss | Fair value | Gross unrealized losses | % of total gross unrealized losses | Fair value | Gross unrealized losses | % of total gross unrealized losses | |||||||||||||||||
0-10% | $ | 2,961,063 | $ | (24,823 | ) | 96 | % | $ | 7,496,064 | $ | (151,333 | ) | 91 | % | |||||||||
10-20% | 6,571 | (1,006 | ) | 4 | % | 88,447 | (12,573 | ) | 8 | % | |||||||||||||
20-30% | 10 | (3 | ) | — | % | 5,557 | (1,522 | ) | 1 | % | |||||||||||||
30-40% | — | — | — | % | — | — | — | % | |||||||||||||||
40-50% | — | — | — | % | — | — | — | % | |||||||||||||||
> 50% | — | — | — | % | — | — | — | % | |||||||||||||||
Total | $ | 2,967,644 | $ | (25,832 | ) | 100 | % | $ | 7,590,068 | $ | (165,428 | ) | 100 | % | |||||||||
December 31, 2017 | December 31, 2016 | ||||||||||||||||||||||
Severity of Unrealized Loss | Fair Value | Gross Unrealized Losses | % of Total Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | % of Total Gross Unrealized Losses | |||||||||||||||||
0-10% | $ | 270,281 | $ | (5,137 | ) | 66 | % | $ | 281,498 | $ | (6,575 | ) | 44 | % | |||||||||
10-20% | 9,549 | (1,408 | ) | 18 | % | 28,115 | (4,572 | ) | 30 | % | |||||||||||||
20-30% | 1,050 | (314 | ) | 4 | % | 2,656 | (778 | ) | 5 | % | |||||||||||||
30-40% | 638 | (287 | ) | 4 | % | 283 | (151 | ) | 1 | % | |||||||||||||
40-50% | 654 | (584 | ) | 8 | % | 2,833 | (2,280 | ) | 15 | % | |||||||||||||
> 50% | — | — | — | % | 648 | (833 | ) | 5 | % | ||||||||||||||
Total | $ | 282,172 | $ | (7,730 | ) | 100 | % | $ | 316,033 | $ | (15,189 | ) | 100 | % | |||||||||
December 31, 2019 | December 31, 2018 | ||||||||||||||||||||||
Severity of Unrealized Loss | Fair value | Gross unrealized losses | % of total gross unrealized losses | Fair value | Gross unrealized losses | % of total gross unrealized losses | |||||||||||||||||
0-10% | $ | 197,731 | $ | (4,319 | ) | 72 | % | $ | 779,812 | $ | (31,179 | ) | 63 | % | |||||||||
10-20% | 7,577 | (1,063 | ) | 18 | % | 107,931 | (15,074 | ) | 31 | % | |||||||||||||
20-30% | 1,893 | (557 | ) | 9 | % | 9,289 | (2,931 | ) | 6 | % | |||||||||||||
30-40% | 106 | (63 | ) | 1 | % | 370 | (227 | ) | — | % | |||||||||||||
40-50% | — | — | — | % | — | — | — | % | |||||||||||||||
> 50% | 13 | (18 | ) | — | % | — | — | — | % | ||||||||||||||
Total | $ | 207,320 | $ | (6,020 | ) | 100 | % | $ | 897,402 | $ | (49,411 | ) | 100 | % | |||||||||
December 31, 2017 | December 31, 2016 | ||||||||||||||
Hedge funds | |||||||||||||||
Long/short equity funds | $ | 38,470 | 4 | % | $ | 118,619 | 14 | % | |||||||
Multi-strategy funds | 286,164 | 28 | % | 285,992 | 34 | % | |||||||||
Event-driven funds | 39,177 | 4 | % | 93,539 | 11 | % | |||||||||
Total hedge funds | 363,811 | 36 | % | 498,150 | 59 | % | |||||||||
Direct lending funds | 250,681 | 25 | % | 134,650 | 16 | % | |||||||||
Private equity funds | 68,812 | 7 | % | 81,223 | 10 | % | |||||||||
Real estate funds | 50,009 | 5 | % | 13,354 | 2 | % | |||||||||
Total hedge, direct lending, private equity and real estate funds | 733,313 | 73 | % | 727,377 | 87 | % | |||||||||
CLO-Equities | 31,413 | 2 | % | 60,700 | 8 | % | |||||||||
Other privately held investments | 46,430 | 5 | % | 42,142 | 5 | % | |||||||||
Overseas deposits | 198,217 | 20 | % | — | — | % | |||||||||
Total other investments | $ | 1,009,373 | 100 | % | $ | 830,219 | 100 | % | |||||||
December 31, 2019 | December 31, 2018 | ||||||||||||||
Hedge funds | |||||||||||||||
Long/short equity funds | $ | 31,248 | 4 | % | $ | 26,779 | 3 | % | |||||||
Multi-strategy funds | 136,542 | 18 | % | 167,819 | 22 | % | |||||||||
Total hedge funds | 167,790 | 22 | % | 194,598 | 25 | % | |||||||||
Direct lending funds | 277,395 | 36 | % | 274,478 | 35 | % | |||||||||
Private equity funds | 80,412 | 10 | % | 64,566 | 8 | % | |||||||||
Real estate funds | 130,112 | 17 | % | 84,202 | 11 | % | |||||||||
Total hedge, direct lending, private equity and real estate funds | 655,709 | 85 | % | 617,844 | 79 | % | |||||||||
CLO-Equities | 14,328 | 2 | % | 21,271 | 2 | % | |||||||||
Other privately held investments | 36,934 | 5 | % | 44,518 | 6 | % | |||||||||
Overseas deposits | 63,952 | 8 | % | 104,154 | 13 | % | |||||||||
Total other investments | $ | 770,923 | 100 | % | $ | 787,787 | 100 | % | |||||||
Total cash provided by (used in)(1) | 2017 | 2016 | 2015 | ||||||||||
Operating activities | $ | 259,229 | $ | 406,724 | $ | 791,200 | |||||||
Investing activities | 178,363 | (144,431 | ) | (225,697 | ) | ||||||||
Financing activities | (545,688 | ) | (201,587 | ) | (487,006 | ) | |||||||
Effect of exchange rate changes on cash | 17,228 | (9,345 | ) | (12,194 | ) | ||||||||
Increase (decrease) in cash and cash equivalents | $ | (90,868 | ) | $ | 51,361 | $ | 66,303 | ||||||
Total cash provided by (used in)(1) | 2019 | 2018 | 2017 | ||||||||||
Operating activities | $ | 199,004 | $ | 10,773 | $ | 259,229 | |||||||
Investing activities | (774,315 | ) | 638,554 | 391,510 | |||||||||
Financing activities | 277,510 | (186,207 | ) | (545,688 | ) | ||||||||
Effect of exchange rate changes on cash | 44,238 | 3,114 | 17,228 | ||||||||||
Increase (decrease) in cash and cash equivalents | $ | (253,563 | ) | $ | 466,234 | $ | 122,279 | ||||||
(1) | Refer to Item 8, ‘Consolidated Statements of |
• | Financing cash inflows were due to net proceeds from the issuance of $300 million 3.900% Senior Notes and $425 million of Junior Subordinated Notes. Financing cash outflows primarily related to the repayment of $250 million 2.650% Senior Notes and dividends paid to common and preferred shareholders of $180 million in 2019 (2018: $176 million). Cash outflows also included common share repurchases associated with the vesting of share-settled restricted stock units of $10 million in 2019 ( 2018: $10 million). Any future share repurchases are discretionary, the timing and amount of repurchase transactions depend on a variety of factors including, but not limited to, global insurance and reinsurance, and financial market conditions and opportunities, capital management and regulatory considerations (refer to 'Capital Resources – Share Repurchases' below for further details). In 2018, we also fully redeemed the $36 million of Dekania Notes at par. |
At December 31, | 2017 | 2016 | |||||||
Debt | $ | 1,376,529 | $ | 992,950 | |||||
Preferred shares | 775,000 | 1,126,074 | |||||||
Common equity | 4,566,264 | 5,146,296 | |||||||
Shareholders’ equity attributable to AXIS Capital | 5,341,264 | 6,272,370 | |||||||
Total capital | $ | 6,717,793 | $ | 7,265,320 | |||||
Ratio of debt to total capital | 20.5 | % | 13.7 | % | |||||
Ratio of debt and preferred equity to total capital | 32.0 | % | 29.2 | % | |||||
At December 31, | 2019 | 2018 | |||||||
Debt | $ | 1,808,157 | $ | 1,341,961 | |||||
Preferred shares | 775,000 | 775,000 | |||||||
Common equity | 4,769,008 | 4,255,071 | |||||||
Shareholders’ equity | 5,544,008 | 5,030,071 | |||||||
Total capital | $ | 7,352,165 | $ | 6,372,032 | |||||
Ratio of debt to total capital | 24.6 | % | 21.1 | % | |||||
Ratio of debt and preferred equity to total capital | 35.1 | % | 33.2 | % | |||||
Year ended December 31, | 2017 | 2016 | ||||||||
Common equity - opening | $ | 5,146,296 | $ | 5,239,039 | ||||||
Net income attributable to AXIS Capital | (368,969 | ) | 513,368 | |||||||
Change in unrealized losses on available for sale investments, net of tax | 172,285 | 67,262 | ||||||||
Share repurchases | (285,858 | ) | (571,805 | ) | ||||||
Settlement of accelerated share repurchase | — | 60,000 | ||||||||
Common share dividends | (132,182 | ) | (132,188 | ) | ||||||
Preferred share dividends | (46,810 | ) | (46,597 | ) | ||||||
Share-based compensation expense recognized in equity | 38,677 | 35,607 | ||||||||
Loss on repurchase of preferred shares | — | (1,309 | ) | |||||||
Issue costs of newly issued preferred shares (included in additional paid-in capital) | — | (18,055 | ) | |||||||
Currency translation adjustment | 41,938 | (638 | ) | |||||||
Other | 887 | 1,612 | ||||||||
Common equity - closing | $ | 4,566,264 | $ | 5,146,296 | ||||||
Year ended December 31, | 2019 | 2018 | ||||||||
Common equity - opening | $ | 4,255,071 | $ | 4,566,264 | ||||||
Net income | 323,473 | 43,021 | ||||||||
Change in unrealized losses on available for sale investments, net of tax | 349,886 | (190,829 | ) | |||||||
Share repurchases | (10,165 | ) | (10,080 | ) | ||||||
Common share dividends | (138,487 | ) | (134,748 | ) | ||||||
Preferred share dividends | (41,112 | ) | (42,625 | ) | ||||||
Share-based compensation expense | 29,675 | 33,505 | ||||||||
Foreign currency translation adjustment | (1,066 | ) | (11,165 | ) | ||||||
Other | 1,728 | 1,728 | ||||||||
Common equity - closing | $ | 4,769,003 | $ | 4,255,071 | ||||||
Rating agency | Agency’s description of rating | Rating and outlook | Agency’s rating definition | Ranking of rating | ||||||
Standard & Poor’s | An "opinion about the financial security characteristics of an insurance organization, with respect to its ability to pay under its insurance policies and contracts, in accordance with their terms". | A+ | "Strong capacity to meet its financial commitments" | The ‘A’ grouping is the third highest out of ten major rating categories. The second through eighth major rating categories may be modified by the addition of a plus or minus sign to show relative standing within the major rating categories. | ||||||
A.M. Best | An "opinion of an insurer’s financial strength and ability to meet its ongoing insurance policy and contract obligations". | A+ (Negative) (2) | "Superior ability to meet ongoing insurance obligations" | The ‘A+’ grouping is the second highest rating out of fourteen. Ratings outlooks (‘Positive’, ‘Negative’ and ‘Stable’) are assigned to indicate a rating’s potential direction over an intermediate term, generally defined as 36 months. | ||||||
Moody’s Investors Service | "Opinions of the ability of insurance companies to pay punctually senior policyholder claims and obligations." | A2 (Negative)(3) | "Offers good financial security" | The ‘A’ grouping is the third highest out of nine rating categories. Each of the second through seventh categories are subdivided into three subcategories, as indicated by an appended numerical modifier of ‘1’, ‘2’ and ‘3’. The ‘1’ modifier indicates that the obligation ranks in the higher end of the rating category, the ‘2’ modifier indicates a mid-category ranking and the ‘3’ modifier indicates a ranking in the lower end of the rating category. |
Payment Due By Period | ||||||||||||||||||||||
Contractual Obligations and Commitments | Total | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | |||||||||||||||||
Operating activities | ||||||||||||||||||||||
Estimated gross loss and loss expense payments(1) | $ | 12,997,553 | $ | 3,944,971 | $ | 3,820,077 | $ | 2,019,845 | $ | 3,212,660 | ||||||||||||
Operating lease obligations(2) | 208,120 | 27,777 | 49,175 | 46,562 | 84,606 | |||||||||||||||||
Investing activities | ||||||||||||||||||||||
Unfunded investment commitments(3) | $ | 429,665 | $ | 105,502 | 169,434 | 70,983 | 83,746 | |||||||||||||||
Financing activities | ||||||||||||||||||||||
Debt (including interest payments)(4) | 2,001,299 | 66,072 | 855,575 | 58,200 | 1,021,452 | |||||||||||||||||
Total | $ | 15,636,637 | $ | 4,144,322 | $ | 4,894,261 | $ | 2,195,590 | $ | 4,402,464 | ||||||||||||
Payment due by period | ||||||||||||||||||||||
Contractual obligations and commitments | Total | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | |||||||||||||||||
Operating activities | ||||||||||||||||||||||
Estimated gross losses and loss expenses payments(1) | $ | 12,752,081 | $ | 3,299,764 | $ | 3,925,672 | $ | 2,076,156 | $ | 3,450,489 | ||||||||||||
Operating lease obligations(2) | 144,612 | 19,225 | 39,178 | 27,647 | 58,562 | |||||||||||||||||
Investing activities | ||||||||||||||||||||||
Unfunded investment commitments(3) | $ | 619,948 | $ | 201,372 | 110,940 | 151,125 | 156,511 | |||||||||||||||
Financing activities | ||||||||||||||||||||||
Debt (principal payments)(4) | $ | 1,825,000 | $ | 500,000 | — | — | 1,325,000 | |||||||||||||||
Debt (interest payments)(4)(5) | $ | 904,508 | $ | 71,640 | 118,800 | 118,800 | 595,268 | |||||||||||||||
Total | $ | 16,246,149 | $ | 4,092,001 | $ | 4,194,590 | $ | 2,373,728 | $ | 5,585,830 | ||||||||||||
(1) | We are obligated to pay claims for specified loss events covered by the |
(2) | In the ordinary course of business, we renew and enter into new leases for office space which expire at various |
(3) | We have |
(4) | Refer to Item 8, Note |
(5) | Debt (interest payments) includes $17 million of unamortized discount and debt insurance expenses. |
2019 | 2018 | ||||||||||||||||||||||||
At December 31, | Case reserves | IBNR | Total | Case reserves | IBNR | Total | |||||||||||||||||||
Insurance segment: | |||||||||||||||||||||||||
Property and other | $ | 655,262 | $ | 327,475 | $ | 982,737 | $ | 792,022 | $ | 505,071 | $ | 1,297,092 | |||||||||||||
Marine | 235,549 | 281,677 | 517,226 | 208,620 | 335,889 | 544,508 | |||||||||||||||||||
Aviation | 116,932 | 31,445 | 148,377 | 102,954 | 41,554 | 144,508 | |||||||||||||||||||
Credit and political risk | 5,905 | 124,109 | 130,014 | (3,171 | ) | 127,098 | 123,927 | ||||||||||||||||||
Professional lines | 806,780 | 2,041,317 | 2,848,097 | 678,047 | 1,980,164 | 2,658,212 | |||||||||||||||||||
Liability | 396,837 | 1,473,280 | 1,870,117 | 317,449 | 1,340,613 | 1,658,062 | |||||||||||||||||||
Total Insurance | 2,217,265 | 4,279,303 | 6,496,568 | 2,095,920 | 4,330,389 | 6,426,309 | |||||||||||||||||||
Reinsurance segment: | |||||||||||||||||||||||||
Property and other | 879,301 | 1,186,655 | 2,065,958 | 890,747 | 902,493 | 1,793,240 | |||||||||||||||||||
Credit and surety | 125,029 | 190,368 | 315,397 | 125,256 | 231,222 | 356,478 | |||||||||||||||||||
Professional lines | 429,576 | 688,439 | 1,118,015 | 432,137 | 702,449 | 1,134,586 | |||||||||||||||||||
Motor | 778,534 | 516,148 | 1,294,681 | 701,600 | 517,542 | 1,219,142 | |||||||||||||||||||
Liability | 431,211 | 1,030,252 | 1,461,462 | 380,544 | 970,470 | 1,351,014 | |||||||||||||||||||
Total Reinsurance | 2,643,651 | 3,611,862 | 6,255,513 | 2,530,284 | 3,324,176 | 5,854,460 | |||||||||||||||||||
Total | $ | 4,860,916 | $ | 7,891,165 | $ | 12,752,081 | $ | 4,626,204 | $ | 7,654,565 | $ | 12,280,769 | |||||||||||||
• | Insurance and Reinsurance Professional Lines |
• | Insurance Credit and Political Risk |
2017 | 2016 | ||||||||||||||||||||||||
At December 31, | Case Reserves | IBNR | Total | Case Reserves | IBNR | Total | |||||||||||||||||||
Insurance segment: | |||||||||||||||||||||||||
Property and other | $ | 805,407 | $ | 623,966 | $ | 1,429,373 | $ | 436,737 | $ | 312,481 | $ | 749,218 | |||||||||||||
Marine | 326,225 | 306,889 | 633,114 | 287,383 | 152,230 | 439,613 | |||||||||||||||||||
Aviation | 99,135 | 51,480 | 150,615 | 36,701 | 24,917 | 61,618 | |||||||||||||||||||
Credit and political risk | (22,536 | ) | 120,287 | 97,751 | (21,853 | ) | 74,665 | 52,812 | |||||||||||||||||
Professional lines | 672,262 | 1,876,326 | 2,548,588 | 668,587 | 1,963,307 | 2,631,894 | |||||||||||||||||||
Liability | 367,981 | 1,218,207 | 1,586,188 | 323,930 | 1,086,570 | 1,410,500 | |||||||||||||||||||
Discontinued lines - Novae | 457,991 | 260,744 | 718,735 | — | — | — | |||||||||||||||||||
Total Insurance | 2,706,465 | 4,457,899 | 7,164,364 | 1,731,485 | 3,614,170 | 5,345,655 | |||||||||||||||||||
Reinsurance segment: | |||||||||||||||||||||||||
Property and other | 781,205 | 828,336 | 1,609,542 | 461,071 | 379,403 | 840,474 | |||||||||||||||||||
Credit and surety | 132,305 | 250,296 | 382,601 | 128,840 | 223,109 | 351,949 | |||||||||||||||||||
Professional lines | 340,516 | 831,047 | 1,171,563 | 302,927 | 879,477 | 1,182,404 | |||||||||||||||||||
Motor | 649,706 | 499,178 | 1,148,883 | 462,843 | 413,101 | 875,945 | |||||||||||||||||||
Liability | 312,450 | 916,423 | 1,228,873 | 271,348 | 830,053 | 1,101,400 | |||||||||||||||||||
Discontinued lines - Novae | 215,012 | 76,715 | 291,727 | — | — | — | |||||||||||||||||||
Total Reinsurance | 2,431,194 | 3,401,995 | 5,833,189 | 1,627,029 | 2,725,143 | 4,352,172 | |||||||||||||||||||
Total | $ | 5,137,659 | $ | 7,859,894 | $ | 12,997,553 | $ | 3,358,514 | $ | 6,339,313 | $ | 9,697,827 | |||||||||||||
INSURANCE | |||||||||||||
Development pattern | Expected loss ratio | ||||||||||||
Property and other | 5% lower | Unchanged | 5% higher | ||||||||||
3 months shorter | $ | (80,379 | ) | $ | (70,217 | ) | $ | (59,881 | ) | ||||
Unchanged | (12,804 | ) | — | 12,805 | |||||||||
3 months longer | 57,932 | 73,149 | 88,361 | ||||||||||
Marine | 5% lower | Unchanged | 5% higher | ||||||||||
3 months shorter | $ | (43,094 | ) | $ | (46,809 | ) | $ | (33,678 | ) | ||||
Unchanged | (10,820 | ) | — | 10,825 | |||||||||
3 months longer | 15,156 | 27,021 | 38,892 | ||||||||||
Aviation | 5% lower | Unchanged | 5% higher | ||||||||||
3 months shorter | $ | (7,401 | ) | $ | (6,147 | ) | $ | (4,894 | ) | ||||
Unchanged | (1,560 | ) | — | 1,560 | |||||||||
3 months longer | 6,634 | 8,625 | 10,617 | ||||||||||
Credit and political risk | 10% lower | Unchanged | 10% higher | ||||||||||
3 months shorter | $ | (12,747 | ) | $ | (193 | ) | $ | 3,862 | |||||
Unchanged | (12,565 | ) | — | 4,065 | |||||||||
3 months longer | (12,388 | ) | 186 | 4,260 | |||||||||
Professional lines | 10% lower | Unchanged | 10% higher | ||||||||||
6 months shorter | $ | (388,752 | ) | $ | (108,463 | ) | $ | 171,829 | |||||
Unchanged | (291,965 | ) | — | 291,968 | |||||||||
6 months longer | (176,479 | ) | 129,385 | 435,238 | |||||||||
Liability | 10% lower | Unchanged | 10% higher | ||||||||||
6 months shorter | $ | (225,322 | ) | $ | (36,754 | ) | $ | 151,816 | |||||
Unchanged | (191,981 | ) | — | 191,983 | |||||||||
6 months longer | (148,320 | ) | 48,214 | 244,739 | |||||||||
REINSURANCE | |||||||||||||
Development pattern | Expected loss ratio | ||||||||||||
Property and other | 5% lower | Unchanged | 5% higher | ||||||||||
3 months shorter | $ | (112,511 | ) | $ | (48,913 | ) | $ | 16,103 | |||||
Unchanged | (68,507 | ) | — | 60,398 | |||||||||
3 months longer | (12,475 | ) | 53,585 | 119,690 | |||||||||
Credit and surety | 10% lower | Unchanged | 10% higher | ||||||||||
6 months shorter | $ | (36,316 | ) | $ | (22,032 | ) | $ | (7,748 | ) | ||||
Unchanged | (16,067 | ) | — | 15,963 | |||||||||
6 months longer | 26,629 | 45,346 | 63,893 | ||||||||||
Professional lines | 10% lower | Unchanged | 10% higher | ||||||||||
6 months shorter | $ | (115,985 | ) | $ | (44,243 | ) | $ | 32,974 | |||||
Unchanged | (66,832 | ) | — | 78,229 | |||||||||
6 months longer | (4,732 | ) | 63,176 | 141,754 | |||||||||
Motor | 10% lower | Unchanged | 10% higher | ||||||||||
6 months shorter | $ | (83,391 | ) | $ | (34,992 | ) | $ | 14,148 | |||||
Unchanged | (50,328 | ) | — | 51,278 | |||||||||
6 months longer | 37,369 | 90,785 | 144,452 | ||||||||||
Liability | 10% lower | Unchanged | 10% higher | ||||||||||
6 months shorter | $ | (192,395 | ) | $ | (61,865 | ) | $ | 82,787 | |||||
Unchanged | (118,772 | ) | — | 131,163 | |||||||||
6 months longer | (30,239 | ) | 90,135 | 208,151 | |||||||||
INSURANCE | |||||||||||||
Development Pattern | Expected Loss Ratio | ||||||||||||
Property and Other | 5% lower | Unchanged | 5% higher | ||||||||||
3 months shorter | $ | (105,725 | ) | $ | (86,949 | ) | $ | (68,174 | ) | ||||
Unchanged | (20,763 | ) | — | 20,763 | |||||||||
3 months longer | 75,016 | 98,063 | 121,110 | ||||||||||
Marine | 5% lower | Unchanged | 5% higher | ||||||||||
3 months shorter | $ | (47,465 | ) | $ | (36,396 | ) | $ | (25,327 | ) | ||||
Unchanged | (13,026 | ) | — | 13,026 | |||||||||
3 months longer | 22,632 | 37,675 | 52,718 | ||||||||||
Aviation | 5% lower | Unchanged | 5% higher | ||||||||||
3 months shorter | $ | (12,100 | ) | $ | (10,558 | ) | $ | (9,017 | ) | ||||
Unchanged | (2,069 | ) | — | 2,069 | |||||||||
3 months longer | 18,075 | 21,204 | 24,334 | ||||||||||
Credit and Political Risk | 10% lower | Unchanged | 10% higher | ||||||||||
3 months shorter | $ | (15,508 | ) | $ | (233 | ) | $ | 20,592 | |||||
Unchanged | (15,275 | ) | — | 20,825 | |||||||||
3 months longer | (14,994 | ) | 281 | 21,106 | |||||||||
Professional Lines | 10% lower | Unchanged | 10% higher | ||||||||||
6 months shorter | $ | (351,839 | ) | $ | (104,442 | ) | $ | 142,955 | |||||
Unchanged | (257,876 | ) | — | 257,876 | |||||||||
6 months longer | (150,203 | ) | 119,701 | 389,039 | |||||||||
Liability | 10% lower | Unchanged | 10% higher | ||||||||||
6 months shorter | $ | (206,450 | ) | $ | (40,958 | ) | $ | 124,534 | |||||
Unchanged | (169,651 | ) | — | 169,651 | |||||||||
6 months longer | (123,913 | ) | 50,891 | 225,695 | |||||||||
Discontinued Lines - Novae | 10% lower | Unchanged | 10% higher | ||||||||||
6 months shorter | $ | (9,543 | ) | $ | (5,767 | ) | $ | (1,990 | ) | ||||
Unchanged | (4,391 | ) | — | 4,391 | |||||||||
6 months longer | 1,174 | 6,140 | 11,105 | ||||||||||
REINSURANCE | |||||||||||||
Development Pattern | Expected Loss Ratio | ||||||||||||
Property and Other | 5% lower | Unchanged | 5% higher | ||||||||||
3 months shorter | $ | (95,467 | ) | $ | (45,006 | ) | $ | 5,876 | |||||
Unchanged | (54,829 | ) | — | 48,916 | |||||||||
3 months longer | (6,083 | ) | 42,575 | 96,383 | |||||||||
Credit and Surety | 10% lower | Unchanged | 10% higher | ||||||||||
6 months shorter | $ | (39,488 | ) | $ | (22,128 | ) | $ | (3,970 | ) | ||||
Unchanged | (18,665 | ) | — | 18,826 | |||||||||
6 months longer | 22,366 | 43,442 | 65,322 | ||||||||||
Professional Lines | 10% lower | Unchanged | 10% higher | ||||||||||
6 months shorter | $ | (128,175 | ) | $ | (39,644 | ) | $ | 60,758 | |||||
Unchanged | (84,653 | ) | — | 94,287 | |||||||||
6 months longer | (31,371 | ) | 55,093 | 144,532 | |||||||||
Motor | 10% lower | Unchanged | 10% higher | ||||||||||
6 months shorter | $ | (78,511 | ) | $ | (32,323 | ) | $ | 15,518 | |||||
Unchanged | (38,376 | ) | — | 44,515 | |||||||||
6 months longer | 34,048 | 76,953 | 127,304 | ||||||||||
Liability | 10% lower | Unchanged | 10% higher | ||||||||||
6 months shorter | $ | (129,725 | ) | $ | (29,471 | ) | $ | 80,342 | |||||
Unchanged | (99,584 | ) | — | 105,882 | |||||||||
6 months longer | (56,421 | ) | 39,389 | 144,179 | |||||||||
Discontinued Lines - Novae | |||||||||||||
6 months shorter | $ | (10,206 | ) | $ | (7,258 | ) | $ | (4,310 | ) | ||||
Unchanged | (3,557 | ) | — | 3,557 | |||||||||
6 months longer | 3,516 | 7,650 | 11,783 | ||||||||||
2017 | 2016 | ||||||||||||||||||||||||
At December 31, | Case Reserves | IBNR | Total | Case Reserves | IBNR | Total | |||||||||||||||||||
Insurance segment: | |||||||||||||||||||||||||
Property and other | $ | 193,662 | $ | 194,288 | $ | 387,950 | $ | 139,650 | $ | 30,058 | $ | 169,707 | |||||||||||||
Marine | 105,908 | 101,751 | 207,659 | 130,680 | 50,316 | 180,996 | |||||||||||||||||||
Aviation | 7,356 | 6,918 | 14,274 | 2,443 | 3,941 | 6,384 | |||||||||||||||||||
Credit and political risk | 1,963 | 13,115 | 15,078 | — | 154 | 154 | |||||||||||||||||||
Professional lines | 238,450 | 652,223 | 890,673 | 263,135 | 735,738 | 998,873 | |||||||||||||||||||
Liability | 208,965 | 712,054 | 921,019 | 187,357 | 649,858 | 837,215 | |||||||||||||||||||
Discontinued lines - Novae | 173,673 | 110,996 | 284,669 | — | — | — | |||||||||||||||||||
Total Insurance | 929,977 | 1,791,345 | 2,721,322 | 723,265 | 1,470,065 | 2,193,329 | |||||||||||||||||||
Reinsurance segment: | |||||||||||||||||||||||||
Property and other | 131,340 | 178,967 | 310,307 | 33,768 | 21,869 | 55,637 | |||||||||||||||||||
Credit and surety | 2,561 | 10,500 | 13,061 | 494 | 1,422 | 1,916 | |||||||||||||||||||
Professional lines | 1,930 | 35,892 | 37,822 | 243 | 8,110 | 8,353 | |||||||||||||||||||
Motor | 1,481 | 2,185 | 3,666 | — | — | — | |||||||||||||||||||
Liability | 8,314 | 58,378 | 66,692 | 1,821 | 15,053 | 16,874 | |||||||||||||||||||
Discontinued lines - Novae | 5,435 | 1,209 | 6,644 | — | — | — | |||||||||||||||||||
Total Reinsurance | 151,061 | 287,131 | 438,192 | 36,326 | 46,454 | 82,780 | |||||||||||||||||||
Total | $ | 1,081,038 | $ | 2,078,476 | $ | 3,159,514 | $ | 759,591 | $ | 1,516,519 | $ | 2,276,109 | |||||||||||||
2019 | 2018 | ||||||||||||||||||||||||
At December 31, | Case reserves | IBNR | Total | Case reserves | IBNR | Total | |||||||||||||||||||
Insurance segment: | |||||||||||||||||||||||||
Property and other | $ | 241,028 | $ | 117,165 | $ | 358,194 | $ | 268,834 | $ | 213,887 | $ | 482,720 | |||||||||||||
Marine | 70,927 | 93,078 | 164,005 | 74,440 | 112,724 | 187,164 | |||||||||||||||||||
Aviation | 34,298 | 1,796 | 36,094 | 8,123 | 6,187 | 14,310 | |||||||||||||||||||
Credit and political risk | 9,730 | 24,885 | 34,615 | (313 | ) | 24,848 | 24,536 | ||||||||||||||||||
Professional lines | 318,850 | 786,834 | 1,105,684 | 251,817 | 753,499 | 1,005,316 | |||||||||||||||||||
Liability | 215,203 | 893,178 | 1,108,381 | 188,314 | 789,892 | 978,206 | |||||||||||||||||||
Total Insurance | 890,036 | 1,916,936 | 2,806,973 | 791,215 | 1,901,037 | 2,692,252 | |||||||||||||||||||
Reinsurance segment: | |||||||||||||||||||||||||
Property and other | 286,994 | 161,891 | 448,885 | 238,029 | 197,642 | 435,671 | |||||||||||||||||||
Credit and surety | 18,490 | 45,985 | 64,475 | 9,609 | 26,570 | 36,180 | |||||||||||||||||||
Professional lines | 23,968 | 111,537 | 135,505 | 10,066 | 71,542 | 81,608 | |||||||||||||||||||
Motor | 99,730 | 109,765 | 209,495 | 48,525 | 80,051 | 128,575 | |||||||||||||||||||
Liability | 39,722 | 172,701 | 212,423 | 20,838 | 106,545 | 127,383 | |||||||||||||||||||
Total Reinsurance | 468,904 | 601,879 | 1,070,783 | 327,067 | 482,350 | 809,417 | |||||||||||||||||||
Total | $ | 1,358,940 | $ | 2,518,815 | $ | 3,877,756 | $ | 1,118,282 | $ | 2,383,387 | $ | 3,501,669 | |||||||||||||
Year ended December 31, | 2017 | 2016 | 2015 | ||||||||||
Catastrophe | $ | 16,344 | $ | 4,418 | $ | 7,400 | |||||||
Property | 248,580 | 173,380 | 180,941 | ||||||||||
Professional lines | 214,184 | 211,567 | 201,595 | ||||||||||
Credit and surety | 223,184 | 188,365 | 202,609 | ||||||||||
Motor | 318,494 | 239,056 | 222,091 | ||||||||||
Liability | 263,790 | 272,390 | 182,246 | ||||||||||
Agriculture | 202,234 | 141,994 | 119,695 | ||||||||||
Engineering | 67,221 | 60,080 | 62,483 | ||||||||||
Other | 51,211 | 56,283 | 12,945 | ||||||||||
Total estimated premiums | $ | 1,605,242 | $ | 1,347,533 | $ | 1,192,005 | |||||||
Gross premiums written (reinsurance segment) | $ | 2,428,436 | $ | 2,249,966 | $ | 2,020,649 | |||||||
As a % of total gross premiums written | 66 | % | 60 | % | 59 | % | |||||||
Year ended December 31, | 2019 | 2018 | 2017 | ||||||||||
Catastrophe | $ | 17,149 | $ | 12,944 | $ | 16,344 | |||||||
Property | 184,552 | 237,527 | 248,580 | ||||||||||
Professional lines | 159,234 | 174,126 | 214,184 | ||||||||||
Credit and surety | 162,948 | 221,260 | 223,184 | ||||||||||
Motor | 194,871 | 361,471 | 318,494 | ||||||||||
Liability | 251,515 | 246,554 | 263,790 | ||||||||||
Agriculture | 194,379 | 205,116 | 202,234 | ||||||||||
Engineering | 51,052 | 48,692 | 67,221 | ||||||||||
Accident and health | 335,538 | 284,675 | 189,567 | ||||||||||
Other | 22,697 | 11,360 | 51,211 | ||||||||||
Total estimated premiums | $ | 1,573,935 | $ | 1,803,725 | $ | 1,794,809 | |||||||
Gross premiums written (reinsurance segment) | $ | 3,222,927 | $ | 3,112,473 | $ | 2,741,355 | |||||||
As a % of total gross premiums written | 49 | % | 58 | % | 65 | % | |||||||
At December 31, | 2017 | 2016 | |||
Fair value of collateral | 100% | 100% | |||
Discount Margin | 0.1% - 16.6% | 0.4% - 16.4% | |||
At December 31, | 2017 | 2016 | |||
Default rates | 3.8% | 4.0% | |||
Loss severity rate | 35.0% | 35.0% - 53.5% | |||
Collateral spreads | 3.0% | 3.0% - 3.6% | |||
Estimated maturity dates | 7 years | 2 - 6 years | |||
At December 31, | 2019 | 2018 | |||
Default rates | 3.5% | 3.0% | |||
Loss severity rate | 35.0% | 35.0% | |||
Collateral spreads | 3.0% | 3.0% | |||
Estimated maturity dates | 7 years | 7 years | |||
At December 31, | 2017 | 2016 | |||
Discount rate | 6.0% - 8.5% | 5.0% - 8.0% | |||
At December 31, | 2019 | 2018 | |||
Discount rate | - | 3.0% - 8.0% | |||
a. |
b. |
c. |
d. | the historical and implied volatility of the fair value. |
ITEM 7A. | QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK |
Fair Value | Potential Adverse Change in Fair Value | ||||||||||||||||
Increase in interest rate by 100 basis points | Widening of credit spreads by 100 basis points | Total | |||||||||||||||
At December 31, 2017 | |||||||||||||||||
U.S. government and agency | $ | 1,712,469 | $ | (59,896 | ) | $ | — | $ | (59,896 | ) | |||||||
Non-U.S. government | 806,299 | (24,443 | ) | — | (24,443 | ) | |||||||||||
Agency RMBS | 2,395,152 | (102,736 | ) | — | (102,736 | ) | |||||||||||
Securities exposed to credit spreads: | |||||||||||||||||
Corporate debt | 5,297,866 | (168,711 | ) | (153,920 | ) | (322,631 | ) | ||||||||||
CMBS | 777,728 | (39,572 | ) | (42,817 | ) | (82,389 | ) | ||||||||||
Non agency RMBS | 46,831 | (378 | ) | (1,681 | ) | (2,059 | ) | ||||||||||
ABS | 1,436,281 | (9,632 | ) | (29,517 | ) | (39,149 | ) | ||||||||||
Municipals | 149,380 | (5,156 | ) | (5,830 | ) | (10,986 | ) | ||||||||||
$ | 12,622,006 | $ | (410,524 | ) | $ | (233,765 | ) | $ | (644,289 | ) | |||||||
At December 31, 2016 | |||||||||||||||||
U.S. government and agency | $ | 1,656,069 | $ | (74,786 | ) | $ | — | $ | (74,786 | ) | |||||||
Non-U.S. government | 565,834 | (16,705 | ) | — | (16,705 | ) | |||||||||||
Agency RMBS | 2,465,135 | (123,928 | ) | — | (123,928 | ) | |||||||||||
Securities exposed to credit spreads: | |||||||||||||||||
Corporate debt | 4,600,743 | (153,947 | ) | (166,352 | ) | (320,299 | ) | ||||||||||
CMBS | 666,237 | (18,502 | ) | (19,794 | ) | (38,296 | ) | ||||||||||
Non agency RMBS | 56,921 | (254 | ) | (1,801 | ) | (2,055 | ) | ||||||||||
ABS | 1,222,214 | (6,826 | ) | (20,659 | ) | (27,485 | ) | ||||||||||
Municipals | 163,961 | (5,738 | ) | (9,033 | ) | (14,771 | ) | ||||||||||
$ | 11,397,114 | $ | (400,686 | ) | $ | (217,639 | ) | $ | (618,325 | ) | |||||||
Fair value | Potential adverse change in fair value | ||||||||||||||||
Increase in interest rate by 100 basis points | Widening of credit spreads by 100 basis points | Total | |||||||||||||||
At December 31, 2019 | |||||||||||||||||
U.S. government and agency | $ | 2,112,881 | $ | (78,364 | ) | $ | — | $ | (78,364 | ) | |||||||
Non-U.S. government | 576,592 | (20,430 | ) | — | (20,430 | ) | |||||||||||
Agency RMBS | 1,592,584 | (54,850 | ) | — | (54,850 | ) | |||||||||||
Securities exposed to credit spreads: | |||||||||||||||||
Corporate debt | 4,930,254 | (154,282 | ) | (162,741 | ) | (317,023 | ) | ||||||||||
CMBS | 1,365,052 | (69,922 | ) | (74,549 | ) | (144,471 | ) | ||||||||||
Non agency RMBS | 84,922 | (1,766 | ) | (3,205 | ) | (4,971 | ) | ||||||||||
ABS | 1,598,693 | (10,951 | ) | (47,745 | ) | (58,696 | ) | ||||||||||
Municipals | 207,227 | (9,045 | ) | (9,399 | ) | (18,444 | ) | ||||||||||
$ | 12,468,205 | $ | (399,610 | ) | $ | (297,639 | ) | $ | (697,249 | ) | |||||||
At December 31, 2018 | |||||||||||||||||
U.S. government and agency | $ | 1,515,697 | $ | (36,818 | ) | $ | — | $ | (36,818 | ) | |||||||
Non-U.S. government | 493,016 | (17,219 | ) | — | (17,219 | ) | |||||||||||
Agency RMBS | 1,643,308 | (63,612 | ) | — | (63,612 | ) | |||||||||||
Securities exposed to credit spreads: | |||||||||||||||||
Corporate debt | 4,876,921 | (149,896 | ) | (167,165 | ) | (317,061 | ) | ||||||||||
CMBS | 1,092,530 | (51,005 | ) | (54,608 | ) | (105,613 | ) | ||||||||||
Non agency RMBS | 40,687 | (315 | ) | (1,321 | ) | (1,636 | ) | ||||||||||
ABS | 1,637,603 | (10,966 | ) | (54,226 | ) | (65,192 | ) | ||||||||||
Municipals | 135,585 | (4,838 | ) | (5,316 | ) | (10,154 | ) | ||||||||||
$ | 11,435,347 | $ | (334,669 | ) | $ | (282,636 | ) | $ | (617,305 | ) | |||||||
AUD | NZD | CAD | EUR | GBP | JPY | Other | Total | ||||||||||||||||||||||||||
At December 31, 2017 | |||||||||||||||||||||||||||||||||
Net managed assets (liabilities), excluding derivatives | $ | 31,278 | $ | (8,923 | ) | $ | 118,972 | $ | (258,664 | ) | $ | 166,871 | $ | 15,044 | $ | 102,662 | $ | 167,240 | |||||||||||||||
Foreign currency derivatives, net | (5,468 | ) | 7,095 | (117,945 | ) | 279,481 | (82,488 | ) | 13,946 | (4,739 | ) | 89,882 | |||||||||||||||||||||
Net managed foreign currency exposure | 25,810 | (1,828 | ) | 1,027 | 20,817 | 84,383 | 28,990 | 97,923 | 257,122 | ||||||||||||||||||||||||
Other net foreign currency exposure | 1 | — | (20 | ) | 99 | (54 | ) | — | 80,669 | 80,695 | |||||||||||||||||||||||
Total net foreign currency exposure | $ | 25,811 | $ | (1,828 | ) | $ | 1,007 | $ | 20,916 | $ | 84,329 | $ | 28,990 | $ | 178,592 | $ | 337,817 | ||||||||||||||||
Net foreign currency exposure as a percentage of total shareholders’ equity | 0.5 | % | — | % | — | % | 0.4 | % | 1.6 | % | 0.5 | % | 3.3 | % | 6.3 | % | |||||||||||||||||
Pre-tax impact of net foreign currency exposure on shareholders’ equity given a hypothetical 10% rate movement(1) | $ | 2,581 | $ | (183 | ) | $ | 101 | $ | 2,092 | $ | 8,433 | $ | 2,899 | $ | 17,859 | $ | 33,782 | ||||||||||||||||
At December 31, 2016 | |||||||||||||||||||||||||||||||||
Net managed assets (liabilities), excluding derivatives | $ | 64,818 | $ | (6,924 | ) | $ | 77,554 | $ | (219,811 | ) | $ | (52,030 | ) | $ | (1,870 | ) | $ | 101,274 | $ | (36,989 | ) | ||||||||||||
Foreign currency derivatives, net | (66,368 | ) | 6,939 | (81,970 | ) | 210,111 | (30,225 | ) | (5,573 | ) | 14,306 | 47,220 | |||||||||||||||||||||
Net managed foreign currency exposure | (1,550 | ) | 15 | (4,416 | ) | (9,700 | ) | (82,255 | ) | (7,443 | ) | 115,580 | 10,231 | ||||||||||||||||||||
Other net foreign currency exposure | 1,939 | — | — | 22,558 | 675 | (46 | ) | 70,304 | 95,430 | ||||||||||||||||||||||||
Total net foreign currency exposure | $ | 389 | $ | 15 | $ | (4,416 | ) | $ | 12,858 | $ | (81,580 | ) | $ | (7,489 | ) | $ | 185,884 | $ | 105,661 | ||||||||||||||
Net foreign currency exposure as a percentage of total shareholders’ equity | — | % | — | % | (0.1 | %) | 0.2 | % | (1.3 | %) | (0.1 | %) | 3.0 | % | 1.7 | % | |||||||||||||||||
Pre-tax impact of net foreign currency exposure on shareholders’ equity given a hypothetical 10% rate movement(1) | $ | 39 | $ | 2 | $ | (442 | ) | $ | 1,286 | $ | (8,158 | ) | $ | (749 | ) | $ | 18,588 | $ | 10,566 | ||||||||||||||
AUD | NZD | CAD | EUR | GBP | JPY | Other | Total | ||||||||||||||||||||||||||
At December 31, 2019 | |||||||||||||||||||||||||||||||||
Net managed assets (liabilities), excluding derivatives | $ | 42,435 | $ | (2,247 | ) | $ | 157,512 | $ | (442,481 | ) | $ | (198,535 | ) | $ | (160,737 | ) | $ | 114,073 | $ | (489,980 | ) | ||||||||||||
Foreign currency derivatives, net | (23,881 | ) | 6,407 | (125,019 | ) | 356,501 | 144,866 | 204,918 | 4,366 | 568,158 | |||||||||||||||||||||||
Net managed foreign currency exposure | 18,554 | 4,160 | 32,493 | (85,980 | ) | (53,669 | ) | 44,181 | 118,439 | 78,178 | |||||||||||||||||||||||
Other net foreign currency exposure | 1 | — | 116 | (319 | ) | (316 | ) | — | 51,323 | 50,805 | |||||||||||||||||||||||
Total net foreign currency exposure | $ | 18,555 | $ | 4,160 | $ | 32,609 | $ | (86,299 | ) | $ | (53,985 | ) | $ | 44,181 | $ | 169,762 | $ | 128,983 | |||||||||||||||
Net foreign currency exposure as a percentage of total shareholders’ equity | 0.3 | % | 0.1 | % | 0.6 | % | (1.6 | %) | (1.0 | %) | 0.8 | % | 3.1 | % | 2.3 | % | |||||||||||||||||
Pre-tax impact of net foreign currency exposure on shareholders’ equity given a hypothetical 10% rate movement(1) | $ | 1,856 | $ | 416 | $ | 3,261 | $ | (8,630 | ) | $ | (5,399 | ) | $ | 4,418 | $ | 16,976 | $ | 12,898 | |||||||||||||||
At December 31, 2018 | |||||||||||||||||||||||||||||||||
Net managed assets (liabilities), excluding derivatives | $ | 56,992 | $ | (5,943 | ) | $ | 110,394 | $ | (329,761 | ) | $ | (166,396 | ) | $ | (8,944 | ) | $ | 64,523 | $ | (279,135 | ) | ||||||||||||
Foreign currency derivatives, net | (38,383 | ) | 3,020 | (128,266 | ) | 329,708 | 20,138 | (8,663 | ) | (939 | ) | 176,615 | |||||||||||||||||||||
Net managed foreign currency exposure | 18,609 | (2,923 | ) | (17,872 | ) | (53 | ) | (146,258 | ) | (17,607 | ) | 63,584 | (102,520 | ) | |||||||||||||||||||
Other net foreign currency exposure | 1 | — | 82 | (33 | ) | 379 | — | 52,924 | 53,353 | ||||||||||||||||||||||||
Total net foreign currency exposure | $ | 18,610 | $ | (2,923 | ) | $ | (17,790 | ) | $ | (86 | ) | $ | (145,879 | ) | $ | (17,607 | ) | $ | 116,508 | $ | (49,167 | ) | |||||||||||
Net foreign currency exposure as a percentage of total shareholders’ equity | 0.4 | % | (0.1 | %) | (0.4 | %) | — | % | (2.9 | %) | (0.4 | %) | 2.3 | % | (1.0 | %) | |||||||||||||||||
Pre-tax impact of net foreign currency exposure on shareholders’ equity given a hypothetical 10% rate movement(1) | $ | 1,861 | $ | (292 | ) | $ | (1,779 | ) | $ | (9 | ) | $ | (14,588 | ) | $ | (1,761 | ) | $ | 11,651 | $ | (4,917 | ) | |||||||||||
(1) | Assumes 10% change in underlying currencies relative to the U.S. dollar. |
ITEM 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA |
Index to Consolidated Financial Statements and | Page |
Report of Independent Registered Public Accounting Firm | |
Consolidated Balance Sheets at December 31, | |
Consolidated Statements of Operations for the years ended December 31, | |
Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, | |
Consolidated Statements of Changes in Shareholders' Equity for the years ended December 31, | |
Consolidated Statements of Cash Flows for the years ended December 31, | |
Notes to Consolidated Financial Statements | |
Note 1 – History | |
Note 2 – Basis of Presentation and Significant Accounting Policies | |
Note 3 – | |
Note 4 – | |
Note 5 – | |
Note 6 – | |
Note 7 – | |
Note 8 – | |
Note 9 – | |
Note 10 – | |
Note 11 – | |
Note 12 – | |
Note 13 – Earnings Per Common Share | |
Note 14 – Shareholders’ Equity | |
Note 15 – Retirement Plans | |
Note 16 – Share-Based Compensation | |
Note 17 – Related Party Transactions | |
Note 18 – Transaction and Reorganization Expenses | |
Note 19 – Income Taxes | |
Note 20 – Other Comprehensive Income (Loss) | |
Note 21 – Statutory Financial Information | |
Note 22 – Unaudited Condensed Quarterly Financial Data | |
Note 23 – Subsequent Events | |
– | We independently developed an estimate of the reserves for selected classes of business, compared our estimates to those booked by the Company, and evaluated the differences. |
– | We evaluated the Company’s methodologies against recognized actuarial practices for the remaining classes. We also evaluated the assumptions used by the Company using our industry knowledge and experience and other analytical procedures. |
– | We compared the results of the reserve study prepared by third party actuaries to management’s best estimate and evaluated the differences. |
/s/ Deloitte Ltd. |
Hamilton, Bermuda |
February |
2017 | 2016 | 2019 | 2018 | |||||||||||
(in thousands) | (in thousands) | |||||||||||||
Assets | ||||||||||||||
Investments: | ||||||||||||||
Fixed maturities, available for sale, at fair value (Amortized cost 2017: $12,611,219; 2016: $11,523,316) | $ | 12,622,006 | $ | 11,397,114 | ||||||||||
Equity securities, available for sale, at fair value (Cost 2017: $552,867; 2016: $597,366) | 635,511 | 638,744 | ||||||||||||
Mortgage loans, held for investment, at amortized cost and fair value | 325,062 | 349,969 | ||||||||||||
Fixed maturities, available for sale, at fair value (Amortized cost 2019: $12,263,240; 2018: $11,616,312) | $ | 12,468,205 | $ | 11,435,347 | ||||||||||
Equity securities, at fair value (Cost 2019: $398,956; 2018: $365,905) | 474,207 | 381,633 | ||||||||||||
Mortgage loans, held for investment, at fair value | 432,748 | 298,650 | ||||||||||||
Other investments, at fair value | 1,009,373 | 830,219 | 770,923 | 787,787 | ||||||||||
Equity method investments | 108,597 | 116,000 | 117,821 | 108,103 | ||||||||||
Short-term investments, at amortized cost and fair value | 83,661 | 127,461 | ||||||||||||
Short-term investments, at fair value | 38,471 | 144,040 | ||||||||||||
Total investments | 14,784,210 | 13,459,507 | 14,302,375 | 13,155,560 | ||||||||||
Cash and cash equivalents | 948,626 | 1,039,494 | 1,241,109 | 1,232,814 | ||||||||||
Restricted cash and cash equivalents | 415,160 | 202,013 | 335,348 | 597,206 | ||||||||||
Accrued interest receivable | 81,223 | 74,971 | 78,085 | 80,335 | ||||||||||
Insurance and reinsurance premium balances receivable | 3,012,419 | 2,313,512 | 3,071,390 | 3,007,296 | ||||||||||
Reinsurance recoverable on unpaid and paid losses | 3,338,840 | 2,334,922 | ||||||||||||
Reinsurance recoverable on unpaid losses and loss expenses | 3,877,756 | 3,501,669 | ||||||||||||
Reinsurance recoverable on paid losses and loss expenses | 327,795 | 280,233 | ||||||||||||
Deferred acquisition costs | 474,061 | 438,636 | 492,119 | 566,622 | ||||||||||
Prepaid reinsurance premiums | 809,274 | 556,344 | 1,101,889 | 1,013,573 | ||||||||||
Receivable for investments sold | 11,621 | 14,123 | 35,659 | 32,627 | ||||||||||
Goodwill | 102,003 | 47,148 | 102,003 | 102,003 | ||||||||||
Intangible assets | 257,987 | 37,901 | 230,550 | 241,568 | ||||||||||
Value of business acquired | 206,838 | — | 8,992 | 35,714 | ||||||||||
Operating lease right-of-use assets | 111,092 | — | ||||||||||||
Other assets | 317,915 | 295,120 | 287,892 | 285,346 | ||||||||||
Total assets | $ | 24,760,177 | $ | 20,813,691 | $ | 25,604,054 | $ | 24,132,566 | ||||||
Liabilities | ||||||||||||||
Reserve for losses and loss expenses | $ | 12,997,553 | $ | 9,697,827 | $ | 12,752,081 | $ | 12,280,769 | ||||||
Unearned premiums | 3,641,399 | 2,969,498 | 3,626,246 | 3,635,758 | ||||||||||
Insurance and reinsurance balances payable | 899,064 | 493,183 | 1,349,082 | 1,338,991 | ||||||||||
Senior notes and notes payable | 1,376,529 | 992,950 | ||||||||||||
Debt | 1,808,157 | 1,341,961 | ||||||||||||
Payable for investments purchased | 100,589 | 62,550 | 32,985 | 111,838 | ||||||||||
Operating lease liabilities | 115,584 | — | ||||||||||||
Other liabilities | 403,779 | 325,313 | 375,911 | 393,178 | ||||||||||
Total liabilities | 19,418,913 | 14,541,321 | 20,060,046 | 19,102,495 | ||||||||||
Commitments and Contingencies | ||||||||||||||
Shareholders' equity | ||||||||||||||
Preferred shares | 775,000 | 1,126,074 | 775,000 | 775,000 | ||||||||||
Common shares (shares issued 2017: 176,580; 2016: 176,580 shares outstanding 2017: 83,161; 2016: 86,441) | 2,206 | 2,206 | ||||||||||||
Common shares (shares issued 2019: 176,580; 2018: 176,580 shares outstanding 2019: 83,959; 2018: 83,586) | 2,206 | 2,206 | ||||||||||||
Additional paid-in capital | 2,299,166 | 2,299,857 | 2,317,212 | 2,308,583 | ||||||||||
Accumulated other comprehensive income (loss) | 92,382 | (121,841 | ) | 171,710 | (177,110 | ) | ||||||||
Retained earnings | 5,979,666 | 6,527,627 | 6,056,686 | 5,912,812 | ||||||||||
Treasury shares, at cost (2017: 93,419; 2016: 90,139) | (3,807,156 | ) | (3,561,553 | ) | ||||||||||
Treasury shares, at cost (2019: 92,621; 2018: 92,994) | (3,778,806 | ) | (3,791,420 | ) | ||||||||||
Total shareholders’ equity | 5,341,264 | 6,272,370 | 5,544,008 | 5,030,071 | ||||||||||
Total liabilities and shareholders’ equity | $ | 24,760,177 | $ | 20,813,691 | $ | 25,604,054 | $ | 24,132,566 |
2017 | 2016 | 2015 | 2019 | 2018 | 2017 | |||||||||||||||||
(in thousands, except for per share data) | (in thousands, except for per share data) | |||||||||||||||||||||
Revenues | ||||||||||||||||||||||
Net premiums earned | $ | 4,148,760 | $ | 3,705,625 | $ | 3,686,417 | $ | 4,587,178 | $ | 4,791,495 | $ | 4,148,760 | ||||||||||
Net investment income | 400,805 | 353,335 | 305,336 | 478,572 | 438,507 | 400,805 | ||||||||||||||||
Other insurance related income (losses) | (1,240 | ) | 7,222 | (2,953 | ) | 16,444 | 10,622 | (1,240 | ) | |||||||||||||
Bargain purchase gain | 15,044 | — | — | — | — | 15,044 | ||||||||||||||||
Termination fee received | — | — | 280,000 | |||||||||||||||||||
Net realized investment gains (losses): | ||||||||||||||||||||||
Net investment gains (losses): | ||||||||||||||||||||||
Other-than-temporary impairment ("OTTI") losses | (14,493 | ) | (26,210 | ) | (72,720 | ) | (6,984 | ) | (9,733 | ) | (14,493 | ) | ||||||||||
Other realized investment gains (losses) | 42,719 | (34,315 | ) | (65,771 | ) | |||||||||||||||||
Total net realized investment gains (losses) | 28,226 | (60,525 | ) | (138,491 | ) | |||||||||||||||||
Other realized and unrealized investment gains (losses) | 98,217 | (140,485 | ) | 42,719 | ||||||||||||||||||
Total net investment gains (losses) | 91,233 | (150,218 | ) | 28,226 | ||||||||||||||||||
Total revenues | 4,591,595 | 4,005,657 | 4,130,309 | 5,173,427 | 5,090,406 | 4,591,595 | ||||||||||||||||
Expenses | ||||||||||||||||||||||
Net losses and loss expenses | 3,287,772 | 2,204,197 | 2,176,199 | 3,044,798 | 3,190,287 | 3,287,772 | ||||||||||||||||
Acquisition costs | 823,591 | 746,876 | 718,112 | 1,024,582 | 968,835 | 823,591 | ||||||||||||||||
General and administrative expenses | 579,428 | 602,717 | 596,821 | 634,831 | 627,389 | 579,428 | ||||||||||||||||
Foreign exchange losses (gains) | 134,737 | (121,295 | ) | (102,312 | ) | (12,041 | ) | (29,165 | ) | 134,737 | ||||||||||||
Interest expense and financing costs | 54,811 | 51,360 | 50,963 | 68,107 | 67,432 | 54,811 | ||||||||||||||||
Transaction and reorganization expenses | 26,718 | — | 45,867 | 37,384 | 66,940 | 26,718 | ||||||||||||||||
Amortization of value of business acquired | 50,104 | — | — | 26,722 | 172,332 | 50,104 | ||||||||||||||||
Amortization of intangibles | 2,543 | — | — | |||||||||||||||||||
Amortization of intangible assets | 11,597 | 13,814 | 2,543 | |||||||||||||||||||
Total expenses | 4,959,704 | 3,483,855 | 3,485,650 | 4,835,980 | 5,077,864 | 4,959,704 | ||||||||||||||||
Income (loss) before income taxes and interest in income (loss) of equity method investments | (368,109 | ) | 521,802 | 644,659 | 337,447 | 12,542 | (368,109 | ) | ||||||||||||||
Income tax benefit (expense) | 7,542 | (6,340 | ) | (3,028 | ) | |||||||||||||||||
Interest in loss of equity method investments | (8,402 | ) | (2,094 | ) | — | |||||||||||||||||
Income tax (expense) benefit | (23,692 | ) | 29,486 | 7,542 | ||||||||||||||||||
Interest in income (loss) of equity method investments | 9,718 | 993 | (8,402 | ) | ||||||||||||||||||
Net income (loss) | (368,969 | ) | 513,368 | 641,631 | 323,473 | 43,021 | (368,969 | ) | ||||||||||||||
Preferred share dividends | 46,810 | 46,597 | 40,069 | 41,112 | 42,625 | 46,810 | ||||||||||||||||
Loss on repurchase of preferred shares | — | 1,309 | — | |||||||||||||||||||
Net income (loss) available to common shareholders | $ | (415,779 | ) | $ | 465,462 | $ | 601,562 | |||||||||||||||
Net income (loss) available (attributable) to common shareholders | $ | 282,361 | $ | 396 | $ | (415,779 | ) | |||||||||||||||
Per share data | ||||||||||||||||||||||
Net income (loss) per common share: | ||||||||||||||||||||||
Basic net income (loss) | $ | (4.94 | ) | $ | 5.13 | $ | 6.10 | |||||||||||||||
Diluted net income (loss) | $ | (4.94 | ) | $ | 5.08 | $ | 6.04 | |||||||||||||||
Weighted average common shares outstanding - basic | 84,108 | 90,772 | 98,609 | |||||||||||||||||||
Weighted average common shares outstanding - diluted | 84,108 | 91,547 | 99,629 | |||||||||||||||||||
Earnings (loss) per common share: | ||||||||||||||||||||||
Earnings (loss) per common share | $ | 3.37 | $ | — | $ | (4.94 | ) | |||||||||||||||
Earnings (loss) per diluted common share | $ | 3.34 | $ | — | $ | (4.94 | ) | |||||||||||||||
Weighted average common shares outstanding | 83,894 | 83,501 | 84,108 | |||||||||||||||||||
Weighted average diluted common shares outstanding | 84,473 | 84,007 | 84,108 |
2017 | 2016 | 2015 | 2019 | 2018 | 2017 | |||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||
Net income (loss) | $ | (368,969 | ) | $ | 513,368 | $ | 641,631 | $ | 323,473 | $ | 43,021 | $ | (368,969 | ) | ||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||||
Available for sale investments: | ||||||||||||||||||||||
Unrealized investment gains (losses) arising during the year | 205,419 | 5,072 | (266,384 | ) | ||||||||||||||||||
Adjustment for reclassification of net realized investment (gains) losses and OTTI losses recognized in net income | (33,134 | ) | 62,190 | 144,991 | ||||||||||||||||||
Unrealized investment gains (losses) arising during the year, net of reclassification adjustment | 172,285 | 67,262 | (121,393 | ) | ||||||||||||||||||
Unrealized gains (losses) arising during the year | 374,615 | (291,731 | ) | 205,419 | ||||||||||||||||||
Adjustment for reclassification of net realized (gains) losses and OTTI losses recognized in net income (loss) | (24,729 | ) | 100,902 | (33,134 | ) | |||||||||||||||||
Unrealized gains (losses) arising during the year, net of reclassification adjustment | 349,886 | (190,829 | ) | 172,285 | ||||||||||||||||||
Foreign currency translation adjustment | 41,938 | (638 | ) | (21,498 | ) | (1,066 | ) | (11,165 | ) | 41,938 | ||||||||||||
Total other comprehensive income (loss), net of tax | 214,223 | 66,624 | (142,891 | ) | 348,820 | (201,994 | ) | 214,223 | ||||||||||||||
Comprehensive income (loss) | $ | (154,746 | ) | $ | 579,992 | $ | 498,740 | $ | 672,293 | $ | (158,973 | ) | $ | (154,746 | ) |
2019 | 2018 | 2017 | |||||||||
(in thousands) | |||||||||||
Preferred shares | |||||||||||
Balance at beginning of year | $ | 775,000 | $ | 775,000 | $ | 1,126,074 | |||||
Shares repurchased | — | — | (351,074 | ) | |||||||
Balance at end of year | 775,000 | 775,000 | 775,000 | ||||||||
Common shares (par value) | |||||||||||
Balance at beginning and end of year | 2,206 | 2,206 | 2,206 | ||||||||
Additional paid-in capital | |||||||||||
Balance at beginning of year | 2,308,583 | 2,299,166 | 2,299,857 | ||||||||
Treasury shares reissued | (21,046 | ) | (24,088 | ) | (39,368 | ) | |||||
Share-based compensation expense | 29,675 | 33,505 | 38,677 | ||||||||
Balance at end of year | 2,317,212 | 2,308,583 | 2,299,166 | ||||||||
Accumulated other comprehensive income (loss) | |||||||||||
Balance at beginning of year | (177,110 | ) | 92,382 | (121,841 | ) | ||||||
Unrealized gains (losses) on available-for-sale investments, net of tax: | |||||||||||
Balance at beginning of year | (168,365 | ) | 89,962 | (82,323 | ) | ||||||
Cumulative effect of adoption of ASU No. 2018-02 | — | 2,106 | — | ||||||||
Cumulative effect of adoption of ASU No. 2016-01, net of taxes | — | (69,604 | ) | — | |||||||
Unrealized gains (losses) arising during the year, net of reclassification adjustment | 349,886 | (190,829 | ) | 172,285 | |||||||
Balance at end of year | 181,521 | (168,365 | ) | 89,962 | |||||||
Cumulative foreign currency translation adjustments, net of tax: | |||||||||||
Balance at beginning of year | (8,745 | ) | 2,420 | (39,518 | ) | ||||||
Foreign currency translation adjustment | (1,066 | ) | (11,165 | ) | 41,938 | ||||||
Balance at end of year | (9,811 | ) | (8,745 | ) | 2,420 | ||||||
Balance at end of year | 171,710 | (177,110 | ) | 92,382 | |||||||
Retained earnings | |||||||||||
Balance at beginning of year | 5,912,812 | 5,979,666 | 6,527,627 | ||||||||
Cumulative effect of adoption of ASU No. 2018-02 | — | (2,106 | ) | — | |||||||
Cumulative effect of adoption of ASU No. 2016-01, net of taxes | — | 69,604 | — | ||||||||
Net income (loss) | 323,473 | 43,021 | (368,969 | ) | |||||||
Preferred share dividends | (41,112 | ) | (42,625 | ) | (46,810 | ) | |||||
Common share dividends | (138,487 | ) | (134,748 | ) | (132,182 | ) | |||||
Balance at end of year | 6,056,686 | 5,912,812 | 5,979,666 | ||||||||
Treasury shares, at cost | |||||||||||
Balance at beginning of year | (3,791,420 | ) | (3,807,156 | ) | (3,561,553 | ) | |||||
Shares repurchased | (10,165 | ) | (10,080 | ) | (285,858 | ) | |||||
Shares reissued | 22,779 | 25,816 | 40,255 | ||||||||
Balance at end of year | (3,778,806 | ) | (3,791,420 | ) | (3,807,156 | ) | |||||
Total shareholders' equity | $ | 5,544,008 | $ | 5,030,071 | $ | 5,341,264 | |||||
2017 | 2016 | 2015 | |||||||||
(in thousands) | |||||||||||
Preferred shares | |||||||||||
Balance at beginning of year | $ | 1,126,074 | $ | 627,843 | $ | 627,843 | |||||
Shares issued | — | 550,000 | — | ||||||||
Shares repurchased | (351,074 | ) | (51,769 | ) | — | ||||||
Balance at end of year | 775,000 | 1,126,074 | 627,843 | ||||||||
Common shares (par value) | |||||||||||
Balance at beginning of year | 2,206 | 2,202 | 2,191 | ||||||||
Shares issued | — | 4 | 11 | ||||||||
Balance at end of year | 2,206 | 2,206 | 2,202 | ||||||||
Additional paid-in capital | |||||||||||
Balance at beginning of year | 2,299,857 | 2,241,388 | 2,285,016 | ||||||||
Common shares issued | — | 220 | 3,416 | ||||||||
Treasury shares reissued | (39,368 | ) | (19,303 | ) | (17,958 | ) | |||||
Settlement of accelerated share repurchase | — | 60,000 | (60,000 | ) | |||||||
Costs associated with issuance of preferred shares | — | (18,055 | ) | — | |||||||
Stock options exercised | — | — | 559 | ||||||||
Share-based compensation expense | 38,677 | 35,607 | 30,355 | ||||||||
Balance at end of year | 2,299,166 | 2,299,857 | 2,241,388 | ||||||||
Accumulated other comprehensive income (loss) | |||||||||||
Balance at beginning of year | (121,841 | ) | (188,465 | ) | (45,574 | ) | |||||
Unrealized gains (losses) on available for sale investments, net of tax: | |||||||||||
Balance at beginning of year | (82,323 | ) | (149,585 | ) | (28,192 | ) | |||||
Unrealized gains (losses) arising during the year, net of reclassification adjustment | 172,285 | 67,262 | (121,393 | ) | |||||||
Balance at end of year | 89,962 | (82,323 | ) | (149,585 | ) | ||||||
Cumulative foreign currency translation adjustments, net of tax: | |||||||||||
Balance at beginning of year | (39,518 | ) | (38,880 | ) | (17,382 | ) | |||||
Foreign currency translation adjustment | 41,938 | (638 | ) | (21,498 | ) | ||||||
Balance at end of year | 2,420 | (39,518 | ) | (38,880 | ) | ||||||
Balance at end of year | 92,382 | (121,841 | ) | (188,465 | ) | ||||||
Retained earnings | |||||||||||
Balance at beginning of year | 6,527,627 | 6,194,353 | 5,715,504 | ||||||||
Net income (loss) | (368,969 | ) | 513,368 | 641,631 | |||||||
Preferred share dividends | (46,810 | ) | (46,597 | ) | (40,069 | ) | |||||
Loss on repurchase of preferred shares | — | (1,309 | ) | — | |||||||
Common share dividends | (132,182 | ) | (132,188 | ) | (122,713 | ) | |||||
Balance at end of year | 5,979,666 | 6,527,627 | 6,194,353 | ||||||||
Treasury shares, at cost | |||||||||||
Balance at beginning of year | (3,561,553 | ) | (3,010,439 | ) | (2,763,859 | ) | |||||
Shares repurchased | (285,858 | ) | (571,805 | ) | (264,538 | ) | |||||
Treasury shares reissued | 40,255 | 20,691 | 17,958 | ||||||||
Balance at end of year | (3,807,156 | ) | (3,561,553 | ) | (3,010,439 | ) | |||||
Total shareholders' equity | $ | 5,341,264 | $ | 6,272,370 | $ | 5,866,882 | |||||
Per share data | |||||||||||
Cash dividends declared per common share | $ | 1.53 | $ | 1.43 | $ | 1.22 |
2017 | 2016 | 2015 | 2019 | 2018 | 2017 | |||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||
Net income (loss) | $ | (368,969 | ) | $ | 513,368 | $ | 641,631 | $ | 323,473 | $ | 43,021 | $ | (368,969 | ) | ||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||||||||||||
Net realized investment (gains) losses | (28,226 | ) | 60,525 | 138,491 | ||||||||||||||||||
Net investment (gains) losses | (91,233 | ) | 144,297 | (28,226 | ) | |||||||||||||||||
Net realized and unrealized gains on other investments | (72,763 | ) | (38,669 | ) | (20,148 | ) | (60,038 | ) | (45,153 | ) | (72,763 | ) | ||||||||||
Amortization of fixed maturities | 43,292 | 65,921 | 97,223 | 18,499 | 24,663 | 43,292 | ||||||||||||||||
Interest in loss of equity method investments | 8,402 | 2,094 | — | |||||||||||||||||||
Interest in (income) loss of equity method investments | (9,718 | ) | 495 | 8,402 | ||||||||||||||||||
Amortization of value of business acquired | 26,722 | 172,332 | 50,104 | |||||||||||||||||||
Other amortization and depreciation | 81,471 | 24,573 | 26,341 | 75,229 | 9,795 | 31,367 | ||||||||||||||||
Share-based compensation expense, net of cash payments | 12,667 | 52,211 | 43,052 | 32,491 | 34,346 | 12,667 | ||||||||||||||||
Non-cash foreign exchange losses | 24,149 | — | — | |||||||||||||||||||
Non-cash foreign exchange losses (gains) | (6,043 | ) | — | 24,149 | ||||||||||||||||||
Bargain purchase gain | (15,044 | ) | — | — | — | — | (15,044 | ) | ||||||||||||||
Changes in: | ||||||||||||||||||||||
Accrued interest receivable | (4,353 | ) | (885 | ) | 8,908 | 2,140 | (3,184 | ) | (4,353 | ) | ||||||||||||
Reinsurance recoverable balances | (131,160 | ) | (176,532 | ) | (214,992 | ) | ||||||||||||||||
Reinsurance recoverable on unpaid and paid losses and loss expenses | (412,076 | ) | (766,690 | ) | (131,160 | ) | ||||||||||||||||
Deferred acquisition costs | (35,076 | ) | 33,212 | (4,744 | ) | 74,331 | (98,329 | ) | (35,076 | ) | ||||||||||||
Prepaid reinsurance premiums | (56,377 | ) | (158,809 | ) | (46,955 | ) | (88,789 | ) | (212,654 | ) | (56,377 | ) | ||||||||||
Reserve for loss and loss expenses | 1,004,578 | 54,476 | 151,011 | |||||||||||||||||||
Reserve for losses and loss expenses | 467,428 | 442,839 | 1,004,578 | |||||||||||||||||||
Unearned premiums | (56,603 | ) | 198,938 | 29,841 | (7,958 | ) | 29,760 | (56,603 | ) | |||||||||||||
Insurance and reinsurance balances, net | (81,831 | ) | (209,895 | ) | (74,578 | ) | (51,075 | ) | 208,783 | (81,831 | ) | |||||||||||
Other items | (64,928 | ) | (13,804 | ) | 16,119 | (94,379 | ) | 26,452 | (64,928 | ) | ||||||||||||
Net cash provided by operating activities | 259,229 | 406,724 | 791,200 | 199,004 | 10,773 | 259,229 | ||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||
Purchases of: | ||||||||||||||||||||||
Fixed maturities | (8,714,990 | ) | (9,176,728 | ) | (11,011,979 | ) | (9,994,025 | ) | (8,464,140 | ) | (8,714,990 | ) | ||||||||||
Equity securities | (106,136 | ) | (302,554 | ) | (356,617 | ) | (58,022 | ) | (73,107 | ) | (106,136 | ) | ||||||||||
Mortgage loans | (31,077 | ) | (148,450 | ) | (206,191 | ) | (194,020 | ) | (106,171 | ) | (31,077 | ) | ||||||||||
Other investments | (153,150 | ) | (190,370 | ) | (83,561 | ) | (218,178 | ) | (180,126 | ) | (153,150 | ) | ||||||||||
Equity method investments | (1,000 | ) | (107,913 | ) | — | — | — | (1,000 | ) | |||||||||||||
Short-term investments | (41,609 | ) | (190,747 | ) | (80,069 | ) | (179,230 | ) | (305,670 | ) | (41,609 | ) | ||||||||||
Proceeds from the sale of: | ||||||||||||||||||||||
Fixed maturities | 7,004,973 | 7,905,316 | 9,432,226 | 8,018,658 | 7,586,536 | 7,004,973 | ||||||||||||||||
Equity securities | 448,058 | 305,642 | 275,357 | 36,016 | 246,196 | 448,058 | ||||||||||||||||
Other investments | 260,943 | 215,578 | 252,418 | 249,129 | 361,030 | 260,943 | ||||||||||||||||
Short-term investments | 49,280 | 54,165 | 125,311 | 266,057 | 178,983 | 49,280 | ||||||||||||||||
Proceeds from redemption of fixed maturities | 2,009,982 | 1,492,588 | 1,407,806 | 1,282,796 | 1,241,214 | 2,009,982 | ||||||||||||||||
Proceeds from redemption of short-term investments | 119,427 | 36,546 | 23,687 | 19,366 | 45,831 | 119,427 | ||||||||||||||||
Proceeds from the repayment of mortgage loans | 56,435 | 5,040 | — | 60,244 | 133,081 | 56,435 | ||||||||||||||||
Purchase of other assets | (42,685 | ) | (27,149 | ) | (33,683 | ) | (63,106 | ) | (25,103 | ) | (42,685 | ) | ||||||||||
Change in restricted cash and cash equivalents | (213,147 | ) | (15,395 | ) | 29,598 | |||||||||||||||||
Purchase of subsidiaries, net | (466,941 | ) | — | — | — | — | (466,941 | ) | ||||||||||||||
Net cash provided by (used in) investing activities | 178,363 | (144,431 | ) | (225,697 | ) | (774,315 | ) | 638,554 | 391,510 | |||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||
Net proceeds from issuance of debt | 346,362 | — | — | 717,509 | — | 346,362 | ||||||||||||||||
Repayment of notes payable | (67,242 | ) | — | — | (250,000 | ) | — | (67,242 | ) | |||||||||||||
Net proceeds from issuance of preferred shares | — | 531,945 | — | |||||||||||||||||||
Repurchase of common shares - open market | (261,180 | ) | (495,426 | ) | (314,204 | ) | — | — | (261,180 | ) | ||||||||||||
Taxes paid on withholding shares | (24,678 | ) | (14,329 | ) | (18,048 | ) | (10,165 | ) | (10,080 | ) | (24,678 | ) | ||||||||||
Dividends paid - common shares | (135,032 | ) | (132,323 | ) | (118,652 | ) | (137,209 | ) | (133,502 | ) | (135,032 | ) | ||||||||||
Repurchase of preferred shares | (351,074 | ) | (51,769 | ) | — | — | — | (351,074 | ) | |||||||||||||
Dividends paid - preferred shares | (52,844 | ) | (39,909 | ) | (40,088 | ) | (42,625 | ) | (42,625 | ) | (52,844 | ) | ||||||||||
Proceeds from issuance of common shares | — | 224 | 3,986 | |||||||||||||||||||
Net cash used in financing activities | (545,688 | ) | (201,587 | ) | (487,006 | ) | ||||||||||||||||
Net cash provided by (used in) financing activities | 277,510 | (186,207 | ) | (545,688 | ) | |||||||||||||||||
Effect of exchange rate changes on foreign currency cash, cash equivalents and restricted cash | 44,238 | 3,114 | 17,228 |
Effect of exchange rate changes on foreign currency cash and cash equivalents | 17,228 | (9,345 | ) | (12,194 | ) | ||||||
Increase (decrease) in cash and cash equivalents | (90,868 | ) | 51,361 | 66,303 | |||||||
Cash and cash equivalents - beginning of year | 1,039,494 | 988,133 | 921,830 | ||||||||
Cash and cash equivalents - end of year | $ | 948,626 | $ | 1,039,494 | $ | 988,133 | |||||
Supplemental disclosures of cash flow information: | |||||||||||
Income taxes paid | $ | — | $ | 12,041 | $ | 12,661 | |||||
Interest paid | $ | 49,945 | $ | 48,875 | $ | 48,875 |
Increase (decrease) in cash, cash equivalents and restricted cash | (253,563 | ) | 466,234 | 122,279 | |||||||
Cash, cash equivalents and restricted cash - beginning of year | 1,830,020 | 1,363,786 | 1,241,507 | ||||||||
Cash, cash equivalents and restricted cash - end of year | $ | 1,576,457 | $ | 1,830,020 | $ | 1,363,786 | |||||
Supplemental disclosures of cash flow information: | |||||||||||
Income taxes paid | $ | 39,949 | $ | 15,698 | $ | — | |||||
Interest paid | $ | 59,563 | $ | 64,822 | $ | 49,945 |
19. | INCOME TAXES (CONTINUED) |
1. | HISTORY |
2. | BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES |
2. | BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
a) | Investments |
a. | the duration and the extent of the decline; |
b. | the financial condition, near-term and long-term prospects of the issuer of the security; |
c. | the reason for the decline (e.g. credit spread widening, credit event, foreign exchange rate movements); |
d. | the historical and implied future volatility of the fair value; and |
e. | the collateral structure and credit support of the security, if applicable. |
2. | BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
2. | BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
b) | Cash and |
c) | Premiums and Acquisition Costs |
2. | BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
d) | Losses and Loss Expenses |
e) | Reinsurance |
2. | BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
f) | Foreign Exchange |
g) | Share-based Compensation |
h) | Derivative Instruments |
2. | BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
i) | Goodwill and Intangible Assets |
j) | Income Taxes |
2. | BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
k) | Treasury Shares |
l) | New Accounting Standards Adopted in |
1. | whether any expired or existing contracts are or contain leases; |
2. |
3. | initial direct costs for any existing leases. |
2. | BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
m) | Recently Issued Accounting Standards Not Yet Adopted |
3. |
Total purchase price paid | $ | 616,926 | ||||
Assets | ||||||
Investments | 1,733,611 | |||||
Cash and cash equivalents | 191,337 | |||||
Insurance and reinsurance premium balances receivable | 472,180 | |||||
Reinsurance recoverable on unpaid and paid losses | 787,907 | |||||
Prepaid reinsurance premiums | 197,907 | |||||
Other assets | 42,696 | |||||
Total assets acquired | $ | 3,425,638 | ||||
Liabilities | ||||||
Reserve for losses and loss expenses | 2,125,634 | |||||
Unearned premiums | 717,442 | |||||
Insurance and reinsurance balances payable | 273,405 | |||||
Notes payable | 101,846 | |||||
Other liabilities | 124,585 | |||||
Total liabilities assumed | $ | 3,342,912 | ||||
Fair value of identifiable intangible assets: | ||||||
Value of business acquired - definite lived intangible asset | 256,942 | |||||
Identifiable definite lived intangible assets | 128,463 | |||||
Identifiable indefinite lived intangible assets | 94,748 | |||||
Excess purchase price over fair value of net assets acquired assigned to goodwill | $ | 54,047 | ||||
Economic Useful Life | ||||||||
Indefinite lived intangible assets | ||||||||
Lloyd's syndicate capacity | $ | 94,748 | Indefinite | |||||
Finite lived other intangible assets | ||||||||
Distribution networks: | ||||||||
Coverholders | 63,565 | 12 years | ||||||
Large brokers | 46,641 | 15 years | ||||||
Small & Mid-sized Enterprise ("SME") brokers | 14,126 | 12 years | ||||||
Managing General Agent ("MGA") Contract | 4,131 | 7 years | ||||||
Total | 128,463 | |||||||
Identifiable intangible assets at October 2, 2017 | $ | 223,211 | ||||||
From acquisition date to | ||||||
(in thousands) | December 31, 2017 | |||||
Net premiums written | $ | 140,635 | ||||
Total revenue | 191,929 | |||||
Total expenses | (197,895 | ) | ||||
Net income | $ | (5,966 | ) | |||
Years ended December 31, | ||||||||||
2017 | 2016 | |||||||||
(in thousands) | (unaudited) | (unaudited) | ||||||||
Net premiums earned | $ | 4,728,700 | $ | 4,560,800 | ||||||
Net income | $ | (468,400 | ) | $ | 532,500 | |||||
SEGMENT INFORMATION |
At and year ended December 31, 2019 | Insurance | Reinsurance | Total | ||||||||||
Gross premiums written | $ | 3,675,931 | $ | 3,222,927 | $ | 6,898,858 | |||||||
Net premiums written | 2,209,155 | 2,280,460 | 4,489,615 | ||||||||||
Net premiums earned | 2,190,084 | 2,397,094 | 4,587,178 | ||||||||||
Other insurance related income | 2,858 | 13,586 | 16,444 | ||||||||||
Net losses and loss expenses | (1,278,679 | ) | (1,766,119 | ) | (3,044,798 | ) | |||||||
Acquisition costs | (468,281 | ) | (556,301 | ) | (1,024,582 | ) | |||||||
General and administrative expenses | (401,963 | ) | (103,772 | ) | (505,735 | ) | |||||||
Underwriting income (loss) | $ | 44,019 | $ | (15,512 | ) | $ | 28,507 | ||||||
Net investment income | 478,572 | ||||||||||||
Net investment gains | 91,233 | ||||||||||||
Corporate expenses | (129,096 | ) | |||||||||||
Foreign exchange gains | 12,041 | ||||||||||||
Interest expense and financing costs | (68,107 | ) | |||||||||||
Reorganization expenses | (37,384 | ) | |||||||||||
Amortization of value of business acquired | (26,722 | ) | |||||||||||
Amortization of intangible assets | (11,597 | ) | |||||||||||
Income before income taxes and interest in income (loss) of equity method investments | $ | 337,447 | |||||||||||
Net losses and loss expenses ratio | 58.4 | % | 73.7 | % | 66.4 | % | |||||||
Acquisition cost ratio | 21.4 | % | 23.2 | % | 22.3 | % | |||||||
General and administrative expense ratio | 18.3 | % | 4.3 | % | 13.9 | % | |||||||
Combined ratio | 98.1 | % | 101.2 | % | 102.6 | % | |||||||
Goodwill and intangible assets | $ | 332,553 | $ | — | $ | 332,553 | |||||||
SEGMENT INFORMATION (CONTINUED) |
At and year ended December 31, 2017 | Insurance | Reinsurance | Total | ||||||||||
Gross premiums written | $ | 3,127,837 | $ | 2,428,436 | $ | 5,556,273 | |||||||
Net premiums written | 2,087,734 | 1,939,409 | 4,027,143 | ||||||||||
Net premiums earned | 2,106,363 | 2,042,397 | 4,148,760 | ||||||||||
Other insurance related income (losses) | 3,458 | (4,698 | ) | (1,240 | ) | ||||||||
Net losses and loss expenses | (1,661,032 | ) | (1,626,740 | ) | (3,287,772 | ) | |||||||
Acquisition costs | (332,749 | ) | (490,842 | ) | (823,591 | ) | |||||||
General and administrative expenses | (344,012 | ) | (105,471 | ) | (449,483 | ) | |||||||
Underwriting loss | $ | (227,972 | ) | $ | (185,354 | ) | (413,326 | ) | |||||
Corporate expenses | (129,945 | ) | |||||||||||
Net investment income | 400,805 | ||||||||||||
Net realized investment losses | 28,226 | ||||||||||||
Foreign exchange losses | (134,737 | ) | |||||||||||
Interest expense and financing costs | (54,811 | ) | |||||||||||
Bargain purchase gain | 15,044 | ||||||||||||
Transaction and reorganization expenses | (26,718 | ) | |||||||||||
Amortization of value of business acquired | (50,104 | ) | |||||||||||
Amortization of intangibles | (2,543 | ) | |||||||||||
Loss before income taxes and interest in income (loss) of equity method investments | $ | (368,109 | ) | ||||||||||
Net loss and loss expense ratio | 78.9 | % | 79.6 | % | 79.2 | % | |||||||
Acquisition cost ratio | 15.8 | % | 24.0 | % | 19.9 | % | |||||||
General and administrative expense ratio | 16.3 | % | 5.2 | % | 14.0 | % | |||||||
Combined ratio | 111.0 | % | 108.8 | % | 113.1 | % | |||||||
Goodwill and intangible assets | $ | 566,828 | $ | — | $ | 566,828 | |||||||
At and year ended December 31, 2018 | Insurance | Reinsurance | Total | ||||||||||
Gross premiums written | $ | 3,797,592 | $ | 3,112,473 | $ | 6,910,065 | |||||||
Net premiums written | 2,324,747 | 2,334,215 | 4,658,962 | ||||||||||
Net premiums earned | 2,362,606 | 2,428,889 | 4,791,495 | ||||||||||
Other insurance related income | 3,460 | 7,162 | 10,622 | ||||||||||
Net losses and loss expenses | (1,494,323 | ) | (1,695,964 | ) | (3,190,287 | ) | |||||||
Acquisition costs | (399,193 | ) | (569,642 | ) | (968,835 | ) | |||||||
General and administrative expenses | (395,252 | ) | (123,916 | ) | (519,168 | ) | |||||||
Underwriting income | $ | 77,298 | $ | 46,529 | $ | 123,827 | |||||||
Net investment income | 438,507 | ||||||||||||
Net investment losses | (150,218 | ) | |||||||||||
Corporate expenses | (108,221 | ) | |||||||||||
Foreign exchange gains | 29,165 | ||||||||||||
Interest expense and financing costs | (67,432 | ) | |||||||||||
Reorganization expenses | (66,940 | ) | |||||||||||
Amortization of value of business acquired | (172,332 | ) | |||||||||||
Amortization of intangible assets | (13,814 | ) | |||||||||||
Income before income taxes and interest in income (loss) of equity method investments | $ | 12,542 | |||||||||||
Net losses and loss expenses ratio | 63.2 | % | 69.8 | % | 66.6 | % | |||||||
Acquisition cost ratio | 16.9 | % | 23.5 | % | 20.2 | % | |||||||
General and administrative expense ratio | 16.8 | % | 5.1 | % | 13.1 | % | |||||||
Combined ratio | 96.9 | % | 98.4 | % | 99.9 | % | |||||||
Goodwill and intangible assets | $ | 343,571 | $ | — | $ | 343,571 | |||||||
SEGMENT INFORMATION (CONTINUED) |
At and year ended December 31, 2017 | Insurance | Reinsurance | Total | ||||||||||
Gross premiums written | $ | 2,814,918 | $ | 2,741,355 | $ | 5,556,273 | |||||||
Net premiums written | 1,775,825 | 2,251,318 | 4,027,143 | ||||||||||
Net premiums earned | 1,816,438 | 2,332,322 | 4,148,760 | ||||||||||
Other insurance related income (losses) | 2,944 | (4,184 | ) | (1,240 | ) | ||||||||
Net losses and loss expenses | (1,465,427 | ) | (1,822,345 | ) | (3,287,772 | ) | |||||||
Acquisition costs | (270,229 | ) | (553,362 | ) | (823,591 | ) | |||||||
General and administrative expenses | (325,368 | ) | (124,115 | ) | (449,483 | ) | |||||||
Underwriting loss | $ | (241,642 | ) | $ | (171,684 | ) | $ | (413,326 | ) | ||||
Net investment income | 400,805 | ||||||||||||
Net investment gains | 28,226 | ||||||||||||
Corporate expenses | (129,945 | ) | |||||||||||
Foreign exchange losses | (134,737 | ) | |||||||||||
Interest expense and financing costs | (54,811 | ) | |||||||||||
Bargain purchase gain | 15,044 | ||||||||||||
Transaction and reorganization expenses | (26,718 | ) | |||||||||||
Amortization of value of business acquired | (50,104 | ) | |||||||||||
Amortization of intangible assets | (2,543 | ) | |||||||||||
Loss before income taxes and interest in income (loss) of equity method investments | $ | (368,109 | ) | ||||||||||
Net losses and loss expenses ratio | 80.7 | % | 78.1 | % | 79.2 | % | |||||||
Acquisition cost ratio | 14.9 | % | 23.7 | % | 19.9 | % | |||||||
General and administrative expense ratio | 17.9 | % | 5.3 | % | 14.0 | % | |||||||
Combined ratio | 113.5 | % | 107.1 | % | 113.1 | % | |||||||
Goodwill and intangible assets | $ | 359,990 | $ | — | $ | 359,990 | |||||||
At and year ended December 31, 2016 | Insurance | Reinsurance | Total | ||||||||||
Gross premiums written | $ | 2,720,242 | $ | 2,249,966 | $ | 4,970,208 | |||||||
Net premiums written | 1,807,125 | 1,945,849 | 3,752,974 | ||||||||||
Net premiums earned | 1,777,321 | 1,928,304 | 3,705,625 | ||||||||||
Other insurance related income | 89 | 7,133 | 7,222 | ||||||||||
Net losses and loss expenses | (1,141,933 | ) | (1,062,264 | ) | (2,204,197 | ) | |||||||
Acquisition costs | (251,120 | ) | (495,756 | ) | (746,876 | ) | |||||||
General and administrative expenses | (346,857 | ) | (135,844 | ) | (482,701 | ) | |||||||
Underwriting income | $ | 37,500 | $ | 241,573 | 279,073 | ||||||||
Corporate expenses | (120,016 | ) | |||||||||||
Net investment income | 353,335 | ||||||||||||
Net realized investment loss | (60,525 | ) | |||||||||||
Foreign exchange gains | 121,295 | ||||||||||||
Interest expense and financing costs | (51,360 | ) | |||||||||||
Income before income taxes and interest in income (loss) of equity method investments | $ | 521,802 | |||||||||||
Net loss and loss expense ratio | 64.3 | % | 55.1 | % | 59.5 | % | |||||||
Acquisition cost ratio | 14.1 | % | 25.7 | % | 20.2 | % | |||||||
General and administrative expense ratio | 19.5 | % | 7.0 | % | 16.2 | % | |||||||
Combined ratio | 97.9 | % | 87.8 | % | 95.9 | % | |||||||
Goodwill and intangible assets | $ | 85,049 | $ | — | $ | 85,049 | |||||||
At and year ended December 31, 2015 | Insurance | Reinsurance | Total | ||||||||||
Gross premiums written | $ | 2,583,081 | $ | 2,020,649 | $ | 4,603,730 | |||||||
Net premiums written | 1,759,359 | 1,915,307 | 3,674,666 | ||||||||||
Net premiums earned | 1,798,191 | 1,888,226 | 3,686,417 | ||||||||||
Other insurance related income (losses) | 1,036 | (3,989 | ) | (2,953 | ) | ||||||||
Net losses and loss expenses | (1,154,928 | ) | (1,021,271 | ) | (2,176,199 | ) | |||||||
Acquisition costs | (261,208 | ) | (456,904 | ) | (718,112 | ) | |||||||
General and administrative expenses | (341,658 | ) | (145,253 | ) | (486,911 | ) | |||||||
Underwriting income | $ | 41,433 | $ | 260,809 | 302,242 | ||||||||
Corporate expenses | (109,910 | ) | |||||||||||
Net investment income | 305,336 | ||||||||||||
Net realized investment loss | (138,491 | ) | |||||||||||
Foreign exchange gains | 102,312 | ||||||||||||
Interest expense and financing costs | (50,963 | ) | |||||||||||
Termination fee received | 280,000 | ||||||||||||
Transaction and reorganization expenses | (45,867 | ) | |||||||||||
Income before income taxes and interest in income (loss) of equity method investments | $ | 644,659 | |||||||||||
Net loss and loss expense ratio | 64.2 | % | 54.1 | % | 59.0 | % | |||||||
Acquisition cost ratio | 14.5 | % | 24.2 | % | 19.5 | % | |||||||
General and administrative expense ratio | 19.1 | % | 7.7 | % | 16.2 | % | |||||||
Combined ratio | 97.8 | % | 86.0 | % | 94.7 | % | |||||||
Goodwill and intangible assets | $ | 86,858 | $ | — | $ | 86,858 | |||||||
Years ended December 31, | 2019 | 2018 | 2017 | ||||||||||
Bermuda | $ | 738,258 | $ | 606,452 | $ | 529,425 | |||||||
Ireland | 1,679,646 | 1,805,882 | 1,569,956 | ||||||||||
U.S. | 3,090,547 | 2,811,537 | 2,814,933 | ||||||||||
Lloyd's of London | 1,390,407 | 1,686,194 | 641,959 | ||||||||||
Gross premiums written | $ | 6,898,858 | $ | 6,910,065 | $ | 5,556,273 | |||||||
Year ended December 31, | 2017 | 2016 | 2015 | ||||||||||
Bermuda | $ | 529,425 | $ | 465,980 | $ | 525,226 | |||||||
Ireland | 1,569,956 | 1,650,229 | 1,532,753 | ||||||||||
U.S. | 2,814,933 | 2,562,789 | 2,364,099 | ||||||||||
Lloyd's of London | 641,959 | 291,210 | 181,652 | ||||||||||
Total gross premium written | $ | 5,556,273 | $ | 4,970,208 | $ | 4,603,730 | |||||||
3. | SEGMENT INFORMATION (CONTINUED) |
Years ended December 31, | 2019 | 2018 | 2017 | ||||||||||
Insurance | |||||||||||||
Property | $ | 633,550 | $ | 796,945 | $ | 543,342 | |||||||
Marine | 281,764 | 300,944 | 181,533 | ||||||||||
Terrorism | 47,345 | 49,150 | 36,084 | ||||||||||
Aviation | 55,028 | 74,203 | 75,107 | ||||||||||
Credit and political risk | 91,698 | 102,825 | 56,432 | ||||||||||
Professional lines | 661,250 | 570,241 | 519,759 | ||||||||||
Liability | 264,667 | 229,373 | 188,770 | ||||||||||
Accident and health | 144,499 | 207,777 | 199,121 | ||||||||||
Discontinued lines - Novae | 10,283 | 31,148 | 16,290 | ||||||||||
Total Insurance | 2,190,084 | 2,362,606 | 1,816,438 | ||||||||||
Reinsurance | |||||||||||||
Catastrophe | 267,591 | 250,016 | 209,470 | ||||||||||
Property | 311,625 | 317,038 | 304,376 | ||||||||||
Professional lines | 206,328 | 220,687 | 226,622 | ||||||||||
Credit and surety | 208,717 | 250,276 | 244,186 | ||||||||||
Motor | 398,565 | 438,693 | 371,501 | ||||||||||
Liability | 373,664 | 363,292 | 351,940 | ||||||||||
Agriculture | 188,925 | 176,435 | 195,391 | ||||||||||
Engineering | 63,899 | 67,932 | 66,291 | ||||||||||
Marine and other | 59,209 | 35,570 | 64,449 | ||||||||||
Accident and health | 319,619 | 299,813 | 289,925 | ||||||||||
Discontinued lines - Novae | (1,048 | ) | 9,137 | 8,171 | |||||||||
Total Reinsurance | 2,397,094 | 2,428,889 | 2,332,322 | ||||||||||
Total | $ | 4,587,178 | $ | 4,791,495 | $ | 4,148,760 | |||||||
Year ended December 31, | 2017 | 2016 | 2015 | ||||||||||
Insurance | |||||||||||||
Property | $ | 543,342 | $ | 426,918 | $ | 432,587 | |||||||
Marine | 181,533 | 150,046 | 183,696 | ||||||||||
Terrorism | 36,084 | 33,279 | 36,818 | ||||||||||
Aviation | 75,107 | 44,980 | 45,659 | ||||||||||
Credit and Political Risk | 56,432 | 57,964 | 63,583 | ||||||||||
Professional Lines | 519,759 | 510,806 | 596,430 | ||||||||||
Liability | 188,770 | 169,182 | 161,614 | ||||||||||
Accident and Health | 489,046 | 384,146 | 277,804 | ||||||||||
Discontinued lines - Novae | 16,290 | — | — | ||||||||||
Total Insurance | 2,106,363 | 1,777,321 | 1,798,191 | ||||||||||
Reinsurance | |||||||||||||
Catastrophe | 209,470 | 199,825 | 216,020 | ||||||||||
Property | 304,376 | 272,403 | 306,083 | ||||||||||
Professional Lines | 226,622 | 289,868 | 310,915 | ||||||||||
Credit and Surety | 244,186 | 252,210 | 250,208 | ||||||||||
Motor | 371,501 | 318,863 | 299,883 | ||||||||||
Liability | 351,940 | 332,479 | 297,000 | ||||||||||
Agriculture | 195,391 | 142,501 | 129,346 | ||||||||||
Engineering | 66,291 | 62,833 | 61,043 | ||||||||||
Marine and Other | 64,449 | 57,322 | 17,728 | ||||||||||
Discontinued lines - Novae | 8,171 | — | — | ||||||||||
Total Reinsurance | 2,042,397 | 1,928,304 | 1,888,226 | ||||||||||
Total | $ | 4,148,760 | $ | 3,705,625 | $ | 3,686,417 | |||||||
GOODWILL AND INTANGIBLE ASSETS |
Goodwill | Intangible assets with an indefinite life | Intangible assets with a finite life | Total | ||||||||||||||
Balance at December 31, 2017 | |||||||||||||||||
Gross amount | $ | 42,237 | $ | 26,036 | $ | 23,030 | $ | 91,303 | |||||||||
Accumulated amortization | n/a | n/a | (11,165 | ) | (11,165 | ) | |||||||||||
Accumulated translation adjustment | 4,911 | — | — | 4,911 | |||||||||||||
47,148 | 26,036 | 11,865 | 85,049 | ||||||||||||||
Acquired during the year | 54,855 | 94,748 | 387,545 | 537,148 | |||||||||||||
Amortization | n/a | n/a | (55,369 | ) | (55,369 | ) | |||||||||||
Balance at December 31, 2018 | |||||||||||||||||
Gross amount | 97,092 | 120,784 | 410,575 | 628,451 | |||||||||||||
Accumulated amortization | n/a | n/a | (66,534 | ) | (66,534 | ) | |||||||||||
Accumulated translation adjustment | 4,911 | — | — | 4,911 | |||||||||||||
102,003 | 120,784 | 344,041 | 566,828 | ||||||||||||||
Amortization | n/a | n/a | (184,043 | ) | (184,043 | ) | |||||||||||
Impairment charges | — | — | (3,500 | ) | (3,500 | ) | |||||||||||
Balance at December 31, 2019 | |||||||||||||||||
Gross amount | $ | 97,092 | $ | 120,784 | $ | 404,304 | $ | 622,180 | |||||||||
Accumulated amortization | n/a | n/a | (247,804 | ) | (247,804 | ) | |||||||||||
Accumulated translation adjustment | 4,911 | — | — | 4,911 | |||||||||||||
102,003 | 120,784 | 156,500 | 379,287 | ||||||||||||||
Amortization | n/a | n/a | (37,742 | ) | (37,742 | ) | |||||||||||
$ | 102,003 | $ | 120,784 | $ | 118,758 | $ | 341,545 | ||||||||||
Goodwill | Intangible assets with an indefinite life | Intangible assets with a finite life | Total | ||||||||||||||
Balance at December 31, 2015 | |||||||||||||||||
Gross amount | $ | 42,237 | $ | 26,036 | $ | 29,166 | $ | 97,439 | |||||||||
Accumulated amortization | n/a | n/a | (13,390 | ) | (13,390 | ) | |||||||||||
Accumulated translation adjustment | 4,911 | — | — | 4,911 | |||||||||||||
47,148 | 26,036 | 15,776 | 88,960 | ||||||||||||||
Acquired during the year | — | — | 13,330 | 13,330 | |||||||||||||
Amortization | n/a | n/a | (2,493 | ) | (2,493 | ) | |||||||||||
Impairment charges | — | — | (12,939 | ) | (12,939 | ) | |||||||||||
Balance at December 31, 2016 | |||||||||||||||||
Gross amount (1) | 42,237 | 26,036 | 23,030 | 91,303 | |||||||||||||
Accumulated amortization (1) | n/a | n/a | (9,356 | ) | (9,356 | ) | |||||||||||
Accumulated translation adjustment | 4,911 | — | — | 4,911 | |||||||||||||
47,148 | 26,036 | 13,674 | 86,858 | ||||||||||||||
Amortization | n/a | n/a | (1,809 | ) | (1,809 | ) | |||||||||||
Balance at December 31, 2017 | |||||||||||||||||
Gross amount | $ | 42,237 | $ | 26,036 | $ | 23,030 | $ | 91,303 | |||||||||
Accumulated amortization | n/a | n/a | (11,165 | ) | (11,165 | ) | |||||||||||
Accumulated translation adjustment | 4,911 | — | — | 4,911 | |||||||||||||
47,148 | 26,036 | 11,865 | 85,049 | ||||||||||||||
Acquired during the year | 54,855 | 94,748 | 387,545 | 537,148 | |||||||||||||
Amortization | n/a | n/a | (55,369 | ) | (55,369 | ) | |||||||||||
$ | 102,003 | $ | 120,784 | $ | 344,041 | $ | 566,828 | ||||||||||
Acquisitions in 2017 |
VOBA and intangible assets | ||||||||||||||
Balance At December 31, 2017 | Gross amount | Accumulated amortization | Total | |||||||||||
U.S. state licenses | $ | 26,036 | n/a | $ | 26,036 | |||||||||
Customer lists, trademark and non-compete - Media Pro | 9,700 | (9,244 | ) | 456 | ||||||||||
Customer relationships and customers lists - Ternian | 13,330 | (3,666 | ) | 9,664 | ||||||||||
Other intangibles - Aviabel | 2,140 | (977 | ) | 1,163 | ||||||||||
VOBA - Novae | 256,942 | (50,104 | ) | 206,838 | ||||||||||
Syndicate capacity | 94,748 | n/a | 94,748 | |||||||||||
Coverholders | 63,565 | (1,324 | ) | 62,241 | ||||||||||
Large brokers | 46,641 | (777 | ) | 45,864 | ||||||||||
SME brokers | 14,126 | (294 | ) | 13,832 | ||||||||||
MGA contract | 4,131 | (148 | ) | 3,983 | ||||||||||
$ | 531,359 | $ | (66,534 | ) | $ | 464,825 | ||||||||
Intangible assets | ||||||||||||||
Balance At December 31, 2016 | Gross amount | Accumulated amortization | Total | |||||||||||
U.S. state licenses | $ | 26,036 | n/a | $ | 26,036 | |||||||||
Customer lists, trademark and non-compete - Media Pro | 9,700 | (8,832 | ) | 868 | ||||||||||
Customer relationships and customers lists - Ternian | 13,330 | (2,333 | ) | 10,997 | ||||||||||
$ | 49,066 | $ | (11,165 | ) | $ | 37,901 | ||||||||
GOODWILL AND INTANGIBLE ASSETS (CONTINUED) |
VOBA and intangible assets | ||||||||||||||
Balance At December 31, 2019 | Gross amount | Accumulated amortization | Total | |||||||||||
U.S. state licenses | $ | 26,036 | n/a | $ | 26,036 | |||||||||
Customer lists, trademark and non-compete - Media Pro (1) | 9,700 | (9,700 | ) | — | ||||||||||
Customer relationships and customers lists - Ternian (2) | 13,330 | (6,333 | ) | 6,997 | ||||||||||
VOBA - Novae | 256,942 | (247,950 | ) | 8,992 | ||||||||||
Syndicate capacity | 94,748 | n/a | 94,748 | |||||||||||
Coverholders | 63,565 | (11,918 | ) | 51,647 | ||||||||||
Large brokers | 46,641 | (6,996 | ) | 39,645 | ||||||||||
SME brokers | 14,126 | (2,649 | ) | 11,477 | ||||||||||
$ | 525,088 | $ | (285,546 | ) | $ | 239,542 | ||||||||
VOBA and intangible assets | ||||||||||||||
Balance At December 31, 2018 | Gross amount | Accumulated amortization and impairment | Total | |||||||||||
U.S. state licenses | $ | 26,036 | n/a | $ | 26,036 | |||||||||
Customer lists, trademark and non-compete - Media Pro | 9,700 | (9,598 | ) | 102 | ||||||||||
Customer relationships and customers lists - Ternian | 13,330 | (4,999 | ) | 8,331 | ||||||||||
VOBA - Aviabel | 2,140 | (2,140 | ) | — | ||||||||||
VOBA - Novae | 256,942 | (221,228 | ) | 35,714 | ||||||||||
Syndicate capacity | 94,748 | n/a | 94,748 | |||||||||||
Coverholders | 63,565 | (6,622 | ) | 56,943 | ||||||||||
Large brokers | 46,641 | (3,888 | ) | 42,753 | ||||||||||
SME brokers | 14,126 | (1,471 | ) | 12,655 | ||||||||||
MGA contract(1) | 4,131 | (4,131 | ) | — | ||||||||||
$ | 531,359 | $ | (254,077 | ) | $ | 277,282 | ||||||||
4. | GOODWILL AND INTANGIBLE ASSETS (CONTINUED) |
VOBA | Intangible assets | Total | ||||||||||||
2020 | 5,139 | 10,916 | 16,055 | |||||||||||
2021 | 3,853 | 10,916 | 14,769 | |||||||||||
2022 | — | 10,916 | 10,916 | |||||||||||
2023 | — | 10,916 | 10,916 | |||||||||||
2024 | — | 10,916 | 10,916 | |||||||||||
2025 and thereafter | — | 55,186 | 55,186 | |||||||||||
Total remaining amortization expense | 8,992 | 109,766 | 118,758 | |||||||||||
Indefinite lived intangible assets | — | 120,784 | 120,784 | |||||||||||
Total intangible assets | $ | 8,992 | $ | 230,550 | $ | 239,542 | ||||||||
VOBA | Intangible assets | Total | ||||||||||||
2018 | $ | 171,124 | $ | 13,025 | $ | 184,149 | ||||||||
2019 | 26,722 | 11,606 | 38,328 | |||||||||||
2020 | 5,139 | 11,506 | 16,645 | |||||||||||
2021 | 3,853 | 11,506 | 15,359 | |||||||||||
2022 | — | 11,506 | 11,506 | |||||||||||
2023 and thereafter | — | 78,054 | 78,054 | |||||||||||
Total remaining amortization expense | 206,838 | 137,203 | 344,041 | |||||||||||
Indefinite lived intangible assets | — | 120,784 | 120,784 | |||||||||||
Total intangible assets | $ | 206,838 | $ | 257,987 | $ | 464,825 | ||||||||
INVESTMENTS |
Amortized Cost or Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Non-credit OTTI in AOCI(5) | |||||||||||||||||
At December 31, 2017 | |||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||
U.S. government and agency | $ | 1,727,643 | $ | 1,735 | $ | (16,909 | ) | $ | 1,712,469 | $ | — | ||||||||||
Non-U.S. government | 798,582 | 17,240 | (9,523 | ) | 806,299 | — | |||||||||||||||
Corporate debt | 5,265,795 | 61,922 | (29,851 | ) | 5,297,866 | — | |||||||||||||||
Agency RMBS(1) | 2,414,720 | 8,132 | (27,700 | ) | 2,395,152 | — | |||||||||||||||
CMBS(2) | 776,715 | 4,138 | (3,125 | ) | 777,728 | — | |||||||||||||||
Non-Agency RMBS | 45,713 | 1,917 | (799 | ) | 46,831 | (853 | ) | ||||||||||||||
ABS(3) | 1,432,884 | 5,391 | (1,994 | ) | 1,436,281 | — | |||||||||||||||
Municipals(4) | 149,167 | 1,185 | (972 | ) | 149,380 | — | |||||||||||||||
Total fixed maturities | $ | 12,611,219 | $ | 101,660 | $ | (90,873 | ) | $ | 12,622,006 | $ | (853 | ) | |||||||||
Equity securities | |||||||||||||||||||||
Common stocks | $ | 22,836 | $ | 3,412 | $ | (590 | ) | $ | 25,658 | ||||||||||||
Exchange-traded funds | 356,252 | 71,675 | (294 | ) | 427,633 | ||||||||||||||||
Bond mutual funds | 173,779 | 9,440 | (999 | ) | 182,220 | ||||||||||||||||
Total equity securities | $ | 552,867 | $ | 84,527 | $ | (1,883 | ) | $ | 635,511 | ||||||||||||
At December 31, 2016 | |||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||
U.S. government and agency | $ | 1,681,425 | $ | 1,648 | $ | (27,004 | ) | $ | 1,656,069 | $ | — | ||||||||||
Non-U.S. government | 613,282 | 2,206 | (49,654 | ) | 565,834 | — | |||||||||||||||
Corporate debt | 4,633,834 | 42,049 | (75,140 | ) | 4,600,743 | — | |||||||||||||||
Agency RMBS(1) | 2,487,837 | 13,275 | (35,977 | ) | 2,465,135 | — | |||||||||||||||
CMBS(2) | 664,368 | 5,433 | (3,564 | ) | 666,237 | — | |||||||||||||||
Non-Agency RMBS | 57,316 | 1,628 | (2,023 | ) | 56,921 | (823 | ) | ||||||||||||||
ABS(3) | 1,221,813 | 3,244 | (2,843 | ) | 1,222,214 | — | |||||||||||||||
Municipals(4) | 163,441 | 1,510 | (990 | ) | 163,961 | — | |||||||||||||||
Total fixed maturities | $ | 11,523,316 | $ | 70,993 | $ | (197,195 | ) | $ | 11,397,114 | $ | (823 | ) | |||||||||
Equity securities | |||||||||||||||||||||
Common stocks | $ | 379 | $ | 41 | $ | (342 | ) | $ | 78 | ||||||||||||
Exchange-traded funds | 463,936 | 53,405 | (2,634 | ) | 514,707 | ||||||||||||||||
Bond mutual funds | 133,051 | — | (9,092 | ) | 123,959 | ||||||||||||||||
Total equity securities | $ | 597,366 | $ | 53,446 | $ | (12,068 | ) | $ | 638,744 | ||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses | Fair value | ||||||||||||||
At December 31, 2019 | |||||||||||||||||
Fixed maturities | |||||||||||||||||
U.S. government and agency | $ | 2,102,849 | $ | 16,345 | $ | (6,313 | ) | $ | 2,112,881 | ||||||||
Non-U.S. government | 564,505 | 14,535 | (2,448 | ) | 576,592 | ||||||||||||
Corporate debt | 4,797,384 | 140,426 | (7,556 | ) | 4,930,254 | ||||||||||||
Agency RMBS(1) | 1,570,823 | 25,215 | (3,454 | ) | 1,592,584 | ||||||||||||
CMBS(2) | 1,340,156 | 29,838 | (4,942 | ) | 1,365,052 | ||||||||||||
Non-Agency RMBS | 84,381 | 1,393 | (852 | ) | 84,922 | ||||||||||||
ABS(3) | 1,599,867 | 4,706 | (5,880 | ) | 1,598,693 | ||||||||||||
Municipals(4) | 203,275 | 4,359 | (407 | ) | 207,227 | ||||||||||||
Total fixed maturities | $ | 12,263,240 | $ | 236,817 | $ | (31,852 | ) | $ | 12,468,205 | ||||||||
At December 31, 2018 | |||||||||||||||||
Fixed maturities | |||||||||||||||||
U.S. government and agency | $ | 1,520,142 | $ | 4,232 | $ | (8,677 | ) | $ | 1,515,697 | ||||||||
Non-U.S. government | 507,550 | 1,586 | (16,120 | ) | 493,016 | ||||||||||||
Corporate debt | 4,990,279 | 15,086 | (128,444 | ) | 4,876,921 | ||||||||||||
Agency RMBS(1) | 1,666,684 | 6,508 | (29,884 | ) | 1,643,308 | ||||||||||||
CMBS(2) | 1,103,507 | 2,818 | (13,795 | ) | 1,092,530 | ||||||||||||
Non-Agency RMBS | 40,732 | 1,237 | (1,282 | ) | 40,687 | ||||||||||||
ABS(3) | 1,651,350 | 1,493 | (15,240 | ) | 1,637,603 | ||||||||||||
Municipals(4) | 136,068 | 914 | (1,397 | ) | 135,585 | ||||||||||||
Total fixed maturities | $ | 11,616,312 | $ | 33,874 | $ | (214,839 | ) | $ | 11,435,347 | ||||||||
(1) | Residential mortgage-backed securities |
(2) | Commercial mortgage-backed securities |
(3) | Asset-backed securities |
(4) | Municipals include bonds issued by states, municipalities and political subdivisions. |
INVESTMENTS (CONTINUED) |
Cost | Gross unrealized gains | Gross unrealized losses | Fair value | ||||||||||||||
At December 31, 2019 | |||||||||||||||||
Equity securities | |||||||||||||||||
Common stocks | $ | 504 | $ | 77 | $ | (388 | ) | $ | 193 | ||||||||
Exchange-traded funds | 215,986 | 81,444 | (105 | ) | 297,325 | ||||||||||||
Bond mutual funds | 182,466 | — | (5,777 | ) | 176,689 | ||||||||||||
Total equity securities | $ | 398,956 | $ | 81,521 | $ | (6,270 | ) | $ | 474,207 | ||||||||
At December 31, 2018 | |||||||||||||||||
Equity securities | |||||||||||||||||
Common stocks | $ | 790 | $ | 112 | $ | (375 | ) | $ | 527 | ||||||||
Exchange-traded funds | 213,420 | 33,498 | (10,079 | ) | 236,839 | ||||||||||||
Bond mutual funds | 151,695 | — | (7,428 | ) | 144,267 | ||||||||||||
Total equity securities | $ | 365,905 | $ | 33,610 | $ | (17,882 | ) | $ | 381,633 | ||||||||
5. | INVESTMENTS (CONTINUED) |
Amortized cost | Fair value | % of Total fair value | ||||||||||
At December 31, 2019 | ||||||||||||
Maturity | ||||||||||||
Due in one year or less | $ | 438,881 | $ | 443,228 | 3.6 | % | ||||||
Due after one year through five years | 4,810,202 | 4,884,837 | 39.2 | % | ||||||||
Due after five years through ten years | 2,091,486 | 2,157,157 | 17.3 | % | ||||||||
Due after ten years | 327,444 | 341,732 | 2.7 | % | ||||||||
7,668,013 | 7,826,954 | 62.8 | % | |||||||||
Agency RMBS | 1,570,823 | 1,592,584 | 12.8 | % | ||||||||
CMBS | 1,340,156 | 1,365,052 | 10.9 | % | ||||||||
Non-Agency RMBS | 84,381 | 84,922 | 0.7 | % | ||||||||
ABS | 1,599,867 | 1,598,693 | 12.8 | % | ||||||||
Total | $ | 12,263,240 | $ | 12,468,205 | 100.0 | % | ||||||
At December 31, 2018 | ||||||||||||
Maturity | ||||||||||||
Due in one year or less | $ | 430,390 | $ | 426,142 | 3.7 | % | ||||||
Due after one year through five years | 4,751,064 | 4,691,263 | 41.0 | % | ||||||||
Due after five years through ten years | 1,762,452 | 1,697,737 | 14.8 | % | ||||||||
Due after ten years | 210,133 | 206,077 | 1.8 | % | ||||||||
7,154,039 | 7,021,219 | 61.3 | % | |||||||||
Agency RMBS | 1,666,684 | 1,643,308 | 14.4 | % | ||||||||
CMBS | 1,103,507 | 1,092,530 | 9.6 | % | ||||||||
Non-Agency RMBS | 40,732 | 40,687 | 0.4 | % | ||||||||
ABS | 1,651,350 | 1,637,603 | 14.3 | % | ||||||||
Total | $ | 11,616,312 | $ | 11,435,347 | 100.0 | % | ||||||
Amortized Cost | Fair Value | % of Total Fair Value | ||||||||||
At December 31, 2017 | ||||||||||||
Maturity | ||||||||||||
Due in one year or less | $ | 486,659 | $ | 484,663 | 3.8 | % | ||||||
Due after one year through five years | 4,906,207 | 4,912,189 | 38.9 | % | ||||||||
Due after five years through ten years | 2,338,964 | 2,350,433 | 18.6 | % | ||||||||
Due after ten years | 209,357 | 218,729 | 1.7 | % | ||||||||
7,941,187 | 7,966,014 | 63.0 | % | |||||||||
Agency RMBS | 2,414,720 | 2,395,152 | 19.0 | % | ||||||||
CMBS | 776,715 | 777,728 | 6.2 | % | ||||||||
Non-Agency RMBS | 45,713 | 46,831 | 0.4 | % | ||||||||
ABS | 1,432,884 | 1,436,281 | 11.4 | % | ||||||||
Total | $ | 12,611,219 | $ | 12,622,006 | 100.0 | % | ||||||
At December 31, 2016 | ||||||||||||
Maturity | ||||||||||||
Due in one year or less | $ | 313,287 | $ | 305,972 | 2.8 | % | ||||||
Due after one year through five years | 3,906,190 | 3,850,149 | 33.8 | % | ||||||||
Due after five years through ten years | 2,546,299 | 2,510,975 | 22.0 | % | ||||||||
Due after ten years | 326,206 | 319,511 | 2.8 | % | ||||||||
7,091,982 | 6,986,607 | 61.4 | % | |||||||||
Agency RMBS | 2,487,837 | 2,465,135 | 21.6 | % | ||||||||
CMBS | 664,368 | 666,237 | 5.8 | % | ||||||||
Non-Agency RMBS | 57,316 | 56,921 | 0.5 | % | ||||||||
ABS | 1,221,813 | 1,222,214 | 10.7 | % | ||||||||
Total | $ | 11,523,316 | $ | 11,397,114 | 100.0 | % | ||||||
INVESTMENTS (CONTINUED) |
12 months or greater | Less than 12 months | Total | |||||||||||||||||||||||
Fair value | Unrealized losses | Fair value | Unrealized losses | Fair value | Unrealized losses | ||||||||||||||||||||
At December 31, 2019 | |||||||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||
U.S. government and agency | $ | 9,536 | $ | (67 | ) | $ | 614,705 | $ | (6,246 | ) | $ | 624,241 | $ | (6,313 | ) | ||||||||||
Non-U.S. government | 99,466 | (2,036 | ) | 18,361 | (412 | ) | 117,827 | (2,448 | ) | ||||||||||||||||
Corporate debt | 121,635 | (3,847 | ) | 375,858 | (3,709 | ) | 497,493 | (7,556 | ) | ||||||||||||||||
Agency RMBS | 195,395 | (1,816 | ) | 326,402 | (1,638 | ) | 521,797 | (3,454 | ) | ||||||||||||||||
CMBS | 24,281 | (64 | ) | 364,641 | (4,878 | ) | 388,922 | (4,942 | ) | ||||||||||||||||
Non-Agency RMBS | 6,345 | (792 | ) | 25,816 | (60 | ) | 32,161 | (852 | ) | ||||||||||||||||
ABS | 535,780 | (4,667 | ) | 404,641 | (1,213 | ) | 940,421 | (5,880 | ) | ||||||||||||||||
Municipals | 5,418 | (34 | ) | 46,684 | (373 | ) | 52,102 | (407 | ) | ||||||||||||||||
Total fixed maturities | $ | 997,856 | $ | (13,323 | ) | $ | 2,177,108 | $ | (18,529 | ) | $ | 3,174,964 | $ | (31,852 | ) | ||||||||||
At December 31, 2018 | |||||||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||
U.S. government and agency | $ | 374,030 | $ | (7,659 | ) | $ | 424,439 | $ | (1,018 | ) | $ | 798,469 | $ | (8,677 | ) | ||||||||||
Non-U.S. government | 44,339 | (2,004 | ) | 303,376 | (14,116 | ) | 347,715 | (16,120 | ) | ||||||||||||||||
Corporate debt | 1,439,378 | (58,915 | ) | 2,547,135 | (69,529 | ) | 3,986,513 | (128,444 | ) | ||||||||||||||||
Agency RMBS | 940,645 | (29,255 | ) | 117,181 | (629 | ) | 1,057,826 | (29,884 | ) | ||||||||||||||||
CMBS | 455,582 | (11,430 | ) | 353,802 | (2,365 | ) | 809,384 | (13,795 | ) | ||||||||||||||||
Non-Agency RMBS | 9,494 | (1,170 | ) | 11,432 | (112 | ) | 20,926 | (1,282 | ) | ||||||||||||||||
ABS | 237,237 | (2,755 | ) | 1,150,692 | (12,485 | ) | 1,387,929 | (15,240 | ) | ||||||||||||||||
Municipals | 68,814 | (1,373 | ) | 9,894 | (24 | ) | 78,708 | (1,397 | ) | ||||||||||||||||
Total fixed maturities | $ | 3,569,519 | $ | (114,561 | ) | $ | 4,917,951 | $ | (100,278 | ) | $ | 8,487,470 | $ | (214,839 | ) | ||||||||||
12 months or greater | Less than 12 months | Total | |||||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||
At December 31, 2017 | |||||||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||
U.S. government and agency | $ | 194,916 | $ | (5,963 | ) | $ | 1,389,792 | $ | (10,946 | ) | $ | 1,584,708 | $ | (16,909 | ) | ||||||||||
Non-U.S. government | 62,878 | (6,806 | ) | 204,110 | (2,717 | ) | 266,988 | (9,523 | ) | ||||||||||||||||
Corporate debt | 407,300 | (11,800 | ) | 2,041,845 | (18,051 | ) | 2,449,145 | (29,851 | ) | ||||||||||||||||
Agency RMBS | 759,255 | (17,453 | ) | 1,172,313 | (10,247 | ) | 1,931,568 | (27,700 | ) | ||||||||||||||||
CMBS | 31,607 | (703 | ) | 348,943 | (2,422 | ) | 380,550 | (3,125 | ) | ||||||||||||||||
Non-Agency RMBS | 8,029 | (788 | ) | 4,197 | (11 | ) | 12,226 | (799 | ) | ||||||||||||||||
ABS | 57,298 | (570 | ) | 392,170 | (1,424 | ) | 449,468 | (1,994 | ) | ||||||||||||||||
Municipals | 11,230 | (269 | ) | 65,632 | (703 | ) | 76,862 | (972 | ) | ||||||||||||||||
Total fixed maturities | $ | 1,532,513 | $ | (44,352 | ) | $ | 5,619,002 | $ | (46,521 | ) | $ | 7,151,515 | $ | (90,873 | ) | ||||||||||
Equity securities | |||||||||||||||||||||||||
Common stocks | $ | — | $ | — | $ | 3,202 | $ | (590 | ) | $ | 3,202 | $ | (590 | ) | |||||||||||
Exchange-traded funds | — | — | 12,323 | (294 | ) | 12,323 | (294 | ) | |||||||||||||||||
Bond mutual funds | — | — | 12,184 | (999 | ) | 12,184 | (999 | ) | |||||||||||||||||
Total equity securities | $ | — | $ | — | $ | 27,709 | $ | (1,883 | ) | $ | 27,709 | $ | (1,883 | ) | |||||||||||
At December 31, 2016 | |||||||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||
U.S. government and agency | $ | 54,051 | $ | (2,729 | ) | $ | 1,340,719 | $ | (24,275 | ) | $ | 1,394,770 | $ | (27,004 | ) | ||||||||||
Non-U.S. government | 149,360 | (38,683 | ) | 283,796 | (10,971 | ) | 433,156 | (49,654 | ) | ||||||||||||||||
Corporate debt | 230,218 | (30,652 | ) | 1,948,976 | (44,488 | ) | 2,179,194 | (75,140 | ) | ||||||||||||||||
Agency RMBS | 76,694 | (1,101 | ) | 1,724,170 | (34,876 | ) | 1,800,864 | (35,977 | ) | ||||||||||||||||
CMBS | 84,640 | (749 | ) | 193,499 | (2,815 | ) | 278,139 | (3,564 | ) | ||||||||||||||||
Non-Agency RMBS | 13,642 | (1,752 | ) | 7,194 | (271 | ) | 20,836 | (2,023 | ) | ||||||||||||||||
ABS | 362,110 | (1,950 | ) | 266,763 | (893 | ) | 628,873 | (2,843 | ) | ||||||||||||||||
Municipals | 774 | (29 | ) | 68,598 | (961 | ) | 69,372 | (990 | ) | ||||||||||||||||
Total fixed maturities | $ | 971,489 | $ | (77,645 | ) | $ | 5,833,715 | $ | (119,550 | ) | $ | 6,805,204 | $ | (197,195 | ) | ||||||||||
Equity securities | |||||||||||||||||||||||||
Common stocks | $ | — | $ | — | $ | 37 | $ | (342 | ) | $ | 37 | $ | (342 | ) | |||||||||||
Exchange-traded funds | 4,959 | (461 | ) | 87,760 | (2,173 | ) | 92,719 | (2,634 | ) | ||||||||||||||||
Bond mutual funds | — | — | 123,954 | (9,092 | ) | 123,954 | (9,092 | ) | |||||||||||||||||
Total equity securities | $ | 4,959 | $ | (461 | ) | $ | 211,751 | $ | (11,607 | ) | $ | 216,710 | $ | (12,068 | ) | ||||||||||
5. | INVESTMENTS (CONTINUED) |
b) | Mortgage Loans |
December 31, 2019 | December 31, 2018 | ||||||||||||||
Carrying value | % of Total | Carrying value | % of Total | ||||||||||||
Mortgage Loans held-for-investment: | |||||||||||||||
Commercial | $ | 432,748 | 100 | % | $ | 298,650 | 100 | % | |||||||
Total Mortgage Loans held-for-investment | $ | 432,748 | 100 | % | $ | 298,650 | 100 | % | |||||||
December 31, 2017 | December 31, 2016 | ||||||||||||||
Carrying Value | % of Total | Carrying Value | % of Total | ||||||||||||
Mortgage Loans held-for-investment: | |||||||||||||||
Commercial | $ | 325,062 | 100 | % | $ | 349,969 | 100 | % | |||||||
325,062 | 100 | % | 349,969 | 100 | % | ||||||||||
Valuation allowances | — | — | % | — | — | % | |||||||||
Total Mortgage Loans held-for-investment | $ | 325,062 | 100 | % | $ | 349,969 | 100 | % | |||||||
INVESTMENTS (CONTINUED) |
c) | Other Investments |
Fair Value | Redemption Frequency (if currently eligible) | Redemption Notice Period | ||||||||||
At December 31, 2017 | ||||||||||||
Long/short equity funds | $ | 38,470 | 4 | % | Annually | 60 days | ||||||
Multi-strategy funds | 286,164 | 28 | % | Quarterly, Semi-annually | 60-95 days | |||||||
Event-driven funds | 39,177 | 4 | % | Annually | 45 days | |||||||
Direct lending funds | 250,681 | 25 | % | n/a | n/a | |||||||
Private equity funds | 68,812 | 7 | % | n/a | n/a | |||||||
Real estate funds | 50,009 | 5 | % | n/a | n/a | |||||||
CLO-Equities | 31,413 | 2 | % | n/a | n/a | |||||||
Other privately held investments | 46,430 | 5 | % | n/a | n/a | |||||||
Overseas deposits | 198,217 | 20 | % | n/a | n/a | |||||||
Total other investments | $ | 1,009,373 | 100 | % | ||||||||
At December 31, 2016 | ||||||||||||
Long/short equity funds | $ | 118,619 | 14 | % | Semi-annually, Annually | 45-60 days | ||||||
Multi-strategy funds | 285,992 | 34 | % | Quarterly, Semi-annually | 60-95 days | |||||||
Event-driven funds | 93,539 | 11 | % | Annually | 45 days | |||||||
Direct lending funds | 134,650 | 16 | % | n/a | n/a | |||||||
Private equity funds | 81,223 | 10 | % | n/a | n/a | |||||||
Real estate funds | 13,354 | 2 | % | n/a | n/a | |||||||
CLO-Equities | 60,700 | 8 | % | n/a | n/a | |||||||
Other privately held investments | 42,142 | 5 | % | n/a | n/a | |||||||
Overseas deposits | — | — | % | n/a | n/a | |||||||
Total other investments | $ | 830,219 | 100 | % | ||||||||
Fair value | Redemption frequency (if currently eligible) | Redemption notice period | ||||||||||
At December 31, 2019 | ||||||||||||
Long/short equity funds | $ | 31,248 | 4 | % | Annually | 60 days | ||||||
Multi-strategy funds | 136,542 | 18 | % | Quarterly, Semi-annually | 60-90 days | |||||||
Direct lending funds | 277,395 | 36 | % | n/a | n/a | |||||||
Private equity funds | 80,412 | 10 | % | n/a | n/a | |||||||
Real estate funds | 130,112 | 17 | % | n/a | n/a | |||||||
CLO-Equities | 14,328 | 2 | % | n/a | n/a | |||||||
Other privately held investments | 36,934 | 5 | % | n/a | n/a | |||||||
Overseas deposits | 63,952 | 8 | % | n/a | n/a | |||||||
Total other investments | $ | 770,923 | 100 | % | ||||||||
At December 31, 2018 | ||||||||||||
Long/short equity funds | $ | 26,779 | 3 | % | Annually | 60 days | ||||||
Multi-strategy funds | 167,819 | 22 | % | Quarterly, Semi-annually, Annually | 45-95 days | |||||||
Direct lending funds | 274,478 | 35 | % | n/a | n/a | |||||||
Private equity funds | 64,566 | 8 | % | n/a | n/a | |||||||
Real estate funds | 84,202 | 11 | % | n/a | n/a | |||||||
CLO-Equities | 21,271 | 2 | % | n/a | n/a | |||||||
Other privately held investments | 44,518 | 6 | % | n/a | n/a | |||||||
Overseas deposits | 104,154 | 13 | % | n/a | n/a | |||||||
Total other investments | $ | 787,787 | 100 | % | ||||||||
• | Long/short equity funds: Seek to achieve attractive returns primarily by executing an equity trading strategy involving long and short investments in publicly-traded equity securities. |
• | Multi-strategy funds: Seek to achieve above-market returns by pursuing multiple investment strategies to diversify risks and reduce volatility. This category includes funds of hedge funds which invest in a large pool of hedge funds across a diversified range of hedge fund strategies. |
• | Direct lending funds: Seek to achieve attractive risk-adjusted returns, including current income generation, by investing in funds which provide financing directly to borrowers. |
• | Private equity funds: Seek to achieve attractive risk-adjusted returns by investing in private transactions over the course of several years. |
• | Real estate funds: Seek to achieve attractive risk-adjusted returns by making and managing investments in real estate and real estate securities and businesses. |
INVESTMENTS (CONTINUED) |
INVESTMENTS (CONTINUED) |
d) | Equity Method Investments |
Year ended December 31, | 2019 | 2018 | 2017 | ||||||||||
Fixed maturities | $ | 384,053 | $ | 356,273 | $ | 312,662 | |||||||
Other investments | 60,038 | 48,959 | 76,858 | ||||||||||
Equity securities | 10,434 | 10,077 | 14,919 | ||||||||||
Mortgage loans | 14,712 | 13,566 | 10,780 | ||||||||||
Cash and cash equivalents | 26,882 | 27,566 | 10,057 | ||||||||||
Short-term investments | 7,053 | 9,365 | 2,718 | ||||||||||
Gross investment income | 503,172 | 465,806 | 427,994 | ||||||||||
Investment expenses | (24,600 | ) | (27,299 | ) | (27,189 | ) | |||||||
Net investment income | $ | 478,572 | $ | 438,507 | $ | 400,805 | |||||||
Year ended December 31, | 2017 | 2016 | 2015 | ||||||||||
Fixed maturities | $ | 312,662 | $ | 305,459 | $ | 294,725 | |||||||
Other investments | 76,858 | 42,514 | 20,148 | ||||||||||
Equity securities | 14,919 | 16,306 | 11,289 | ||||||||||
Mortgage loans | 10,780 | 7,996 | 1,861 | ||||||||||
Cash and cash equivalents | 10,057 | 9,209 | 8,572 | ||||||||||
Short-term investments | 2,718 | 2,060 | 439 | ||||||||||
Gross investment income | 427,994 | 383,544 | 337,034 | ||||||||||
Investment expenses | (27,189 | ) | (30,209 | ) | (31,698 | ) | |||||||
Net investment income | $ | 400,805 | $ | 353,335 | $ | 305,336 | |||||||
INVESTMENTS (CONTINUED) |
f) | Net |
Year ended December 31, | 2017 | 2016 | 2015 | ||||||||||
Gross realized gains | |||||||||||||
Fixed maturities and short-term investments | $ | 72,046 | $ | 86,267 | $ | 60,102 | |||||||
Equities | 78,343 | 19,104 | 19,113 | ||||||||||
Gross realized gains | 150,389 | 105,371 | 79,215 | ||||||||||
Gross realized losses | |||||||||||||
Fixed maturities and short-term investments | (98,442 | ) | (134,460 | ) | (143,702 | ) | |||||||
Equities | (959 | ) | (16,155 | ) | (8,543 | ) | |||||||
Gross realized losses | (99,401 | ) | (150,615 | ) | (152,245 | ) | |||||||
Net OTTI recognized in net income | (14,493 | ) | (26,210 | ) | (72,720 | ) | |||||||
Change in fair value of investment derivatives(1) | (8,269 | ) | 10,929 | 7,259 | |||||||||
Net realized investment gains (losses) | $ | 28,226 | $ | (60,525 | ) | $ | (138,491 | ) | |||||
Year ended December 31, | 2019 | 2018 | 2017 | ||||||||||
Gross realized investment gains | |||||||||||||
Fixed maturities and short-term investments | $ | 93,160 | $ | 46,067 | $ | 72,046 | |||||||
Equity securities | 3,449 | 20,435 | 78,343 | ||||||||||
Gross realized investment gains | 96,609 | 66,502 | 150,389 | ||||||||||
Gross realized investment losses | |||||||||||||
Fixed maturities and short-term investments | (56,515 | ) | (142,153 | ) | (98,442 | ) | |||||||
Equity securities | (323 | ) | (3,389 | ) | (959 | ) | |||||||
Gross realized investment losses | (56,838 | ) | (145,542 | ) | (99,401 | ) | |||||||
Net OTTI charge recognized in net income | (6,984 | ) | (9,733 | ) | (14,493 | ) | |||||||
Change in fair value of investment derivatives(1) | (1,823 | ) | 5,445 | (8,269 | ) | ||||||||
Net unrealized gains (losses) on equity securities(2) | 60,269 | (66,890 | ) | — | |||||||||
Net investment gains (losses) | $ | 91,233 | $ | (150,218 | ) | $ | 28,226 | ||||||
(1) | Refer to Note |
(2) | Effective January 1, 2018, the Company adopted ASU No. 2016-01 which requires the change in fair value of equity securities to be recognized in net income. |
Year ended December 31, | 2017 | 2016 | 2015 | ||||||||||
Fixed maturities: | |||||||||||||
Non-U.S. government | $ | 8,187 | $ | 3,557 | $ | 3,538 | |||||||
Corporate debt | 6,306 | 20,093 | 47,029 | ||||||||||
Non-Agency RMBS | — | — | 111 | ||||||||||
ABS | — | — | 124 | ||||||||||
14,493 | 23,650 | 50,802 | |||||||||||
Equity Securities | |||||||||||||
Exchange-traded funds | — | 2,560 | 10,732 | ||||||||||
Bond mutual funds | — | — | 11,186 | ||||||||||
— | 2,560 | 21,918 | |||||||||||
Total OTTI recognized in net income | $ | 14,493 | $ | 26,210 | $ | 72,720 | |||||||
Year ended December 31, | 2019 | 2018 | 2017 | ||||||||||
Fixed maturities: | |||||||||||||
Non-U.S. government | $ | 90 | $ | 4,697 | $ | 8,187 | |||||||
Corporate debt | 6,894 | 4,995 | 6,306 | ||||||||||
Non-Agency CMBS | — | 41 | — | ||||||||||
Total OTTI recognized in net income | $ | 6,984 | $ | 9,733 | $ | 14,493 | |||||||
Year ended December 31, | 2017 | 2016 | |||||||
Balance at beginning of period | $ | 1,493 | $ | 1,506 | |||||
Credit impairments recognized on securities not previously impaired | — | — | |||||||
Additional credit impairments recognized on securities previously impaired | 13 | 20 | |||||||
Change in timing of future cash flows on securities previously impaired | — | — | |||||||
Intent to sell of securities previously impaired | — | — | |||||||
Securities sold/redeemed/matured | (12 | ) | (33 | ) | |||||
Balance at end of period | $ | 1,494 | $ | 1,493 | |||||
5. | INVESTMENTS (CONTINUED) |
5. | INVESTMENTS (CONTINUED) |
g) | Restricted Assets |
At December 31, | 2017 | 2016 | ||||||||
Collateral in Trust for inter-company agreements | $ | 3,310,180 | $ | 2,877,823 | ||||||
Collateral for secured letter of credit facility | 386,451 | 448,366 | ||||||||
Funds at Lloyd's | 1,192,717 | 382,611 | ||||||||
Collateral in Trust for third party agreements | 2,085,443 | 508,262 | ||||||||
Securities on deposit with regulatory authorities | 53,925 | 50,290 | ||||||||
Total restricted investments | $ | 7,028,716 | $ | 4,267,352 | ||||||
At December 31, | 2019 | 2018 | ||||||||
Collateral in Trust for inter-company agreements | $ | 1,580,689 | $ | 2,121,522 | ||||||
Collateral for secured letter of credit facility | 473,187 | 470,051 | ||||||||
Funds at Lloyd's | 1,314,345 | 1,307,945 | ||||||||
Collateral in Trust for third-party agreements | 1,856,327 | 1,510,416 | ||||||||
Securities on deposit with regulatory authorities | 76,229 | 64,360 | ||||||||
Total restricted investments | $ | 5,300,777 | $ | 5,474,294 | ||||||
h) | Reverse Repurchase Agreements |
6. | FAIR VALUE MEASUREMENTS |
6. | FAIR VALUE MEASUREMENTS (CONTINUED) |
FAIR VALUE MEASUREMENTS (CONTINUED) |
FAIR VALUE MEASUREMENTS (CONTINUED) |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Fair value based on NAV practical expedient | Total Fair Value | |||||||||||||||||
At December 31, 2017 | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||
U.S. government and agency | $ | 1,658,622 | $ | 53,847 | $ | — | $ | — | $ | 1,712,469 | |||||||||||
Non-U.S. government | — | 806,299 | — | — | 806,299 | ||||||||||||||||
Corporate debt | — | 5,244,969 | 52,897 | — | 5,297,866 | ||||||||||||||||
Agency RMBS | — | 2,395,152 | — | — | 2,395,152 | ||||||||||||||||
CMBS | — | 777,728 | — | — | 777,728 | ||||||||||||||||
Non-Agency RMBS | — | 46,831 | — | — | 46,831 | ||||||||||||||||
ABS | — | 1,436,281 | — | — | 1,436,281 | ||||||||||||||||
Municipals | — | 149,380 | — | — | 149,380 | ||||||||||||||||
1,658,622 | 10,910,487 | 52,897 | — | 12,622,006 | |||||||||||||||||
Equity securities | |||||||||||||||||||||
Common stocks | 25,658 | — | — | — | 25,658 | ||||||||||||||||
Exchange-traded funds | 427,633 | — | — | — | 427,633 | ||||||||||||||||
Bond mutual funds | — | 182,220 | — | — | 182,220 | ||||||||||||||||
453,291 | 182,220 | — | — | 635,511 | |||||||||||||||||
Other investments | |||||||||||||||||||||
Hedge funds(1) | — | — | — | 363,811 | 363,811 | ||||||||||||||||
Direct lending funds | — | — | — | 250,681 | 250,681 | ||||||||||||||||
Private equity funds | — | — | — | 68,812 | 68,812 | ||||||||||||||||
Real estate funds | — | — | — | 50,009 | 50,009 | ||||||||||||||||
Other privately held investments | — | — | 46,430 | — | 46,430 | ||||||||||||||||
CLO-Equities | — | — | 31,413 | — | 31,413 | ||||||||||||||||
Overseas deposits | — | 198,217 | — | — | 198,217 | ||||||||||||||||
— | 198,217 | 77,843 | 733,313 | 1,009,373 | |||||||||||||||||
Short-term investments | — | 83,661 | — | — | 83,661 | ||||||||||||||||
Other assets | |||||||||||||||||||||
Derivative instruments (see Note 8) | — | 5,125 | — | — | 5,125 | ||||||||||||||||
Insurance-linked securities | — | — | 25,090 | — | 25,090 | ||||||||||||||||
Total Assets | $ | 2,111,913 | $ | 11,379,710 | $ | 155,830 | $ | 733,313 | $ | 14,380,766 | |||||||||||
Liabilities | |||||||||||||||||||||
Derivative instruments (see Note 8) | $ | — | $ | 2,876 | $ | 11,510 | $ | — | $ | 14,386 | |||||||||||
Cash settled awards (see Note 16) | — | 21,535 | — | — | 21,535 | ||||||||||||||||
Total Liabilities | $ | — | $ | 24,411 | $ | 11,510 | $ | — | $ | 35,921 | |||||||||||
Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Fair value based on NAV practical expedient | Total fair value | |||||||||||||||||
At December 31, 2019 | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||
U.S. government and agency | $ | 2,053,622 | $ | 59,259 | $ | — | $ | — | $ | 2,112,881 | |||||||||||
Non-U.S. government | — | 576,592 | — | — | 576,592 | ||||||||||||||||
Corporate debt | — | 4,927,957 | 2,297 | — | 4,930,254 | ||||||||||||||||
Agency RMBS | — | 1,592,584 | — | — | 1,592,584 | ||||||||||||||||
CMBS | — | 1,359,817 | 5,235 | — | 1,365,052 | ||||||||||||||||
Non-Agency RMBS | — | 84,922 | — | — | 84,922 | ||||||||||||||||
ABS | — | 1,598,204 | 489 | — | 1,598,693 | ||||||||||||||||
Municipals | — | 207,227 | — | — | 207,227 | ||||||||||||||||
2,053,622 | 10,406,562 | 8,021 | — | 12,468,205 | |||||||||||||||||
Equity securities | |||||||||||||||||||||
Common stocks | 193 | — | — | — | 193 | ||||||||||||||||
Exchange-traded funds | 297,325 | — | — | — | 297,325 | ||||||||||||||||
Bond mutual funds | — | 176,689 | — | — | 176,689 | ||||||||||||||||
297,518 | 176,689 | — | — | 474,207 | |||||||||||||||||
Other investments | |||||||||||||||||||||
Hedge funds(1) | — | — | — | 167,790 | 167,790 | ||||||||||||||||
Direct lending funds | — | — | — | 277,395 | 277,395 | ||||||||||||||||
Private equity funds | — | — | — | 80,412 | 80,412 | ||||||||||||||||
Real estate funds | — | — | — | 130,112 | 130,112 | ||||||||||||||||
Other privately held investments | — | — | 36,934 | — | 36,934 | ||||||||||||||||
CLO-Equities | — | — | 14,328 | — | 14,328 | ||||||||||||||||
Overseas deposits | — | 63,952 | — | — | 63,952 | ||||||||||||||||
— | 63,952 | 51,262 | 655,709 | 770,923 | |||||||||||||||||
Short-term investments | — | 38,471 | — | — | 38,471 | ||||||||||||||||
Other assets | |||||||||||||||||||||
Derivative instruments (refer to Note 7) | — | 3,174 | — | — | 3,174 | ||||||||||||||||
Total Assets | $ | 2,351,140 | $ | 10,688,848 | $ | 59,283 | $ | 655,709 | $ | 13,754,980 | |||||||||||
Liabilities | |||||||||||||||||||||
Derivative instruments (refer to Note 7) | $ | — | $ | 3,965 | $ | 9,672 | $ | — | $ | 13,637 | |||||||||||
Cash settled awards (refer to Note 16) | — | 21,731 | — | — | 21,731 | ||||||||||||||||
Total Liabilities | $ | — | $ | 25,696 | $ | 9,672 | $ | — | $ | 35,368 | |||||||||||
(1) | Includes Long/short equity |
FAIR VALUE MEASUREMENTS (CONTINUED) |
Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Fair value based on NAV practical expedient | Total fair value | |||||||||||||||||
At December 31, 2018 | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||
U.S. government and agency | $ | 1,480,466 | $ | 35,231 | $ | — | $ | — | $ | 1,515,697 | |||||||||||
Non-U.S. government | — | 493,016 | — | — | 493,016 | ||||||||||||||||
Corporate debt | — | 4,827,909 | 49,012 | — | 4,876,921 | ||||||||||||||||
Agency RMBS | — | 1,643,308 | — | — | 1,643,308 | ||||||||||||||||
CMBS | — | 1,073,396 | 19,134 | — | 1,092,530 | ||||||||||||||||
Non-Agency RMBS | — | 40,687 | — | — | 40,687 | ||||||||||||||||
ABS | — | 1,619,070 | 18,533 | — | 1,637,603 | ||||||||||||||||
Municipals | — | 135,585 | — | — | 135,585 | ||||||||||||||||
1,480,466 | 9,868,202 | 86,679 | — | 11,435,347 | |||||||||||||||||
Equity securities | |||||||||||||||||||||
Common stocks | 527 | — | — | — | 527 | ||||||||||||||||
Exchange-traded funds | 236,839 | — | — | — | 236,839 | ||||||||||||||||
Bond mutual funds | — | 144,267 | — | — | 144,267 | ||||||||||||||||
237,366 | 144,267 | — | — | 381,633 | |||||||||||||||||
Other investments | |||||||||||||||||||||
Hedge funds(1) | — | — | — | 194,598 | 194,598 | ||||||||||||||||
Direct lending funds | — | — | — | 274,478 | 274,478 | ||||||||||||||||
Private equity funds | — | — | — | 64,566 | 64,566 | ||||||||||||||||
Real estate funds | — | — | — | 84,202 | 84,202 | ||||||||||||||||
Other privately held investments | — | — | 44,518 | — | 44,518 | ||||||||||||||||
CLO-Equities | — | — | 21,271 | — | 21,271 | ||||||||||||||||
Overseas deposits | — | 104,154 | — | — | 104,154 | ||||||||||||||||
— | 104,154 | 65,789 | 617,844 | 787,787 | |||||||||||||||||
Short-term investments | — | 144,040 | — | — | 144,040 | ||||||||||||||||
Other assets | |||||||||||||||||||||
Derivative instruments (refer to Note 7) | — | 8,237 | — | — | 8,237 | ||||||||||||||||
Total Assets | $ | 1,717,832 | $ | 10,268,900 | $ | 152,468 | $ | 617,844 | $ | 12,757,044 | |||||||||||
Liabilities | |||||||||||||||||||||
Derivative instruments (refer to Note 7) | $ | — | $ | 4,223 | $ | 10,299 | $ | — | $ | 14,522 | |||||||||||
Cash settled awards (refer to Note 16) | — | 20,648 | — | — | 20,648 | ||||||||||||||||
Total Liabilities | $ | — | $ | 24,871 | $ | 10,299 | $ | — | $ | 35,170 | |||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Fair value based on NAV practical expedient | Total Fair Value | |||||||||||||||||
At December 31, 2016 | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||
U.S. government and agency | $ | 1,583,106 | $ | 72,963 | $ | — | $ | — | $ | 1,656,069 | |||||||||||
Non-U.S. government | — | 565,834 | — | — | 565,834 | ||||||||||||||||
Corporate debt | — | 4,524,868 | 75,875 | — | 4,600,743 | ||||||||||||||||
Agency RMBS | — | 2,465,135 | — | — | 2,465,135 | ||||||||||||||||
CMBS | — | 663,176 | 3,061 | — | 666,237 | ||||||||||||||||
Non-Agency RMBS | — | 56,921 | — | — | 56,921 | ||||||||||||||||
ABS | — | 1,204,750 | 17,464 | — | 1,222,214 | ||||||||||||||||
Municipals | — | 163,961 | — | — | 163,961 | ||||||||||||||||
1,583,106 | 9,717,608 | 96,400 | — | 11,397,114 | |||||||||||||||||
Equity securities | |||||||||||||||||||||
Common stocks | 78 | — | — | — | 78 | ||||||||||||||||
Exchange-traded funds | 514,707 | — | — | — | 514,707 | ||||||||||||||||
Bond mutual funds | — | 123,959 | — | — | 123,959 | ||||||||||||||||
514,785 | 123,959 | — | — | 638,744 | |||||||||||||||||
Other investments | |||||||||||||||||||||
Hedge funds(1) | — | — | — | 498,150 | 498,150 | ||||||||||||||||
Direct lending funds | — | — | — | 134,650 | 134,650 | ||||||||||||||||
Private equity funds | — | — | — | 81,223 | 81,223 | ||||||||||||||||
Real estate funds | — | — | — | 13,354 | 13,354 | ||||||||||||||||
Other privately held investments | — | — | 42,142 | — | 42,142 | ||||||||||||||||
CLO-Equities | — | — | 60,700 | — | 60,700 | ||||||||||||||||
Overseas deposits | — | — | — | — | — | ||||||||||||||||
— | — | 102,842 | 727,377 | 830,219 | |||||||||||||||||
Short-term investments | — | 127,461 | — | — | 127,461 | ||||||||||||||||
Other assets | |||||||||||||||||||||
Derivative instruments (see Note 8) | — | 14,365 | 2,532 | — | 16,897 | ||||||||||||||||
Insurance-linked securities | — | — | 25,023 | — | 25,023 | ||||||||||||||||
Total Assets | $ | 2,097,891 | $ | 9,983,393 | $ | 226,797 | $ | 727,377 | $ | 13,035,458 | |||||||||||
Liabilities | |||||||||||||||||||||
Derivative instruments (see Note 8) | $ | — | $ | 9,076 | $ | 6,500 | $ | — | $ | 15,576 | |||||||||||
Cash settled awards (see Note 16) | — | 48,432 | — | — | 48,432 | ||||||||||||||||
Total Liabilities | $ | — | $ | 57,508 | $ | 6,500 | $ | — | $ | 64,008 | |||||||||||
(1) | Includes Long/short equity |
FAIR VALUE MEASUREMENTS (CONTINUED) |
Fair Value | Valuation Technique | Unobservable Input | Range | Weighted Average | |||||
Other investments - CLO-Equities | $ | 29,604 | Discounted cash flow | Default rates | 3.8% | 3.8% | |||
Loss severity rate | 35% | 35% | |||||||
Collateral spreads | 3.0% | 3.0% | |||||||
Estimated maturity dates | 7 years | 7 years | |||||||
$ | 1,809 | Liquidation value | Fair value of collateral | 100% | 100% | ||||
Discount margin | 0.1% - 16.6% | 2.8% | |||||||
Other investments - Other privately held investments | $ | 46,430 | Discounted cash flow | Discount rate | 6.0% - 8.5% | 7.5% | |||
Derivatives - Other underwriting-related derivatives | $ | (11,510 | ) | Discounted cash flow | Discount rate | 2.4% | 2.4% | ||
Fair value | Valuation technique | Unobservable input | Range | Weighted average | |||||
Other investments - CLO-Equities | $ | 14,328 | Discounted cash flow | Default rates | 3.5% | 3.5% | |||
Loss severity rate | 35.0% | 35.0% | |||||||
Collateral spreads | 3.0% | 3.0% | |||||||
Estimated maturity dates | 7 years | 7 years | |||||||
Derivatives - Other underwriting-related derivatives | $ | (9,672 | ) | Discounted cash flow | Discount rate | 1.8% | 1.8% | ||
6. | FAIR VALUE MEASUREMENTS (CONTINUED) |
Opening Balance | Transfers into Level 3 | Transfers out of Level 3 | Included in net income(1) | Included in OCI (2) | Purchases | Sales | Settlements/ Distributions | Closing Balance | Change in unrealized investment gain/loss (3) | ||||||||||||||||||||||||||||||||
Year ended December 31, 2017 | |||||||||||||||||||||||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||||||||||||||||||
Corporate debt | $ | 75,875 | $ | 2,324 | $ | (2,721 | ) | $ | (503 | ) | $ | (1,524 | ) | $ | 17,062 | $ | (22,903 | ) | $ | (14,713 | ) | $ | 52,897 | $ | — | ||||||||||||||||
CMBS | 3,061 | — | — | — | — | — | — | (3,061 | ) | — | — | ||||||||||||||||||||||||||||||
ABS | 17,464 | — | (18,949 | ) | — | 1,485 | — | — | — | — | — | ||||||||||||||||||||||||||||||
96,400 | 2,324 | (21,670 | ) | (503 | ) | (39 | ) | 17,062 | (22,903 | ) | (17,774 | ) | 52,897 | — | |||||||||||||||||||||||||||
Other investments | |||||||||||||||||||||||||||||||||||||||||
Other privately held investments | 42,142 | — | — | 1,584 | — | 2,704 | — | — | 46,430 | 1,584 | |||||||||||||||||||||||||||||||
CLO-Equities | 60,700 | — | — | 2,558 | — | — | — | (31,845 | ) | 31,413 | 2,558 | ||||||||||||||||||||||||||||||
102,842 | — | — | 4,142 | — | 2,704 | — | (31,845 | ) | 77,843 | 4,142 | |||||||||||||||||||||||||||||||
Other assets | |||||||||||||||||||||||||||||||||||||||||
Derivative instruments | 2,532 | — | — | 653 | — | — | — | (3,185 | ) | — | — | ||||||||||||||||||||||||||||||
Insurance-linked securities | 25,023 | — | — | 67 | — | — | — | — | 25,090 | 67 | |||||||||||||||||||||||||||||||
27,555 | — | — | 720 | — | — | — | (3,185 | ) | 25,090 | 67 | |||||||||||||||||||||||||||||||
Total assets | $ | 226,797 | $ | 2,324 | $ | (21,670 | ) | $ | 4,359 | $ | (39 | ) | $ | 19,766 | $ | (22,903 | ) | $ | (52,804 | ) | $ | 155,830 | $ | 4,209 | |||||||||||||||||
Other liabilities | |||||||||||||||||||||||||||||||||||||||||
Derivative instruments | 6,500 | — | — | 9,320 | — | 12,472 | — | (16,782 | ) | 11,510 | (962 | ) | |||||||||||||||||||||||||||||
Total liabilities | $ | 6,500 | $ | — | $ | — | $ | 9,320 | $ | — | $ | 12,472 | $ | — | $ | (16,782 | ) | $ | 11,510 | $ | (962 | ) | |||||||||||||||||||
Year ended December 31, 2016 | |||||||||||||||||||||||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||||||||||||||||||
Corporate debt | $ | 38,518 | $ | 5,733 | $ | (4,955 | ) | $ | (1,037 | ) | $ | 1,296 | $ | 48,298 | $ | (4,371 | ) | $ | (7,607 | ) | $ | 75,875 | $ | — | |||||||||||||||||
CMBS | 10,922 | — | (2,516 | ) | — | (192 | ) | — | — | (5,153 | ) | 3,061 | — | ||||||||||||||||||||||||||||
ABS | — | — | — | — | (917 | ) | 18,381 | — | — | 17,464 | — | ||||||||||||||||||||||||||||||
49,440 | 5,733 | (7,471 | ) | (1,037 | ) | 187 | 66,679 | (4,371 | ) | (12,760 | ) | 96,400 | — | ||||||||||||||||||||||||||||
Other investments | |||||||||||||||||||||||||||||||||||||||||
Other privately held investments | — | — | — | (2,263 | ) | — | 44,405 | — | — | 42,142 | (2,263 | ) | |||||||||||||||||||||||||||||
CLO-Equities | 27,257 | 36,378 | — | 18,976 | — | — | — | (21,911 | ) | 60,700 | 18,976 | ||||||||||||||||||||||||||||||
27,257 | 36,378 | — | 16,713 | — | 44,405 | — | (21,911 | ) | 102,842 | 16,713 | |||||||||||||||||||||||||||||||
Other assets | |||||||||||||||||||||||||||||||||||||||||
Derivative instruments | 4,395 | — | — | 6,772 | — | 1,289 | — | (9,924 | ) | 2,532 | 1,200 | ||||||||||||||||||||||||||||||
Insurance-linked securities | 24,925 | — | — | 98 | — | — | — | — | 25,023 | 98 | |||||||||||||||||||||||||||||||
29,320 | — | — | 6,870 | — | 1,289 | — | (9,924 | ) | 27,555 | 1,298 | |||||||||||||||||||||||||||||||
Total assets | $ | 106,017 | $ | 42,111 | $ | (7,471 | ) | $ | 22,546 | $ | 187 | $ | 112,373 | $ | (4,371 | ) | $ | (44,595 | ) | $ | 226,797 | $ | 18,011 | ||||||||||||||||||
Other liabilities | |||||||||||||||||||||||||||||||||||||||||
Derivative instruments | 10,937 | — | — | 1,862 | — | 2,723 | — | (9,022 | ) | 6,500 | (654 | ) | |||||||||||||||||||||||||||||
Total liabilities | $ | 10,937 | $ | — | $ | — | $ | 1,862 | $ | — | $ | 2,723 | $ | — | $ | (9,022 | ) | $ | 6,500 | $ | (654 | ) | |||||||||||||||||||
Opening balance | Transfers into Level 3 | Transfers out of Level 3 | Included in net income(1) | Included in OCI (2) | Purchases | Sales | Settlements/ distributions | Closing balance | Change in unrealized gains/losses (3) | ||||||||||||||||||||||||||||||||
Year ended December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||||||||||||||||||
Corporate debt | $ | 49,012 | $ | — | $ | — | $ | 4,790 | $ | (4,168 | ) | $ | — | $ | (6,068 | ) | $ | (41,269 | ) | $ | 2,297 | $ | — | ||||||||||||||||||
CMBS | 19,134 | — | (7,077 | ) | — | 142 | — | — | (6,964 | ) | 5,235 | — | |||||||||||||||||||||||||||||
ABS | 18,533 | — | (18,230 | ) | — | 186 | — | — | — | 489 | — | ||||||||||||||||||||||||||||||
86,679 | — | (25,307 | ) | 4,790 | (3,840 | ) | — | (6,068 | ) | (48,233 | ) | 8,021 | — | ||||||||||||||||||||||||||||
Other investments | |||||||||||||||||||||||||||||||||||||||||
Other privately held investments | 44,518 | — | — | 18,092 | — | 22,500 | (48,176 | ) | — | 36,934 | 5,150 | ||||||||||||||||||||||||||||||
CLO-Equities | 21,271 | — | — | (199 | ) | — | — | — | (6,744 | ) | 14,328 | (199 | ) | ||||||||||||||||||||||||||||
65,789 | — | — | 17,893 | — | 22,500 | (48,176 | ) | (6,744 | ) | 51,262 | 4,951 | ||||||||||||||||||||||||||||||
Other assets | |||||||||||||||||||||||||||||||||||||||||
Insurance-linked securities | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Total assets | $ | 152,468 | $ | — | $ | (25,307 | ) | $ | 22,683 | $ | (3,840 | ) | $ | 22,500 | $ | (54,244 | ) | $ | (54,977 | ) | $ | 59,283 | $ | 4,951 | |||||||||||||||||
Other liabilities | |||||||||||||||||||||||||||||||||||||||||
Derivative instruments | 10,299 | — | — | (627 | ) | — | — | — | — | 9,672 | (627 | ) | |||||||||||||||||||||||||||||
Total liabilities | $ | 10,299 | $ | — | $ | — | $ | (627 | ) | $ | — | $ | — | $ | — | $ | — | $ | 9,672 | $ | (627 | ) | |||||||||||||||||||
Year ended December 31, 2018 | |||||||||||||||||||||||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||||||||||||||||||
Corporate debt | $ | 52,897 | $ | 2,935 | $ | (4,279 | ) | $ | (591 | ) | $ | 6,343 | $ | 10,267 | $ | (7,446 | ) | $ | (11,114 | ) | $ | 49,012 | $ | — | |||||||||||||||||
CMBS | — | 5,096 | — | — | (145 | ) | 17,200 | — | (3,017 | ) | 19,134 | — | |||||||||||||||||||||||||||||
ABS | — | 1,979 | — | — | (446 | ) | 17,000 | — | — | 18,533 | — | ||||||||||||||||||||||||||||||
52,897 | 10,010 | (4,279 | ) | (591 | ) | 5,752 | 44,467 | (7,446 | ) | (14,131 | ) | 86,679 | — | ||||||||||||||||||||||||||||
Other investments | |||||||||||||||||||||||||||||||||||||||||
Other privately held investments | 46,430 | — | — | (913 | ) | — | 3,110 | (4,109 | ) | — | 44,518 | (913 | ) | ||||||||||||||||||||||||||||
CLO-Equities | 31,413 | — | — | 6,627 | — | — | — | (16,769 | ) | 21,271 | 6,627 | ||||||||||||||||||||||||||||||
77,843 | — | — | 5,714 | — | 3,110 | (4,109 | ) | (16,769 | ) | 65,789 | 5,714 | ||||||||||||||||||||||||||||||
Other assets | |||||||||||||||||||||||||||||||||||||||||
Insurance-linked securities | 25,090 | — | — | (90 | ) | — | — | — | (25,000 | ) | — | — | |||||||||||||||||||||||||||||
25,090 | — | — | (90 | ) | — | — | — | (25,000 | ) | — | — | ||||||||||||||||||||||||||||||
Total assets | $ | 155,830 | $ | 10,010 | $ | (4,279 | ) | $ | 5,033 | $ | 5,752 | $ | 47,577 | $ | (11,555 | ) | $ | (55,900 | ) | $ | 152,468 | $ | 5,714 | ||||||||||||||||||
Other liabilities | |||||||||||||||||||||||||||||||||||||||||
Derivative instruments | 11,510 | — | — | (1,211 | ) | — | — | — | — | 10,299 | (1,211 | ) | |||||||||||||||||||||||||||||
Total liabilities | $ | 11,510 | $ | — | $ | — | $ | (1,211 | ) | $ | — | $ | — | $ | — | $ | — | $ | 10,299 | $ | (1,211 | ) | |||||||||||||||||||
(1) |
(2) |
(3) | Change in unrealized |
6. | FAIR VALUE MEASUREMENTS (CONTINUED) |
FAIR VALUE MEASUREMENTS (CONTINUED) |
7. | DERIVATIVE INSTRUMENTS |
At December 31, 2019 | At December 31, 2018 | ||||||||||||||||||||||||
Derivative notional amount | Asset derivative fair value(1) | Liability derivative fair value(1) | Derivative notional amount | Asset derivative fair value(1) | Liability derivative fair value(1) | ||||||||||||||||||||
Relating to investment portfolio: | |||||||||||||||||||||||||
Foreign exchange forward contracts | $ | 68,998 | $ | — | $ | 1,405 | $ | 79,336 | $ | 262 | $ | 531 | |||||||||||||
Interest rate swaps | — | — | — | 150,000 | — | 1,116 | |||||||||||||||||||
Relating to underwriting portfolio: | |||||||||||||||||||||||||
Foreign exchange forward contracts | 1,038,630 | 3,174 | 2,560 | 737,419 | 7,975 | 2,576 | |||||||||||||||||||
Other underwriting-related contracts | 85,000 | — | 9,672 | 85,000 | — | 10,299 | |||||||||||||||||||
Total derivatives | $ | 3,174 | $ | 13,637 | $ | 8,237 | $ | 14,522 | |||||||||||||||||
(1) | Asset and liability derivatives are classified within other assets and other liabilities in the consolidated balance sheets. |
At December 31, 2017 | At December 31, 2016 | ||||||||||||||||||||||||
Derivative Notional Amount | Asset Derivative Fair Value(1) | Liability Derivative Fair Value(1) | Derivative Notional Amount | Asset Derivative Fair Value(1) | Liability Derivative Fair Value(1) | ||||||||||||||||||||
Relating to investment portfolio: | |||||||||||||||||||||||||
Foreign exchange forward contracts | $ | 137,422 | $ | 10 | $ | 619 | $ | 195,979 | $ | 12,331 | $ | 87 | |||||||||||||
Interest rate swaps | 191,000 | 448 | 1,556 | — | — | — | |||||||||||||||||||
Relating to underwriting portfolio: | |||||||||||||||||||||||||
Foreign exchange forward contracts | 698,959 | 4,667 | 701 | 492,899 | 2,034 | 8,989 | |||||||||||||||||||
Weather-related contracts | — | — | — | 67,957 | 2,532 | 6,500 | |||||||||||||||||||
Commodity contracts | — | — | — | — | — | — | |||||||||||||||||||
Other underwriting-related contracts | 85,000 | — | 11,510 | — | — | — | |||||||||||||||||||
Total derivatives | $ | 5,125 | $ | 14,386 | $ | 16,897 | $ | 15,576 | |||||||||||||||||
December 31, 2017 | December 31, 2016 | ||||||||||||||||||||
Gross Amounts | Gross Amounts Offset | Net Amounts(1) | Gross Amounts | Gross Amounts Offset | Net Amounts(1) | ||||||||||||||||
Derivative assets | $ | 8,178 | $ | (3,053 | ) | $ | 5,125 | $ | 22,270 | $ | (5,373 | ) | $ | 16,897 | |||||||
Derivative liabilities | $ | 17,439 | $ | (3,053 | ) | $ | 14,386 | $ | 20,949 | $ | (5,373 | ) | $ | 15,576 | |||||||
December 31, 2019 | December 31, 2018 | ||||||||||||||||||||
Gross amounts | Gross amounts offset | Net amounts(1) | Gross amounts | Gross amounts offset | Net amounts(1) | ||||||||||||||||
Derivative assets | $ | 7,673 | $ | (4,499 | ) | $ | 3,174 | $ | 11,967 | $ | (3,730 | ) | $ | 8,237 | |||||||
Derivative liabilities | $ | 18,136 | $ | (4,499 | ) | $ | 13,637 | $ | 18,252 | $ | (3,730 | ) | $ | 14,522 | |||||||
(1) | Net asset and liability derivatives are classified within other assets and other liabilities |
DERIVATIVE INSTRUMENTS (CONTINUED) |
a) | Relating to Investment Portfolio |
b) | Relating to Underwriting Portfolio |
DERIVATIVE INSTRUMENTS (CONTINUED) |
Location of gain (loss) recognized in net income | Amount of gain (loss) recognized in net income | |||||||||||||
2019 | 2018 | 2017 | ||||||||||||
Relating to investment portfolio: | ||||||||||||||
Foreign exchange forward contracts | Net investment gains (losses) | $ | 1,854 | $ | 3,446 | $ | (6,935 | ) | ||||||
Interest rate swaps | Net investment gains (losses) | (3,677 | ) | 1,999 | (1,334 | ) | ||||||||
Relating to underwriting portfolio: | ||||||||||||||
Foreign exchange forward contracts | Foreign exchange gains (losses) | (10,678 | ) | (3,509 | ) | 25,383 | ||||||||
Weather-related contracts | Other insurance related income (losses) | — | — | (9,629 | ) | |||||||||
Other underwriting-related contracts | Other insurance related income | 1,789 | 2,384 | 1,476 | ||||||||||
Total | $ | (10,712 | ) | $ | 4,320 | $ | 8,961 | |||||||
Location of Gain (Loss) Recognized in Income on Derivative | Amount of Gain (Loss) Recognized in Income on Derivative | |||||||||||||
2017 | 2016 | 2015 | ||||||||||||
Relating to investment portfolio: | ||||||||||||||
Foreign exchange forward contracts | Net realized investment gains (losses) | $ | (6,935 | ) | $ | 10,929 | $ | 11,265 | ||||||
Interest rate swaps | Net realized investment gains (losses) | (1,334 | ) | — | (4,006 | ) | ||||||||
Relating to underwriting portfolio: | ||||||||||||||
Foreign exchange forward contracts | Foreign exchange gains (losses) | 25,383 | (8,179 | ) | (25,412 | ) | ||||||||
Weather-related contracts | Other insurance related income (loss) | (9,629 | ) | 4,910 | (3,005 | ) | ||||||||
Commodity contracts | Other insurance related income (loss) | — | (2,382 | ) | (1,814 | ) | ||||||||
Other underwriting-related contracts | Other insurance related income (loss) | 1,476 | — | — | ||||||||||
Total | $ | 8,961 | $ | 5,278 | $ | (22,972 | ) | |||||||
RESERVE FOR LOSSES AND LOSS EXPENSES |
Insurance | ||||||||||
Reserve class and tail | ||||||||||
Property and other | Marine | Aviation | Credit and | Professional | Liability | |||||
Short | Short/Medium | Medium | Medium | Long | |||||||
of business | |||||||||||
Property | X | ||||||||||
Marine | X | ||||||||||
Terrorism | X | ||||||||||
X | |||||||||||
Credit and political risk | X | ||||||||||
Professional lines | X | ||||||||||
Liability | X | ||||||||||
Accident and health | X | ||||||||||
Discontinued lines - Novae | X | X | X |
8. | RESERVE FOR LOSSES AND LOSS EXPENSES (CONTINUED) |
Reinsurance segment | |||||||||||
Reserve class and tail | |||||||||||
Property and other | Credit and surety | Professional | Liability | ||||||||
Short | Medium | Medium | Long | Long | |||||||
Reported lines of business | |||||||||||
Catastrophe | X | ||||||||||
Property | X | ||||||||||
Credit and surety | X | ||||||||||
Professional lines | X | ||||||||||
Motor | X | ||||||||||
Liability | X | ||||||||||
Engineering | X | ||||||||||
Agriculture | X | ||||||||||
Marine and other | X | ||||||||||
Accident and health | X | ||||||||||
Discontinued lines - Novae | X | X | X |
• | Expected Loss Ratio Method ("ELR Method"): This method estimates ultimate losses for an accident year or underwriting year by applying an expected loss ratio to the earned or written premium for that year. Generally, expected loss ratios are based on one or more of (a) an analysis of historical loss experience to date, (b) pricing information and (c) industry data, adjusted as appropriate, to reflect changes in rates, loss and exposure trends, and terms and conditions. This method is insensitive to actual incurred losses for the accident year or underwriting year in question and is, therefore, often useful in the early stages of development when very few losses have been incurred. Conversely, the lack of sensitivity to incurred/paid losses for the accident year or underwriting year in question means that |
• | Loss Development Method (also referred to as the "Chain Ladder Method" or "Link Ratio Method"): This method assumes that the losses incurred/paid for each accident year or underwriting year at a particular development stage follow a relatively similar pattern. It assumes that on average, every accident year or underwriting year will display the same percentage of ultimate losses incurred/paid at the same point in time after the inception of that year. The percentages incurred/paid are established for each development stage (e.g. 12 months, 24 months, etc.) after examining averages from historical loss development data and/or external industry benchmark information. Ultimate losses are then estimated by multiplying the actual incurred/paid losses by the reciprocal of the established incurred/paid percentage. The strengths of this method are that it reacts to loss emergence/payments and that it makes full use of historical claim emergence/payment experience. However, this method has weaknesses when the underlying assumption of stable loss development/payment patterns is not valid. This could be the consequence of changes in business mix, claim inflation trends or claim reporting practices and/or the presence of large claims, among other things. Furthermore, this method |
8. | RESERVE FOR LOSSES AND LOSS EXPENSES (CONTINUED) |
• | Bornhuetter-Ferguson Method ("BF Method"): This method can be seen as a combination of the ELR and Loss Development Methods, under which the Loss Development Method is given progressively more weight as an accident year or underwriting year matures. The main advantage of the BF Method is that it provides a more stable estimate of ultimate losses than the Loss Development Method at earlier stages of development, while remaining more responsive to emerging loss development than the ELR Method. In addition, the BF Method allows for the incorporation of external market information through the use of expected loss ratios, whereas the Loss Development Method does not incorporate such information. |
8. | RESERVE FOR LOSSES AND LOSS EXPENSES (CONTINUED) |
8. | RESERVE FOR LOSSES AND LOSS EXPENSES (CONTINUED) |
As of December 31, | 2017 | 2016 | |||||||
Reserve for reported losses and loss expenses | $ | 5,137,659 | $ | 3,358,514 | |||||
Reserve for losses incurred but not reported | 7,859,894 | 6,339,313 | |||||||
Reserve for losses and loss expenses | $ | 12,997,553 | $ | 9,697,827 | |||||
RESERVE FOR LOSSES AND LOSS EXPENSES (CONTINUED) |
At December 31, | 2019 | 2018 | |||||||
Reserve for reported losses and loss expenses | $ | 4,860,916 | $ | 4,626,204 | |||||
Reserve for losses incurred but not reported | 7,891,165 | 7,654,565 | |||||||
Reserve for losses and loss expenses | $ | 12,752,081 | $ | 12,280,769 | |||||
Year ended December 31, | 2019 | 2018 | 2017 | ||||||||||
Gross reserve for losses and loss expenses, beginning of year | $ | 12,280,769 | $ | 12,997,553 | $ | 9,697,827 | |||||||
Less reinsurance recoverable on unpaid losses, beginning of year | (3,501,669 | ) | (3,159,514 | ) | (2,276,109 | ) | |||||||
Net reserve for unpaid losses and loss expenses, beginning of year | 8,779,100 | 9,838,039 | 7,421,718 | ||||||||||
Net incurred losses and loss expenses related to: | |||||||||||||
Current year | 3,123,698 | 3,389,949 | 3,487,826 | ||||||||||
Prior years | (78,900 | ) | (199,662 | ) | (200,054 | ) | |||||||
3,044,798 | 3,190,287 | 3,287,772 | |||||||||||
Net paid losses and loss expenses related to: | |||||||||||||
Current year | (598,988 | ) | (724,199 | ) | (703,796 | ) | |||||||
Prior years | (2,371,637 | ) | (2,368,615 | ) | (1,880,882 | ) | |||||||
(2,970,625 | ) | (3,092,814 | ) | (2,584,678 | ) | ||||||||
Foreign exchange and other | 21,052 | (1,156,412 | ) | 1,713,227 | |||||||||
Net reserve for unpaid losses and loss expenses, end of year | 8,874,325 | 8,779,100 | 9,838,039 | ||||||||||
Reinsurance recoverable on unpaid losses, end of year | 3,877,756 | 3,501,669 | 3,159,514 | ||||||||||
Gross reserve for losses and loss expenses, end of year | $ | 12,752,081 | $ | 12,280,769 | $ | 12,997,553 | |||||||
Year ended December 31, | 2017 | 2016 | 2015 | ||||||||||
Gross reserve for losses and loss expenses, beginning of year | $ | 9,697,827 | $ | 9,646,285 | $ | 9,596,797 | |||||||
Less reinsurance recoverable on unpaid losses, beginning of year | (2,276,109 | ) | (2,031,309 | ) | (1,890,280 | ) | |||||||
Net reserve for unpaid losses and loss expenses, beginning of year | 7,421,718 | 7,614,976 | 7,706,517 | ||||||||||
Net incurred losses and loss expenses related to: | |||||||||||||
Current year | 3,487,826 | 2,496,574 | 2,419,247 | ||||||||||
Prior years | (200,054 | ) | (292,377 | ) | (243,048 | ) | |||||||
3,287,772 | 2,204,197 | 2,176,199 | |||||||||||
Net paid losses and loss expenses related to: | |||||||||||||
Current year | (703,796 | ) | (428,153 | ) | (343,063 | ) | |||||||
Prior years | (1,880,882 | ) | (1,763,696 | ) | (1,709,659 | ) | |||||||
(2,584,678 | ) | (2,191,849 | ) | (2,052,722 | ) | ||||||||
Foreign exchange and other | 1,713,227 | (205,606 | ) | (215,018 | ) | ||||||||
Net reserve for unpaid losses and loss expenses, end of year | 9,838,039 | 7,421,718 | 7,614,976 | ||||||||||
Reinsurance recoverable on unpaid losses, end of year | 3,159,514 | 2,276,109 | 2,031,309 | ||||||||||
Gross reserve for losses and loss expenses, end of year | $ | 12,997,553 | $ | 9,697,827 | $ | 9,646,285 | |||||||
8. | RESERVE FOR LOSSES AND LOSS EXPENSES (CONTINUED) |
Insurance | Reinsurance | Total | |||||||||||
Year ended December 31, 2017 | $ | 48,969 | $ | 151,085 | $ | 200,054 | |||||||
Year ended December 31, 2016 | 55,905 | 236,472 | 292,377 | ||||||||||
Year ended December 31, 2015 | 23,447 | 219,601 | 243,048 | ||||||||||
8. | RESERVE FOR LOSSES AND LOSS EXPENSES (CONTINUED) |
Insurance | Reinsurance | Total | |||||||||||
Year ended December 31, 2019 | $ | 53,302 | $ | 25,598 | $ | 78,900 | |||||||
Year ended December 31, 2018 | 92,806 | 106,856 | 199,662 | ||||||||||
Year ended December 31, 2017 | 60,459 | 139,595 | 200,054 | ||||||||||
8. | RESERVE FOR LOSSES AND LOSS EXPENSES (CONTINUED) |
8. | RESERVE FOR LOSSES AND LOSS EXPENSES (CONTINUED) |
8. | RESERVE FOR LOSSES AND LOSS EXPENSES (CONTINUED) |
Insurance property and other | ||||||||||||||||||||||||||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | At December 31, 2019 | |||||||||||||||||||||||||||||||||
For the years ended December 31, | Total of incurred-but-not-reported liabilities plus expected development on reported claims | Cumulative number of reported claims | ||||||||||||||||||||||||||||||||
Accident year | 2010 unaudited | 2011 unaudited | 2012 unaudited | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 | ||||||||||||||||||||||||
2010 | $ | 173,118 | $ | 155,512 | $ | 148,126 | $ | 122,897 | $ | 117,406 | $ | 116,477 | $ | 116,172 | $ | 115,712 | $ | 114,614 | $ | 114,355 | $ | 684 | 4,423 | |||||||||||
2011 | 348,001 | 327,787 | 307,305 | 286,896 | 283,852 | 282,663 | 283,096 | 281,389 | 280,491 | (18 | ) | 6,350 | ||||||||||||||||||||||
2012 | 391,031 | 400,995 | 383,228 | 363,171 | 358,598 | 352,879 | 352,048 | 342,017 | 497 | 29,931 | ||||||||||||||||||||||||
2013 | 309,937 | 299,498 | 272,642 | 268,704 | 268,350 | 278,790 | 275,074 | 1,505 | 53,191 | |||||||||||||||||||||||||
2014 | 360,874 | 355,495 | 344,878 | 329,251 | 328,252 | 326,638 | 3,990 | 62,356 | ||||||||||||||||||||||||||
2015 | 278,554 | 270,793 | 259,725 | 255,392 | 252,560 | 4,077 | 48,424 | |||||||||||||||||||||||||||
2016 | 351,075 | 377,820 | 369,508 | 356,353 | 6,011 | 93,717 | ||||||||||||||||||||||||||||
2017 | 885,486 | 829,016 | 808,602 | 2,992 | 697,983 | |||||||||||||||||||||||||||||
2018 | 721,266 | 759,300 | 41,900 | 705,592 | ||||||||||||||||||||||||||||||
2019 | 429,987 | 113,754 | 445,460 | |||||||||||||||||||||||||||||||
Total | $ | 3,945,377 | ||||||||||||||||||||||||||||||||
Insurance property and other | ||||||||||||||||||||||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | ||||||||||||||||||||||||||||||
For the years ended December 31, | ||||||||||||||||||||||||||||||
Accident year | 2010 unaudited | 2011 unaudited | 2012 unaudited | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 | ||||||||||||||||||||
2010 | $ | 48,995 | $ | 87,604 | $ | 95,726 | $ | 106,531 | $ | 110,745 | $ | 110,819 | $ | 110,612 | $ | 110,656 | $ | 110,990 | $ | 110,970 | ||||||||||
2011 | 85,346 | 193,949 | 250,251 | 272,530 | 271,483 | 271,287 | 271,960 | 272,402 | 272,372 | |||||||||||||||||||||
2012 | 77,461 | 213,961 | 277,909 | 300,845 | 308,368 | 313,529 | 313,602 | 315,703 | ||||||||||||||||||||||
2013 | 75,831 | 198,955 | 237,714 | 248,746 | 259,787 | 262,819 | 264,607 | |||||||||||||||||||||||
2014 | 132,872 | 259,679 | 306,221 | 313,360 | 317,697 | 318,866 | ||||||||||||||||||||||||
2015 | 99,120 | 202,649 | 227,237 | 241,586 | 242,270 | |||||||||||||||||||||||||
2016 | 123,640 | 289,711 | 329,709 | 338,243 | ||||||||||||||||||||||||||
2017 | 253,400 | 628,364 | 744,285 | |||||||||||||||||||||||||||
2018 | 284,651 | 577,243 | ||||||||||||||||||||||||||||
2019 | 187,430 | |||||||||||||||||||||||||||||
Total | 3,371,989 | |||||||||||||||||||||||||||||
All outstanding liabilities before 2010, net of reinsurance | 6,225 | |||||||||||||||||||||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ | 579,613 | ||||||||||||||||||||||||||||
RESERVE FOR LOSSES AND LOSS EXPENSES (CONTINUED) |
Insurance property and other | |||||||||
Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited) | |||||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
35.0% | 40.9% | 13.7% | 5.5% | 1.9% | 0.6% | 0.2% | 0.3% | 0.2% | —% |
Insurance Property and Other | ||||||||||||||||||||||||||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | At December 31, 2017 | |||||||||||||||||||||||||||||||||
For the Years Ended December 31, | Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | Cumulative Number of Reported Claims | ||||||||||||||||||||||||||||||||
Accident Year | 2008 Unaudited | 2009 Unaudited | 2010 Unaudited | 2011 Unaudited | 2012 Unaudited | 2013 Unaudited | 2014 Unaudited | 2015 Unaudited | 2016 | 2017 | ||||||||||||||||||||||||
2008 | $ | 312,164 | $ | 260,206 | $ | 251,722 | $ | 242,139 | $ | 226,472 | $ | 225,007 | $ | 220,616 | $ | 218,851 | $ | 217,846 | $ | 216,806 | $ | 982 | 1,573 | |||||||||||
2009 | 117,662 | 99,367 | 89,993 | 82,683 | 80,718 | 78,501 | 78,720 | 78,368 | 78,623 | 971 | 1,483 | |||||||||||||||||||||||
2010 | 175,554 | 155,343 | 147,881 | 122,472 | 116,888 | 116,020 | 115,740 | 115,289 | 687 | 2,310 | ||||||||||||||||||||||||
2011 | 380,921 | 356,524 | 333,911 | 313,281 | 310,404 | 309,197 | 309,638 | 2,836 | 3,737 | |||||||||||||||||||||||||
2012 | 461,790 | 472,088 | 448,763 | 428,524 | 424,475 | 418,869 | 9,739 | 27,701 | ||||||||||||||||||||||||||
2013 | 419,392 | 414,394 | 387,093 | 381,550 | 380,800 | 6,117 | 51,238 | |||||||||||||||||||||||||||
2014 | 463,732 | 459,996 | 436,130 | 417,691 | 6,539 | 60,151 | ||||||||||||||||||||||||||||
2015 | 373,256 | 373,071 | 355,883 | 12,284 | 43,790 | |||||||||||||||||||||||||||||
2016 | 523,086 | 574,267 | 40,961 | 66,488 | ||||||||||||||||||||||||||||||
2017 | 939,565 | 333,630 | 237,332 | |||||||||||||||||||||||||||||||
Total | $ | 3,807,431 | ||||||||||||||||||||||||||||||||
Insurance Property and Other | ||||||||||||||||||||||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | ||||||||||||||||||||||||||||||
For the Years Ended December 31, | ||||||||||||||||||||||||||||||
Accident Year | 2008 Unaudited | 2009 Unaudited | 2010 Unaudited | 2011 Unaudited | 2012 Unaudited | 2013 Unaudited | 2014 Unaudited | 2015 Unaudited | 2016 | 2017 | ||||||||||||||||||||
2008 | $ | 76,558 | $ | 150,470 | $ | 172,320 | $ | 184,038 | $ | 211,002 | $ | 213,569 | $ | 215,628 | $ | 215,121 | $ | 215,071 | $ | 214,663 | ||||||||||
2009 | 31,379 | 60,166 | 68,768 | 72,622 | 73,538 | 74,636 | 76,865 | 77,187 | 77,466 | |||||||||||||||||||||
2010 | 48,624 | 87,059 | 95,747 | 106,593 | 110,785 | 110,934 | 110,709 | 110,763 | ||||||||||||||||||||||
2011 | 87,525 | 217,578 | 277,260 | 299,567 | 298,766 | 298,559 | 299,248 | |||||||||||||||||||||||
2012 | 107,358 | 278,870 | 343,503 | 366,854 | 374,485 | 379,696 | ||||||||||||||||||||||||
2013 | 129,157 | 304,207 | 347,531 | 361,209 | 372,338 | |||||||||||||||||||||||||
2014 | 169,961 | 341,023 | 393,868 | 401,482 | ||||||||||||||||||||||||||
2015 | 123,126 | 281,377 | 317,850 | |||||||||||||||||||||||||||
2016 | 174,455 | 442,007 | ||||||||||||||||||||||||||||
2017 | 314,839 | |||||||||||||||||||||||||||||
Total | 2,930,352 | |||||||||||||||||||||||||||||
All outstanding liabilities before 2008, net of reinsurance | 3,875 | |||||||||||||||||||||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ | 880,954 | ||||||||||||||||||||||||||||
Insurance Property and Other | |||||||||
Average annual percentage payout of incurred claims by age, net of reinsurance | |||||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
34.4% | 40.6% | 12.2% | 5.4% | 3.6% | 0.8% | 0.9% | 0.1% | 0.2% | (0.2)% |
Insurance marine | ||||||||||||||||||||||||||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | At December 31, 2019 | |||||||||||||||||||||||||||||||||
For the years ended December 31, | Total of incurred-but-not-reported liabilities plus expected development on reported claims | Cumulative number of reported claims | ||||||||||||||||||||||||||||||||
Accident year | 2010 unaudited | 2011 unaudited | 2012 unaudited | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 | ||||||||||||||||||||||||
2010 | $ | 68,519 | $ | 70,314 | $ | 66,359 | $ | 53,458 | $ | 51,482 | $ | 48,618 | $ | 47,226 | $ | 45,482 | $ | 45,064 | $ | 44,696 | $ | 262 | 3,197 | |||||||||||
2011 | 90,776 | 78,807 | 72,875 | 65,973 | 65,921 | 66,156 | 68,318 | 69,011 | 68,330 | 976 | 3,830 | |||||||||||||||||||||||
2012 | 89,712 | 83,138 | 69,075 | 71,211 | 72,238 | 74,797 | 73,002 | 62,447 | 2,718 | 4,134 | ||||||||||||||||||||||||
2013 | 79,578 | 100,757 | 96,164 | 97,250 | 82,487 | 82,073 | 81,070 | 1,174 | 2,353 | |||||||||||||||||||||||||
2014 | 59,686 | 44,576 | 48,586 | 44,420 | 46,030 | 47,574 | 4,249 | 2,163 | ||||||||||||||||||||||||||
2015 | 160,063 | 141,317 | 137,180 | 129,914 | 117,587 | 3,079 | 2,228 | |||||||||||||||||||||||||||
2016 | 86,386 | 78,762 | 76,511 | 71,161 | 4,020 | 2,841 | ||||||||||||||||||||||||||||
2017 | 173,222 | 170,775 | 166,796 | 27,726 | 3,976 | |||||||||||||||||||||||||||||
2018 | 182,232 | 191,005 | 45,347 | 4,232 | ||||||||||||||||||||||||||||||
2019 | 169,381 | 94,818 | 3,525 | |||||||||||||||||||||||||||||||
Total | $ | 1,020,047 | ||||||||||||||||||||||||||||||||
Insurance Marine | ||||||||||||||||||||||||||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | At December 31, 2017 | |||||||||||||||||||||||||||||||||
For the Years Ended December 31, | Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | Cumulative Number of Reported Claims | ||||||||||||||||||||||||||||||||
Accident Year | 2008 Unaudited | 2009 Unaudited | 2010 Unaudited | 2011 Unaudited | 2012 Unaudited | 2013 Unaudited | 2014 Unaudited | 2015 Unaudited | 2016 | 2017 | ||||||||||||||||||||||||
2008 | $ | 99,618 | $ | 106,731 | $ | 101,872 | $ | 100,793 | $ | 93,587 | $ | 87,201 | $ | 83,432 | $ | 83,051 | $ | 82,789 | $ | 82,848 | $ | 381 | 516 | |||||||||||
2009 | 80,665 | 74,298 | 69,932 | 64,601 | 57,213 | 55,027 | 53,622 | 52,523 | 52,428 | 528 | 477 | |||||||||||||||||||||||
2010 | 68,603 | 70,685 | 66,639 | 53,574 | 51,663 | 48,823 | 47,397 | 45,785 | 735 | 472 | ||||||||||||||||||||||||
2011 | 90,659 | 78,611 | 72,463 | 65,697 | 65,707 | 65,919 | 68,008 | 1,549 | 603 | |||||||||||||||||||||||||
2012 | 89,703 | 82,729 | 68,842 | 70,942 | 71,917 | 74,541 | 12,824 | 700 | ||||||||||||||||||||||||||
2013 | 80,034 | 101,276 | 96,722 | 97,777 | 83,064 | 4,121 | 733 | |||||||||||||||||||||||||||
2014 | 59,665 | 44,562 | 48,471 | 44,439 | 7,167 | 799 | ||||||||||||||||||||||||||||
2015 | 158,697 | 139,931 | 136,608 | 16,023 | 915 | |||||||||||||||||||||||||||||
2016 | 86,324 | 78,864 | 19,460 | 1,372 | ||||||||||||||||||||||||||||||
2017 | 74,639 | 48,739 | 1,772 | |||||||||||||||||||||||||||||||
Total | $ | 741,224 | ||||||||||||||||||||||||||||||||
RESERVE FOR LOSSES AND LOSS EXPENSES (CONTINUED) |
Insurance marine | ||||||||||||||||||||||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | ||||||||||||||||||||||||||||||
For the years ended December 31, | ||||||||||||||||||||||||||||||
Accident year | 2010 unaudited | 2011 unaudited | 2012 unaudited | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 | ||||||||||||||||||||
2010 | $ | 18,017 | $ | 28,603 | $ | 33,296 | $ | 42,325 | $ | 45,159 | $ | 45,944 | $ | 46,918 | $ | 43,286 | $ | 43,372 | $ | 43,377 | ||||||||||
2011 | 26,453 | 44,274 | 55,029 | 58,132 | 59,976 | 60,689 | 65,000 | 67,046 | 67,523 | |||||||||||||||||||||
2012 | 10,708 | 38,594 | 44,884 | 49,631 | 50,448 | 52,841 | 54,863 | 55,950 | ||||||||||||||||||||||
2013 | 18,856 | 43,958 | 54,777 | 63,034 | 65,717 | 76,753 | 76,900 | |||||||||||||||||||||||
2014 | 6,357 | 15,179 | 26,905 | 26,930 | 36,020 | 40,895 | ||||||||||||||||||||||||
2015 | 21,433 | 54,958 | 108,312 | 111,212 | 112,617 | |||||||||||||||||||||||||
2016 | 12,487 | 31,817 | 57,314 | 63,333 | ||||||||||||||||||||||||||
2017 | 14,515 | 68,411 | 92,773 | |||||||||||||||||||||||||||
2018 | 25,153 | 84,834 | ||||||||||||||||||||||||||||
2019 | 35,449 | |||||||||||||||||||||||||||||
Total | 673,651 | |||||||||||||||||||||||||||||
All outstanding liabilities before 2010, net of reinsurance | 4,296 | |||||||||||||||||||||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ | 350,692 | ||||||||||||||||||||||||||||
Insurance Marine | ||||||||||||||||||||||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | ||||||||||||||||||||||||||||||
For the Years Ended December 31, | ||||||||||||||||||||||||||||||
Accident Year | 2008 Unaudited | 2009 Unaudited | 2010 Unaudited | 2011 Unaudited | 2012 Unaudited | 2013 Unaudited | 2014 Unaudited | 2015 Unaudited | 2016 | 2017 | ||||||||||||||||||||
2008 | $ | 14,357 | $ | 52,697 | $ | 69,114 | $ | 77,203 | $ | 78,313 | $ | 82,043 | $ | 82,128 | $ | 82,259 | $ | 82,339 | $ | 82,344 | ||||||||||
2009 | 17,431 | 30,364 | 39,699 | 43,243 | 45,286 | 45,896 | 48,430 | 48,712 | 49,060 | |||||||||||||||||||||
2010 | 18,062 | 28,771 | 33,392 | 42,554 | 45,373 | 46,150 | 47,088 | 43,587 | ||||||||||||||||||||||
2011 | 26,417 | 44,168 | 54,874 | 57,972 | 59,816 | 60,523 | 64,750 | |||||||||||||||||||||||
2012 | 10,730 | 38,560 | 44,858 | 49,631 | 50,448 | 52,833 | ||||||||||||||||||||||||
2013 | 19,313 | 44,437 | 55,414 | 63,637 | 66,326 | |||||||||||||||||||||||||
2014 | 6,363 | 15,277 | 26,831 | 26,977 | ||||||||||||||||||||||||||
2015 | 21,467 | 54,845 | 108,071 | |||||||||||||||||||||||||||
2016 | 12,497 | 32,038 | ||||||||||||||||||||||||||||
2017 | 10,061 | |||||||||||||||||||||||||||||
Total | 536,047 | |||||||||||||||||||||||||||||
All outstanding liabilities before 2008, net of reinsurance | 8,213 | |||||||||||||||||||||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ | 213,390 | ||||||||||||||||||||||||||||
Insurance marine | |||||||||
Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited) | |||||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
21.1% | 29.2% | 21.3% | 7.7% | 5.7% | 6.1% | 3.0% | (1.1)% | 0.5% | —% |
Insurance Marine | |||||||||
Average annual percentage payout of incurred claims by age, net of reinsurance | |||||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
22.6% | 28.6% | 18.8% | 8.3% | 3.1% | 2.3% | 3.3% | (2.3)% | 0.4% | —% |
RESERVE FOR LOSSES AND LOSS EXPENSES (CONTINUED) |
Insurance Aviation | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance aviation | Insurance aviation | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | At December 31, 2017 | Incurred claims and allocated claim adjustment expenses, net of reinsurance | At December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Years Ended December 31, | Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | Cumulative Number of Reported Claims | For the years ended December 31, | Total of incurred-but-not-reported liabilities plus expected development on reported claims | Cumulative number of reported claims | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accident Year | 2008 Unaudited | 2009 Unaudited | 2010 Unaudited | 2011 Unaudited | 2012 Unaudited | 2013 Unaudited | 2014 Unaudited | 2015 Unaudited | 2016 | 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2008 | $ | 14,485 | $ | 12,021 | $ | 8,516 | $ | 8,354 | $ | 8,256 | $ | 7,108 | $ | 5,937 | $ | 5,851 | $ | 5,996 | $ | 5,905 | $ | 42 | 187 | |||||||||||||||||||||||||||||||||||||||||||||
2009 | 17,505 | 14,608 | 18,800 | 18,146 | 16,974 | 16,674 | 15,494 | 14,661 | 14,388 | 68 | 317 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accident year | 2010 unaudited | 2011 unaudited | 2012 unaudited | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 | Total of incurred-but-not-reported liabilities plus expected development on reported claims | Cumulative number of reported claims | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2010 | 12,939 | 11,729 | 11,460 | 9,791 | 8,807 | 8,739 | 8,784 | 8,574 | 131 | 521 | $ | 12,917 | $ | 11,698 | $ | 11,420 | $ | 9,745 | $ | 8,766 | $ | 8,695 | $ | 8,741 | $ | 8,525 | $ | 8,868 | $ | 8,836 | ||||||||||||||||||||||||||||||||||||||
2011 | 17,725 | 15,400 | 12,791 | 9,568 | 8,437 | 7,290 | 7,257 | 218 | 734 | 17,724 | 15,391 | 12,781 | 9,555 | 8,424 | 7,277 | 7,234 | 7,192 | 6,952 | 118 | 4,202 | ||||||||||||||||||||||||||||||||||||||||||||||||
2012 | 12,788 | 10,681 | 10,807 | 8,724 | 7,775 | 7,730 | 320 | 874 | 12,793 | 10,677 | 10,801 | 8,718 | 7,769 | 7,712 | 7,599 | 7,392 | 83 | 2,857 | ||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 15,656 | 16,344 | 15,221 | 15,264 | 15,579 | 542 | 1,027 | 15,652 | 16,330 | 15,205 | 15,249 | 15,585 | 15,470 | 16,763 | 255 | 3,017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 20,437 | 23,046 | 24,368 | 21,859 | 982 | 1,324 | 20,435 | 23,033 | 24,349 | 21,789 | 21,847 | 19,088 | 493 | 3,529 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2015 | 29,772 | 28,512 | 29,965 | 2,646 | 1,917 | 29,782 | 28,502 | 29,833 | 29,567 | 27,512 | 299 | 4,140 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2016 | 29,178 | 33,641 | 5,145 | 1,692 | 29,173 | 33,502 | 33,658 | 31,723 | 606 | 4,062 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | 24,752 | 12,737 | 1,177 | 55,581 | 62,035 | 66,896 | 3,747 | 4,272 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | 57,990 | 63,753 | 6,841 | 4,258 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 42,360 | 11,632 | 2,305 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 169,650 | Total | $ | 291,275 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance aviation | ||||||||||||||||||||||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | ||||||||||||||||||||||||||||||
For the years ended December 31, | ||||||||||||||||||||||||||||||
Accident year | 2010 unaudited | 2011 unaudited | 2012 unaudited | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 | ||||||||||||||||||||
2010 | $ | 1,032 | $ | 4,126 | $ | 6,309 | $ | 6,883 | $ | 7,548 | $ | 7,666 | $ | 8,109 | $ | 8,198 | $ | 8,391 | $ | 8,574 | ||||||||||
2011 | 639 | 2,822 | 4,513 | 5,030 | 5,564 | 5,814 | 6,035 | 6,177 | 6,222 | |||||||||||||||||||||
2012 | 954 | 2,861 | 4,152 | 5,948 | 6,831 | 7,053 | 7,166 | 7,102 | ||||||||||||||||||||||
2013 | 4,400 | 7,328 | 9,749 | 11,450 | 13,560 | 14,167 | 14,487 | |||||||||||||||||||||||
2014 | 3,988 | 8,023 | 11,692 | 13,849 | 14,485 | 14,848 | ||||||||||||||||||||||||
2015 | 8,085 | 16,159 | 20,959 | 23,217 | 24,676 | |||||||||||||||||||||||||
2016 | 10,412 | 19,279 | 26,259 | 27,820 | ||||||||||||||||||||||||||
2017 | 21,105 | 40,159 | 50,642 | |||||||||||||||||||||||||||
2018 | 21,442 | 40,368 | ||||||||||||||||||||||||||||
2019 | 16,856 | |||||||||||||||||||||||||||||
Total | 211,595 | |||||||||||||||||||||||||||||
All outstanding liabilities before 2010, net of reinsurance | 7,260 | |||||||||||||||||||||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ | 86,940 | ||||||||||||||||||||||||||||
Insurance Aviation | ||||||||||||||||||||||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | ||||||||||||||||||||||||||||||
For the Years Ended December 31, | ||||||||||||||||||||||||||||||
Accident Year | 2008 Unaudited | 2009 Unaudited | 2010 Unaudited | 2011 Unaudited | 2012 Unaudited | 2013 Unaudited | 2014 Unaudited | 2015 Unaudited | 2016 | 2017 | ||||||||||||||||||||
2008 | $ | 488 | $ | 2,063 | $ | 3,084 | $ | 3,666 | $ | 4,216 | $ | 4,487 | $ | 4,663 | $ | 5,269 | $ | 5,526 | $ | 5,519 | ||||||||||
2009 | 2,118 | 3,628 | 7,071 | 12,834 | 13,957 | 14,322 | 14,258 | 13,755 | 13,547 | |||||||||||||||||||||
2010 | 1,053 | 4,156 | 6,341 | 6,920 | 7,586 | 7,708 | 8,152 | 8,247 | ||||||||||||||||||||||
2011 | 639 | 2,830 | 4,521 | 5,040 | 5,576 | 5,826 | 6,056 | |||||||||||||||||||||||
2012 | 957 | 2,868 | 4,159 | 5,958 | 6,836 | 7,070 | ||||||||||||||||||||||||
2013 | 4,402 | 7,336 | 9,757 | 11,462 | 13,551 | |||||||||||||||||||||||||
2014 | 3,989 | 8,033 | 11,706 | 13,914 | ||||||||||||||||||||||||||
2015 | 8,090 | 16,177 | 21,095 | |||||||||||||||||||||||||||
2016 | 10,421 | 19,403 | ||||||||||||||||||||||||||||
2017 | 6,459 | |||||||||||||||||||||||||||||
Total | 114,861 | |||||||||||||||||||||||||||||
All outstanding liabilities before 2008, net of reinsurance | 1,611 | |||||||||||||||||||||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ | 56,400 | ||||||||||||||||||||||||||||
RESERVE FOR LOSSES AND LOSS EXPENSES (CONTINUED) |
Insurance aviation | |||||||||
Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited) | |||||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
24.8% | 27.4% | 19.4% | 10.4% | 8.1% | 2.7% | 2.9% | 0.7% | 1.4% | 2.1% |
Insurance Aviation | |||||||||
Average annual percentage payout of incurred claims by age, net of reinsurance | |||||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
18.7% | 24.4% | 19.4% | 15.5% | 9.5% | 3.0% | 2.8% | 2.6% | 1.5% | (0.1)% |
Insurance credit and political risk | ||||||||||||||||||||||||||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | At December 31, 2019 | |||||||||||||||||||||||||||||||||
For the years ended December 31, | Total of incurred-but-not-reported liabilities plus expected development on reported claims | Cumulative number of reported claims | ||||||||||||||||||||||||||||||||
Accident year | 2010 unaudited | 2011 unaudited | 2012 unaudited | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 | ||||||||||||||||||||||||
2010 | $ | 62,415 | $ | 63,179 | $ | 63,259 | $ | 65,597 | $ | 64,980 | $ | 65,014 | $ | 72,104 | $ | 90,888 | $ | 99,423 | $ | 99,633 | $ | 339 | 6 | |||||||||||
2011 | 58,154 | 48,665 | 47,706 | 48,361 | 48,333 | 45,036 | 33,609 | 27,904 | 27,904 | 268 | 4 | |||||||||||||||||||||||
2012 | 32,602 | 15,672 | 12,435 | 12,447 | 10,322 | 46 | 198 | 198 | 155 | 4 | ||||||||||||||||||||||||
2013 | 26,439 | 25,684 | 9,759 | 9,880 | 14,942 | 14,067 | 12,377 | 4,070 | 1 | |||||||||||||||||||||||||
2014 | 38,825 | 70,713 | 67,109 | 68,324 | 69,589 | 71,274 | 2,822 | 6 | ||||||||||||||||||||||||||
2015 | 30,329 | 30,368 | 27,524 | 26,012 | 25,930 | 2,621 | 2 | |||||||||||||||||||||||||||
2016 | 45,391 | 44,891 | 42,401 | 42,972 | 18,275 | 1 | ||||||||||||||||||||||||||||
2017 | 36,751 | 34,765 | 28,209 | 17,808 | 3 | |||||||||||||||||||||||||||||
2018 | 47,215 | 36,618 | 12,576 | 1 | ||||||||||||||||||||||||||||||
2019 | 50,609 | 33,702 | 5 | |||||||||||||||||||||||||||||||
Total | $ | 395,724 | ||||||||||||||||||||||||||||||||
Insurance Credit and Political Risk | ||||||||||||||||||||||||||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | At December 31, 2017 | |||||||||||||||||||||||||||||||||
For the Years Ended December 31, | Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | Cumulative Number of Reported Claims | ||||||||||||||||||||||||||||||||
Accident Year | 2008 Unaudited | 2009 Unaudited | 2010 Unaudited | 2011 Unaudited | 2012 Unaudited | 2013 Unaudited | 2014 Unaudited | 2015 Unaudited | 2016 | 2017 | ||||||||||||||||||||||||
2008 | $ | 52,993 | $ | 63,552 | $ | 48,715 | $ | 45,554 | $ | 45,551 | $ | 45,551 | $ | 45,600 | $ | 45,200 | $ | 44,410 | $ | 44,408 | $ | — | 9 | |||||||||||
2009 | 248,084 | 305,292 | 326,037 | 335,558 | 335,435 | 335,295 | 335,315 | 339,595 | 339,558 | 2,040 | 24 | |||||||||||||||||||||||
2010 | 62,415 | 63,179 | 63,259 | 65,598 | 64,981 | 65,015 | 72,105 | 90,885 | 13,200 | 6 | ||||||||||||||||||||||||
2011 | 58,154 | 48,665 | 47,706 | 48,361 | 48,333 | 45,036 | 33,604 | 5,973 | 4 | |||||||||||||||||||||||||
2012 | 32,602 | 15,672 | 12,435 | 12,447 | 10,322 | 47 | 5 | 4 | ||||||||||||||||||||||||||
2013 | 26,439 | 25,684 | 9,759 | 9,880 | 14,941 | 6,662 | 1 | |||||||||||||||||||||||||||
2014 | 38,825 | 70,713 | 67,109 | 68,321 | 10,466 | 6 | ||||||||||||||||||||||||||||
2015 | 30,329 | 30,368 | 27,513 | 4,215 | 2 | |||||||||||||||||||||||||||||
2016 | 47,250 | 43,983 | 20,194 | 1 | ||||||||||||||||||||||||||||||
2017 | 21,237 | 17,958 | 2 | |||||||||||||||||||||||||||||||
Total | $ | 684,497 | ||||||||||||||||||||||||||||||||
RESERVE FOR LOSSES AND LOSS EXPENSES (CONTINUED) |
Insurance credit and political risk | ||||||||||||||||||||||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | ||||||||||||||||||||||||||||||
For the years ended December 31, | ||||||||||||||||||||||||||||||
Accident year | 2010 unaudited | 2011 unaudited | 2012 unaudited | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 | ||||||||||||||||||||
2010 | $ | 50,000 | $ | 85,418 | $ | 90,729 | $ | 106,768 | $ | 101,789 | $ | 101,951 | $ | 102,157 | $ | 102,203 | $ | 102,522 | $ | 101,262 | ||||||||||
2011 | 32,788 | 37,205 | 27,636 | 27,636 | 27,636 | 27,636 | 27,636 | 27,636 | 27,636 | |||||||||||||||||||||
2012 | — | — | — | — | 39 | 41 | 43 | 43 | ||||||||||||||||||||||
2013 | 745 | 2,235 | 3,726 | 5,216 | 11,769 | 13,828 | 13,828 | |||||||||||||||||||||||
2014 | 1,924 | 39,952 | 61,108 | 57,858 | 57,858 | 64,050 | ||||||||||||||||||||||||
2015 | — | 23,309 | 23,309 | 23,309 | 23,309 | |||||||||||||||||||||||||
2016 | — | 24,697 | 24,697 | 24,697 | ||||||||||||||||||||||||||
2017 | 1,523 | 5,593 | 11,019 | |||||||||||||||||||||||||||
2018 | 4,937 | 13,545 | ||||||||||||||||||||||||||||
2019 | 15,528 | |||||||||||||||||||||||||||||
Total | 294,917 | |||||||||||||||||||||||||||||
All outstanding liabilities before 2010, net of reinsurance | (2,588 | ) | ||||||||||||||||||||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ | 98,219 | ||||||||||||||||||||||||||||
Insurance Credit and Political Risk | ||||||||||||||||||||||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | ||||||||||||||||||||||||||||||
For the Years Ended December 31, | ||||||||||||||||||||||||||||||
Accident Year | 2008 Unaudited | 2009 Unaudited | 2010 Unaudited | 2011 Unaudited | 2012 Unaudited | 2013 Unaudited | 2014 Unaudited | 2015 Unaudited | 2016 | 2017 | ||||||||||||||||||||
2008 | $ | — | $ | 69,217 | $ | 45,625 | $ | 45,638 | $ | 45,379 | $ | 45,379 | $ | 44,410 | $ | 44,410 | $ | 44,410 | $ | 44,161 | ||||||||||
2009 | 92,844 | 344,658 | 346,267 | 346,243 | 341,600 | 345,545 | 345,545 | 345,592 | 340,809 | |||||||||||||||||||||
2010 | 50,000 | 85,418 | 90,729 | 106,769 | 101,790 | 101,952 | 102,158 | 102,200 | ||||||||||||||||||||||
2011 | 32,788 | 37,205 | 27,636 | 27,636 | 27,636 | 27,636 | 27,631 | |||||||||||||||||||||||
2012 | — | — | — | — | 40 | 42 | ||||||||||||||||||||||||
2013 | 745 | 2,235 | 3,726 | 5,216 | 11,768 | |||||||||||||||||||||||||
2014 | 1,924 | 39,952 | 61,108 | 57,855 | ||||||||||||||||||||||||||
2015 | — | 23,309 | 23,298 | |||||||||||||||||||||||||||
2016 | — | 23,789 | ||||||||||||||||||||||||||||
2017 | — | |||||||||||||||||||||||||||||
Total | 631,553 | |||||||||||||||||||||||||||||
All outstanding liabilities before 2008, net of reinsurance | (1,475 | ) | ||||||||||||||||||||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ | 51,469 | ||||||||||||||||||||||||||||
Insurance credit and political risk | |||||||||
Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited) | |||||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
22.6% | 33.6% | 4.0% | 3.4% | 11.3% | 5.3% | 0.3% | —% | 0.2% | (1.3)% |
Insurance Credit and Political Risk | |||||||||
Average annual percentage payout of incurred claims by age, net of reinsurance | |||||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
18.8% | 54.1% | (4.3)% | 3.3% | 20.3% | 1.1% | (0.5)% | —% | (0.7)% | (0.6)% |
RESERVE FOR LOSSES AND LOSS EXPENSES (CONTINUED) |
Insurance professional lines | ||||||||||||||||||||||||||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | At December 31, 2019 | |||||||||||||||||||||||||||||||||
For the years ended December 31, | Total of incurred-but-not-reported liabilities plus expected development on reported claims | Cumulative number of reported claims | ||||||||||||||||||||||||||||||||
Accident year | 2010 unaudited | 2011 unaudited | 2012 unaudited | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 | ||||||||||||||||||||||||
2010 | $ | 232,002 | $ | 237,156 | $ | 234,655 | $ | 206,406 | $ | 183,237 | $ | 158,729 | $ | 180,704 | $ | 167,917 | $ | 187,464 | $ | 185,116 | $ | 17,194 | 5,698 | |||||||||||
2011 | 313,520 | 315,326 | 333,914 | 326,663 | 330,773 | 343,911 | 352,309 | 352,792 | 350,066 | 28,007 | 7,229 | |||||||||||||||||||||||
2012 | 328,397 | 375,164 | 376,603 | 375,549 | 362,534 | 364,443 | 353,182 | 351,283 | 34,964 | 8,326 | ||||||||||||||||||||||||
2013 | 383,432 | 396,819 | 398,059 | 364,851 | 354,190 | 356,261 | 334,398 | 49,144 | 9,439 | |||||||||||||||||||||||||
2014 | 412,523 | 411,232 | 421,093 | 391,952 | 371,407 | 353,994 | 76,580 | 9,802 | ||||||||||||||||||||||||||
2015 | 377,129 | 376,865 | 382,679 | 357,646 | 344,239 | 87,707 | 10,453 | |||||||||||||||||||||||||||
2016 | 349,030 | 351,990 | 358,368 | 359,813 | 105,971 | 11,763 | ||||||||||||||||||||||||||||
2017 | 378,746 | 397,760 | 437,528 | 197,748 | 13,418 | |||||||||||||||||||||||||||||
2018 | 361,490 | 374,683 | 217,867 | 15,584 | ||||||||||||||||||||||||||||||
2019 | 399,585 | 348,212 | 11,747 | |||||||||||||||||||||||||||||||
Total | $ | 3,490,705 | ||||||||||||||||||||||||||||||||
Insurance Professional Lines | ||||||||||||||||||||||||||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | At December 31, 2017 | |||||||||||||||||||||||||||||||||
For the Years Ended December 31, | Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | Cumulative Number of Reported Claims | ||||||||||||||||||||||||||||||||
Accident Year | 2008 Unaudited | 2009 Unaudited | 2010 Unaudited | 2011 Unaudited | 2012 Unaudited | 2013 Unaudited | 2014 Unaudited | 2015 Unaudited | 2016 | 2017 | ||||||||||||||||||||||||
2008 | $ | 238,550 | $ | 278,691 | $ | 280,842 | $ | 298,905 | $ | 296,499 | $ | 309,642 | $ | 329,458 | $ | 327,240 | $ | 326,192 | $ | 325,573 | $ | 9,175 | 4,558 | |||||||||||
2009 | 240,818 | 244,150 | 244,751 | 245,319 | 256,295 | 238,902 | 239,428 | 215,732 | 223,737 | 13,584 | 5,882 | |||||||||||||||||||||||
2010 | 231,232 | 236,578 | 234,334 | 205,801 | 182,713 | 158,946 | 181,232 | 168,632 | 26,396 | 5,669 | ||||||||||||||||||||||||
2011 | 313,858 | 315,654 | 333,321 | 326,255 | 330,562 | 343,782 | 352,406 | 50,239 | 7,211 | |||||||||||||||||||||||||
2012 | 329,769 | 375,557 | 377,277 | 376,604 | 364,423 | 366,725 | 70,219 | 8,279 | ||||||||||||||||||||||||||
2013 | 384,755 | 397,852 | 398,578 | 365,818 | 355,777 | 95,220 | 9,371 | |||||||||||||||||||||||||||
2014 | 411,690 | 412,288 | 423,087 | 394,470 | 157,747 | 9,650 | ||||||||||||||||||||||||||||
2015 | 377,652 | 377,725 | 383,959 | 186,383 | 9,862 | |||||||||||||||||||||||||||||
2016 | 349,268 | 352,414 | 220,770 | 10,728 | ||||||||||||||||||||||||||||||
2017 | 346,582 | 302,135 | 9,984 | |||||||||||||||||||||||||||||||
Total | $ | 3,270,275 | ||||||||||||||||||||||||||||||||
RESERVE FOR LOSSES AND LOSS EXPENSES (CONTINUED) |
Insurance professional lines | ||||||||||||||||||||||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | ||||||||||||||||||||||||||||||
For the years ended December 31, | ||||||||||||||||||||||||||||||
Accident year | 2010 unaudited | 2011 unaudited | 2012 unaudited | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 | ||||||||||||||||||||
2010 | $ | 7,807 | $ | 27,806 | $ | 53,493 | $ | 72,592 | $ | 88,558 | $ | 99,039 | $ | 109,540 | $ | 114,520 | $ | 136,510 | $ | 142,788 | ||||||||||
2011 | 7,402 | 32,897 | 74,461 | 108,598 | 165,806 | 238,401 | 283,510 | 294,678 | 302,151 | |||||||||||||||||||||
2012 | 7,818 | 41,328 | 100,089 | 184,191 | 230,913 | 253,958 | 273,383 | 281,715 | ||||||||||||||||||||||
2013 | 17,690 | 73,077 | 129,671 | 175,835 | 213,225 | 242,860 | 263,325 | |||||||||||||||||||||||
2014 | 23,529 | 70,662 | 130,039 | 192,405 | 223,838 | 242,899 | ||||||||||||||||||||||||
2015 | 20,197 | 67,725 | 137,738 | 169,555 | 203,542 | |||||||||||||||||||||||||
2016 | 15,859 | 71,245 | 147,370 | 192,459 | ||||||||||||||||||||||||||
2017 | 20,946 | 71,779 | 139,143 | |||||||||||||||||||||||||||
2018 | 20,091 | 81,986 | ||||||||||||||||||||||||||||
2019 | 25,911 | |||||||||||||||||||||||||||||
Total | 1,875,919 | |||||||||||||||||||||||||||||
All outstanding liabilities before 2010, net of reinsurance | 65,486 | |||||||||||||||||||||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ | 1,680,272 | ||||||||||||||||||||||||||||
Insurance Professional Lines | ||||||||||||||||||||||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | ||||||||||||||||||||||||||||||
For the Years Ended December 31, | ||||||||||||||||||||||||||||||
Accident Year | 2008 Unaudited | 2009 Unaudited | 2010 Unaudited | 2011 Unaudited | 2012 Unaudited | 2013 Unaudited | 2014 Unaudited | 2015 Unaudited | 2016 | 2017 | ||||||||||||||||||||
2008 | $ | 4,068 | $ | 22,325 | $ | 68,197 | $ | 124,681 | $ | 167,828 | $ | 189,339 | $ | 214,481 | $ | 249,321 | $ | 267,611 | $ | 268,487 | ||||||||||
2009 | 1,689 | 20,670 | 44,312 | 69,050 | 97,061 | 107,421 | 127,033 | 167,129 | 179,770 | |||||||||||||||||||||
2010 | 7,857 | 27,880 | 53,738 | 72,840 | 89,051 | 99,554 | 110,156 | 115,204 | ||||||||||||||||||||||
2011 | 6,782 | 32,351 | 74,224 | 108,470 | 165,755 | 238,523 | 283,718 | |||||||||||||||||||||||
2012 | 7,824 | 41,545 | 100,526 | 185,059 | 231,963 | 255,140 | ||||||||||||||||||||||||
2013 | 17,739 | 73,334 | 130,342 | 176,899 | 214,534 | |||||||||||||||||||||||||
2014 | 23,665 | 71,510 | 131,610 | 194,294 | ||||||||||||||||||||||||||
2015 | 20,403 | 68,400 | 138,967 | |||||||||||||||||||||||||||
2016 | 16,010 | 71,619 | ||||||||||||||||||||||||||||
2017 | 19,524 | |||||||||||||||||||||||||||||
Total | 1,741,257 | |||||||||||||||||||||||||||||
All outstanding liabilities before 2008, net of reinsurance | 30,546 | |||||||||||||||||||||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ | 1,559,564 | ||||||||||||||||||||||||||||
Insurance professional lines | |||||||||
Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited) | |||||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
4.7% | 12.8% | 16.6% | 13.9% | 11.4% | 9.5% | 7.6% | 2.8% | 7.0% | 3.4% |
Insurance Professional Lines | |||||||||
Average annual percentage payout of incurred claims by age, net of reinsurance | |||||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
3.7% | 10.9% | 14.7% | 14.5% | 12.5% | 8.9% | 8.9% | 10.5% | 5.6% | 0.3% |
RESERVE FOR LOSSES AND LOSS EXPENSES (CONTINUED) |
Insurance Liability | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance liability | Insurance liability | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | At December 31, 2017 | Incurred claims and allocated claim adjustment expenses, net of reinsurance | At December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Years Ended December 31, | Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | Cumulative Number of Reported Claims | For the years ended December 31, | Total of incurred-but-not-reported liabilities plus expected development on reported claims | Cumulative number of reported claims | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accident Year | 2008 Unaudited | 2009 Unaudited | 2010 Unaudited | 2011 Unaudited | 2012 Unaudited | 2013 Unaudited | 2014 Unaudited | 2015 Unaudited | 2016 | 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2008 | $ | 82,969 | $ | 79,836 | $ | 80,947 | $ | 81,785 | $ | 82,225 | $ | 81,949 | $ | 101,589 | $ | 102,444 | $ | 108,189 | $ | 94,165 | $ | 11,783 | 3,790 | |||||||||||||||||||||||||||||||||||||||||||||
2009 | 61,469 | 64,017 | 67,410 | 67,869 | 76,431 | 83,282 | 101,180 | 98,384 | 98,999 | 10,895 | 2,777 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accident year | 2010 unaudited | 2011 unaudited | 2012 unaudited | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 | Total of incurred-but-not-reported liabilities plus expected development on reported claims | Cumulative number of reported claims | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2010 | 79,401 | 94,231 | 98,648 | 98,134 | 99,596 | 98,086 | 105,145 | 104,296 | 12,681 | 2,206 | $ | 79,398 | $ | 94,222 | $ | 98,642 | $ | 98,853 | $ | 100,133 | $ | 98,529 | $ | 105,438 | $ | 104,465 | $ | 104,042 | $ | 107,420 | ||||||||||||||||||||||||||||||||||||||
2011 | 72,584 | 75,329 | 83,118 | 87,060 | 85,243 | 83,731 | 82,128 | 19,227 | 1,788 | 72,580 | 75,329 | 83,925 | 87,770 | 85,792 | 84,079 | 82,312 | 82,657 | 85,036 | 14,042 | 3,571 | ||||||||||||||||||||||||||||||||||||||||||||||||
2012 | 70,877 | 70,645 | 73,282 | 70,770 | 68,181 | 75,342 | 27,824 | 1,240 | 70,887 | 71,683 | 74,134 | 71,474 | 68,658 | 75,697 | 72,727 | 67,237 | 18,015 | 3,188 | ||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 92,153 | 94,182 | 94,258 | 87,502 | 93,221 | 24,296 | 1,562 | 93,233 | 95,306 | 95,174 | 88,241 | 93,681 | 95,981 | 91,941 | 16,997 | 3,568 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 106,166 | 122,686 | 128,568 | 130,035 | 41,151 | 2,440 | 107,133 | 124,303 | 129,764 | 130,672 | 132,019 | 131,474 | 22,710 | 4,865 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2015 | 127,321 | 126,047 | 136,615 | 61,944 | 3,317 | 128,437 | 127,353 | 137,568 | 165,073 | 183,088 | 43,822 | 6,225 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2016 | 123,259 | 129,225 | 90,482 | 3,811 | 124,323 | 130,188 | 128,911 | 127,528 | 53,401 | 7,068 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | 141,644 | 129,373 | 2,519 | 162,446 | 166,573 | 183,793 | 76,834 | 6,710 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | 168,146 | 167,614 | 95,288 | 5,454 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 191,121 | 165,431 | 3,714 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 1,085,670 | Total | $ | 1,336,252 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance liability | ||||||||||||||||||||||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | ||||||||||||||||||||||||||||||
For the years ended December 31, | ||||||||||||||||||||||||||||||
Accident year | 2010 unaudited | 2011 unaudited | 2012 unaudited | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 | ||||||||||||||||||||
2010 | $ | 1,030 | $ | 15,977 | $ | 30,800 | $ | 53,594 | $ | 61,044 | $ | 66,129 | $ | 71,803 | $ | 86,454 | $ | 88,007 | $ | 88,476 | ||||||||||
2011 | 2,761 | 10,540 | 20,190 | 38,377 | 46,074 | 54,996 | 60,261 | 62,150 | 67,114 | |||||||||||||||||||||
2012 | 1,663 | 5,514 | 15,411 | 30,145 | 37,139 | 42,740 | 46,540 | 48,034 | ||||||||||||||||||||||
2013 | 2,359 | 23,280 | 33,319 | 42,049 | 60,004 | 66,963 | 71,982 | |||||||||||||||||||||||
2014 | 1,414 | 18,640 | 49,836 | 71,595 | 84,374 | 93,574 | ||||||||||||||||||||||||
2015 | 5,438 | 22,392 | 39,637 | 92,664 | 120,216 | |||||||||||||||||||||||||
2016 | 6,319 | 23,280 | 36,385 | 56,446 | ||||||||||||||||||||||||||
2017 | 5,439 | 29,564 | 59,356 | |||||||||||||||||||||||||||
2018 | 9,027 | 35,612 | ||||||||||||||||||||||||||||
2019 | 7,337 | |||||||||||||||||||||||||||||
Total | 648,147 | |||||||||||||||||||||||||||||
All outstanding liabilities before 2010, net of reinsurance | 50,617 | |||||||||||||||||||||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ | 738,722 | ||||||||||||||||||||||||||||
Insurance Liability | ||||||||||||||||||||||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | ||||||||||||||||||||||||||||||
For the Years Ended December 31, | ||||||||||||||||||||||||||||||
Accident Year | 2008 Unaudited | 2009 Unaudited | 2010 Unaudited | 2011 Unaudited | 2012 Unaudited | 2013 Unaudited | 2014 Unaudited | 2015 Unaudited | 2016 | 2017 | ||||||||||||||||||||
2008 | $ | 1,906 | $ | 8,796 | $ | 18,507 | $ | 27,861 | $ | 37,408 | $ | 47,447 | $ | 51,776 | $ | 55,314 | $ | 61,618 | $ | 87,159 | ||||||||||
2009 | 726 | 4,646 | 13,305 | 26,754 | 31,865 | 41,323 | 44,105 | 83,991 | 84,427 | |||||||||||||||||||||
2010 | 1,029 | 15,986 | 30,809 | 53,604 | 61,055 | 66,140 | 71,814 | 86,471 | ||||||||||||||||||||||
2011 | 2,761 | 10,540 | 20,190 | 38,377 | 46,074 | 54,996 | 60,263 | |||||||||||||||||||||||
2012 | 1,631 | 5,515 | 15,412 | 30,146 | 37,140 | 42,745 | ||||||||||||||||||||||||
2013 | 2,363 | 23,285 | 33,324 | 42,055 | 60,021 | |||||||||||||||||||||||||
2014 | 1,419 | 18,662 | 49,858 | 71,630 | ||||||||||||||||||||||||||
2015 | 5,439 | 22,474 | 39,767 | |||||||||||||||||||||||||||
2016 | 6,332 | 23,335 | ||||||||||||||||||||||||||||
2017 | 4,243 | |||||||||||||||||||||||||||||
Total | 560,061 | |||||||||||||||||||||||||||||
All outstanding liabilities before 2008, net of reinsurance | 44,150 | |||||||||||||||||||||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ | 569,759 | ||||||||||||||||||||||||||||
RESERVE FOR LOSSES AND LOSS EXPENSES (CONTINUED) |
Insurance liability | |||||||||
Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited) | |||||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
3.1% | 12.9% | 13.8% | 19.3% | 11.8% | 7.6% | 5.7% | 6.0% | 3.6% | 0.4% |
Insurance Liability | |||||||||
Average annual percentage payout of incurred claims by age, net of reinsurance | |||||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
2.5% | 11.3% | 13.2% | 16.2% | 10.1% | 8.7% | 4.8% | 19.4% | 3.6% | 27.1% |
RESERVE FOR LOSSES AND LOSS EXPENSES (CONTINUED) |
Reinsurance property and other | |||||||||||||||||||||||||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | At December 31, 2019 | ||||||||||||||||||||||||||||||||
For the years ended December 31, | Total of incurred-but-not-reported liabilities plus expected development on reported claims | ||||||||||||||||||||||||||||||||
Accident year | 2010 unaudited | 2011 unaudited | 2012 unaudited | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 | |||||||||||||||||||||||
2010 | $ | 614,748 | $ | 601,243 | $ | 570,057 | $ | 581,838 | $ | 584,942 | $ | 578,740 | $ | 570,796 | $ | 568,725 | $ | 567,879 | $ | 566,112 | $ | 3,070 | |||||||||||
2011 | 1,111,563 | 1,116,669 | 1,116,042 | 1,084,197 | 1,067,100 | 1,041,136 | 1,039,379 | 1,040,759 | 1,041,771 | 7,782 | |||||||||||||||||||||||
2012 | 555,459 | 523,208 | 507,619 | 476,989 | 461,152 | 456,127 | 457,531 | 454,281 | 2,860 | ||||||||||||||||||||||||
2013 | 578,725 | 560,658 | 529,856 | 509,526 | 503,539 | 503,026 | 499,736 | 1,904 | |||||||||||||||||||||||||
2014 | 542,601 | 560,775 | 534,618 | 522,102 | 520,299 | 519,529 | 40,234 | ||||||||||||||||||||||||||
2015 | 477,301 | 464,588 | 459,487 | 454,225 | 450,182 | 6,030 | |||||||||||||||||||||||||||
2016 | 616,621 | 635,164 | 622,331 | 618,643 | 11,017 | ||||||||||||||||||||||||||||
2017 | 1,076,967 | 1,081,415 | 1,107,597 | 75,459 | |||||||||||||||||||||||||||||
2018 | 882,829 | 1,008,505 | 166,887 | ||||||||||||||||||||||||||||||
2019 | 959,771 | 729,042 | |||||||||||||||||||||||||||||||
Total | $ | 7,226,127 | |||||||||||||||||||||||||||||||
Reinsurance Property and Other | |||||||||||||||||||||||||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | At December 31, 2017 | ||||||||||||||||||||||||||||||||
For the Years Ended December 31, | Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | ||||||||||||||||||||||||||||||||
Accident Year | 2008 Unaudited | 2009 Unaudited | 2010 Unaudited | 2011 Unaudited | 2012 Unaudited | 2013 Unaudited | 2014 Unaudited | 2015 Unaudited | 2016 | 2017 | |||||||||||||||||||||||
2008 | $ | 677,556 | $ | 577,309 | $ | 593,015 | $ | 571,142 | $ | 557,060 | $ | 546,034 | $ | 529,918 | $ | 524,422 | $ | 523,154 | $ | 523,591 | $ | (224 | ) | ||||||||||
2009 | 344,543 | 288,510 | 250,630 | 237,339 | 230,351 | 209,335 | 203,261 | 205,145 | 202,300 | 1,018 | |||||||||||||||||||||||
2010 | 619,241 | 610,563 | 580,601 | 594,238 | 597,427 | 591,331 | 583,563 | 581,616 | 4,587 | ||||||||||||||||||||||||
2011 | 1,092,977 | 1,105,962 | 1,105,415 | 1,064,864 | 1,047,944 | 1,022,452 | 1,020,771 | 8,207 | |||||||||||||||||||||||||
2012 | 488,776 | 456,173 | 445,932 | 415,327 | 399,193 | 394,332 | 6,544 | ||||||||||||||||||||||||||
2013 | 475,162 | 452,433 | 422,160 | 403,217 | 397,673 | 4,083 | |||||||||||||||||||||||||||
2014 | 441,147 | 461,961 | 448,887 | 438,815 | 45,519 | ||||||||||||||||||||||||||||
2015 | 386,614 | 368,320 | 369,734 | 27,033 | |||||||||||||||||||||||||||||
2016 | 452,342 | 452,169 | 96,090 | ||||||||||||||||||||||||||||||
2017 | 870,456 | 488,104 | |||||||||||||||||||||||||||||||
Total | $ | 5,251,457 | |||||||||||||||||||||||||||||||
Reinsurance Property and Other | ||||||||||||||||||||||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | ||||||||||||||||||||||||||||||
For the Years Ended December 31, | ||||||||||||||||||||||||||||||
Accident Year | 2008 Unaudited | 2009 Unaudited | 2010 Unaudited | 2011 Unaudited | 2012 Unaudited | 2013 Unaudited | 2014 Unaudited | 2015 Unaudited | 2016 | 2017 | ||||||||||||||||||||
2008 | $ | 158,206 | $ | 316,280 | $ | 444,047 | $ | 497,078 | $ | 510,305 | $ | 514,696 | $ | 514,765 | $ | 519,711 | $ | 519,391 | $ | 517,657 | ||||||||||
2009 | 57,796 | 132,309 | 164,047 | 182,556 | 193,309 | 192,746 | 195,614 | 197,310 | 193,973 | |||||||||||||||||||||
2010 | 119,385 | 318,198 | 412,731 | 444,822 | 491,817 | 521,377 | 546,253 | 551,588 | ||||||||||||||||||||||
2011 | 242,494 | 561,377 | 769,142 | 872,086 | 902,188 | 976,120 | 991,307 | |||||||||||||||||||||||
2012 | 93,847 | 231,961 | 305,020 | 327,361 | 341,925 | 351,558 | ||||||||||||||||||||||||
2013 | 55,047 | 223,666 | 336,940 | 365,089 | 374,944 | |||||||||||||||||||||||||
2014 | 65,848 | 274,886 | 351,496 | 369,000 | ||||||||||||||||||||||||||
2015 | 48,116 | 190,057 | 282,967 | |||||||||||||||||||||||||||
2016 | 78,916 | 231,682 | ||||||||||||||||||||||||||||
2017 | 172,937 | |||||||||||||||||||||||||||||
Total | 4,037,613 | |||||||||||||||||||||||||||||
All outstanding liabilities before 2008, net of reinsurance | 6,225 | |||||||||||||||||||||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ | 1,220,069 | ||||||||||||||||||||||||||||
RESERVE FOR LOSSES AND LOSS EXPENSES (CONTINUED) |
Reinsurance property and other | ||||||||||||||||||||||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | ||||||||||||||||||||||||||||||
For the years ended December 31, | ||||||||||||||||||||||||||||||
Accident year | 2010 unaudited | 2011 unaudited | 2012 unaudited | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 | ||||||||||||||||||||
2010 | $ | 116,132 | $ | 311,052 | $ | 404,287 | $ | 434,908 | $ | 480,734 | $ | 509,769 | $ | 534,590 | $ | 540,312 | $ | 542,590 | $ | 546,691 | ||||||||||
2011 | 251,855 | 587,047 | 794,575 | 893,746 | 923,166 | 996,481 | 1,011,283 | 1,013,858 | 1,019,917 | |||||||||||||||||||||
2012 | 122,823 | 294,298 | 366,968 | 389,373 | 403,926 | 413,594 | 415,634 | 428,152 | ||||||||||||||||||||||
2013 | 107,628 | 324,839 | 441,138 | 471,380 | 481,066 | 482,480 | 483,105 | |||||||||||||||||||||||
2014 | 102,356 | 352,883 | 434,769 | 452,193 | 458,350 | 463,342 | ||||||||||||||||||||||||
2015 | 71,477 | 265,896 | 368,698 | 400,980 | 413,477 | |||||||||||||||||||||||||
2016 | 128,126 | 376,920 | 520,779 | 563,781 | ||||||||||||||||||||||||||
2017 | 252,360 | 723,826 | 868,458 | |||||||||||||||||||||||||||
2018 | 195,707 | 648,622 | ||||||||||||||||||||||||||||
2019 | 161,293 | |||||||||||||||||||||||||||||
Total | 5,596,838 | |||||||||||||||||||||||||||||
All outstanding liabilities before 2010, net of reinsurance | 14,757 | |||||||||||||||||||||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ | 1,644,046 | ||||||||||||||||||||||||||||
Reinsurance Property and Other | |||||||||
Average annual percentage payout of incurred claims by age, net of reinsurance | |||||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
20.6% | 36.6% | 20.8% | 7.4% | 4.2% | 3.0% | 1.8% | 0.9% | (0.9)% | (0.3)% |
Reinsurance property and other | |||||||||
Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited) | |||||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
20.9% | 40.8% | 18.8% | 6.2% | 3.3% | 3.1% | 1.6% | 1.3% | 0.5% | 0.7% |
Reinsurance Credit and Surety | |||||||||||||||||||||||||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | At December 31, 2017 | ||||||||||||||||||||||||||||||||
For the Years Ended December 31, | Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | ||||||||||||||||||||||||||||||||
Accident Year | 2008 Unaudited | 2009 Unaudited | 2010 Unaudited | 2011 Unaudited | 2012 Unaudited | 2013 Unaudited | 2014 Unaudited | 2015 Unaudited | 2016 | 2017 | |||||||||||||||||||||||
2008 | $ | 87,400 | $ | 116,362 | $ | 107,787 | $ | 105,765 | $ | 106,950 | $ | 105,698 | $ | 101,903 | $ | 100,674 | $ | 100,277 | $ | 98,714 | $ | 1,231 | |||||||||||
2009 | 147,192 | 125,656 | 109,211 | 108,442 | 108,149 | 102,079 | 98,845 | 98,469 | 96,783 | 1,874 | |||||||||||||||||||||||
2010 | 121,893 | 103,332 | 96,821 | 93,648 | 89,657 | 82,003 | 80,680 | 78,645 | 5,222 | ||||||||||||||||||||||||
2011 | 124,030 | 112,031 | 110,294 | 117,586 | 115,523 | 106,804 | 104,997 | 7,464 | |||||||||||||||||||||||||
2012 | 163,535 | 152,873 | 155,634 | 152,678 | 144,084 | 135,845 | 11,848 | ||||||||||||||||||||||||||
2013 | 168,361 | 157,311 | 148,080 | 144,095 | 139,679 | 17,857 | |||||||||||||||||||||||||||
2014 | 138,056 | 139,449 | 146,647 | 142,909 | 27,627 | ||||||||||||||||||||||||||||
2015 | 163,467 | 170,980 | 165,822 | 36,473 | |||||||||||||||||||||||||||||
2016 | 144,583 | 144,741 | 50,815 | ||||||||||||||||||||||||||||||
2017 | 135,562 | 74,667 | |||||||||||||||||||||||||||||||
Total | $ | 1,243,697 | |||||||||||||||||||||||||||||||
RESERVE FOR LOSSES AND LOSS EXPENSES (CONTINUED) |
Reinsurance Credit and Surety | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reinsurance credit and surety | Reinsurance credit and surety | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | Incurred claims and allocated claim adjustment expenses, net of reinsurance | At December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Years Ended December 31, | For the years ended December 31, | Total of incurred-but-not-reported liabilities plus expected development on reported claims | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accident Year | 2008 Unaudited | 2009 Unaudited | 2010 Unaudited | 2011 Unaudited | 2012 Unaudited | 2013 Unaudited | 2014 Unaudited | 2015 Unaudited | 2016 | 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2008 | $ | 20,891 | $ | 70,349 | $ | 71,501 | $ | 86,796 | $ | 88,604 | $ | 91,014 | $ | 93,282 | $ | 94,040 | $ | 94,446 | $ | 94,601 | |||||||||||||||||||||||||||||||||||||||||||
2009 | 32,888 | 78,254 | 80,744 | 83,138 | 87,079 | 89,736 | 89,921 | 89,894 | 89,986 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accident year | 2010 unaudited | 2011 unaudited | 2012 unaudited | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 | Total of incurred-but-not-reported liabilities plus expected development on reported claims | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2010 | 28,387 | 50,148 | 61,983 | 62,586 | 64,455 | 65,722 | 67,252 | 68,294 | $ | 119,180 | $ | 99,460 | $ | 92,848 | $ | 90,029 | $ | 85,856 | $ | 78,247 | $ | 76,937 | $ | 74,913 | $ | 73,672 | $ | 71,911 | |||||||||||||||||||||||||||||||||||
2011 | 22,640 | 56,106 | 74,037 | 82,015 | 86,653 | 88,944 | 91,307 | 120,572 | 106,495 | 104,616 | 111,485 | 109,662 | 101,236 | 99,412 | 98,885 | 95,813 | 2,439 | ||||||||||||||||||||||||||||||||||||||||||||||
2012 | 50,516 | 88,092 | 102,976 | 108,858 | 112,423 | 114,251 | 159,507 | 147,627 | 150,137 | 147,406 | 139,097 | 131,120 | 127,576 | 124,552 | 3,883 | ||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 32,708 | 78,976 | 94,347 | 101,104 | 108,839 | 164,207 | 152,467 | 143,719 | 139,886 | 135,762 | 124,533 | 124,674 | 3,546 | ||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 35,839 | 62,900 | 88,668 | 97,957 | 136,419 | 135,525 | 142,703 | 139,015 | 127,683 | 126,397 | 6,726 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2015 | 33,064 | 84,077 | 103,123 | 160,132 | 165,861 | 160,675 | 156,635 | 137,848 | 8,335 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2016 | 42,348 | 75,170 | 141,639 | 141,128 | 148,943 | 123,366 | 9,849 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | 34,758 | 135,040 | 132,618 | 126,786 | 22,830 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 878,286 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | 111,692 | 120,289 | 38,357 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 74,689 | 39,291 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 1,126,325 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
All outstanding liabilities before 2008, net of reinsurance | 10,351 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ | 375,762 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reinsurance credit and surety | ||||||||||||||||||||||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | ||||||||||||||||||||||||||||||
For the years ended December 31, | ||||||||||||||||||||||||||||||
Accident year | 2010 unaudited | 2011 unaudited | 2012 unaudited | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 | ||||||||||||||||||||
2010 | $ | 28,190 | $ | 48,274 | $ | 59,074 | $ | 59,804 | $ | 61,466 | $ | 62,585 | $ | 64,020 | $ | 65,024 | $ | 65,346 | $ | 65,781 | ||||||||||
2011 | 22,411 | 53,392 | 69,851 | 77,392 | 81,930 | 84,106 | 86,419 | 87,799 | 88,615 | |||||||||||||||||||||
2012 | 49,482 | 85,228 | 99,046 | 104,876 | 108,391 | 110,150 | 111,441 | 113,402 | ||||||||||||||||||||||
2013 | 32,399 | 76,743 | 91,486 | 98,039 | 105,692 | 107,555 | 112,520 | |||||||||||||||||||||||
2014 | 35,552 | 61,076 | 85,984 | 95,079 | 102,670 | 107,082 | ||||||||||||||||||||||||
2015 | 32,907 | 81,685 | 99,774 | 116,756 | 118,670 | |||||||||||||||||||||||||
2016 | 42,028 | 73,201 | 92,187 | 101,822 | ||||||||||||||||||||||||||
2017 | 37,295 | 73,944 | 90,495 | |||||||||||||||||||||||||||
2018 | 38,990 | 68,505 | ||||||||||||||||||||||||||||
2019 | 19,281 | |||||||||||||||||||||||||||||
Total | 886,173 | |||||||||||||||||||||||||||||
All outstanding liabilities before 2010, net of reinsurance | 16,847 | |||||||||||||||||||||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ | 256,999 | ||||||||||||||||||||||||||||
8. | RESERVE FOR LOSSES AND LOSS EXPENSES (CONTINUED) |
Reinsurance Credit and Surety | |||||||||
Average annual percentage payout of incurred claims by age, net of reinsurance | |||||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
27.3% | 32.2% | 10.9% | 6.0% | 3.5% | 2.0% | 1.7% | 0.7% | 0.3% | 0.2% |
Reinsurance credit and surety | |||||||||
Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited) | |||||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
30.2% | 28.8% | 14.6% | 6.6% | 3.9% | 2.1% | 2.4% | 1.5% | 0.7% | 0.6% |
Reinsurance professional lines | |||||||||||||||||||||||||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | At December 31, 2019 | ||||||||||||||||||||||||||||||||
For the years ended December 31, | Total of incurred-but-not-reported liabilities plus expected development on reported claims | ||||||||||||||||||||||||||||||||
Accident year | 2010 unaudited | 2011 unaudited | 2012 unaudited | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 | |||||||||||||||||||||||
2010 | $ | 209,934 | $ | 210,173 | $ | 211,361 | $ | 214,417 | $ | 214,185 | $ | 196,939 | $ | 189,415 | $ | 179,762 | $ | 166,044 | $ | 167,376 | $ | 5,701 | |||||||||||
2011 | 201,013 | 201,364 | 202,620 | 211,367 | 209,088 | 208,219 | 200,437 | 177,405 | 166,951 | 6,047 | |||||||||||||||||||||||
2012 | 209,548 | 216,088 | 221,544 | 223,926 | 222,626 | 212,594 | 213,984 | 206,791 | 18,318 | ||||||||||||||||||||||||
2013 | 209,292 | 214,396 | 215,562 | 213,745 | 213,182 | 205,733 | 181,563 | 35,871 | |||||||||||||||||||||||||
2014 | 219,376 | 219,415 | 219,345 | 219,242 | 233,611 | 230,042 | 27,940 | ||||||||||||||||||||||||||
2015 | 212,031 | 212,024 | 214,344 | 225,139 | 231,980 | 63,050 | |||||||||||||||||||||||||||
2016 | 195,190 | 196,293 | 200,020 | 227,952 | 67,496 | ||||||||||||||||||||||||||||
2017 | 155,137 | 155,759 | 162,116 | 72,727 | |||||||||||||||||||||||||||||
2018 | 146,387 | 148,921 | 132,683 | ||||||||||||||||||||||||||||||
2019 | 139,150 | 130,571 | |||||||||||||||||||||||||||||||
Total | $ | 1,862,842 | |||||||||||||||||||||||||||||||
RESERVE FOR LOSSES AND LOSS EXPENSES (CONTINUED) |
Reinsurance professional lines | ||||||||||||||||||||||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | ||||||||||||||||||||||||||||||
For the years ended December 31, | ||||||||||||||||||||||||||||||
Accident year | 2010 unaudited | 2011 unaudited | 2012 unaudited | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 | ||||||||||||||||||||
2010 | $ | 1,757 | $ | 12,026 | $ | 31,243 | $ | 52,138 | $ | 76,798 | $ | 107,363 | $ | 123,981 | $ | 130,610 | $ | 138,047 | $ | 142,994 | ||||||||||
2011 | 1,510 | 11,822 | 30,272 | 57,230 | 84,845 | 103,052 | 119,767 | 130,059 | 136,492 | |||||||||||||||||||||
2012 | 778 | 10,392 | 29,622 | 53,629 | 85,972 | 107,224 | 131,853 | 145,866 | ||||||||||||||||||||||
2013 | 1,064 | 12,073 | 30,491 | 64,958 | 81,630 | 104,904 | 123,282 | |||||||||||||||||||||||
2014 | 2,019 | 13,073 | 48,854 | 74,577 | 109,239 | 147,194 | ||||||||||||||||||||||||
2015 | 3,134 | 13,505 | 41,539 | 79,296 | 112,042 | |||||||||||||||||||||||||
2016 | 1,768 | 20,534 | 52,617 | 95,283 | ||||||||||||||||||||||||||
2017 | 2,813 | 14,921 | 39,915 | |||||||||||||||||||||||||||
2018 | 271 | 2,593 | ||||||||||||||||||||||||||||
2019 | 335 | |||||||||||||||||||||||||||||
Total | 945,996 | |||||||||||||||||||||||||||||
All outstanding liabilities before 2010, net of reinsurance | 52,321 | |||||||||||||||||||||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ | 969,167 | ||||||||||||||||||||||||||||
Reinsurance Professional Lines | |||||||||||||||||||||||||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | At December 31, 2017 | ||||||||||||||||||||||||||||||||
For the Years Ended December 31, | Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | ||||||||||||||||||||||||||||||||
Accident Year | 2008 Unaudited | 2009 Unaudited | 2010 Unaudited | 2011 Unaudited | 2012 Unaudited | 2013 Unaudited | 2014 Unaudited | 2015 Unaudited | 2016 | 2017 | |||||||||||||||||||||||
2008 | $ | 176,166 | $ | 183,064 | $ | 182,587 | $ | 178,530 | $ | 176,767 | $ | 173,316 | $ | 174,286 | $ | 173,217 | $ | 172,937 | $ | 169,515 | $ | 6,938 | |||||||||||
2009 | 212,285 | 212,046 | 216,737 | 219,447 | 210,084 | 209,625 | 194,753 | 190,811 | 181,665 | 11,657 | |||||||||||||||||||||||
2010 | 211,273 | 211,397 | 212,359 | 215,298 | 215,043 | 197,548 | 189,880 | 180,219 | 24,929 | ||||||||||||||||||||||||
2011 | 202,504 | 202,676 | 203,706 | 212,439 | 209,837 | 208,973 | 201,077 | 51,009 | |||||||||||||||||||||||||
2012 | 210,612 | 217,184 | 222,600 | 224,737 | 223,492 | 213,601 | 75,647 | ||||||||||||||||||||||||||
2013 | 210,196 | 215,425 | 216,528 | 214,855 | 214,477 | 101,607 | |||||||||||||||||||||||||||
2014 | 219,927 | 219,966 | 219,960 | 219,968 | 85,643 | ||||||||||||||||||||||||||||
2015 | 212,536 | 212,852 | 215,178 | 124,029 | |||||||||||||||||||||||||||||
2016 | 195,527 | 196,852 | 140,194 | ||||||||||||||||||||||||||||||
2017 | 155,882 | 144,098 | |||||||||||||||||||||||||||||||
Total | $ | 1,948,434 | |||||||||||||||||||||||||||||||
Reinsurance professional lines | |||||||||
Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited) | |||||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
0.8% | 5.5% | 12.4% | 15.1% | 14.2% | 13.8% | 10.5% | 5.7% | 4.2% | 3.0% |
Reinsurance Professional Lines | ||||||||||||||||||||||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | ||||||||||||||||||||||||||||||
For the Years Ended December 31, | ||||||||||||||||||||||||||||||
Accident Year | 2008 Unaudited | 2009 Unaudited | 2010 Unaudited | 2011 Unaudited | 2012 Unaudited | 2013 Unaudited | 2014 Unaudited | 2015 Unaudited | 2016 | 2017 | ||||||||||||||||||||
2008 | $ | 373 | $ | 6,465 | $ | 21,736 | $ | 49,393 | $ | 70,815 | $ | 92,320 | $ | 109,093 | $ | 124,658 | $ | 133,596 | $ | 139,917 | ||||||||||
2009 | 914 | 8,589 | 32,327 | 63,180 | 83,946 | 108,787 | 128,608 | 138,823 | 143,634 | |||||||||||||||||||||
2010 | 1,759 | 12,037 | 31,269 | 52,187 | 76,931 | 107,534 | 124,158 | 130,837 | ||||||||||||||||||||||
2011 | 1,506 | 11,829 | 30,326 | 57,402 | 85,052 | 103,309 | 120,076 | |||||||||||||||||||||||
2012 | 780 | 10,441 | 29,730 | 53,801 | 86,211 | 107,581 | ||||||||||||||||||||||||
2013 | 1,068 | 12,121 | 30,666 | 65,195 | 81,940 | |||||||||||||||||||||||||
2014 | 2,020 | 13,085 | 48,930 | 74,748 | ||||||||||||||||||||||||||
2015 | 3,134 | 13,507 | 41,610 | |||||||||||||||||||||||||||
2016 | 1,782 | 20,624 | ||||||||||||||||||||||||||||
2017 | 2,815 | |||||||||||||||||||||||||||||
Total | 863,782 | |||||||||||||||||||||||||||||
All outstanding liabilities before 2008, net of reinsurance | 34,882 | |||||||||||||||||||||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ | 1,119,534 | ||||||||||||||||||||||||||||
Reinsurance Professional Lines | |||||||||
Average annual percentage payout of incurred claims by age, net of reinsurance | |||||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
0.8% | 5.3% | 11.1% | 13.9% | 12.4% | 12.5% | 9.6% | 6.2% | 4.0% | 3.7% |
RESERVE FOR LOSSES AND LOSS EXPENSES (CONTINUED) |
Reinsurance motor | |||||||||||||||||||||||||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | At December 31, 2019 | ||||||||||||||||||||||||||||||||
For the years ended December 31, | Total of incurred-but-not-reported liabilities plus expected development on reported claims | ||||||||||||||||||||||||||||||||
Accident year | 2010 unaudited | 2011 unaudited | 2012 unaudited | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 | |||||||||||||||||||||||
2010 | $ | 100,219 | $ | 107,538 | $ | 108,183 | $ | 107,264 | $ | 101,343 | $ | 96,235 | $ | 86,803 | $ | 83,112 | $ | 80,901 | $ | 80,028 | $ | 21,660 | |||||||||||
2011 | 158,475 | 162,069 | 166,112 | 172,062 | 168,225 | 159,626 | 148,536 | 143,846 | 136,077 | 18,030 | |||||||||||||||||||||||
2012 | 180,137 | 170,848 | 159,446 | 151,899 | 147,041 | 137,585 | 134,685 | 126,507 | 15,534 | ||||||||||||||||||||||||
2013 | 164,927 | 162,475 | 150,620 | 141,237 | 137,791 | 135,003 | 126,050 | 13,828 | |||||||||||||||||||||||||
2014 | 185,279 | 186,947 | 182,237 | 179,510 | 174,719 | 171,403 | 6,302 | ||||||||||||||||||||||||||
2015 | 225,974 | 222,178 | 226,319 | 227,844 | 216,610 | 12,291 | |||||||||||||||||||||||||||
2016 | 249,616 | 268,525 | 270,264 | 259,959 | 21,855 | ||||||||||||||||||||||||||||
2017 | 370,778 | 380,509 | 362,721 | 50,597 | |||||||||||||||||||||||||||||
2018 | 363,917 | 363,733 | 83,024 | ||||||||||||||||||||||||||||||
2019 | 339,476 | 165,127 | |||||||||||||||||||||||||||||||
Total | $ | 2,182,564 | |||||||||||||||||||||||||||||||
Reinsurance Motor | |||||||||||||||||||||||||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | At December 31, 2017 | ||||||||||||||||||||||||||||||||
For the Years Ended December 31, | Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | ||||||||||||||||||||||||||||||||
Accident Year | 2008 Unaudited | 2009 Unaudited | 2010 Unaudited | 2011 Unaudited | 2012 Unaudited | 2013 Unaudited | 2014 Unaudited | 2015 Unaudited | 2016 | 2017 | |||||||||||||||||||||||
2008 | $ | 74,058 | $ | 78,924 | $ | 78,193 | $ | 80,897 | $ | 77,937 | $ | 77,027 | $ | 72,330 | $ | 65,983 | $ | 61,702 | $ | 62,557 | $ | 20,916 | |||||||||||
2009 | 85,779 | 83,784 | 91,915 | 93,917 | 96,069 | 97,089 | 87,995 | 82,093 | 84,458 | 21,053 | |||||||||||||||||||||||
2010 | 103,990 | 112,528 | 113,304 | 112,285 | 106,058 | 100,707 | 90,839 | 87,253 | 24,419 | ||||||||||||||||||||||||
2011 | 160,444 | 164,579 | 168,734 | 175,021 | 171,007 | 161,958 | 150,818 | 33,732 | |||||||||||||||||||||||||
2012 | 186,033 | 176,870 | 164,734 | 156,957 | 151,820 | 141,923 | 25,982 | ||||||||||||||||||||||||||
2013 | 169,876 | 168,554 | 156,692 | 146,799 | 143,186 | 26,041 | |||||||||||||||||||||||||||
2014 | 190,363 | 193,691 | 188,725 | 185,570 | 24,003 | ||||||||||||||||||||||||||||
2015 | 231,614 | 229,110 | 233,172 | 37,198 | |||||||||||||||||||||||||||||
2016 | 255,354 | 276,126 | 55,173 | ||||||||||||||||||||||||||||||
2017 | 348,068 | 170,065 | |||||||||||||||||||||||||||||||
Total | $ | 1,713,131 | |||||||||||||||||||||||||||||||
Reinsurance Motor | ||||||||||||||||||||||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | ||||||||||||||||||||||||||||||
For the Years Ended December 31, | ||||||||||||||||||||||||||||||
Accident Year | 2008 Unaudited | 2009 Unaudited | 2010 Unaudited | 2011 Unaudited | 2012 Unaudited | 2013 Unaudited | 2014 Unaudited | 2015 Unaudited | 2016 | 2017 | ||||||||||||||||||||
2008 | $ | 3,093 | $ | 6,371 | $ | 6,625 | $ | 7,910 | $ | 9,491 | $ | 12,088 | $ | 14,897 | $ | 15,570 | $ | 17,231 | $ | 17,657 | ||||||||||
2009 | 2,819 | 7,134 | 8,428 | 10,020 | 13,627 | 20,029 | 22,446 | 27,248 | 30,378 | |||||||||||||||||||||
2010 | 7,406 | 13,316 | 19,189 | 22,873 | 26,489 | 30,942 | 34,342 | 35,444 | ||||||||||||||||||||||
2011 | 21,274 | 46,277 | 61,691 | 72,663 | 79,729 | 85,995 | 90,871 | |||||||||||||||||||||||
2012 | 29,727 | 55,282 | 70,634 | 80,891 | 87,658 | 91,896 | ||||||||||||||||||||||||
2013 | 34,607 | 56,009 | 70,849 | 81,419 | 87,407 | |||||||||||||||||||||||||
2014 | 44,225 | 77,736 | 98,483 | 107,090 | ||||||||||||||||||||||||||
2015 | 58,884 | 97,495 | 118,902 | |||||||||||||||||||||||||||
2016 | 61,938 | 109,559 | ||||||||||||||||||||||||||||
2017 | 71,052 | |||||||||||||||||||||||||||||
Total | 760,256 | |||||||||||||||||||||||||||||
All outstanding liabilities before 2008, net of reinsurance | 129,548 | |||||||||||||||||||||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ | 1,082,423 | ||||||||||||||||||||||||||||
RESERVE FOR LOSSES AND LOSS EXPENSES (CONTINUED) |
Reinsurance motor | ||||||||||||||||||||||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | ||||||||||||||||||||||||||||||
For the years ended December 31, | ||||||||||||||||||||||||||||||
Accident year | 2010 unaudited | 2011 unaudited | 2012 unaudited | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 | ||||||||||||||||||||
2010 | $ | 7,201 | $ | 12,601 | $ | 18,149 | $ | 21,713 | $ | 25,153 | $ | 29,429 | $ | 32,717 | $ | 33,769 | $ | 34,839 | $ | 37,041 | ||||||||||
2011 | 23,943 | 47,991 | 62,861 | 73,562 | 80,349 | 86,466 | 91,165 | 92,201 | 94,155 | |||||||||||||||||||||
2012 | 29,381 | 53,959 | 68,970 | 78,880 | 85,488 | 89,646 | 91,982 | 93,194 | ||||||||||||||||||||||
2013 | 34,133 | 54,274 | 68,502 | 78,744 | 84,512 | 90,165 | 93,234 | |||||||||||||||||||||||
2014 | 43,628 | 75,543 | 95,563 | 103,909 | 114,300 | 124,157 | ||||||||||||||||||||||||
2015 | 58,231 | 95,172 | 115,903 | 133,528 | 149,813 | |||||||||||||||||||||||||
2016 | 61,321 | 106,934 | 131,606 | 150,004 | ||||||||||||||||||||||||||
2017 | 72,859 | 137,217 | 168,855 | |||||||||||||||||||||||||||
2018 | 84,564 | 145,561 | ||||||||||||||||||||||||||||
2019 | 90,291 | |||||||||||||||||||||||||||||
Total | 1,146,305 | |||||||||||||||||||||||||||||
All outstanding liabilities before 2010, net of reinsurance | 193,345 | |||||||||||||||||||||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ | 1,229,604 | ||||||||||||||||||||||||||||
Reinsurance Motor | |||||||||
Average annual percentage payout of incurred claims by age, net of reinsurance | |||||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
16.8% | 13.2% | 7.6% | 5.0% | 4.1% | 4.8% | 3.6% | 2.7% | 3.2% | 0.7% |
Reinsurance motor | |||||||||
Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited) | |||||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
22.3% | 16.4% | 10.1% | 6.9% | 5.5% | 4.7% | 3.0% | 1.0% | 1.4% | 2.8% |
Reinsurance Liability | |||||||||||||||||||||||||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | At December 31, 2017 | ||||||||||||||||||||||||||||||||
For the Years Ended December 31, | Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | ||||||||||||||||||||||||||||||||
Accident Year | 2008 Unaudited | 2009 Unaudited | 2010 Unaudited | 2011 Unaudited | 2012 Unaudited | 2013 Unaudited | 2014 Unaudited | 2015 Unaudited | 2016 | 2017 | |||||||||||||||||||||||
2008 | $ | 140,069 | $ | 140,460 | $ | 141,152 | $ | 141,553 | $ | 139,564 | $ | 133,917 | $ | 111,873 | $ | 106,942 | $ | 95,649 | $ | 86,008 | $ | 10,016 | |||||||||||
2009 | 175,100 | 176,187 | 182,970 | 180,596 | 188,090 | 208,301 | 195,679 | 181,488 | 171,979 | 23,215 | |||||||||||||||||||||||
2010 | 173,358 | 172,261 | 183,773 | 184,180 | 202,649 | 192,051 | 182,794 | 166,533 | 29,101 | ||||||||||||||||||||||||
2011 | 174,125 | 173,815 | 175,279 | 193,228 | 200,190 | 196,948 | 196,277 | 34,097 | |||||||||||||||||||||||||
2012 | 168,641 | 164,742 | 168,956 | 173,596 | 174,765 | 172,124 | 43,129 | ||||||||||||||||||||||||||
2013 | 173,966 | 177,606 | 183,683 | 185,689 | 185,321 | 71,652 | |||||||||||||||||||||||||||
2014 | 201,355 | 204,323 | 206,100 | 202,130 | 91,483 | ||||||||||||||||||||||||||||
2015 | 216,076 | 216,518 | 217,480 | 125,377 | |||||||||||||||||||||||||||||
2016 | 241,952 | 247,768 | 171,869 | ||||||||||||||||||||||||||||||
2017 | 266,945 | 226,036 | |||||||||||||||||||||||||||||||
Total | $ | 1,912,565 | |||||||||||||||||||||||||||||||
RESERVE FOR LOSSES AND LOSS EXPENSES (CONTINUED) |
Reinsurance Liability | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reinsurance liability | Reinsurance liability | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | Incurred claims and allocated claim adjustment expenses, net of reinsurance | At December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Years Ended December 31, | For the years ended December 31, | Total of incurred-but-not-reported liabilities plus expected development on reported claims | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accident Year | 2008 Unaudited | 2009 Unaudited | 2010 Unaudited | 2011 Unaudited | 2012 Unaudited | 2013 Unaudited | 2014 Unaudited | 2015 Unaudited | 2016 | 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2008 | $ | 2,160 | $ | 9,952 | $ | 21,953 | $ | 30,028 | $ | 36,567 | $ | 43,509 | $ | 51,922 | $ | 53,882 | $ | 58,022 | $ | 63,903 | |||||||||||||||||||||||||||||||||||||||||||
2009 | 1,705 | 17,104 | 44,552 | 56,730 | 73,521 | 105,410 | 125,329 | 129,644 | 135,031 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accident year | 2010 unaudited | 2011 unaudited | 2012 unaudited | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 | Total of incurred-but-not-reported liabilities plus expected development on reported claims | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2010 | 2,484 | 17,659 | 46,207 | 62,300 | 83,976 | 97,617 | 108,938 | 119,872 | $ | 172,823 | $ | 171,775 | $ | 183,347 | $ | 183,715 | $ | 202,007 | $ | 190,921 | $ | 181,962 | $ | 165,983 | $ | 159,230 | $ | 156,113 | |||||||||||||||||||||||||||||||||||
2011 | 5,191 | 21,297 | 40,021 | 70,283 | 92,696 | 112,581 | 123,719 | 172,189 | 172,201 | 173,984 | 191,668 | 197,766 | 194,604 | 193,784 | 191,873 | 189,014 | 16,614 | ||||||||||||||||||||||||||||||||||||||||||||||
2012 | 3,542 | 12,809 | 28,418 | 58,855 | 78,368 | 101,343 | 166,386 | 162,945 | 167,366 | 172,341 | 173,501 | 170,979 | 164,309 | 158,342 | 16,994 | ||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 5,978 | 22,259 | 52,360 | 69,098 | 88,327 | 171,271 | 175,174 | 182,201 | 184,240 | 183,915 | 177,112 | 157,236 | 24,545 | ||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 7,117 | 28,699 | 48,498 | 70,389 | 199,433 | 202,939 | 204,657 | 200,557 | 199,340 | 197,187 | 53,905 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2015 | 7,273 | 27,473 | 54,646 | 214,735 | 215,099 | 216,061 | 215,889 | 213,662 | 67,030 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2016 | 11,891 | 37,819 | 240,440 | 245,820 | 250,868 | 254,154 | 99,784 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | 12,073 | 276,929 | 270,589 | 279,172 | 133,392 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 807,122 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | 264,570 | 268,506 | 168,425 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 263,525 | 214,542 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 2,136,911 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
All outstanding liabilities before 2008, net of reinsurance | 42,182 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ | 1,147,625 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reinsurance liability | ||||||||||||||||||||||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | ||||||||||||||||||||||||||||||
For the years ended December 31, | ||||||||||||||||||||||||||||||
Accident year | 2010 unaudited | 2011 unaudited | 2012 unaudited | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 | ||||||||||||||||||||
2010 | $ | 2,479 | $ | 17,652 | $ | 46,199 | $ | 62,287 | $ | 83,792 | $ | 97,430 | $ | 108,748 | $ | 119,678 | $ | 128,386 | $ | 130,566 | ||||||||||
2011 | 5,197 | 21,291 | 40,009 | 70,083 | 92,477 | 112,347 | 123,403 | 135,627 | 141,483 | |||||||||||||||||||||
2012 | 3,541 | 12,800 | 28,384 | 58,777 | 78,235 | 101,164 | 115,618 | 125,979 | ||||||||||||||||||||||
2013 | 5,971 | 22,235 | 52,328 | 69,055 | 88,262 | 102,593 | 113,127 | |||||||||||||||||||||||
2014 | 7,083 | 28,661 | 48,420 | 70,138 | 89,412 | 109,974 | ||||||||||||||||||||||||
2015 | 7,270 | 27,455 | 54,517 | 80,865 | 108,961 | |||||||||||||||||||||||||
2016 | 11,874 | 37,703 | 69,558 | 111,870 | ||||||||||||||||||||||||||
2017 | 12,438 | 42,147 | 78,477 | |||||||||||||||||||||||||||
2018 | 19,303 | 49,795 | ||||||||||||||||||||||||||||
2019 | 19,157 | |||||||||||||||||||||||||||||
Total | 989,389 | |||||||||||||||||||||||||||||
All outstanding liabilities before 2010, net of reinsurance | 80,768 | |||||||||||||||||||||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ | 1,228,290 | ||||||||||||||||||||||||||||
Reinsurance Liability | |||||||||
Average annual percentage payout of incurred claims by age, net of reinsurance | |||||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
2.9% | 8.9% | 13.0% | 11.3% | 10.6% | 11.6% | 8.5% | 3.8% | 4.0% | 6.8% |
RESERVE FOR LOSSES AND LOSS EXPENSES (CONTINUED) |
Reinsurance liability | |||||||||
Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited) | |||||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
4.1% | 9.6% | 13.2% | 13.7% | 12.2% | 10.6% | 7.2% | 6.7% | 4.4% | 1.4% |
Aviabel | |||||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | At December 31, 2017 | ||||||||||||
Accident Year | Net claim and allocated claim adjustment expense reserves at the Acquisition Date | Net incurred claims and allocated claim adjustment expenses from the Acquisition Date to December 31, 2017 | Total acquired net claim and allocated claim adjustment expense reserves and net incurred claims and allocated claim adjustment expenses from the Acquisition Date to December 31, 2017 | Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | Cumulative Number of Reported Claims | ||||||||
2008 | $ | 998 | $ | (293 | ) | $ | 705 | $ | 30 | 1,066 | |||
2009 | 842 | 82 | 924 | 25 | 1,347 | ||||||||
2010 | 1,516 | (39 | ) | 1,477 | 46 | 1,452 | |||||||
2011 | 1,418 | (423 | ) | 995 | 43 | 1,420 | |||||||
2012 | 5,248 | (1,066 | ) | 4,183 | 177 | 1,380 | |||||||
2013 | 5,702 | 956 | 6,658 | 200 | 1,286 | ||||||||
2014 | 10,589 | (1,636 | ) | 8,953 | 804 | 1,373 | |||||||
2015 | 15,004 | (1,575 | ) | 13,429 | 1,650 | 1,475 | |||||||
2016 | 19,388 | 2,134 | 21,522 | 4,278 | 1,535 | ||||||||
2017 | 7,666 | 27,096 | 34,762 | 7,180 | 1,114 | ||||||||
$ | 68,371 | $ | 25,237 | $ | 93,608 | ||||||||
Aviabel | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | ||||
From the Acquisition Date to December 31, 2017 | ||||
Accident Year | ||||
2008 | $ | (33 | ) | |
2009 | 1 | |||
2010 | 97 | |||
2011 | 20 | |||
2012 | 661 | |||
2013 | 425 | |||
2014 | 1,944 | |||
2015 | 3,291 | |||
2016 | 5,453 | |||
2017 | 14,970 | |||
Total | 26,830 | |||
All outstanding liabilities before 2008, net of reinsurance | 10,626 | |||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ | 77,405 | ||
Novae | ||||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | At December 31, 2017 | |||||||||||
Accident Year | Net claim and allocated claim adjustment expense reserves at the Acquisition Date | Net incurred claims and allocated claim adjustment expenses from the Acquisition Date to December 31, 2017 | Total acquired net claim and allocated claim adjustment expense reserves and net incurred claims and allocated claim adjustment expenses from the Acquisition Date to December 31, 2017 | Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | ||||||||
2008 | $ | 20,515 | $ | — | $ | 20,515 | $ | 3,552 | ||||
2009 | 25,486 | — | 25,486 | 714 | ||||||||
2010 | 23,308 | — | 23,308 | 2,781 | ||||||||
2011 | 59,648 | — | 59,648 | 11,204 | ||||||||
2012 | 87,292 | — | 87,292 | 8,695 | ||||||||
2013 | 76,786 | — | 76,786 | 12,504 | ||||||||
2014 | 123,955 | — | 123,955 | 17,024 | ||||||||
2015 | 184,606 | — | 184,606 | 36,619 | ||||||||
2016 | 307,014 | — | 307,014 | 54,356 | ||||||||
2017 | 293,520 | 135,493 | 429,013 | 222,330 | ||||||||
$ | 1,202,130 | $ | 135,493 | $ | 1,337,624 | |||||||
Novae | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | ||||
From the Acquisition Date to December 31, 2017 | ||||
Accident Year | ||||
2008 | $ | 1,458 | ||
2009 | 1,147 | |||
2010 | 3,197 | |||
2011 | 4,332 | |||
2012 | 7,352 | |||
2013 | 5,878 | |||
2014 | 12,370 | |||
2015 | 19,349 | |||
2016 | 51,065 | |||
2017 | 33,278 | |||
Total | 139,427 | |||
All outstanding liabilities before 2008, net of reinsurance | 102,164 | |||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ | 1,300,361 | ||
Reconciliation of the Disclosure of Incurred and Paid Claims Development to the Liability for Unpaid Claims and Claim Adjustment Expenses | ||||||||||||
At December 31, 2017 | ||||||||||||
Net outstanding liabilities | Reinsurance recoverable on unpaid claims | Gross outstanding liabilities | ||||||||||
Insurance Segment | ||||||||||||
Property and Other | $ | 880,954 | $ | 181,101 | $ | 1,062,055 | ||||||
Marine | 213,390 | 106,466 | 319,856 | |||||||||
Aviation | 56,400 | 8,945 | 65,345 | |||||||||
Credit and Political Risk | 51,469 | 1,384 | 52,853 | |||||||||
Professional Lines | 1,559,564 | 853,130 | 2,412,694 | |||||||||
Liability | 569,759 | 896,266 | 1,466,025 | |||||||||
Total Insurance Segment | 3,331,536 | 2,047,292 | 5,378,828 | |||||||||
Reinsurance Segment | ||||||||||||
Property and Other | 1,220,069 | 214,394 | 1,434,463 | |||||||||
Credit and Surety | 375,762 | 13,061 | 388,823 | |||||||||
Professional Lines | 1,119,534 | 37,822 | 1,157,356 | |||||||||
Motor | 1,082,423 | 3,666 | 1,086,089 | |||||||||
Liability | 1,147,625 | 66,692 | 1,214,317 | |||||||||
Total Reinsurance Segment | 4,945,413 | 335,635 | 5,281,048 | |||||||||
Aviabel | 77,405 | 5,329 | 82,734 | |||||||||
Novae | 1,300,361 | 771,258 | 2,071,619 | |||||||||
Total | $ | 9,654,715 | $ | 3,159,514 | 12,814,229 | |||||||
Unallocated claims adjustment expenses | 170,168 | |||||||||||
Foreign exchange and other(1) | (45,262 | ) | ||||||||||
Assumed reserves related to retroactive transactions | 58,418 | |||||||||||
Total liability for unpaid claims and claims adjustment expense | $ | 12,997,553 | ||||||||||
Reconciliation of the disclosure of incurred and paid claims development to the liability for unpaid claims and claim adjustment expenses | ||||||||||||
At December 31, 2019 | ||||||||||||
Net outstanding liabilities | Reinsurance recoverable on unpaid claims | Gross outstanding liabilities | ||||||||||
Insurance segment | ||||||||||||
Property and other | $ | 579,613 | $ | 358,193 | $ | 937,806 | ||||||
Marine | 350,692 | 164,005 | 514,697 | |||||||||
Aviation | 86,940 | 36,094 | 123,034 | |||||||||
Credit and political risk | 98,219 | 34,615 | 132,834 | |||||||||
Professional lines | 1,680,272 | 1,105,684 | 2,785,956 | |||||||||
Liability | 738,722 | 1,108,382 | 1,847,104 | |||||||||
Total insurance segment | 3,534,458 | 2,806,973 | 6,341,431 | |||||||||
Reinsurance segment | ||||||||||||
Property and other | 1,644,046 | 448,885 | 2,092,931 | |||||||||
Credit and surety | 256,999 | 64,475 | 321,474 | |||||||||
Professional lines | 969,167 | 135,505 | 1,104,672 | |||||||||
Motor | 1,229,604 | 209,495 | 1,439,099 | |||||||||
Liability | 1,228,290 | 212,423 | 1,440,713 | |||||||||
Total reinsurance segment | 5,328,106 | 1,070,783 | 6,398,889 | |||||||||
Total | $ | 8,862,564 | $ | 3,877,756 | 12,740,320 | |||||||
Unallocated claims adjustment expenses | 140,650 | |||||||||||
Foreign exchange and other(1) | 27,202 | |||||||||||
(Ceded)/assumed reserves related to retroactive transactions | (156,091 | ) | ||||||||||
Total liability for unpaid claims and claims adjustment expense | $ | 12,752,081 | ||||||||||
(1) | Non-U.S. dollar denominated loss data is converted to U.S dollar at the rates of exchange in effect at the balance sheetdate for material underlying currencies. Fluctuations in currency exchange rates may cause material shifts in loss development. Reserves for losses and loss expenses disclosed in the |
Year ended December 31, | 2019 | 2018 | 2017 | ||||||||||||||||||||||
Premiums written | Premiums earned | Premiums written | Premiums earned | Premiums written | Premiums earned | ||||||||||||||||||||
Gross | $ | 6,898,858 | $ | 6,910,677 | $ | 6,910,065 | $ | 6,882,217 | $ | 5,556,273 | $ | 5,616,234 | |||||||||||||
Ceded | (2,409,243 | ) | (2,323,499 | ) | (2,251,103 | ) | (2,090,722 | ) | (1,529,130 | ) | (1,467,474 | ) | |||||||||||||
Net | $ | 4,489,615 | $ | 4,587,178 | $ | 4,658,962 | $ | 4,791,495 | $ | 4,027,143 | $ | 4,148,760 | |||||||||||||
Year ended December 31, | 2017 | 2016 | 2015 | ||||||||||||||||||||||
Premiums written | Premiums earned | Premiums written | Premiums earned | Premiums written | Premiums earned | ||||||||||||||||||||
Gross | $ | 5,556,273 | $ | 5,616,234 | $ | 4,970,208 | $ | 4,762,394 | $ | 4,603,730 | $ | 4,567,953 | |||||||||||||
Ceded | (1,529,130 | ) | (1,467,474 | ) | (1,217,234 | ) | (1,056,769 | ) | (929,064 | ) | (881,536 | ) | |||||||||||||
Net | $ | 4,027,143 | $ | 4,148,760 | $ | 3,752,974 | $ | 3,705,625 | $ | 3,674,666 | $ | 3,686,417 | |||||||||||||
DEBT AND FINANCING ARRANGEMENTS |
a) | Debt |
Year ended December 31, | 2019 | 2018 | |||||||
5.875% Senior Notes | $ | 499,687 | $ | 498,967 | |||||
2.650% Senior Notes(1) | — | 249,885 | |||||||
5.150% Senior Notes | 246,491 | 246,425 | |||||||
4.000% Senior Notes | 346,997 | 346,684 | |||||||
3.900% Senior Notes | 295,339 | — | |||||||
Junior Subordinated Notes | 419,643 | — | |||||||
Total Debt | $ | 1,808,157 | $ | 1,341,961 | |||||
(1) | On April 1, 2019, AXIS Specialty Finance PLC, a 100% owned finance subsidiary, repaid $250 million aggregate principal amount of 2.650% Senior Notes |
Description | Issuance Date | Aggregate Principal | Issue Price | Net Proceeds | Maturity Date | |||||||||
5.875% Senior Notes | March 23, 2010 | 500,000 | 99.624 | % | 495,000 | June 1, 2020 | ||||||||
5.150% Senior Notes | March 13, 2014 | 250,000 | 99.474 | % | 246,000 | April 1, 2045 | ||||||||
4.000% Senior Notes | December 6, 2017 | 350,000 | 99.780 | % | 347,000 | December 6, 2027 | ||||||||
3.900% Senior Notes | June 19, 2019 | 300,000 | 99.360 | % | 296,000 | July 15, 2029 | ||||||||
Junior Subordinated Notes | December 10, 2019 | 425,000 | 99.000 | % | 420,750 | January 15, 2040 |
Description | Interest Rate | Interest Payments Due | ||||
5.875% Senior Notes | 5.875 | % | Semi-annually in arrears on June 1 and December 1 of each year | |||
5.150% Senior Notes | 5.150 | % | Semi-annually in arrears on April 1 and October 1 of each year | |||
4.000% Senior Notes | 4.000 | % | Semi-annually in arrears on June 6 and December 6 of each year | |||
3.900% Senior Notes | 3.900 | % | Semi-annually in arrears on January 15 and July 15 of each year | |||
Junior Subordinated Notes(2) | 4.900 | % | Semi-annually on January 15 and July 15 of each year |
(2) | The Junior Notes accrue interest from the date of issuance to, but excluding, January 15, 2030 (the "Par Call Date") at the fixed rate of 4.900% and from, and including, the Par Call Date, at a rate equal to the Five-Year Treasury Rate as of the Reset Interest Determination Date, plus 3.186%. Interest of the Junior Notes is payable semi-annually on January 15 and July 15 of each year, beginning on July 15, 2020. |
AXIS CAPITAL HOLDINGS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2019, 2018 AND 2017 10. DEBT AND FINANCING ARRANGEMENTS (CONTINUED) Junior Subordinated Notes The 4.900% Fixed-Rate Reset Junior Notes are ranked as unsecured junior subordinated obligations of AXIS Specialty Finance LLC, a 100% owned finance subsidiary. AXIS Capital has fully and unconditionally guaranteed all obligations of AXIS Specialty Finance LLC under the Junior Notes. AXIS Capital's obligation under this guarantee is an unsecured junior subordinated obligation and ranks equally with all future unsecured and junior subordinated obligations of AXIS Capital, and junior in right of payment to all outstanding and future senior obligations of AXIS Capital. Interest expense recognized in relation to the Junior Notes includes interest payable and amortization of debt offering expenses. The debt offering expenses are amortized over the period of time during which the Junior Notes are outstanding. For the year ended December 31, 2019, the Company incurred interest expense of $1 million. Dekania Notes |
Year ended December 31, | |||||
2020 | $ | 500,000 | |||
2021 | — | ||||
2022 | — | ||||
2023 | — | ||||
2024 | — | ||||
After 2024 | 1,325,000 | ||||
Unamortized discount and debt issuance expenses | (16,843 | ) | |||
Total senior notes and notes payable | $ | 1,808,157 | |||
Year ended December 31, | |||||
2018 | $ | — | |||
2019 | 250,000 | ||||
2020 | 500,000 | ||||
2021 | — | ||||
2022 | — | ||||
After 2022 | 636,060 | ||||
Unamortized discount and debt issuance expenses | (9,531 | ) | |||
Total senior notes and notes payable | $ | 1,376,529 | |||
COMMITMENTS AND CONTINGENCIES |
a) | Concentrations of Credit Risk |
COMMITMENTS AND CONTINGENCIES (CONTINUED) |
Year ended December 31, | |||||
2018 | $ | 27,777 | |||
2019 | 26,514 | ||||
2020 | 22,661 | ||||
2021 | 23,817 | ||||
2022 | 22,745 | ||||
Later years | 84,606 | ||||
Total future minimum lease payments | $ | 208,120 | |||
d) | Legal Proceedings |
e) | Investments |
11. | COMMITMENTS AND CONTINGENCIES (CONTINUED) |
f) | Funds at Lloyd's |
At and year ended December 31, | 2017 | 2016 | 2015 | ||||||||||
Basic earnings (loss) per common share | |||||||||||||
Net income (loss) | $ | (368,969 | ) | $ | 513,368 | $ | 641,631 | ||||||
Less: Preferred share dividends | 46,810 | 46,597 | 40,069 | ||||||||||
Less: Loss on repurchase of preferred shares | — | 1,309 | — | ||||||||||
Net income (loss) available to common shareholders | $ | (415,779 | ) | $ | 465,462 | $ | 601,562 | ||||||
Weighted average common shares outstanding - basic(1) | 84,108 | 90,772 | 98,609 | ||||||||||
Basic earnings (loss) per common share | $ | (4.94 | ) | $ | 5.13 | $ | 6.10 | ||||||
Diluted basic earnings (loss) per common share | |||||||||||||
Net income (loss) available to common shareholders | $ | (415,779 | ) | $ | 465,462 | $ | 601,562 | ||||||
Weighted average common shares outstanding - basic(1) | 84,108 | 90,772 | 98,609 | ||||||||||
Share-based compensation plans(2) | — | 775 | 1,020 | ||||||||||
Weighted average common shares outstanding - diluted(1) | 84,108 | 91,547 | 99,629 | ||||||||||
Diluted earnings (loss) per common share | $ | (4.94 | ) | $ | 5.08 | $ | 6.04 | ||||||
Weighted average anti-dilutive shares excluded from the dilutive computation | 702 | 170 | 165 | ||||||||||
Year ended | |||||
December 31, 2019 | |||||
Lease cost: | |||||
Operating lease expense | $ | 27,549 | |||
Short-term lease expense(1) | 1,132 | ||||
Sublease income(2) | (1,144 | ) | |||
Total lease expense | $ | 27,537 | |||
Other information: | |||||
Operating cash outflows from operating leases | $ | 25,004 | |||
Right-of-use assets obtained in exchange for new operating lease liabilities | $ | — | |||
Weighted-average remaining lease term - operating leases(3) | 9.0 years | ||||
Weighted-average discount rate - operating lease(4) | 4.7 | % |
(1) Short-term lease expense is recognized on a straight-line basis over the lease term. (2) Sublease income largely relates to office property in London, England. (3) Weighted-average remaining lease term was calculated on the basis of the remaining lease term and the lease liability balance for each lease at the reporting date. (4) Weighted-average discount was calculated on the basis of the discount rate for the lease that was used to calculate the lease liability balance for each lease at the reporting date and the remaining balance of the lease payments for each lease at the reporting date. |
12. | LEASES (CONTINUED) |
Expected | |||||
Year ended December 31, | Cash Flows | ||||
2020 | $ | 19,225 | |||
2021 | 19,129 | ||||
2022 | 20,049 | ||||
2023 | 16,641 | ||||
2024 | 11,006 | ||||
Later years | 58,562 | ||||
Discount | (29,028 | ) | |||
Total discounted operating lease liabilities | $ | 115,584 | |||
Year ended December 31, | |||||
2019 | $ | 28,240 | |||
2020 | 25,331 | ||||
2021 | 27,025 | ||||
2022 | 28,012 | ||||
2023 | 23,801 | ||||
Later years | 118,497 | ||||
Total future minimum lease payments | $ | 250,906 | |||
13. | EARNINGS PER COMMON SHARE |
At and year ended December 31, | 2019 | 2018 | 2017 | ||||||||||
Earnings (loss) per common share | |||||||||||||
Net income (loss) | $ | 323,473 | $ | 43,021 | $ | (368,969 | ) | ||||||
Less: Preferred share dividends | 41,112 | 42,625 | 46,810 | ||||||||||
Net income (loss) available (attributable) to common shareholders | $ | 282,361 | $ | 396 | $ | (415,779 | ) | ||||||
Weighted average common shares outstanding | 83,894 | 83,501 | 84,108 | ||||||||||
Earnings (loss) per common share | $ | 3.37 | $ | — | $ | (4.94 | ) | ||||||
Earnings (loss) per diluted common share | |||||||||||||
Net income (loss) available (attributable) to common shareholders | $ | 282,361 | $ | 396 | $ | (415,779 | ) | ||||||
Weighted average common shares outstanding | 83,894 | 83,501 | 84,108 | ||||||||||
Share-based compensation plans(1) | 579 | 506 | — | ||||||||||
Weighted average diluted common shares outstanding(1) | 84,473 | 84,007 | 84,108 | ||||||||||
Earnings (loss) per diluted common share | $ | 3.34 | $ | — | $ | (4.94 | ) | ||||||
Weighted average anti-dilutive shares excluded from the dilutive computation | 154 | 245 | 702 | ||||||||||
(1) | Due to the net loss recognized for the year ended December 31, 2017, the share equivalents were anti-dilutive. |
14. | SHAREHOLDERS' EQUITY |
a) | Common Shares |
Year ended December 31, | 2019 | 2018 | 2017 | |||||||
Shares issued, balance at beginning of year | 176,580 | 176,580 | 176,580 | |||||||
Shares issued | — | — | — | |||||||
Total shares issued at end of year | 176,580 | 176,580 | 176,580 | |||||||
Treasury shares, balance at beginning of year | (92,994 | ) | (93,419 | ) | (90,139 | ) | ||||
Shares repurchased | (176 | ) | (200 | ) | (4,288 | ) | ||||
Shares reissued | 549 | 625 | 1,008 | |||||||
Total treasury shares at end of year | (92,621 | ) | (92,994 | ) | (93,419 | ) | ||||
Total shares outstanding | 83,959 | 83,586 | 83,161 | |||||||
Year ended December 31, | 2017 | 2016 | 2015 | |||||||
Shares issued, balance at beginning of year | 176,580 | 176,240 | 175,478 | |||||||
Shares issued | — | 340 | 762 | |||||||
Total shares issued at end of year | 176,580 | 176,580 | 176,240 | |||||||
Treasury shares, balance at beginning of year | (90,139 | ) | (80,174 | ) | (76,052 | ) | ||||
Shares repurchased | (4,288 | ) | (10,508 | ) | (4,616 | ) | ||||
Shares reissued | 1,008 | 543 | 494 | |||||||
Total treasury shares at end of year | (93,419 | ) | (90,139 | ) | (80,174 | ) | ||||
Total shares outstanding | 83,161 | 86,441 | 96,066 | |||||||
Year ended December 31, | 2019 | 2018 | 2017 | ||||||||||
In the open market: | |||||||||||||
Total shares | — | — | 3,932 | ||||||||||
Total cost | $ | — | $ | — | $ | 261,180 | |||||||
Average price per share(1) | $ | — | $ | — | $ | 66.43 | |||||||
From employees:(2) | |||||||||||||
Total shares | 176 | 200 | 356 | ||||||||||
Total cost | $ | 10,165 | $ | 10,080 | $ | 24,678 | |||||||
Average price per share(1) | $ | 57.66 | $ | 50.40 | $ | 69.36 | |||||||
Total shares repurchased: | |||||||||||||
Total shares | 176 | 200 | 4,288 | ||||||||||
Total cost | $ | 10,165 | $ | 10,080 | $ | 285,858 | |||||||
Average price per share(1) | $ | 57.66 | $ | 50.40 | $ | 66.67 | |||||||
(1) | Calculated using whole numbers. |
(2) | Shares are repurchased from employees to satisfy withholding tax liabilities that arise on the vesting of share-settled restricted stock units. |
14. | SHAREHOLDERS' EQUITY (CONTINUED) |
Year ended December 31, | 2017 | 2016 | 2015 | ||||||||||
In the open market: | |||||||||||||
Total shares(1) | 3,932 | 10,241 | 4,264 | ||||||||||
Total cost | $ | 261,180 | $ | 557,476 | $ | 246,490 | |||||||
Average price per share(2) | $ | 66.43 | $ | 54.44 | $ | 57.80 | |||||||
From employees:(3) | |||||||||||||
Total shares | 356 | 267 | 352 | ||||||||||
Total cost | $ | 24,678 | $ | 14,329 | $ | 18,048 | |||||||
Average price per share(2) | $ | 69.36 | $ | 53.74 | $ | 51.34 | |||||||
Total shares repurchased: | |||||||||||||
Total shares | 4,288 | 10,508 | 4,616 | ||||||||||
Total cost | $ | 285,858 | $ | 571,805 | $ | 264,538 | |||||||
Average price per share(2) | $ | 66.67 | $ | 54.42 | $ | 57.32 | |||||||
b) | Preferred Shares |
Per share data | |||||||||||||
Dividends declared | Dividends paid in year of declaration | Dividends paid in year following declaration | |||||||||||
Year ended December 31, 2017 | |||||||||||||
Common shares | $ | 1.53 | $ | 1.14 | $ | 0.39 | |||||||
Series C preferred shares | $ | 0.43 | $ | 0.43 | $ | — | |||||||
Series D preferred shares | $ | 1.38 | $ | 1.03 | $ | 0.34 | |||||||
Series E preferred shares | $ | 137.50 | $ | 103.13 | $ | 34.38 | |||||||
Year ended December 31, 2018 | |||||||||||||
Common shares | $ | 1.57 | $ | 1.17 | $ | 0.40 | |||||||
Series D preferred shares | $ | 1.38 | $ | 1.03 | $ | 0.34 | |||||||
Series E preferred shares | $ | 137.50 | $ | 103.13 | $ | 34.38 | |||||||
Year ended December 31, 2019 | |||||||||||||
Common shares | $ | 1.61 | $ | 1.20 | $ | 0.41 | |||||||
Series D preferred shares | $ | 1.21 | $ | 1.03 | $ | 0.18 | |||||||
Series E preferred shares | $ | 137.50 | $ | 103.13 | $ | 34.38 | |||||||
16. | SHARE-BASED COMPENSATION |
16. | SHARE-BASED COMPENSATION (CONTINUED) |
a) | Share-Settled Awards |
Share-Settled Performance Restricted Stock Units | Share-Settled Service Restricted Stock Units | ||||||||||||||
Number of restricted stock units | Weighted average grant date fair value(1) | Number of restricted stock units | Weighted average grant date fair value(1) | ||||||||||||
Nonvested restricted stock units - December 31, 2017 | 230 | $ | 57.08 | 1,355 | $ | 57.09 | |||||||||
Granted | 104 | 48.89 | 737 | 49.36 | |||||||||||
Vested | (87 | ) | 54.71 | (539 | ) | 54.51 | |||||||||
Forfeited | (15 | ) | 53.80 | (142 | ) | 55.36 | |||||||||
Nonvested restricted stock units - December 31, 2018 | 232 | 54.54 | 1,411 | 54.12 | |||||||||||
Granted | 127 | 54.70 | 523 | 54.88 | |||||||||||
Vested | (61 | ) | 53.82 | (487 | ) | 54.29 | |||||||||
Forfeited | (40 | ) | 64.01 | (174 | ) | 54.49 | |||||||||
Nonvested restricted stock units - December 31, 2019 | 258 | $ | 53.31 | 1,273 | $ | 54.32 | |||||||||
16. | SHARE-BASED COMPENSATION (CONTINUED) |
Cash-Settled Performance Restricted Stock Units | Cash-Settled Service Restricted Stock Units | ||||||
Number of restricted stock units | Number of restricted stock units | ||||||
Nonvested restricted stock units - December 31, 2017 | 42 | 988 | |||||
Granted | — | 473 | |||||
Vested | (12 | ) | (390 | ) | |||
Forfeited | (3 | ) | (139 | ) | |||
Nonvested restricted stock units - December 31, 2018 | 27 | 932 | |||||
Granted | — | 364 | |||||
Vested | (12 | ) | (333 | ) | |||
Forfeited | (9 | ) | (110 | ) | |||
Nonvested restricted stock units - December 31, 2019 | 6 | 853 | |||||
Share Settled PSUs | Share Settled - Service Based Restricted Stock | ||||||||||||||
Number of Restricted Stock | Weighted Average Grant Date Fair Value(1) | Number of Restricted Stock | Weighted Average Grant Date Fair Value(1) | ||||||||||||
Nonvested restricted stock - December 31, 2015 | 201 | $ | 49.24 | 1,954 | $ | 43.34 | |||||||||
Granted | 104 | 53.80 | 589 | 53.87 | |||||||||||
Performance Adjustment | 26 | 45.95 | n/a | n/a | |||||||||||
Vested | (48 | ) | 45.38 | (789 | ) | 39.29 | |||||||||
Forfeited | — | — | (161 | ) | 47.33 | ||||||||||
Nonvested restricted stock - December 31, 2016 | 283 | 51.27 | 1,593 | 48.88 | |||||||||||
Granted | 87 | 64.58 | 733 | 61.94 | |||||||||||
Vested(2) | (119 | ) | 49.14 | (889 | ) | 47.48 | |||||||||
Forfeited | (21 | ) | 55.00 | (82 | ) | 54.89 | |||||||||
Nonvested restricted stock - December 31, 2017 | 230 | $ | 57.08 | 1,355 | $ | 57.09 | |||||||||
Year ended December 31, | 2019 | 2018 | 2017 | ||||||||||
Share-based compensation expense (1) | $ | 52,218 | $ | 54,011 | $ | 67,697 | |||||||
Tax benefits associated with share-based compensation expense | $ | 8,913 | $ | 7,772 | $ | 14,937 | |||||||
Liability for cash-settled restricted stock units (2) | $ | 21,731 | $ | 20,648 | $ | 21,535 | |||||||
Fair value of restricted stock units vested (3)(4) | $ | 51,206 | $ | 50,750 | $ | 124,990 | |||||||
Unrecognized share-based compensation expense | $ | 75,770 | $ | 87,341 | $ | 94,315 | |||||||
Expected weighted average period to recognize unrecognized share-based compensation expense | 2.3 years | 2.4 years | 2.5 years | ||||||||||
Cash Settled PSUs | Service-based Cash Settled RSUs | ||||||
Number of Restricted Stock Units | Number of Restricted Stock Units | ||||||
Nonvested restricted stock units - December 31, 2015 | 70 | 1,433 | |||||
Granted | 18 | 497 | |||||
Performance Adjustment | 12 | n/a | |||||
Vested | (32 | ) | (377 | ) | |||
Forfeited | — | (161 | ) | ||||
Nonvested restricted stock units - December 31, 2016 | 68 | 1,392 | |||||
Granted | 15 | 432 | |||||
Vested(1) | (38 | ) | (763 | ) | |||
Forfeited | (3 | ) | (73 | ) | |||
Nonvested restricted stock units - December 31, 2017 | 42 | 988 | |||||
17. RELATED PARTY TRANSACTIONS |
17. | RELATED PARTY TRANSACTIONS (CONTINUED) |
18. | TRANSACTION AND REORGANIZATION EXPENSES |
19. | INCOME TAXES |
19. | INCOME TAXES (CONTINUED) |
Year ended December 31, | 2019 | 2018 | 2017 | ||||||||||
Current income tax expense (benefit) | |||||||||||||
U.S. | $ | 12,601 | $ | (5,401 | ) | $ | (6,207 | ) | |||||
Europe | 22,425 | 10,409 | 10,249 | ||||||||||
Other | 469 | 51 | — | ||||||||||
Deferred income tax expense (benefit) | |||||||||||||
U.S. | 17,665 | 15,288 | 18,495 | ||||||||||
Europe | (29,468 | ) | (49,833 | ) | (30,079 | ) | |||||||
Total income tax expense (benefit) | $ | 23,692 | $ | (29,486 | ) | $ | (7,542 | ) | |||||
Net current tax receivables (payables) | $ | 13,130 | $ | 9,683 | $ | (639 | ) | ||||||
Net deferred tax assets | 18,621 | 39,775 | 4,438 | ||||||||||
Net tax assets | $ | 31,751 | $ | 49,458 | $ | 3,799 | |||||||
Year ended December 31, | 2017 | 2016 | 2015 | ||||||||||
Current income tax expense (benefit) | |||||||||||||
U.S. | $ | (6,207 | ) | $ | 606 | $ | 4,927 | ||||||
Europe | 10,249 | 7,451 | 144 | ||||||||||
Other | — | — | 5 | ||||||||||
Deferred income tax expense (benefit) | |||||||||||||
U.S. | 18,495 | (1,829 | ) | (267 | ) | ||||||||
Europe | (30,079 | ) | 112 | (1,781 | ) | ||||||||
Total income tax expense (benefit) | $ | (7,542 | ) | $ | 6,340 | $ | 3,028 | ||||||
Net current tax receivables (payables) | $ | (639 | ) | $ | 3,540 | $ | (69 | ) | |||||
Net deferred tax assets | 4,438 | 103,313 | 104,762 | ||||||||||
Net tax assets | $ | 3,799 | $ | 106,853 | $ | 104,693 | |||||||
At December 31, | 2019 | 2018 | |||||||
Deferred tax assets: | |||||||||
Discounting of net reserves for losses and loss expenses | $ | 40,523 | $ | 37,440 | |||||
Unearned premiums | 42,709 | 40,447 | |||||||
Net unrealized investments losses | — | 11,438 | |||||||
Operating and capital loss carryforwards(1) | 85,901 | 83,850 | |||||||
Accruals not currently deductible | 29,705 | 32,589 | |||||||
Tax credits | 2,956 | 8,672 | |||||||
Other deferred tax assets | 14,355 | 9,195 | |||||||
Deferred tax assets before valuation allowance | 216,149 | 223,631 | |||||||
Valuation allowance | (18,560 | ) | (18,955 | ) | |||||
Deferred tax assets net of valuation allowance | 197,589 | 204,676 | |||||||
Deferred tax liabilities: | |||||||||
Deferred acquisition costs | (38,320 | ) | (39,745 | ) | |||||
Net unrealized investments gains | (30,434 | ) | — | ||||||
Intangible assets | (44,199 | ) | (49,097 | ) | |||||
Equalization reserves | (2,825 | ) | (22,069 | ) | |||||
Other deferred tax liabilities | (63,190 | ) | (53,990 | ) | |||||
Deferred tax liabilities | (178,968 | ) | (164,901 | ) | |||||
Net deferred tax assets | $ | 18,621 | $ | 39,775 | |||||
(1) | At December 31, 2019 and 2018, the total operating loss carryforwards includes Lloyd's deferred year of account losses of $50 million and $68 million, respectively. |
At December 31, | 2017 | 2016 | |||||||
Deferred tax assets: | |||||||||
Discounting of net reserves for losses and loss expenses | $ | 27,804 | $ | 47,258 | |||||
Unearned premiums | 25,188 | 41,797 | |||||||
Operating and capital loss carryforwards | 53,095 | 43,687 | |||||||
Accruals not currently deductible | 31,560 | 59,098 | |||||||
Other investment adjustments and impairments | — | 84 | |||||||
Tax credits | 29,929 | 10,139 | |||||||
Other deferred tax assets | 15,047 | 3,684 | |||||||
Deferred tax assets before valuation allowance | 182,623 | 205,747 | |||||||
Valuation allowance | (16,157 | ) | (41,100 | ) | |||||
Deferred tax assets net of valuation allowance | 166,466 | 164,647 | |||||||
Deferred tax liabilities: | |||||||||
Deferred acquisition costs | (24,249 | ) | (45,788 | ) | |||||
Net unrealized investments gains | (8,033 | ) | (1,168 | ) | |||||
Amortization of VOBA, intangible assets and goodwill | (85,296 | ) | (13,096 | ) | |||||
Equalization reserves | (23,274 | ) | — | ||||||
Other deferred tax liabilities | (21,176 | ) | (1,282 | ) | |||||
Deferred tax liabilities | (162,028 | ) | (61,334 | ) | |||||
Net deferred tax assets | $ | 4,438 | $ | 103,313 | |||||
19. | INCOME TAXES (CONTINUED) |
At December 31, | 2017 | 2016 | |||||||
Operating and Capital Loss Carryforwards(1) | |||||||||
Singapore (branch) operating loss carryforward | $ | 77,467 | $ | 83,532 | |||||
Australia (branch) operating loss carryforward(2) | — | 147,193 | |||||||
Australia (branch) capital loss carryforward(2) | — | 4,207 | |||||||
U. K. operating loss carryforward(3) | 126,839 | 19,306 | |||||||
Ireland capital loss carryforward | 716 | 716 | |||||||
U.S. operating loss carryforward | 115,236 | 14,221 | |||||||
Tax Credits(1) | |||||||||
Ireland foreign tax credit | $ | 3,566 | $ | 3,298 | |||||
U.S. alternative minimum tax credit | 12,052 | 6,840 | |||||||
U.K. tax credit(3) | 14,310 | — | |||||||
At December 31, | 2019 | 2018 | |||||||
Operating and Capital Loss Carryforwards(1) | |||||||||
Singapore (branch) operating loss carryforward | $ | 103,899 | $ | 79,445 | |||||
U.K. operating loss carryforward(2) | 431,374 | 413,504 | |||||||
Ireland operating loss carryforward | 9,064 | 12,756 | |||||||
U.S. operating loss carryforward | — | 15,062 | |||||||
Ireland capital loss carryforward | 716 | 716 | |||||||
Tax Credits(1) | |||||||||
Ireland foreign tax credit | $ | 2,092 | $ | 2,248 | |||||
U.S. alternative minimum tax credit | — | 6,026 | |||||||
U.K. tax credit | 864 | 398 | |||||||
(1) |
(2) |
At December 31, | 2017 | 2016 | |||||||
Income tax expense: | |||||||||
Valuation allowance - beginning of year | $ | 41,100 | $ | 40,331 | |||||
Operating loss carryforwards | (27,116 | ) | 3,857 | ||||||
Foreign tax credit | 267 | (2,775 | ) | ||||||
Australian CTA and accruals and other foreign rate differentials | 1,006 | (313 | ) | ||||||
Change in investment-related items | 900 | — | |||||||
Valuation allowance - end of year | $ | 16,157 | $ | 41,100 | |||||
At December 31, | 2019 | 2018 | |||||||
Income tax expense: | |||||||||
Valuation allowance - beginning of year | $ | 13,891 | $ | 16,157 | |||||
Operating loss carryforwards | 2,445 | 198 | |||||||
Foreign tax credit | (114 | ) | (1,359 | ) | |||||
U.K. branch assets and other foreign rate differentials | 2,338 | (205 | ) | ||||||
U.S. alternative minimum tax credits | — | (900 | ) | ||||||
Valuation allowance - end of year | $ | 18,560 | $ | 13,891 | |||||
Accumulated other comprehensive income: | |||||||||
Valuation allowance - beginning of year | 5,064 | — | |||||||
Change in investment - related items | (5,064 | ) | 5,064 | ||||||
Valuation allowance - end of year | — | 5,064 | |||||||
Total valuation allowance - end of year | $ | 18,560 | $ | 18,955 | |||||
19. | INCOME TAXES (CONTINUED) |
Year ended December 31, | 2019 | 2018 | 2017 | ||||||||||
Income (loss) before income taxes | |||||||||||||
Bermuda (domestic) | $ | 179,418 | $ | 181,597 | $ | (188,420 | ) | ||||||
Foreign | 167,747 | (168,062 | ) | (188,091 | ) | ||||||||
Total income (loss) before income taxes | $ | 347,165 | $ | 13,535 | $ | (376,511 | ) | ||||||
Reconciliation of effective tax rate (% of income before income taxes) | |||||||||||||
Expected tax rate | 0.0 | % | 0.0 | % | 0.0 | % | |||||||
Foreign taxes at local expected rates: | |||||||||||||
U.S. | 8.1 | % | 65.7 | % | 6.6 | % | |||||||
Europe | 0.4 | % | (289.7 | )% | 5.8 | % | |||||||
Other | — | % | 0.0 | % | 0.3 | % | |||||||
Valuation allowance | 1.3 | % | (13.4 | )% | — | % | |||||||
Net tax exempt income | — | % | (3.3 | )% | 0.1 | % | |||||||
Change in U.S. enacted tax rate | — | % | 0.0 | % | (11.1 | )% | |||||||
Change in European enacted tax rate | — | % | 16.9 | % | — | % | |||||||
Other | (3.0 | )% | 5.9 | % | 0.3 | % | |||||||
Actual tax rate | 6.8 | % | (217.9 | )% | 2.0 | % | |||||||
Year ended December 31, | 2017 | 2016 | 2015 | ||||||||||
Income (loss) before income taxes | |||||||||||||
Bermuda (domestic) | $ | (188,420 | ) | $ | 469,306 | $ | 652,235 | ||||||
Foreign | (188,091 | ) | 50,402 | (7,576 | ) | ||||||||
Total income before income taxes | $ | (376,511 | ) | $ | 519,708 | $ | 644,659 | ||||||
Reconciliation of effective tax rate (% of income before income taxes) | |||||||||||||
Expected tax rate | 0.0 | % | 0.0 | % | 0.0 | % | |||||||
Foreign taxes at local expected rates: | |||||||||||||
U.S. | 6.6 | % | (0.6 | )% | 0.8 | % | |||||||
Europe | 5.8 | % | 1.5 | % | (0.2 | )% | |||||||
Other | 0.3 | % | 0.0 | % | (0.3 | )% | |||||||
Valuation allowance | 0.0 | % | 0.2 | % | 1.2 | % | |||||||
Net tax exempt income | 0.1 | % | (0.2 | )% | (0.1 | )% | |||||||
Change in U.S. enacted tax rate | (11.1 | )% | 0.0 | % | 0.0 | % | |||||||
Other | 0.3 | % | 0.3 | % | (0.9 | )% | |||||||
Actual tax rate | 2.0 | % | 1.2 | % | 0.5 | % | |||||||
20. | OTHER COMPREHENSIVE INCOME (LOSS) |
Before tax amount | Income tax (expense) benefit | Net of tax amount | |||||||||||
Year ended December 31, 2019 | |||||||||||||
Available for sale investments: | |||||||||||||
Unrealized gains (loss) arising during the year | $ | 414,982 | $ | (40,367 | ) | $ | 374,615 | ||||||
Adjustment for reclassification of net realized (gains) losses and OTTI losses recognized in net income | (29,618 | ) | 4,889 | (24,729 | ) | ||||||||
Unrealized gains (losses) arising during the year, net of reclassification adjustment | 385,364 | (35,478 | ) | 349,886 | |||||||||
Foreign currency translation adjustment | (1,066 | ) | — | (1,066 | ) | ||||||||
Total other comprehensive income (loss), net of tax | $ | 384,298 | $ | (35,478 | ) | $ | 348,820 | ||||||
Year ended December 31, 2018 | |||||||||||||
Available for sale investments: | |||||||||||||
Unrealized gains (losses) arising during the year | $ | (297,259 | ) | $ | 5,528 | $ | (291,731 | ) | |||||
Adjustment for reclassification of net realized (gains) losses and OTTI losses recognized in net income | 105,730 | (4,828 | ) | 100,902 | |||||||||
Unrealized gains (losses) arising during the year, net of reclassification adjustment (1) | (191,529 | ) | 700 | (190,829 | ) | ||||||||
Foreign currency translation adjustment | (11,165 | ) | — | (11,165 | ) | ||||||||
Total other comprehensive income (loss), net of tax | $ | (202,694 | ) | $ | 700 | $ | (201,994 | ) | |||||
Year ended December 31, 2017 | |||||||||||||
Available for sale investments: | |||||||||||||
Unrealized gains (losses) arising during the year | $ | 211,151 | $ | (5,732 | ) | $ | 205,419 | ||||||
Adjustment for reclassification of net realized (gains) losses and OTTI losses recognized in net loss | (33,892 | ) | 758 | (33,134 | ) | ||||||||
Unrealized gains (losses) arising during the year, net of reclassification adjustment | 177,259 | (4,974 | ) | 172,285 | |||||||||
Foreign currency translation adjustment | 41,938 | — | 41,938 | ||||||||||
Total other comprehensive income (loss), net of tax | $ | 219,197 | $ | (4,974 | ) | $ | 214,223 | ||||||
(1) | Effective January 1, 2018, the Company adopted ASU No. 2016-01. The adoption of this guidance resulted in a cumulative adjustment to reclassify unrealized investment gains on equity securities from accumulated other comprehensive income to retained earnings. Refer to Item 8, Note 2 'Basis of Presentation and Significant Accounting Policies' to the consolidated financial statements for additional information. |
Before Tax Amount | Tax (Expense) Benefit | Net of Tax Amount | |||||||||||
Year ended December 31, 2017 | |||||||||||||
Available for sale investments: | |||||||||||||
Unrealized investment gains arising during the year | $ | 211,151 | $ | (5,732 | ) | $ | 205,419 | ||||||
Adjustment for reclassification of net realized investment gains and OTTI losses recognized in net income | (33,892 | ) | 758 | (33,134 | ) | ||||||||
Unrealized investment gains arising during the year, net of reclassification adjustment | 177,259 | (4,974 | ) | 172,285 | |||||||||
Non-credit portion of OTTI losses | — | — | — | ||||||||||
Foreign currency translation adjustment | 41,938 | — | 41,938 | ||||||||||
Total other comprehensive income, net of tax | $ | 219,197 | $ | (4,974 | ) | $ | 214,223 | ||||||
Year ended December 31, 2016 | |||||||||||||
Available for sale investments: | |||||||||||||
Unrealized investment gains arising during the year | $ | 10,165 | $ | (5,093 | ) | $ | 5,072 | ||||||
Adjustment for reclassification of net realized investment losses and OTTI losses recognized in net income | 60,423 | 1,767 | 62,190 | ||||||||||
Unrealized investment gains arising during the year, net of reclassification adjustment | 70,588 | (3,326 | ) | 67,262 | |||||||||
Non-credit portion of OTTI losses | — | — | — | ||||||||||
Foreign currency translation adjustment | (638 | ) | — | (638 | ) | ||||||||
Total other comprehensive income, net of tax | $ | 69,950 | $ | (3,326 | ) | $ | 66,624 | ||||||
Year ended December 31, 2015 | |||||||||||||
Available for sale investments: | |||||||||||||
Unrealized investment losses arising during the year | $ | (280,512 | ) | $ | 14,128 | $ | (266,384 | ) | |||||
Adjustment for reclassification of net realized investment losses and OTTI losses recognized in net income | 145,766 | (775 | ) | 144,991 | |||||||||
Unrealized investment losses arising during the year, net of reclassification adjustment | (134,746 | ) | 13,353 | (121,393 | ) | ||||||||
Non-credit portion of OTTI losses | — | — | — | ||||||||||
Foreign currency translation adjustment | (21,498 | ) | — | (21,498 | ) | ||||||||
Total other comprehensive loss, net of tax | $ | (156,244 | ) | $ | 13,353 | $ | (142,891 | ) | |||||
20. | OTHER COMPREHENSIVE INCOME (LOSS) (CONTINUED) |
Amount Reclassified from AOCI(1) | |||||||||||||||
Details About AOCI Components | Consolidated Statement of Operations Line Item That Includes Reclassification | Year ended December 31, | |||||||||||||
2017 | 2016 | 2015 | |||||||||||||
Unrealized investment gains (losses) on available for sale investments | |||||||||||||||
Other realized investment gains (losses) | $ | 48,385 | $ | (34,213 | ) | $ | (73,046 | ) | |||||||
OTTI losses | (14,493 | ) | (26,210 | ) | (72,720 | ) | |||||||||
Total before tax | 33,892 | (60,423 | ) | (145,766 | ) | ||||||||||
Income tax (expense) benefit | (758 | ) | (1,767 | ) | 775 | ||||||||||
Net of tax | $ | 33,134 | $ | (62,190 | ) | $ | (144,991 | ) | |||||||
Foreign currency translation adjustments | |||||||||||||||
Foreign exchange loss | $ | (24,149 | ) | $ | — | $ | — | ||||||||
Income tax (expense) benefit | — | — | — | ||||||||||||
Net of tax | $ | (24,149 | ) | $ | — | $ | — | ||||||||
Amounts reclassified from AOCI(1) | |||||||||||||||
AOCI components | Consolidated statement of operations line item that includes reclassification adjustment | Years ended December 31, | |||||||||||||
2019 | 2018 | 2017 | |||||||||||||
Unrealized gains (losses) on available for sale investments | |||||||||||||||
Other realized gains (losses) | $ | 36,602 | $ | (95,997 | ) | $ | 48,385 | ||||||||
OTTI losses | (6,984 | ) | (9,733 | ) | (14,493 | ) | |||||||||
Total before tax | 29,618 | (105,730 | ) | 33,892 | |||||||||||
Income tax (expense) benefit | (4,889 | ) | 4,828 | (758 | ) | ||||||||||
Net of tax | $ | 24,729 | $ | (100,902 | ) | $ | 33,134 | ||||||||
Foreign currency translation adjustments | |||||||||||||||
Foreign exchange gains (losses) | $ | 6,043 | $ | — | $ | (24,149 | ) | ||||||||
Income tax (expense) benefit | — | — | — | ||||||||||||
Net of tax | $ | 6,043 | $ | — | $ | (24,149 | ) | ||||||||
(1) | Amounts in parentheses are |
21. | STATUTORY FINANCIAL INFORMATION |
Bermuda | Ireland | U.S. | ||||||||||||||||||||
At December 31, | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||
Required statutory capital and surplus | $ | 1,502,153 | $ | 1,470,375 | $ | 719,405 | $ | 637,226 | $ | 500,750 | $ | 489,560 | ||||||||||
Available statutory capital and surplus | $ | 3,288,752 | $ | 3,513,342 | $ | 1,069,621 | $ | 896,868 | $ | 1,713,013 | $ | 1,668,847 | ||||||||||
Bermuda | Ireland | U.S. | ||||||||||||||||||||
At December 31, | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||
Required statutory capital and surplus | $ | 1,800,064 | $ | 1,835,279 | $ | 613,923 | $ | 552,678 | $ | 488,560 | $ | 430,145 | ||||||||||
Available statutory capital and surplus | $ | 3,641,279 | $ | 4,055,252 | $ | 906,512 | $ | 925,164 | $ | 1,511,480 | $ | 1,470,772 | ||||||||||
21. | STATUTORY FINANCIAL INFORMATION (CONTINUED) |
21. | STATUTORY FINANCIAL INFORMATION (CONTINUED) |
Quarters ended | Mar 31 | Jun 30 | Sep 30 | Dec 31 | |||||||||||||
2019 | |||||||||||||||||
Net premiums earned | $ | 1,134,212 | $ | 1,123,607 | $ | 1,157,307 | $ | 1,172,051 | |||||||||
Net investment income | 107,303 | 137,949 | 115,763 | 117,557 | |||||||||||||
Net investment gains | 12,767 | 21,225 | 14,527 | 42,712 | |||||||||||||
Underwriting income (loss) (1) (2) | 77,822 | 78,659 | (78,718 | ) | (49,254 | ) | |||||||||||
Net income (loss) available (attributable) to common shareholders | 98,125 | 166,387 | 27,745 | (9,897 | ) | ||||||||||||
Earnings (loss) per common share | $ | 1.17 | $ | 1.98 | $ | 0.33 | $ | (0.12 | ) | ||||||||
Earnings (loss) per diluted common share | $ | 1.16 | $ | 1.97 | $ | 0.33 | $ | (0.12 | ) | ||||||||
2018 | |||||||||||||||||
Net premiums earned | $ | 1,167,402 | $ | 1,185,548 | $ | 1,224,075 | $ | 1,214,469 | |||||||||
Net investment income | 100,999 | 109,960 | 114,421 | 113,128 | |||||||||||||
Net investment losses | (14,830 | ) | (45,093 | ) | (17,628 | ) | (72,667 | ) | |||||||||
Underwriting income (loss) | 143,737 | 115,726 | 59,026 | (194,664 | ) | ||||||||||||
Net income (loss) available (attributable) to common shareholders | 62,546 | 92,858 | 43,439 | (198,448 | ) | ||||||||||||
Earnings (loss) per common share | $ | 0.75 | $ | 1.11 | $ | 0.52 | $ | (2.37 | ) | ||||||||
Earnings (loss) per diluted common share | $ | 0.75 | $ | 1.11 | $ | 0.52 | $ | (2.37 | ) | ||||||||
Quarters ended | Mar 31 | Jun 30 | Sep 30 | Dec 31 | |||||||||||||
2017 | |||||||||||||||||
Net premiums earned | $ | 938,703 | $ | 981,431 | $ | 1,017,131 | $ | 1,211,495 | |||||||||
Net investment income | 98,664 | 106,063 | 95,169 | 100,908 | |||||||||||||
Net realized investment gains (losses) | (25,050 | ) | (4,392 | ) | 14,632 | 43,038 | |||||||||||
Underwriting income (loss) | 16,385 | 57,012 | (512,853 | ) | 26,130 | ||||||||||||
Net income (loss) available to common shareholders | 5,014 | 85,030 | (467,740 | ) | (38,081 | ) | |||||||||||
Earnings (loss) per common share - basic | $ | 0.06 | $ | 1.01 | $ | (5.61 | ) | $ | (0.46 | ) | |||||||
Earnings (loss) per common share - diluted | $ | 0.06 | $ | 1.01 | $ | (5.61 | ) | $ | (0.46 | ) | |||||||
2016 | |||||||||||||||||
Net premiums earned | $ | 902,340 | $ | 946,990 | $ | 934,415 | $ | 921,879 | |||||||||
Net investment income | 49,164 | 91,730 | 116,923 | 95,517 | |||||||||||||
Net realized investment gains (losses) | (66,508 | ) | 21,010 | 5,205 | (20,229 | ) | |||||||||||
Underwriting income | 98,951 | 9,860 | 103,998 | 66,265 | |||||||||||||
Net income available to common shareholders | 38,417 | 119,491 | 176,644 | 130,912 | |||||||||||||
Earnings per common share - basic | $ | 0.41 | $ | 1.30 | $ | 1.97 | $ | 1.50 | |||||||||
Earnings per common share - diluted | $ | 0.41 | $ | 1.29 | $ | 1.96 | $ | 1.48 | |||||||||
(1) |
(2) |
(3) | During the |
(4) | During the quarters ended March 31, June 30, September 30 and December 31, 2019, the Company recognized amortization of |
23. | SUBSEQUENT EVENTS |
ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |
ITEM 9A. | CONTROLS AND PROCEDURES |
/s/ Deloitte Ltd. |
Hamilton, Bermuda |
February |
ITEM 9B. | OTHER INFORMATION |
ITEM 10. | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE |
ITEM 11. | EXECUTIVE COMPENSATION |
ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS |
ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE |
ITEM 14. | PRINCIPAL ACCOUNTING FEES AND SERVICES |
ITEM 15. | EXHIBITS AND FINANCIAL STATEMENT SCHEDULES |
(a) | Financial Statements, Financial Statement Schedules and Exhibits |
1. | Financial Statements |
2. | Financial Statement Schedules |
Schedule I | – Summary of Investments - Other than Investments in Related Parties |
Schedule II | – Condensed Financial Information of Registrant |
Schedule III | – Supplementary Insurance Information |
Schedule IV | – Supplementary Reinsurance Information |
3. | Exhibits |
Exhibit Number | Description of Document | |
Termination Agreement dated August 2, 2015 by and between PartnerRe Ltd. and AXIS Capital Holdings Limited (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on August 3, 2015.) | ||
Rule 2.7 Announcement dated July 5, 2017 in connection with acquisition of Novae Group plc (incorporated by reference to Exhibit 2.1 to the Company's Current Report on Form 8-K filed on July 6, 2017). | ||
Rule 2.7 Announcement dated August 24, 2017 in connection with acquisition of Novae Group plc (incorporated by reference to Exhibit 2.1 to the Company's Current Report on Form 8-K filed on August 25, 2017). | ||
Certificate of Incorporation and Memorandum of Association of AXIS Capital Holdings Limited (incorporated by reference to Exhibit 3.1 to the Company's Registration Statement on Form S-1 (Amendment No. 1) (No. 333-103620) filed on April 16, 2003). | ||
Amended and Restated Bye-laws of AXIS Capital Holdings Limited (incorporated by reference to Exhibit 4.2 to the Company's Registration Statement on Form S-8 filed on May 15, 2009). | ||
Specimen Common Share Certificate (incorporated by reference to Exhibit 4.1 to the Company's Registration Statement on Form S-1 (Amendment No. 3) (No. 333-103620) filed on June 10, 2003). | ||
Senior Indenture among AXIS Specialty Finance LLC, AXIS Capital Holdings Limited and The Bank of New York Mellon Trust Company, N.A., as trustee, dated as of March 23, 2010 (incorporated by reference to Exhibit 4.4 to the Company's Quarterly Report on Form 10-Q filed on April 27, 2010). | ||
Senior Indenture | ||
First Supplemental Indenture, dated as of April 3, 2019, among AXIS Specialty Finance PLC, AXIS Capital Holdings Limited and The Bank of New York Mellon Trust Company, N.A., relating to the 5.150% Senior Notes due 2045 (incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed on April 4, 2019). | ||
Junior Subordinated Indenture dated as of December 10, 2019, among AXIS Specialty Finance LLC, AXIS Capital Holdings Limited and The Bank of New York Mellon Trust Company, N.A. (incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed on December 11, 2019). | ||
First Supplemental Indenture dated as of December 10, 2019, among AXIS Specialty Finance LLC, AXIS Capital Holdings Limited and The Bank of New York Mellon Trust Company, N.A., relating to the 4.900% Junior Subordinated Notes due 2040 (incorporated by reference to Exhibit 4.2 to the Company's Current Report on Form 8-K filed on December 11, 2019). | ||
Form of 5.875% Senior Notes due 2020 (incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed on March 23, 2010). | ||
Form of 2.650% Senior Notes due 2019 (incorporated by reference to Exhibit 4.2 to the Company's Current Report on Form 8-K filed on March 13, 2014). | ||
Form of 5.150% Senior Notes due 2045 (incorporated by reference to Exhibit 4.3 to the Company's Current Report on Form 8-K filed on March 13, 2014). | ||
Form of 4.000% Senior Notes due 2027 (incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed on December 6, 2017). | ||
Form of 3.900% Senior Notes due 2029 (incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed on June 19, 2019). | ||
Form of 4.900% Junior Subordinated Notes due 2040 (incorporated by reference to Exhibit 4.3 [included as part of Exhibit 4.2] to the Company's Current Report on Form 8-K filed on December 11, 2019). | ||
Certificate of Designations setting forth the specific rights, preferences, limitations and other terms of the | ||
Certificate of Designations setting forth the specific rights, preferences, limitations and other terms of the 5.50% Series E Preferred Shares (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed on November 7, 2016). | ||
†4.15 | Description of AXIS Capital Holdings Limited's Securities Registered under Section 12 of the Exchange Act. | |
Amended and Restated Shareholders Agreement dated December 31, 2002, among AXIS Capital Holdings Limited and each of the persons listed on Schedule A thereto (incorporated by reference to Exhibit 10.1 to the Company's Registration Statement on Form S-1 (Amendment No. 3) (No. 333-103620) filed on June 10, 2003). | ||
*10.2 | Consulting Agreement by and between Michael A. Butt and AXIS Specialty Limited dated May 3, 2012 (incorporated by reference to Exhibit 10.5 to the Company's Current Report on Form 8-K/A filed on May 9, 2012). | |
*10.3 | Amendment No. 1 to Consulting Agreement by and between Michael A. Butt and AXIS Specialty Limited dated December 5, 2013 (incorporated by reference to Exhibit 10.4 to the Company's Current Report on Form 8-K filed on December 9, 2013). | |
*10.4 | Amendment No. 2 to Consulting Agreement by and between Michael A. Butt and AXIS Specialty Limited dated December 5, 2014 (incorporated by reference to Exhibit 10.4 to the Company's Annual Report on Form 10-K filed on February 23, 2015). | |
*10.5 | Amendment No. 3 to Consulting Agreement by and between Michael A. Butt and AXIS Specialty Limited dated January 15, 2016 (incorporated by reference to Exhibit | |
*10.6 | Amendment No. 4 to Consulting Agreement by and between Michael A. Butt and AXIS Specialty Limited dated December 8, 2016 (incorporated by reference to Exhibit 10.6 to the Company's Annual Report on Form 10-K filed on February 27, 2017). | |
Amendment No. 5 to Consulting Agreement by and between Michael A. Butt and AXIS Specialty Limited dated December 7, | ||
*10.8 | Amendment No. 6 to Consulting Agreement by and between Michael A. Butt and AXIS Specialty Limited dated December 5, 2018 (incorporated by reference to Exhibit 10.8 to the Company's Annual Report on Form 10-K filed on February 26, 2019). | |
*10.9 | Amendment No. 7 to Consulting Agreement by and between Michael A. Butt and AXIS Specialty Limited dated July 18, 2019 (incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q filed on August 7, 2019). | |
Employment Agreement by and among Albert Benchimol, AXIS Capital Holdings Limited and AXIS Specialty U.S. Services, Inc. dated May 3, 2012 (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K/A filed on May 9, 2012). | ||
* | Amendment No. 1 to Employment Agreement dated May 3, 2012 by and among Albert Benchimol, AXIS Capital Holdings Limited and AXIS Specialty U.S. Services, Inc. effective as of March 9, 2015 (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on March 11, 2015). | |
* | Amendment No. 2 to Employment Agreement dated May 3, 2012 by and among Albert Benchimol, AXIS Capital Holdings Limited and AXIS Specialty U.S. Services, Inc. effective as of January 19, 2016 (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on January 25, 2016). | |
* | Amendment No. 3 to Employment Agreement dated May 3, 2012 by and among Albert Benchimol, AXIS Capital Holdings Limited, AXIS Specialty U.S. Services, Inc. and AXIS Specialty Limited effective as of January 1, 2017 (incorporated by reference to Exhibit | |
* | ||
* | ||
Employment Agreement by and between Peter W. Wilson and AXIS Specialty U.S. Services, Inc. dated June 23, 2014 (incorporated by reference to Exhibit 10.12 to the Company's Annual Report on Form 10-K filed on February 23, 2015). | ||
* | Amendment No. 1 to Employment Agreement by and between | |
Amendment No. 2 to Employment Agreement by and between Peter W. Wilson and AXIS Specialty U.S. Services, Inc. dated September 19, 2019 (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on September 24, 2019). | ||
* | Employment Agreement by and between Peter Vogt and AXIS Specialty U.S. Services, Inc. dated December 11, | |
Employment Agreement by and between | ||
* | Employment Agreement by and between David Phillips and AXIS Specialty U.S. Services, Inc. dated March 21, 2014 (incorporated by reference to Exhibit 10.22 to the Company's Annual Report on Form 10-K filed on February 26, 2019). | |
2007 Long-Term Equity Compensation Plan, as amended (incorporated by reference to Exhibit 4.4 to the Company's Registration Statement on Form S-8 filed on May 15, 2012). | ||
* | 2017 Long-Term Equity Compensation Plan (incorporated by reference to Exhibit 4.4 to the Company's Registration Statement on Form S-8 filed on May 8, 2017). | |
* | ||
2013 Executive Long-Term Equity Compensation Program (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on December 9, 2013). | ||
2018 Executive Long-Term Equity Compensation | ||
Executive Long-Term Equity Compensation Program (incorporated by reference to Exhibit 10.27 to the Company's Annual Report on form 10-K filed on February 26, 2019). | ||
* | 2014 Executive Annual Incentive Plan (incorporated by reference to Exhibit 10.25 to the Company's Annual Report on Form 10-K filed on February 27, 2017). | |
†* | Executive Annual Incentive Plan. | |
AXIS Executive RSU Retirement Plan (incorporated by reference to Exhibit 10.26 to the Company's Annual Report on Form 10-K filed on February 27, 2017). | ||
* | Form of Employee Restricted Stock Unit Award Agreement (incorporated by reference to Exhibit 10.24 to the Company's Annual Report on Form 10-K filed on February 21, 2014). | |
Form of Employee Restricted Stock Unit Award Agreement (Performance Vesting) (incorporated by reference to Exhibit 10.22 to the Company's Annual Report on Form 10-K filed on February 27, 2017). | ||
Form of Employee Restricted Stock Unit Award Agreement (Retirement Eligible/Performance Vesting) (incorporated by reference to Exhibit 10.27 to the Company's Annual Report on Form 10-K filed on February 27, 2017). | ||
* | Form of Employee Restricted Stock Unit Award Agreement (Retirement Eligible) (incorporated by reference to Exhibit 10.28 to the Company's Annual Report on Form 10-K filed on February 27, 2017). | |
Form of Employee Restricted Stock Unit Award Agreement (Performance Vesting) (incorporated by reference to Exhibit 10.37 to the Company's Annual Report on Form 10-K filed on February 28, 2018). | ||
Form of Employee Restricted Stock Unit Award Agreement (incorporated by reference to Exhibit 10.38 to the Company's Annual Report on Form 10-K filed on February 28, 2018). | ||
Form of Employee Restricted Stock Unit Award Agreement (Performance Vesting) (incorporated by reference to Exhibit 10.36 to the Company's Annual Report on Form 10-K filed on February 26, 2019). | ||
Form of Employee Restricted Stock Unit Award Agreement (incorporated by reference to Exhibit 10.37 to the Company's Annual Report on Form 10-K filed on February 26, 2019). | ||
†*10.39 | Form of Employee Restricted Stock Unit Award Agreement (Performance Vesting). | |
AXIS Specialty U.S. Services, Inc. Supplemental Retirement Plan (incorporated by reference to Exhibit 10.23 to the Company's Annual Report on Form 10-K filed on February 26, 2008). | ||
Directors Annual Compensation Program (incorporated by reference to Exhibit 10.40 to the Company's Annual Report on Form 10-K filed on February 26, 2019). | ||
†*10.42 | Directors Annual Compensation Program. | |
Master Reimbursement Agreement, dated as of May 14, 2010, by and among AXIS Specialty Limited, AXIS Re Limited, AXIS Specialty Europe Limited, AXIS Insurance Company, AXIS Surplus Insurance Company, AXIS Specialty Insurance Company, AXIS Reinsurance Company and Citibank Europe plc (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on May 19, 2010). | ||
Amendment to Master Reimbursement Agreement dated January 27, 2012 by and among AXIS Specialty Limited, AXIS Re Limited, AXIS Specialty Europe Limited, AXIS Insurance Company, AXIS Surplus Insurance Company, AXIS Specialty Insurance Company and AXIS Reinsurance Company and Citibank Europe plc (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on January 30, 2012). | ||
Amendment to Committed Facility Letter dated November 20, 2013 by and among AXIS Specialty Limited, AXIS Re SE, AXIS Specialty Europe SE, AXIS Insurance Company, AXIS Surplus Insurance Company and AXIS Reinsurance Company and Citibank Europe plc (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on November 21, 2013). | ||
Amendment to Committed Facility Letter dated March 31, 2015 by and among AXIS Specialty Limited, AXIS Re SE, AXIS Specialty Europe SE, AXIS Insurance Company, AXIS Reinsurance Company, AXIS Surplus Insurance Company and Citibank Europe plc (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on April 1, 2015). | ||
Amendment to Facility Fee Letter dated March 31, 2015 by and among AXIS Specialty Limited, AXIS Re SE, AXIS Specialty Europe SE, AXIS Insurance Company, AXIS Reinsurance Company, AXIS Surplus Insurance Company and Citibank Europe plc (incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K filed on April 1, 2015). | ||
Committed Facility Letter dated December 18, 2015 by and among AXIS Specialty Limited, AXIS Re SE, AXIS Specialty Europe SE, AXIS Insurance Company, AXIS Surplus Insurance Company and AXIS Reinsurance Company and Citibank Europe plc (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on December 22, 2015). | ||
Committed Facility Letter dated March 27, 2017 by and among AXIS Specialty Limited, AXIS Re SE, AXIS Specialty Europe SE, AXIS Insurance Company, AXIS Surplus Insurance Company and AXIS Reinsurance Company and Citibank Europe plc (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on March 31, 2017). | ||
Amendment to Master Reimbursement Agreement dated March 27, 2017 by and among AXIS Specialty Limited, AXIS Re Limited, AXIS Specialty Europe Limited, AXIS Insurance Company, AXIS Surplus Insurance Company, AXIS Reinsurance Company and Citibank Europe plc (incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K filed on March 31, 2017). | ||
Subsidiaries of the registrant. | ||
Consent of Deloitte Ltd. | ||
†24.1 | Power of Attorney (included as part of signature pages hereto). | |
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||
Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||
Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||
†101 | The following financial information from AXIS Capital Holdings Limited’s Annual Report on Form 10-K for the year ended December 31, | |
†104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
* | Exhibits 10.2 through 10.42 represent a management contract, compensatory plan or arrangement in which directors and/or executive officers are eligible to participate. |
† | Filed herewith. |
ITEM 16. | FORM 10-K SUMMARY |
AXIS CAPITAL HOLDINGS LIMITED | ||||||
By: | /s/ ALBERT BENCHIMOL | |||||
Albert Benchimol | ||||||
President and Chief Executive Officer |
Signature | Title | |
/s/ ALBERT BENCHIMOL | Chief Executive Officer, President and Director (Principal Executive Officer) | |
Albert Benchimol | ||
/s/ PETER VOGT | Chief Financial Officer (Principal Financial Officer) | |
Peter Vogt | ||
/s/ | Global Corporate Controller (Principal Accounting Officer) | |
/s/ MICHAEL A. BUTT | Director | |
Michael A. Butt | ||
/s/ CHARLES A. DAVIS | Director | |
Charles A. Davis | ||
/s/ ANNE MELISSA DOWLING | Director | |
Anne Melissa Dowling | ||
/s/ ROBERT L. FRIEDMAN | Director | |
Robert L. Friedman |
Signature | Title | |
/s/ CHRISTOPHER V. GREETHAM | Director | |
Christopher V. Greetham | ||
/s/ | Director | |
/s/ | Director | |
/s/ THOMAS C. RAMEY | Director | |
Thomas C. Ramey | ||
/s/ HENRY B. SMITH | Director | |
Henry B. Smith | ||
/s/ BARBARA A. YASTINE | Director | |
Barbara A. Yastine | ||
/s/ WILHELM ZELLER | Director | |
Wilhelm Zeller |
/s/ | Director | |
At December 31, 2017 | |||||||||||||
Amortized Cost | Fair Value | Amount shown on the Balance Sheet | |||||||||||
(in thousands) | |||||||||||||
Type of investment: | |||||||||||||
Fixed maturities | |||||||||||||
U.S. government and agency | $ | 1,727,643 | $ | 1,712,469 | $ | 1,712,469 | |||||||
Non-U.S. government | 798,582 | 806,299 | 806,299 | ||||||||||
Corporate debt | 5,265,795 | 5,297,866 | 5,297,866 | ||||||||||
Agency RMBS | 2,414,720 | 2,395,152 | 2,395,152 | ||||||||||
CMBS | 776,715 | 777,728 | 777,728 | ||||||||||
Non-Agency RMBS | 45,713 | 46,831 | 46,831 | ||||||||||
ABS | 1,432,884 | 1,436,281 | 1,436,281 | ||||||||||
Municipals | 149,167 | 149,380 | 149,380 | ||||||||||
Total fixed maturities | $ | 12,611,219 | 12,622,006 | 12,622,006 | |||||||||
Mortgage loans, at amortized cost and fair value | 325,062 | 325,062 | |||||||||||
Short-term investments, at amortized cost and fair value | 83,661 | 83,661 | |||||||||||
Equity securities | 635,511 | 635,511 | |||||||||||
Other investments (1) | 667,432 | 1,009,373 | |||||||||||
Equity method investments (2) | — | 108,597 | |||||||||||
Total investments | $ | 14,333,672 | $ | 14,784,210 | |||||||||
At December 31, 2019 | |||||||||||||
Amortized cost | Fair value | Amount shown on the balance sheet | |||||||||||
(in thousands) | |||||||||||||
Type of investment: | |||||||||||||
Fixed maturities, available for sale, at fair value | |||||||||||||
U.S. government and agency | $ | 2,102,849 | $ | 2,112,881 | $ | 2,112,881 | |||||||
Non-U.S. government | 564,505 | 576,592 | 576,592 | ||||||||||
Corporate debt | 4,797,384 | 4,930,254 | 4,930,254 | ||||||||||
Agency RMBS | 1,570,823 | 1,592,584 | 1,592,584 | ||||||||||
CMBS | 1,340,156 | 1,365,052 | 1,365,052 | ||||||||||
Non-Agency RMBS | 84,381 | 84,922 | 84,922 | ||||||||||
ABS | 1,599,867 | 1,598,693 | 1,598,693 | ||||||||||
Municipals | 203,275 | 207,227 | 207,227 | ||||||||||
Total fixed maturities | $ | 12,263,240 | 12,468,205 | 12,468,205 | |||||||||
Mortgage loans, held for investment, at fair value | 432,748 | 432,748 | |||||||||||
Short-term investments, at fair value | 38,471 | 38,471 | |||||||||||
Equity securities, at fair value | 474,207 | 474,207 | |||||||||||
Other investments, at fair value (1) | 478,810 | 770,923 | |||||||||||
Equity method investments (2) | — | 117,821 | |||||||||||
Total investments | $ | 13,892,441 | $ | 14,302,375 | |||||||||
(1) | Other investments exclude investments where the Company is considered to have the ability to exercise significant influence over the operating and financial policies of the investees. |
(2) | Equity method investments are excluded as the Company has the ability to exercise significant influence over the operating and financial policies of the investees. |
2017 | 2016 | 2019 | 2018 | |||||||||||
(in thousands) | (in thousands) | |||||||||||||
Assets | ||||||||||||||
Investments in subsidiaries | $ | 5,532,396 | $ | 6,033,564 | $ | 5,807,851 | $ | 5,320,828 | ||||||
Promissory note receivable from subsidiary | — | 368,252 | ||||||||||||
Cash and cash equivalents | 10,541 | 99 | 3,103 | 3,099 | ||||||||||
Other assets | 9,480 | 9,913 | 5,540 | 9,647 | ||||||||||
Total assets | $ | 5,552,417 | $ | 6,411,828 | $ | 5,816,494 | $ | 5,333,574 | ||||||
Liabilities | ||||||||||||||
Intercompany payable | $ | 160,950 | $ | 66,123 | $ | 215,911 | $ | 247,992 | ||||||
Dividends payable | 49,907 | 58,791 | 50,927 | 51,157 | ||||||||||
Other liabilities | 296 | 14,544 | 5,648 | 4,354 | ||||||||||
Total liabilities | 211,153 | 139,458 | 272,486 | 303,503 | ||||||||||
Shareholders’ equity | ||||||||||||||
Preferred shares | 775,000 | 1,126,074 | 775,000 | 775,000 | ||||||||||
Common shares (shares issued 2017: 176,580; 2016: 176,580 shares outstanding 2017: 83,161; 2016: 86,441) | 2,206 | 2,206 | ||||||||||||
Common shares (shares issued 2019: 176,580; 2018: 176,580 shares outstanding 2019: 83,959; 2018: 83,586) | 2,206 | 2,206 | ||||||||||||
Additional paid-in capital | 2,299,166 | 2,299,857 | 2,317,212 | 2,308,583 | ||||||||||
Accumulated other comprehensive (income) loss | 92,382 | (121,841 | ) | |||||||||||
Accumulated other comprehensive income (loss) | 171,710 | (177,110 | ) | |||||||||||
Retained earnings | 5,979,666 | 6,527,627 | 6,056,686 | 5,912,812 | ||||||||||
Treasury shares, at cost (2017: 93,419; 2016: 90,139) | (3,807,156 | ) | (3,561,553 | ) | ||||||||||
Treasury shares, at cost (2019: 92,621; 2018: 92,994) | (3,778,806 | ) | (3,791,420 | ) | ||||||||||
Total shareholders’ equity | 5,341,264 | 6,272,370 | 5,544,008 | 5,030,071 | ||||||||||
Total liabilities and shareholders’ equity | $ | 5,552,417 | $ | 6,411,828 | $ | 5,816,494 | $ | 5,333,574 |
(1) | AXIS Capital has fully and unconditionally guaranteed all obligations of AXIS Specialty Finance LLC, a 100% owned finance subsidiary, related to the issuance of $500 million aggregate principal amount of 5.875% senior unsecured notes. AXIS Capital’s obligations under this guarantee are unsecured |
(2) | AXIS Capital has fully and unconditionally guaranteed all obligations of AXIS Specialty Finance PLC, a 100% owned finance subsidiary, related to the issuance of $250 million aggregate principal amount of |
(3) | AXIS Capital has fully and unconditionally guaranteed all obligations of AXIS Specialty Finance PLC, a 100% owned finance subsidiary, related to the issuance of $350 million aggregate principal amount of 4.0% senior unsecured notes. AXIS Capital's obligations under this guarantee are unsecured |
(4) | On February 15, 2018, AXIS Capital contributed $105 million to AXIS Specialty Global Holdings Limited to support the capital requirements of its U.S. subsidiaries. |
(5) | AXIS Capital has fully and unconditionally guaranteed |
AXIS Capital has fully and unconditionally guaranteed all obligations of AXIS Specialty Finance LLC, a 100% owned finance subsidiary, related to the issuance of $425 million aggregate principal amount of 4.9% fixed-rate reset junior unsecured notes. AXIS Capital's obligation under this guarantee is an unsecured junior subordinated obligation and ranks equally with all future unsecured and junior subordinated obligations of AXIS Capital, and junior in right of payment to all outstanding and future senior obligations of AXIS Capital. |
2019 | 2018 | 2017 | |||||||||
(in thousands) | |||||||||||
Revenues | |||||||||||
Net investment income (1) | $ | 1,800 | $ | 900 | $ | 2,116 | |||||
Total revenues | 1,800 | 900 | 2,116 | ||||||||
Expenses | |||||||||||
General and administrative expenses | 53,335 | 29,250 | 34,933 | ||||||||
Total expenses | 53,335 | 29,250 | 34,933 | ||||||||
Income (loss) before equity in net income (loss) of subsidiaries | (51,535 | ) | (28,350 | ) | (32,817 | ) | |||||
Equity in net income (loss) of subsidiaries | 375,008 | 71,371 | (336,152 | ) | |||||||
Net income (loss) | 323,473 | 43,021 | (368,969 | ) | |||||||
Preferred share dividends | 41,112 | 42,625 | 46,810 | ||||||||
Net income (loss) available (attributable) to common shareholders | $ | 282,361 | $ | 396 | $ | (415,779 | ) | ||||
Comprehensive income (loss) | $ | 672,293 | $ | (158,973 | ) | $ | (154,746 | ) |
(1) | On April 15, 2017 |
2017 | 2016 | 2015 | |||||||||
(in thousands) | |||||||||||
Revenues | |||||||||||
Net investment income | $ | 2,116 | $ | 656 | $ | 1 | |||||
Termination fee received | — | — | 280,000 | ||||||||
Total revenues | 2,116 | 656 | 280,001 | ||||||||
Expenses | |||||||||||
General and administrative expenses | 34,933 | 39,909 | 8,012 | ||||||||
Total expenses | 34,933 | 39,909 | 8,012 | ||||||||
Income (loss) before equity in net income (loss) of subsidiaries | (32,817 | ) | (39,253 | ) | 271,989 | ||||||
Equity in net income (loss) of subsidiaries | (336,152 | ) | 552,621 | 369,642 | |||||||
Net income (loss) | (368,969 | ) | 513,368 | 641,631 | |||||||
Preferred share dividends | 46,810 | 46,597 | 40,069 | ||||||||
Loss on repurchase of preferred shares | — | 1,309 | — | ||||||||
Net income (loss) available to common shareholders | $ | (415,779 | ) | $ | 465,462 | $ | 601,562 | ||||
Comprehensive income (loss) | $ | (154,746 | ) | $ | 579,992 | $ | 498,740 |
2019 | 2018 | 2017 | |||||||||
(in thousands) | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | $ | 323,473 | $ | 43,021 | $ | (368,969 | ) | ||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
Equity in net income (loss) of subsidiaries | (375,008 | ) | (71,371 | ) | 336,152 | ||||||
Change in intercompany payable | (32,081 | ) | 87,042 | 94,827 | |||||||
Dividends received from subsidiaries | 250,000 | 200,000 | 400,000 | ||||||||
Other items | 23,619 | (79,927 | ) | 4,988 | |||||||
Net cash provided by operating activities | 190,003 | 178,765 | 466,998 | ||||||||
Cash flows from investing activities: | |||||||||||
Capital returned by subsidiary | — | — | 368,252 | ||||||||
Net cash provided by investing activities | — | — | 368,252 | ||||||||
Cash flows from financing activities: | |||||||||||
Repurchase of common shares - open market | — | — | (261,180 | ) | |||||||
Taxes paid on withholding shares | (10,165 | ) | (10,080 | ) | (24,678 | ) | |||||
Dividends paid - common shares | (137,209 | ) | (133,502 | ) | (135,032 | ) | |||||
Repurchase of preferred shares | — | — | (351,074 | ) | |||||||
Dividends paid - preferred shares | (42,625 | ) | (42,625 | ) | (52,844 | ) | |||||
Net cash used in financing activities | (189,999 | ) | (186,207 | ) | (824,808 | ) | |||||
Increase (decrease) in cash, cash equivalents and restricted cash | 4 | (7,442 | ) | 10,442 | |||||||
Cash, cash equivalents and restricted cash - beginning of year | 3,099 | 10,541 | 99 | ||||||||
Cash, cash equivalents and restricted cash - end of year | $ | 3,103 | $ | 3,099 | $ | 10,541 | |||||
2017 | 2016 | 2015 | |||||||||
(in thousands) | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | $ | (368,969 | ) | $ | 513,368 | $ | 641,631 | ||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
Equity in net income (loss) of subsidiaries | 336,152 | (552,621 | ) | (369,642 | ) | ||||||
Change in intercompany payable | 94,827 | 33,286 | (180,312 | ) | |||||||
Dividends received from subsidiaries | 400,000 | 550,000 | 420,000 | ||||||||
Other items | 4,988 | 17,807 | (23,614 | ) | |||||||
Net cash provided by operating activities | 466,998 | 561,840 | 488,063 | ||||||||
Cash flows from investing activities: | |||||||||||
Promissory note receivable from subsidiary | — | (368,252 | ) | — | |||||||
Capital returned by subsidiary | 368,252 | — | — | ||||||||
Net cash provided by (used in) investing activities | 368,252 | (368,252 | ) | — | |||||||
Cash flows from financing activities: | |||||||||||
Net proceeds from issuance of preferred shares | — | 531,945 | — | ||||||||
Repurchase of common shares - open market | (261,180 | ) | (495,426 | ) | (314,204 | ) | |||||
Taxes paid on withholding shares | (24,678 | ) | (14,329 | ) | (18,048 | ) | |||||
Dividends paid - common shares | (135,032 | ) | (132,323 | ) | (118,652 | ) | |||||
Repurchase of preferred shares | (351,074 | ) | (51,769 | ) | — | ||||||
Dividends paid - preferred shares | (52,844 | ) | (39,909 | ) | (40,088 | ) | |||||
Proceeds from issuance of common shares | — | 224 | 3,986 | ||||||||
Net cash used in financing activities | (824,808 | ) | (201,587 | ) | (487,006 | ) | |||||
Increase (decrease) in cash and cash equivalents | 10,442 | (7,999 | ) | 1,057 | |||||||
Cash and cash equivalents - beginning of year | 99 | 8,098 | 7,041 | ||||||||
Cash and cash equivalents - end of year | $ | 10,541 | $ | 99 | $ | 8,098 | |||||
At and year ended December 31, 2017 | At and year ended December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | Deferred Acquisition Costs | Reserve for Losses and Loss Expenses | Unearned Premiums | Net Premiums Earned | Net Investment Income(1) | Losses And Loss Expenses | Amortization of Deferred Acquisition Costs | Other Operating Expenses(2) | Net Premiums Written | Deferred acquisition costs | Reserve for losses and loss expenses | Unearned premiums | Net premiums earned | Net investment income(1) | Net losses and loss expenses | Acquisition costs | Other operating expenses(2) | Net premiums written | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance | $ | 152,070 | $ | 7,164,364 | $ | 2,225,647 | $ | 2,106,363 | $ | — | $ | 1,661,032 | $ | 332,749 | $ | 344,012 | $ | 2,087,734 | $ | 191,925 | $ | 6,496,568 | $ | 2,115,664 | $ | 2,190,084 | $ | — | $ | 1,278,679 | $ | 468,281 | $ | 401,963 | $ | 2,209,155 | ||||||||||||||||||||||||||||||||||||
Reinsurance | 321,991 | 5,833,189 | 1,415,752 | 2,042,397 | — | 1,626,740 | 490,842 | 105,471 | 1,939,409 | 300,194 | 6,255,513 | 1,510,582 | 2,397,094 | — | 1,766,119 | 556,301 | 103,772 | 2,280,460 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate | — | — | — | — | 400,805 | — | — | 129,945 | — | — | — | — | — | 478,572 | — | — | 129,096 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 474,061 | $ | 12,997,553 | $ | 3,641,399 | $ | 4,148,760 | $ | 400,805 | $ | 3,287,772 | $ | 823,591 | $ | 579,428 | $ | 4,027,143 | $ | 492,119 | $ | 12,752,081 | $ | 3,626,246 | $ | 4,587,178 | $ | 478,572 | $ | 3,044,798 | $ | 1,024,582 | $ | 634,831 | $ | 4,489,615 | ||||||||||||||||||||||||||||||||||||
At and year ended December 31, 2016 | At and year ended December 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | Deferred Acquisition Costs | Reserve for Losses and Loss Expenses | Unearned Premiums | Net Premiums Earned | Net Investment Income(1) | Losses And Loss Expenses | Amortization of Deferred Acquisition Costs | Other Operating Expenses(2) | Net Premiums Written | Deferred acquisition costs | Reserve for losses and loss expenses | Unearned premiums | Net premiums earned | Net investment income(1) | Net losses and loss expenses | Acquisition costs | Other operating expenses(2) | Net premiums written | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance | $ | 128,880 | $ | 5,345,655 | $ | 1,574,164 | $ | 1,777,321 | $ | — | $ | 1,141,933 | $ | 251,120 | $ | 346,857 | $ | 1,807,125 | $ | 209,622 | $ | 6,426,309 | $ | 2,061,123 | $ | 2,362,606 | $ | — | $ | 1,494,323 | $ | 399,193 | $ | 395,252 | $ | 2,324,747 | ||||||||||||||||||||||||||||||||||||
Reinsurance | 309,756 | 4,352,172 | 1,395,334 | 1,928,304 | — | 1,062,264 | 495,756 | 135,844 | 1,945,849 | 357,000 | 5,854,460 | 1,574,635 | 2,428,889 | — | 1,695,964 | 569,642 | 123,916 | 2,334,215 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate | — | — | — | — | 353,335 | — | — | 120,016 | — | — | — | — | — | 438,507 | — | — | 108,221 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 438,636 | $ | 9,697,827 | $ | 2,969,498 | $ | 3,705,625 | $ | 353,335 | $ | 2,204,197 | $ | 746,876 | $ | 602,717 | $ | 3,752,974 | $ | 566,622 | $ | 12,280,769 | $ | 3,635,758 | $ | 4,791,495 | $ | 438,507 | $ | 3,190,287 | $ | 968,835 | $ | 627,389 | $ | 4,658,962 | ||||||||||||||||||||||||||||||||||||
At and year ended December 31, 2015 | At and year ended December 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | Deferred Acquisition Costs | Reserve for Losses and Loss Expenses | Unearned Premiums | Net Premiums Earned | Net Investment Income(1) | Losses And Loss Expenses | Amortization of Deferred Acquisition Costs | Other Operating Expenses(2) | Net Premiums Written | Deferred acquisition costs | Reserve for losses and loss expenses | Unearned premiums | Net premiums earned | Net investment income(1) | Net losses and loss expenses | Acquisition costs | Other operating expenses(2) | Net premiums written | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance | $ | 119,186 | $ | 5,291,218 | $ | 1,494,068 | $ | 1,798,191 | $ | — | $ | 1,154,928 | $ | 261,208 | $ | 341,658 | $ | 1,759,359 | $ | 115,332 | $ | 7,011,805 | $ | 2,053,422 | $ | 1,816,438 | $ | — | $ | 1,465,427 | $ | 270,229 | $ | 325,368 | $ | 1,775,825 | ||||||||||||||||||||||||||||||||||||
Reinsurance | 352,596 | 4,355,067 | 1,266,821 | 1,888,226 | — | 1,021,271 | 456,904 | 145,253 | 1,915,307 | 358,729 | 5,985,748 | 1,587,977 | 2,332,322 | — | 1,822,345 | 553,362 | 124,115 | 2,251,318 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate | — | — | — | — | 305,336 | — | — | 109,910 | — | — | — | — | — | 400,805 | — | — | 129,945 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 471,782 | $ | 9,646,285 | $ | 2,760,889 | $ | 3,686,417 | $ | 305,336 | $ | 2,176,199 | $ | 718,112 | $ | 596,821 | $ | 3,674,666 | $ | 474,061 | $ | 12,997,553 | $ | 3,641,399 | $ | 4,148,760 | $ | 400,805 | $ | 3,287,772 | $ | 823,591 | $ | 579,428 | $ | 4,027,143 | ||||||||||||||||||||||||||||||||||||
(1) |
(2) | Amounts related to |
(in thousands) | GROSS AMOUNT | CEDED TO OTHER COMPANIES | ASSUMED FROM OTHER COMPANIES | NET AMOUNT | PERCENTAGE OF AMOUNT ASSUMED TO NET | ||||||||||||||||
2019 | |||||||||||||||||||||
Property and Casualty | $ | 3,134,462 | $ | 2,311,001 | $ | 3,187,623 | $ | 4,011,084 | 79.5 | % | |||||||||||
Accident and Health | 141,535 | 98,242 | 435,238 | 478,531 | 91.0 | % | |||||||||||||||
Total | $ | 3,275,997 | $ | 2,409,243 | $ | 3,622,861 | $ | 4,489,615 | 80.7 | % | |||||||||||
2018 | |||||||||||||||||||||
Property and Casualty | $ | 3,258,999 | $ | 2,163,417 | $ | 3,074,906 | $ | 4,170,488 | 73.7 | % | |||||||||||
Accident and Health | 209,041 | 87,686 | 367,119 | 488,474 | 75.2 | % | |||||||||||||||
Total | $ | 3,468,040 | $ | 2,251,103 | $ | 3,442,025 | $ | 4,658,962 | 73.9 | % | |||||||||||
2017 | |||||||||||||||||||||
Property and Casualty | $ | 2,228,022 | $ | 1,523,662 | $ | 2,814,173 | $ | 3,518,533 | 80.0 | % | |||||||||||
Accident and Health | 195,104 | 5,468 | 318,974 | 508,610 | 62.7 | % | |||||||||||||||
Total | $ | 2,423,126 | $ | 1,529,130 | $ | 3,133,147 | $ | 4,027,143 | 77.8 | % |
(in thousands) | DIRECT GROSS PREMIUM | CEDED TO OTHER COMPANIES | ASSUMED FROM OTHER COMPANIES | NET AMOUNT | PERCENTAGE OF AMOUNT ASSUMED TO NET | ||||||||||||||||
2017 | |||||||||||||||||||||
Property and Casualty | $ | 2,228,022 | $ | 1,523,662 | $ | 2,814,173 | $ | 3,518,533 | 80.0 | % | |||||||||||
Accident and Health | 195,104 | 5,468 | 318,974 | 508,610 | 62.7 | % | |||||||||||||||
Total | $ | 2,423,126 | $ | 1,529,130 | $ | 3,133,147 | $ | 4,027,143 | 77.8 | % | |||||||||||
2016 | |||||||||||||||||||||
Property and Casualty | $ | 1,975,497 | $ | 1,215,775 | $ | 2,564,606 | $ | 3,324,328 | 77.1 | % | |||||||||||
Accident and Health | 136,681 | 1,459 | 293,424 | 428,646 | 68.5 | % | |||||||||||||||
Total | $ | 2,112,178 | $ | 1,217,234 | $ | 2,858,030 | $ | 3,752,974 | 76.2 | % | |||||||||||
2015 | |||||||||||||||||||||
Property and Casualty | $ | 1,901,757 | $ | 910,917 | $ | 2,350,680 | $ | 3,341,520 | 70.3 | % | |||||||||||
Accident and Health | 129,808 | 18,147 | 221,485 | 333,146 | 66.5 | % | |||||||||||||||
Total | $ | 2,031,565 | $ | 929,064 | $ | 2,572,165 | $ | 3,674,666 | 70.0 | % |