COVER PAGE
COVER PAGE - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 22, 2021 | Jun. 30, 2020 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 001-31721 | ||
Entity Registrant Name | AXIS CAPITAL HOLDINGS LTD | ||
Entity Incorporation, State or Country Code | D0 | ||
Entity Tax Identification Number | 98-0395986 | ||
Entity Address, Address Line One | 92 Pitts Bay Road | ||
Entity Address, City or Town | Pembroke | ||
Entity Address, Country | BM | ||
Entity Address, Postal Zip Code | HM 08 | ||
City Area Code | 441 | ||
Local Phone Number | 496-2600 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3.4 | ||
Entity Common Stock, Shares Outstanding | 84,407,257 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive proxy statement to be filed with the Securities and Exchange Commission pursuant to Regulation 14A relating to the annual meeting of shareholders to be held on May 7, 2021 are incorporated by reference in response to items 10, 11, 12, 13 and 14 in Part III of this Form 10-K. The definitive proxy statement will be filed with the Securities and Exchange Commission not later than 120 days after the registrant's fiscal year ended December 31, 2020. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001214816 | ||
Current Fiscal Year End Date | --12-31 | ||
Common shares | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Common shares, par value $0.0125 per share | ||
Trading Symbol | AXS | ||
Security Exchange Name | NYSE | ||
Series E 5.50% Preferred Shares | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Depositary Shares, each representing a 1/100th interest in a 5.50% Series E preferred shares | ||
Trading Symbol | AXS PRE | ||
Security Exchange Name | NYSE |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Investments: | ||
Fixed maturities, available for sale, at fair value (Amortized cost 2020: $11,566,930; 2019: $12,263,240 Allowance for expected credit losses 2020: $323) | $ 12,041,799 | $ 12,468,205 |
Equity securities, at fair value (Cost 2020: $421,744; 2019: $398,956) | 518,445 | 474,207 |
Mortgage loans, held for investment, at fair value (Allowance for expected credit losses 2020: $nil) | 593,290 | 432,748 |
Other investments, at fair value | 829,156 | 770,923 |
Equity method investments | 114,209 | 117,821 |
Short-term investments, at fair value | 161,897 | 38,471 |
Total investments | 14,258,796 | 14,302,375 |
Cash and cash equivalents | 902,831 | 1,241,109 |
Restricted cash and cash equivalents | 600,401 | 335,348 |
Accrued interest receivable | 65,020 | 78,085 |
Insurance and reinsurance premium balances receivable (Allowance for expected credit losses 2020: $8,836) | 2,738,342 | 3,071,390 |
Reinsurance recoverable on unpaid losses and loss expenses (Allowance for expected credit losses 2020: $23,711) | 4,496,641 | 3,877,756 |
Reinsurance recoverable on paid losses and loss expenses | 434,201 | 327,795 |
Deferred acquisition costs | 431,439 | 492,119 |
Prepaid reinsurance premiums | 1,194,455 | 1,101,889 |
Receivable for investments sold | 2,150 | 35,659 |
Goodwill | 100,801 | 102,003 |
Intangible assets | 219,633 | 230,550 |
Value of business acquired | 3,854 | 8,992 |
Operating lease right-of-use assets | 123,579 | 111,092 |
Other assets | 305,544 | 287,892 |
Total assets | 25,877,687 | 25,604,054 |
Liabilities | ||
Reserve for losses and loss expenses | 13,926,766 | 12,752,081 |
Unearned premiums | 3,685,886 | 3,626,246 |
Insurance and reinsurance balances payable | 1,092,042 | 1,349,082 |
Debt | 1,309,695 | 1,808,157 |
Payable for investments purchased | 104,777 | 32,985 |
Operating lease liabilities | 140,263 | 115,584 |
Other liabilities | 322,564 | 375,911 |
Total liabilities | 20,581,993 | 20,060,046 |
Commitments and Contingencies | ||
Shareholders' equity | ||
Preferred shares | 550,000 | 775,000 |
Common shares (shares issued 2020: 176,580; 2019: 176,580 shares outstanding 2020: 84,353; 2019: 83,959) | 2,206 | 2,206 |
Additional paid-in capital | 2,330,054 | 2,317,212 |
Accumulated other comprehensive income | 414,395 | 171,710 |
Retained earnings | 5,763,607 | 6,056,686 |
Treasury shares, at cost (2020: 92,227; 2019: 92,621) | (3,764,568) | (3,778,806) |
Total shareholders’ equity | 5,295,694 | 5,544,008 |
Total liabilities and shareholders’ equity | $ 25,877,687 | $ 25,604,054 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||||
Fixed maturities, available for sale, amortized cost | $ 11,566,930,000 | $ 12,263,240,000 | ||
Allowance for expected credit losses on fixed maturities, available for sale | 323,000 | 0 | $ 0 | $ 0 |
Equity securities, cost | 421,744,000 | 398,956,000 | ||
Credit losses associated with commercial mortgage loans | 0 | |||
Allowance for credit losses on premium balances receivable | 8,836,000 | 7,000,000 | ||
Allowance for credit losses on reinsurance recoverable for unpaid losses and loss expenses | $ 23,711,000 | $ 18,000,000 | $ 21,000,000 | |
Common shares, shares issued (in shares) | 176,580 | 176,580 | ||
Common shares, shares outstanding (in shares) | 84,353 | 83,959 | ||
Treasury shares (in shares) | 92,227 | 92,621 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues | |||
Net premiums earned | $ 4,371,309 | $ 4,587,178 | $ 4,791,495 |
Net investment income | 349,601 | 478,572 | 438,507 |
Other insurance related income (loss) | (8,089) | 16,444 | 10,622 |
Net investment gains (losses): | |||
Allowance for expected credit losses | (323) | 0 | 0 |
Impairment losses | (1,486) | 0 | 0 |
Other-than-temporary impairment ("OTTI") losses | 0 | (6,984) | (9,733) |
Other realized and unrealized investment gains (losses) | 130,942 | 98,217 | (140,485) |
Total net investment gains (losses) | 129,133 | 91,233 | (150,218) |
Total revenues | 4,841,954 | 5,173,427 | 5,090,406 |
Expenses | |||
Net losses and loss expenses | 3,281,252 | 3,044,798 | 3,190,287 |
Acquisition costs | 929,517 | 1,024,582 | 968,835 |
General and administrative expenses | 579,790 | 634,831 | 627,389 |
Foreign exchange losses (gains) | 81,069 | (12,041) | (29,165) |
Interest expense and financing costs | 75,049 | 68,107 | 67,432 |
Reorganization expenses | 7,881 | 37,384 | 66,940 |
Amortization of value of business acquired | 5,139 | 26,722 | 172,332 |
Amortization of intangible assets | 11,390 | 11,597 | 13,814 |
Total expenses | 4,971,087 | 4,835,980 | 5,077,864 |
Income (loss) before income taxes and interest in income (loss) of equity method investments | (129,133) | 337,447 | 12,542 |
Income tax (expense) benefit | 12,321 | (23,692) | 29,486 |
Interest in income (loss) of equity method investments | (3,612) | 9,718 | 993 |
Net income (loss) | (120,424) | 323,473 | 43,021 |
Preferred share dividends | 30,250 | 41,112 | 42,625 |
Net income (loss) available (attributable) to common shareholders | $ (150,674) | $ 282,361 | $ 396 |
Earnings (loss) per common share: | |||
Earnings (loss) per common share (in dollars per share) | $ (1.79) | $ 3.37 | $ 0 |
Earnings (loss) per diluted common share (in dollars per share) | $ (1.79) | $ 3.34 | $ 0 |
Weighted average common shares outstanding (in shares) | 84,262 | 83,894 | 83,501 |
Weighted average diluted common shares outstanding (in shares) | 84,262 | 84,473 | 84,007 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ (120,424) | $ 323,473 | $ 43,021 |
Other comprehensive income (loss), net of tax: | |||
Unrealized gains (losses) arising during the year, net of reclassification adjustment | 239,114 | 349,886 | (190,829) |
Foreign currency translation adjustment | 3,571 | (1,066) | (11,165) |
Total other comprehensive income (loss), net of tax | 242,685 | 348,820 | (201,994) |
Comprehensive income (loss) | 122,261 | 672,293 | (158,973) |
Unrealized gains (losses) on available for sale investments | |||
Other comprehensive income (loss), net of tax: | |||
Adjustment for reclassification of net realized (gains) losses, impairment losses and OTTI losses recognized in net income (loss) | (78,012) | (24,729) | 100,902 |
Unrealized gains (losses) arising during the year, net of reclassification adjustment | 239,114 | 349,886 | (190,829) |
Unrealized gains (losses) arising during the year for which an allowance for expected credit losses has not been recognized | Unrealized gains (losses) on available for sale investments | |||
Other comprehensive income (loss), net of tax: | |||
Unrealized gains (losses) arising during the year | 317,166 | 374,615 | (291,731) |
Unrealized gains (losses) arising during the year for which an allowance for expected credit losses has been recognized | Unrealized gains (losses) on available for sale investments | |||
Other comprehensive income (loss), net of tax: | |||
Unrealized gains (losses) arising during the year | $ (40) | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Preferred Shares | Common shares (par value) | Additional paid-in capital | Accumulated other comprehensive income (loss) | Unrealized gains (losses) on available-for-sale investments, net of tax | Unrealized gains (losses) on available-for-sale investments, net of taxCumulative effect of adoption | Cumulative foreign currency translation adjustments, net of tax | Retained earnings | Retained earningsCumulative effect of adoption | Treasury shares, at cost | |
Balance at beginning of year at Dec. 31, 2017 | $ 775,000 | $ 2,206 | $ 2,299,166 | $ 92,382 | $ 89,962 | $ 2,420 | $ 5,979,666 | $ (3,807,156) | ||||
Balance at beginning of year (Accounting Standards Update 2018-02) at Dec. 31, 2017 | $ 2,106 | $ (2,106) | ||||||||||
Balance at beginning of year (Accounting Standards Update 2016-01) at Dec. 31, 2017 | $ (69,604) | $ 69,604 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Shares repurchased | 0 | |||||||||||
Treasury shares reissued | (24,088) | 25,816 | ||||||||||
Share-based compensation expense | 33,505 | |||||||||||
Unrealized gains (losses) arising during the year, net of reclassification adjustment | $ (190,829) | (190,829) | ||||||||||
Foreign currency translation adjustment | (11,165) | (11,165) | ||||||||||
Net income (loss) | 43,021 | 43,021 | ||||||||||
Preferred share dividends | [1] | (42,625) | ||||||||||
Common share dividends | [1] | (134,748) | ||||||||||
Shares repurchased | (10,080) | |||||||||||
Balance at end of year at Dec. 31, 2018 | 5,030,071 | 775,000 | 2,206 | 2,308,583 | (177,110) | (168,365) | (8,745) | 5,912,812 | (3,791,420) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Shares repurchased | 0 | |||||||||||
Treasury shares reissued | (21,046) | 22,779 | ||||||||||
Share-based compensation expense | 29,675 | |||||||||||
Unrealized gains (losses) arising during the year, net of reclassification adjustment | 349,886 | 349,886 | ||||||||||
Foreign currency translation adjustment | (1,066) | (1,066) | ||||||||||
Net income (loss) | 323,473 | 323,473 | ||||||||||
Preferred share dividends | [1] | (41,112) | ||||||||||
Common share dividends | [1] | (138,487) | ||||||||||
Shares repurchased | (10,165) | |||||||||||
Balance at end of year at Dec. 31, 2019 | 5,544,008 | 775,000 | 2,206 | 2,317,212 | 171,710 | 181,521 | (9,811) | 6,056,686 | (3,778,806) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Shares repurchased | (225,000) | |||||||||||
Treasury shares reissued | (22,732) | 24,620 | ||||||||||
Share-based compensation expense | 35,574 | |||||||||||
Unrealized gains (losses) arising during the year, net of reclassification adjustment | 239,114 | 239,114 | ||||||||||
Foreign currency translation adjustment | 3,571 | 3,571 | ||||||||||
Net income (loss) | (120,424) | (120,424) | ||||||||||
Preferred share dividends | [1] | (30,250) | ||||||||||
Common share dividends | [1] | (142,405) | ||||||||||
Shares repurchased | (10,382) | |||||||||||
Balance at end of year at Dec. 31, 2020 | $ 5,295,694 | $ 550,000 | $ 2,206 | $ 2,330,054 | $ 414,395 | $ 420,635 | $ (6,240) | $ 5,763,607 | $ (3,764,568) | |||
[1] | Refer to Note 14 'Shareholder's Equity' for details on dividends declared and paid related to the Company's common and preferred shares. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||
Net income (loss) | $ (120,424) | $ 323,473 | $ 43,021 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Net investment (gains) losses | (129,133) | (91,233) | 144,297 |
Net realized and unrealized gains on other investments | (16,059) | (60,038) | (45,153) |
Amortization of fixed maturities | 32,893 | 18,499 | 24,663 |
Interest in (income) loss of equity method investments | 3,612 | (9,718) | 495 |
Amortization of value of business acquired | 5,139 | 26,722 | 172,332 |
Other amortization and depreciation | 65,797 | 75,229 | 9,795 |
Share-based compensation expense, net of cash payments | 29,005 | 32,491 | 34,346 |
Non-cash foreign exchange gains | 0 | (6,043) | 0 |
Changes in: | |||
Accrued interest receivable | 13,097 | 2,140 | (3,184) |
Reinsurance recoverable on unpaid and paid losses and loss expenses | (723,860) | (412,076) | (766,690) |
Deferred acquisition costs | 60,828 | 74,331 | (98,329) |
Prepaid reinsurance premiums | (94,122) | (88,789) | (212,654) |
Reserve for losses and loss expenses | 1,178,292 | 467,428 | 442,839 |
Unearned premiums | 62,999 | (7,958) | 29,760 |
Insurance and reinsurance balances, net | 72,503 | (51,075) | 208,783 |
Other items | (97,064) | (94,379) | 26,452 |
Net cash provided by operating activities | 343,503 | 199,004 | 10,773 |
Purchases of: | |||
Fixed maturities | (10,494,198) | (9,994,025) | (8,464,140) |
Equity securities | (117,883) | (58,022) | (73,107) |
Mortgage loans | (199,259) | (194,020) | (106,171) |
Other investments | (166,602) | (218,178) | (180,126) |
Short-term investments | (365,170) | (179,230) | (305,670) |
Proceeds from the sale of: | |||
Fixed maturities | 9,784,137 | 8,018,658 | 7,586,536 |
Equity securities | 119,381 | 36,016 | 246,196 |
Other investments | 166,976 | 249,129 | 361,030 |
Short-term investments | 171,976 | 266,057 | 178,983 |
Proceeds from redemption of fixed maturities | 1,526,396 | 1,282,796 | 1,241,214 |
Proceeds from redemption of short-term investments | 69,707 | 19,366 | 45,831 |
Proceeds from the repayment of mortgage loans | 39,121 | 60,244 | 133,081 |
Purchase of other assets | (44,661) | (63,106) | (25,103) |
Net cash provided by (used in) investing activities | 489,921 | (774,315) | 638,554 |
Cash flows from financing activities: | |||
Net proceeds from issuance of senior notes | 0 | 717,509 | 0 |
Redemption of senior notes | (500,000) | (250,000) | 0 |
Repurchase of preferred shares | (225,000) | 0 | 0 |
Taxes paid on withholding shares | (10,382) | (10,165) | (10,080) |
Dividends paid - common shares | (141,590) | (137,209) | (133,502) |
Dividends paid - preferred shares | (31,831) | (42,625) | (42,625) |
Net cash provided by (used in) financing activities | (908,803) | 277,510 | (186,207) |
Effect of exchange rate changes on foreign currency cash, cash equivalents and restricted cash | 2,154 | 44,238 | 3,114 |
Increase (decrease) in cash, cash equivalents and restricted cash | (73,225) | (253,563) | 466,234 |
Cash, cash equivalents and restricted cash - beginning of year | 1,576,457 | 1,830,020 | 1,363,786 |
Cash, cash equivalents and restricted cash - end of year | 1,503,232 | 1,576,457 | 1,830,020 |
Supplemental disclosures of cash flow information: | |||
Income taxes paid | 4,414 | 39,949 | 15,698 |
Interest paid | $ 54,108 | $ 59,563 | $ 64,822 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - Syndicate 2007 $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Consideration transferred reinsurance | $ 819 |
Transfer from investments | $ 600 |
ORGANIZATION
ORGANIZATION | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION | AXIS Capital Holdings Limited ("AXIS Capital" and together with its wholly owned subsidiaries the "Company"), was incorporated on December 9, 2002, under the laws of Bermuda. The Company provides a broad range of insurance and reinsurance products on a worldwide basis. The Company's principal operating subsidiaries, located in Bermuda, the United States ("U.S."), Europe, Singapore and Canada are described below: • AXIS Specialty Limited ("AXIS Specialty Bermuda"), a Bermuda domiciled company is licensed to provide specialty insurance and treaty reinsurance products on a worldwide basis. In addition, AXIS Specialty Bermuda conducts insurance and reinsurance business through its branch in Singapore, AXIS Specialty Limited (Singapore Branch). • AXIS Insurance Company, domiciled in Illinois and AXIS Reinsurance Company, domiciled in New York, together with AXIS Reinsurance Company (Canadian Branch) are licensed to offer a range of specialty insurance and treaty reinsurance products to a variety of niche markets on a worldwide basis. AXIS Surplus Insurance Company, domiciled in the state of Illinois, is eligible to write insurance on a surplus lines basis. • AXIS Specialty Europe SE ("AXIS Specialty Europe") is a European public limited liability company, incorporated as a non-life insurer under the laws of Ireland. It is a Societas Europaea (SE), or European society company registered in accordance with company law of the E.U. AXIS Specialty Europe also conducts insurance business through its branch in the United Kingdom ("U.K."), AXIS Specialty Europe SE ("UK Branch"). Pursuant to the U.K.'s withdrawal from the European Union on January 31, 2020, AXIS Specialty Europe expects to be fully regulated by the Prudential Regulation Authority ("PRA") as a third-country branch in the U.K. once the transitional arrangements have expired on December 31, 2021. Until AXIS Specialty Europe's application to the PRA for authorization of a third-country branch in the U.K. is approved, AXIS Specialty Europe will continue to trade in the U.K. under the PRA and the U.K. Financial Conduct Authority ("FCA") Temporary Permissions Regime. Effective January 1, 2019, Compagnie Belge d’Assurances Aviation NV/SA ("Aviabel") was merged into AXIS Specialty Europe by way of merger by absorption and dissolved without going into liquidation (the "Aviabel Merger"). In connection with the Aviabel Merger, AXIS Specialty Europe established new branches in Belgium and the Netherlands, AXIS Specialty Europe SE (Belgium Branch) and AXIS Specialty Europe SE (Netherlands Branch), respectively. Effective January 1, 2019, AXIS Specialty Europe conducts insurance business through its new branches in Belgium and the Netherlands. • AXIS Re SE is a European public limited liability company, incorporated as a reinsurer under the laws of Ireland. AXIS Re SE is also a Societas Europaea (SE). AXIS Re SE also conducts reinsurance business through its branch in Switzerland, AXIS Re SE, Dublin (Zurich Branch). • The Company operates in the Lloyd's of London ("Lloyd's") market through its corporate members AXIS Corporate Capital UK Limited and AXIS Corporate Capital UK II Limited, which provide 70% and 30%, respectively of AXIS Syndicate 1686's ("Syndicate 1686") capital support. AXIS Syndicate 1686 is managed by AXIS Managing Agency Ltd. ("AXIS Managing Agency"). • On October 2, 2017, AXIS Specialty UK Holdings Limited, a wholly owned subsidiary of the Company, acquired a 100% ownership interest in Novae Group plc ("Novae"). AXIS Corporate Capital UK II Limited is the sole corporate member of Novae Syndicate 2007 ("Syndicate 2007"). Effective January 1, 2018, AXIS Managing Agency commenced management and oversight of Syndicate 2007. Effective January 1, 2019, Syndicate 2007 ceased accepting new business and was placed into run-off. • AXIS Ventures Limited ("AXIS Ventures") and AXIS Reinsurance Managers Limited ("AXIS Reinsurance Managers"), regulated by the BMA as insurance managers, generate fee income from services provided to strategic capital partners. Effective September 23, 2020, AXIS Ventures deregistered as an insurance manager with the BMA. |
BASIS OF PRESENTATION AND SIGNI
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | Basis of Presentation These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and the rules and regulations of the U.S. Securities and Exchange Commission ("SEC") and include AXIS Capital Holdings Limited and its wholly-owned subsidiaries. All inter-company accounts and transactions have been eliminated. Tabular dollar and share amounts are in thousands, with the exception of per share amounts. All amounts are reported in U.S. dollars. Use of Estimates The preparation of these consolidated financial statements requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. While management believes that the amounts included in the consolidated financial statements reflect its best estimates and assumptions, actual results could differ from those estimates. The Company’s principal estimates include: • reserve for losses and loss expenses; • reinsurance recoverable on unpaid losses and loss expenses, including the provision for expected credit losses; • gross premiums written and net premiums earned; • fair value measurements of financial assets and liabilities; and • the allowance for credit losses associated with available for sale securities. The Company's significant accounting policies are as follows: a) Investments Fixed Maturities, Available for sale, at Fair Value Fixed maturities classified as available for sale are reported at fair value (refer to Note 6 ' Fair Value Measurements '). The change in fair values of fixed maturities, net of tax is recognized in accumulated other comprehensive income (loss) ("AOCI") in the consolidated statement of changes in shareholders’ equity. Net investment income includes interest income and the amortization of market premiums and discounts and is presented net of investment expenses. Investment income is recognized when earned. Purchases and sales of fixed maturities are recorded on a trade-date basis and realized gains (losses) on sales of fixed maturities are determined based on the specific identification method. Realized gains (losses) on fixed maturities are included in net investment gains (losses) in the consolidated statements of operations. The Company recognizes investment income from fixed maturities based on the constant effective yield method, which includes an adjustment for estimated principal repayments, if applicable. The effective yield used to determine the amortization of fixed maturities subject to prepayment risk (e.g. asset-backed, mortgage-backed and other structured securities) is recalculated and adjusted periodically based on historical and/or projected future cash flows. Adjustments to the yield for highly rated prepayable fixed maturities are accounted for using the retrospective method. Adjustments to the yield for other prepayable fixed maturities are accounted for using the prospective method. Following the adoption of Accounting Standard Update ("ASU") 2016-13, "Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments, " (refer to ' New Accounting Standards Adopted in 2020' below): An available for sale fixed maturity is impaired if the fair value of the investment is below amortized cost. If a fixed maturity is impaired and the Company intends to sell the security or it is more likely than not that the Company will be required to sell the security before its anticipated recovery, the full amount of the impairment loss is charged to net income and is included in net investment gains (losses). In instances where the Company intends to hold the impaired fixed maturity, the Company determines whether the decline in fair value below the amortized cost basis has resulted from a credit loss or other factors. If the Company does not anticipate to fully recover the amortized cost , an allowance for expected credit losses is established. The allowance for expected credit losses is limited to the difference between a security's amortized cost basis and its fair value. The allowance for expected credit losses is charged to net income and is included in net investment gains (losses). On a quarterly basis, the Company assesses whether unrealized losses on fixed maturities represent credit impairments by considering the following factors: a. the extent to which the fair value is less than amortized cost; b. adverse conditions related to the security, industry, or geographical area; c. downgrades in the security's credit rating by a credit rating agency; and d. failure of the issuer to make scheduled principal or interest payments. The length of time a security has been in an unrealized loss position no longer impacts the determination of whether a credit loss exists. If a security is assessed to be credit impaired, it is subject to a discounted cash flow analysis by comparing the present value of expected future cash flows with the amortized cost basis. If the present value of expected cash flows is less than the amortized cost, a credit loss exists and an allowance for expected credit losses is recognized. If the present value of expected future cash flows is equal to or greater than the amortized cost basis, an expected credit loss does not exist. The non-credit impairment amount of the loss is recognized in other comprehensive income. The Company reports accrued interest receivable related to available for sale debt securities separately and has elected not to measure an allowance for expected credit losses for accrued interest receivable. Write-offs of accrued interest receivable balances are recognized in net investment gains (losses) in the period in which they are deemed uncollectible. Prior to the adoption of ASU 2016-13 An available for sale fixed maturity is impaired if the fair value of the investment is below amortized cost. On a quarterly basis, the Company assesses whether unrealized losses on fixed maturities represent impairments that are other-than-temporary. The Company's impairment review process begins with a quantitative analysis to identify securities to be evaluated for potential OTTI. For identified securities, fundamental analysis is performed that considers the following quantitative and qualitative factors: 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. If a fixed maturity is impaired and the Company intends to sell the security or it is more likely than not that the Company will be required to sell the security before its anticipated recovery, the impairment is considered other-than-temporary. In these instances, the full amount of the impairment is charged to net income and is included in net investment gains (losses) in the consolidated statements of operations. In instances where the Company intends to hold the impaired fixed maturity, the Company estimates the anticipated credit loss on the security and this component of the impairment is charged to net income and is included in net investment gains (losses) in the consolidated statements of operations. On recognition of an OTTI charge, the new cost basis for the security is the amortized cost basis less the OTTI charge recognized in net income. The new cost basis is not adjusted for subsequent increases in fair value. The difference between the new cost basis and the cash flows expected to be collected is accreted or amortized on a quarterly basis to net investment income over the remaining life of the fixed maturity. The Company recognizes the non-credit component of the impairment (i.e. related to interest rates, market conditions, etc.) in other comprehensive income. Equity Securities, at Fair Value Equity securities are reported at fair value. The change in the fair values of equity securities, net of tax is recognized in net investment gains (losses) in the consolidated statements of operations. Net investment income includes dividend income and is presented net of investment expenses. Investment income is recognized when earned. Purchases and sales of equity securities are recorded on a trade-date basis and realized gains (losses) on sales of equity securities are determined based on the specific identification method. Realized gains (losses) on equity securities are included in net investment gains (losses) in the consolidated statements of operations. Mortgage Loans, Held for investment, at Fair Value Following the adoption of Accounting Standard Update ("ASU") 2016-13, "Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments, " (refer to ' New Accounting Standards Adopted in 2020' below): Mortgage loans, held for investment are reported at amortized cost which is calculated as the unpaid principal balance, adjusted for any unamortized premium or discount, deferred fees or expenses, and is net of valuation allowances. Mortgage loans, held for investment are presented net of an allowance for expected credit losses. The allowance for expected credit losses is estimated based on the Company’s analysis of projected lifetime losses. These projections take into account the Company’s experience with credit quality indicators, loan losses, defaults, loss severity, and loss expectations for loans with similar risk characteristics. These evaluations are revised as conditions change and new information becomes available. The allowance for expected credit losses is recognized in net investment gains (losses). Any adjustment to the allowance for expected credit losses is recognized in the period in which it is determined. Interest income and prepayment fees are recognized when earned. Interest income is recognized based on an effective yield method which gives effect to the amortization of premiums and accretion of discounts. Prior to the adoption of ASU 2016-13 Mortgage loans, held for investment are reported at amortized cost which is calculated as the unpaid principal balance, adjusted for any unamortized premium or discount, deferred fees or expenses, and is net of valuation allowances. Interest income and prepayment fees are recognized when earned. Interest income is recognized based on an effective yield method which gives effect to the amortization of premiums and accretion of discounts. Other Investments Other investments are recorded at fair value (refer to Note 6 ' Fair Value Measurements '). Changes in fair value and realized gains (losses) are reported in net investment income in the consolidated statements of operations. Equity Method Investments Investments in which the Company has significant influence over the operating and financial policies of the investee are classified as equity method investments and are accounted for using the equity method of accounting. In applying the equity method of accounting, investments are initially recorded at cost and are subsequently adjusted based on the Company’s proportionate share of net income or loss of the investee. Adjustments are based on the most recently available financial information from the investee. Changes in the carrying value of these investments are recorded in net income as interest in income (loss) of equity method investments. Short-term Investments Short-term investments primarily comprise highly liquid debt securities with maturities greater than three months but less than one year from the date of purchase. These investments are carried at amortized cost, which approximates fair value. b) Cash and Cash Equivalents Cash equivalents include money-market funds, fixed interest deposits and reverse repurchase agreements with a maturity of under 90 days when purchased. Cash and cash equivalents are recorded at amortized cost, which approximates fair value due to the short-term, liquid nature of these securities. Restricted cash primarily relates to funds held in trust to support obligations in regulatory jurisdictions where the Company operates as a non-admitted carrier and to support the underwriting activities of Syndicate 1686 and Syndicate 2007 at Lloyd's. c) Premiums and Acquisition Costs Premiums Insurance premiums written are recorded in accordance with the terms of the underlying policies. Reinsurance premiums are recorded at the inception of the contract based on estimates received from ceding companies. For multi-year contracts insurance and reinsurance premiums are recorded at the inception of the contract based on management’s best estimate of total premiums to be received. Premiums are recognized on an annual basis for multi-year contracts where the cedant has the ability to unilaterally commute or cancel coverage within the term of the contract. Any adjustments to insurance and reinsurance premium estimates are recognized in the period in which they are determined. Insurance and reinsurance premiums are earned evenly over the period during which the Company is exposed to the underlying risk, which is generally one to two years with the exception of multi-year contracts. Unearned premiums represent the portion of premiums which relate to the unexpired risks under contracts in force. Reinstatement premiums are recognized and earned at the time a loss event occurs and losses are recorded, where the coverage limits for the remaining life of the contract are reinstated under pre-defined contract terms. The recognition of reinstatement premiums is based on estimates of losses and loss expenses, which reflects management’s judgment, as described in Note 2(d) ' Losses and Loss Expenses ' below. Following the adoption of Accounting Standard Update ("ASU") 2016-13, "Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments, " (refer to ' New Accounting Standards Adopted in 2020' below): Insurance and reinsurance premium balances receivable are reviewed for impairment at least quarterly and are presented net of an allowance for expected credit losses. The allowance for expected credit losses is estimated based on the Company's analysis of amounts due, historical delinquencies and write-offs, and current economic conditions, together with reasonable and supportable forecasts of short-term economic conditions. The allowance for expected credit losses is recognized in net income (loss). Any adjustment to the allowance for expected credit losses is recognized in the period in which it is determined. Write-offs of premium balances receivable, together with associated allowances for expected credit losses, are recognized in the period in which balances are deemed uncollectible. The Company does not have a history of significant write-offs. Prior to the adoption of ASU 2016-13 Insurance and reinsurance premium balances receivable are reviewed for impairment at least quarterly and an allowance is established for amounts considered uncollectible. Acquisition Costs Acquisition costs vary with and are directly related to the successful acquisition efforts of acquiring new or renewing existing insurance and reinsurance contracts and consist primarily of fees and commissions paid to brokers and premium taxes. Acquisition costs are shown net of commissions on reinsurance purchased. Net acquisition costs are deferred and charged to net income as the related premium is earned. Insurance and reinsurance premium balances receivable is presented net of acquisition costs when contract terms provide for the right of offset. Anticipated losses and loss expenses, other costs and investment income related to these premiums are considered in assessing the recoverability of deferred acquisition costs. If deferred amounts are estimated to be unrecoverable, they are expensed. Compensation expenses for personnel involved in contract acquisition, as well as advertising costs, are expensed as incurred. d) Losses and Loss Expenses Reserve for losses and loss expenses represents an estimate of the unpaid portion of the ultimate liability for losses and loss expenses for insured and reinsured events that have occurred at or before the balance sheet date. These amounts reflect claims that have been reported ("case reserves") and claims that have been incurred but have not yet been reported ("IBNR") and are reduced for estimated amounts of salvage and subrogation recoveries. The Company reviews its reserve for losses and loss expenses on a quarterly basis. Case reserves are primarily established based on amounts reported by clients and/or their brokers. Management estimates IBNR after reviewing detailed actuarial analyses and applying informed judgment regarding qualitative factors that may not be fully captured in the actuarial estimates. A variety of actuarial methods are utilized in this process, including the Expected Loss Ratio, Chain Ladder and Bornhuetter Ferguson methods. The estimate is highly dependent on management’s judgment as to which method(s) are most appropriate for a particular accident/underwriting year and line of business. Historical claims data is often supplemented with industry benchmarks when applying these methodologies. Any adjustments to estimates of reserve for losses and loss expenses are recognized in the period in which they are determined. While the Company believes that its reserves for losses and loss expenses are adequate, this estimate requires significant judgment and new information, events or circumstances may result in ultimate losses that are materially greater or less than provided for in the consolidated balance sheets. e) Reinsurance In the normal course of business, the Company purchases treaty and facultative reinsurance protection to limit its ultimate losses from catastrophic events and to reduce its loss aggregation risk. The premiums paid to reinsurers (i.e. ceded premiums written) are recognized over the coverage period. Prepaid reinsurance premiums represent the portion of premiums ceded which relate to the unexpired term of the contracts in force. Reinstatement premiums are recognized and earned at the time a loss event occurs and losses are recorded, where the coverage limits for the remaining life of the contract are reinstated under pre-defined contract terms. Reinsurance recoverable on unpaid losses and loss expenses ("reinsurance recoverable") related to case reserves is estimated on a case-by-case basis by applying the terms of applicable reinsurance cover to individual case reserve estimates. Reinsurance recoverable related to IBNR is generally developed as part of the Company's loss reserving process, therefore, its estimation is subject to similar risks and uncertainties as the estimation of IBNR. Following the adoption of Accounting Standard Update ("ASU") 2016-13, "Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments, " (refer to ' New Accounting Standards Adopted in 2020' below): Reinsurance recoverable balances are reviewed for impairment at least quarterly and are presented net of an allowance for expected credit losses. A case-specific allowance for expected credit losses is estimated based on the Company's analysis of amounts due, historical delinquencies and write-offs. In addition, the Company uses a default analysis which is based on the reinsurers' credit rating and the length of collection periods to estimate allowances for expected credit losses on the remainder of the reinsurance recoverable balance. The default analysis considers current and forecasted economic conditions. The allowance for expected credit losses is recognized in net income (loss). Any adjustment to the allowance for expected credit losses is recognized in the period in which it is determined. Write-offs of reinsurance recoverable balances, together with associated allowances for expected credit losses, are recognized in the period in which balances are deemed uncollectible. The Company does not have a history of significant write-offs. Prior to the adoption of ASU 2016-13 Reinsurance recoverable is presented net of a provision for uncollectible amounts, reflecting the amount the Company believes ultimately will not be recovered from reinsurers due to insolvency, contractual disputes over contract language or coverage and/or some other reason. The Company applies case specific provisions against reinsurance recoverable balances that it deems unlikely to be collected in full. In addition, the Company uses a default analysis to estimate the provision for uncollectible amounts on the remainder of the reinsurance recoverable balance. The estimates of reinsurance recoverable balances and the provision for uncollectible amounts require management’s judgment and are reviewed in detail on a quarterly basis. Any adjustments to the provision for uncollectible amounts are recognized in the period in which they are determined. Retroactive Reinsurance Retroactive reinsurance reimburses a ceding company for liabilities incurred as a result of past insurable events covered under contracts subject to the reinsurance. In certain instances, reinsurance contracts cover losses both on a prospective basis and on a retroactive basis and where practical the Company bifurcates the prospective and retrospective elements of these reinsurance contracts and accounts for each element separately. Initial gains in connection with retroactive reinsurance contracts are deferred and amortized into income over the settlement period while losses are recognized immediately. When changes in the estimated amount recoverable from the reinsurer or in the timing of receipts related to that amount occur, a cumulative amortization adjustment is recognized in net income in the period in which the change is determined so that the deferred gain reflects the balance that would have existed had the revised estimate been available at the inception of the reinsurance transaction. f) Foreign Exchange The functional currency of the Company and the majority of its subsidiaries is the U.S. dollar. All foreign currency transactions are initially measured and recorded in functional currency using the rates of exchange prevailing at the transaction date. Monetary assets and liabilities denominated in foreign currency are remeasured to functional currency at the rates of exchange in effect at the balance sheet date with the resulting foreign exchange losses (gains) generally being recognized in the consolidated statements of operations. Foreign exchange losses (gains) related to available for sale investments denominated in foreign currency represent an unrealized appreciation (depreciation) in the market value of the securities and are included in AOCI. Non-monetary assets and liabilities denominated in foreign currency are not subsequently remeasured. The Company’s reporting currency is the U.S. dollar. Assets and liabilities of the Company's subsidiaries and branches where the functional currency is not the U.S. dollar, are translated into U.S. dollars using the rates of exchange in effect at the balance sheet date, and revenue and expenses are translated using the weighted average foreign exchange rates for the period. The effect of translation adjustments is reported as a separate component of AOCI in the consolidated statements of change shareholders’ equity. g) Share-based Compensation The Company is authorized to issue restricted shares, restricted stock units, performance units, stock options, stock appreciation rights and other equity-based awards to its employees and directors. The Company's plan includes share-settled and cash-settled service and performance awards. The fair value of share-settled and cash-settled service and performance awards is based on the market value of the Company's common share measured at the grant date and is expensed over the requisite service period. Compensation expense associated with share-settled and cash-settled performance awards is also subject to periodic adjustment based on the achievement of established performance criteria during the applicable performance period. The fair value of the cash-settled service and performance awards is recognized as a liability in the consolidated balance sheets and is remeasured at the end of each reporting period. The Company recognizes forfeitures when they occur. h) Derivative Instruments The Company may enter into derivative instruments such as futures, options, interest rate swaps and foreign currency forward contracts as part of its overall foreign currency risk management strategy, to obtain exposure to a particular financial market or for yield enhancement. From time to time the Company may also enter into insurance and reinsurance contracts that meet the Financial Accounting Standards Board's ("FASB") definition of a derivative contract. The Company measures all derivative instruments at fair value (refer to Note 6 ' Fair Value Measurements ') and recognizes these instruments as either assets or liabilities in the consolidated balance sheets. Subsequent changes in fair value and any realized gains or losses are recognized in the consolidated statements of operations. i) Goodwill and Intangible Assets The Company recognizes goodwill and other intangible assets in connection with certain acquisitions. Goodwill represents the excess of the purchase price paid over the fair value of the net assets acquired in these acquisitions and is not amortized. Other intangible assets with a finite life are amortized over the estimated useful live of the intangible asset. Other intangible assets with an indefinite life are not amortized. The Company tests goodwill and indefinite intangible assets for potential impairment during the fourth quarter each year and between annual tests if an event occurs or changes in circumstances indicate that the asset is impaired. Such events or circumstances may include an economic downturn in a geographic market or a change in the assessment of future operations. For the purpose of evaluating goodwill for impairment, the Company may first perform a qualitative assessment to determine whether it is necessary to perform a quantitative goodwill impairment test. If determined to be necessary, the quantitative test compares the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired. If the carrying amount of the reporting unit exceeds the fair value, an impairment loss is recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. For the purpose of evaluating indefinite lived intangibles for impairment, the Company may first perform a qualitative assessment to determine whether it is necessary to perform the quantitative impairment test. If the Company elects to perform a qualitative assessment, it first assesses qualitative factors to determine whether it is more likely than not that an indefinite lived intangible asset is impaired. If the Company determines that it is more likely than not that the indefinite lived intangible asset is impaired, the Company performs the quantitative impairment test. For the purposes of evaluating goodwill and indefinite lived intangible assets for impairment, the Company has an unconditional option to bypass the qualitative assessment in any period and proceed directly to performing the quantitative impairment test. The Company may resume performing the qualitative assessment in any subsequent period. For other definite lived intangible assets the Company tests for recoverability whenever events or changes in circumstances indicate its carrying amount may not be recoverable. The Company recognizes an impairment loss if the carrying amount of the asset is not recoverable and exceeds its fair value. The carrying amount of a definite lived intangible asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. If goodwill or an intangible asset is impaired, the carrying value of the asset is reduced to fair value and a corresponding expense is recorded in the consolidated statements of operations. j) Income Taxes Certain subsidiaries and branches of the Company operate in jurisdictions where they are subject to taxation. Current and deferred income taxes are charged or credited to net income, or in certain cases to AOCI, based on enacted tax laws and rates applicable in the relevant jurisdiction in the period in which the tax becomes accruable or realizable. Deferred income taxes are provided for all temporary differences between the bases of assets and liabilities used in the consolidated balance sheets and those used in the various jurisdictional tax returns. When the assessment indicates that it is more likely than not that a portion of a deferred tax asset will not be realized in the foreseeable future, a valuation allowance against deferred tax assets is recorded. The Company recognizes the tax benefits of uncertain tax positions only when the position is more-likely-than-not to be sustained on audit by the relevant taxing authorities. k) Treasury Shares Common shares repurchased by the Company and not subsequently canceled are classified as treasury shares and are recorded at cost. This results in a reduction of shareholders’ equity in the consolidated balance sheets. The Company uses the average cost method to determine the cost of shares reissued from treasury. l) Leases The Company recognizes a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term related to office property and equipment leases. The Company accounts for non-lease components separately from lease components. As a result, the non-lease components associated with the Company's leases are not included in the lease liabilities and right-of-use assets in the Company's consolidated balance sheets. The Company does not record office property and equipment leases with an initial term of 12 months or less (short-term) in the Company's consolidated balance sheets. m) New Accounting Standards Adopted in 2020 Measurement of Credit Losses on Financial Instruments Effective January 1, 2020, the Company adopted ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments, " using the modified retrospective approach for insurance and reinsurance premium balances receivable, reinsurance recoverable on unpaid losses and loss expenses and mortgage loans, held for investment. The Company assessed that the impact of adoption of ASU 2016-13 was $nil. This guidance replaced the "incurred loss" impairment methodology with an approach based on "expected losses" to estimate credit losses on certain types of financial instruments and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The guidance requires financial assets to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the cost of the financial asset to present the net carrying value at the amount expected to be collected on the financial asset. Insurance and reinsurance premium balances receivable of $2,738 million at December 31, 2020 was presented net of an allowance for expected credit losses. The allowance for expected credit losses was estimated based on the Company's analysis of amounts due, historical delinquencies and write-offs, and current economic conditions, together with reasonable and supportable forecasts of short-term economic conditions, giving consideration to the potential impact from the COVID-19 pandemic. At December 31, 2020, the allowance for credit losses expected to be recognized over the life of premium balances receivable was $9 million. Reinsurance recoverable on unpaid losses and loss expenses of $4,497 million at December 31, 2020 was presented net of an allowance for expected credit losses. A case-specific allowance for expected credit losses was estimated based on the Company's analysis of amounts due, historical delinquencies and wri |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | AXIS Capital's underwriting operations are organized around its global underwriting platforms, AXIS Insurance and AXIS Re. The Company has determined that it has two reportable segments, insurance and reinsurance. The Company does not allocate its assets by segment, with the exception of goodwill and intangible assets. Insurance The Company's insurance segment offers specialty insurance products to a variety of niche markets on a worldwide basis. The product lines in this segment are property, marine, terrorism, aviation, credit and political risk, professional lines, liability, accident and health, and discontinued lines - Novae. Reinsurance The Company's reinsurance segment provides treaty reinsurance to insurance companies on a worldwide basis. The product lines in this segment are catastrophe, property, credit and surety, professional lines, motor, liability, engineering, agriculture, marine and aviation, accident and health, and discontinued lines - Novae. The following tables present the underwriting results of the Company's reportable segments, as well as the carrying amounts of allocated goodwill and intangible assets: At and year ended December 31, 2020 Insurance Reinsurance Total Gross premiums written $ 4,018,399 $ 2,808,539 $ 6,826,938 Net premiums written 2,357,501 1,978,908 4,336,409 Net premiums earned 2,299,038 2,072,271 4,371,309 Other insurance related income (loss) 2,647 (10,736) (8,089) Net losses and loss expenses (1,697,014) (1,584,238) (3,281,252) Acquisition costs (461,533) (467,984) (929,517) Underwriting-related general and administrative expenses (378,839) (99,129) (477,968) Underwriting income (loss) $ (235,701) $ (89,816) $ (325,517) Net investment income 349,601 Net investment gains 129,133 Corporate expenses (101,822) Foreign exchange losses (81,069) Interest expense and financing costs (75,049) Reorganization expenses (7,881) Amortization of value of business acquired (5,139) Amortization of intangible assets (11,390) Income (loss) before income taxes and interest in income (loss) of equity method investments $ (129,133) Net losses and loss expenses ratio 73.8 % 76.4 % 75.1 % Acquisition cost ratio 20.1 % 22.6 % 21.3 % General and administrative expense ratio 16.5 % 4.8 % 13.2 % Combined ratio 110.4 % 103.8 % 109.6 % Goodwill and intangible assets $ 320,434 $ — $ 320,434 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) Underwriting-related 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 (loss) 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 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) Underwriting-related 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 (loss) 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 The following table presents gross premiums written by the geographical location of the Company's subsidiaries: Years ended December 31, 2020 2019 2018 Bermuda $ 602,432 $ 738,258 $ 606,452 Ireland 1,516,596 1,679,646 1,805,882 U.S. 3,398,108 3,090,547 2,811,537 Lloyd's of London 1,309,802 1,390,407 1,686,194 Gross premiums written $ 6,826,938 $ 6,898,858 $ 6,910,065 The following table presents net premiums earned by segment and line of business: Years ended December 31, 2020 2019 2018 Insurance Property $ 605,650 $ 633,550 $ 796,945 Marine 293,746 281,764 300,944 Terrorism 47,378 47,345 49,150 Aviation 70,910 55,028 74,203 Credit and political risk 105,869 91,698 102,825 Professional lines 715,276 661,250 570,241 Liability 313,291 264,667 229,373 Accident and health 143,723 144,499 207,777 Discontinued lines - Novae 3,195 10,283 31,148 Total Insurance 2,299,038 2,190,084 2,362,606 Reinsurance Catastrophe 244,934 267,591 250,016 Property 256,244 311,625 317,038 Credit and surety 187,721 208,717 250,276 Professional lines 207,605 206,328 220,687 Motor 255,916 398,565 438,693 Liability 396,906 373,664 363,292 Engineering 60,521 63,899 67,932 Agriculture 73,696 188,925 176,435 Marine and aviation 53,516 59,209 35,570 Accident and health 333,996 319,619 299,813 Discontinued lines - Novae 1,216 (1,048) 9,137 Total Reinsurance 2,072,271 2,397,094 2,428,889 Total $ 4,371,309 $ 4,587,178 $ 4,791,495 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | The table below provides details of goodwill and intangible assets related to the Company's insurance segment: Goodwill Intangible Intangible Total 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) Balance at December 31, 2020 Gross amount $ 97,092 $ 120,784 $ 394,604 $ 612,480 Accumulated amortization n/a n/a (275,846) (275,846) Accumulated translation adjustment 4,911 — — 4,911 102,003 120,784 118,758 341,545 Amortization n/a n/a (16,055) (16,055) Impairment charges (1,202) — — (1,202) $ 100,801 $ 120,784 $ 102,703 $ 324,288 n/a – not applicable Intangible Assets with an Indefinite Life Intangible assets with an indefinite life include U.S. state licenses that provide a legal right to transact business indefinitely and the value of Lloyd's syndicate capacity, which represents the right to underwrite a certain allocated limit of premium in the Lloyd's market. Impairment Review For the year ended December 31, 2020, the Company's impairment review of goodwill and indefinite lived intangibles resulted in the recognition of an impairment loss of $1 million related to the exit from certain program business. For the year ended December 31, 2019, the Company's impairment review of goodwill and indefinite lived intangibles did not result in the recognition of an impairment loss. For the year ended December 31, 2018, the Company's impairment review of goodwill and indefinite lived intangibles resulted in the recognition of an impairment loss of $4 million related to the termination of the Managing General Agent ("MGA") contract intangible asset identified in connection with the acquisition of Novae. The tables below provide details of the gross amount and accumulated amortization by category of VOBA and intangible assets: VOBA and intangible assets Balance At December 31, 2020 Gross amount Accumulated amortization Total U.S. state licenses $ 26,036 n/a $ 26,036 Customer relationships and customers lists - Ternian (1) 13,330 (7,665) 5,665 VOBA - Novae (2) 256,942 (253,088) 3,854 Syndicate capacity (2) 94,748 n/a 94,748 Coverholders (2) 63,565 (17,216) 46,349 Large brokers (2) 46,641 (10,106) 36,535 SME brokers (2) 14,126 (3,826) 10,300 $ 515,388 $ (291,901) $ 223,487 (1) On April 1, 2015, the Company completed its acquisition of Ternian Insurance Group LLC and recognized the definite life intangible assets detailed above. (2) On October 2, 2017, the Company acquired Novae and recognized finite lived intangible assets, including Value of Business Acquired ("VOBA"), distribution networks, and indefinite lived intangible assets related to Lloyd's syndicate capacity, all detailed above. VOBA and intangible assets Balance At December 31, 2019 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 (3) 9,700 (9,700) — Customer relationships and customers lists - Ternian 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 (3) On May 1, 2007, the Company acquired the assets and operations of Media/Professional Insurance (Media/Pro) and recognized the definite life intangible assets detailed above. The table below provides details of estimated amortization expense of VOBA and intangible assets with a finite life: VOBA Intangible assets Total 2021 3,854 10,916 14,770 2022 — 10,916 10,916 2023 — 10,916 10,916 2024 — 10,916 10,916 2025 — 9,921 9,921 2026 and thereafter — 45,264 45,264 Total remaining amortization expense 3,854 98,849 102,703 Indefinite lived intangible assets — 120,784 120,784 Total intangible assets $ 3,854 $ 219,633 $ 223,487 The estimated remaining average useful life of finite lived intangible assets is 9 years. |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS | a) Fixed Maturities and Equity Securities Fixed Maturities The following table provides the amortized cost and fair values of the Company's fixed maturities classified as available for sale: Amortized Allowance for expected credit losses Gross Gross Fair At December 31, 2020 Fixed maturities U.S. government and agency $ 1,881,489 $ — $ 38,969 $ (1,759) $ 1,918,699 Non-U.S. government 632,875 — 38,826 (428) 671,273 Corporate debt 4,408,351 (303) 254,261 (6,358) 4,655,951 Agency RMBS (1) 1,244,727 — 42,170 (688) 1,286,209 CMBS (2) 1,268,273 — 87,598 (2,284) 1,353,587 Non-agency RMBS 136,198 (20) 4,604 (678) 140,104 ABS (3) 1,712,236 — 14,527 (6,685) 1,720,078 Municipals (4) 282,781 — 13,148 (31) 295,898 Total fixed maturities $ 11,566,930 $ (323) $ 494,103 $ (18,911) $ 12,041,799 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 (1) Residential mortgage-backed securities ("RMBS") originated by U.S. government-sponsored agencies. (2) Commercial mortgage-backed securities ("CMBS"). (3) Asset-backed securities ("ABS") include debt tranched securities collateralized primarily by auto loans, student loans, credit card receivables and collateralized loan obligations ("CLOs"). (4) Municipals include bonds issued by states, municipalities and political subdivisions. Equity Securities The following table provides the cost and fair values of the Company's equity securities: Cost Gross Gross Fair At December 31, 2020 Equity securities Common stocks $ 10,810 $ 689 $ (557) $ 10,942 Preferred stocks 6,301 1,767 — 8,068 Exchange-traded funds 147,794 74,314 (390) 221,718 Bond mutual funds 256,839 20,878 — 277,717 Total equity securities $ 421,744 $ 97,648 $ (947) $ 518,445 At December 31, 2019 Equity securities Common stocks $ 504 $ 77 $ (388) $ 193 Preferred stocks — — — — 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 In the normal course of investing activities, the Company actively manages allocations to non-controlling tranches of structured securities which are variable interests issued by Variable Interest Entities ("VIEs"). These structured securities include RMBS, CMBS and ABS. The Company also invests in limited partnerships which represent 60% of the Company's other investments. The investments in limited partnerships include hedge funds, direct lending funds, private equity funds, real estate funds and CLO equity tranched securities, which are variable interests issued by VIEs (refer to Note 5(c) ' Other Investments '). The Company does not have the power to direct the activities that are most significant to the economic performance of these VIEs therefore the Company is not the primary beneficiary of these VIEs. The maximum exposure to loss on these interests is limited to the amount of commitment made by the Company. The Company has not provided financial or other support to these structured securities other than the original investment. Contractual Maturities of Fixed Maturities Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. The table below provides the contractual maturities of fixed maturities: Amortized Fair % of Total At December 31, 2020 Maturity Due in one year or less $ 436,287 $ 444,527 3.6 % Due after one year through five years 4,165,696 4,335,219 36.0 % Due after five years through ten years 2,344,859 2,489,050 20.7 % Due after ten years 258,654 273,025 2.3 % 7,205,496 7,541,821 62.6 % Agency RMBS 1,244,727 1,286,209 10.7 % CMBS 1,268,273 1,353,587 11.2 % Non-agency RMBS 136,198 140,104 1.2 % ABS 1,712,236 1,720,078 14.3 % Total $ 11,566,930 $ 12,041,799 100.0 % 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 % Gross Unrealized Losses The following table summarizes fixed maturities in an unrealized loss position and the aggregate fair value and gross unrealized loss by length of time the security has continuously been in an unrealized loss position: 12 months or greater Less than 12 months Total Fair Unrealized Fair Unrealized Fair Unrealized At December 31, 2020 Fixed maturities U.S. government and agency $ — $ — $ 251,606 $ (1,759) $ 251,606 $ (1,759) Non-U.S. government 16,115 (262) 3,652 (166) 19,767 (428) Corporate debt 63,640 (2,244) 233,970 (4,114) 297,610 (6,358) Agency RMBS 6,580 (20) 78,672 (668) 85,252 (688) CMBS 19,736 (1,012) 70,656 (1,272) 90,392 (2,284) Non-agency RMBS 5,109 (598) 9,558 (80) 14,667 (678) ABS 325,436 (4,011) 360,402 (2,674) 685,838 (6,685) Municipals — — 11,881 (31) 11,881 (31) Total fixed maturities $ 436,616 $ (8,147) $ 1,020,397 $ (10,764) $ 1,457,013 $ (18,911) 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) Fixed Maturities At December 31, 2020, 719 fixed maturities (2019: 1,190) were in an unrealized loss position of $19 million (2019: $32 million) of which $7 million (2019: $5 million) was related to securities below investment grade or not rated. At December 31, 2020, 249 fixed maturities (2019: 497) had been in a continuous unrealized loss position for twelve months or greater and had a fair value of $437 million (2019: $998 million). The unrealized losses of $19 million (2019: $32 million) were due to non-credit factors and were expected to be recovered as the related securities approach maturity. At December 31, 2020, the Company did not intend to sell the securities in an unrealized loss position and it is more likely than not that the Company will not be required to sell these securities before the anticipated recovery of their amortized costs. b) Mortgage Loans The following table provides details of the Company's mortgage loans held for investment: December 31, 2020 December 31, 2019 Carrying value % of Total Carrying value % of Total Mortgage loans held for investment: Commercial $ 593,290 100 % $ 432,748 100 % Total mortgage loans held for investment $ 593,290 100 % $ 432,748 100 % The primary credit quality indicators for commercial mortgage loans are the debt service coverage ratio which compares a property’s net operating income to amounts needed to service the principal and interest due under the loan, (generally, the lower the debt service coverage ratio, the higher the risk of experiencing a credit loss) and the loan-to-value ratio which compares the unpaid principal balance of the loan to the estimated fair value of the underlying collateral (generally, the higher the loan-to-value ratio, the higher the risk of experiencing a credit loss). The debt service coverage ratio and loan-to-value ratio, as well as the values utilized in calculating these ratios, are updated annually, on a rolling basis. The Company has a high quality mortgage loan portfolio with a weighted average debt service coverage rat io of 2.4x (2019: 2.1x) and a weighted average loan-to-value ratio of 60% (2019: 57%) . At December 31, 2020 and 2019, there were no credit losses or past due amounts associated with the commercial mortgage loans held by the Company. c) Other Investments The following table provides a summary of the Company's other investments, together with additional information relating to the liquidity of each category: Fair value Redemption frequency Redemption At December 31, 2020 Long/short equity funds $ 25,300 3 % Annually 60 days Multi-strategy funds 121,420 15 % Quarterly, Semi-annually 60-95 days Direct lending funds 272,131 33 % Quarterly (1) 90 days Private equity funds 124,706 15 % n/a n/a Real estate funds 164,250 20 % Quarterly (2) 45 days CLO-Equities 6,173 1 % n/a n/a Other privately held investments 70,011 8 % n/a n/a Overseas deposits 45,165 5 % n/a n/a Total other investments $ 829,156 100 % 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 % n/a – not applicable (1) Applies to one fund with a fair value of $38 million. (2) Applies to one fund with a fair value of $61 million. The investment strategies for the above funds are as follows: • 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. Two common redemption restrictions which may impact the Company's ability to redeem hedge funds are gates and lockups. A gate is a suspension of redemptions which may be implemented by the general partner or investment manager of the fund in order to defer, in whole or in part, the redemption request in the event the aggregate amount of redemption requests exceeds a predetermined percentage of the fund’s net assets which may otherwise hinder the general partner or investment manager’s ability to liquidate holdings in an orderly fashion in order to generate the cash necessary to fund extraordinarily large redemption payouts. A lockup period is the initial amount of time an investor is contractually required to hold the security before having the ability to redeem. During 2020 and 2019, neither of these restrictions impacted the Company's redemption requests. At December 31, 2020, $25 million (2019: $69 million), representing 17% (2019: 41%) of total hedge funds, relate to holdings where the Company is still within the lockup period. The expiration of these lockup periods range from March 2021 to March 2022. At December 31, 2020, the Company had $151 million (2019: $170 million) of unfunded commitments as a limited partner in direct lending funds. Once the full amount of committed capital has been called by the General Partner of each of these funds, the assets will not be fully returned until the completion of the fund's investment term. These funds have investment terms ranging from five At December 31, 2020, the Company had $20 million (2019: $24 million) of unfunded commitments as a limited partner in multi-strategy hedge funds. Once the full amount of committed capital has been called by the General Partner of each of these funds, the assets will not be fully returned until after the completion of the funds' investment term. These funds have investment terms ranging from two years to the dissolution of the underlying fund. At December 31, 2020, the Company had $201 million (2019: $82 million) of unfunded commitments as a limited partner in funds which invest in real estate and real estate securities and businesses. These funds include an open-ended fund and funds with investment terms ranging from seven years to the dissolution of the underlying fund. At December 31, 2020, the Company had $166 million (2019: $261 million) of unfunded commitments as a limited partner in private equity funds. The life of the funds is subject to the dissolution of the underlying funds. The Company expects the overall holding period to be over five years. During 2015, the Company made a $50 million commitment as a limited partner of a bank revolver opportunity fund. The fund has an investment term of seven years and the General Partners have the option to extend the term by up to two years. At December 31, 2020, this commitment remains unfunded. It is not anticipated that the full amount of this fund will be drawn. Syndicate 2007 holds overseas deposits which include investments in private funds where the underlying investments are primarily U.S. government, non-U.S. government and corporate debt securities. The funds do not trade on an exchange, therefore, are not included within available for sale investments. d) Equity Method Investments During 2016, the Company paid $108 million including direct transaction costs to acquire 19% of the common equity of Harrington Reinsurance Holdings Limited ("Harrington"), the parent company of Harrington Re Ltd. ("Harrington Re"), an independent reinsurance company jointly sponsored by the Company and The Blackstone Group L.P. ("Blackstone"). Through long-term service agreements, the Company will serve as Harrington Re's reinsurance underwriting manager and Blackstone will serve as exclusive investment management service provider. As an investor, the Company expects to benefit from underwriting profit generated by Harrington Re and the income and capital appreciation Blackstone seeks to deliver through its investment management services. In addition, the Company has entered into an arrangement with Blackstone under which underwriting and investment related fees will be shared equally. Harrington is not a VIE that is required to be included in the Company's consolidated financial statements. The Company accounts for its ownership interest in Harrington under the equity method of accounting. The Company's proportionate share of the underlying equity in net assets resulted in a basis difference of $5 million which represents initial transactions costs. e) Net Investment Income Net investment income was derived from the following sources: Year ended December 31, 2020 2019 2018 Fixed maturities $ 317,121 $ 384,053 $ 356,273 Other investments 16,059 60,038 48,959 Equity securities 9,328 10,434 10,077 Mortgage loans 15,432 14,712 13,566 Cash and cash equivalents 13,582 26,882 27,566 Short-term investments 2,749 7,053 9,365 Gross investment income 374,271 503,172 465,806 Investment expenses (24,670) (24,600) (27,299) Net investment income $ 349,601 $ 478,572 $ 438,507 f) Net Investment Gains (Losses) The following table provides an analysis of net investment gains (losses): Year ended December 31, 2020 2019 2018 Gross realized investment gains Fixed maturities and short-term investments $ 186,726 $ 93,160 $ 46,067 Equity securities 25,648 3,449 20,435 Gross realized investment gains 212,374 96,609 66,502 Gross realized investment losses Fixed maturities and short-term investments (94,607) (56,515) (142,153) Equity securities (5,840) (323) (3,389) Gross realized investment losses (100,447) (56,838) (145,542) Allowance for expected credit losses (323) — — Impairment losses (1) (1,486) — — OTTI losses — (6,984) (9,733) Change in fair value of investment derivatives (2) (2,434) (1,823) 5,445 Net unrealized gains (losses) on equity securities 21,449 60,269 (66,890) Net investment gains (losses) $ 129,133 $ 91,233 $ (150,218) (1) Related to instances where the Company intends to sell securities or it is more likely than not that the Company will be required to sell securities before their anticipated recovery. (2) Refer to Note 7 'Derivative Instruments'. The following table provides a reconciliation of the beginning and ending balances of the allowance for expected credit losses on fixed maturities classified as available for sale: Year ended December 31, 2020 2019 2018 Balance at beginning of period $ — $ — $ — Expected credit losses on securities where credit losses were not previously recognized 22,570 — — Additions (reductions) for expected credit losses on securities where credit losses were previously recognized (11,542) — — Impairments of securities which the Company intends to sell or more likely than not will be required to sell — — — Securities sold/redeemed/matured (10,705) — — Balance at end of period $ 323 $ — $ — The following table summarizes the OTTI charge recognized in net income by asset class: Year ended December 31, 2020 2019 2018 Fixed maturities: Non-U.S. government $ — $ 90 $ 4,697 Corporate debt — 6,894 4,995 Non-agency CMBS — — 41 Total OTTI recognized in net income $ — $ 6,984 $ 9,733 Fixed Maturities The Company evaluates available for sale securities for expected credit losses when fair value is below amortized cost. If the Company intends to sell or will be required to sell the security before its anticipated recovery, the full amount of the impairment loss is charged to net income. If the Company does not intend to sell or will not be required to sell the security before its anticipated recovery, an allowance for expected credit losses is established and the portion of the loss that relates to credit losses is recorded in net income. Effective January 1, 2020, the Company adopted the targeted changes to the impairment model for available for sale securities. The updated guidance amends the previous OTTI impairment model by requiring the recognition of impairments related to credit losses through an allowance account and limits the amount of credit loss to the difference between a security's amortized cost basis and its fair value. In addition, the length of time a security has been in an unrealized loss position no longer impacts the determination of whether a credit loss exists. A summary of credit loss activity by asset class, the significant inputs and the methodology used to estimate credit losses are described below. U.S. Government, U.S. Agency and U.S. Agency RMBS Unrealized losses on securities issued or backed, either explicitly or implicitly by the U.S. government are not analyzed for credit losses. The Company has concluded that the possibility of a credit loss on these securities is highly unlikely due to the explicit U.S. government guarantee related to certain securities (e.g. Government National Mortgage Association issuances) and the implicit guarantee related to other securities that has been validated by past actions (e.g. U.S. government bailout of Federal National Mortgage Association and Federal Home Loan Mortgage Corporation during the 2008 credit crisis). Although these securities are not analyzed for credit losses, they are evaluated for intention to sell and likely requirement to sell. Non-U.S. Government Non-U.S. government securities are evaluated for expected credit losses primarily through qualitative assessments of the likelihood of credit losses using information such as severity of unrealized losses, credit ratings and price volatility. At December 31, 2020, the gross unrealized losses were less than $1 million and were mainly due to foreign exchange losses. At December 31, 2020, the Company does not anticipate any credit losses on its non-U.S. government fixed maturities. Previously, the evaluation of non-U.S. government securities for credit losses included duration of loss and foreign exchange losses. At December 31, 2019, the gross unrealized losses of $2 million were mainly due to foreign exchange losses. In 2019, the OTTI charge on non-U.S. government fixed maturities mainly related to unrealized foreign exchange losses on certain securities where the forecasted recovery of the amortized cost of these securities was uncertain. Corporate Debt To estimate expected credit losses for corporate debt securities, the Company's projected cash flows are primarily driven by assumptions regarding the severity of loss, probability of default and projected recovery rates. The Company's default and loss severity rates are based on credit rating, credit analysis and macroeconomic forecasts. In 2020, the allowance for expected credit losses on corporate debt securities mainly related to loss severity where the forecasted recovery to amortized cost was uncertain. In 2019, the OTTI charge on corporate debt securities mainly related to loss severity, unrealized foreign exchange losses on certain securities where the forecasted recovery of the amortized cost of these securities was uncertain, and instances where the Company intended to sell securities before the forecasted recovery of the amortized cost of these securities. CMBS The Company's investments in CMBS are diversified and primarily rated AA or better. At December 31, 2020, CMBS had a weighted average estimated subordination percentage of 29% (2019: 29%). Based on discounted cash flows at December 31, 2020 and 2019, the current level of subordination is sufficient to cover the estimated loan losses on the underlying collateral of the CMBS. Non-agency RMBS To estimate expected credit losses for non-agency RMBS, the Company's projected cash flows incorporated underlying data from widely accepted third-party data sources along with certain internal assumptions and judgments regarding the future performance of the security. These assumptions included default, delinquency, loss severity and prepayment rates. The assumptions used to calculate credit losses in 2020 have not changed significantly since December 31, 2019. At December 31, 2020, the fair value of the Company's non-agency RMBS was $140 million (2019: $85 million), consisting primarily of $85 million (2019: $54 million) of Prime and $23 million (2019: $11 million) of Alt-A MBS. At December 31, 2020, the allowance for expected credit losses on non-agency RMBS related to loss severity where the forecasted recovery to amortized cost is uncertain. ABS The Company's investments in ABS consist mainly of CLO debt tranched securities ("CLO Debt") purchased primarily as new issues between 2017 and 2020. Substantially all of these new issues had credit ratings of AA or better. The Company utilizes a scenario-based approach to review its CLO Debt portfolio based on the current asset market price. The Company also reviews subordination levels of these securities to determine their ability to absorb credit losses of underlying collateral. If losses are forecast to be below the subordination level for a tranche held by the Company, the security is determined not to have a credit loss. At December 31, 2020 and 2019, the Company does not anticipate any credit losses on its CLO Debt. g) Restricted Assets In order to support the Company's obligations in regulatory jurisdictions where it operates as a non-admitted carrier, the Company provides collateral in the form of assets held in trust and, to a lesser extent, letters of credit (refer to Note 10(b) ' Debt and Financing Arrangement s'). In addition, the Company operates in the Lloyd’s market through its corporate members, AXIS Corporate Capital UK Limited and AXIS Corporate Capital UK II Limited, which provide 70% and 30%, respectively of Syndicate 1686's capital support. AXIS Corporate Capital UK II Limited is the sole corporate member of Syndicate 2007. Lloyd’s sets capital requirements for corporate members annually through the application of a capital model that is based on regulatory rules pursuant to Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking up and pursuit of business of Insurance and Reinsurance (Solvency II) ("Solvency II"). The capital provided to support underwriting, or Funds at Lloyd’s ("FAL"), may be satisfied by cash, certain investments and letters of credit provided by approved banks (refer to Note 11 'Commitments and Contingencies' and Note 21 ' Statutory Financial Information' ). At December 31, 2020 collateral held in trust for third-party agreements of $1,903 million (2019: $1,856 million) included $45 million (2019: $365 million) of fixed maturities and equity securities, and cash of $225 million (2019: $16 million) held on deposit to support the underwriting activities of Syndicate 2007, and also in cluded $297 million (2019: $169 million) of fixed maturities and equity securities, and cash of $178 million (2019: $181 million) held on deposit to support the underwriting activities of Syndicate 1686. The Company's restricted investments and cash primarily consist of high-quality fixed maturity and short-term investment securities. The table below provides the fair values of the Company's restricted investments and cash: At December 31, 2020 2019 Collateral in Trust for inter-company agreements $ 1,153,157 $ 1,580,689 Collateral for secured letter of credit facility 434,845 473,187 Funds at Lloyd's 1,155,832 1,314,345 Collateral in Trust for third-party agreements 1,903,274 1,856,327 Securities on deposit or in trust with regulatory authorities 265,959 76,229 Total restricted investments $ 4,913,067 $ 5,300,777 h) Reverse Repurchase Agreements At December 31, 2020, the Company held $91 million (2019: $nil) of reverse repurchase agreements. These loans are fully collateralized, are generally outstanding for a short period of time and are presented on a gross basis as part of cash and cash equivalents in the Company's consolidated balance sheets. The required collateral for these loans is either cash or U.S. Treasuries at a minimum rate of 102% of the loan principal. At maturity, the Company receives principal and interest income. The Company monitors the estimated fair value of the securities loaned and borrowed on a daily basis with additional collateral obtained as necessary throughout the duration of the transaction. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | Fair Value Hierarchy Fair value is defined as the price to sell an asset or transfer a liability (i.e. the "exit price") in an orderly transaction between market participants. U.S. GAAP prescribes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to quoted prices in active markets and the lowest priority to unobservable data. The level in the hierarchy within which a given fair value measurement falls is determined based on the lowest level input that is significant to the measurement. The hierarchy is broken down into three levels as follows: • Level 1 - Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. • Level 2 - Valuations based on quoted prices in active markets for similar assets or liabilities, quoted prices for identical assets or liabilities in inactive markets, or for which significant inputs are observable (e.g. interest rates, yield curves, prepayment speeds, default rates, loss severities, etc.) or can be corroborated by observable market data. • Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The unobservable inputs reflect the Company's judgments about assumptions that market participants might use. The availability of observable inputs can vary from financial instrument to financial instrument and is affected by a wide variety of factors including, for example, the type of financial instrument, whether the financial instrument is new and not yet established in the marketplace, and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires significantly more judgment. Accordingly, the degree of judgment exercised by management in determining fair value is greatest for financial instruments categorized as Level 3. In periods of market dislocation, the observability of prices and inputs may be reduced for many financial instruments. This may lead the Company to change the selection of valuation technique (from market to cash flow approach) or may cause the Company to use multiple valuation techniques to estimate the fair value of a financial instrument. This circumstance could cause an instrument to be reclassified between levels within the fair value hierarchy. Valuation Techniques The valuation techniques, including significant inputs and assumptions generally used to determine the fair values of the Company's financial instruments as well as the classification of the fair values of its financial instruments in the fair value hierarchy are described in detail below. Fixed Maturities At each valuation date, the Company uses the market approach valuation technique to estimate the fair value of its fixed maturities portfolio, where possible. The market approach includes, but is not limited to, prices obtained from third-party pricing services for identical or comparable securities and the use of "pricing matrix models" using observable market inputs such as yield curves, credit risks and spreads, measures of volatility, and prepayment speeds. Pricing from third-party pricing services is sourced from multiple vendors, where available, and the Company maintains a vendor hierarchy by asset type based on historical pricing experience and vendor expertise. Where prices are unavailable from pricing services, the Company obtains non-binding quotes from broker-dealers who are active in the corresponding markets. The valuation techniques including significant inputs and assumptions generally used to determine the fair values of the Company's fixed maturities by asset class as well as the classifications of the fair values of these securities in the fair value hierarchy are described in detail below. U.S. Government and Agency U.S. government and agency securities consist primarily of bonds issued by the U.S. Treasury and mortgage pass-through agencies such as the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation and the Government National Mortgage Association. As the fair values of U.S. Treasury securities are based on unadjusted quoted market prices in active markets, the fair values of these securities are classified as Level 1. The fair values of U.S. government agency securities are determined using the spread above the risk-free yield curve. As the yields for the risk-free yield curve and the spreads are observable market inputs, the fair values of U.S. government agency securities are classified as Level 2. Non-U.S. Government Non-U.S. government securities include bonds issued by non-U.S. governments and their agencies along with supranational organizations (collectively also known as sovereign debt securities). The fair values of these securities are based on prices obtained from international indices or valuation models that include inputs such as interest rate yield curves, cross-currency basis index spreads and country credit spreads for structures similar to the sovereign bond in terms of issuer, maturity and seniority. As the significant inputs used to price these securities are observable market inputs, the fair values of non-U.S. government securities are classified as Level 2. Corporate Debt Corporate debt securities consist primarily of investment-grade debt of a wide variety of corporate issuers and industries. The fair values of these securities are generally determined using the spread above the risk-free yield curve. These spreads are generally obtained from the new issue market, secondary trading and broker-dealer quotes. As the yields for the risk-free yield curve and the spreads are observable market inputs, the fair values of corporate debt securities are generally classified as Level 2. Where pricing is unavailable from pricing services, the Company obtains non-binding quotes from broker-dealers to estimate fair value. This is generally the case when there is a low volume of trading activity and current transactions are not orderly. In this event, the fair values of these securities are classified as Level 3. Agency RMBS Agency RMBS consist of bonds issued by the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation and the Government National Mortgage Association. The fair values of these securities are priced using a mortgage pool specific model which uses daily inputs from the active to be announced market and the spread associated with each mortgage pool based on vintage. As the significant inputs used to price these securities are observable market inputs, the fair values of Agency RMBS are classified as Level 2. CMBS CMBS mainly include investment-grade bonds originated by non-agencies. The fair values of these securities are determined using a pricing model which uses dealer quotes and other available trade information along with security level characteristics to determine deal specific spreads. As the significant inputs used to price these securities are observable market inputs, the fair values of CMBS are generally classified as Level 2. Where pricing is unavailable from pricing services, the Company obtains non-binding quotes from broker-dealers to estimate fair value. This is generally the case when there is a low volume of trading activity and current transactions are not orderly. I n this event, the fair values of these securities are classified as Level 3. Non-agency RMBS Non-agency RMBS mainly include investment-grade bonds originated by non-agencies. The fair values of these securities are determined using an option adjusted spread model or other relevant models, which use inputs including available trade information or broker quotes, prepayment and default projections based on historical statistics of the underlying collateral and current market data. As the significant inputs used to price these securities are observable market inputs, the fair values of non-agency RMBS are generally classified as Level 2. Where pricing is unavailable from pricing services, the Company obtains non-binding quotes from broker-dealers to estimate fair value. This is generally the case when there is a low volume of trading activity and current transactions are not orderly. In this event, the fair values of these securities are classified as Level 3. ABS ABS mainly include investment-grade bonds backed by pools of loans with a variety of underlying collateral, including auto loans, student loans, credit card receivables and collateralized loan obligations ("CLOs"), originated by a variety of financial institutions. The fair values of these securities are determined using a model which uses prepayment speeds and spreads sourced primarily from the new issue market. As the significant inputs used to price these securities are observable market inputs, the fair values of ABS are generally classified as Level 2. Where pricing is unavailable from pricing services, the Company obtains non-binding quotes from broker-dealers t o estimate fair value. This is generally the case when there is a low volume of trading activity and current transactions are not orderly. In this event, the fair values of these securities are classified as Level 3. Municipals Municipals comprise revenue bonds and general obligation bonds issued by U.S. domiciled state and municipal entities. The fair values of these securities are determined using spreads obtained from the new issue market, trade prices and broker-dealers quotes. As the significant inputs used to price these securities are observable market inputs, the fair values of municipals are classified as Level 2. Equity Securities Equity securities include common stocks, preferred stocks, exchange-traded funds and bond mutual funds. As the fair values of common stocks, preferred stocks and exchange-traded funds are based on unadjusted quoted market prices in active markets, the fair values of these securities are classified as Level 1. As bond mutual funds have daily liquidity, the fair values of these securities are classified as Level 2. Other Investments The fair value of an indirect investment in CLO-Equities is estimated using an income approach valuation technique, specifically an externally developed discounted cash flow model due to the lack of observable and relevant trades in secondary markets. As the significant inputs used to price this security are unobservable, the fair value of the indirect investment in CLO-Equities is classified as Level 3. Other privately held investments include convertible preferred shares, common shares, convertible notes and a variable yield security. These investments are initially valued at cost, which approximates fair value. In subsequent measurement periods, the fair values of these investments are generally determined using capital statements obtained from each investee company. In order to assess the reasonableness of the information received from each investee company, the Company maintains an understanding of current market conditions, historical results, and emerging trends that may impact the results of operations, financial condition or liquidity of investee companies. In addition, the Company engages in regular communication with management at the investee companies. In 2020, the fair value of the variable yield security was determined using an externally developed discounted cash flow model. As the significant inputs used to price these investments are unobservable, the fair values of other privately held investments are classified as Level 3. Overseas deposits include investments in private funds held by Syndicate 2007 where the underlying investments are primarily U.S. government, non-U.S. government and corporate debt securities. The funds do not trade on an exchange, therefore, they are not included in available for sale investments. As the significant inputs used to price the underlying investments are observable market inputs, the fair values of overseas deposits are classified as Level 2. Short-term Investments Short-term investments primarily comprise highly liquid securities with maturities greater than three months but less than one year from the date of purchase. These securities are typically not actively traded due to their approaching maturity, therefore their amortized cost approximates fair value. The fair values of short-term investments are classified as Level 2. Derivative Instruments Derivative instruments include foreign exchange forward contracts and exchange traded interest rate swaps that are customized to the Company's economic hedging strategies and trade in the over-the-counter derivative market. The fair values of these derivatives are determined using a market approach valuation technique based on significant observable market inputs from third-party pricing vendors, non-binding broker-dealer quotes and/or recent trading activity. As the significant inputs used to price these derivatives are observable market inputs, the fair values of these derivatives are classified as Level 2. Other underwriting-related derivatives include insurance and reinsurance contracts that are accounted for as derivatives. These derivative contracts are initially valued at cost which approximates fair value. In subsequent measurement periods, the fair values of these derivatives are determined using internally developed discounted cash flow models. As the significant inputs used to price these derivatives are unobservable, the fair values of these contracts are classified as Level 3. Cash Settled Awards Cash settled awards comprise restricted stock units that form part of the Company's compensation program. Although the fair values of these awards are determined using observable quoted market prices in active markets, the restricted stock units are not actively traded. As the significant inputs used to price these securities are observable market inputs, the fair values of these liabilities are classified as Level 2. The tables below present the financial instruments measured at fair value on a recurring basis for the periods indicated: Quoted prices in active markets Significant other observable Significant unobservable inputs (Level 3) Fair value based on NAV practical expedient Total fair value At December 31, 2020 Assets Fixed maturities U.S. government and agency $ 1,861,240 $ 57,459 $ — $ — $ 1,918,699 Non-U.S. government — 671,273 — — 671,273 Corporate debt — 4,653,447 2,504 — 4,655,951 Agency RMBS — 1,286,209 — — 1,286,209 CMBS — 1,351,847 1,740 — 1,353,587 Non-agency RMBS — 140,104 — — 140,104 ABS — 1,709,413 10,665 — 1,720,078 Municipals — 295,898 — — 295,898 1,861,240 10,165,650 14,909 — 12,041,799 Equity securities Common stocks 10,942 — — — 10,942 Preferred stocks 8,068 — — — 8,068 Exchange-traded funds 221,718 — — — 221,718 Bond mutual funds — 277,717 — — 277,717 240,728 277,717 — — 518,445 Other investments Hedge funds (1) — — — 146,720 146,720 Direct lending funds — — — 272,131 272,131 Private equity funds — — — 124,706 124,706 Real estate funds — — — 164,250 164,250 CLO-Equities — — 6,173 — 6,173 Other privately held investments — — 70,011 — 70,011 Overseas deposits — 45,165 — — 45,165 — 45,165 76,184 707,807 829,156 Short-term investments — 161,897 — — 161,897 Other assets Derivative instruments (refer to Note 7) — 18,875 — — 18,875 Total Assets $ 2,101,968 $ 10,669,304 $ 91,093 $ 707,807 $ 13,570,172 Liabilities Derivative instruments (refer to Note 7) $ — $ 2,364 $ 9,122 $ — $ 11,486 Cash settled awards (refer to Note 16) — 13,273 — — 13,273 Total Liabilities $ — $ 15,637 $ 9,122 $ — $ 24,759 (1) Includes Long/short equity and Multi-strategy funds. Quoted prices in active markets Significant other observable 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 Preferred stocks — — — — — 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 CLO-Equities — — 14,328 — 14,328 Other privately held investments — — 36,934 — 36,934 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 and Multi-strategy funds. The following table quantifies the significant unobservable inputs used in estimating fair values at December 31, 2020 of investments classified as Level 3 in the fair value hierarchy: Fair value Valuation technique Unobservable input Range Weighted Other investments - CLO-Equities $ 6,173 Discounted cash flow Default rates 4.5% 4.5% Loss severity rate 50.0% 50.0% Collateral spreads 3.0% 3.0% Estimated maturity dates 5 years 5 years Other investments - Other privately $ 21,643 Discounted cash flow Discount rate 1.3% 1.3% Default rate 0.5% 0.5% Loss absorption yield 1.0% 1.0% Estimated maturity date 5 years 5 years Derivatives - Other underwriting- $ (9,122) Discounted cash flow Discount rate 0.4% 0.4% Note: Fixed maturities of $15 million that are classified as Level 3 are excluded from the above table as these securities are priced using broker-dealer quotes. In addition, other privately held investments of $48 million that are classified as Level 3 are excluded from the above table as these investments are priced using capital statements received from investee companies. Other Investments - CLO-Equities The CLO-Equities market continues to be relatively inactive with only a small number of transactions being observed, particularly related to transactions involving CLO-Equities held by the Company. Accordingly, the fair value of the Company's indirect investment in CLO-Equities is determined using a discounted cash flow model prepared by an external investment manager. The default and loss severity rates are the most judgmental unobservable market inputs to the discounted cash flow model to which the valuation of the Company's indirect investment in CLO-Equities is most sensitive. A significant increase (decrease) in either of these significant inputs in isolation would result in a lower (higher) fair value estimate for the investment in CLO-Equities and, in general, a change in default rate assumptions would be accompanied by a directionally similar change in loss severity rate assumptions. Collateral spreads and estimated maturity dates are less judgmental inputs as they are based on the historical average of actual spreads and the weighted average life of the current underlying portfolios, respectively. A significant increase (decrease) in either of these significant inputs in isolation would result in a higher (lower) fair value estimate for the investment in CLO-Equities. In general, these inputs have no significant interrelationship with each other or with default and loss severity rates. On a quarterly basis, the Company's valuation process for its indirect investment in CLO-Equities includes a review of the underlying cash flows and key assumptions used in the discounted cash flow model. The above significant unobservable inputs are reviewed and updated based on information obtained from secondary markets, including information received from the managers of the Company's CLO-Equities investment. In order to assess the reasonableness of the inputs the Company uses in the discounted cash flow model, the Company maintains an understanding of current market conditions, historical results, and emerging trends that may impact future cash flows. In addition, the assumptions the Company uses in its models are updated through regular communication with industry participants and ongoing monitoring of the deals in which the Company participates. Other Investments - Other Privately Held Securities Other privately held securities are initially valued at cost which approximates fair value. In subsequent measurement periods, the fair value of the variable yield security was determined using an externally developed discounted cash flow model. This model includes inputs that are specific to that investment. The inputs used in the fair value measurement include an appropriate discount rate, default rate, loss absorption rate and estimated maturity date. The selection of an appropriate discount rate is judgmental and is the most significant unobservable input used in the valuation of this investment. A significant increase (decrease) in this input in isolation could result in significantly lower (higher) fair value measurement for this investment. In order to assess the reasonableness of the inputs the Company uses in the discounted cash flow model, the Company maintains an understanding of current market conditions, historical results, as well as investee specific information that may impact future cash flows. Derivatives - Other Underwriting-related Derivatives Other underwriting-related derivatives are initially valued at cost which approximates fair value. In subsequent measurement periods, the fair values of these derivatives are determined using internally developed discounted cash flow models which use appropriate discount rates. The selection of an appropriate discount rate is judgmental and is the most significant unobservable input used in the valuation of these derivatives. A significant increase (decrease) in this input in isolation could result in a significantly lower (higher) fair value measurement for the derivative contracts. In order to assess the reasonableness of the inputs the Company uses in the discounted cash flow model, the Company maintains an understanding of current market conditions, historical results, as well as contract specific information that may impact future cash flows. The following table presents changes in Level 3 for financial instruments measured at fair value on a recurring basis: Opening Transfers Transfers Included in net income (1) Included in OCI (2) Purchases Sales Settlements/ Closing Change in unrealized gains/(losses) (3) Year ended December 31, 2020 Fixed maturities Corporate debt $ 2,297 $ — $ — $ — $ 207 $ — $ — $ — $ 2,504 $ — CMBS 5,235 — — — (11) — — (3,484) 1,740 — ABS 489 9,091 — — 116 969 — — 10,665 — 8,021 9,091 — — 312 969 — (3,484) 14,909 — Other investments CLO-Equities 14,328 — — (6,017) — — — (2,138) 6,173 (5,319) Other privately held investments 36,934 — — 6,040 — 27,037 — — 70,011 6,040 51,262 — — 23 — 27,037 — (2,138) 76,184 721 Total assets $ 59,283 $ 9,091 $ — $ 23 $ 312 $ 28,006 $ — $ (5,622) $ 91,093 $ 721 Other liabilities Derivative instruments 9,672 — — 9,421 — — — (9,971) 9,122 (550) Total liabilities $ 9,672 $ — $ — $ 9,421 $ — $ — $ — $ (9,971) $ 9,122 $ (550) 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 CLO-Equities 21,271 — — (199) — — — (6,744) 14,328 (199) Other privately held investments 44,518 — — 18,092 — 22,500 (48,176) — 36,934 5,150 65,789 — — 17,893 — 22,500 (48,176) (6,744) 51,262 4,951 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) (1) Realized gains (losses) on fixed maturities and realized and unrealized gains (losses) on other assets and other liabilities included in net income are included in net investment gains (losses). Realized and unrealized gains (losses) on other investments included in net income are included in net investment income. (2) Unrealized gains (losses) on fixed maturities are included in other comprehensive income ("OCI"). (3) Change in unrealized gains (losses) relating to assets and liabilities held at the reporting date. Transfers into Level 3 from Level 2 The transfers into Level 3 from Level 2 during 2020 were primarily due to the lack of observable market inputs and multiple quotes from pricing vendors and broker-dealers for certain fixed maturities. There were no transfers into Level 3 from Level 2 during 2019. Transfers out of Level 3 into Level 2 There were no transfers out of Level 3 into Level 2 during 2020. The transfers out of Level 3 into Level 2 during 2019 were primarily due to the availability of observable market inputs and multiple quotes from pricing vendors for certain fixed maturities. Measuring the Fair Value of Other Investments Using Net Asset Valuations The fair values of hedge funds, direct lending funds, private equity funds and real estate funds are estimated using net asset valuations ("NAVs") as advised by external fund managers or third-party administrators. For these funds, NAVs are based on the manager's or administrator's valuation of the underlying holdings in accordance with the fund's governing documents and in accordance with U.S. GAAP. For hedge funds, direct lending funds, private equity funds and real estate funds, valuation statements are typically released on a reporting lag therefore, the Company estimates the fair value of these funds by starting with the most recent fund valuations and adjusting for capital calls, redemptions, drawdowns and distributions. Return estimates are not available from the relevant fund managers for these funds, therefore the Company typically has a reporting lag in its fair value measurements of these funds. At December 31, 2020, funds reported on a lag represented 86% (2019: 68%) of the Company's total other investments balance. The Company often does not have access to financial information relating to the underlying securities held within the funds. Therefore, management is unable to corroborate the fair values placed on the securities underlying the asset valuations provided by fund managers or fund administrators. In order to assess the reasonableness of the NAVs, the Company performs a number of monitoring procedures on a quarterly basis, to assess the quality of the information provided by fund managers and fund administrators. These procedures include, but are not limited to, regular review and discussion of each fund's performance with its manager, regular evaluation of fund performance against applicable benchmarks and the backtesting of the Company's fair value estimates against subsequently received NAVs. Backtesting involves comparing the Company's previously reported fair values for each fund against NAVs per audited financial statements (for year-end values) and final NAVs from fund managers and fund administrators (for interim values). The fair values of hedge funds, direct lending funds, private equity funds and real estate funds are measured using the NAV practical expedient, therefore the fair values of these funds have not been categorized within the fair value hierarchy. Financial Instruments Disclosed, But Not Carried, at Fair Value The fair value of financial instruments accounting guidance also applies to financial instruments disclosed, but not carried, at fair value, except for certain financial instruments, including insurance contracts. At December 31, 2020, the carrying values of cash and cash equivalents including restricted amounts, accrued investment income, receivable for investments sold, certain other assets, payable for investments purchased and certain other liabilities approximated fair values due to their short maturities. As these financial instruments are not actively traded, their fair values are classified as Level 2. At December 31, 2020, the carrying value of mortgage loans, held for investment approximated fair value. The fair values of mortgage loans are primarily determined by estimating expected future cash flows and discounting them using current interest rates for similar mortgage loans with similar credit risk or are determined from pricing for similar loans. As mortgage loans are not actively traded, their fair values are classified as Level 3. |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS | The following table provides the balance sheet classifications of derivatives recorded at fair value: December 31, 2020 December 31, 2019 Derivative Derivative asset fair value (1) Derivative liability fair value (1) Derivative Derivative asset fair value (1) Derivative liability fair value (1) Relating to investment portfolio: Foreign exchange forward contracts $ 105,781 $ 2 $ 2,364 $ 68,998 $ — $ 1,405 Relating to underwriting portfolio: Foreign exchange forward contracts 1,197,012 18,873 — 1,038,630 3,174 2,560 Other underwriting-related contracts 75,000 — 9,122 85,000 — 9,672 Total derivatives $ 18,875 $ 11,486 $ 3,174 $ 13,637 (1) Derivative assets and liabilities are classified within other assets and other liabilities in the consolidated balance sheets. The notional amounts of derivative contracts represent the basis on which amounts paid or received are calculated and are presented in the above table to quantify the volume of the Company's derivative activities. Notional amounts are not reflective of credit risk. None of the Company's derivative instruments are designated as hedges under current accounting guidance. Offsetting Assets and Liabilities The Company's derivative instruments are generally traded under International Swaps and Derivatives Association master netting agreements which establish terms that apply to all transactions. In the event of a bankruptcy or other stipulated event, master netting agreements provide that individual positions be replaced with a new amount, usually referred to as the termination amount, determined by taking into account market prices and converting into a single currency. Effectively, this contractual close-out netting reduces credit exposure from gross to net exposure. The following table provides a reconciliation of gross derivative assets and liabilities to the net amounts presented in the consolidated balance sheets, with the difference being attributable to the impact of master netting agreements: December 31, 2020 December 31, 2019 Gross amounts Gross amounts offset Net amounts (1) Gross amounts Gross amounts offset Net amounts (1) Derivative assets $ 27,765 $ (8,890) $ 18,875 $ 7,673 $ (4,499) $ 3,174 Derivative liabilities $ 20,376 $ (8,890) $ 11,486 $ 18,136 $ (4,499) $ 13,637 (1) Net asset and liability derivatives are classified within other assets and other liabilities in the consolidated balance sheets. Refer to Note 5 'Investments' for information on reverse repurchase agreements. a) Relating to Investment Portfolio Foreign Currency Risk The Company's investment portfolio is exposed to foreign currency risk therefore the fair values of its investments are partially influenced by changes in foreign exchange rates. The Company may enter into foreign exchange forward contracts to manage the effect of this foreign currency risk. These foreign currency hedging activities are not designated as specific hedges for financial reporting purposes. Interest Rate Risk The Company's investment portfolio includes a large percentage of fixed maturities which exposes it to significant interest rate risk. As part of overall management of this risk, the Company may use interest rate swaps. b) Relating to Underwriting Portfolio Foreign Currency Risk The Company's insurance and reinsurance subsidiaries and branches operate in various countries. Some of its business is written in currencies other than the U.S. dollar, therefore the underwriting portfolio is exposed to significant foreign currency risk. The Company manages foreign currency risk by seeking to match its foreign-denominated net liabilities under insurance and reinsurance contracts with cash and investments that are denominated in the same currencies. The Company uses derivative instruments, specifically, forward contracts to economically hedge foreign currency exposures Other Underwriting-related Risks The Company enters into insurance and reinsurance contracts that are accounted for as derivatives. These insurance or reinsurance contracts provide indemnification to an insured or cedant as a result of a change in a variable as opposed to an identifiable insurable event. The Company considers these contracts to be part of its underwriting operations. The following table provides the total unrealized and realized gains (losses) recognized in net income for derivatives not designated as hedges: Consolidated statement of operations line item that includes gain (loss) recognized Amount of gain (loss) recognized in 2020 2019 2018 Relating to investment portfolio: Foreign exchange forward contracts Net investment gains (losses) $ (2,434) $ 1,854 $ 3,446 Interest rate swaps Net investment gains (losses) — (3,677) 1,999 Relating to underwriting portfolio: Foreign exchange forward contracts Foreign exchange gains (losses) 44,166 (10,678) (3,509) Other underwriting-related contracts Other insurance related income (loss) (9,035) 1,789 2,384 Total $ 32,697 $ (10,712) $ 4,320 |
RESERVE FOR LOSSES AND LOSS EXP
RESERVE FOR LOSSES AND LOSS EXPENSES | 12 Months Ended |
Dec. 31, 2020 | |
Insurance Loss Reserves [Abstract] | |
RESERVE FOR LOSSES AND LOSS EXPENSES | Reserving Methodology Sources of Information The Company's loss reserving process begins with the collection and analysis of paid and incurred claim data for each of the Company's segments. The segmental data is disaggregated by reserve class and further disaggregated by underwriting year and accident year. Underwriting year or accident year information is used to analyze the Company's business and to estimate reserves for losses and loss expenses. Reserve classes are selected to ensure that the underlying contracts have homogeneous loss development characteristics, while remaining large enough to make the estimation of trends credible. The Company's reserve classes are reviewed on a regular basis and adjusted over time as the Company's business evolves. The paid and incurred claim data, in addition to industry benchmarks, serves as a key input to many of the methods employed by the Company's actuaries. The relative weights assigned to the Company's historical loss data versus industry data vary based on a number of factors including the Company's historical track record and the development profile for the reserve class being evaluated ( refer to 'Claim Tail Analysis' and 'Net Incurred and Paid Claims Development Tables By Accident Year' below for further details). The following tables map the Company's lines of business to reserve classes and the expected claim tails: 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 aviation X Accident and health X Discontinued lines - Novae X X X Actuarial Analysis Multiple actuarial methods are available to estimate ultimate losses. Each method has its own assumptions and its own advantages and disadvantages, with no single estimation method being better than the others in all situations and no one set of assumption variables being meaningful for all reserve classes. The relative strengths and weaknesses of the particular estimation methods when applied to a particular group of claims can also change over time. The following is a brief description of the reserve estimation methods commonly employed by the Company's actuaries including a discussion of their particular strengths and weaknesses: • 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 this method is usually inappropriate in later stages of an accident year or underwriting year’s development. • 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 tends to produce volatile estimates of ultimate losses where there is volatility in the underlying incurred/paid patterns. In particular, where the expected percentage of incurred/paid losses is low, small deviations between actual and expected claims can lead to very volatile estimates of ultimate losses. As a result, this method is often unsuitable at early development stages for an accident year or underwriting year. • 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. As part of the loss reserving process, the Company's actuaries employ the estimation method(s) that they believe will produce the most reliable estimate of ultimate losses, at that particular evaluation date, for each reserve class and accident year or underwriting year combination. Often, this is a blend (i.e. weighted average) of the results of two or more appropriate actuarial methods. These ultimate loss estimates are generally utilized to evaluate the adequacy of ultimate loss estimates for previous accident or underwriting years, established in the prior reporting period. For the initial estimate of the current accident or underwriting year, the available claim data is typically insufficient to produce a reliable estimate of ultimate losses. As a result, initial estimates for an accident or underwriting year are generally based on the ELR Method for longer tailed lines and a BF Method for shorter tailed lines. The initial ELR for each reserve class is established collaboratively by the Company's actuaries, underwriters and management at the start of the year as part of the planning process, taking into consideration prior accident years’ or underwriting years' experience and industry benchmarks, adjusted after considering factors such as loss and exposure trends, rate differences, changes in contract terms and conditions, business mix changes and other known differences between the current year and prior accident or underwriting years. The initial expected loss ratios for a given accident or underwriting year may be modified over time if the underlying assumptions, such as loss development or premium rate changes, differ from the original assumptions. Key Actuarial Assumptions The use of the above actuarial methods requires the Company to make certain explicit assumptions, the most significant of which are: (1) expected loss ratios and (2) loss development patterns. In earlier years, significant reliance was placed on industry benchmarks in establishing expected loss ratios and selecting loss development patterns. Over time, more reliance has been placed on historical loss experience in establishing these ratios and selecting these patterns where the Company believes the weight of its experience has become sufficiently credible for consideration. The weight given to the Company's experience differs for each of the three claim tail classes (refer to 'Claim Tail Analysis' below for further details). In establishing expected loss ratios for the insurance segment, consideration is given to a number of other factors, including exposure trends, rate adequacy on new and renewal business, ceded reinsurance costs, changes in claims emergence and underwriters’ view of terms and conditions in the market environment. For the reinsurance segment, expected loss ratios are based on a contract-by-contract review, which considers information provided by clients together with estimates provided by underwriters and actuaries about the impact of changes in pricing, terms and conditions and coverage. Market experience of some classes of business as compiled and analyzed by an independent actuarial firm has also been considered, as appropriate. Claim Tail Analysis Short-tail Business Short-tail business generally includes exposures for which losses are usually known and paid within a relatively short period of time after the underlying loss event has occurred. Short-tail business includes the underlying exposures in the property and other, marine, and aviation reserve classes in the insurance segment, and the underlying exposures in the property and other reserve class in the reinsurance segment. The key actuarial assumptions for short-tail business in early accident years were primarily developed with reference to industry benchmarks for expected loss ratios and loss development patterns. As the Company's historical loss experience amassed, it gained credibility and became relevant for consideration in establishing these key actuarial assumptions. As a result, the Company gradually increased the weighting assigned to its historical loss experience in selecting the expected loss ratios and loss development patterns utilized to establish estimates of ultimate losses for an accident year. Due to the relatively short reporting and settlement patterns for short-tail business, more weight is generally placed on experience-based methods and other qualitative considerations in establishing reserves for recent and more mature accident years. The majority of development for an accident year or underwriting year is expected to be recognized in the subsequent one Medium-tail Business Medium-tail business generally has claim reporting and settlement periods that are longer than those of short-tail reserve classes. Medium-tail business consists primarily of insurance and reinsurance professional lines reserve classes, insurance credit and political risk and reinsurance credit and surety reserve classes. For the Company's earliest accident and underwriting years, initial key actuarial expected loss ratio and loss development assumptions were established utilizing industry benchmarks. Due to the longer claim tail, the length of time required to develop credible loss history for use in the reserve process is greater for medium-tail business than for short-tail business. Long-tail Business In contrast to short and medium-tail business, the claim tail for long-tail business is expected to be notably longer, as claims are often reported and ultimately paid or settled years, or even decades, after the related loss events occur. Long-tail business consists primarily of insurance and reinsurance liability reserve classes and reinsurance motor reserve class. As a general rule, estimates of accident year or underwriting year ultimate losses for long-tail business are notably more uncertain than those for short and medium-tail business. To date, key actuarial assumptions for long-tail business have been derived from a combination of industry benchmarks supplemented with Company historical loss experience. While industry benchmarks that the Company believes reflect the nature and coverage of its business are considered, actual loss experience may differ from the benchmarks based on industry averages. Due to the length of the development tail for this business, reserve estimates for most accident years and underwriting years are predominantly based on the BF Method or ELR Method and the consideration of qualitative factors. Reserving for Significant Catastrophic Events The Company cannot estimate losses from widespread catastrophic events, such as hurricanes and earthquakes, using the traditional actuarial methods described above. The magnitude and complexity of losses associated with certain of these events inherently increase the level of uncertainty and, therefore, the level of management judgment involved in arriving at estimated net reserves for losses and loss expenses. As a result, actual losses for these events may ultimately differ materially from current estimates. Net reserves for losses and loss expenses related to the COVID-19 pandemic represents the Company's best estimate of losses and loss expenses that have been incurred at December 31, 2020. The determination of net reserves for losses and loss expenses is based on the Company's ground-up assessment of coverage from individual contracts and treaties across all lines of business, and includes a review of modeling analyses and market information, where appropriate. In addition, the Company considers information received from clients, brokers and loss adjusters together with global shelter-in-place orders and the outcomes of recent court judgments, including the UK Supreme Court ruling. The estimate of net reserves for losses and loss expenses related to the COVID-19 pandemic is subject to significant uncertainty. This uncertainty is driven by the inherent difficulty in making assumptions around the impact of the COVID-19 pandemic due to the lack of comparable events, the ongoing nature of the event, and its far-reaching impacts on world-wide economies and the health of the population. These assumptions include: • the nature and the duration of the pandemic; • the effects on health, the economy and the Company's customers; • the response of government bodies including legislative, regulatory or judicial actions and social influences that could alter the interpretation of the Company's contracts; • the coverage provided under the Company's contracts; • the coverage provided by the Company's ceded reinsurance; and • the evaluation of the loss and impact of loss mitigation actions. While the Company believes its estimate of net reserves for losses and loss expenses is adequate for losses and loss expenses that have been incurred at December 31, 2020 based on current facts and circumstances, the Company continues to monitor the appropriateness of these assumptions as new information comes to light and adjustments are made to the estimate of ultimate losses related to the COVID-19 pandemic if there are developments that are different from previous expectations. Adjustments are recorded in the period in which they are identified. Actual losses for this event may ultimately differ materially from the Company's current estimates. The estimate of net reserves for losses and loss expenses related to catastrophes other than the COVID-19 pandemic represent the Company's best estimate of losses and loss expenses that have been incurred at December 31, 2020.The determination of these net reserves for losses and loss expenses is estimated by management after a catastrophe occurs by completing an in-depth analysis of individual contracts which may potentially have been impacted by the catastrophic event. This in-depth analysis may rely on several sources of information including: • estimates of the size of insured industry losses from the catastrophic event and the Company's corresponding market share; • a review of the Company's portfolio of contracts performed to identify those contracts which may be exposed to the catastrophic event; • a review of modeled loss estimates based on information previously reported by customers and brokers, including exposure data obtained during the underwriting process; • discussions of the impact of the event with customers and brokers; and • catastrophe bulletins published by various independent statistical reporting agencies. A blend of these information sources is generally used to arrive at aggregate estimates of the ultimate losses arising from these catastrophic events. While the Company believes its estimate of net reserves for losses and loss expenses is adequate for losses and loss expenses that have been incurred at December 31, 2020 based on current facts and circumstances, the Company monitors changes in paid and incurred losses in relation to each significant catastrophe in subsequent reporting periods and adjustments are made to estimates of ultimate losses for each event if there are developments that are different from previous expectations. Adjustments are recorded in the period in which they are identified. Actual losses for these events may ultimately differ materially from the Company's current estimates. Selection of Reported Reserves – Management’s Best Estimate The Company's loss reserving process involves the collaboration of its underwriting, claims, actuarial, legal, ceded reinsurance and finance departments, includes various segmental committee meetings and culminates with the approval of a single point best estimate by the Company's Group Reserving Committee, which comprises senior management. In selecting this best estimate, management considers actuarial estimates and applies informed judgment regarding qualitative factors that may not be fully captured in these actuarial estimates. Such factors include, but are not limited to, the timing of the emergence of claims, volume and complexity of claims, social and judicial trends, potential severity of individual claims and the extent of Company historical loss data versus industry information. While these qualitative factors are considered in arriving at the point estimate, no specific provisions for qualitative factors are established. Reserve for Losses and Loss Expenses Reserve for losses and loss expenses comprise the following: At December 31, 2020 2019 Reserve for reported losses and loss expenses $ 5,331,900 $ 4,860,916 Reserve for losses incurred but not reported 8,594,866 7,891,165 Reserve for losses and loss expenses $ 13,926,766 $ 12,752,081 Reserve Roll-forward The following table presents a reconciliation of the Company's beginning and ending gross reserves for losses and loss expenses and net reserves for unpaid losses and loss expenses: Year ended December 31, 2020 2019 2018 Gross reserve for losses and loss expenses, beginning of year $ 12,752,081 $ 12,280,769 $ 12,997,553 Less reinsurance recoverable on unpaid losses, beginning of year (3,877,756) (3,501,669) (3,159,514) Net reserve for unpaid losses and loss expenses, beginning of year 8,874,325 8,779,100 9,838,039 Net incurred losses and loss expenses related to: Current year 3,297,161 3,123,698 3,389,949 Prior years (15,909) (78,900) (199,662) 3,281,252 3,044,798 3,190,287 Net paid losses and loss expenses related to: Current year (571,442) (598,988) (724,199) Prior years (2,365,959) (2,371,637) (2,368,615) (2,937,401) (2,970,625) (3,092,814) Foreign exchange and other 211,949 21,052 (1,156,412) Net reserve for unpaid losses and loss expenses, end of year 9,430,125 8,874,325 8,779,100 Reinsurance recoverable on unpaid losses, end of year 4,496,641 3,877,756 3,501,669 Gross reserve for losses and loss expenses, end of year $ 13,926,766 $ 12,752,081 $ 12,280,769 The Company writes business with loss experience generally characterized as low frequency and high severity in nature, which can result in volatility in its financial results. During 2020, 2019 and 2018, the Company recognized catastrophe and weather-related losses, net of reinstatement premiums, of $774 million, $336 million and $430 million. On December 15, 2019, the Company entered into a quota share retrocessional agreement with Harrington Re, a related party, which was deemed to have met the established criteria for retroactive reinsurance accounting. The Company recognized reinsurance recoverable on unpaid losses of $59 million related to this reinsurance agreement. This transaction was conducted at market rates consistent with negotiated arms-length contracts. On April 16, 2018, the Company entered into a quota share retrocessional agreement with Harrington Re, a related party, which was deemed to have met the established criteria for retroactive reinsurance accounting. The Company recognized reinsurance recoverable on unpaid losses of $108 million related to this reinsurance agreement. This transaction was conducted at market rates consistent with negotiated arms-length contracts. AXIS Managing Agency Ltd., the managing agent of Syndicate 2007 entered into an agreement for the Reinsurance to Close ("RITC") of the 2015 and prior years of account of Syndicate 2007, with an effective date of January 1, 2018. This agreement was accounted for as a novation reinsurance contract. At December 31, 2018, foreign exchange and other included a reduction in reserves for losses and loss expenses of $819 million related to this transaction. Estimates for Significant Catastrophe Events At December 31, 2020, net reserve for losses and loss expenses included estimated amounts for numerous catastrophe events. The magnitude and complexity of losses arising from certain of these events inherently increase the level of uncertainty and, therefore, the level of management judgment involved in arriving at estimated net reserves for losses and loss expenses. These events include the COVID-19 pandemic, Hurricanes Laura, Sally, Zeta and Delta, the Midwest derecho and wildfires across the West Coast of the United States in 2020, Japanese Typhoons Hagibis, Faxai and Tapah, Hurricane Dorian and the Australia Wildfires in 2019 and Hurricanes Michael and Florence, California Wildfires and Typhoon Jebi in 2018. As a result, actual losses for these events may ultimately differ materially from current estimates. Prior Year Reserve Development The Company's net favorable prior year reserve development arises from changes to estimates for losses and loss expenses related to loss events that occurred in previous calendar years. The following table presents net prior year reserve development by segment: Favorable (Adverse) Favorable (Adverse) Favorable (Adverse) Insurance Reinsurance Total Year ended December 31, 2020 $ 8,937 $ 6,972 $ 15,909 Year ended December 31, 2019 53,302 25,598 78,900 Year ended December 31, 2018 92,806 106,856 199,662 The following sections provide further details on net prior year reserve development by segment, reserving class and accident year. Insurance Segment : Favorable (Adverse) Favorable (Adverse) Favorable (Adverse) Years ended December 31, 2020 2019 2018 Property and other $ 46,791 $ 11,042 $ 64,781 Marine 16,780 33,260 17,913 Aviation 6,416 3,741 (2,938) Credit and political risk (745) 18,810 3,609 Professional lines (35,661) 11,721 31,687 Liability (24,644) (25,272) (22,246) Total $ 8,937 $ 53,302 $ 92,806 In 2020, we recognized $9 million of net favorable prior year reserve development, the principal components of which were: • $47 million of net favorable prior year reserve development on property and other business primarily due to better than expected loss emergence mainly related to the 2018 and 2019 accident years, better than expected loss emergence attributable to the 2017, 2018 and 2019 catastrophe events. • $17 million of net favorable prior year reserve development on marine business primarily due to better than expected loss emergence mainly related to the 2018 accident year. • $36 million of net adverse prior year reserve development on professional lines business primarily due to reserve strengthening within the European professional indemnity and financial institutions books of business and the commercial management solutions book of business mainly related to the 2018 and 2019 accident years and an increase in the loss estimate attributable to a specific large claim related to the 2009 accident year. • $25 million of net adverse prior year reserve development on liability business primarily due to reserve strengthening within the primary casualty, U.S. excess casualty and program books of business mainly related to the 2017 and 2018 accident years. In 2019, we recognized $53 million of net favorable prior year reserve development, the principal components of which were: • $33 million of net favorable prior year reserve development on marine business primarily due to better than expected loss emergence mainly related to the 2015 through 2017 accident years. • $19 million of net favorable prior year reserve development on credit and political risk business primarily due to better than expected loss emergence mainly related to recent accident years. • $12 million of net favorable prior year reserve development on professional lines business reflecting generally favorable experience on older accident years as the Company continued to transition to more experience based actuarial methods. • $11 million of net favorable prior year reserve development on property and other business primarily due to better than expected loss emergence related to the 2017 catastrophe events and SuperStorm Sandy, partially offset by reserve strengthening within the international book of business mainly related to the 2018 accident year. • $25 million of net adverse prior year reserve development on liability business primarily due to reserve strengthening within the U.S. excess casualty and U.S. primary casualty books of business mainly driven by the higher frequency and severity of auto claims and the higher frequency of general liability claims mainly related to the 2015 and 2017 accident years. Reinsurance Segment : Favorable (Adverse) Favorable (Adverse) Favorable (Adverse) Years ended December 31, 2020 2019 2018 Property and other $ (5,935) $ (133,448) $ 6,012 Credit and surety 36,829 53,223 33,497 Professional lines (15,352) 3,668 21,310 Motor 21,086 70,872 22,932 Liability (29,656) 31,283 23,105 Total $ 6,972 $ 25,598 $ 106,856 In 2020, we recognized $7 million of net favorable prior year reserve development, the principal components of which were: • $37 million of net favorable prior year reserve development on credit and surety business primarily due to better than expected loss emergence related to multiple accident years. • $21 million of net favorable prior year reserve development on motor business primarily due to non-proportional treaty business mainly related to older accident years, partially offset by an increase in loss estimates for proportional treaty business mainly related to the 2018 accident year. • $30 million of net adverse prior year reserve development on liability business due to reserve strengthening within the U.S. casualty, the U.S. multiline/regional and the European books of business mainly related to the 2016 to 2019 accident years and an increase in the loss estimate attributable to a specific large claim related to the 2009 accident year. • $15 million of net adverse prior year reserve development on professional lines business due to an increase in the loss estimate attributable to a specific large claim related to the 2016 accident year and reserve strengthening within the European book of business mainly related to the 2016 to 2018 accident years. • $6 million of net adverse prior year reserve development on property and other business primarily due to an increase in the loss estimate attributable to a specific large claim within the marine and aviation line of business related to the 2019 accident year, reserve strengthening within the engineering line of business mainly related to the 2016 to 2018 accident years, partially offset by net favorable prior year reserve development within the property line of business due to better than expected loss emergence attributable to the 2019 catastrophe events. In 2019, we recognized $26 million of net favorable prior year reserve development, the principal components of which were: • $71 million of net favorable prior year reserve development on motor business primarily due to the impact of the increase in the Ogden Rate and changes in related actuarial assumptions on several accident years. • $53 million of net favorable prior year reserve development on credit and surety business primarily due to better than expected loss emergence mainly related to accident years 2015 through 2017. • $31 million of net favorable prior year reserve development on liability business primarily due to increased weight given by management to experience based indications on older accident years. • $133 million of net adverse prior year reserve development on property and other business primarily due to an increase in loss estimates attributable to Hurricanes Irma and Michael consistent with industry trends, an increase in the loss estimate attributable to Typhoon Jebi consistent with updated industry insured loss estimates, and reserve strengthening within the U.S. regional and commercial proportional property books of business and the European proportional property book of business. Net Incurred and Paid Claims Development Tables by Accident Year The following tables present net incurred and paid claims development by accident year, total incurred-but-not-reported liabilities plus expected development on reported claims, cumulative reported claims frequency and average annual percentage payout of incurred claims by age for each reserve class. The loss development tables are presented on an accident year basis for the insurance and reinsurance segments. The Company does not discount reserves for losses and loss expenses. Non-U.S. dollar denominated loss data is converted to U.S. dollar at the rates of exchange in effect at the balance sheet date for material underlying currencies. Fluctuations in foreign currency exchange rates may cause material shifts in loss development. Reserves for losses and loss expenses disclosed in the consolidated balance sheets are also remeasured using the rates of exchange in effect at the balance sheet date. There are many considerations in establishing net reserves for losses and loss expenses and an attempt to evaluate net reserves for losses and loss expenses using solely the data presented in these tables could be misleading. The Company cautions against mechanical application of standard actuarial methodologies to project ultimate losses using data presented in this disclosure. Insurance Segment The reporting of cumulative claims frequency for the reserve classes within the insurance segment has been measured by counting the number of unique claim references including claim references assigned to nil and nominal case reserves. Claim references are grouped by claimant by loss event for each reserve class. For certain insurance facilities and business produced by managing general agents where underlying data is reported to the Company in an aggregated format, the information necessary to provide cumulative claims frequency is not available therefore reporting of claims frequency is deemed to be impracticable. Insurance Property and Other This reserve class includes property, terrorism, accident and health, and discontinued lines - Novae. The property line of business 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 energy installations. This line of business includes primary and excess risks, some of which are catastrophe-exposed. The terrorism line of business 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. The accident and health line of business includes accidental death, travel insurance and specialty health products for employer and affinity groups. A large increase in reported claims related to the accident and health line of business was observed from 2012. In addition, an increase in limited benefits medical business written in 2017 resulted in a significant increase in reported claims observed in that year. |
REINSURANCE
REINSURANCE | 12 Months Ended |
Dec. 31, 2020 | |
Reinsurance Disclosures [Abstract] | |
REINSURANCE | In the normal course of business, the Company purchases treaty and facultative reinsurance protection to limit ultimate losses from catastrophic events and reduce loss aggregation risk. Facultative reinsurance provides cover for all or a portion of the losses incurred for a single policy and the Company separately negotiates each facultative contract. Treaty reinsurance provides cover for a specified type or category of risks. The Company's treaty reinsurance agreements provide this cover on either an excess of loss or a proportional basis. Excess of loss covers provide a contractually set amount of coverage after a specified loss amount has been reached. These treaties can provide cover for a number of lines of business within one contract. Under proportional reinsurance, the Company cedes an agreed percentage of the premiums and the losses and loss expenses on the policies it underwrites. These treaties provide the Company with a specified percentage of coverage from the first dollar of loss. All of these reinsurance contracts provide the Company with the right to recover a specified amount of losses and loss expenses from reinsurers. To the extent that reinsurers do not meet their obligations under these agreements due to solvency issues, contractual disputes over contract language or coverage and/or other reasons, the Company remains liable. The Company predominantly cedes its business to reinsurers rated A- or better by A.M. Best. The following table presents gross and net premiums written and earned: Year ended December 31, 2020 2019 2018 Premiums Premiums Premiums Premiums Premiums Premiums Gross $ 6,826,938 $ 6,768,733 $ 6,898,858 $ 6,910,677 $ 6,910,065 $ 6,882,217 Ceded (2,490,529) (2,397,424) (2,409,243) (2,323,499) (2,251,103) (2,090,722) Net $ 4,336,409 $ 4,371,309 $ 4,489,615 $ 4,587,178 $ 4,658,962 $ 4,791,495 For the year ended December 31, 2020, the Company recognized ceded losses and loss expenses of $1,914 million (2019: $1,602 million; 2018: $1,565 million). At December 31, 2020, the Company's provision for uncollectible amounts was $24 million (2019: $18 million; 2018: $21 million). |
DEBT AND FINANCING ARRANGEMENTS
DEBT AND FINANCING ARRANGEMENTS | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
DEBT AND FINANCING ARRANGEMENTS | a) Debt The following table summarizes the Company's debt: Year ended December 31, 2020 2019 5.875% Senior Notes (1) $ — $ 499,687 5.150% Senior Notes 246,559 246,491 4.000% Senior Notes 347,324 346,997 3.900% Senior Notes 295,748 295,339 Junior Subordinated Notes 420,064 419,643 Total Debt $ 1,309,695 $ 1,808,157 (1) On June 1, 2020, AXIS Specialty Finance LLC, a 100% owned finance subsidiary, repaid $500 million aggregate principal amount of 5.875% Senior Notes at their stated maturity. The tables below provide the key terms of the Company's debt: Description Issuance Date Aggregate Principal Issue Price Net Proceeds Maturity Date 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 5.150% 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. 5.150% Senior Notes The 5.150% Senior Notes are ranked as unsecured senior obligations of AXIS Specialty Finance PLC, a 100% owned finance subsidiary. AXIS Capital has fully and unconditionally guaranteed all obligations of AXIS Specialty Finance PLC under the 5.150% Senior Notes. AXIS Capital's obligations under this guarantee are unsecured senior obligations and rank equally with all other senior obligations of AXIS Capital. On April 3, 2019, AXIS Capital and AXIS Specialty Finance PLC entered into a first supplemental indenture (the "First Supplemental Indenture") among AXIS Specialty Finance PLC, as issuer, AXIS Capital, as guarantor, and The Bank of New York Mellon Trust Company, N.A., as trustee (the "Trustee"), to the senior indenture (the "Indenture") relating to the 5.150% Senior Notes. The changes were made to permit the 5.150% Senior Notes to qualify as Tier 3 ancillary capital under eligible capital requirements of the Bermuda Monetary Authority. Because this amendment does not materially adversely affect the interests of the holders of the 5.150% Senior Notes, the First Supplemental Indenture was entered into without consent of any holders of the 5.150% Senior Notes. The First Supplemental Indenture relates to the 5.150% Senior Notes only and does not affect any other series of securities issued under the Indenture. 4.000% Senior Notes The 4.000% Senior Notes are ranked as unsecured senior obligations of AXIS Specialty Finance PLC, a 100% owned finance subsidiary. AXIS Capital has fully and unconditionally guaranteed all obligations of AXIS Specialty Finance PLC under the 4.000% Senior Notes. AXIS Capital's obligations under this guarantee are unsecured senior obligations and rank equally with all other senior obligations of AXIS Capital. 3.900% Senior Notes The 3.900% Senior Notes are ranked as unsecured senior 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 3.900% Senior Notes. AXIS Capital's obligations under this guarantee are unsecured senior obligations and rank equally with all other senior obligations of AXIS Capital. The Company has the option to redeem the Senior Notes at any time and from time to time, in whole or in part, at a ''make-whole'' redemption price, which is equal to the greater of the aggregate principal amount or the sum of the present values of the remaining scheduled payments of principal and interest. The related indentures contain various covenants, including limitations on liens on the stock of restricted subsidiaries, restrictions as to the disposition of the stock of restricted subsidiaries and limitations on mergers and consolidations. The Company was in compliance with all the covenants contained in the indentures at December 31, 2020. Interest expense recognized in relation to the Senior Notes includes interest payable, amortization of the offering discounts and amortization of debt offering expenses. The offering discounts and debt offering expenses are amortized over the period of time during which the Senior Notes are outstanding. For the year ended December 31, 2020, the Company incurred interest expense of $52 million (2019: $67 million, 2018: $64 million). 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, 2020, the Company incurred interest expense of $21 million (2019: $1 million). Scheduled Debt Maturity The following table provides the scheduled maturity of the Company's debt obligations at December 31, 2020: Year ended December 31, 2021 — 2022 — 2023 — 2024 — 2025 — After 2025 1,325,000 Unamortized discount and debt issuance expenses (15,305) Total senior notes and notes payable $ 1,309,695 b) Letter of Credit Facility On November 20, 2013, certain of AXIS Capital’s operating subsidiaries (the "Participating Subsidiaries") entered into an amendment to extend the term of the Company's secured $750 million letter of credit facility with Citibank Europe plc ("Citibank") (the "$750 million Facility") pursuant to a Master Reimbursement Agreement and other ancillary documents (together, the "LOC Facility Documents"). Under the terms of the $750 million Facility, letters of credit to a maximum aggregate amount of $750 million are available for issuance on behalf of the Participating Subsidiaries. These letters of credit are principally used to support the reinsurance obligations of the Participating Subsidiaries. The $750 million Facility is subject to certain covenants, including the requirement to maintain sufficient collateral, as defined in the LOC Facility Documents to cover all of the obligations under the $750 million Facility. Such obligations include contingent reimbursement obligations for outstanding letters of credit and fees payable to Citibank. In the event of default, Citibank may exercise certain remedies, including the exercise of control over pledged collateral and the termination of the availability of the $750 million Facility to any or all of the Participating Subsidiaries. On March 31, 2015, the Participating Subsidiaries entered into an amendment to reduce the maximum aggregate utilization capacity of the $750 million Facility to $500 million (the "$500 million Facility"). All other material terms and conditions remained unchanged. On March 27, 2017, the Participating Subsidiaries amended their existing $500 million Facility to include an additional $250 million of secured letter of credit capacity (the "$250 million Facility") pursuant to a Committed Facility Letter and an amendment to the Master Reimbursement Agreement. Under the terms of the $250 million Facility, letters of credit to a maximum aggregate amount of $250 million are available for issuance on behalf of the Participating Subsidiaries once the $500 million Facility has been fully utilized. On March 28, 2020, the expiration date of the $250 million Facility was extended to March 31, 2021. On December 24, 2019, the expiration date of the $500 million Facility was extended to December 31, 2023. At December 31, 2020, letters of credit outstanding under the LOC Facility were $339 million (2019: $357 million). At December 31, 2020, the Participating Subsidiaries were in compliance with all LOC Facility covenants. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | a) Concentrations of Credit Risk Credit Risk Aggregation The Company monitors and manages the aggregation of credit risk on a group-wide basis allowing it to consider exposure management strategies for individual companies, countries, regions, sectors and any other relevant inter-dependencies. The Company's credit exposures are aggregated based on the origin of risk. Credit risk aggregation is also managed through minimizing overlaps in underwriting, financing and investing activities. As part of its credit aggregation framework, the Company also assigns aggregate credit limits by country and by single counterparty (or parent of affiliated counterparties). These limits are based on and adjusted for a variety of factors including the prevailing economic environment and the nature of the underlying credit exposures. The Company's credit aggregation measurement and reporting process is facilitated by its credit risk exposure database, which contains relevant information on counterparty details and credit risk exposures. The database is accessible by management throughout the Company, therefore providing transparency to allow for the implementation of active exposure management strategies. The Company also licenses third-party tools to provide credit risk assessments. The Company monitors all its credit aggregations and, where appropriate, adjusts its internal risk limits and/or takes specific actions to reduce our risk exposures. The assets that potentially subject the Company to concentrations of credit risk consist principally of cash and investments, reinsurance recoverable on unpaid and paid claims and insurance and reinsurance premiums balances receivable, as described below: (i) Cash and Investments In order to mitigate concentration and operational risks related to cash and cash equivalents, the Company limits the maximum amount of cash that can be deposited with a single counterparty and limits acceptable counterparties based on current rating, outlook and other relevant factors. The Company's fixed maturity investment portfolio, which represents approximately $12 billion or 47% of its total assets, is exposed to potential losses arising from the diminished creditworthiness of issuers of bonds as well as third-party counterparties such as custodians. The Company's investment portfolio is managed by external investment managers in accordance with its investment guidelines. The Company limits credit risk through diversification, issuer exposure limits graded by ratings and, with respect to custodians, through contractual and other legal remedies. Excluding U.S. government and agency securities, the Company limits its concentration of credit risk to a ny single corporate issuer to 2% or less of its investment grade fixed maturities portfolio for securities rated A- or above and 1% or less of its investment grade fixed maturities portfolio for securities rated below A-. At December 31, 2020, the Company was in compliance with these limits. (ii) Reinsurance Recoverable on Unpaid and Paid Losses and Loss Expenses The Company is exposed to the credit risk associated with reinsurance recoverable on unpaid and paid losses and loss expenses to the extent that any of its reinsurers fail to meet their obligations under reinsurance contracts. To help mitigate this risk, the Company's purchase of reinsurance is subject to financial security requirements specified by its Reinsurance Security Committee. This Committee maintains a list of approved reinsurers, performs credit risk assessments for potential new reinsurers, regularly monitors approved reinsurers with consideration for events which may have a material impact on their creditworthiness, recommends counterparty tolerance levels for different types of ceded business and monitors concentrations of credit risk. This assessment considers a wide range of individual attributes, including a review of the counterparty’s financial strength, industry position and other qualitative factors. Generally, the Committee requires that reinsurers who do not meet specified requirements provide collateral. At December 31, 2020, the three largest balances by reinsurer accounted for 13%, 10% and 7% (2019: 12%, 10% and 9%) of reinsurance recoverable on unpaid and paid losses and loss expenses. At December 31, 2020, 87.6% (December 31, 2019: 89.1%) of the Company's reinsurance recoverable on unpaid and paid losses and loss expenses, gross of collateral were collectible from reinsurers rated the equivalent of A- or better by A.M. Best. (iii) Insurance and Reinsurance Premium Balances Receivable The diversity of the Company's client base limits credit risk associated with its insurance and reinsurance premium balances receivable. In addition, for insurance contracts the Company has contractual rights to cancel coverage for non-payment of premiums and for reinsurance contracts the Company has contractual rights to offset premium balances receivable against corresponding payments for losses and loss expenses. Brokers and other intermediaries collect premiums from customers on behalf of the Company. The Company has procedures in place to manage and monitor credit risk from intermediaries with a focus on day-to-day monitoring of the largest positions. These contractual rights contribute to the mitigation of credit risk, together with the monitoring of aged premium balances receivable. In light of these mitigating factors and considering that a significant portion of premium balances receivable are not currently due based on the terms of the underlying contracts, the Company does not utilize specific credit quality indicators to monitor its premium balances receivable. At December 31, 2020, the Company recorded an allowance for estimated uncollectible premium balances receivable of $9 million (2019: $7 million). For the year ended December 31, 2020, bad debt expense was $nil (2019: $nil; 2018: $nil). b) Brokers The Company produces its business through brokers and direct relationships with insurance companies. For the year ended December 31, 2020, three brokers accounted for 47% (2019: 47%; 2018: 43%) of gross premiums written. Marsh & McLennan Companies Inc. accounted for 19% (2019: 18%; 2018: 17%), Aon plc accounted for 17% (2019: 19%; 2018: 17%), and Willis Tower Watson PLC accounted for 11% (2019: 10%; 2018: 9%). No other broker and no single insured or reinsured accounted for more than 10% of gross premiums written in any of the last three years. c) Reinsura nce Purchase Commitment In the normal course of business, the Company purchases reinsurance and retrocessional (collectively referred to as "reinsurance") protection for its insurance and reinsurance business. Minimum reinsurance premiums are contractually due in advance on a quarterly basis. At December 31, 2020 , the Company had outstanding reinsurance purchase commitments of $13 million (2019: $57 million), all of which is due before June 30, 2023. A ctual payments under the reinsurance contracts will depend on the underlying subject premium and may exceed the minimum reinsurance premiums. d) Legal Proceedings From time to time, the Company is subject to routine legal proceedings, including arbitrations, arising in the ordinary course of business. These legal proceedings generally relate to claims asserted by or against the Company in the ordinary course of its insurance or reinsurance operations. Estimated amounts payable related to these proceedings are included in reserve for losses and loss expenses in the Company's consolidated balance sheets. The Company is not party to any material legal proceedings arising outside the ordinary course of business. e) Investments At December 31, 2020 the Company ha s $ 588 million (2019: $588 million ) of unfunded investment commitments related to its other investment portfolio, which are callable by investment managers (refer to Note 5(c) ' Investments '). At December 31, 2020 the Company has $46 million (2019: $32 million) of unfunded investment commitments to purchase commercial mortgage loans. f) Funds at Lloyd's The Company operates in the Lloyd’s market through its corporate members, AXIS Corporate Capital UK Limited and AXIS Corporate Capital UK II Limited, which provide 70% and 30%, respectively of Syndicate 1686's capital support. AXIS Corporate Capital UK II Limited is the sole corporate member of Syndicate 2007. Lloyd’s sets capital requirements for corporate members annually through the application of a capital model that is based on regulatory rules pursuant to Solvency II. The capital provided to support underwriting or FAL may be satisfied by cash, certain investments and letters of credit provided by approved banks. At December 31, 2020, investments and cash o f $1.2 billion (2019: $1.3 billion) were restricted to satisfy the Company's FAL requirements (refer to Note 5 'Investments' and Note 21 ' Statutory Financial Information' ). |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
LEASES | In the ordinary course of business, the Company renews and enters into new leases for office property and equipment, which expire at various dates. At the lease inception date, the Company assesses whether a contract is or contains a lease. At the commencement date, the Company determines the classification of each separate lease component as either a finance lease or an operating lease. The Company's leases are all currently classified as operating leases. For operating leases that have a lease term of more than 12 months, the Company recognizes a lease liability and a right-of-use asset in the Company's consolidated balance sheets at the present value of the lease payments at the lease commencement date. At the commencement date, the Company determines lease terms by assuming the exercise of those renewal options that are deemed to be reasonably certain. The exercise of lease renewal options is at the sole discretion of the Company. As the lease contracts generally do not provide an implicit discount rate, the Company uses its incremental borrowing rate based on information available at the commencement date to determine the present value of lease payments. The incremental borrowing rate is based on a borrowing with a term that is similar to the term of the associated lease. The Company has made an accounting policy election not to include renewal, termination, or purchase options that are not reasonably certain of exercise when determining the term of the borrowing. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Operating lease rentals are expensed on a straight-line basis over the life of the lease beginning on the commencement date. The following table presents the Company’s total lease expense and the cash flows arising from lease transactions: Year ended Year ended December 31, 2020 December 31, 2019 Lease cost: Operating lease expense $ 24,726 $ 27,549 Short-term lease expense (1) 299 1,132 Sublease income (2) (3,578) (1,144) Total lease expense $ 21,447 $ 27,537 Other information: Operating cash outflows from operating leases $ 20,452 $ 25,004 Right-of-use assets obtained in exchange for new operating lease liabilities $ 36,742 $ — Weighted-average remaining lease term - operating leases (3) 10.2 years 9.0 years Weighted-average discount rate - operating lease (4) 4.2 % 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 properties in New York and London. (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 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. The following table presents the scheduled maturity of the Company's operating lease liabilities at December 31, 2020: Expected Year ended December 31, Cash Flows 2021 $ 22,817 2022 23,598 2023 20,190 2024 14,478 2025 13,849 Later years 78,987 Discount (33,656) Total discounted operating lease liabilities $ 140,263 On February 1, 2020, the commencement date, the Company reflected a 15 year lease for a new office property in Alpharetta, Georgia in the Company's consolidated balance sheet. Consequently, this lease is also reflected in the maturity table above. The total contractual lease costs over the 15 year lease is $40 million. The following table presents the scheduled maturity of the Company's operating lease liabilities at December 31, 2019: Year ended December 31, 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 For the year ended December 31, 2018 , the total lease expense was $33 million. |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | The following table presents a comparison of earnings (loss) per common share and earnings (loss) per diluted common share: At and year ended December 31, 2020 2019 2018 Earnings (loss) per common share Net income (loss) $ (120,424) $ 323,473 $ 43,021 Less: Preferred share dividends 30,250 41,112 42,625 Net income (loss) available (attributable) to common shareholders $ (150,674) $ 282,361 $ 396 Weighted average common shares outstanding 84,262 83,894 83,501 Earnings (loss) per common share $ (1.79) $ 3.37 $ — Earnings (loss) per diluted common share Net income (loss) available (attributable) to common shareholders $ (150,674) $ 282,361 $ 396 Weighted average common shares outstanding 84,262 83,894 83,501 Share-based compensation plans (1) — 579 506 Weighted average diluted common shares outstanding 84,262 84,473 84,007 Earnings (loss) per diluted common share $ (1.79) $ 3.34 $ — Weighted average anti-dilutive shares excluded from the dilutive computation 922 154 245 (1) Due to the net loss recognized for the year ended December 31, 2020, the share equivalents were anti-dilutive. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' EQUITY | a) Common Shares The Company's authorized share capital is 800,000,000 common shares, par value of $0.0125 per share. The following table presents changes in common shares issued and outstanding: Year ended December 31, 2020 2019 2018 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 (92,621) (92,994) (93,419) Shares repurchased (194) (176) (200) Shares reissued 588 549 625 Total treasury shares at end of year (92,227) (92,621) (92,994) Total shares outstanding 84,353 83,959 83,586 Treasury Shares The Company's Board of Directors has not authorized a common share repurchase plan since December, 31, 2017. The following table presents common shares repurchased from shares held in Treasury: Year ended December 31, 2020 2019 2018 In the open market: Total shares — — — Total cost $ — $ — $ — Average price per share (1) $ — $ — $ — From employees: (2) Total shares 194 176 200 Total cost $ 10,382 $ 10,165 $ 10,080 Average price per share (1) $ 53.43 $ 57.66 $ 50.40 Total shares repurchased: Total shares 194 176 200 Total cost $ 10,382 $ 10,165 $ 10,080 Average price per share (1) $ 53.43 $ 57.66 $ 50.40 (1) Calculated using whole numbers. (2) Shares are repurchased from employees to satisfy withholding tax liabilities related to the vesting of share-settled restricted stock units. b) Preferred Shares Series D Preferred Shares On May 20, 2013, the Company issued $225 million of 5.50% Series D preferred shares, par value $0.0125 per share, with a liquidation preference of $25.00 per share. The Company could redeem the Series D preferred shares on or after June 1, 2018 at a redemption price of $25.00 per share. Dividends on the Series D preferred shares were non-cumulative. Holders of the Series D preferred shares were entitled to receive, only when, as and if declared by the Board of Directors, non-cumulative cash dividends from the original issue date, quarterly in arrears on the first day of March, June, September and December of each year, commencing on September 1, 2013. To the extent declared, dividends accumulate, with respect to each dividend period, in an amount per share equal to 5.50% of the liquidation preference per annum. On January 17, 2020, the Company redeemed all 9,000,000 Series D preferred shares, for an aggregate liquidation preference of $225 million. Series E Preferred Shares On November 7, 2016, the Company issued $550 million of 5.50% Series E preferred shares, par value $0.0125 per share, with a liquidation preference of $2,500 per share. The Company may redeem the Series E preferred shares on or after November 7, 2021 at a redemption price of $2,500 per share. Dividends on the Series E preferred shares are non-cumulative. Holders of the Series E preferred shares will be entitled to receive, only when, as and if declared by the Board of Directors, non-cumulative cash dividends from the original issue date, quarterly in arrears on the fifteenth day of January, April, July and October of each year, commencing on January 15, 2017. To the extent declared, dividends accumulate, with respect to each dividend period, in an amount per share equal to 5.50% of the liquidation preference per annum. Dividends The following table presents dividends declared and paid related to the Company's common and preferred shares: Per share data Dividends declared Dividends paid in year of declaration Dividends paid in year following declaration 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) $ 1.21 $ 1.03 $ 0.18 Series E preferred shares $ 137.50 $ 103.13 $ 34.38 Year ended December 31, 2020 Common shares $ 1.65 $ 1.23 $ 0.42 Series E preferred shares $ 137.50 $ 103.13 $ 34.38 (1) On January 17, 2020, the Company redeemed all 9,000,000 Series D preferred shares, for an aggregate liquidation preference of $225 million. The final dividend on the Series D preferred shares was declared in 2019. |
RETIREMENT PLANS
RETIREMENT PLANS | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
RETIREMENT PLANS | The Company maintains defined contribution plans to provide retirement benefits to eligible employees. Contributions to the plans, which are managed externally, are based on eligible compensation. For eligible U.S. employees, the Company provides a non-qualified deferred compensation plan that enables employees to make contributions to the plan that are in excess of those permitted under the Company's 401(k) Plan. In addition, employees are permitted to make additional contributions from any bonus received and to benefit from discretionary employer contribution to the Plan. During 2020, total pension expenses were $29 million (2019: $28 million and 2018: $27 million) for the above retirement benefits. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | In May 2017, shareholders approved the establishment of the AXIS Capital Holdings Limited 2017 Long-Term Equity Compensation Plan (the "2017 Plan"). The 2017 Plan provides for, among other things, the issuance of restricted shares, restricted stock units (share-settled awards and cash-settled awards), performance units (share-settled awards and cash-settled awards), stock options, stock appreciation rights and other equity-based awards to the Company's employees and directors. The 2017 Plan authorizes the issuance of a total of 3,400,000 common shares. The Company's 2017 Plan replaced its 2007 Long-Term Equity Compensation Plan ("2007 Plan") when it expired in May 2017. All remaining shares available for grant pursuant to the 2007 Plan have been canceled. Awards made pursuant to the 2007 Plan prior to its expiration remain in effect in accordance with the terms of the 2007 Plan. At December 31, 2020, 1,912,055 equity-based awards remained available for grant pursuant to the 2017 Plan. The grant date fair value of each award is established at the fair market value of the Company's common shares at the date of grant. Restricted Stock Units - Share-Settled Share-settled restricted stock units granted pursuant to the 2017 Plan or the 2007 Plan either cliff vest at the end of a three year period, vest in accordance with a three year graded vesting schedule in three annual installments beginning on the grant date, or vest in accordance with a four year graded vesting schedule in four annual installments beginning on the grant date. Restricted Stock Units - Cash-Settled Cash-settled restricted stock units granted pursuant to the 2017 Plan or the 2007 Plan are liability awards and generally cliff vest at the end of a three year period, or vest in accordance with a four year graded vesting schedule in four annual installments beginning on the grant date. Performance Restricted Stock Units - Share-Settled and Cash-Settled Performance restricted stock units granted pursuant to the 2017 Plan or the 2007 Plan represent the right to receive a specified number of common shares in the future, based on the achievement of established performance criteria and continued service during the applicable performance period. Awards granted pursuant to these plans generally cliff vest at the end of a three year period. Compensation expense is recognized on a straight-line basis over the applicable requisite service period and is subject to periodic adjustment based on the achievement of established performance criteria during the applicable performance period. Performance restricted stock units granted are either share-settled awards or cash-settled liability awards. Acceleration Provisions Grants provided under the 2017 Plan and the 2007 Plan generally allow for accelerated vesting provisions on the employee’s death, permanent disability, or certain terminations following a change in control of the Company occurring within two years of the change in control event. Notwithstanding these vesting provisions, the Compensation Committee of the Company's Board of Directors has broad authority to accelerate vesting at its discretion. Retirement Plan In 2016, the Company established the AXIS Executive Restricted Stock Unit Retirement Plan (the "Plan") to reward certain eligible long-term employees of the Company for their dedicated service. The Plan was implemented in 2017. Subject to certain conditions being met, eligible employees do not forfeit all of their outstanding share-settled restricted stock units or cash-settled restricted stock units on or following their retirement. Absent the Plan, outstanding restricted stock units are generally forfeited on termination of employment. a) Share-Settled Awards The following table provides an activity summary of the Company's share-settled restricted stock units: Share-Settled Performance Share-Settled Service Number of Weighted average grant date fair value (1) Number of Weighted average grant date fair value (1) 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 Granted 97 62.26 894 58.98 Vested (27) 64.01 (561) 55.29 Forfeited (39) 48.89 (105) 57.54 Nonvested restricted stock units - December 31, 2020 289 $ 55.92 1,501 $ 56.50 (1) Fair value is based on the closing price of the Company's common shares on the grant date. b) Cash-Settled Awards The following table provides an activity summary of the Company's cash-settled restricted stock units: Cash-Settled Performance Restricted Stock Units Cash-Settled Service Restricted Stock Units Number of Number of 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 Granted — 1 Vested (6) (332) Forfeited — (51) Nonvested restricted stock units - December 31, 2020 — 471 The following table provides additional information related to share-based compensation: Year ended December 31, 2020 2019 2018 Share-based compensation expense (1) $ 47,789 $ 52,218 $ 54,011 Tax benefits associated with share-based compensation expense $ 8,061 $ 8,913 $ 7,772 Liability for cash-settled restricted stock units (2) $ 13,273 $ 21,731 $ 20,648 Fair value of restricted stock units vested (3) $ 50,757 $ 51,206 $ 50,750 Unrecognized share-based compensation expense $ 74,014 $ 75,770 $ 87,341 Expected weighted average period associated with the recognition of unrecognized share-based compensation expense 2.4 years 2.3 years 2.4 years (1) Related to share-settled stock units and cash settled restricted stock units. (2) Included in other liabilities in the consolidated balance sheets. (3) Fair value is based on the closing price of the Company's common shares on the vest date. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | A member of the Company’s Board of Directors, Mr. Charles Davis, is the Chief Executive Officer of Stone Point Capital, LLC ("Stone Point"). In the ordinary course of business, the Company engages SKY Harbor Capital Management, LLC, an affiliate of Stone Point, to provide asset management services for certain short duration high yield debt portfolios. For the year ended December 31, 2020, total fees paid to SKY Harbor Capital Management, LLC, were $3 million (2019: $3 million; 2018: $2 million). The Company has investe d $7 million in NXT Capital Senior Loan Fund II, LP and $18 million in NXT Ca pital Senior Loan Fund III, LP. The manager of these funds is an indirect subsidiary of NXT Capital Inc. ("NXT Capital"). Investment funds managed by Stone Point indirectly owned approximat ely 43% of NXT Capital until this ownership interest was sold in August 2018. For the year ended December 31, 2018, fees paid to NXT Capital were $1 million. In addition, the Company has inves ted $38 million in t he Freedom Consumer Credit Fund, LLC - Series B. The manager of this fund is Freedom Financial Asset Management, LLC ("Freedom") which is an indirect subsidiary of Pantheon Partners, LLC ("Pantheon"). Investment funds managed by Stone Point own approximately 14.5% of Pantheon. For the year ended December 31, 2020, fees paid to Freedom were $2 million (2019: $3 million; 2018: $2 million). The Company has invested $23 million in Stone Point's private equity fund, Trident VIII L.P. ("Trident VIII"). For the year ended December 31, 2020, fees pai d to Stone Point in relation to Trident VIII were $1 million (2019 : $nil; 2018: $nil ). The Company has invested $11 million in a co-investment with Stone Point for a partnership interest in T-VIII Co-Invest-A LP ("Trident VIII Co-Invest") which was formed by Stone Point to facilitate the investment by multiple investors in Duff & Phelps, LLC, a financial advisory firm. For the year ended December 31, 2020, the Company has not paid any fees to Stone Point in relation to Trident VIII Co-Invest. The Company's Chairman, Mr. Butt received consulting fees for the year ended December 31, 2020 of $0.4 million (2019: $0.4 million; 2018: $0.5 million) pursuant to the terms of a consulting agreement between Mr. Butt and the Company which terminated on December 31, 2020. The Company's investment portfolio includes certain investments where it is considered to have the ability to exercise significant influence over the operating and financial policies of the investee. Significant influence is generally deemed to exist where the Company has an investment of 20% or more in the common stock of a corporation or an investment greater than 3% to 5% in closed end funds, limited partnerships, LLCs or similar investment vehicles. At December 31, 2020, the Company h as $404 million (2019: $410 million) of investments where it is deemed to have the ability to exercise such significant influence. The Company generally pays management and performance fees to the investment managers of these investments. The Company considers all fees paid to the investment managers to be at market rates consistent with negotiated arms-length contracts. Harrington and Harrington Re commenced operations in 2016 (refer to Note 5 ' Investments '). The Company has the ability to exercise significant influence over the operating and financial policies of Harrington and Harrington Re. In the normal course of business, the Company enters into certain reinsurance transactions with Harrington Re. For the year ended December 31, 2020, the Company ceded reinsurance premiums of $256 million (2019: $247 million; 2018: $194 million) and ceded losses of $187 million (2019: $157 million; 2018: $142 million) to Harrington Re. In addition, Harrington Re paid certain acquisition costs and administrative fees to the Company. At December 31, 2020, the amount of reinsurance recoverable on unpaid and paid losses was $641 million (2019: $518 million) and the amount of ceded reinsurance payable included in insurance and reinsurance balances payable was $188 million (2019: $159 million) in the consolidated balance sheets. All transactions were conducted at market rates consiste nt with negotiated arms-length contracts. On November 5, 2013, the Company formed AXIS Ventures Reinsurance Limited ("Ventures Re"), a Bermuda domiciled insurer. All of Ventures Re's directors are employees of the Company. With effect from January 1, 2015, Ventures Re is no longer included in the consolidated financial statements of the Company. In the normal course of business, the Company entered into certain reinsurance contracts with Ventures Re. Effective, January 1, 2020, Ventures Re entered into a novation reinsurance contract with various reinsurers. For the year ended December 31, 2020, the Company ceded premiums of $nil (2019: $192 million; 2018: $182 million) and ceded losses of $nil (2019: $140 million; 2018: $138 million) to Ventures Re. In addition, Ventures Re paid certain acquisition costs and administrative fees to the Company. At December 31, 2020, the amount of reinsurance recoverable on unpaid and paid losses was $nil (2019: $199 million) and the amount of ceded reinsurance payable included in insurance and reinsurance balances payable was $nil (2019: $46 million) in the consolidated balance sheets. All transactions were conducted at market rates consistent with negotiated arms-length contracts. |
REORGANIZATION EXPENSES
REORGANIZATION EXPENSES | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
REORGANIZATION EXPENSES | For the year ended December 31, 2020, reorganization expenses were $8 million (2019: $37 million and 2018: $67 million), respectively, related to the Company's transformation program which was launched in 2017. This program encompasses the integration of Novae, which commenced in the fourth quarter of 2017, the realignment of the Company's accident and health business, together with other initiatives designed to increase efficiency and enhance profitability while delivering a customer-centric operating model. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Under current Bermuda law, AXIS Capital's Bermuda domiciled subsidiaries are not required to pay any taxes in Bermuda on income or capital gains. The Company has received an assurance from the Minister of Finance in Bermuda that, in the event of any taxes being imposed, it will be exempt from taxation in Bermuda until March 2035. The Company's primary Bermuda subsidiary has an operating branch in Singapore, which is subject to the relevant taxes in that jurisdiction. The Singapore branch is not under examination in that tax jurisdiction but remains subject to examination for tax years 2017 through 2020. AXIS Capital's U.S. subsidiaries are subject to federal, state and local corporate income taxes, and other taxes applicable to U.S. corporations. The provision for federal income taxes has been determined under the principles of the consolidated tax provisions of the U.S. Internal Revenue Code and regulations. Should the U.S. subsidiaries pay a dividend outside the U.S. group, withholding taxes will apply. The Company's U.S. subsidiaries are not under examination but remain subject to examination for tax years 2017 through 2020. In Canada, AXIS Capital's U.S. reinsurance company operates through a branch and its U.S. service company has an unlimited liability company subsidiary based in Canada. The Canadian operations are subject to the relevant taxes in that jurisdiction and remain subject to examination for tax years 2016 through 2020. AXIS Capital had subsidiaries in Ireland, the U.K., Belgium, Luxembourg, Brazil, and Dubai in 2018. Effective January 1, 2019, AXIS Capital's subsidiary in Belgium was merged into AXIS Specialty Europe. In addition, the Company ceased operations in Luxembourg in December 2019. Consequently, AXIS Capital had subsidiaries in Ireland, the U.K., Brazil, and Dubai in 2020. AXIS Capital's Irish operations had branches in the U.K. and Switzerland in 2018. Effective January 1, 2019, following the merger of AXIS Specialty Europe and Aviabel SA., AXIS Capital's Irish operations also has branches in Belgium and the Netherlands. There are ongoing audits in Ireland, with respect to 2016 and 2017 tax years, and Belgium, with respect to 2017 and 2018 tax years. There are no other ongoing audits of AXIS Capital's subsidiaries or branches, but they remain subject to examination in all applicable jurisdictions for tax years 2016 through 2020. In the U.K., the Company operates through Lloyd’s syndicates whose income is subject to tax in the U.K., payable by its corporate members. The income from operations at Lloyd’s is also subject to taxes in other jurisdictions in which Lloyd's operates, including the U.S. Under a Closing Agreement between Lloyd’s and the IRS, Lloyd's corporate members pay U.S. income tax on U.S. connected income written by Lloyd’s syndicates. To the extent that the Lloyd’s syndicates suffer taxes outside the U.K., they may claim a credit for foreign taxes suffered, limited to the U.K. equivalent tax on the same income. The following table provides an analysis of income tax expense and net tax assets: Year ended December 31, 2020 2019 2018 Current income tax expense (benefit) U.S. $ (1,122) $ 12,601 $ (5,401) Europe 365 22,425 10,409 Other — 469 51 Deferred income tax expense (benefit) U.S. (3,098) 17,665 15,288 Europe (8,466) (29,468) (49,833) Total income tax expense (benefit) $ (12,321) $ 23,692 $ (29,486) Net current tax receivables (payables) $ 12,205 $ 13,130 $ 9,683 Net deferred tax assets (liabilities) (1,625) 18,621 39,775 Net tax assets $ 10,580 $ 31,751 $ 49,458 Deferred income taxes reflect the tax impact of temporary differences between the carrying amounts of assets and liabilities for financial reporting and income tax purposes. The following table provides details of the significant components of deferred tax assets and liabilities: At December 31, 2020 2019 Deferred tax assets: Discounting of net reserves for losses and loss expenses $ 47,912 $ 40,523 Unearned premiums 46,049 42,709 Operating and capital loss carryforwards (1) 80,008 85,901 Accruals not currently deductible 28,096 29,705 Tax credits 11,142 2,956 Other deferred tax assets 24,266 14,355 Deferred tax assets before valuation allowance 237,473 216,149 Valuation allowance (20,778) (18,560) Deferred tax assets net of valuation allowance 216,695 197,589 Deferred tax liabilities: Deferred acquisition costs (33,550) (38,320) Net unrealized investments gains (62,921) (30,434) Intangible assets (46,132) (44,199) Equalization reserves (2,825) (2,825) Other deferred tax liabilities (72,892) (63,190) Deferred tax liabilities (218,320) (178,968) Net deferred tax assets $ (1,625) $ 18,621 (1) At December 31, 2020 and 2019, the total operating loss carryforwards includes Lloyd's deferred year of account losses of $39 million and $50 million, respectively. The following table summarizes total operating and capital loss carryforwards and tax credits: At December 31, 2020 2019 Operating and Capital Loss Carryforwards (1) Singapore (branch) operating loss carryforward $ 110,504 $ 103,899 U.K. operating loss carryforward (2) 357,226 431,374 Ireland operating loss carryforward 404 9,064 Ireland capital loss carryforward 716 716 Belgian operating loss carryforward 1,850 — Tax Credits (1) Ireland foreign tax credit $ 2,386 $ 2,092 U.K. tax credit 8,756 864 (1) At December 31, 2020, all remaining operating and capital loss carryforwards and tax credits can be carried forward indefinitely. (2) At December 31, 2020 and 2019, the U.K. operating loss carryforward includes Lloyd's deferred year of account losses of $206 million and $293 million, respective ly. The following table shows an analysis of the movement in the Company's valuation allowance: At December 31, 2020 2019 Income tax expense: Valuation allowance - beginning of year $ 18,560 $ 13,891 Operating loss carryforwards 661 2,445 Foreign tax credit 293 (114) U.K. branch assets and other foreign rate differentials 1,264 2,338 Valuation allowance - end of year $ 20,778 $ 18,560 Accumulated other comprehensive income: Valuation allowance - beginning of year — 5,064 Change in investment - related items — (5,064) Valuation allowance - end of year — — Total valuation allowance - end of year $ 20,778 $ 18,560 At December 31, 2020 and 2019, the Company established a full valuation allowance on: (1) operating loss carryforwards relating to operations in Singapore; (2) un-utilized foreign tax credits available in Ireland and (3) certain other deferred tax assets related to branch operations. At December 31, 2019, the valuation allowance on certain unrealized investment losses was released as the Company was in an unrealized investment gain position. Although realization is not assured, management believes it is more likely than not that the tax benefit of the recorded net deferred tax assets will be realized. In evaluating the Company's ability to recover these tax assets within the jurisdiction from which they arise, it considered all available positive and negative evidence, including historical results, operating loss carry-back potential and scheduled reversals of deferred tax liabilities. The Company believes its U.S. and U.K. operations will produce significant taxable income in future periods and have deferred tax liabilities that will reverse in future periods, such that the Company believes sufficient ordinary taxable income is available to utilize all remaining ordinary deferred tax assets. At December 31, 2020 and 2019, there were no unrecognized tax benefits. The following table presents the distribution of income before income taxes between domestic and foreign jurisdictions as well as a reconciliation of the actual income tax rate to the amount computed by applying the effective tax rate of 0% under Bermuda law to income before income taxes: Year ended December 31, 2020 2019 2018 Income (loss) before income taxes Bermuda (domestic) $ (45,951) $ 179,418 $ 181,597 Foreign (86,794) 167,747 (168,062) Total income (loss) before income taxes $ (132,745) $ 347,165 $ 13,535 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. 5.6 % 8.1 % 65.7 % Europe 9.2 % 0.4 % (289.7) % Valuation allowance (1.7) % 1.3 % (13.4) % Net tax exempt income — % — % (3.3) % Change in European enacted tax rate (1.7) % — % 16.9 % Other (2.1) % (3.0) % 5.9 % Actual tax rate 9.3 % 6.8 % (217.9) % |
OTHER COMPREHENSIVE INCOME (LOS
OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
OTHER COMPREHENSIVE INCOME (LOSS) | The following table presents the tax effects allocated to each component of other comprehensive income (loss): Before tax amount Income tax (expense) benefit Net of tax amount Year ended December 31, 2020 Available for sale investments: Unrealized gains (losses) arising during the year for which an allowance for expected credit losses has not been recognized $ 360,357 $ (43,191) $ 317,166 Unrealized gains (losses) arising during the year for which an allowance for expected credit losses has been recognized (40) — (40) Adjustment for reclassification of net realized (gains) losses, impairment losses and OTTI losses recognized in net income (loss) (90,380) 12,368 (78,012) Unrealized gains (losses) arising during the year, net of reclassification adjustment 269,937 (30,823) 239,114 Foreign currency translation adjustment 3,571 — 3,571 Total other comprehensive income (loss), net of tax $ 273,508 $ (30,823) $ 242,685 Year ended December 31, 2019 Available for sale investments: Unrealized gains (losses) 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 (loss) $ (29,618) $ 4,889 $ (24,729) Unrealized gains (losses) arising during the year, net of reclassification adjustment (1) 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 (loss) 105,730 (4,828) 100,902 Unrealized gains (losses) arising during the year, net of reclassification adjustment (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) The following table presents details of amounts reclassified from accumulated other comprehensive income ("AOCI") to net income (loss): Amounts reclassified from AOCI (1) AOCI components Consolidated statement of operations line item that includes reclassification adjustment Years ended December 31, 2020 2019 2018 Unrealized gains (losses) on available for sale investments Other realized gains (losses) $ 91,866 $ 36,602 $ (95,997) Impairment losses (1,486) — — OTTI losses — (6,984) (9,733) Total before tax 90,380 29,618 (105,730) Income tax (expense) benefit (12,368) (4,889) 4,828 Net of tax $ 78,012 $ 24,729 $ (100,902) Foreign currency translation adjustments (2) Foreign exchange gains (losses) $ — $ 6,043 $ — Income tax (expense) benefit — — — Net of tax $ — $ 6,043 $ — (1) Amounts in parentheses are charges to net income (loss). |
STATUTORY FINANCIAL INFORMATION
STATUTORY FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2020 | |
STATUTORY FINANCIAL INFORMATION [Abstract] | |
STATUTORY FINANCIAL INFORMATION | The Company's insurance and reinsurance operations are subject to insurance and reinsurance laws and regulations in the jurisdictions in which they operate, the most significant of which include Bermuda, Ireland, and the U.S. In addition, the Company is regulated by Lloyd's. These regulations include certain restrictions on the amount of dividends or other distributions, such as loans or cash advances, available to shareholders without prior approval from insurance regulatory authorities. The statutory capital and surplus in each of the Company's most significant regulatory jurisdictions is shown in the following table: Bermuda Ireland U.S. At December 31, 2020 2019 2020 2019 2020 2019 Required statutory capital and surplus $ 1,584,854 $ 1,502,153 $ 778,493 $ 719,405 $ 542,824 $ 500,750 Available statutory capital and surplus $ 3,004,077 $ 3,288,752 $ 1,085,317 $ 1,069,621 $ 1,685,684 $ 1,713,013 Bermuda Under the Insurance Act 1978, amendments thereto and related regulations of Bermuda (the "Act"), the Company's Bermuda subsidiary, AXIS Specialty Bermuda is required to maintain minimum statutory capital and surplus equal to the greater of a minimum solvency margin ("MSM") and the Enhanced Capital Requirement ("ECR"). The MSM is the greater of $100 million, 50% of net premiums written, 15% of net reserve for losses and loss expenses, and 25% of the ECR. The Company's ECR is calc ulated based on a standard risk-based capital model developed by the Bermuda Monetary Authority ("BMA"). In 2016, the BMA implemented an Economic Balance Sheet ("EBS") framework which is used as the basis to determine the ECR. At December 31, 2020 and 2019, the required and available statutory capital and surplus were based on this EBS framework. Under the Act, AXIS Specialty Bermuda is restricted as to the payment of dividends for amounts greater than 25% of the prior year’s statutory capital and surplus, whereby an affidavit signed by at least two members of the Board of Directors is required, attesting that any dividend in excess of this amount would not cause the Company to fail to meet its relevant margins. At December 31, 2020, the maximum dividend AXIS Specialty Bermuda could pay, without a signed affidavit, having met minimum levels of statutory capital and surplus requirements, was approximately $792 million (2019: $844 million). Ireland Effective January 1, 2016, the Company's Irish subsidiaries, AXIS Specialty Europe and AXIS Re SE, are required to maintain the Minimum Capital Requirement ("MCR") and the Solvency Capital Requirement ("SCR") at all times. The capital requirements are calculated by reference to Solvency II definitions. If an entity falls below the MCR or SCR, the Central Bank of Ireland is authorized to take action to restore the financial position of the Comp any's Irish subsidiaries. During 2020 and 2019, the Company's Irish subsidiaries were in compliance with these requirements. The Company's Irish subsidiaries may declare dividends subject to meeting their solvency and capital requirements. The maximum dividend is limited to "excess eligible own funds" which is defined as excess Solvency II capital over the SCR and may also be limited to "profits available for distribution'', which is defined as accumulated realized profits less accumulated realized losses and statutory reserves. In response to the ongoing COVID-19 pandemic, the Central Bank of Ireland requires the Company's Irish subsidiaries to obtain approval prior to making any distribution. At December 31, 2020, the maximum dividend the Company's Irish subsidiaries could pay, having met their solvency and capital requirements was approximately $11 million (2019: $70 million). United States The Company's U.S. operations required statutory capital and surplus is determined using the risk-based capital formula ("RBC"), which is the National Association of Insurance Commissioners' (the "Commissioner") method of measuring the minimum capital appropriate for U.S. reporting entities to support its overall business operations in consideration of its size and risk profile. If a company falls below the authorized control level as determined under the RBC, the Commissioner is authorized to take whatever regulatory actions may be considered necessary to protect policyholders and creditors. The maximum dividend that may be paid by the Company's U.S. insurance subsidiaries is restricted by the regulatory requirements of the domiciliary states. Generally, the maximum dividend that may be paid by each of the Company's U.S. insurance subsidiaries is limited to unassigned surplus (statutory equivalent of retained earnings) and may also be limited to statutory net income, net investment income or 10% of total statutory capital and surplus. At December 31, 2020, the maximum dividend that the Company's U.S. insurance operations could pay without regulatory approval was approximately $110 million (2019: $141 million). Lloyd's of London The Company operates in the Lloyd’s market through its corporate members, AXIS Corporate Capital UK Limited and AXIS Corporate Capital UK II Limited, which provide 70% and 30%, respectively, of Syndicate 1686's capital support. AXIS Corporate Capital UK Limited was the sole corporate member of Syndicate 1686 until December 31, 2018. Effective August 4, 2017, AXIS Managing Agency assumed management of Syndicate 1686, replacing the Company's third-party managing agency agreement with Asta Managing Agency Limited, which had been in place since 2014. AXIS Capital UK II Limited is the sole corporate member of Syndicate 2007. On January 1, 2018, the Company received authorization from Lloyd’s for AXIS Managing Agency to commence management and oversight of Syndicate 2007. Corporate members of Lloyd’s and Lloyd’s syndicates are bound by the rules of Lloyd’s, which are prescribed by Bye-laws and Requirements made by the Council of Lloyd’s under powers conferred by the Lloyd’s Act 1982. These rules prescribe members’ membership subscription, the level of their contribution to the Lloyd’s Central Fund and the assets they must deposit with Lloyd’s in support of their underwriting. The Council of Lloyd’s has broad powers to sanction breaches of its rules, including the power to restrict or prohibit a member’s participation on Lloyd’s syndicates. The capital provided to support underwriting, or FAL, is not available for distribution for the payment of dividends or for working capital requirements. Corporate members may also be required to maintain funds under the control of Lloyd’s in excess of their capital requirements and such funds also may not be available for distribution for the payment of dividends. Lloyd’s sets the corporate members’ required capital annually through the application of a capital model that is based on regulatory rules pursuant to Solvency II. FAL may be satisfied by cash, certain investments and letter s of credit provided by approved banks. At December 31, 2020, fixed maturities and short-term investments with a fair value of $746 million (2019: $725 million) and cash of $12 million (2019: $22 million), respectively, were restricted to satisfy AXIS Corporate Capital UK Limited FAL requirements. At December 31, 2020, fixed maturities and short-term investments with a fair value of $361 million (2019: $513 million), equity securities with a fair value of $23 million (2019: $49 million), and cash of $14 million (2019: $5 million ) were restricted to satisfy AXIS Corporate Capital UK II Limited FAL requirements (refer to Note 5 ' Investments '). Each year, corporate members can apply to Lloyd's to release accumulated funds, whether syndicate profits or interest on FAL, which are in excess of the agreed FAL requirements. At December 31, 2020 and 2019, actual capital and assets exceeded the FAL requirements for Syndicates 1686 and 2007. During 2020, net funds of $32 million (2019: $47 million) were released from FAL. Both AXIS Corporate Capital UK Limited and AXIS Corporate Capital II Limited continue to support the FAL requirements of Syndicates 1686 and 2007. Branch Offices The Company's operating subsidiaries in Bermuda and the U.S. maintain branch offices in Singapore and Canada, respectively. The Company's Irish operating subsidiaries maintain branch offices in Switzerland, the U.K, Belgium, and the Netherlands. As branch offices are not considered separate entities for regulatory purposes, the required and actual statutory capital and surplus amounts for each jurisdiction in the table above, include amounts related to the applicable branch offices. The Company's branch offices in Singapore and Canada are subject to additional minimum capital or asset requirements in their countries of domicile. At December 31, 2020 and 2019, the actual capital/assets for each of these branches exceeded the relevant local regulatory requirements. Total statutory net income (loss) of the Company's operating subsidiaries was $85 million , $364 million, and $268 million for 2020, 2019 and 2018, respectively. The differences between statutory financial statements and statements prepared in accordance with U.S. GAAP vary by jurisdiction, however, the primary differences are that statutory financial statements may not reflect deferred acquisition costs, certain net deferred tax assets, goodwill and intangible assets, unrealized gains (losses) on fixed maturities or certain unauthorized reinsurance recoverable balances. |
UNAUDITED CONDENSED QUARTERLY F
UNAUDITED CONDENSED QUARTERLY FINANCIAL DATA | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
UNAUDITED CONDENSED QUARTERLY FINANCIAL DATA | An unaudited summary of quarterly financial results is shown in the following table: Quarters ended Dec 31 Sep 30 Jun 30 Mar 31 2020 Net premiums earned $ 1,087,368 $ 1,091,312 $ 1,104,003 $ 1,088,625 Net investment income 109,503 101,956 45,040 93,101 Net investment gains (losses) 83,356 55,609 53,043 (62,877) Underwriting income (loss) (1) (2) (80,835) (135,324) 87,412 (196,767) Net income (loss) available (attributable) to common shareholders (4,819) (72,945) 112,477 (185,390) Earnings (loss) per common share $ (0.06) $ (0.87) $ 1.33 $ (2.20) Earnings (loss) per diluted common share $ (0.06) $ (0.87) $ 1.33 $ (2.20) 2019 Net premiums earned $ 1,172,051 $ 1,157,307 $ 1,123,607 $ 1,134,212 Net investment income 117,557 115,763 137,949 107,303 Net investment gains 42,712 14,527 21,225 12,767 Underwriting income (loss) (1) (2) (49,254) (78,718) 78,659 77,822 Net income (loss) available (attributable) to common shareholders (9,897) 27,745 166,387 98,125 Earnings (loss) per common share $ (0.12) $ 0.33 $ 1.98 $ 1.17 Earnings (loss) per diluted common share $ (0.12) $ 0.33 $ 1.97 $ 1.16 (1) Consolidated underwriting income is a pre-tax measure of underwriting profitability that takes into account net premiums earned and other insurance related income (loss) as revenues and net losses and loss expenses, acquisition costs and underwriting-related general and administrative expenses as expenses. Consolidated underwriting income (loss) is a non-GAAP financial measure as defined in Item 10(e) of SEC Regulation S-K. The reconciliation to income (loss) before income taxes and interest in income (loss) of equity method investments, the most comparable GAAP financial measure, is provided in Note 3 'Segment Information'. (2) Underwriting-related general and administrative expenses include those general and administrative expenses that are incremental and/or directly attributable to the Company's underwriting operations. 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 $27 million, $21 million, $27 million and $27 million for the quarters ended December 31, September 30, June 30 and March 31, 2020, respectively. During the quarters ended December 31, September 30, June 30 and March 31, 2019, corporate expenses were $32 million, $29 million, $32 million and $36 million, respectively. Corporate expenses include holding company costs necessary to support the Company's worldwide insurance and reinsurance operations and costs associated with operating as a publicly-traded company. As these costs are not incremental and/or directly attributable to the Company's underwriting operations, these costs are excluded from underwriting-related general and administrative expenses, and therefore, consolidated underwriting income (loss). (3) During the quarters ended December 31, September 30, June 30 and March 31, 2020, the Company recognized reorganization expenses of $7 million, $1 million, $0.4 million and $1 million, respectively, related to its transformation program. During the quarters ended December 31, September 30, June 30 and March 31, 2019, the Company recognized reorganization expenses of $8 million, $11 million, $3 million and $15 million, respectively (refer to Note 18 ' Reorganization Expense' ). (4) During the quarters ended December 31, September 30, June 30 and March 31, 2020, the Company recognized amortization of VOBA of $1 million, $1 million, $1 million and $2 million, respectively, related to the acquisition of Novae. During the quarters ended December 31, September 30, June 30 and March 31, 2019, the Company recognized amortization of VOBA of $2 million, $4 million, $7 million and $13 million, respectively (refer to Note 4 'Goodwill and Intangible Assets '). |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS In the first quarter of 2021, North America experienced severe winter weather that may impact the Company's financial results. The assessment of the financial impact of these events on the Company's first quarter results is at a very early stage. Due to geographic spread, the complexity of the damages and the recent timing of these events, it is not possible at this time to provide an accurate estimate of the financial impact these events will have on the Company's first quarter results. |
SCHEDULE I - SUMMARY OF INVESTM
SCHEDULE I - SUMMARY OF INVESTMENTS - OTHER THAN INVESTMENTS IN RELATED PARTIES | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Abstract] | |
SCHEDULE I - SUMMARY OF INVESTMENTS - OTHER THAN INVESTMENTS IN RELATED PARTIES | AXIS CAPITAL HOLDINGS LIMITED SUMMARY OF INVESTMENTS - OTHER THAN INVESTMENTS IN RELATED PARTIES At December 31, 2020 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 $ 1,881,489 $ 1,918,699 $ 1,918,699 Non-U.S. government 632,875 671,273 671,273 Corporate debt 4,408,351 4,655,951 4,655,951 Agency RMBS 1,244,727 1,286,209 1,286,209 CMBS 1,268,273 1,353,587 1,353,587 Non-agency RMBS 136,198 140,104 140,104 ABS 1,712,236 1,720,078 1,720,078 Municipals 282,781 295,898 295,898 Total fixed maturities $ 11,566,930 12,041,799 12,041,799 Mortgage loans, held for investment, at fair value 593,290 593,290 Short-term investments, at fair value 161,897 161,897 Equity securities, at fair value 518,445 518,445 Other investments, at fair value (1) 539,616 829,156 Equity method investments (2) — 114,209 Total investments $ 13,855,047 $ 14,258,796 (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. |
SCHEDULE II - CONDENSED FINANCI
SCHEDULE II - CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY ONLY | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
SCHEDULE II - FOOTNOTES | AXIS CAPITAL HOLDINGS LIMITED CONDENSED BALANCE SHEETS – PARENT COMPANY DECEMBER 31, 2020 AND 2019 2020 2019 (in thousands) Assets Investments in subsidiaries $ 5,633,176 $ 5,807,851 Cash and cash equivalents 1,711 3,103 Other assets 5,832 5,540 Total assets $ 5,640,719 $ 5,816,494 Liabilities Intercompany payable $ 289,486 $ 215,911 Dividends payable 50,153 50,927 Other liabilities 5,386 5,648 Total liabilities 345,025 272,486 Shareholders’ equity Preferred shares 550,000 775,000 Common shares (shares issued 2020: 176,580; 2019: 176,580 shares outstanding 2020: 84,353; 2019: 83,959) 2,206 2,206 Additional paid-in capital 2,330,054 2,317,212 Accumulated other comprehensive income 414,395 171,710 Retained earnings 5,763,607 6,056,686 Treasury shares, at cost (2020: 92,227; 2019: 92,621) (3,764,568) (3,778,806) Total shareholders’ equity 5,295,694 5,544,008 Total liabilities and shareholders’ equity $ 5,640,719 $ 5,816,494 (1) 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 5.15% senior unsecured notes. AXIS Capital's obligations under this guarantee are unsecured senior obligations and rank equally with all other senior obligations of AXIS Capital. (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 $350 million aggregate principal amount of 4.0% senior unsecured notes. AXIS Capital's obligations under this guarantee are unsecured senior obligations and rank equally with all other senior obligations of AXIS Capital. (3) AXIS Capital has fully and unconditionally guaranteed all obligations of AXIS Specialty Finance LLC, a 100% owned finance subsidiary, related to the issuance of $300 million aggregate principal amount of 3.9% senior unsecured notes. AXIS Capital's obligations under this guarantee are unsecured senior obligations and rank equally with all other senior obligations of AXIS Capital. (4) 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. SCHEDULE II AXIS CAPITAL HOLDINGS LIMITED CONDENSED STATEMENTS OF OPERATIONS – PARENT COMPANY YEARS ENDED DECEMBER 31, 2020, 2019 AND 2018 2020 2019 2018 (in thousands) Revenues Net investment income $ 750 $ 1,800 $ 900 Total revenues 750 1,800 900 Expenses General and administrative expenses 37,629 53,335 29,250 Total expenses 37,629 53,335 29,250 Income (loss) before equity in net income (loss) of subsidiaries (36,879) (51,535) (28,350) Equity in net income (loss) of subsidiaries (83,545) 375,008 71,371 Net income (loss) (120,424) 323,473 43,021 Preferred share dividends 30,250 41,112 42,625 Net income (loss) available (attributable) to common shareholders $ (150,674) $ 282,361 $ 396 Comprehensive income (loss) $ 122,261 $ 672,293 $ (158,973) SCHEDULE II AXIS CAPITAL HOLDINGS LIMITED CONDENSED STATEMENTS OF CASH FLOWS – PARENT COMPANY YEARS ENDED DECEMBER 31, 2020, 2019 AND 2018 2020 2019 2018 (in thousands) Cash flows from operating activities: Net income (loss) $ (120,424) $ 323,473 $ 43,021 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Equity in net (income) loss of subsidiaries 83,545 (375,008) (71,371) Change in intercompany payable 73,575 (32,081) 87,042 Dividends received from subsidiaries 350,000 250,000 200,000 Other items 20,715 23,619 (79,927) Net cash provided by operating activities 407,411 190,003 178,765 Cash flows from financing activities: Taxes paid on withholding shares (10,382) (10,165) (10,080) Dividends paid - common shares (141,590) (137,209) (133,502) Repurchase of preferred shares (225,000) — — Dividends paid - preferred shares (31,831) (42,625) (42,625) Net cash used in financing activities (408,803) (189,999) (186,207) Increase (decrease) in cash, cash equivalents and restricted cash (1,392) 4 (7,442) Cash, cash equivalents and restricted cash - beginning of year 3,103 3,099 10,541 Cash, cash equivalents and restricted cash - end of year $ 1,711 $ 3,103 $ 3,099 |
SCHEDULE III - SUPPLEMENTARY IN
SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract] | |
SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION | AXIS CAPITAL HOLDINGS LIMITED SUPPLEMENTARY INSURANCE INFORMATION At and year ended December 31, 2020 (in thousands) Deferred Reserve Unearned Net Net investment income (1) Net losses Acquisition Other operating expenses (2) Net Insurance $ 176,749 $ 7,310,498 $ 2,295,763 $ 2,299,038 $ — $ 1,697,014 $ 461,533 $ 378,839 $ 2,357,501 Reinsurance 254,690 6,616,268 1,390,123 2,072,271 — 1,584,238 467,984 99,129 1,978,908 Corporate — — — — 349,601 — — 101,822 — Total $ 431,439 $ 13,926,766 $ 3,685,886 $ 4,371,309 $ 349,601 $ 3,281,252 $ 929,517 $ 579,790 $ 4,336,409 At and year ended December 31, 2019 (in thousands) Deferred Reserve Unearned Net Net investment income (1) Net losses Acquisition Other operating expenses (2) Net Insurance $ 191,925 $ 6,496,568 $ 2,115,664 $ 2,190,084 $ — $ 1,278,679 $ 468,281 $ 401,963 $ 2,209,155 Reinsurance 300,194 6,255,513 1,510,582 2,397,094 — 1,766,119 556,301 103,772 2,280,460 Corporate — — — — 478,572 — — 129,096 — Total $ 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, 2018 (in thousands) Deferred Reserve Unearned Net Net investment income (1) Net losses Acquisition Other operating expenses (2) Net Insurance $ 209,622 $ 6,426,309 $ 2,061,123 $ 2,362,606 $ — $ 1,494,323 $ 399,193 $ 395,252 $ 2,324,747 Reinsurance 357,000 5,854,460 1,574,635 2,428,889 — 1,695,964 569,642 123,916 2,334,215 Corporate — — — — 438,507 — — 108,221 — Total $ 566,622 $ 12,280,769 $ 3,635,758 $ 4,791,495 $ 438,507 $ 3,190,287 $ 968,835 $ 627,389 $ 4,658,962 (1) The Company evaluates underwriting results of its reportable segments separately from the performance of its investment portfolio therefore, the Company believes it is appropriate to exclude net investment income from its underwriting profitability measure. (2) Amounts related to the Company's reportable segments reflect underwriting-related general and administrative expenses, which includes those general and administrative expenses that are incremental and/or directly attributable to the Company's underwriting operations. 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, presented in the table above, also includes corporate expenses of $102 million, $129 million, and $108 million for the years ended December 31, 2020, 2019 and 2018, respectively. Corporate expenses include holding company costs necessary to support our worldwide insurance and reinsurance operations and costs associated with operating as a publicly-traded company. As these costs are not incremental and/or directly attributable to the Company's underwriting operations, these expenses are excluded from underwriting-related general and administrative expenses. |
SCHEDULE IV - SUPPLEMENTARY REI
SCHEDULE IV - SUPPLEMENTARY REINSURANCE INFORMATION | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |
SCHEDULE IV - SUPPLEMENTARY REINSURANCE INFORMATION | AXIS CAPITAL HOLDINGS LIMITED SUPPLEMENTARY REINSURANCE INFORMATION YEARS ENDED DECEMBER 31, 2020, 2019 AND 2018 (in thousands) CEDED TO ASSUMED NET PERCENTAGE 2020 Property and Casualty $ 3,455,690 $ 2,446,890 $ 2,840,834 $ 3,849,634 73.8 % Accident and Health 154,511 43,639 375,903 486,775 77.2 % Total $ 3,610,201 $ 2,490,529 $ 3,216,737 $ 4,336,409 74.2 % 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 % |
BASIS OF PRESENTATION AND SIG_2
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and the rules and regulations of the U.S. Securities and Exchange Commission ("SEC") and include AXIS Capital Holdings Limited and its wholly-owned subsidiaries.Tabular dollar and share amounts are in thousands, with the exception of per share amounts. All amounts are reported in U.S. dollars. |
Consolidation/VIEs | All inter-company accounts and transactions have been eliminated. |
Reclassification | |
Use of Estimates | The preparation of these consolidated financial statements requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. While management believes that the amounts included in the consolidated financial statements reflect its best estimates and assumptions, actual results could differ from those estimates. The Company’s principal estimates include: • reserve for losses and loss expenses; • reinsurance recoverable on unpaid losses and loss expenses, including the provision for expected credit losses; • gross premiums written and net premiums earned; • fair value measurements of financial assets and liabilities; and • the allowance for credit losses associated with available for sale securities. |
Investments | Fixed Maturities, Available for sale, at Fair Value Fixed maturities classified as available for sale are reported at fair value (refer to Note 6 ' Fair Value Measurements '). The change in fair values of fixed maturities, net of tax is recognized in accumulated other comprehensive income (loss) ("AOCI") in the consolidated statement of changes in shareholders’ equity. Net investment income includes interest income and the amortization of market premiums and discounts and is presented net of investment expenses. Investment income is recognized when earned. Purchases and sales of fixed maturities are recorded on a trade-date basis and realized gains (losses) on sales of fixed maturities are determined based on the specific identification method. Realized gains (losses) on fixed maturities are included in net investment gains (losses) in the consolidated statements of operations. The Company recognizes investment income from fixed maturities based on the constant effective yield method, which includes an adjustment for estimated principal repayments, if applicable. The effective yield used to determine the amortization of fixed maturities subject to prepayment risk (e.g. asset-backed, mortgage-backed and other structured securities) is recalculated and adjusted periodically based on historical and/or projected future cash flows. Adjustments to the yield for highly rated prepayable fixed maturities are accounted for using the retrospective method. Adjustments to the yield for other prepayable fixed maturities are accounted for using the prospective method. Following the adoption of Accounting Standard Update ("ASU") 2016-13, "Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments, " (refer to ' New Accounting Standards Adopted in 2020' below): An available for sale fixed maturity is impaired if the fair value of the investment is below amortized cost. If a fixed maturity is impaired and the Company intends to sell the security or it is more likely than not that the Company will be required to sell the security before its anticipated recovery, the full amount of the impairment loss is charged to net income and is included in net investment gains (losses). In instances where the Company intends to hold the impaired fixed maturity, the Company determines whether the decline in fair value below the amortized cost basis has resulted from a credit loss or other factors. If the Company does not anticipate to fully recover the amortized cost , an allowance for expected credit losses is established. The allowance for expected credit losses is limited to the difference between a security's amortized cost basis and its fair value. The allowance for expected credit losses is charged to net income and is included in net investment gains (losses). On a quarterly basis, the Company assesses whether unrealized losses on fixed maturities represent credit impairments by considering the following factors: a. the extent to which the fair value is less than amortized cost; b. adverse conditions related to the security, industry, or geographical area; c. downgrades in the security's credit rating by a credit rating agency; and d. failure of the issuer to make scheduled principal or interest payments. The length of time a security has been in an unrealized loss position no longer impacts the determination of whether a credit loss exists. If a security is assessed to be credit impaired, it is subject to a discounted cash flow analysis by comparing the present value of expected future cash flows with the amortized cost basis. If the present value of expected cash flows is less than the amortized cost, a credit loss exists and an allowance for expected credit losses is recognized. If the present value of expected future cash flows is equal to or greater than the amortized cost basis, an expected credit loss does not exist. The non-credit impairment amount of the loss is recognized in other comprehensive income. The Company reports accrued interest receivable related to available for sale debt securities separately and has elected not to measure an allowance for expected credit losses for accrued interest receivable. Write-offs of accrued interest receivable balances are recognized in net investment gains (losses) in the period in which they are deemed uncollectible. Prior to the adoption of ASU 2016-13 An available for sale fixed maturity is impaired if the fair value of the investment is below amortized cost. On a quarterly basis, the Company assesses whether unrealized losses on fixed maturities represent impairments that are other-than-temporary. The Company's impairment review process begins with a quantitative analysis to identify securities to be evaluated for potential OTTI. For identified securities, fundamental analysis is performed that considers the following quantitative and qualitative factors: 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. If a fixed maturity is impaired and the Company intends to sell the security or it is more likely than not that the Company will be required to sell the security before its anticipated recovery, the impairment is considered other-than-temporary. In these instances, the full amount of the impairment is charged to net income and is included in net investment gains (losses) in the consolidated statements of operations. In instances where the Company intends to hold the impaired fixed maturity, the Company estimates the anticipated credit loss on the security and this component of the impairment is charged to net income and is included in net investment gains (losses) in the consolidated statements of operations. On recognition of an OTTI charge, the new cost basis for the security is the amortized cost basis less the OTTI charge recognized in net income. The new cost basis is not adjusted for subsequent increases in fair value. The difference between the new cost basis and the cash flows expected to be collected is accreted or amortized on a quarterly basis to net investment income over the remaining life of the fixed maturity. The Company recognizes the non-credit component of the impairment (i.e. related to interest rates, market conditions, etc.) in other comprehensive income. Equity Securities, at Fair Value Equity securities are reported at fair value. The change in the fair values of equity securities, net of tax is recognized in net investment gains (losses) in the consolidated statements of operations. Net investment income includes dividend income and is presented net of investment expenses. Investment income is recognized when earned. Purchases and sales of equity securities are recorded on a trade-date basis and realized gains (losses) on sales of equity securities are determined based on the specific identification method. Realized gains (losses) on equity securities are included in net investment gains (losses) in the consolidated statements of operations. Mortgage Loans, Held for investment, at Fair Value Following the adoption of Accounting Standard Update ("ASU") 2016-13, "Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments, " (refer to ' New Accounting Standards Adopted in 2020' below): Mortgage loans, held for investment are reported at amortized cost which is calculated as the unpaid principal balance, adjusted for any unamortized premium or discount, deferred fees or expenses, and is net of valuation allowances. Mortgage loans, held for investment are presented net of an allowance for expected credit losses. The allowance for expected credit losses is estimated based on the Company’s analysis of projected lifetime losses. These projections take into account the Company’s experience with credit quality indicators, loan losses, defaults, loss severity, and loss expectations for loans with similar risk characteristics. These evaluations are revised as conditions change and new information becomes available. The allowance for expected credit losses is recognized in net investment gains (losses). Any adjustment to the allowance for expected credit losses is recognized in the period in which it is determined. Interest income and prepayment fees are recognized when earned. Interest income is recognized based on an effective yield method which gives effect to the amortization of premiums and accretion of discounts. Prior to the adoption of ASU 2016-13 Mortgage loans, held for investment are reported at amortized cost which is calculated as the unpaid principal balance, adjusted for any unamortized premium or discount, deferred fees or expenses, and is net of valuation allowances. Interest income and prepayment fees are recognized when earned. Interest income is recognized based on an effective yield method which gives effect to the amortization of premiums and accretion of discounts. Other Investments Other investments are recorded at fair value (refer to Note 6 ' Fair Value Measurements '). Changes in fair value and realized gains (losses) are reported in net investment income in the consolidated statements of operations. Equity Method Investments Investments in which the Company has significant influence over the operating and financial policies of the investee are classified as equity method investments and are accounted for using the equity method of accounting. In applying the equity method of accounting, investments are initially recorded at cost and are subsequently adjusted based on the Company’s proportionate share of net income or loss of the investee. Adjustments are based on the most recently available financial information from the investee. Changes in the carrying value of these investments are recorded in net income as interest in income (loss) of equity method investments. Short-term Investments Short-term investments primarily comprise highly liquid debt securities with maturities greater than three months but less than one year from the date of purchase. These investments are carried at amortized cost, which approximates fair value. |
Cash and Cash Equivalents | Cash equivalents include money-market funds, fixed interest deposits and reverse repurchase agreements with a maturity of under 90 days when purchased. Cash and cash equivalents are recorded at amortized cost, which approximates fair value due to the short-term, liquid nature of these securities. Restricted cash primarily relates to funds held in trust to support obligations in regulatory jurisdictions where the Company operates as a non-admitted carrier and to support the underwriting activities of Syndicate 1686 and Syndicate 2007 at Lloyd's. |
Premiums - Gross Premiums Written | Insurance premiums written are recorded in accordance with the terms of the underlying policies. Reinsurance premiums are recorded at the inception of the contract based on estimates received from ceding companies. For multi-year contracts insurance and reinsurance premiums are recorded at the inception of the contract based on management’s best estimate of total premiums to be received. Premiums are recognized on an annual basis for multi-year contracts where the cedant has the ability to unilaterally commute or cancel coverage within the term of the contract. Any adjustments to insurance and reinsurance premium estimates are recognized in the period in which they are determined. |
Premiums - Net Premiums Earned | Insurance and reinsurance premiums are earned evenly over the period during which the Company is exposed to the underlying risk, which is generally one to two years with the exception of multi-year contracts. Unearned premiums represent the portion of premiums which relate to the unexpired risks under contracts in force. Reinstatement premiums are recognized and earned at the time a loss event occurs and losses are recorded, where the coverage limits for the remaining life of the contract are reinstated under pre-defined contract terms. The recognition of reinstatement premiums is based on estimates of losses and loss expenses, which reflects management’s judgment, as described in Note 2(d) ' Losses and Loss Expenses ' below. |
Premiums - Receivables | Following the adoption of Accounting Standard Update ("ASU") 2016-13, "Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments, " (refer to ' New Accounting Standards Adopted in 2020' below): Insurance and reinsurance premium balances receivable are reviewed for impairment at least quarterly and are presented net of an allowance for expected credit losses. The allowance for expected credit losses is estimated based on the Company's analysis of amounts due, historical delinquencies and write-offs, and current economic conditions, together with reasonable and supportable forecasts of short-term economic conditions. The allowance for expected credit losses is recognized in net income (loss). Any adjustment to the allowance for expected credit losses is recognized in the period in which it is determined. Write-offs of premium balances receivable, together with associated allowances for expected credit losses, are recognized in the period in which balances are deemed uncollectible. The Company does not have a history of significant write-offs. Prior to the adoption of ASU 2016-13 |
Acquisition Costs | Acquisition costs vary with and are directly related to the successful acquisition efforts of acquiring new or renewing existing insurance and reinsurance contracts and consist primarily of fees and commissions paid to brokers and premium taxes. Acquisition costs are shown net of commissions on reinsurance purchased. Net acquisition costs are deferred and charged to net income as the related premium is earned. Insurance and reinsurance premium balances receivable is presented net of acquisition costs when contract terms provide for the right of offset. Anticipated losses and loss expenses, other costs and investment income related to these premiums are considered in assessing the recoverability of deferred acquisition costs. If deferred amounts are estimated to be unrecoverable, they are expensed. Compensation expenses for personnel involved in contract acquisition, as well as advertising costs, are expensed as incurred. |
Losses and Loss Expenses | Reserve for losses and loss expenses represents an estimate of the unpaid portion of the ultimate liability for losses and loss expenses for insured and reinsured events that have occurred at or before the balance sheet date. These amounts reflect claims that have been reported ("case reserves") and claims that have been incurred but have not yet been reported ("IBNR") and are reduced for estimated amounts of salvage and subrogation recoveries. The Company reviews its reserve for losses and loss expenses on a quarterly basis. Case reserves are primarily established based on amounts reported by clients and/or their brokers. Management estimates IBNR after reviewing detailed actuarial analyses and applying informed judgment regarding qualitative factors that may not be fully captured in the actuarial estimates. A variety of actuarial methods are utilized in this process, including the Expected Loss Ratio, Chain Ladder and Bornhuetter Ferguson methods. The estimate is highly dependent on management’s judgment as to which method(s) are most appropriate for a particular accident/underwriting year and line of business. Historical claims data is often supplemented with industry benchmarks when applying these methodologies. Any adjustments to estimates of reserve for losses and loss expenses are recognized in the period in which they are determined. While the Company believes that its reserves for losses and loss expenses are adequate, this estimate requires significant judgment and new information, events or circumstances may result in ultimate losses that are materially greater or less than provided for in the consolidated balance sheets. |
Reinsurance | In the normal course of business, the Company purchases treaty and facultative reinsurance protection to limit its ultimate losses from catastrophic events and to reduce its loss aggregation risk. The premiums paid to reinsurers (i.e. ceded premiums written) are recognized over the coverage period. Prepaid reinsurance premiums represent the portion of premiums ceded which relate to the unexpired term of the contracts in force. Reinstatement premiums are recognized and earned at the time a loss event occurs and losses are recorded, where the coverage limits for the remaining life of the contract are reinstated under pre-defined contract terms. Reinsurance recoverable on unpaid losses and loss expenses ("reinsurance recoverable") related to case reserves is estimated on a case-by-case basis by applying the terms of applicable reinsurance cover to individual case reserve estimates. Reinsurance recoverable related to IBNR is generally developed as part of the Company's loss reserving process, therefore, its estimation is subject to similar risks and uncertainties as the estimation of IBNR. Following the adoption of Accounting Standard Update ("ASU") 2016-13, "Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments, " (refer to ' New Accounting Standards Adopted in 2020' below): Reinsurance recoverable balances are reviewed for impairment at least quarterly and are presented net of an allowance for expected credit losses. A case-specific allowance for expected credit losses is estimated based on the Company's analysis of amounts due, historical delinquencies and write-offs. In addition, the Company uses a default analysis which is based on the reinsurers' credit rating and the length of collection periods to estimate allowances for expected credit losses on the remainder of the reinsurance recoverable balance. The default analysis considers current and forecasted economic conditions. The allowance for expected credit losses is recognized in net income (loss). Any adjustment to the allowance for expected credit losses is recognized in the period in which it is determined. Write-offs of reinsurance recoverable balances, together with associated allowances for expected credit losses, are recognized in the period in which balances are deemed uncollectible. The Company does not have a history of significant write-offs. Prior to the adoption of ASU 2016-13 Reinsurance recoverable is presented net of a provision for uncollectible amounts, reflecting the amount the Company believes ultimately will not be recovered from reinsurers due to insolvency, contractual disputes over contract language or coverage and/or some other reason. The Company applies case specific provisions against reinsurance recoverable balances that it deems unlikely to be collected in full. In addition, the Company uses a default analysis to estimate the provision for uncollectible amounts on the remainder of the reinsurance recoverable balance. The estimates of reinsurance recoverable balances and the provision for uncollectible amounts require management’s judgment and are reviewed in detail on a quarterly basis. Any adjustments to the provision for uncollectible amounts are recognized in the period in which they are determined. Retroactive Reinsurance Retroactive reinsurance reimburses a ceding company for liabilities incurred as a result of past insurable events covered under contracts subject to the reinsurance. In certain instances, reinsurance contracts cover losses both on a prospective basis and on a retroactive basis and where practical the Company bifurcates the prospective and retrospective elements of these reinsurance contracts and accounts for each element separately. Initial gains in connection with retroactive reinsurance contracts are deferred and amortized into income over the settlement period while losses are recognized immediately. When changes in the estimated amount recoverable from the reinsurer or in the timing of receipts related to that amount occur, a cumulative amortization adjustment is recognized in net income in the period in which the change is determined so that the deferred gain reflects the balance that would have existed had the revised estimate been available at the inception of the reinsurance transaction. |
Foreign Exchange | The functional currency of the Company and the majority of its subsidiaries is the U.S. dollar. All foreign currency transactions are initially measured and recorded in functional currency using the rates of exchange prevailing at the transaction date. Monetary assets and liabilities denominated in foreign currency are remeasured to functional currency at the rates of exchange in effect at the balance sheet date with the resulting foreign exchange losses (gains) generally being recognized in the consolidated statements of operations. Foreign exchange losses (gains) related to available for sale investments denominated in foreign currency represent an unrealized appreciation (depreciation) in the market value of the securities and are included in AOCI. Non-monetary assets and liabilities denominated in foreign currency are not subsequently remeasured. The Company’s reporting currency is the U.S. dollar. Assets and liabilities of the Company's subsidiaries and branches where the functional currency is not the U.S. dollar, are translated into U.S. dollars using the rates of exchange in effect at the balance sheet date, and revenue and expenses are translated using the weighted average foreign exchange rates for the period. The effect of translation adjustments is reported as a separate component of AOCI in the consolidated statements of change shareholders’ equity. |
Share-based Compensation | The Company is authorized to issue restricted shares, restricted stock units, performance units, stock options, stock appreciation rights and other equity-based awards to its employees and directors. The Company's plan includes share-settled and cash-settled service and performance awards. The fair value of share-settled and cash-settled service and performance awards is based on the market value of the Company's common share measured at the grant date and is expensed over the requisite service period. Compensation expense associated with share-settled and cash-settled performance awards is also subject to periodic adjustment based on the achievement of established performance criteria during the applicable performance period. The fair value of the cash-settled service and performance awards is recognized as a liability in the consolidated balance sheets and is remeasured at the end of each reporting period. The Company recognizes forfeitures when they occur. |
Derivative Instruments | The Company may enter into derivative instruments such as futures, options, interest rate swaps and foreign currency forward contracts as part of its overall foreign currency risk management strategy, to obtain exposure to a particular financial market or for yield enhancement. From time to time the Company may also enter into insurance and reinsurance contracts that meet the Financial Accounting Standards Board's ("FASB") definition of a derivative contract. The Company measures all derivative instruments at fair value (refer to Note 6 ' Fair Value Measurements ') and recognizes these instruments as either assets or liabilities in the consolidated balance sheets. Subsequent changes in fair value and any realized gains or losses are recognized in the consolidated statements of operations. |
Goodwill and Intangible Assets | The Company recognizes goodwill and other intangible assets in connection with certain acquisitions. Goodwill represents the excess of the purchase price paid over the fair value of the net assets acquired in these acquisitions and is not amortized. Other intangible assets with a finite life are amortized over the estimated useful live of the intangible asset. Other intangible assets with an indefinite life are not amortized. The Company tests goodwill and indefinite intangible assets for potential impairment during the fourth quarter each year and between annual tests if an event occurs or changes in circumstances indicate that the asset is impaired. Such events or circumstances may include an economic downturn in a geographic market or a change in the assessment of future operations. For the purpose of evaluating goodwill for impairment, the Company may first perform a qualitative assessment to determine whether it is necessary to perform a quantitative goodwill impairment test. If determined to be necessary, the quantitative test compares the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired. If the carrying amount of the reporting unit exceeds the fair value, an impairment loss is recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. For the purpose of evaluating indefinite lived intangibles for impairment, the Company may first perform a qualitative assessment to determine whether it is necessary to perform the quantitative impairment test. If the Company elects to perform a qualitative assessment, it first assesses qualitative factors to determine whether it is more likely than not that an indefinite lived intangible asset is impaired. If the Company determines that it is more likely than not that the indefinite lived intangible asset is impaired, the Company performs the quantitative impairment test. For the purposes of evaluating goodwill and indefinite lived intangible assets for impairment, the Company has an unconditional option to bypass the qualitative assessment in any period and proceed directly to performing the quantitative impairment test. The Company may resume performing the qualitative assessment in any subsequent period. For other definite lived intangible assets the Company tests for recoverability whenever events or changes in circumstances indicate its carrying amount may not be recoverable. The Company recognizes an impairment loss if the carrying amount of the asset is not recoverable and exceeds its fair value. The carrying amount of a definite lived intangible asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. If goodwill or an intangible asset is impaired, the carrying value of the asset is reduced to fair value and a corresponding expense is recorded in the consolidated statements of operations. |
Income Taxes | Certain subsidiaries and branches of the Company operate in jurisdictions where they are subject to taxation. Current and deferred income taxes are charged or credited to net income, or in certain cases to AOCI, based on enacted tax laws and rates applicable in the relevant jurisdiction in the period in which the tax becomes accruable or realizable. Deferred income taxes are provided for all temporary differences between the bases of assets and liabilities used in the consolidated balance sheets and those used in the various jurisdictional tax returns. When the assessment indicates that it is more likely than not that a portion of a deferred tax asset will not be realized in the foreseeable future, a valuation allowance against deferred tax assets is recorded. The Company recognizes the tax benefits of uncertain tax positions only when the position is more-likely-than-not to be sustained on audit by the relevant taxing authorities. |
Treasury Shares | Common shares repurchased by the Company and not subsequently canceled are classified as treasury shares and are recorded at cost. This results in a reduction of shareholders’ equity in the consolidated balance sheets. The Company uses the average cost method to determine the cost of shares reissued from treasury. |
Leases | The Company recognizes a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term related to office property and equipment leases. The Company accounts for non-lease components separately from lease components. As a result, the non-lease components associated with the Company's leases are not included in the lease liabilities and right-of-use assets in the Company's consolidated balance sheets. |
New Accounting Standards Adopted in 2020 | Measurement of Credit Losses on Financial Instruments Effective January 1, 2020, the Company adopted ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments, " using the modified retrospective approach for insurance and reinsurance premium balances receivable, reinsurance recoverable on unpaid losses and loss expenses and mortgage loans, held for investment. The Company assessed that the impact of adoption of ASU 2016-13 was $nil. This guidance replaced the "incurred loss" impairment methodology with an approach based on "expected losses" to estimate credit losses on certain types of financial instruments and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The guidance requires financial assets to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the cost of the financial asset to present the net carrying value at the amount expected to be collected on the financial asset. Insurance and reinsurance premium balances receivable of $2,738 million at December 31, 2020 was presented net of an allowance for expected credit losses. The allowance for expected credit losses was estimated based on the Company's analysis of amounts due, historical delinquencies and write-offs, and current economic conditions, together with reasonable and supportable forecasts of short-term economic conditions, giving consideration to the potential impact from the COVID-19 pandemic. At December 31, 2020, the allowance for credit losses expected to be recognized over the life of premium balances receivable was $9 million. Reinsurance recoverable on unpaid losses and loss expenses of $4,497 million at December 31, 2020 was presented net of an allowance for expected credit losses. A case-specific allowance for expected credit losses was estimated based on the Company's analysis of amounts due, historical delinquencies and write-offs. In addition, the Company used a default analysis based on the reinsurers' credit rating and the length of collection periods to estimate allowances for expected credit losses on the remainder of the reinsurance recoverable balance. The default analysis considered current and forecasted economic conditions including the potential impact from the COVID-19 pandemic. At December 31, 2020, the allowance for credit losses expected to be recognized over the life of the reinsurance recoverable balances was $24 million. Mortgage loans, held for investment of $593 million at December 31, 2020 was presented net of an allowance for expected credit losses. The allowance for expected credit losses was estimated based on the Company’s analysis of projected lifetime losses. These projections take into account the Company’s experience with credit quality indicator s, loan losses, defaults, loss severity, and loss expectations for loans with similar risk characteristics. These projections are revised as conditions change and new information becomes available. At December 31, 2020, the allowance for credit losses expected to be recognized over the life of our mortgage loans was $nil. Effective January 1, 2020, the Company adopted the targeted changes to the impairment model for available for sale securities introduced in ASU 2016-13 using the prospective transition approach. The updated guidance amends the previous other-than-temporary impairment model by requiring the recognition of impairments related to credit losses through an allowance account and limits the amount of credit loss to the difference between a security's amortized cost basis and its fair value. In addition, the length of time a security has been in an unrealized loss position no longer impacts the determination of whether a credit loss exists. In instances where the Company intends to hold the impaired fixed maturity, and it does not anticipate to fully recover the amortized cost , an allowance for expected credit losses is established. At December 31, 2020, the allowance for expected credit losses w as $(0.3) million . |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
UNDERWRITING RESULTS OF REPORTABLE SEGMENTS | The following tables present the underwriting results of the Company's reportable segments, as well as the carrying amounts of allocated goodwill and intangible assets: At and year ended December 31, 2020 Insurance Reinsurance Total Gross premiums written $ 4,018,399 $ 2,808,539 $ 6,826,938 Net premiums written 2,357,501 1,978,908 4,336,409 Net premiums earned 2,299,038 2,072,271 4,371,309 Other insurance related income (loss) 2,647 (10,736) (8,089) Net losses and loss expenses (1,697,014) (1,584,238) (3,281,252) Acquisition costs (461,533) (467,984) (929,517) Underwriting-related general and administrative expenses (378,839) (99,129) (477,968) Underwriting income (loss) $ (235,701) $ (89,816) $ (325,517) Net investment income 349,601 Net investment gains 129,133 Corporate expenses (101,822) Foreign exchange losses (81,069) Interest expense and financing costs (75,049) Reorganization expenses (7,881) Amortization of value of business acquired (5,139) Amortization of intangible assets (11,390) Income (loss) before income taxes and interest in income (loss) of equity method investments $ (129,133) Net losses and loss expenses ratio 73.8 % 76.4 % 75.1 % Acquisition cost ratio 20.1 % 22.6 % 21.3 % General and administrative expense ratio 16.5 % 4.8 % 13.2 % Combined ratio 110.4 % 103.8 % 109.6 % Goodwill and intangible assets $ 320,434 $ — $ 320,434 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) Underwriting-related 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 (loss) 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 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) Underwriting-related 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 (loss) 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 |
GROSS PREMIUMS WRITTEN BY GEOGRAPHICAL LOCATION OF SUBSIDIARIES | The following table presents gross premiums written by the geographical location of the Company's subsidiaries: Years ended December 31, 2020 2019 2018 Bermuda $ 602,432 $ 738,258 $ 606,452 Ireland 1,516,596 1,679,646 1,805,882 U.S. 3,398,108 3,090,547 2,811,537 Lloyd's of London 1,309,802 1,390,407 1,686,194 Gross premiums written $ 6,826,938 $ 6,898,858 $ 6,910,065 |
NET PREMIUMS EARNED BY SEGMENT AND LINE OF BUSINESS | The following table presents net premiums earned by segment and line of business: Years ended December 31, 2020 2019 2018 Insurance Property $ 605,650 $ 633,550 $ 796,945 Marine 293,746 281,764 300,944 Terrorism 47,378 47,345 49,150 Aviation 70,910 55,028 74,203 Credit and political risk 105,869 91,698 102,825 Professional lines 715,276 661,250 570,241 Liability 313,291 264,667 229,373 Accident and health 143,723 144,499 207,777 Discontinued lines - Novae 3,195 10,283 31,148 Total Insurance 2,299,038 2,190,084 2,362,606 Reinsurance Catastrophe 244,934 267,591 250,016 Property 256,244 311,625 317,038 Credit and surety 187,721 208,717 250,276 Professional lines 207,605 206,328 220,687 Motor 255,916 398,565 438,693 Liability 396,906 373,664 363,292 Engineering 60,521 63,899 67,932 Agriculture 73,696 188,925 176,435 Marine and aviation 53,516 59,209 35,570 Accident and health 333,996 319,619 299,813 Discontinued lines - Novae 1,216 (1,048) 9,137 Total Reinsurance 2,072,271 2,397,094 2,428,889 Total $ 4,371,309 $ 4,587,178 $ 4,791,495 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
SCHEDULE OF GOODWILL AND INTANGIBLE ASSETS | The table below provides details of goodwill and intangible assets related to the Company's insurance segment: Goodwill Intangible Intangible Total 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) Balance at December 31, 2020 Gross amount $ 97,092 $ 120,784 $ 394,604 $ 612,480 Accumulated amortization n/a n/a (275,846) (275,846) Accumulated translation adjustment 4,911 — — 4,911 102,003 120,784 118,758 341,545 Amortization n/a n/a (16,055) (16,055) Impairment charges (1,202) — — (1,202) $ 100,801 $ 120,784 $ 102,703 $ 324,288 n/a – not applicable |
SCHEDULE OF FINITE-LIVED INTANGIBLE ASSETS | The tables below provide details of the gross amount and accumulated amortization by category of VOBA and intangible assets: VOBA and intangible assets Balance At December 31, 2020 Gross amount Accumulated amortization Total U.S. state licenses $ 26,036 n/a $ 26,036 Customer relationships and customers lists - Ternian (1) 13,330 (7,665) 5,665 VOBA - Novae (2) 256,942 (253,088) 3,854 Syndicate capacity (2) 94,748 n/a 94,748 Coverholders (2) 63,565 (17,216) 46,349 Large brokers (2) 46,641 (10,106) 36,535 SME brokers (2) 14,126 (3,826) 10,300 $ 515,388 $ (291,901) $ 223,487 (1) On April 1, 2015, the Company completed its acquisition of Ternian Insurance Group LLC and recognized the definite life intangible assets detailed above. (2) On October 2, 2017, the Company acquired Novae and recognized finite lived intangible assets, including Value of Business Acquired ("VOBA"), distribution networks, and indefinite lived intangible assets related to Lloyd's syndicate capacity, all detailed above. VOBA and intangible assets Balance At December 31, 2019 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 (3) 9,700 (9,700) — Customer relationships and customers lists - Ternian 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 (3) On May 1, 2007, the Company acquired the assets and operations of Media/Professional Insurance (Media/Pro) and recognized the definite life intangible assets detailed above. |
SCHEDULE OF INDEFINITE-LIVED INTANGIBLE ASSETS | The tables below provide details of the gross amount and accumulated amortization by category of VOBA and intangible assets: VOBA and intangible assets Balance At December 31, 2020 Gross amount Accumulated amortization Total U.S. state licenses $ 26,036 n/a $ 26,036 Customer relationships and customers lists - Ternian (1) 13,330 (7,665) 5,665 VOBA - Novae (2) 256,942 (253,088) 3,854 Syndicate capacity (2) 94,748 n/a 94,748 Coverholders (2) 63,565 (17,216) 46,349 Large brokers (2) 46,641 (10,106) 36,535 SME brokers (2) 14,126 (3,826) 10,300 $ 515,388 $ (291,901) $ 223,487 (1) On April 1, 2015, the Company completed its acquisition of Ternian Insurance Group LLC and recognized the definite life intangible assets detailed above. (2) On October 2, 2017, the Company acquired Novae and recognized finite lived intangible assets, including Value of Business Acquired ("VOBA"), distribution networks, and indefinite lived intangible assets related to Lloyd's syndicate capacity, all detailed above. VOBA and intangible assets Balance At December 31, 2019 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 (3) 9,700 (9,700) — Customer relationships and customers lists - Ternian 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 (3) On May 1, 2007, the Company acquired the assets and operations of Media/Professional Insurance (Media/Pro) and recognized the definite life intangible assets detailed above. |
FUTURE AMORTIZATION EXPENSE | The table below provides details of estimated amortization expense of VOBA and intangible assets with a finite life: VOBA Intangible assets Total 2021 3,854 10,916 14,770 2022 — 10,916 10,916 2023 — 10,916 10,916 2024 — 10,916 10,916 2025 — 9,921 9,921 2026 and thereafter — 45,264 45,264 Total remaining amortization expense 3,854 98,849 102,703 Indefinite lived intangible assets — 120,784 120,784 Total intangible assets $ 3,854 $ 219,633 $ 223,487 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
AMORTIZED COST AND FAIR VALUES OF FIXED MATURITIES | The following table provides the amortized cost and fair values of the Company's fixed maturities classified as available for sale: Amortized Allowance for expected credit losses Gross Gross Fair At December 31, 2020 Fixed maturities U.S. government and agency $ 1,881,489 $ — $ 38,969 $ (1,759) $ 1,918,699 Non-U.S. government 632,875 — 38,826 (428) 671,273 Corporate debt 4,408,351 (303) 254,261 (6,358) 4,655,951 Agency RMBS (1) 1,244,727 — 42,170 (688) 1,286,209 CMBS (2) 1,268,273 — 87,598 (2,284) 1,353,587 Non-agency RMBS 136,198 (20) 4,604 (678) 140,104 ABS (3) 1,712,236 — 14,527 (6,685) 1,720,078 Municipals (4) 282,781 — 13,148 (31) 295,898 Total fixed maturities $ 11,566,930 $ (323) $ 494,103 $ (18,911) $ 12,041,799 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 (1) Residential mortgage-backed securities ("RMBS") originated by U.S. government-sponsored agencies. (2) Commercial mortgage-backed securities ("CMBS"). (3) Asset-backed securities ("ABS") include debt tranched securities collateralized primarily by auto loans, student loans, credit card receivables and collateralized loan obligations ("CLOs"). (4) Municipals include bonds issued by states, municipalities and political subdivisions. |
COST AND FAIR VALUE OF EQUITY SECURITIES | The following table provides the cost and fair values of the Company's equity securities: Cost Gross Gross Fair At December 31, 2020 Equity securities Common stocks $ 10,810 $ 689 $ (557) $ 10,942 Preferred stocks 6,301 1,767 — 8,068 Exchange-traded funds 147,794 74,314 (390) 221,718 Bond mutual funds 256,839 20,878 — 277,717 Total equity securities $ 421,744 $ 97,648 $ (947) $ 518,445 At December 31, 2019 Equity securities Common stocks $ 504 $ 77 $ (388) $ 193 Preferred stocks — — — — 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 |
CONTRACTUAL MATURITIES OF FIXED MATURITIES | The table below provides the contractual maturities of fixed maturities: Amortized Fair % of Total At December 31, 2020 Maturity Due in one year or less $ 436,287 $ 444,527 3.6 % Due after one year through five years 4,165,696 4,335,219 36.0 % Due after five years through ten years 2,344,859 2,489,050 20.7 % Due after ten years 258,654 273,025 2.3 % 7,205,496 7,541,821 62.6 % Agency RMBS 1,244,727 1,286,209 10.7 % CMBS 1,268,273 1,353,587 11.2 % Non-agency RMBS 136,198 140,104 1.2 % ABS 1,712,236 1,720,078 14.3 % Total $ 11,566,930 $ 12,041,799 100.0 % 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 % |
FIXED MATURITIES AND EQUITIES IN AN UNREALIZED LOSS POSITION | The following table summarizes fixed maturities in an unrealized loss position and the aggregate fair value and gross unrealized loss by length of time the security has continuously been in an unrealized loss position: 12 months or greater Less than 12 months Total Fair Unrealized Fair Unrealized Fair Unrealized At December 31, 2020 Fixed maturities U.S. government and agency $ — $ — $ 251,606 $ (1,759) $ 251,606 $ (1,759) Non-U.S. government 16,115 (262) 3,652 (166) 19,767 (428) Corporate debt 63,640 (2,244) 233,970 (4,114) 297,610 (6,358) Agency RMBS 6,580 (20) 78,672 (668) 85,252 (688) CMBS 19,736 (1,012) 70,656 (1,272) 90,392 (2,284) Non-agency RMBS 5,109 (598) 9,558 (80) 14,667 (678) ABS 325,436 (4,011) 360,402 (2,674) 685,838 (6,685) Municipals — — 11,881 (31) 11,881 (31) Total fixed maturities $ 436,616 $ (8,147) $ 1,020,397 $ (10,764) $ 1,457,013 $ (18,911) 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) |
MORTGAGE LOANS NET OF VALUATION ALLOWANCE | The following table provides details of the Company's mortgage loans held for investment: December 31, 2020 December 31, 2019 Carrying value % of Total Carrying value % of Total Mortgage loans held for investment: Commercial $ 593,290 100 % $ 432,748 100 % Total mortgage loans held for investment $ 593,290 100 % $ 432,748 100 % |
PORTFOLIO OF OTHER INVESTMENTS | The following table provides a summary of the Company's other investments, together with additional information relating to the liquidity of each category: Fair value Redemption frequency Redemption At December 31, 2020 Long/short equity funds $ 25,300 3 % Annually 60 days Multi-strategy funds 121,420 15 % Quarterly, Semi-annually 60-95 days Direct lending funds 272,131 33 % Quarterly (1) 90 days Private equity funds 124,706 15 % n/a n/a Real estate funds 164,250 20 % Quarterly (2) 45 days CLO-Equities 6,173 1 % n/a n/a Other privately held investments 70,011 8 % n/a n/a Overseas deposits 45,165 5 % n/a n/a Total other investments $ 829,156 100 % 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 % n/a – not applicable (1) Applies to one fund with a fair value of $38 million. (2) Applies to one fund with a fair value of $61 million. |
NET INVESTMENT INCOME | Net investment income was derived from the following sources: Year ended December 31, 2020 2019 2018 Fixed maturities $ 317,121 $ 384,053 $ 356,273 Other investments 16,059 60,038 48,959 Equity securities 9,328 10,434 10,077 Mortgage loans 15,432 14,712 13,566 Cash and cash equivalents 13,582 26,882 27,566 Short-term investments 2,749 7,053 9,365 Gross investment income 374,271 503,172 465,806 Investment expenses (24,670) (24,600) (27,299) Net investment income $ 349,601 $ 478,572 $ 438,507 |
NET REALIZED INVESTMENT GAINS (LOSSES) | The following table provides an analysis of net investment gains (losses): Year ended December 31, 2020 2019 2018 Gross realized investment gains Fixed maturities and short-term investments $ 186,726 $ 93,160 $ 46,067 Equity securities 25,648 3,449 20,435 Gross realized investment gains 212,374 96,609 66,502 Gross realized investment losses Fixed maturities and short-term investments (94,607) (56,515) (142,153) Equity securities (5,840) (323) (3,389) Gross realized investment losses (100,447) (56,838) (145,542) Allowance for expected credit losses (323) — — Impairment losses (1) (1,486) — — OTTI losses — (6,984) (9,733) Change in fair value of investment derivatives (2) (2,434) (1,823) 5,445 Net unrealized gains (losses) on equity securities 21,449 60,269 (66,890) Net investment gains (losses) $ 129,133 $ 91,233 $ (150,218) (1) Related to instances where the Company intends to sell securities or it is more likely than not that the Company will be required to sell securities before their anticipated recovery. (2) Refer to Note 7 'Derivative Instruments'. |
ALLOWANCE FOR CREDIT LOSS | The following table provides a reconciliation of the beginning and ending balances of the allowance for expected credit losses on fixed maturities classified as available for sale: Year ended December 31, 2020 2019 2018 Balance at beginning of period $ — $ — $ — Expected credit losses on securities where credit losses were not previously recognized 22,570 — — Additions (reductions) for expected credit losses on securities where credit losses were previously recognized (11,542) — — Impairments of securities which the Company intends to sell or more likely than not will be required to sell — — — Securities sold/redeemed/matured (10,705) — — Balance at end of period $ 323 $ — $ — |
OTTI RECOGNIZED IN EARNINGS BY ASSET CLASS | The following table summarizes the OTTI charge recognized in net income by asset class: Year ended December 31, 2020 2019 2018 Fixed maturities: Non-U.S. government $ — $ 90 $ 4,697 Corporate debt — 6,894 4,995 Non-agency CMBS — — 41 Total OTTI recognized in net income $ — $ 6,984 $ 9,733 |
RESTRICTED INVESTMENTS | The table below provides the fair values of the Company's restricted investments and cash: At December 31, 2020 2019 Collateral in Trust for inter-company agreements $ 1,153,157 $ 1,580,689 Collateral for secured letter of credit facility 434,845 473,187 Funds at Lloyd's 1,155,832 1,314,345 Collateral in Trust for third-party agreements 1,903,274 1,856,327 Securities on deposit or in trust with regulatory authorities 265,959 76,229 Total restricted investments $ 4,913,067 $ 5,300,777 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
FINANCIAL INSTRUMENTS MEASURED AT FAIR VALUE ON A RECURRING BASIS | The tables below present the financial instruments measured at fair value on a recurring basis for the periods indicated: Quoted prices in active markets Significant other observable Significant unobservable inputs (Level 3) Fair value based on NAV practical expedient Total fair value At December 31, 2020 Assets Fixed maturities U.S. government and agency $ 1,861,240 $ 57,459 $ — $ — $ 1,918,699 Non-U.S. government — 671,273 — — 671,273 Corporate debt — 4,653,447 2,504 — 4,655,951 Agency RMBS — 1,286,209 — — 1,286,209 CMBS — 1,351,847 1,740 — 1,353,587 Non-agency RMBS — 140,104 — — 140,104 ABS — 1,709,413 10,665 — 1,720,078 Municipals — 295,898 — — 295,898 1,861,240 10,165,650 14,909 — 12,041,799 Equity securities Common stocks 10,942 — — — 10,942 Preferred stocks 8,068 — — — 8,068 Exchange-traded funds 221,718 — — — 221,718 Bond mutual funds — 277,717 — — 277,717 240,728 277,717 — — 518,445 Other investments Hedge funds (1) — — — 146,720 146,720 Direct lending funds — — — 272,131 272,131 Private equity funds — — — 124,706 124,706 Real estate funds — — — 164,250 164,250 CLO-Equities — — 6,173 — 6,173 Other privately held investments — — 70,011 — 70,011 Overseas deposits — 45,165 — — 45,165 — 45,165 76,184 707,807 829,156 Short-term investments — 161,897 — — 161,897 Other assets Derivative instruments (refer to Note 7) — 18,875 — — 18,875 Total Assets $ 2,101,968 $ 10,669,304 $ 91,093 $ 707,807 $ 13,570,172 Liabilities Derivative instruments (refer to Note 7) $ — $ 2,364 $ 9,122 $ — $ 11,486 Cash settled awards (refer to Note 16) — 13,273 — — 13,273 Total Liabilities $ — $ 15,637 $ 9,122 $ — $ 24,759 (1) Includes Long/short equity and Multi-strategy funds. Quoted prices in active markets Significant other observable 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 Preferred stocks — — — — — 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 CLO-Equities — — 14,328 — 14,328 Other privately held investments — — 36,934 — 36,934 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 |
LEVEL 3 FAIR VALUE MEASUREMENT INPUTS | The following table quantifies the significant unobservable inputs used in estimating fair values at December 31, 2020 of investments classified as Level 3 in the fair value hierarchy: Fair value Valuation technique Unobservable input Range Weighted Other investments - CLO-Equities $ 6,173 Discounted cash flow Default rates 4.5% 4.5% Loss severity rate 50.0% 50.0% Collateral spreads 3.0% 3.0% Estimated maturity dates 5 years 5 years Other investments - Other privately $ 21,643 Discounted cash flow Discount rate 1.3% 1.3% Default rate 0.5% 0.5% Loss absorption yield 1.0% 1.0% Estimated maturity date 5 years 5 years Derivatives - Other underwriting- $ (9,122) Discounted cash flow Discount rate 0.4% 0.4% |
CHANGES IN LEVEL 3 FINANCIAL INSTRUMENTS MEASURED AT FAIR VALUE ON A RECURRING BASIS, ASSETS | The following table presents changes in Level 3 for financial instruments measured at fair value on a recurring basis: Opening Transfers Transfers Included in net income (1) Included in OCI (2) Purchases Sales Settlements/ Closing Change in unrealized gains/(losses) (3) Year ended December 31, 2020 Fixed maturities Corporate debt $ 2,297 $ — $ — $ — $ 207 $ — $ — $ — $ 2,504 $ — CMBS 5,235 — — — (11) — — (3,484) 1,740 — ABS 489 9,091 — — 116 969 — — 10,665 — 8,021 9,091 — — 312 969 — (3,484) 14,909 — Other investments CLO-Equities 14,328 — — (6,017) — — — (2,138) 6,173 (5,319) Other privately held investments 36,934 — — 6,040 — 27,037 — — 70,011 6,040 51,262 — — 23 — 27,037 — (2,138) 76,184 721 Total assets $ 59,283 $ 9,091 $ — $ 23 $ 312 $ 28,006 $ — $ (5,622) $ 91,093 $ 721 Other liabilities Derivative instruments 9,672 — — 9,421 — — — (9,971) 9,122 (550) Total liabilities $ 9,672 $ — $ — $ 9,421 $ — $ — $ — $ (9,971) $ 9,122 $ (550) 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 CLO-Equities 21,271 — — (199) — — — (6,744) 14,328 (199) Other privately held investments 44,518 — — 18,092 — 22,500 (48,176) — 36,934 5,150 65,789 — — 17,893 — 22,500 (48,176) (6,744) 51,262 4,951 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) (1) Realized gains (losses) on fixed maturities and realized and unrealized gains (losses) on other assets and other liabilities included in net income are included in net investment gains (losses). Realized and unrealized gains (losses) on other investments included in net income are included in net investment income. (2) Unrealized gains (losses) on fixed maturities are included in other comprehensive income ("OCI"). |
CHANGES IN LEVEL 3 FINANCIAL INSTRUMENTS MEASURED AT FAIR VALUE ON A RECURRING BASIS, LIABILITIES | The following table presents changes in Level 3 for financial instruments measured at fair value on a recurring basis: Opening Transfers Transfers Included in net income (1) Included in OCI (2) Purchases Sales Settlements/ Closing Change in unrealized gains/(losses) (3) Year ended December 31, 2020 Fixed maturities Corporate debt $ 2,297 $ — $ — $ — $ 207 $ — $ — $ — $ 2,504 $ — CMBS 5,235 — — — (11) — — (3,484) 1,740 — ABS 489 9,091 — — 116 969 — — 10,665 — 8,021 9,091 — — 312 969 — (3,484) 14,909 — Other investments CLO-Equities 14,328 — — (6,017) — — — (2,138) 6,173 (5,319) Other privately held investments 36,934 — — 6,040 — 27,037 — — 70,011 6,040 51,262 — — 23 — 27,037 — (2,138) 76,184 721 Total assets $ 59,283 $ 9,091 $ — $ 23 $ 312 $ 28,006 $ — $ (5,622) $ 91,093 $ 721 Other liabilities Derivative instruments 9,672 — — 9,421 — — — (9,971) 9,122 (550) Total liabilities $ 9,672 $ — $ — $ 9,421 $ — $ — $ — $ (9,971) $ 9,122 $ (550) 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 CLO-Equities 21,271 — — (199) — — — (6,744) 14,328 (199) Other privately held investments 44,518 — — 18,092 — 22,500 (48,176) — 36,934 5,150 65,789 — — 17,893 — 22,500 (48,176) (6,744) 51,262 4,951 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) (1) Realized gains (losses) on fixed maturities and realized and unrealized gains (losses) on other assets and other liabilities included in net income are included in net investment gains (losses). Realized and unrealized gains (losses) on other investments included in net income are included in net investment income. (2) Unrealized gains (losses) on fixed maturities are included in other comprehensive income ("OCI"). |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
LOCATION AND AMOUNTS OF DERIVATIVE FAIR VALUES ON THE CONSOLIDATED BALANCE SHEET | The following table provides the balance sheet classifications of derivatives recorded at fair value: December 31, 2020 December 31, 2019 Derivative Derivative asset fair value (1) Derivative liability fair value (1) Derivative Derivative asset fair value (1) Derivative liability fair value (1) Relating to investment portfolio: Foreign exchange forward contracts $ 105,781 $ 2 $ 2,364 $ 68,998 $ — $ 1,405 Relating to underwriting portfolio: Foreign exchange forward contracts 1,197,012 18,873 — 1,038,630 3,174 2,560 Other underwriting-related contracts 75,000 — 9,122 85,000 — 9,672 Total derivatives $ 18,875 $ 11,486 $ 3,174 $ 13,637 (1) Derivative assets and liabilities are classified within other assets and other liabilities in the consolidated balance sheets. |
RECONCILIATION OF GROSS DERIVATIVE ASSETS TO NET AMOUNTS PRESENTED IN BALANCE SHEETS | The following table provides a reconciliation of gross derivative assets and liabilities to the net amounts presented in the consolidated balance sheets, with the difference being attributable to the impact of master netting agreements: December 31, 2020 December 31, 2019 Gross amounts Gross amounts offset Net amounts (1) Gross amounts Gross amounts offset Net amounts (1) Derivative assets $ 27,765 $ (8,890) $ 18,875 $ 7,673 $ (4,499) $ 3,174 Derivative liabilities $ 20,376 $ (8,890) $ 11,486 $ 18,136 $ (4,499) $ 13,637 (1) Net asset and liability derivatives are classified within other assets and other liabilities in the consolidated balance sheets. |
RECONCILIATION OF GROSS DERIVATIVE LIABILITIES TO NET AMOUNTS PRESENTED IN BALANCE SHEETS | The following table provides a reconciliation of gross derivative assets and liabilities to the net amounts presented in the consolidated balance sheets, with the difference being attributable to the impact of master netting agreements: December 31, 2020 December 31, 2019 Gross amounts Gross amounts offset Net amounts (1) Gross amounts Gross amounts offset Net amounts (1) Derivative assets $ 27,765 $ (8,890) $ 18,875 $ 7,673 $ (4,499) $ 3,174 Derivative liabilities $ 20,376 $ (8,890) $ 11,486 $ 18,136 $ (4,499) $ 13,637 (1) Net asset and liability derivatives are classified within other assets and other liabilities in the consolidated balance sheets. |
TOTAL UNREALIZED AND REALIZED GAINS (LOSSES) ON DERIVATIVES NOT DESIGNATED AS HEDGES RECORDED IN EARNINGS | The following table provides the total unrealized and realized gains (losses) recognized in net income for derivatives not designated as hedges: Consolidated statement of operations line item that includes gain (loss) recognized Amount of gain (loss) recognized in 2020 2019 2018 Relating to investment portfolio: Foreign exchange forward contracts Net investment gains (losses) $ (2,434) $ 1,854 $ 3,446 Interest rate swaps Net investment gains (losses) — (3,677) 1,999 Relating to underwriting portfolio: Foreign exchange forward contracts Foreign exchange gains (losses) 44,166 (10,678) (3,509) Other underwriting-related contracts Other insurance related income (loss) (9,035) 1,789 2,384 Total $ 32,697 $ (10,712) $ 4,320 |
RESERVE FOR LOSSES AND LOSS E_2
RESERVE FOR LOSSES AND LOSS EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Insurance Loss Reserves [Abstract] | |
SCHEDULE OF THE LINES OF BUSINESS CATEGORIES AND THE EXPECTED CLAIM TAILS | The following tables map the Company's lines of business to reserve classes and the expected claim tails: 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 aviation X Accident and health X Discontinued lines - Novae X X X |
COMPONENTS OF RESERVE FOR LOSSES AND LOSS EXPENSES | Reserve for losses and loss expenses comprise the following: At December 31, 2020 2019 Reserve for reported losses and loss expenses $ 5,331,900 $ 4,860,916 Reserve for losses incurred but not reported 8,594,866 7,891,165 Reserve for losses and loss expenses $ 13,926,766 $ 12,752,081 |
RECONCILIATION OF BEGINNING AND ENDING GROSS RESERVE FOR LOSSES AND LOSS EXPENSES AND NET RESERVE FOR UNPAID LOSSES AND LOSS EXPENSES | The following table presents a reconciliation of the Company's beginning and ending gross reserves for losses and loss expenses and net reserves for unpaid losses and loss expenses: Year ended December 31, 2020 2019 2018 Gross reserve for losses and loss expenses, beginning of year $ 12,752,081 $ 12,280,769 $ 12,997,553 Less reinsurance recoverable on unpaid losses, beginning of year (3,877,756) (3,501,669) (3,159,514) Net reserve for unpaid losses and loss expenses, beginning of year 8,874,325 8,779,100 9,838,039 Net incurred losses and loss expenses related to: Current year 3,297,161 3,123,698 3,389,949 Prior years (15,909) (78,900) (199,662) 3,281,252 3,044,798 3,190,287 Net paid losses and loss expenses related to: Current year (571,442) (598,988) (724,199) Prior years (2,365,959) (2,371,637) (2,368,615) (2,937,401) (2,970,625) (3,092,814) Foreign exchange and other 211,949 21,052 (1,156,412) Net reserve for unpaid losses and loss expenses, end of year 9,430,125 8,874,325 8,779,100 Reinsurance recoverable on unpaid losses, end of year 4,496,641 3,877,756 3,501,669 Gross reserve for losses and loss expenses, end of year $ 13,926,766 $ 12,752,081 $ 12,280,769 |
NET PRIOR YEAR RESERVE DEVELOPMENT BY SEGMENT | The following table presents net prior year reserve development by segment: Favorable (Adverse) Favorable (Adverse) Favorable (Adverse) Insurance Reinsurance Total Year ended December 31, 2020 $ 8,937 $ 6,972 $ 15,909 Year ended December 31, 2019 53,302 25,598 78,900 Year ended December 31, 2018 92,806 106,856 199,662 |
NET INCURRED AND PAID CLAIMS DEVELOPMENT TABLES BY ACCIDENT YEAR | The following sections provide further details on net prior year reserve development by segment, reserving class and accident year. Insurance Segment : Favorable (Adverse) Favorable (Adverse) Favorable (Adverse) Years ended December 31, 2020 2019 2018 Property and other $ 46,791 $ 11,042 $ 64,781 Marine 16,780 33,260 17,913 Aviation 6,416 3,741 (2,938) Credit and political risk (745) 18,810 3,609 Professional lines (35,661) 11,721 31,687 Liability (24,644) (25,272) (22,246) Total $ 8,937 $ 53,302 $ 92,806 Reinsurance Segment : Favorable (Adverse) Favorable (Adverse) Favorable (Adverse) Years ended December 31, 2020 2019 2018 Property and other $ (5,935) $ (133,448) $ 6,012 Credit and surety 36,829 53,223 33,497 Professional lines (15,352) 3,668 21,310 Motor 21,086 70,872 22,932 Liability (29,656) 31,283 23,105 Total $ 6,972 $ 25,598 $ 106,856 Insurance property and other Incurred claims and allocated claim adjustment expenses, net of reinsurance At December 31, 2020 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 2011 unaudited 2012 unaudited 2013 unaudited 2014 unaudited 2015 unaudited 2016 unaudited 2017 unaudited 2018 unaudited 2019 unaudited 2020 2011 $ 347,569 $ 325,274 $ 304,702 $ 284,201 $ 281,155 $ 279,964 $ 280,395 $ 278,688 $ 277,792 $ 277,515 $ (231) 6,367 2012 393,170 403,254 385,068 364,667 360,525 354,801 353,971 343,934 343,619 (21) 29,942 2013 310,601 300,682 273,775 269,831 269,490 279,922 276,229 275,712 1,135 53,204 2014 362,684 357,885 347,227 331,142 330,011 328,404 323,736 4,334 62,371 2015 280,489 273,606 262,733 258,190 255,319 257,419 1,763 48,469 2016 355,771 384,230 375,260 362,103 356,016 3,427 93,792 2017 911,274 838,640 824,039 813,005 (5,501) 698,289 2018 742,601 775,861 754,741 10,217 731,142 2019 454,386 448,467 11,186 659,908 2020 733,794 308,515 524,539 Total $ 4,584,024 Insurance property and other Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2011 unaudited 2012 unaudited 2013 unaudited 2014 unaudited 2015 unaudited 2016 unaudited 2017 unaudited 2018 unaudited 2019 unaudited 2020 2011 $ 83,511 $ 191,823 $ 248,346 $ 270,636 $ 269,626 $ 269,423 $ 270,104 $ 270,546 $ 270,516 $ 270,507 2012 77,794 214,771 279,588 302,638 310,171 315,391 315,466 317,574 317,803 2013 76,179 199,930 238,808 249,852 260,895 263,930 265,749 269,598 2014 133,451 261,155 308,010 315,212 319,414 320,597 317,306 2015 100,483 204,862 229,901 244,205 244,916 251,758 2016 126,232 294,777 335,173 343,839 345,188 2017 256,136 634,649 751,394 781,152 2018 292,977 592,507 693,287 2019 197,703 330,268 2020 219,395 Total 3,796,262 All outstanding liabilities before 2011, net of reinsurance 7,141 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 794,903 Insurance marine Incurred claims and allocated claim adjustment expenses, net of reinsurance At December 31, 2020 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 2011 unaudited 2012 unaudited 2013 unaudited 2014 unaudited 2015 unaudited 2016 unaudited 2017 unaudited 2018 unaudited 2019 unaudited 2020 2011 $ 90,960 $ 79,215 $ 73,257 $ 66,351 $ 66,320 $ 66,560 $ 68,860 $ 69,555 $ 68,861 $ 67,054 $ (1,250) 3,830 2012 89,889 83,431 69,484 71,663 72,708 75,326 73,581 63,067 66,026 7,249 4,135 2013 80,641 102,110 97,660 98,759 83,984 83,594 82,622 81,774 846 2,354 2014 59,786 44,936 49,238 44,979 46,705 48,470 42,221 (2,231) 2,166 2015 160,793 142,383 138,704 131,483 118,861 123,836 7,507 2,231 2016 86,464 78,953 76,805 71,694 70,491 3,300 2,857 2017 207,378 172,077 160,919 158,812 13,932 4,005 2018 186,550 194,257 183,415 34,579 4,370 2019 170,489 168,318 47,064 4,475 2020 170,763 107,624 3,558 Total $ 1,132,710 Insurance marine Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2011 unaudited 2012 unaudited 2013 unaudited 2014 unaudited 2015 unaudited 2016 unaudited 2017 unaudited 2018 unaudited 2019 unaudited 2020 2011 $ 26,467 $ 44,483 $ 55,329 $ 58,465 $ 60,340 $ 61,063 $ 65,512 $ 67,560 $ 68,051 $ 68,022 2012 10,752 38,820 45,197 50,028 50,865 53,309 55,387 56,524 56,689 2013 19,577 44,931 56,126 64,497 67,196 78,245 78,396 79,683 2014 6,365 15,418 27,529 27,462 36,681 41,788 42,945 2015 21,467 55,425 109,431 112,390 113,818 115,391 2016 12,498 31,890 57,552 63,829 64,645 2017 14,634 68,709 92,848 117,253 2018 27,218 87,150 117,629 2019 36,354 76,175 2020 38,433 Total 776,865 All outstanding liabilities before 2011, net of reinsurance 6,786 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 362,631 Insurance aviation Incurred claims and allocated claim adjustment expenses, net of reinsurance At December 31, 2020 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 2011 unaudited 2012 unaudited 2013 unaudited 2014 unaudited 2015 unaudited 2016 unaudited 2017 unaudited 2018 unaudited 2019 unaudited 2020 2011 $ 17,727 $ 15,407 $ 12,799 $ 9,576 $ 8,447 $ 7,301 $ 7,259 $ 7,217 $ 6,976 $ 6,582 $ 56 4,203 2012 12,808 10,705 10,832 8,752 7,804 7,747 7,635 7,428 7,346 59 2,859 2013 15,657 16,349 15,234 15,278 15,615 15,502 16,793 16,700 149 3,020 2014 20,438 23,050 24,373 21,818 21,876 19,118 17,370 58 3,534 2015 29,796 28,534 29,877 29,613 27,557 28,038 86 4,155 2016 29,194 33,553 33,728 31,796 32,525 812 4,091 2017 56,102 62,643 67,644 70,029 (1,046) 4,347 2018 58,340 64,250 62,696 3,262 4,405 2019 44,653 42,786 5,387 2,785 2020 37,092 22,625 1,297 Total $ 321,164 Insurance aviation Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2011 unaudited 2012 unaudited 2013 unaudited 2014 unaudited 2015 unaudited 2016 unaudited 2017 unaudited 2018 unaudited 2019 unaudited 2020 2011 $ 639 $ 2,834 $ 4,527 $ 5,047 $ 5,584 $ 5,836 $ 6,057 $ 6,199 $ 6,244 $ 6,252 2012 958 2,872 4,166 5,966 6,863 7,087 7,201 7,136 7,134 2013 4,402 7,339 9,767 11,474 13,585 14,195 14,516 15,976 2014 3,990 8,035 11,711 13,871 14,509 14,874 15,044 2015 8,092 16,182 20,990 23,253 24,716 26,026 2016 10,424 19,310 26,311 27,879 29,117 2017 21,458 40,811 51,512 59,895 2018 21,544 40,713 48,088 2019 18,465 29,808 2020 6,311 Total 243,651 All outstanding liabilities before 2011, net of reinsurance 6,511 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 84,024 Insurance credit and political risk Incurred claims and allocated claim adjustment expenses, net of reinsurance At December 31, 2020 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 2011 unaudited 2012 unaudited 2013 unaudited 2014 unaudited 2015 unaudited 2016 unaudited 2017 unaudited 2018 unaudited 2019 unaudited 2020 2011 $ 58,154 $ 48,665 $ 47,706 $ 48,361 $ 48,333 $ 45,036 $ 33,609 $ 27,904 $ 27,904 $ 27,754 $ 118 4 2012 32,602 15,672 12,435 12,447 10,323 47 199 199 199 155 4 2013 26,439 25,684 9,759 9,880 14,942 14,067 12,377 12,739 4,432 2 2014 38,825 70,713 67,109 68,324 69,589 71,275 70,747 2,123 6 2015 30,329 30,368 27,524 26,012 25,930 24,851 1,542 2 2016 47,736 43,746 41,256 41,826 25,612 2,061 1 2017 48,086 33,524 26,552 18,744 8,163 3 2018 45,047 34,116 32,740 12,279 1 2019 51,638 80,181 23,821 14 2020 60,501 48,752 24 Total $ 354,068 Insurance credit and political risk Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2011 unaudited 2012 unaudited 2013 unaudited 2014 unaudited 2015 unaudited 2016 unaudited 2017 unaudited 2018 unaudited 2019 unaudited 2020 2011 $ 32,788 $ 37,205 $ 27,636 $ 27,636 $ 27,636 $ 27,636 $ 27,636 $ 27,636 $ 27,636 $ 27,636 2012 — — — — 40 42 44 44 44 2013 745 2,235 3,726 5,216 11,769 13,828 13,828 13,828 2014 1,924 39,952 61,108 57,858 57,858 64,051 70,224 2015 — 23,309 23,309 23,309 23,309 23,309 2016 — 23,551 23,551 23,551 23,551 2017 396 4,305 9,615 12,103 2018 5,751 14,095 16,152 2019 16,260 46,797 2020 9,823 Total 243,467 All outstanding liabilities before 2011, net of reinsurance (3,957) Liabilities for claims and claim adjustment expenses, net of reinsurance $ 106,644 Insurance professional lines Incurred claims and allocated claim adjustment expenses, net of reinsurance At December 31, 2020 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 2011 unaudited 2012 unaudited 2013 unaudited 2014 unaudited 2015 unaudited 2016 unaudited 2017 unaudited 2018 unaudited 2019 unaudited 2020 2011 $ 314,835 $ 316,639 $ 335,265 $ 327,971 $ 331,903 $ 344,964 $ 353,336 $ 353,862 $ 351,191 $ 345,862 $ 22,156 7,239 2012 330,010 377,296 378,793 377,895 365,291 367,369 355,893 353,860 335,671 22,818 8,334 2013 385,460 399,136 400,434 367,072 356,643 358,938 336,933 340,078 41,955 9,457 2014 414,720 413,840 423,998 394,748 374,397 356,930 350,182 63,136 9,825 2015 379,378 379,036 384,477 359,619 346,488 329,502 54,530 10,493 2016 351,055 353,679 360,116 361,799 372,198 76,612 11,836 2017 396,543 403,257 439,134 435,827 154,318 13,670 2018 365,577 378,822 432,338 196,909 16,453 2019 407,043 429,729 248,218 16,369 2020 439,054 384,984 9,284 Total $ 3,810,441 Insurance professional lines Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2011 unaudited 2012 unaudited 2013 unaudited 2014 unaudited 2015 unaudited 2016 unaudited 2017 unaudited 2018 unaudited 2019 unaudited 2020 2011 $ 7,464 $ 33,058 $ 74,932 $ 109,183 $ 166,417 $ 239,092 $ 284,246 $ 295,434 $ 303,147 $ 318,439 2012 7,830 41,586 100,608 185,091 231,960 255,108 274,615 282,970 299,719 2013 17,732 73,347 130,341 176,846 214,481 244,566 265,346 278,086 2014 23,616 71,224 131,018 193,659 225,591 244,832 254,655 2015 20,376 67,994 138,369 170,331 204,480 243,519 2016 15,924 71,316 147,958 193,151 235,346 2017 21,039 72,501 140,047 207,157 2018 21,346 83,623 156,052 2019 28,265 99,594 2020 26,489 Total 2,119,056 All outstanding liabilities before 2011, net of reinsurance 94,767 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 1,786,152 Insurance liability Incurred claims and allocated claim adjustment expenses, net of reinsurance At December 31, 2020 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 2011 unaudited 2012 unaudited 2013 unaudited 2014 unaudited 2015 unaudited 2016 unaudited 2017 unaudited 2018 unaudited 2019 unaudited 2020 2011 $ 72,584 $ 75,329 $ 83,925 $ 87,771 $ 85,792 $ 84,079 $ 82,313 $ 82,658 $ 85,037 $ 85,085 $ 12,780 3,691 2012 70,883 71,711 74,136 71,475 68,659 75,698 72,728 67,239 64,543 14,803 3,312 2013 93,238 95,315 95,181 88,248 93,688 95,989 91,949 89,908 11,899 3,693 2014 107,161 124,368 129,828 130,688 132,034 131,490 132,596 18,701 5,087 2015 128,438 127,423 137,718 165,202 182,959 188,296 34,876 6,351 2016 124,331 130,249 129,069 127,691 120,442 36,430 7,262 2017 167,648 167,673 183,746 200,362 47,636 8,542 2018 169,557 167,564 190,741 78,563 8,255 2019 192,320 193,686 109,765 7,119 2020 225,025 204,825 3,977 Total $ 1,490,684 Insurance liability Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2011 unaudited 2012 unaudited 2013 unaudited 2014 unaudited 2015 unaudited 2016 unaudited 2017 unaudited 2018 unaudited 2019 unaudited 2020 2011 $ 2,761 $ 10,540 $ 20,190 $ 38,377 $ 46,074 $ 54,996 $ 60,261 $ 62,151 $ 67,114 $ 72,023 2012 1,631 5,515 15,412 30,146 37,140 42,741 46,541 48,035 48,317 2013 2,364 23,287 33,326 42,056 60,011 66,970 71,989 73,320 2014 1,419 18,665 49,861 71,609 84,389 93,589 103,063 2015 5,440 22,441 39,718 92,753 120,357 141,062 2016 6,333 23,326 36,404 56,497 66,437 2017 5,481 29,687 59,432 116,232 2018 9,554 35,056 72,604 2019 7,900 40,047 2020 8,156 Total 741,261 All outstanding liabilities before 2011, net of reinsurance 53,506 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 802,929 Reinsurance property and other Incurred claims and allocated claim adjustment expenses, net of reinsurance At December 31, 2020 For the years ended December 31, Total of incurred-but-not-reported liabilities plus expected development on reported claims Accident year 2011 unaudited 2012 unaudited 2013 unaudited 2014 unaudited 2015 unaudited 2016 unaudited 2017 unaudited 2018 unaudited 2019 unaudited 2020 2011 $ 1,147,558 $ 1,156,022 $ 1,156,008 $ 1,113,395 $ 1,096,469 $ 1,070,969 $ 1,069,295 $ 1,070,875 $ 1,072,109 $ 1,068,938 $ 4,016 2012 558,114 526,700 511,157 480,467 464,567 459,625 461,000 457,777 457,372 747 2013 583,687 567,292 536,423 516,164 510,134 509,582 506,213 505,548 738 2014 544,212 565,279 539,285 526,767 524,785 524,099 521,230 39,729 2015 481,328 470,515 465,427 459,819 455,873 461,382 6,756 2016 623,624 644,393 630,447 626,868 628,910 2,351 2017 1,101,428 1,080,866 1,098,312 1,106,201 47,451 2018 889,102 1,020,689 1,025,683 68,161 2019 966,716 977,194 183,064 2020 855,632 442,418 Total $ 7,608,090 Reinsurance property and other Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2011 unaudited 2012 unaudited 2013 unaudited 2014 unaudited 2015 unaudited 2016 unaudited 2017 unaudited 2018 unaudited 2019 unaudited 2020 2011 $ 261,198 $ 605,668 $ 817,211 $ 919,965 $ 950,247 $ 1,024,187 $ 1,039,375 $ 1,042,203 $ 1,048,430 $ 1,052,937 2012 123,594 296,496 369,726 392,448 407,161 416,897 418,995 431,573 437,895 2013 107,883 328,273 446,221 477,155 487,161 488,626 489,337 494,554 2014 102,394 355,383 438,269 456,267 462,510 467,589 469,836 2015 71,438 268,037 372,981 405,736 418,506 429,278 2016 128,439 381,965 527,359 570,973 592,463 2017 251,905 720,708 860,241 929,367 2018 196,512 654,299 798,684 2019 161,854 593,715 2020 184,340 Total 5,983,069 All outstanding liabilities before 2011, net of reinsurance 14,996 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 1,640,017 Reinsurance credit and surety Incurred claims and allocated claim adjustment expenses, net of reinsurance At December 31, 2020 For the years ended December 31, Total of incurred-but-not-reported liabilities plus expected development on reported claims Accident year 2011 unaudited 2012 unaudited 2013 unaudited 2014 unaudited 2015 unaudited 2016 unaudited 2017 unaudited 2018 unaudited 2019 unaudited 2020 2011 $ 124,676 $ 113,314 $ 111,684 $ 119,067 $ 117,020 $ 108,220 $ 106,414 $ 105,776 $ 102,612 $ 100,503 $ 1,102 2012 164,496 154,131 156,952 153,928 145,254 136,944 133,199 130,049 127,775 2,141 2013 168,742 158,105 149,059 145,059 140,569 128,951 128,982 131,791 2,600 2014 139,551 140,462 147,688 143,931 132,014 130,638 126,854 3,602 2015 164,357 172,064 166,901 162,359 142,908 143,946 4,697 2016 145,370 145,838 153,816 127,556 119,640 3,335 2017 142,334 137,372 131,559 122,789 4,399 2018 114,691 125,256 120,639 30,189 2019 77,203 72,559 17,807 2020 77,143 39,026 Total $ 1,143,639 Reinsurance credit and surety Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2011 unaudited 2012 unaudited 2013 unaudited 2014 unaudited 2015 unaudited 2016 unaudited 2017 unaudited 2018 unaudited 2019 unaudited 2020 2011 $ 22,714 $ 56,811 $ 75,122 $ 83,199 $ 87,860 $ 90,181 $ 92,557 $ 94,208 $ 95,042 $ 95,734 2012 50,749 88,745 103,866 109,765 113,340 115,187 116,559 118,514 118,948 2013 32,786 79,432 94,952 101,765 109,528 111,532 116,501 118,730 2014 35,910 63,361 89,356 98,712 106,341 110,768 111,316 2015 33,105 84,626 103,810 121,482 123,365 127,130 2016 42,410 75,646 95,624 105,444 106,658 2017 37,531 76,621 94,020 106,016 2018 39,333 71,157 76,834 2019 19,535 33,521 2020 25,366 Total 920,253 All outstanding liabilities before 2011, net of reinsurance 20,223 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 243,609 Reinsurance professional lines Incurred claims and allocated claim adjustment expenses, net of reinsurance At December 31, 2020 For the years ended December 31, Total of incurred-but-not-reported liabilities plus expected development on reported claims Accident year 2011 unaudited 2012 unaudited 2013 unaudited 2014 unaudited 2015 unaudited 2016 unaudited 2017 unaudited 2018 unaudited 2019 unaudited 2020 2011 $ 202,330 $ 202,548 $ 203,632 $ 212,362 $ 209,993 $ 209,133 $ 201,175 $ 178,046 $ 167,553 $ 163,620 $ 8,396 2012 210,543 217,148 222,578 224,912 223,661 213,805 215,159 207,936 204,530 10,839 2013 210,173 215,431 216,716 215,064 214,668 207,425 183,035 170,614 17,670 2014 220,070 220,132 220,120 220,167 234,567 231,153 230,034 21,710 2015 212,683 213,076 215,362 226,092 233,056 230,331 37,004 2016 195,753 196,922 200,808 229,187 257,160 55,800 2017 156,074 157,025 163,474 180,501 64,159 2018 148,348 151,299 158,552 86,571 2019 141,702 142,176 101,309 2020 141,457 123,152 Total $ 1,878,975 Reinsurance professional lines Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2011 unaudited 2012 unaudited 2013 unaudited 2014 unaudited 2015 unaudited 2016 unaudited 2017 unaudited 2018 unaudited 2019 unaudited 2020 2011 $ 1,510 $ 11,836 $ 30,342 $ 57,404 $ 85,065 $ 103,322 $ 120,088 $ 130,411 $ 136,934 $ 138,436 2012 780 10,453 29,747 53,827 86,240 107,641 132,392 146,517 156,191 2013 1,069 12,132 30,676 65,218 81,967 105,398 123,927 129,296 2014 2,020 13,089 48,957 74,799 109,581 147,649 159,457 2015 3,134 13,507 41,600 79,330 112,228 132,417 2016 1,786 20,646 52,820 95,727 125,847 2017 2,815 15,082 40,082 63,183 2018 272 2,702 31,594 2019 377 13,843 2020 3,824 Total 954,088 All outstanding liabilities before 2011, net of reinsurance 65,680 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 990,567 Reinsurance motor Incurred claims and allocated claim adjustment expenses, net of reinsurance At December 31, 2020 For the years ended December 31, Total of incurred-but-not-reported liabilities plus expected development on reported claims Accident year 2011 unaudited 2012 unaudited 2013 unaudited 2014 unaudited 2015 unaudited 2016 unaudited 2017 unaudited 2018 unaudited 2019 unaudited 2020 2011 $ 164,847 $ 169,341 $ 173,561 $ 179,943 $ 176,048 $ 166,869 $ 155,648 $ 150,105 $ 142,017 $ 139,182 $ 17,768 2012 188,256 179,151 166,747 158,734 153,524 143,492 140,251 131,573 131,937 13,920 2013 172,316 171,275 158,838 148,804 145,148 141,827 132,624 129,238 12,486 2014 192,457 196,133 191,121 187,883 183,197 179,646 175,871 6,713 2015 233,605 231,712 235,796 237,299 225,413 223,532 11,590 2016 257,429 279,115 281,659 270,554 261,473 11,999 2017 379,810 396,370 377,292 378,976 37,506 2018 375,513 378,515 391,410 55,538 2019 354,221 354,568 79,778 2020 221,276 152,472 Total $ 2,407,463 Reinsurance motor Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2011 unaudited 2012 unaudited 2013 unaudited 2014 unaudited 2015 unaudited 2016 unaudited 2017 unaudited 2018 unaudited 2019 unaudited 2020 2011 $ 24,346 $ 49,721 $ 65,351 $ 76,441 $ 83,615 $ 89,952 $ 94,893 $ 95,946 $ 98,020 $ 100,394 2012 29,851 55,800 71,305 81,695 88,535 92,812 95,269 96,508 98,316 2013 34,780 56,692 71,790 82,510 88,589 94,498 97,715 100,213 2014 44,432 78,589 99,642 108,374 119,252 129,566 139,456 2015 59,120 98,431 120,135 138,317 155,110 169,838 2016 62,171 110,605 136,449 155,493 175,311 2017 73,759 141,599 174,770 209,888 2018 85,701 150,276 200,801 2019 91,189 159,461 2020 25,631 Total 1,379,309 All outstanding liabilities before 2011, net of reinsurance 233,087 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 1,261,241 Reinsurance liability Incurred claims and allocated claim adjustment expenses, net of reinsurance At December 31, 2020 For the years ended December 31, Total of incurred-but-not-reported liabilities plus expected development on reported claims Accident year 2011 unaudited 2012 unaudited 2013 unaudited 2014 unaudited 2015 unaudited 2016 unaudited 2017 unaudited 2018 unaudited 2019 unaudited 2020 2011 $ 174,639 $ 174,227 $ 175,605 $ 193,629 $ 200,328 $ 197,061 $ 196,289 $ 194,372 $ 191,594 $ 193,320 $ 6,656 2012 168,766 164,844 169,091 173,932 175,105 172,431 165,296 159,163 161,267 10,642 2013 173,637 177,377 184,048 186,062 185,681 178,529 157,813 156,342 16,314 2014 201,352 204,684 206,463 202,487 201,313 199,173 189,296 28,929 2015 216,431 216,838 217,784 217,535 215,250 215,178 48,999 2016 242,579 248,194 253,506 256,767 267,235 73,124 2017 278,204 273,664 281,677 290,621 95,966 2018 267,162 272,102 277,824 127,342 2019 265,317 275,090 186,427 2020 283,901 239,574 Total $ 2,310,074 Reinsurance liability Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2011 unaudited 2012 unaudited 2013 unaudited 2014 unaudited 2015 unaudited 2016 unaudited 2017 unaudited 2018 unaudited 2019 unaudited 2020 2011 $ 5,202 $ 21,305 $ 40,027 $ 70,339 $ 92,760 $ 112,649 $ 123,781 $ 136,200 $ 142,173 $ 150,790 2012 3,545 12,812 28,426 58,881 78,405 101,391 115,874 126,298 134,789 2013 5,977 22,262 52,364 69,100 88,334 102,678 113,217 123,774 2014 7,112 28,700 48,503 70,400 89,760 110,511 131,002 2015 7,274 27,476 54,640 81,010 109,349 131,327 2016 11,886 37,831 69,903 112,434 143,917 2017 12,448 42,218 78,830 121,535 2018 19,369 50,223 85,671 2019 19,334 45,511 2020 16,948 Total 1,085,264 All outstanding liabilities before 2011, net of reinsurance 95,411 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 1,320,221 |
AVERAGE ANNUAL PERCENTAGE PAYOUT OF INCURRED CLAIMS BY AGE, NET OF REINSURANCE | 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 34.0% 40.8% 14.6% 4.7% 1.3% 1.1% —% 0.7% 0.1% —% 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 19.8% 29.7% 22.5% 7.0% 5.3% 6.3% 3.2% 2.1% 0.5% —% 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 25.8% 26.8% 18.1% 11.4% 7.6% 3.5% 2.0% 3.3% 0.4% 0.1% 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 18.3% 39.1% 5.2% 2.9% 11.9% 5.2% 2.4% —% —% —% 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 4.9% 13.3% 17.2% 14.8% 12.1% 10.8% 7.0% 3.1% 3.6% 4.4% 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 3.3% 13.0% 14.5% 20.5% 12.1% 9.0% 6.2% 2.0% 3.1% 5.8% 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 20.8% 41.8% 18.4% 6.3% 2.6% 2.5% 0.6% 1.4% 1.0% 0.4% 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 29.7% 29.1% 13.9% 7.9% 3.6% 2.3% 1.9% 1.6% 0.6% 0.7% 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 1.0% 5.8% 13.0% 15.1% 13.9% 12.1% 9.6% 5.4% 4.4% 0.9% 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 22.1% 18.2% 11.0% 7.7% 6.1% 5.0% 3.4% 1.2% 1.5% 1.7% 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 4.5% 9.5% 12.4% 14.3% 11.9% 11.0% 8.1% 6.6% 4.2% 4.5% |
RECONCILIATION OF DEVELOPMENT TABLES TO CONSOLIDATED BALANCE SHEET | The following table reconciles the reserve for losses and loss expenses at December 31, 2020, included in the loss development tables to the reserve for losses and loss expenses reported in the consolidated balance sheet: Reconciliation of the disclosure of incurred and paid claims development to the liability At December 31, 2020 Net outstanding liabilities Reinsurance recoverable on unpaid claims Gross outstanding liabilities Insurance segment Property and other $ 794,903 $ 508,225 $ 1,303,128 Marine 362,631 162,396 525,027 Aviation 84,024 64,252 148,276 Credit and political risk 106,644 51,667 158,311 Professional lines 1,786,152 1,227,183 3,013,335 Liability 802,929 1,182,644 1,985,573 Total insurance segment 3,937,283 3,196,367 7,133,650 Reinsurance segment Property and other 1,640,017 497,211 2,137,228 Credit and surety 243,609 70,143 313,752 Professional lines 990,567 186,245 1,176,812 Motor 1,261,241 228,453 1,489,694 Liability 1,320,221 318,222 1,638,443 Total reinsurance segment 5,455,655 1,300,274 6,755,929 Total $ 9,392,938 $ 4,496,641 13,889,579 Unallocated claims adjustment expenses 140,245 Foreign exchange and other (1) 49,072 (Ceded)/assumed reserves related to retroactive transactions (152,130) Total liability for unpaid claims and claims adjustment expense $ 13,926,766 (1) Non-U.S. dollar denominated loss data is converted to U.S dollar at the rates of exchange in effect at the balance sheet date 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 consolidated balance sheets are also remeasured using rates of exchange in effect at the balance sheet date. |
REINSURANCE (Tables)
REINSURANCE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Reinsurance Disclosures [Abstract] | |
BREAKDOWN OF GROSS AND NET PREMIUMS WRITTEN AND EARNED | The following table presents gross and net premiums written and earned: Year ended December 31, 2020 2019 2018 Premiums Premiums Premiums Premiums Premiums Premiums Gross $ 6,826,938 $ 6,768,733 $ 6,898,858 $ 6,910,677 $ 6,910,065 $ 6,882,217 Ceded (2,490,529) (2,397,424) (2,409,243) (2,323,499) (2,251,103) (2,090,722) Net $ 4,336,409 $ 4,371,309 $ 4,489,615 $ 4,587,178 $ 4,658,962 $ 4,791,495 |
DEBT AND FINANCING ARRANGEMEN_2
DEBT AND FINANCING ARRANGEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
SCHEDULE OF DEBT | The following table summarizes the Company's debt: Year ended December 31, 2020 2019 5.875% Senior Notes (1) $ — $ 499,687 5.150% Senior Notes 246,559 246,491 4.000% Senior Notes 347,324 346,997 3.900% Senior Notes 295,748 295,339 Junior Subordinated Notes 420,064 419,643 Total Debt $ 1,309,695 $ 1,808,157 (1) On June 1, 2020, AXIS Specialty Finance LLC, a 100% owned finance subsidiary, repaid $500 million aggregate principal amount of 5.875% Senior Notes at their stated maturity. The tables below provide the key terms of the Company's debt: Description Issuance Date Aggregate Principal Issue Price Net Proceeds Maturity Date 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 5.150% 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. |
SCHEDULED DEBT MATURITY | The following table provides the scheduled maturity of the Company's debt obligations at December 31, 2020: Year ended December 31, 2021 — 2022 — 2023 — 2024 — 2025 — After 2025 1,325,000 Unamortized discount and debt issuance expenses (15,305) Total senior notes and notes payable $ 1,309,695 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
SUMMARY OF LEASE EXPENSE AND RELATED CASH FLOWS | The following table presents the Company’s total lease expense and the cash flows arising from lease transactions: Year ended Year ended December 31, 2020 December 31, 2019 Lease cost: Operating lease expense $ 24,726 $ 27,549 Short-term lease expense (1) 299 1,132 Sublease income (2) (3,578) (1,144) Total lease expense $ 21,447 $ 27,537 Other information: Operating cash outflows from operating leases $ 20,452 $ 25,004 Right-of-use assets obtained in exchange for new operating lease liabilities $ 36,742 $ — Weighted-average remaining lease term - operating leases (3) 10.2 years 9.0 years Weighted-average discount rate - operating lease (4) 4.2 % 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 properties in New York and London. (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 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. |
MATURITY SCHEDULE AND MINIMUM LEASE PAYMENTS | The following table presents the scheduled maturity of the Company's operating lease liabilities at December 31, 2020: Expected Year ended December 31, Cash Flows 2021 $ 22,817 2022 23,598 2023 20,190 2024 14,478 2025 13,849 Later years 78,987 Discount (33,656) Total discounted operating lease liabilities $ 140,263 On February 1, 2020, the commencement date, the Company reflected a 15 year lease for a new office property in Alpharetta, Georgia in the Company's consolidated balance sheet. Consequently, this lease is also reflected in the maturity table above. The total contractual lease costs over the 15 year lease is $40 million. The following table presents the scheduled maturity of the Company's operating lease liabilities at December 31, 2019: Year ended December 31, 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 |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
BASIC AND DILUTED EARNINGS PER COMMON SHARE | The following table presents a comparison of earnings (loss) per common share and earnings (loss) per diluted common share: At and year ended December 31, 2020 2019 2018 Earnings (loss) per common share Net income (loss) $ (120,424) $ 323,473 $ 43,021 Less: Preferred share dividends 30,250 41,112 42,625 Net income (loss) available (attributable) to common shareholders $ (150,674) $ 282,361 $ 396 Weighted average common shares outstanding 84,262 83,894 83,501 Earnings (loss) per common share $ (1.79) $ 3.37 $ — Earnings (loss) per diluted common share Net income (loss) available (attributable) to common shareholders $ (150,674) $ 282,361 $ 396 Weighted average common shares outstanding 84,262 83,894 83,501 Share-based compensation plans (1) — 579 506 Weighted average diluted common shares outstanding 84,262 84,473 84,007 Earnings (loss) per diluted common share $ (1.79) $ 3.34 $ — Weighted average anti-dilutive shares excluded from the dilutive computation 922 154 245 (1) Due to the net loss recognized for the year ended December 31, 2020, the share equivalents were anti-dilutive. |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
COMMON SHARES ISSUED AND OUTSTANDING | The following table presents changes in common shares issued and outstanding: Year ended December 31, 2020 2019 2018 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 (92,621) (92,994) (93,419) Shares repurchased (194) (176) (200) Shares reissued 588 549 625 Total treasury shares at end of year (92,227) (92,621) (92,994) Total shares outstanding 84,353 83,959 83,586 |
SHARE REPURCHASES | The following table presents common shares repurchased from shares held in Treasury: Year ended December 31, 2020 2019 2018 In the open market: Total shares — — — Total cost $ — $ — $ — Average price per share (1) $ — $ — $ — From employees: (2) Total shares 194 176 200 Total cost $ 10,382 $ 10,165 $ 10,080 Average price per share (1) $ 53.43 $ 57.66 $ 50.40 Total shares repurchased: Total shares 194 176 200 Total cost $ 10,382 $ 10,165 $ 10,080 Average price per share (1) $ 53.43 $ 57.66 $ 50.40 (1) Calculated using whole numbers. |
SUMMARY OF DIVIDENDS DECLARED AND PAID | The following table presents dividends declared and paid related to the Company's common and preferred shares: Per share data Dividends declared Dividends paid in year of declaration Dividends paid in year following declaration 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) $ 1.21 $ 1.03 $ 0.18 Series E preferred shares $ 137.50 $ 103.13 $ 34.38 Year ended December 31, 2020 Common shares $ 1.65 $ 1.23 $ 0.42 Series E preferred shares $ 137.50 $ 103.13 $ 34.38 (1) On January 17, 2020, the Company redeemed all 9,000,000 Series D preferred shares, for an aggregate liquidation preference of $225 million. The final dividend on the Series D preferred shares was declared in 2019. |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
RECONCILIATION OF BEGINNING AND ENDING BALANCE OF NONVESTED RESTRICTED STOCK (INCLUDING RSUS) TO BE SETTLED IN SHARES AND CASH | The following table provides an activity summary of the Company's share-settled restricted stock units: Share-Settled Performance Share-Settled Service Number of Weighted average grant date fair value (1) Number of Weighted average grant date fair value (1) 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 Granted 97 62.26 894 58.98 Vested (27) 64.01 (561) 55.29 Forfeited (39) 48.89 (105) 57.54 Nonvested restricted stock units - December 31, 2020 289 $ 55.92 1,501 $ 56.50 (1) Fair value is based on the closing price of the Company's common shares on the grant date. The following table provides an activity summary of the Company's cash-settled restricted stock units: Cash-Settled Performance Restricted Stock Units Cash-Settled Service Restricted Stock Units Number of Number of 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 Granted — 1 Vested (6) (332) Forfeited — (51) Nonvested restricted stock units - December 31, 2020 — 471 |
ADDITIONAL INFORMATION RELATED TO SHARE BASED COMPENSATION | The following table provides additional information related to share-based compensation: Year ended December 31, 2020 2019 2018 Share-based compensation expense (1) $ 47,789 $ 52,218 $ 54,011 Tax benefits associated with share-based compensation expense $ 8,061 $ 8,913 $ 7,772 Liability for cash-settled restricted stock units (2) $ 13,273 $ 21,731 $ 20,648 Fair value of restricted stock units vested (3) $ 50,757 $ 51,206 $ 50,750 Unrecognized share-based compensation expense $ 74,014 $ 75,770 $ 87,341 Expected weighted average period associated with the recognition of unrecognized share-based compensation expense 2.4 years 2.3 years 2.4 years (1) Related to share-settled stock units and cash settled restricted stock units. (2) Included in other liabilities in the consolidated balance sheets. (3) Fair value is based on the closing price of the Company's common shares on the vest date. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
SCHEDULE OF INCOME TAX EXPENSE AND NET TAX ASSETS | The following table provides an analysis of income tax expense and net tax assets: Year ended December 31, 2020 2019 2018 Current income tax expense (benefit) U.S. $ (1,122) $ 12,601 $ (5,401) Europe 365 22,425 10,409 Other — 469 51 Deferred income tax expense (benefit) U.S. (3,098) 17,665 15,288 Europe (8,466) (29,468) (49,833) Total income tax expense (benefit) $ (12,321) $ 23,692 $ (29,486) Net current tax receivables (payables) $ 12,205 $ 13,130 $ 9,683 Net deferred tax assets (liabilities) (1,625) 18,621 39,775 Net tax assets $ 10,580 $ 31,751 $ 49,458 |
SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES | The following table provides details of the significant components of deferred tax assets and liabilities: At December 31, 2020 2019 Deferred tax assets: Discounting of net reserves for losses and loss expenses $ 47,912 $ 40,523 Unearned premiums 46,049 42,709 Operating and capital loss carryforwards (1) 80,008 85,901 Accruals not currently deductible 28,096 29,705 Tax credits 11,142 2,956 Other deferred tax assets 24,266 14,355 Deferred tax assets before valuation allowance 237,473 216,149 Valuation allowance (20,778) (18,560) Deferred tax assets net of valuation allowance 216,695 197,589 Deferred tax liabilities: Deferred acquisition costs (33,550) (38,320) Net unrealized investments gains (62,921) (30,434) Intangible assets (46,132) (44,199) Equalization reserves (2,825) (2,825) Other deferred tax liabilities (72,892) (63,190) Deferred tax liabilities (218,320) (178,968) Net deferred tax assets $ (1,625) $ 18,621 (1) At December 31, 2020 and 2019, the total operating loss carryforwards includes Lloyd's deferred year of account losses of $39 million and $50 million, respectively. |
SUMMARY OF TAX CREDITS | The following table summarizes total operating and capital loss carryforwards and tax credits: At December 31, 2020 2019 Operating and Capital Loss Carryforwards (1) Singapore (branch) operating loss carryforward $ 110,504 $ 103,899 U.K. operating loss carryforward (2) 357,226 431,374 Ireland operating loss carryforward 404 9,064 Ireland capital loss carryforward 716 716 Belgian operating loss carryforward 1,850 — Tax Credits (1) Ireland foreign tax credit $ 2,386 $ 2,092 U.K. tax credit 8,756 864 (1) At December 31, 2020, all remaining operating and capital loss carryforwards and tax credits can be carried forward indefinitely. |
SUMMARY OF OPERATING AND CAPITAL LOSS CARRYFORWARDS | The following table summarizes total operating and capital loss carryforwards and tax credits: At December 31, 2020 2019 Operating and Capital Loss Carryforwards (1) Singapore (branch) operating loss carryforward $ 110,504 $ 103,899 U.K. operating loss carryforward (2) 357,226 431,374 Ireland operating loss carryforward 404 9,064 Ireland capital loss carryforward 716 716 Belgian operating loss carryforward 1,850 — Tax Credits (1) Ireland foreign tax credit $ 2,386 $ 2,092 U.K. tax credit 8,756 864 (1) At December 31, 2020, all remaining operating and capital loss carryforwards and tax credits can be carried forward indefinitely. |
VALUATION ALLOWANCE ROLL FORWARD | The following table shows an analysis of the movement in the Company's valuation allowance: At December 31, 2020 2019 Income tax expense: Valuation allowance - beginning of year $ 18,560 $ 13,891 Operating loss carryforwards 661 2,445 Foreign tax credit 293 (114) U.K. branch assets and other foreign rate differentials 1,264 2,338 Valuation allowance - end of year $ 20,778 $ 18,560 Accumulated other comprehensive income: Valuation allowance - beginning of year — 5,064 Change in investment - related items — (5,064) Valuation allowance - end of year — — Total valuation allowance - end of year $ 20,778 $ 18,560 |
EFFECTIVE TAX RATE RECONCILIATION | The following table presents the distribution of income before income taxes between domestic and foreign jurisdictions as well as a reconciliation of the actual income tax rate to the amount computed by applying the effective tax rate of 0% under Bermuda law to income before income taxes: Year ended December 31, 2020 2019 2018 Income (loss) before income taxes Bermuda (domestic) $ (45,951) $ 179,418 $ 181,597 Foreign (86,794) 167,747 (168,062) Total income (loss) before income taxes $ (132,745) $ 347,165 $ 13,535 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. 5.6 % 8.1 % 65.7 % Europe 9.2 % 0.4 % (289.7) % Valuation allowance (1.7) % 1.3 % (13.4) % Net tax exempt income — % — % (3.3) % Change in European enacted tax rate (1.7) % — % 16.9 % Other (2.1) % (3.0) % 5.9 % Actual tax rate 9.3 % 6.8 % (217.9) % |
OTHER COMPREHENSIVE INCOME (L_2
OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
TAX EFFECTS ALLOCATED TO EACH COMPONENT OF OTHER COMPREHENSIVE INCOME (LOSS) | The following table presents the tax effects allocated to each component of other comprehensive income (loss): Before tax amount Income tax (expense) benefit Net of tax amount Year ended December 31, 2020 Available for sale investments: Unrealized gains (losses) arising during the year for which an allowance for expected credit losses has not been recognized $ 360,357 $ (43,191) $ 317,166 Unrealized gains (losses) arising during the year for which an allowance for expected credit losses has been recognized (40) — (40) Adjustment for reclassification of net realized (gains) losses, impairment losses and OTTI losses recognized in net income (loss) (90,380) 12,368 (78,012) Unrealized gains (losses) arising during the year, net of reclassification adjustment 269,937 (30,823) 239,114 Foreign currency translation adjustment 3,571 — 3,571 Total other comprehensive income (loss), net of tax $ 273,508 $ (30,823) $ 242,685 Year ended December 31, 2019 Available for sale investments: Unrealized gains (losses) 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 (loss) $ (29,618) $ 4,889 $ (24,729) Unrealized gains (losses) arising during the year, net of reclassification adjustment (1) 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 (loss) 105,730 (4,828) 100,902 Unrealized gains (losses) arising during the year, net of reclassification adjustment (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) |
RECLASSIFICATIONS OUT OF AOCI INTO NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | The following table presents details of amounts reclassified from accumulated other comprehensive income ("AOCI") to net income (loss): Amounts reclassified from AOCI (1) AOCI components Consolidated statement of operations line item that includes reclassification adjustment Years ended December 31, 2020 2019 2018 Unrealized gains (losses) on available for sale investments Other realized gains (losses) $ 91,866 $ 36,602 $ (95,997) Impairment losses (1,486) — — OTTI losses — (6,984) (9,733) Total before tax 90,380 29,618 (105,730) Income tax (expense) benefit (12,368) (4,889) 4,828 Net of tax $ 78,012 $ 24,729 $ (100,902) Foreign currency translation adjustments (2) Foreign exchange gains (losses) $ — $ 6,043 $ — Income tax (expense) benefit — — — Net of tax $ — $ 6,043 $ — (1) Amounts in parentheses are charges to net income (loss). |
STATUTORY FINANCIAL INFORMATI_2
STATUTORY FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
STATUTORY FINANCIAL INFORMATION [Abstract] | |
STATUTORY CAPITAL AND SURPLUS BY JURISDICTION | The statutory capital and surplus in each of the Company's most significant regulatory jurisdictions is shown in the following table: Bermuda Ireland U.S. At December 31, 2020 2019 2020 2019 2020 2019 Required statutory capital and surplus $ 1,584,854 $ 1,502,153 $ 778,493 $ 719,405 $ 542,824 $ 500,750 Available statutory capital and surplus $ 3,004,077 $ 3,288,752 $ 1,085,317 $ 1,069,621 $ 1,685,684 $ 1,713,013 |
UNAUDITED CONDENSED QUARTERLY_2
UNAUDITED CONDENSED QUARTERLY FINANCIAL DATA (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
UNAUDITED SUMMARY OF QUARTERLY FINANCIAL RESULTS | An unaudited summary of quarterly financial results is shown in the following table: Quarters ended Dec 31 Sep 30 Jun 30 Mar 31 2020 Net premiums earned $ 1,087,368 $ 1,091,312 $ 1,104,003 $ 1,088,625 Net investment income 109,503 101,956 45,040 93,101 Net investment gains (losses) 83,356 55,609 53,043 (62,877) Underwriting income (loss) (1) (2) (80,835) (135,324) 87,412 (196,767) Net income (loss) available (attributable) to common shareholders (4,819) (72,945) 112,477 (185,390) Earnings (loss) per common share $ (0.06) $ (0.87) $ 1.33 $ (2.20) Earnings (loss) per diluted common share $ (0.06) $ (0.87) $ 1.33 $ (2.20) 2019 Net premiums earned $ 1,172,051 $ 1,157,307 $ 1,123,607 $ 1,134,212 Net investment income 117,557 115,763 137,949 107,303 Net investment gains 42,712 14,527 21,225 12,767 Underwriting income (loss) (1) (2) (49,254) (78,718) 78,659 77,822 Net income (loss) available (attributable) to common shareholders (9,897) 27,745 166,387 98,125 Earnings (loss) per common share $ (0.12) $ 0.33 $ 1.98 $ 1.17 Earnings (loss) per diluted common share $ (0.12) $ 0.33 $ 1.97 $ 1.16 (1) Consolidated underwriting income is a pre-tax measure of underwriting profitability that takes into account net premiums earned and other insurance related income (loss) as revenues and net losses and loss expenses, acquisition costs and underwriting-related general and administrative expenses as expenses. Consolidated underwriting income (loss) is a non-GAAP financial measure as defined in Item 10(e) of SEC Regulation S-K. The reconciliation to income (loss) before income taxes and interest in income (loss) of equity method investments, the most comparable GAAP financial measure, is provided in Note 3 'Segment Information'. (2) Underwriting-related general and administrative expenses include those general and administrative expenses that are incremental and/or directly attributable to the Company's underwriting operations. 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 $27 million, $21 million, $27 million and $27 million for the quarters ended December 31, September 30, June 30 and March 31, 2020, respectively. During the quarters ended December 31, September 30, June 30 and March 31, 2019, corporate expenses were $32 million, $29 million, $32 million and $36 million, respectively. Corporate expenses include holding company costs necessary to support the Company's worldwide insurance and reinsurance operations and costs associated with operating as a publicly-traded company. As these costs are not incremental and/or directly attributable to the Company's underwriting operations, these costs are excluded from underwriting-related general and administrative expenses, and therefore, consolidated underwriting income (loss). (3) During the quarters ended December 31, September 30, June 30 and March 31, 2020, the Company recognized reorganization expenses of $7 million, $1 million, $0.4 million and $1 million, respectively, related to its transformation program. During the quarters ended December 31, September 30, June 30 and March 31, 2019, the Company recognized reorganization expenses of $8 million, $11 million, $3 million and $15 million, respectively (refer to Note 18 ' Reorganization Expense' ). (4) During the quarters ended December 31, September 30, June 30 and March 31, 2020, the Company recognized amortization of VOBA of $1 million, $1 million, $1 million and $2 million, respectively, related to the acquisition of Novae. During the quarters ended December 31, September 30, June 30 and March 31, 2019, the Company recognized amortization of VOBA of $2 million, $4 million, $7 million and $13 million, respectively (refer to Note 4 'Goodwill and Intangible Assets '). |
ORGANIZATION (Details)
ORGANIZATION (Details) | Jan. 01, 2019 | Dec. 31, 2020 | Oct. 02, 2017 |
Novae | |||
Business Acquisition [Line Items] | |||
Interests acquired | 100.00% | ||
Axis Corporate Capital UK Limited | |||
Business Acquisition [Line Items] | |||
Capital support, percentage | 70.00% | 70.00% | |
Axis Corporate Capital UK Limited II | |||
Business Acquisition [Line Items] | |||
Capital support, percentage | 30.00% | 30.00% |
BASIS OF PRESENTATION AND SIG_3
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | Dec. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Dec. 15, 2019 | Dec. 31, 2018 | Apr. 16, 2018 | Dec. 31, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Total shareholders’ equity | $ 5,295,694,000 | $ 5,544,008,000 | |||||
Premiums receivable, net | (2,738,342,000) | (3,071,390,000) | |||||
Allowance for credit loss | (8,836,000) | (7,000,000) | |||||
Reinsurance recoverable on unpaid losses | 4,496,641,000 | 3,877,756,000 | $ 59,000,000 | $ 3,501,669,000 | $ 108,000,000 | $ 3,159,514,000 | |
Provision for unrecoverable reinsurance | 23,711,000 | 18,000,000 | 21,000,000 | ||||
Mortgage loans held for investment | 593,290,000 | 432,748,000 | |||||
Allowance for expected credit losses to be recognized | 0 | ||||||
Allowance for expected credit losses | $ (323,000) | $ 0 | $ 0 | $ 0 | |||
Cumulative effect of adoption | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Total shareholders’ equity | $ 0 |
SEGMENT INFORMATION - Segment r
SEGMENT INFORMATION - Segment results (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2020USD ($)reportable_segment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Segment Reporting [Abstract] | |||||||||||
Number of reportable segments | reportable_segment | 2 | ||||||||||
Segment Information [Line Items] | |||||||||||
Gross premiums written | $ 6,826,938 | $ 6,898,858 | $ 6,910,065 | ||||||||
Net premiums written | 4,336,409 | 4,489,615 | 4,658,962 | ||||||||
Net premiums earned | $ 1,087,368 | $ 1,091,312 | $ 1,104,003 | $ 1,088,625 | $ 1,172,051 | $ 1,157,307 | $ 1,123,607 | $ 1,134,212 | 4,371,309 | 4,587,178 | 4,791,495 |
Other insurance related income (loss) | (8,089) | 16,444 | 10,622 | ||||||||
Net losses and loss expenses | (3,281,252) | (3,044,798) | (3,190,287) | ||||||||
Acquisition costs | (929,517) | (1,024,582) | (968,835) | ||||||||
Underwriting-related general and administrative expenses | (579,790) | (634,831) | (627,389) | ||||||||
Underwriting income (loss) | (80,835) | (135,324) | 87,412 | (196,767) | (49,254) | (78,718) | 78,659 | 77,822 | |||
Net investment income | 109,503 | 101,956 | 45,040 | 93,101 | 117,557 | 115,763 | 137,949 | 107,303 | 349,601 | 478,572 | 438,507 |
Net investment gains | 83,356 | 55,609 | 53,043 | (62,877) | 42,712 | 14,527 | 21,225 | 12,767 | 129,133 | 91,233 | (150,218) |
Foreign exchange losses | (81,069) | 12,041 | 29,165 | ||||||||
Interest expense and financing costs | (75,049) | (68,107) | (67,432) | ||||||||
Reorganization expenses | (7,881) | (37,384) | (66,940) | ||||||||
Amortization of value of business acquired | (1,000) | (1,000) | (1,000) | (2,000) | (2,000) | (4,000) | (7,000) | (13,000) | (5,139) | (26,722) | (172,332) |
Amortization of intangible assets | (11,390) | (11,597) | (13,814) | ||||||||
Income (loss) before income taxes and interest in income (loss) of equity method investments | (129,133) | 337,447 | 12,542 | ||||||||
Goodwill and intangible assets | 324,288 | 324,288 | |||||||||
Operating Segments | |||||||||||
Segment Information [Line Items] | |||||||||||
Gross premiums written | 6,826,938 | 6,898,858 | 6,910,065 | ||||||||
Net premiums written | 4,336,409 | 4,489,615 | 4,658,962 | ||||||||
Net premiums earned | 4,371,309 | 4,587,178 | 4,791,495 | ||||||||
Other insurance related income (loss) | (8,089) | 16,444 | 10,622 | ||||||||
Net losses and loss expenses | (3,281,252) | (3,044,798) | (3,190,287) | ||||||||
Acquisition costs | (929,517) | (1,024,582) | (968,835) | ||||||||
Underwriting-related general and administrative expenses | (477,968) | (505,735) | (519,168) | ||||||||
Underwriting income (loss) | $ (325,517) | $ 28,507 | $ 123,827 | ||||||||
Net losses and loss expenses ratio | 75.10% | 66.40% | 66.60% | ||||||||
Acquisition cost ratio | 21.30% | 22.30% | 20.20% | ||||||||
General and administrative expense ratio | 13.20% | 13.90% | 13.10% | ||||||||
Combined ratio | 109.60% | 102.60% | 99.90% | ||||||||
Goodwill and intangible assets | 320,434 | 332,553 | $ 320,434 | $ 332,553 | $ 343,571 | ||||||
Operating Segments | Insurance | |||||||||||
Segment Information [Line Items] | |||||||||||
Gross premiums written | 4,018,399 | 3,675,931 | 3,797,592 | ||||||||
Net premiums written | 2,357,501 | 2,209,155 | 2,324,747 | ||||||||
Net premiums earned | 2,299,038 | 2,190,084 | 2,362,606 | ||||||||
Other insurance related income (loss) | 2,647 | 2,858 | 3,460 | ||||||||
Net losses and loss expenses | (1,697,014) | (1,278,679) | (1,494,323) | ||||||||
Acquisition costs | (461,533) | (468,281) | (399,193) | ||||||||
Underwriting-related general and administrative expenses | (378,839) | (401,963) | (395,252) | ||||||||
Underwriting income (loss) | $ (235,701) | $ 44,019 | $ 77,298 | ||||||||
Net losses and loss expenses ratio | 73.80% | 58.40% | 63.20% | ||||||||
Acquisition cost ratio | 20.10% | 21.40% | 16.90% | ||||||||
General and administrative expense ratio | 16.50% | 18.30% | 16.80% | ||||||||
Combined ratio | 110.40% | 98.10% | 96.90% | ||||||||
Goodwill and intangible assets | 320,434 | 332,553 | $ 320,434 | $ 332,553 | $ 343,571 | ||||||
Operating Segments | Reinsurance | |||||||||||
Segment Information [Line Items] | |||||||||||
Gross premiums written | 2,808,539 | 3,222,927 | 3,112,473 | ||||||||
Net premiums written | 1,978,908 | 2,280,460 | 2,334,215 | ||||||||
Net premiums earned | 2,072,271 | 2,397,094 | 2,428,889 | ||||||||
Other insurance related income (loss) | (10,736) | 13,586 | 7,162 | ||||||||
Net losses and loss expenses | (1,584,238) | (1,766,119) | (1,695,964) | ||||||||
Acquisition costs | (467,984) | (556,301) | (569,642) | ||||||||
Underwriting-related general and administrative expenses | (99,129) | (103,772) | (123,916) | ||||||||
Underwriting income (loss) | $ (89,816) | $ (15,512) | $ 46,529 | ||||||||
Net losses and loss expenses ratio | 76.40% | 73.70% | 69.80% | ||||||||
Acquisition cost ratio | 22.60% | 23.20% | 23.50% | ||||||||
General and administrative expense ratio | 4.80% | 4.30% | 5.10% | ||||||||
Combined ratio | 103.80% | 101.20% | 98.40% | ||||||||
Goodwill and intangible assets | 0 | 0 | $ 0 | $ 0 | $ 0 | ||||||
Significant Reconciling Items | |||||||||||
Segment Information [Line Items] | |||||||||||
Net investment income | 349,601 | 478,572 | 438,507 | ||||||||
Net investment gains | 129,133 | 91,233 | (150,218) | ||||||||
Foreign exchange losses | (81,069) | 12,041 | 29,165 | ||||||||
Interest expense and financing costs | (75,049) | (68,107) | (67,432) | ||||||||
Reorganization expenses | (7,881) | (37,384) | (66,940) | ||||||||
Amortization of value of business acquired | (5,139) | (26,722) | (172,332) | ||||||||
Amortization of intangible assets | (11,390) | (11,597) | (13,814) | ||||||||
Corporate | |||||||||||
Segment Information [Line Items] | |||||||||||
Underwriting-related general and administrative expenses | $ (27,000) | $ (21,000) | $ (27,000) | $ (27,000) | $ (32,000) | $ (29,000) | $ (32,000) | $ (36,000) | $ (101,822) | $ (129,096) | $ (108,221) |
SEGMENT INFORMATION - Gross pre
SEGMENT INFORMATION - Gross premiums written (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Gross premiums written | $ 6,826,938 | $ 6,898,858 | $ 6,910,065 |
Bermuda | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Gross premiums written | 602,432 | 738,258 | 606,452 |
Ireland | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Gross premiums written | 1,516,596 | 1,679,646 | 1,805,882 |
U.S. | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Gross premiums written | 3,398,108 | 3,090,547 | 2,811,537 |
Lloyd's of London | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Gross premiums written | $ 1,309,802 | $ 1,390,407 | $ 1,686,194 |
SEGMENT INFORMATION - Net premi
SEGMENT INFORMATION - Net premiums earned (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Information [Line Items] | |||||||||||
Net premiums earned | $ 1,087,368 | $ 1,091,312 | $ 1,104,003 | $ 1,088,625 | $ 1,172,051 | $ 1,157,307 | $ 1,123,607 | $ 1,134,212 | $ 4,371,309 | $ 4,587,178 | $ 4,791,495 |
Operating Segments | |||||||||||
Segment Information [Line Items] | |||||||||||
Net premiums earned | 4,371,309 | 4,587,178 | 4,791,495 | ||||||||
Operating Segments | Reinsurance | |||||||||||
Segment Information [Line Items] | |||||||||||
Net premiums earned | 2,072,271 | 2,397,094 | 2,428,889 | ||||||||
Operating Segments | Reinsurance | Property | |||||||||||
Segment Information [Line Items] | |||||||||||
Net premiums earned | 256,244 | 311,625 | 317,038 | ||||||||
Operating Segments | Reinsurance | Catastrophe | |||||||||||
Segment Information [Line Items] | |||||||||||
Net premiums earned | 244,934 | 267,591 | 250,016 | ||||||||
Operating Segments | Reinsurance | Credit and surety | |||||||||||
Segment Information [Line Items] | |||||||||||
Net premiums earned | 187,721 | 208,717 | 250,276 | ||||||||
Operating Segments | Reinsurance | Professional lines | |||||||||||
Segment Information [Line Items] | |||||||||||
Net premiums earned | 207,605 | 206,328 | 220,687 | ||||||||
Operating Segments | Reinsurance | Liability | |||||||||||
Segment Information [Line Items] | |||||||||||
Net premiums earned | 396,906 | 373,664 | 363,292 | ||||||||
Operating Segments | Reinsurance | Accident and health | |||||||||||
Segment Information [Line Items] | |||||||||||
Net premiums earned | 333,996 | 319,619 | 299,813 | ||||||||
Operating Segments | Reinsurance | Discontinued lines - Novae | |||||||||||
Segment Information [Line Items] | |||||||||||
Net premiums earned | 1,216 | (1,048) | 9,137 | ||||||||
Operating Segments | Reinsurance | Motor | |||||||||||
Segment Information [Line Items] | |||||||||||
Net premiums earned | 255,916 | 398,565 | 438,693 | ||||||||
Operating Segments | Reinsurance | Engineering | |||||||||||
Segment Information [Line Items] | |||||||||||
Net premiums earned | 60,521 | 63,899 | 67,932 | ||||||||
Operating Segments | Reinsurance | Agriculture | |||||||||||
Segment Information [Line Items] | |||||||||||
Net premiums earned | 73,696 | 188,925 | 176,435 | ||||||||
Operating Segments | Reinsurance | Marine and aviation | |||||||||||
Segment Information [Line Items] | |||||||||||
Net premiums earned | 53,516 | 59,209 | 35,570 | ||||||||
Operating Segments | Insurance | |||||||||||
Segment Information [Line Items] | |||||||||||
Net premiums earned | 2,299,038 | 2,190,084 | 2,362,606 | ||||||||
Operating Segments | Insurance | Property | |||||||||||
Segment Information [Line Items] | |||||||||||
Net premiums earned | 605,650 | 633,550 | 796,945 | ||||||||
Operating Segments | Insurance | Marine | |||||||||||
Segment Information [Line Items] | |||||||||||
Net premiums earned | 293,746 | 281,764 | 300,944 | ||||||||
Operating Segments | Insurance | Terrorism | |||||||||||
Segment Information [Line Items] | |||||||||||
Net premiums earned | 47,378 | 47,345 | 49,150 | ||||||||
Operating Segments | Insurance | Aviation | |||||||||||
Segment Information [Line Items] | |||||||||||
Net premiums earned | 70,910 | 55,028 | 74,203 | ||||||||
Operating Segments | Insurance | Credit and political risk | |||||||||||
Segment Information [Line Items] | |||||||||||
Net premiums earned | 105,869 | 91,698 | 102,825 | ||||||||
Operating Segments | Insurance | Professional lines | |||||||||||
Segment Information [Line Items] | |||||||||||
Net premiums earned | 715,276 | 661,250 | 570,241 | ||||||||
Operating Segments | Insurance | Liability | |||||||||||
Segment Information [Line Items] | |||||||||||
Net premiums earned | 313,291 | 264,667 | 229,373 | ||||||||
Operating Segments | Insurance | Accident and health | |||||||||||
Segment Information [Line Items] | |||||||||||
Net premiums earned | 143,723 | 144,499 | 207,777 | ||||||||
Operating Segments | Insurance | Discontinued lines - Novae | |||||||||||
Segment Information [Line Items] | |||||||||||
Net premiums earned | $ 3,195 | $ 10,283 | $ 31,148 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Analysis of goodwill and intangible assets (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill | |||
Goodwill, gross | $ 97,092,000 | $ 97,092,000 | $ 97,092,000 |
Accumulated translation adjustment | 4,911,000 | 4,911,000 | 4,911,000 |
Goodwill, net of accumulated translation adjustment | 102,003,000 | 102,003,000 | 102,003,000 |
Impairment charges | (1,202,000) | 0 | |
Goodwill | 100,801,000 | 102,003,000 | |
Intangible assets with an indefinite life | |||
Gross amount | 120,784,000 | 120,784,000 | 120,784,000 |
Accumulated translation adjustment | 0 | 0 | 0 |
Impairment charges | 0 | 0 | |
Intangible assets with an indefinite life, net | 120,784,000 | 120,784,000 | 120,784,000 |
Intangible assets with a finite life | |||
Gross amount | 394,604,000 | 404,304,000 | 410,575,000 |
Accumulated amortization | (275,846,000) | (247,804,000) | (66,534,000) |
Accumulated translation adjustment | 0 | 0 | 0 |
Finite-lived intangible assets and VOBA, net, before amortization, acquisitions, and impairment | 118,758,000 | 156,500,000 | 344,041,000 |
Amortization | (16,055,000) | (37,742,000) | (184,043,000) |
Impairment charges | 0 | 0 | (3,500,000) |
Intangible assets with a finite life, net | 102,703,000 | ||
Total | |||
Gross amount | 612,480,000 | 622,180,000 | 628,451,000 |
Accumulated amortization | (275,846,000) | (247,804,000) | (66,534,000) |
Accumulated translation adjustment | 4,911,000 | 4,911,000 | 4,911,000 |
Intangible assets, net, before amortization, acquisitions, and impairment | 341,545,000 | 379,287,000 | 566,828,000 |
Amortization | (16,055,000) | $ (37,742,000) | $ (184,043,000) |
Goodwill and intangible assets net balance | $ 324,288,000 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Gross amount and accumulated amortization by category (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross amount | $ 515,388 | $ 525,088 |
Accumulated amortization and impairment | (291,901) | (285,546) |
Total intangible assets | 223,487 | 239,542 |
Customer lists, trademark and non-compete - Media Pro | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross amount | 9,700 | |
Accumulated amortization and impairment | (9,700) | |
Total intangible assets | 0 | |
Customer relationships and customers lists - Ternian | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross amount | 13,330 | 13,330 |
Accumulated amortization and impairment | (7,665) | (6,333) |
Total intangible assets | 5,665 | 6,997 |
Coverholders | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross amount | 63,565 | 63,565 |
Accumulated amortization and impairment | (17,216) | (11,918) |
Total intangible assets | 46,349 | 51,647 |
Large brokers | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross amount | 46,641 | 46,641 |
Accumulated amortization and impairment | (10,106) | (6,996) |
Total intangible assets | 36,535 | 39,645 |
SME brokers | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross amount | 14,126 | 14,126 |
Accumulated amortization and impairment | (3,826) | (2,649) |
Total intangible assets | 10,300 | 11,477 |
U.S. state licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross amount | 26,036 | 26,036 |
Total intangible assets | 26,036 | 26,036 |
Syndicate capacity | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross amount | 94,748 | 94,748 |
Total intangible assets | 94,748 | 94,748 |
Novae | VOBA - Novae | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross amount | 256,942 | 256,942 |
Accumulated amortization and impairment | (253,088) | (247,950) |
Total intangible assets | $ 3,854 | $ 8,992 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Estimated amortization expense (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
VOBA | |||
2021 | $ 3,854 | ||
2022 | 0 | ||
2023 | 0 | ||
2024 | 0 | ||
2025 | 0 | ||
2026 and thereafter | 0 | ||
Value of business acquired | 3,854 | $ 8,992 | |
Intangible assets | |||
2021 | 10,916 | ||
2022 | 10,916 | ||
2023 | 10,916 | ||
2024 | 10,916 | ||
2025 | 9,921 | ||
2026 and thereafter | 45,264 | ||
Total | 98,849 | ||
Indefinite lived intangible assets | 120,784 | 120,784 | $ 120,784 |
Intangible assets, net | 219,633 | 230,550 | |
Total | |||
2021 | 14,770 | ||
2022 | 10,916 | ||
2023 | 10,916 | ||
2024 | 10,916 | ||
2025 | 9,921 | ||
2026 and thereafter | 45,264 | ||
Total remaining amortization expense | 102,703 | ||
Total intangible assets | $ 223,487 | $ 239,542 |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Impairment charges | $ 1,202,000 | $ 0 | |
Impairment charges | $ 0 | $ 0 | 3,500,000 |
Useful life of finite lived intangible assets | 9 years | ||
MGA contract | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment charges | $ 4,000,000 |
INVESTMENTS - Amortized cost or
INVESTMENTS - Amortized cost or cost and fair values (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Fixed maturities | ||||
Amortized cost | $ 11,566,930 | $ 12,263,240 | ||
Allowance for expected credit losses | (323) | 0 | $ 0 | $ 0 |
Gross unrealized gains | 494,103 | 236,817 | ||
Gross unrealized losses | (18,911) | (31,852) | ||
Fair value | 12,041,799 | 12,468,205 | ||
U.S. government and agency | ||||
Fixed maturities | ||||
Amortized cost | 1,881,489 | 2,102,849 | ||
Allowance for expected credit losses | 0 | 0 | ||
Gross unrealized gains | 38,969 | 16,345 | ||
Gross unrealized losses | (1,759) | (6,313) | ||
Fair value | 1,918,699 | 2,112,881 | ||
Non-U.S. government | ||||
Fixed maturities | ||||
Amortized cost | 632,875 | 564,505 | ||
Allowance for expected credit losses | 0 | 0 | ||
Gross unrealized gains | 38,826 | 14,535 | ||
Gross unrealized losses | (428) | (2,448) | ||
Fair value | 671,273 | 576,592 | ||
Corporate debt | ||||
Fixed maturities | ||||
Amortized cost | 4,408,351 | 4,797,384 | ||
Allowance for expected credit losses | (303) | 0 | ||
Gross unrealized gains | 254,261 | 140,426 | ||
Gross unrealized losses | (6,358) | (7,556) | ||
Fair value | 4,655,951 | 4,930,254 | ||
Agency RMBS | ||||
Fixed maturities | ||||
Amortized cost | 1,244,727 | 1,570,823 | ||
Allowance for expected credit losses | 0 | 0 | ||
Gross unrealized gains | 42,170 | 25,215 | ||
Gross unrealized losses | (688) | (3,454) | ||
Fair value | 1,286,209 | 1,592,584 | ||
CMBS | ||||
Fixed maturities | ||||
Amortized cost | 1,268,273 | 1,340,156 | ||
Allowance for expected credit losses | 0 | 0 | ||
Gross unrealized gains | 87,598 | 29,838 | ||
Gross unrealized losses | (2,284) | (4,942) | ||
Fair value | 1,353,587 | 1,365,052 | ||
Non-agency RMBS | ||||
Fixed maturities | ||||
Amortized cost | 136,198 | 84,381 | ||
Allowance for expected credit losses | (20) | 0 | ||
Gross unrealized gains | 4,604 | 1,393 | ||
Gross unrealized losses | (678) | (852) | ||
Fair value | 140,104 | 84,922 | ||
ABS | ||||
Fixed maturities | ||||
Amortized cost | 1,712,236 | 1,599,867 | ||
Allowance for expected credit losses | 0 | 0 | ||
Gross unrealized gains | 14,527 | 4,706 | ||
Gross unrealized losses | (6,685) | (5,880) | ||
Fair value | 1,720,078 | 1,598,693 | ||
Municipals | ||||
Fixed maturities | ||||
Amortized cost | 282,781 | 203,275 | ||
Allowance for expected credit losses | 0 | 0 | ||
Gross unrealized gains | 13,148 | 4,359 | ||
Gross unrealized losses | (31) | (407) | ||
Fair value | $ 295,898 | $ 207,227 |
INVESTMENTS - Equity securities
INVESTMENTS - Equity securities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity Securities, FV-NI, Cost | $ 421,744 | $ 398,956 |
Gross unrealized gains | 97,648 | 81,521 |
Gross unrealized losses | (947) | (6,270) |
Fair value | $ 518,445 | 474,207 |
Limited Partner [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Percentage of investment composition | 60.00% | |
Common shares | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity Securities, FV-NI, Cost | $ 10,810 | 504 |
Gross unrealized gains | 689 | 77 |
Gross unrealized losses | (557) | (388) |
Fair value | 10,942 | 193 |
Preferred stocks | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity Securities, FV-NI, Cost | 6,301 | 0 |
Gross unrealized gains | 1,767 | 0 |
Gross unrealized losses | 0 | 0 |
Fair value | 8,068 | 0 |
Exchange-traded funds | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity Securities, FV-NI, Cost | 147,794 | 215,986 |
Gross unrealized gains | 74,314 | 81,444 |
Gross unrealized losses | (390) | (105) |
Fair value | 221,718 | 297,325 |
Bond mutual funds | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity Securities, FV-NI, Cost | 256,839 | 182,466 |
Gross unrealized gains | 20,878 | 0 |
Gross unrealized losses | 0 | (5,777) |
Fair value | $ 277,717 | $ 176,689 |
INVESTMENTS - Contractual matur
INVESTMENTS - Contractual maturities of fixed maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Amortized cost | ||
Due in one year or less | $ 436,287 | $ 438,881 |
Due after one year through five years | 4,165,696 | 4,810,202 |
Due after five years through ten years | 2,344,859 | 2,091,486 |
Due after ten years | 258,654 | 327,444 |
Total fixed maturities with a single maturity date (amortized cost) | 7,205,496 | 7,668,013 |
Total | 11,566,930 | 12,263,240 |
Fair value | ||
Due in one year or less | 444,527 | 443,228 |
Due after one year through five years | 4,335,219 | 4,884,837 |
Due after five years through ten years | 2,489,050 | 2,157,157 |
Due after ten years | 273,025 | 341,732 |
Total fixed maturities with a single maturity date (fair value) | 7,541,821 | 7,826,954 |
Fair value | $ 12,041,799 | $ 12,468,205 |
% of Total fair value | ||
Due in one year or less | 3.60% | 3.60% |
Due after one year through five years | 36.00% | 39.20% |
Due after five years through ten years | 20.70% | 17.30% |
Due after ten years | 2.30% | 2.70% |
Fixed maturities with a single maturity date (% of total fair value) | 62.60% | 62.80% |
Total | 100.00% | 100.00% |
Agency RMBS | ||
Amortized cost | ||
Fixed maturities without a single maturity date | $ 1,244,727 | $ 1,570,823 |
Total | 1,244,727 | 1,570,823 |
Fair value | ||
Fixed maturities without a single maturity date (fair value) | 1,286,209 | 1,592,584 |
Fair value | $ 1,286,209 | $ 1,592,584 |
% of Total fair value | ||
Fixed maturities without a single maturity date (% of total fair value) | 10.70% | 12.80% |
CMBS | ||
Amortized cost | ||
Fixed maturities without a single maturity date | $ 1,268,273 | $ 1,340,156 |
Total | 1,268,273 | 1,340,156 |
Fair value | ||
Fixed maturities without a single maturity date (fair value) | 1,353,587 | 1,365,052 |
Fair value | $ 1,353,587 | $ 1,365,052 |
% of Total fair value | ||
Fixed maturities without a single maturity date (% of total fair value) | 11.20% | 10.90% |
Non-agency RMBS | ||
Amortized cost | ||
Fixed maturities without a single maturity date | $ 136,198 | $ 84,381 |
Total | 136,198 | 84,381 |
Fair value | ||
Fixed maturities without a single maturity date (fair value) | 140,104 | 84,922 |
Fair value | $ 140,104 | $ 84,922 |
% of Total fair value | ||
Fixed maturities without a single maturity date (% of total fair value) | 1.20% | 0.70% |
ABS | ||
Amortized cost | ||
Fixed maturities without a single maturity date | $ 1,712,236 | $ 1,599,867 |
Total | 1,712,236 | 1,599,867 |
Fair value | ||
Fixed maturities without a single maturity date (fair value) | 1,720,078 | 1,598,693 |
Fair value | $ 1,720,078 | $ 1,598,693 |
% of Total fair value | ||
Fixed maturities without a single maturity date (% of total fair value) | 14.30% | 12.80% |
INVESTMENTS - Gross unrealized
INVESTMENTS - Gross unrealized losses (Details) $ in Thousands | Dec. 31, 2020USD ($)security | Dec. 31, 2019USD ($)security |
Fixed maturities | ||
Fair value | ||
12 months or greater | $ 436,616 | $ 997,856 |
Less than 12 months | 1,020,397 | 2,177,108 |
Total | 1,457,013 | 3,174,964 |
Unrealized losses | ||
12 months or greater | (8,147) | (13,323) |
Less than 12 months | (10,764) | (18,529) |
Total | $ (18,911) | $ (31,852) |
Number of positions in an unrealized loss | security | 719 | 1,190 |
Continuous unrealized loss position | security | 249 | 497 |
Fixed maturities | Below Investment Grade or Not Rated | ||
Unrealized losses | ||
Total | $ (7,000) | $ (5,000) |
U.S. government and agency | ||
Fair value | ||
12 months or greater | 0 | 9,536 |
Less than 12 months | 251,606 | 614,705 |
Total | 251,606 | 624,241 |
Unrealized losses | ||
12 months or greater | 0 | (67) |
Less than 12 months | (1,759) | (6,246) |
Total | (1,759) | (6,313) |
Non-U.S. government | ||
Fair value | ||
12 months or greater | 16,115 | 99,466 |
Less than 12 months | 3,652 | 18,361 |
Total | 19,767 | 117,827 |
Unrealized losses | ||
12 months or greater | (262) | (2,036) |
Less than 12 months | (166) | (412) |
Total | (428) | (2,448) |
Corporate debt | ||
Fair value | ||
12 months or greater | 63,640 | 121,635 |
Less than 12 months | 233,970 | 375,858 |
Total | 297,610 | 497,493 |
Unrealized losses | ||
12 months or greater | (2,244) | (3,847) |
Less than 12 months | (4,114) | (3,709) |
Total | (6,358) | (7,556) |
Agency RMBS | ||
Fair value | ||
12 months or greater | 6,580 | 195,395 |
Less than 12 months | 78,672 | 326,402 |
Total | 85,252 | 521,797 |
Unrealized losses | ||
12 months or greater | (20) | (1,816) |
Less than 12 months | (668) | (1,638) |
Total | (688) | (3,454) |
CMBS | ||
Fair value | ||
12 months or greater | 19,736 | 24,281 |
Less than 12 months | 70,656 | 364,641 |
Total | 90,392 | 388,922 |
Unrealized losses | ||
12 months or greater | (1,012) | (64) |
Less than 12 months | (1,272) | (4,878) |
Total | (2,284) | (4,942) |
Non-agency RMBS | ||
Fair value | ||
12 months or greater | 5,109 | 6,345 |
Less than 12 months | 9,558 | 25,816 |
Total | 14,667 | 32,161 |
Unrealized losses | ||
12 months or greater | (598) | (792) |
Less than 12 months | (80) | (60) |
Total | (678) | (852) |
ABS | ||
Fair value | ||
12 months or greater | 325,436 | 535,780 |
Less than 12 months | 360,402 | 404,641 |
Total | 685,838 | 940,421 |
Unrealized losses | ||
12 months or greater | (4,011) | (4,667) |
Less than 12 months | (2,674) | (1,213) |
Total | (6,685) | (5,880) |
Municipals | ||
Fair value | ||
12 months or greater | 0 | 5,418 |
Less than 12 months | 11,881 | 46,684 |
Total | 11,881 | 52,102 |
Unrealized losses | ||
12 months or greater | 0 | (34) |
Less than 12 months | (31) | (373) |
Total | $ (31) | $ (407) |
INVESTMENTS - Mortgage loans (D
INVESTMENTS - Mortgage loans (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Mortgage loans held for investment: | ||
Commercial | $ 593,290,000 | $ 432,748,000 |
Total mortgage loans held for investment | $ 593,290,000 | $ 432,748,000 |
Commercial, percent | 100.00% | 100.00% |
Total mortgage loans held for investment, percent | 100.00% | 100.00% |
Debt service coverage ratio, in excess of | 2.4 | 2.1 |
Loan-to-value ratio, percent (less than) | 60.00% | 57.00% |
Credit losses on commercial mortgage loans | $ 0 | $ 0 |
INVESTMENTS - Other Investments
INVESTMENTS - Other Investments (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($)fund | Dec. 31, 2019USD ($) | Dec. 31, 2015USD ($) | |
Other Investments [Line Items] | |||
Fair value | $ 829,156 | $ 770,923 | |
Unfunded commitments related to other investments | 588,000 | 588,000 | |
Long/short equity funds | |||
Other Investments [Line Items] | |||
Fair value | $ 25,300 | $ 31,248 | |
Percentage of total fair value | 3.00% | 4.00% | |
Redemption notice period | 60 days | 60 days | |
Multi-strategy funds | |||
Other Investments [Line Items] | |||
Fair value | $ 121,420 | $ 136,542 | |
Percentage of total fair value | 15.00% | 18.00% | |
Multi-strategy funds | Other Redemption Restriction | |||
Other Investments [Line Items] | |||
Unfunded commitments related to other investments | $ 20,000 | $ 24,000 | |
Investment term | 2 years | ||
Multi-strategy funds | Maximum | |||
Other Investments [Line Items] | |||
Redemption notice period | 95 days | 90 days | |
Multi-strategy funds | Minimum | |||
Other Investments [Line Items] | |||
Redemption notice period | 60 days | 60 days | |
Direct lending funds | |||
Other Investments [Line Items] | |||
Fair value | $ 272,131 | $ 277,395 | |
Percentage of total fair value | 33.00% | 36.00% | |
Redemption notice period | 90 days | ||
Direct lending funds | Quarterly Redemption | |||
Other Investments [Line Items] | |||
Fair value | $ 38,000 | ||
Number of funds | fund | 1 | ||
Direct lending funds | Other Redemption Restriction | |||
Other Investments [Line Items] | |||
Unfunded commitments related to other investments | $ 151,000 | $ 170,000 | |
Optional extension of investment term | 3 years | ||
Direct lending funds | Maximum | Other Redemption Restriction | |||
Other Investments [Line Items] | |||
Investment term | 15 years | ||
Direct lending funds | Minimum | Other Redemption Restriction | |||
Other Investments [Line Items] | |||
Investment term | 5 years | ||
Private equity funds | |||
Other Investments [Line Items] | |||
Fair value | $ 124,706 | $ 80,412 | |
Percentage of total fair value | 15.00% | 10.00% | |
Private equity funds | Other Redemption Restriction | |||
Other Investments [Line Items] | |||
Unfunded commitments related to other investments | $ 166,000 | $ 261,000 | |
Investment term | 5 years | ||
Real estate funds | |||
Other Investments [Line Items] | |||
Fair value | $ 164,250 | $ 130,112 | |
Percentage of total fair value | 20.00% | 17.00% | |
Redemption notice period | 45 days | ||
Real estate funds | Quarterly Redemption | |||
Other Investments [Line Items] | |||
Fair value | $ 61,000 | ||
Number of funds | fund | 1 | ||
Real estate funds | Other Redemption Restriction | |||
Other Investments [Line Items] | |||
Unfunded commitments related to other investments | $ 201,000 | $ 82,000 | |
Real estate funds | Minimum | Other Redemption Restriction | |||
Other Investments [Line Items] | |||
Investment term | 7 years | ||
CLO-Equities | |||
Other Investments [Line Items] | |||
Fair value | $ 6,173 | $ 14,328 | |
Percentage of total fair value | 1.00% | 2.00% | |
Other privately held investments | |||
Other Investments [Line Items] | |||
Fair value | $ 70,011 | $ 36,934 | |
Percentage of total fair value | 8.00% | 5.00% | |
Overseas deposits | |||
Other Investments [Line Items] | |||
Fair value | $ 45,165 | $ 63,952 | |
Percentage of total fair value | 5.00% | 8.00% | |
Total other investments | |||
Other Investments [Line Items] | |||
Fair value | $ 829,156 | $ 770,923 | |
Percentage of total fair value | 100.00% | 100.00% | |
Hedge funds | Lockup Redemption Restriction | |||
Other Investments [Line Items] | |||
Fair value of other investments subject to redemption restrictions | $ 25,000 | $ 69,000 | |
Percentage of fair value of other investments subject to redemption restrictions | 17.00% | 41.00% | |
Bank Revolver Opportunity Funds | Other Redemption Restriction | |||
Other Investments [Line Items] | |||
Unfunded commitments related to other investments | $ 50,000 | ||
Investment term | 7 years | ||
Optional extension of investment term | 2 years |
INVESTMENTS - Equity method inv
INVESTMENTS - Equity method investments (Details) - Harrington Reinsurance Holdings Limited $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Schedule of Equity Method Investments [Line Items] | |
Payments to acquire equity method investments | $ 108 |
Equity method investment, ownership percentage | 19.00% |
Equity method investment, difference between carrying amount and underlying equity | $ 5 |
INVESTMENTS - Net Investment In
INVESTMENTS - Net Investment Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net Investment Income [Line Items] | |||||||||||
Gross investment income | $ 374,271 | $ 503,172 | $ 465,806 | ||||||||
Investment expenses | (24,670) | (24,600) | (27,299) | ||||||||
Net investment income | $ 109,503 | $ 101,956 | $ 45,040 | $ 93,101 | $ 117,557 | $ 115,763 | $ 137,949 | $ 107,303 | 349,601 | 478,572 | 438,507 |
Fixed maturities | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Gross investment income | 317,121 | 384,053 | 356,273 | ||||||||
Other investments | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Gross investment income | 16,059 | 60,038 | 48,959 | ||||||||
Equity securities | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Gross investment income | 9,328 | 10,434 | 10,077 | ||||||||
Mortgage loans | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Gross investment income | 15,432 | 14,712 | 13,566 | ||||||||
Cash and cash equivalents | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Gross investment income | 13,582 | 26,882 | 27,566 | ||||||||
Short-term investments | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Gross investment income | $ 2,749 | $ 7,053 | $ 9,365 |
INVESTMENTS - Net Investment ga
INVESTMENTS - Net Investment gains (losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Gross realized investment gains | |||||||||||
Fixed maturities and short-term investments | $ 186,726 | $ 93,160 | $ 46,067 | ||||||||
Equity securities | 25,648 | 3,449 | 20,435 | ||||||||
Gross realized investment gains | 212,374 | 96,609 | 66,502 | ||||||||
Gross realized investment losses | |||||||||||
Fixed maturities and short-term investments | (94,607) | (56,515) | (142,153) | ||||||||
Equity securities | (5,840) | (323) | (3,389) | ||||||||
Gross realized investment losses | (100,447) | (56,838) | (145,542) | ||||||||
Allowance for expected credit losses | (323) | 0 | 0 | ||||||||
Impairment losses | (1,486) | 0 | 0 | ||||||||
OTTI losses | 0 | (6,984) | (9,733) | ||||||||
Change in fair value of investment derivatives | (2,434) | (1,823) | 5,445 | ||||||||
Net unrealized gains (losses) on equity securities | 21,449 | 60,269 | (66,890) | ||||||||
Total net investment gains (losses) | $ 83,356 | $ 55,609 | $ 53,043 | $ (62,877) | $ 42,712 | $ 14,527 | $ 21,225 | $ 12,767 | $ 129,133 | $ 91,233 | $ (150,218) |
INVESTMENTS - Credit loss table
INVESTMENTS - Credit loss table (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | |||
Balance at end of period | $ 0 | $ 0 | $ 0 |
Expected credit losses on securities where credit losses were not previously recognized | 22,570 | 0 | 0 |
Additions (reductions) for expected credit losses on securities where credit losses were previously recognized | (11,542) | 0 | 0 |
Impairments of securities which the Company intends to sell or more likely than not will be required to sell | 0 | 0 | 0 |
Securities sold/redeemed/matured | (10,705) | 0 | 0 |
Balance at end of period | $ 323 | $ 0 | $ 0 |
INVESTMENTS - OTTI recognized i
INVESTMENTS - OTTI recognized in earnings (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net [Line Items] | |||
Total OTTI recognized in net income | $ 0 | $ 6,984 | $ 9,733 |
Non-U.S. government | |||
Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net [Line Items] | |||
Total OTTI recognized in net income | 0 | 90 | 4,697 |
Corporate debt | |||
Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net [Line Items] | |||
Total OTTI recognized in net income | 0 | 6,894 | 4,995 |
CMBS | |||
Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net [Line Items] | |||
Total OTTI recognized in net income | $ 0 | $ 0 | $ 41 |
INVESTMENTS - Securities narrat
INVESTMENTS - Securities narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule Of Available For Sale Securities [Line Items] | ||
Fair value | $ 12,041,799 | $ 12,468,205 |
Non-U.S. government | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Unrealized losses | 428 | 2,448 |
Fair value | 671,273 | 576,592 |
Non-U.S. government | Maximum | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Unrealized losses | 1,000 | |
CMBS | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Unrealized losses | 2,284 | 4,942 |
Fair value | $ 1,353,587 | $ 1,365,052 |
CMBS | Weighted Average | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Subordination percentage input for determining credit losses | 29.00% | 29.00% |
Non-agency RMBS | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Unrealized losses | $ 678 | $ 852 |
Fair value | 140,104 | 84,922 |
Non-agency RMBS | Prime | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair value | 85,000 | 54,000 |
Non-agency RMBS | Alt A | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair value | $ 23,000 | $ 11,000 |
INVESTMENTS - Restricted assets
INVESTMENTS - Restricted assets (Details) - USD ($) $ in Thousands | Jan. 01, 2019 | Dec. 31, 2020 | Dec. 31, 2019 |
Restricted Investments [Line Items] | |||
Collateral in Trust for inter-company agreements | $ 1,153,157 | $ 1,580,689 | |
Collateral for secured letter of credit facility | 434,845 | 473,187 | |
Funds at Lloyd's | 1,155,832 | 1,314,345 | |
Collateral in Trust for third-party agreements | 1,903,274 | 1,856,327 | |
Securities on deposit or in trust with regulatory authorities | 265,959 | 76,229 | |
Total restricted investments | 4,913,067 | 5,300,777 | |
Syndicate 2007 | Debt And Equity Securities | |||
Restricted Investments [Line Items] | |||
Collateral in Trust for third-party agreements | 45,000 | 365,000 | |
Syndicate 2007 | Cash | |||
Restricted Investments [Line Items] | |||
Pledged cash for third party insurance and reinsurance agreements | 225,000 | 16,000 | |
Syndicate 1686 | Debt And Equity Securities | |||
Restricted Investments [Line Items] | |||
Collateral in Trust for third-party agreements | 297,000 | 169,000 | |
Syndicate 1686 | Cash | |||
Restricted Investments [Line Items] | |||
Pledged cash for third party insurance and reinsurance agreements | $ 178,000 | $ 181,000 | |
Axis Corporate Capital UK Limited | |||
Restricted Investments [Line Items] | |||
Capital support, percentage | 70.00% | 70.00% | |
Axis Corporate Capital UK Limited II | |||
Restricted Investments [Line Items] | |||
Capital support, percentage | 30.00% | 30.00% |
INVESTMENTS - Reverse repurchas
INVESTMENTS - Reverse repurchase agreements (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Investments, Debt and Equity Securities [Abstract] | ||
Value of reverse repurchase agreements | $ 91,000,000 | $ 0 |
Minimum required collateral for reverse repurchase agreements, expressed as a percentage of loan principal | 102.00% |
FAIR VALUE MEASUREMENTS - Fair
FAIR VALUE MEASUREMENTS - Fair value on a recurring basis (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | $ 12,041,799 | $ 12,468,205 |
Equity securities | 518,445 | 474,207 |
Other investments | 829,156 | 770,923 |
Short-term investments | 161,897 | 38,471 |
Derivative instruments | 18,875 | 3,174 |
Total Assets | 13,570,172 | 13,754,980 |
Derivative instruments | 11,486 | 13,637 |
Cash settled awards | 13,273 | 21,731 |
Total Liabilities | 24,759 | 35,368 |
U.S. government and agency | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 1,918,699 | 2,112,881 |
Non-U.S. government | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 671,273 | 576,592 |
Corporate debt | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 4,655,951 | 4,930,254 |
Agency RMBS | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 1,286,209 | 1,592,584 |
CMBS | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 1,353,587 | 1,365,052 |
Non-agency RMBS | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 140,104 | 84,922 |
ABS | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 1,720,078 | 1,598,693 |
Municipals | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 295,898 | 207,227 |
Common shares | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 10,942 | 193 |
Preferred Shares | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 8,068 | 0 |
Exchange-traded funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 221,718 | 297,325 |
Bond mutual funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 277,717 | 176,689 |
Hedge funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 146,720 | 167,790 |
Direct lending funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 272,131 | 277,395 |
Private equity funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 124,706 | 80,412 |
Real estate funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 164,250 | 130,112 |
CLO-Equities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 6,173 | 14,328 |
Other privately held investments | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 70,011 | 36,934 |
Overseas deposits | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 45,165 | 63,952 |
Quoted prices in active markets for identical assets (Level 1) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 1,861,240 | 2,053,622 |
Equity securities | 240,728 | 297,518 |
Other investments | 0 | 0 |
Short-term investments | 0 | 0 |
Derivative instruments | 0 | 0 |
Total Assets | 2,101,968 | 2,351,140 |
Derivative instruments | 0 | 0 |
Cash settled awards | 0 | 0 |
Total Liabilities | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | U.S. government and agency | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 1,861,240 | 2,053,622 |
Quoted prices in active markets for identical assets (Level 1) | Non-U.S. government | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | Corporate debt | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | Agency RMBS | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | CMBS | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | Non-agency RMBS | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | ABS | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | Municipals | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | Common shares | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 10,942 | 193 |
Quoted prices in active markets for identical assets (Level 1) | Preferred Shares | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 8,068 | 0 |
Quoted prices in active markets for identical assets (Level 1) | Exchange-traded funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 221,718 | 297,325 |
Quoted prices in active markets for identical assets (Level 1) | Bond mutual funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | Hedge funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | Direct lending funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | Private equity funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | Real estate funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | CLO-Equities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | Other privately held investments | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | Overseas deposits | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Significant other observable inputs (Level 2) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 10,165,650 | 10,406,562 |
Equity securities | 277,717 | 176,689 |
Other investments | 45,165 | 63,952 |
Short-term investments | 161,897 | 38,471 |
Derivative instruments | 18,875 | 3,174 |
Total Assets | 10,669,304 | 10,688,848 |
Derivative instruments | 2,364 | 3,965 |
Cash settled awards | 13,273 | 21,731 |
Total Liabilities | 15,637 | 25,696 |
Significant other observable inputs (Level 2) | U.S. government and agency | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 57,459 | 59,259 |
Significant other observable inputs (Level 2) | Non-U.S. government | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 671,273 | 576,592 |
Significant other observable inputs (Level 2) | Corporate debt | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 4,653,447 | 4,927,957 |
Significant other observable inputs (Level 2) | Agency RMBS | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 1,286,209 | 1,592,584 |
Significant other observable inputs (Level 2) | CMBS | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 1,351,847 | 1,359,817 |
Significant other observable inputs (Level 2) | Non-agency RMBS | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 140,104 | 84,922 |
Significant other observable inputs (Level 2) | ABS | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 1,709,413 | 1,598,204 |
Significant other observable inputs (Level 2) | Municipals | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 295,898 | 207,227 |
Significant other observable inputs (Level 2) | Common shares | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Significant other observable inputs (Level 2) | Preferred Shares | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Significant other observable inputs (Level 2) | Exchange-traded funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Significant other observable inputs (Level 2) | Bond mutual funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 277,717 | 176,689 |
Significant other observable inputs (Level 2) | Hedge funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Significant other observable inputs (Level 2) | Direct lending funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Significant other observable inputs (Level 2) | Private equity funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Significant other observable inputs (Level 2) | Real estate funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Significant other observable inputs (Level 2) | CLO-Equities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Significant other observable inputs (Level 2) | Other privately held investments | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Significant other observable inputs (Level 2) | Overseas deposits | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 45,165 | 63,952 |
Significant unobservable inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 14,909 | 8,021 |
Equity securities | 0 | 0 |
Other investments | 76,184 | 51,262 |
Short-term investments | 0 | 0 |
Derivative instruments | 0 | 0 |
Total Assets | 91,093 | 59,283 |
Derivative instruments | 9,122 | 9,672 |
Cash settled awards | 0 | 0 |
Total Liabilities | 9,122 | 9,672 |
Significant unobservable inputs (Level 3) | U.S. government and agency | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 0 | 0 |
Significant unobservable inputs (Level 3) | Non-U.S. government | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 0 | 0 |
Significant unobservable inputs (Level 3) | Corporate debt | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 2,504 | 2,297 |
Significant unobservable inputs (Level 3) | Agency RMBS | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 0 | 0 |
Significant unobservable inputs (Level 3) | CMBS | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 1,740 | 5,235 |
Significant unobservable inputs (Level 3) | Non-agency RMBS | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 0 | 0 |
Significant unobservable inputs (Level 3) | ABS | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 10,665 | 489 |
Significant unobservable inputs (Level 3) | Municipals | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 0 | 0 |
Significant unobservable inputs (Level 3) | Common shares | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Significant unobservable inputs (Level 3) | Preferred Shares | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Significant unobservable inputs (Level 3) | Exchange-traded funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Significant unobservable inputs (Level 3) | Bond mutual funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Significant unobservable inputs (Level 3) | Hedge funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Significant unobservable inputs (Level 3) | Direct lending funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Significant unobservable inputs (Level 3) | Private equity funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Significant unobservable inputs (Level 3) | Real estate funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Significant unobservable inputs (Level 3) | CLO-Equities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 6,173 | 14,328 |
Significant unobservable inputs (Level 3) | Other privately held investments | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 70,011 | 36,934 |
Significant unobservable inputs (Level 3) | Overseas deposits | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Fair value based on NAV practical expedient | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 707,807 | 655,709 |
Total Assets | 707,807 | 655,709 |
Fair value based on NAV practical expedient | Hedge funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 146,720 | 167,790 |
Fair value based on NAV practical expedient | Direct lending funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 272,131 | 277,395 |
Fair value based on NAV practical expedient | Private equity funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 124,706 | 80,412 |
Fair value based on NAV practical expedient | Real estate funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 164,250 | 130,112 |
Fair value based on NAV practical expedient | CLO-Equities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Fair value based on NAV practical expedient | Other privately held investments | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Fair value based on NAV practical expedient | Overseas deposits | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Level
FAIR VALUE MEASUREMENTS - Level 3 fair value inputs (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Fair value | $ 829,156 | $ 770,923 |
Net derivative liability | (11,486) | (13,637) |
Fixed maturities | 12,041,799 | 12,468,205 |
CLO-Equities | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Fair value | 6,173 | 14,328 |
Other privately held investments | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Fair value | 70,011 | 36,934 |
Significant unobservable inputs (Level 3) | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Fair value | 76,184 | 51,262 |
Net derivative liability | (9,122) | (9,672) |
Fixed maturities | 14,909 | 8,021 |
Significant unobservable inputs (Level 3) | Valuation Technique, Discounted Cash Flow | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Net derivative liability | (9,122) | |
Significant unobservable inputs (Level 3) | Valuation, Market Approach | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Fixed maturities | 15,000 | |
Significant unobservable inputs (Level 3) | CLO-Equities | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Fair value | 6,173 | 14,328 |
Significant unobservable inputs (Level 3) | Other privately held investments | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Fair value | $ 70,011 | $ 36,934 |
Estimated maturity dates (years) | 5 years | |
Significant unobservable inputs (Level 3) | Other privately held investments | Valuation Technique, Discounted Cash Flow | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Fair value | $ 21,643 | |
Significant unobservable inputs (Level 3) | Other privately held investments | Valuation, Market Approach | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Fair value | $ 48,000 | |
Significant unobservable inputs (Level 3) | Other privately held investments | Weighted Average | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Estimated maturity dates (years) | 5 years | |
Significant unobservable inputs (Level 3) | CLO-Equities | CLO-Equities | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Estimated maturity dates (years) | 5 years | |
Significant unobservable inputs (Level 3) | CLO-Equities | CLO-Equities | Valuation Technique, Discounted Cash Flow | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Fair value | $ 6,173 | |
Significant unobservable inputs (Level 3) | CLO-Equities | CLO-Equities | Weighted Average | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Estimated maturity dates (years) | 5 years | |
Default rates | Significant unobservable inputs (Level 3) | Other privately held investments | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discounted cash flow | 0.005 | |
Default rates | Significant unobservable inputs (Level 3) | Other privately held investments | Weighted Average | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discounted cash flow | 0.005 | |
Default rates | Significant unobservable inputs (Level 3) | CLO-Equities | CLO-Equities | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discounted cash flow | 0.045 | |
Default rates | Significant unobservable inputs (Level 3) | CLO-Equities | CLO-Equities | Weighted Average | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discounted cash flow | 0.045 | |
Loss severity rate | Significant unobservable inputs (Level 3) | CLO-Equities | CLO-Equities | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discounted cash flow | 0.500 | |
Loss severity rate | Significant unobservable inputs (Level 3) | CLO-Equities | CLO-Equities | Weighted Average | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discounted cash flow | 0.500 | |
Collateral spreads | Significant unobservable inputs (Level 3) | CLO-Equities | CLO-Equities | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discounted cash flow | 0.030 | |
Collateral spreads | Significant unobservable inputs (Level 3) | CLO-Equities | CLO-Equities | Weighted Average | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discounted cash flow | 0.030 | |
Loss absorption yield | Significant unobservable inputs (Level 3) | Other privately held investments | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discounted cash flow | 0.010 | |
Loss absorption yield | Significant unobservable inputs (Level 3) | Other privately held investments | Weighted Average | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discounted cash flow | 0.010 | |
Discount rate | Significant unobservable inputs (Level 3) | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Derivative liability, measurement input | 0.004 | |
Discount rate | Significant unobservable inputs (Level 3) | Weighted Average | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Derivative liability, measurement input | 0.004 | |
Discount rate | Significant unobservable inputs (Level 3) | Other privately held investments | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discounted cash flow | 0.013 | |
Discount rate | Significant unobservable inputs (Level 3) | Other privately held investments | Weighted Average | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discounted cash flow | 0.013 |
FAIR VALUE MEASUREMENTS - Lev_2
FAIR VALUE MEASUREMENTS - Level 3 for financial instruments measured at fair value (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Opening balance | $ 59,283 | $ 152,468 |
Transfers into Level 3 | 9,091 | 0 |
Transfers out of Level 3 | 0 | (25,307) |
Included in net income | 23 | 22,683 |
Included in OCI | 312 | (3,840) |
Purchases | 28,006 | 22,500 |
Sales | 0 | (54,244) |
Settlements/ distributions | (5,622) | (54,977) |
Closing balance | 91,093 | 59,283 |
Change in unrealized investment gain/(loss) relating to assets held at the reporting date | 721 | 4,951 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Opening balance | 9,672 | 10,299 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Included in earnings | 9,421 | (627) |
Included in OCI | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Settlements/ distributions | (9,971) | 0 |
Closing balance | 9,122 | 9,672 |
Change in unrealized investment gain/(loss) relating to liabilities held at the reporting date | (550) | (627) |
Fixed maturities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Opening balance | 8,021 | 86,679 |
Transfers into Level 3 | 9,091 | 0 |
Transfers out of Level 3 | 0 | (25,307) |
Included in net income | 0 | 4,790 |
Included in OCI | 312 | (3,840) |
Purchases | 969 | 0 |
Sales | 0 | (6,068) |
Settlements/ distributions | (3,484) | (48,233) |
Closing balance | 14,909 | 8,021 |
Change in unrealized investment gain/(loss) relating to assets held at the reporting date | 0 | 0 |
Corporate debt | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Opening balance | 2,297 | 49,012 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Included in net income | 0 | 4,790 |
Included in OCI | 207 | (4,168) |
Purchases | 0 | 0 |
Sales | 0 | (6,068) |
Settlements/ distributions | 0 | (41,269) |
Closing balance | 2,504 | 2,297 |
Change in unrealized investment gain/(loss) relating to assets held at the reporting date | 0 | 0 |
CMBS | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Opening balance | 5,235 | 19,134 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | (7,077) |
Included in net income | 0 | 0 |
Included in OCI | (11) | 142 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Settlements/ distributions | (3,484) | (6,964) |
Closing balance | 1,740 | 5,235 |
Change in unrealized investment gain/(loss) relating to assets held at the reporting date | 0 | 0 |
ABS | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Opening balance | 489 | 18,533 |
Transfers into Level 3 | 9,091 | 0 |
Transfers out of Level 3 | 0 | (18,230) |
Included in net income | 0 | 0 |
Included in OCI | 116 | 186 |
Purchases | 969 | 0 |
Sales | 0 | 0 |
Settlements/ distributions | 0 | 0 |
Closing balance | 10,665 | 489 |
Change in unrealized investment gain/(loss) relating to assets held at the reporting date | 0 | 0 |
Other investments | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Opening balance | 51,262 | 65,789 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Included in net income | 23 | 17,893 |
Included in OCI | 0 | 0 |
Purchases | 27,037 | 22,500 |
Sales | 0 | (48,176) |
Settlements/ distributions | (2,138) | (6,744) |
Closing balance | 76,184 | 51,262 |
Change in unrealized investment gain/(loss) relating to assets held at the reporting date | 721 | 4,951 |
CLO-Equities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Opening balance | 14,328 | 21,271 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Included in net income | (6,017) | (199) |
Included in OCI | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Settlements/ distributions | (2,138) | (6,744) |
Closing balance | 6,173 | 14,328 |
Change in unrealized investment gain/(loss) relating to assets held at the reporting date | (5,319) | (199) |
Other privately held investments | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Opening balance | 36,934 | 44,518 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Included in net income | 6,040 | 18,092 |
Included in OCI | 0 | 0 |
Purchases | 27,037 | 22,500 |
Sales | 0 | (48,176) |
Settlements/ distributions | 0 | 0 |
Closing balance | 70,011 | 36,934 |
Change in unrealized investment gain/(loss) relating to assets held at the reporting date | 6,040 | 5,150 |
Derivative instruments | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Opening balance | 9,672 | 10,299 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Included in earnings | 9,421 | (627) |
Included in OCI | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Settlements/ distributions | (9,971) | 0 |
Closing balance | 9,122 | 9,672 |
Change in unrealized investment gain/(loss) relating to liabilities held at the reporting date | $ (550) | $ (627) |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Percentage of funds reported on a lag | 86.00% | 68.00% |
Reported Value Measurement | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | $ 1,310 | $ 1,808 |
Estimate of Fair Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | $ 1,485 | $ 1,896 |
DERIVATIVE INSTRUMENTS - Balanc
DERIVATIVE INSTRUMENTS - Balance sheet classification of derivatives recorded at fair value (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative asset fair value | $ 18,875 | $ 3,174 |
Derivative liability fair value | 11,486 | 13,637 |
Not Designated as Hedging Instruments | Other assets | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative asset fair value | 18,875 | 3,174 |
Not Designated as Hedging Instruments | Other liabilities | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative liability fair value | 11,486 | 13,637 |
Not Designated as Hedging Instruments | Investment Portfolio | Foreign exchange forward contracts | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative notional amount | 105,781 | 68,998 |
Not Designated as Hedging Instruments | Investment Portfolio | Foreign exchange forward contracts | Other assets | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative asset fair value | 2 | 0 |
Not Designated as Hedging Instruments | Investment Portfolio | Foreign exchange forward contracts | Other liabilities | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative liability fair value | 2,364 | 1,405 |
Not Designated as Hedging Instruments | Underwriting Portfolio | Foreign exchange forward contracts | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative notional amount | 1,197,012 | 1,038,630 |
Not Designated as Hedging Instruments | Underwriting Portfolio | Foreign exchange forward contracts | Other assets | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative asset fair value | 18,873 | 3,174 |
Not Designated as Hedging Instruments | Underwriting Portfolio | Foreign exchange forward contracts | Other liabilities | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative liability fair value | 0 | 2,560 |
Not Designated as Hedging Instruments | Underwriting Portfolio | Other underwriting-related contracts | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative notional amount | 75,000 | 85,000 |
Not Designated as Hedging Instruments | Underwriting Portfolio | Other underwriting-related contracts | Other assets | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative asset fair value | 0 | 0 |
Not Designated as Hedging Instruments | Underwriting Portfolio | Other underwriting-related contracts | Other liabilities | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative liability fair value | $ 9,122 | $ 9,672 |
DERIVATIVE INSTRUMENTS - Offset
DERIVATIVE INSTRUMENTS - Offsetting assets and liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Derivative assets | ||
Gross amounts | $ 27,765 | $ 7,673 |
Gross amounts offset | (8,890) | (4,499) |
Net Amounts | 18,875 | 3,174 |
Derivative liabilities | ||
Gross amounts | 20,376 | 18,136 |
Gross amounts offset | (8,890) | (4,499) |
Net Amounts | $ 11,486 | $ 13,637 |
DERIVATIVE INSTRUMENTS - Unreal
DERIVATIVE INSTRUMENTS - Unrealized and realized gains (losses) recognized in earnings for derivatives (Details) - Not Designated as Hedging Instruments - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Unrealized and Realized Gains (Losses) Recognized in Earnings for Derivatives Not Designated As Hedges [Line Items] | |||
Unrealized and realized gains (losses) recognized in earnings for derivatives not designated as hedges | $ 32,697 | $ (10,712) | $ 4,320 |
Investment Portfolio | Foreign exchange forward contracts | Net investment gains (losses) | |||
Unrealized and Realized Gains (Losses) Recognized in Earnings for Derivatives Not Designated As Hedges [Line Items] | |||
Unrealized and realized gains (losses) recognized in earnings for derivatives not designated as hedges | (2,434) | 1,854 | 3,446 |
Investment Portfolio | Interest rate swaps | Net investment gains (losses) | |||
Unrealized and Realized Gains (Losses) Recognized in Earnings for Derivatives Not Designated As Hedges [Line Items] | |||
Unrealized and realized gains (losses) recognized in earnings for derivatives not designated as hedges | 0 | (3,677) | 1,999 |
Underwriting Portfolio | Foreign exchange forward contracts | Foreign exchange gains (losses) | |||
Unrealized and Realized Gains (Losses) Recognized in Earnings for Derivatives Not Designated As Hedges [Line Items] | |||
Unrealized and realized gains (losses) recognized in earnings for derivatives not designated as hedges | 44,166 | (10,678) | (3,509) |
Underwriting Portfolio | Other underwriting-related contracts | Other insurance related income (losses) | |||
Unrealized and Realized Gains (Losses) Recognized in Earnings for Derivatives Not Designated As Hedges [Line Items] | |||
Unrealized and realized gains (losses) recognized in earnings for derivatives not designated as hedges | $ (9,035) | $ 1,789 | $ 2,384 |
RESERVE FOR LOSSES AND LOSS E_3
RESERVE FOR LOSSES AND LOSS EXPENSES - Narrative (Details) | 12 Months Ended | |||
Dec. 31, 2020 | Aug. 05, 2019 | Mar. 20, 2017 | Mar. 19, 2017 | |
Minimum | ||||
Claims Development [Line Items] | ||||
Development for an accident year or underwriting year, recognition period | 1 year | |||
Maximum | ||||
Claims Development [Line Items] | ||||
Development for an accident year or underwriting year, recognition period | 3 years | |||
Motor Reserve Class | Reinsurance | ||||
Claims Development [Line Items] | ||||
Discount rate | (0.25%) | (0.75%) | 2.50% |
RESERVE FOR LOSSES AND LOSS E_4
RESERVE FOR LOSSES AND LOSS EXPENSES - Reserve for losses and loss expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Insurance Loss Reserves [Abstract] | ||||
Reserve for reported losses and loss expenses | $ 5,331,900 | $ 4,860,916 | ||
Reserve for losses incurred but not reported | 8,594,866 | 7,891,165 | ||
Reserve for losses and loss expenses | $ 13,926,766 | $ 12,752,081 | $ 12,280,769 | $ 12,997,553 |
RESERVE FOR LOSSES AND LOSS E_5
RESERVE FOR LOSSES AND LOSS EXPENSES - Reserve Roll-Forward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Beginning and Ending Gross Unpaid Losses and Loss Expenses | |||
Gross reserve for losses and loss expenses, beginning of year | $ 12,752,081 | $ 12,280,769 | $ 12,997,553 |
Less reinsurance recoverable on unpaid losses, beginning of year | (3,877,756) | (3,501,669) | (3,159,514) |
Net reserve for unpaid losses and loss expenses, beginning of year | 8,874,325 | 8,779,100 | 9,838,039 |
Net incurred losses and loss expenses related to: | |||
Current year | 3,297,161 | 3,123,698 | 3,389,949 |
Prior years | (15,909) | (78,900) | (199,662) |
Net incurred losses and loss expenses | 3,281,252 | 3,044,798 | 3,190,287 |
Net paid losses and loss expenses related to: | |||
Current year | (571,442) | (598,988) | (724,199) |
Prior years | (2,365,959) | (2,371,637) | (2,368,615) |
Net paid losses and loss expenses | (2,937,401) | (2,970,625) | (3,092,814) |
Foreign exchange and other | 211,949 | 21,052 | (1,156,412) |
Net reserve for unpaid losses and loss expenses, end of year | 9,430,125 | 8,874,325 | 8,779,100 |
Reinsurance recoverable on unpaid losses, end of year | 4,496,641 | 3,877,756 | 3,501,669 |
Gross reserve for losses and loss expenses, end of year | $ 13,926,766 | $ 12,752,081 | $ 12,280,769 |
RESERVE FOR LOSSES AND LOSS E_6
RESERVE FOR LOSSES AND LOSS EXPENSES - Incurred losses narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 15, 2019 | Apr. 16, 2018 | Dec. 31, 2017 | |
Additional Information Related to Net Incurred Losses [Line Items] | ||||||
Net losses and loss expenses, net of reinstatement premiums | $ 3,297,161 | $ 3,123,698 | $ 3,389,949 | |||
Reinsurance recoverable on unpaid losses | 4,496,641 | 3,877,756 | 3,501,669 | $ 59,000 | $ 108,000 | $ 3,159,514 |
Catastrophe and Weather-related Events | ||||||
Additional Information Related to Net Incurred Losses [Line Items] | ||||||
Net losses and loss expenses, net of reinstatement premiums | $ 774,000 | $ 336,000 | 430,000 | |||
Syndicate 2007 | ||||||
Additional Information Related to Net Incurred Losses [Line Items] | ||||||
Ceded reserves for losses and loss expenses | $ 819,000 |
RESERVE FOR LOSSES AND LOSS E_7
RESERVE FOR LOSSES AND LOSS EXPENSES - Prior year development (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Prior years | $ 15,909 | $ 78,900 | $ 199,662 |
Insurance | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Prior years | 8,937 | 53,302 | 92,806 |
Reinsurance | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Prior years | $ 6,972 | $ 25,598 | $ 106,856 |
RESERVE FOR LOSSES AND LOSS E_8
RESERVE FOR LOSSES AND LOSS EXPENSES - Prior year reserve development by segment, reserving class and accident year (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Prior years | $ 15,909 | $ 78,900 | $ 199,662 |
Insurance | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Prior years | 8,937 | 53,302 | 92,806 |
Insurance | Property and other | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Prior years | 46,791 | 11,042 | 64,781 |
Insurance | Marine | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Prior years | 16,780 | 33,260 | 17,913 |
Insurance | Aviation | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Prior years | 6,416 | 3,741 | (2,938) |
Insurance | Credit and political risk | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Prior years | (745) | 18,810 | 3,609 |
Insurance | Professional lines | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Prior years | (35,661) | 11,721 | 31,687 |
Insurance | Liability | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Prior years | (24,644) | (25,272) | (22,246) |
Reinsurance | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Prior years | 6,972 | 25,598 | 106,856 |
Reinsurance | Property and other | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Prior years | (5,935) | (133,448) | 6,012 |
Reinsurance | Professional lines | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Prior years | (15,352) | 3,668 | 21,310 |
Reinsurance | Liability | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Prior years | (29,656) | 31,283 | 23,105 |
Reinsurance | Credit and surety | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Prior years | 36,829 | 53,223 | 33,497 |
Reinsurance | Motor | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Prior years | $ 21,086 | $ 70,872 | $ 22,932 |
RESERVE FOR LOSSES AND LOSS E_9
RESERVE FOR LOSSES AND LOSS EXPENSES - Incurred claims and allocated claim adjustment expenses, net of reinsurance (Details) $ in Thousands | Dec. 31, 2020USD ($)claim | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) |
Insurance | Property and other | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 4,584,024 | |||||||||
Insurance | Property and other | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 277,515 | $ 277,792 | $ 278,688 | $ 280,395 | $ 279,964 | $ 281,155 | $ 284,201 | $ 304,702 | $ 325,274 | $ 347,569 |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ (231) | |||||||||
Cumulative number of reported claims | claim | 6,367 | |||||||||
Insurance | Property and other | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 343,619 | 343,934 | 353,971 | 354,801 | 360,525 | 364,667 | 385,068 | 403,254 | 393,170 | |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ (21) | |||||||||
Cumulative number of reported claims | claim | 29,942 | |||||||||
Insurance | Property and other | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 275,712 | 276,229 | 279,922 | 269,490 | 269,831 | 273,775 | 300,682 | 310,601 | ||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 1,135 | |||||||||
Cumulative number of reported claims | claim | 53,204 | |||||||||
Insurance | Property and other | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 323,736 | 328,404 | 330,011 | 331,142 | 347,227 | 357,885 | 362,684 | |||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 4,334 | |||||||||
Cumulative number of reported claims | claim | 62,371 | |||||||||
Insurance | Property and other | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 257,419 | 255,319 | 258,190 | 262,733 | 273,606 | 280,489 | ||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 1,763 | |||||||||
Cumulative number of reported claims | claim | 48,469 | |||||||||
Insurance | Property and other | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 356,016 | 362,103 | 375,260 | 384,230 | 355,771 | |||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 3,427 | |||||||||
Cumulative number of reported claims | claim | 93,792 | |||||||||
Insurance | Property and other | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 813,005 | 824,039 | 838,640 | 911,274 | ||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ (5,501) | |||||||||
Cumulative number of reported claims | claim | 698,289 | |||||||||
Insurance | Property and other | Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 754,741 | 775,861 | 742,601 | |||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 10,217 | |||||||||
Cumulative number of reported claims | claim | 731,142 | |||||||||
Insurance | Property and other | Accident Year 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 448,467 | 454,386 | ||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 11,186 | |||||||||
Cumulative number of reported claims | claim | 659,908 | |||||||||
Insurance | Property and other | Accident Year 2020 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 733,794 | |||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 308,515 | |||||||||
Cumulative number of reported claims | claim | 524,539 | |||||||||
Insurance | Marine | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 1,132,710 | |||||||||
Insurance | Marine | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 67,054 | 68,861 | 69,555 | 68,860 | 66,560 | 66,320 | 66,351 | 73,257 | 79,215 | 90,960 |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ (1,250) | |||||||||
Cumulative number of reported claims | claim | 3,830 | |||||||||
Insurance | Marine | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 66,026 | 63,067 | 73,581 | 75,326 | 72,708 | 71,663 | 69,484 | 83,431 | 89,889 | |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 7,249 | |||||||||
Cumulative number of reported claims | claim | 4,135 | |||||||||
Insurance | Marine | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 81,774 | 82,622 | 83,594 | 83,984 | 98,759 | 97,660 | 102,110 | 80,641 | ||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 846 | |||||||||
Cumulative number of reported claims | claim | 2,354 | |||||||||
Insurance | Marine | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 42,221 | 48,470 | 46,705 | 44,979 | 49,238 | 44,936 | 59,786 | |||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ (2,231) | |||||||||
Cumulative number of reported claims | claim | 2,166 | |||||||||
Insurance | Marine | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 123,836 | 118,861 | 131,483 | 138,704 | 142,383 | 160,793 | ||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 7,507 | |||||||||
Cumulative number of reported claims | claim | 2,231 | |||||||||
Insurance | Marine | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 70,491 | 71,694 | 76,805 | 78,953 | 86,464 | |||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 3,300 | |||||||||
Cumulative number of reported claims | claim | 2,857 | |||||||||
Insurance | Marine | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 158,812 | 160,919 | 172,077 | 207,378 | ||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 13,932 | |||||||||
Cumulative number of reported claims | claim | 4,005 | |||||||||
Insurance | Marine | Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 183,415 | 194,257 | 186,550 | |||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 34,579 | |||||||||
Cumulative number of reported claims | claim | 4,370 | |||||||||
Insurance | Marine | Accident Year 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 168,318 | 170,489 | ||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 47,064 | |||||||||
Cumulative number of reported claims | claim | 4,475 | |||||||||
Insurance | Marine | Accident Year 2020 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 170,763 | |||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 107,624 | |||||||||
Cumulative number of reported claims | claim | 3,558 | |||||||||
Insurance | Aviation | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 321,164 | |||||||||
Insurance | Aviation | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 6,582 | 6,976 | 7,217 | 7,259 | 7,301 | 8,447 | 9,576 | 12,799 | 15,407 | 17,727 |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 56 | |||||||||
Cumulative number of reported claims | claim | 4,203 | |||||||||
Insurance | Aviation | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 7,346 | 7,428 | 7,635 | 7,747 | 7,804 | 8,752 | 10,832 | 10,705 | 12,808 | |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 59 | |||||||||
Cumulative number of reported claims | claim | 2,859 | |||||||||
Insurance | Aviation | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 16,700 | 16,793 | 15,502 | 15,615 | 15,278 | 15,234 | 16,349 | 15,657 | ||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 149 | |||||||||
Cumulative number of reported claims | claim | 3,020 | |||||||||
Insurance | Aviation | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 17,370 | 19,118 | 21,876 | 21,818 | 24,373 | 23,050 | 20,438 | |||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 58 | |||||||||
Cumulative number of reported claims | claim | 3,534 | |||||||||
Insurance | Aviation | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 28,038 | 27,557 | 29,613 | 29,877 | 28,534 | 29,796 | ||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 86 | |||||||||
Cumulative number of reported claims | claim | 4,155 | |||||||||
Insurance | Aviation | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 32,525 | 31,796 | 33,728 | 33,553 | 29,194 | |||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 812 | |||||||||
Cumulative number of reported claims | claim | 4,091 | |||||||||
Insurance | Aviation | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 70,029 | 67,644 | 62,643 | 56,102 | ||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ (1,046) | |||||||||
Cumulative number of reported claims | claim | 4,347 | |||||||||
Insurance | Aviation | Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 62,696 | 64,250 | 58,340 | |||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 3,262 | |||||||||
Cumulative number of reported claims | claim | 4,405 | |||||||||
Insurance | Aviation | Accident Year 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 42,786 | 44,653 | ||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 5,387 | |||||||||
Cumulative number of reported claims | claim | 2,785 | |||||||||
Insurance | Aviation | Accident Year 2020 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 37,092 | |||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 22,625 | |||||||||
Cumulative number of reported claims | claim | 1,297 | |||||||||
Insurance | Credit and political risk | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 354,068 | |||||||||
Insurance | Credit and political risk | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 27,754 | 27,904 | 27,904 | 33,609 | 45,036 | 48,333 | 48,361 | 47,706 | 48,665 | 58,154 |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 118 | |||||||||
Cumulative number of reported claims | claim | 4 | |||||||||
Insurance | Credit and political risk | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 199 | 199 | 199 | 47 | 10,323 | 12,447 | 12,435 | 15,672 | 32,602 | |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 155 | |||||||||
Cumulative number of reported claims | claim | 4 | |||||||||
Insurance | Credit and political risk | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 12,739 | 12,377 | 14,067 | 14,942 | 9,880 | 9,759 | 25,684 | 26,439 | ||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 4,432 | |||||||||
Cumulative number of reported claims | claim | 2 | |||||||||
Insurance | Credit and political risk | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 70,747 | 71,275 | 69,589 | 68,324 | 67,109 | 70,713 | 38,825 | |||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 2,123 | |||||||||
Cumulative number of reported claims | claim | 6 | |||||||||
Insurance | Credit and political risk | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 24,851 | 25,930 | 26,012 | 27,524 | 30,368 | 30,329 | ||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 1,542 | |||||||||
Cumulative number of reported claims | claim | 2 | |||||||||
Insurance | Credit and political risk | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 25,612 | 41,826 | 41,256 | 43,746 | 47,736 | |||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 2,061 | |||||||||
Cumulative number of reported claims | claim | 1 | |||||||||
Insurance | Credit and political risk | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 18,744 | 26,552 | 33,524 | 48,086 | ||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 8,163 | |||||||||
Cumulative number of reported claims | claim | 3 | |||||||||
Insurance | Credit and political risk | Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 32,740 | 34,116 | 45,047 | |||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 12,279 | |||||||||
Cumulative number of reported claims | claim | 1 | |||||||||
Insurance | Credit and political risk | Accident Year 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 80,181 | 51,638 | ||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 23,821 | |||||||||
Cumulative number of reported claims | claim | 14 | |||||||||
Insurance | Credit and political risk | Accident Year 2020 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 60,501 | |||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 48,752 | |||||||||
Cumulative number of reported claims | claim | 24 | |||||||||
Insurance | Professional lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 3,810,441 | |||||||||
Insurance | Professional lines | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 345,862 | 351,191 | 353,862 | 353,336 | 344,964 | 331,903 | 327,971 | 335,265 | 316,639 | 314,835 |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 22,156 | |||||||||
Cumulative number of reported claims | claim | 7,239 | |||||||||
Insurance | Professional lines | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 335,671 | 353,860 | 355,893 | 367,369 | 365,291 | 377,895 | 378,793 | 377,296 | 330,010 | |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 22,818 | |||||||||
Cumulative number of reported claims | claim | 8,334 | |||||||||
Insurance | Professional lines | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 340,078 | 336,933 | 358,938 | 356,643 | 367,072 | 400,434 | 399,136 | 385,460 | ||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 41,955 | |||||||||
Cumulative number of reported claims | claim | 9,457 | |||||||||
Insurance | Professional lines | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 350,182 | 356,930 | 374,397 | 394,748 | 423,998 | 413,840 | 414,720 | |||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 63,136 | |||||||||
Cumulative number of reported claims | claim | 9,825 | |||||||||
Insurance | Professional lines | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 329,502 | 346,488 | 359,619 | 384,477 | 379,036 | 379,378 | ||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 54,530 | |||||||||
Cumulative number of reported claims | claim | 10,493 | |||||||||
Insurance | Professional lines | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 372,198 | 361,799 | 360,116 | 353,679 | 351,055 | |||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 76,612 | |||||||||
Cumulative number of reported claims | claim | 11,836 | |||||||||
Insurance | Professional lines | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 435,827 | 439,134 | 403,257 | 396,543 | ||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 154,318 | |||||||||
Cumulative number of reported claims | claim | 13,670 | |||||||||
Insurance | Professional lines | Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 432,338 | 378,822 | 365,577 | |||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 196,909 | |||||||||
Cumulative number of reported claims | claim | 16,453 | |||||||||
Insurance | Professional lines | Accident Year 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 429,729 | 407,043 | ||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 248,218 | |||||||||
Cumulative number of reported claims | claim | 16,369 | |||||||||
Insurance | Professional lines | Accident Year 2020 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 439,054 | |||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 384,984 | |||||||||
Cumulative number of reported claims | claim | 9,284 | |||||||||
Insurance | Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 1,490,684 | |||||||||
Insurance | Liability | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 85,085 | 85,037 | 82,658 | 82,313 | 84,079 | 85,792 | 87,771 | 83,925 | 75,329 | 72,584 |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 12,780 | |||||||||
Cumulative number of reported claims | claim | 3,691 | |||||||||
Insurance | Liability | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 64,543 | 67,239 | 72,728 | 75,698 | 68,659 | 71,475 | 74,136 | 71,711 | 70,883 | |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 14,803 | |||||||||
Cumulative number of reported claims | claim | 3,312 | |||||||||
Insurance | Liability | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 89,908 | 91,949 | 95,989 | 93,688 | 88,248 | 95,181 | 95,315 | 93,238 | ||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 11,899 | |||||||||
Cumulative number of reported claims | claim | 3,693 | |||||||||
Insurance | Liability | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 132,596 | 131,490 | 132,034 | 130,688 | 129,828 | 124,368 | 107,161 | |||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 18,701 | |||||||||
Cumulative number of reported claims | claim | 5,087 | |||||||||
Insurance | Liability | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 188,296 | 182,959 | 165,202 | 137,718 | 127,423 | 128,438 | ||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 34,876 | |||||||||
Cumulative number of reported claims | claim | 6,351 | |||||||||
Insurance | Liability | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 120,442 | 127,691 | 129,069 | 130,249 | 124,331 | |||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 36,430 | |||||||||
Cumulative number of reported claims | claim | 7,262 | |||||||||
Insurance | Liability | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 200,362 | 183,746 | 167,673 | 167,648 | ||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 47,636 | |||||||||
Cumulative number of reported claims | claim | 8,542 | |||||||||
Insurance | Liability | Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 190,741 | 167,564 | 169,557 | |||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 78,563 | |||||||||
Cumulative number of reported claims | claim | 8,255 | |||||||||
Insurance | Liability | Accident Year 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 193,686 | 192,320 | ||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 109,765 | |||||||||
Cumulative number of reported claims | claim | 7,119 | |||||||||
Insurance | Liability | Accident Year 2020 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 225,025 | |||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 204,825 | |||||||||
Cumulative number of reported claims | claim | 3,977 | |||||||||
Reinsurance | Property and other | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 7,608,090 | |||||||||
Reinsurance | Property and other | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 1,068,938 | 1,072,109 | 1,070,875 | 1,069,295 | 1,070,969 | 1,096,469 | 1,113,395 | 1,156,008 | 1,156,022 | 1,147,558 |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 4,016 | |||||||||
Reinsurance | Property and other | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 457,372 | 457,777 | 461,000 | 459,625 | 464,567 | 480,467 | 511,157 | 526,700 | 558,114 | |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 747 | |||||||||
Reinsurance | Property and other | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 505,548 | 506,213 | 509,582 | 510,134 | 516,164 | 536,423 | 567,292 | 583,687 | ||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 738 | |||||||||
Reinsurance | Property and other | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 521,230 | 524,099 | 524,785 | 526,767 | 539,285 | 565,279 | 544,212 | |||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 39,729 | |||||||||
Reinsurance | Property and other | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 461,382 | 455,873 | 459,819 | 465,427 | 470,515 | 481,328 | ||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 6,756 | |||||||||
Reinsurance | Property and other | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 628,910 | 626,868 | 630,447 | 644,393 | 623,624 | |||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 2,351 | |||||||||
Reinsurance | Property and other | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 1,106,201 | 1,098,312 | 1,080,866 | 1,101,428 | ||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 47,451 | |||||||||
Reinsurance | Property and other | Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 1,025,683 | 1,020,689 | 889,102 | |||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 68,161 | |||||||||
Reinsurance | Property and other | Accident Year 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 977,194 | 966,716 | ||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 183,064 | |||||||||
Reinsurance | Property and other | Accident Year 2020 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 855,632 | |||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 442,418 | |||||||||
Reinsurance | Professional lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 1,878,975 | |||||||||
Reinsurance | Professional lines | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 163,620 | 167,553 | 178,046 | 201,175 | 209,133 | 209,993 | 212,362 | 203,632 | 202,548 | 202,330 |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 8,396 | |||||||||
Reinsurance | Professional lines | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 204,530 | 207,936 | 215,159 | 213,805 | 223,661 | 224,912 | 222,578 | 217,148 | 210,543 | |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 10,839 | |||||||||
Reinsurance | Professional lines | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 170,614 | 183,035 | 207,425 | 214,668 | 215,064 | 216,716 | 215,431 | 210,173 | ||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 17,670 | |||||||||
Reinsurance | Professional lines | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 230,034 | 231,153 | 234,567 | 220,167 | 220,120 | 220,132 | 220,070 | |||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 21,710 | |||||||||
Reinsurance | Professional lines | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 230,331 | 233,056 | 226,092 | 215,362 | 213,076 | 212,683 | ||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 37,004 | |||||||||
Reinsurance | Professional lines | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 257,160 | 229,187 | 200,808 | 196,922 | 195,753 | |||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 55,800 | |||||||||
Reinsurance | Professional lines | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 180,501 | 163,474 | 157,025 | 156,074 | ||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 64,159 | |||||||||
Reinsurance | Professional lines | Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 158,552 | 151,299 | 148,348 | |||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 86,571 | |||||||||
Reinsurance | Professional lines | Accident Year 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 142,176 | 141,702 | ||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 101,309 | |||||||||
Reinsurance | Professional lines | Accident Year 2020 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 141,457 | |||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 123,152 | |||||||||
Reinsurance | Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 2,310,074 | |||||||||
Reinsurance | Liability | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 193,320 | 191,594 | 194,372 | 196,289 | 197,061 | 200,328 | 193,629 | 175,605 | 174,227 | 174,639 |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 6,656 | |||||||||
Reinsurance | Liability | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 161,267 | 159,163 | 165,296 | 172,431 | 175,105 | 173,932 | 169,091 | 164,844 | 168,766 | |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 10,642 | |||||||||
Reinsurance | Liability | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 156,342 | 157,813 | 178,529 | 185,681 | 186,062 | 184,048 | 177,377 | 173,637 | ||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 16,314 | |||||||||
Reinsurance | Liability | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 189,296 | 199,173 | 201,313 | 202,487 | 206,463 | 204,684 | 201,352 | |||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 28,929 | |||||||||
Reinsurance | Liability | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 215,178 | 215,250 | 217,535 | 217,784 | 216,838 | 216,431 | ||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 48,999 | |||||||||
Reinsurance | Liability | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 267,235 | 256,767 | 253,506 | 248,194 | 242,579 | |||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 73,124 | |||||||||
Reinsurance | Liability | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 290,621 | 281,677 | 273,664 | 278,204 | ||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 95,966 | |||||||||
Reinsurance | Liability | Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 277,824 | 272,102 | 267,162 | |||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 127,342 | |||||||||
Reinsurance | Liability | Accident Year 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 275,090 | 265,317 | ||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 186,427 | |||||||||
Reinsurance | Liability | Accident Year 2020 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 283,901 | |||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 239,574 | |||||||||
Reinsurance | Credit and surety | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 1,143,639 | |||||||||
Reinsurance | Credit and surety | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 100,503 | 102,612 | 105,776 | 106,414 | 108,220 | 117,020 | 119,067 | 111,684 | 113,314 | 124,676 |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 1,102 | |||||||||
Reinsurance | Credit and surety | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 127,775 | 130,049 | 133,199 | 136,944 | 145,254 | 153,928 | 156,952 | 154,131 | 164,496 | |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 2,141 | |||||||||
Reinsurance | Credit and surety | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 131,791 | 128,982 | 128,951 | 140,569 | 145,059 | 149,059 | 158,105 | 168,742 | ||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 2,600 | |||||||||
Reinsurance | Credit and surety | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 126,854 | 130,638 | 132,014 | 143,931 | 147,688 | 140,462 | 139,551 | |||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 3,602 | |||||||||
Reinsurance | Credit and surety | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 143,946 | 142,908 | 162,359 | 166,901 | 172,064 | 164,357 | ||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 4,697 | |||||||||
Reinsurance | Credit and surety | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 119,640 | 127,556 | 153,816 | 145,838 | 145,370 | |||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 3,335 | |||||||||
Reinsurance | Credit and surety | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 122,789 | 131,559 | 137,372 | 142,334 | ||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 4,399 | |||||||||
Reinsurance | Credit and surety | Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 120,639 | 125,256 | 114,691 | |||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 30,189 | |||||||||
Reinsurance | Credit and surety | Accident Year 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 72,559 | 77,203 | ||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 17,807 | |||||||||
Reinsurance | Credit and surety | Accident Year 2020 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 77,143 | |||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 39,026 | |||||||||
Reinsurance | Motor | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 2,407,463 | |||||||||
Reinsurance | Motor | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 139,182 | 142,017 | 150,105 | 155,648 | 166,869 | 176,048 | 179,943 | 173,561 | 169,341 | $ 164,847 |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 17,768 | |||||||||
Reinsurance | Motor | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 131,937 | 131,573 | 140,251 | 143,492 | 153,524 | 158,734 | 166,747 | 179,151 | $ 188,256 | |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 13,920 | |||||||||
Reinsurance | Motor | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 129,238 | 132,624 | 141,827 | 145,148 | 148,804 | 158,838 | 171,275 | $ 172,316 | ||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 12,486 | |||||||||
Reinsurance | Motor | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 175,871 | 179,646 | 183,197 | 187,883 | 191,121 | 196,133 | $ 192,457 | |||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 6,713 | |||||||||
Reinsurance | Motor | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 223,532 | 225,413 | 237,299 | 235,796 | 231,712 | $ 233,605 | ||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 11,590 | |||||||||
Reinsurance | Motor | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 261,473 | 270,554 | 281,659 | 279,115 | $ 257,429 | |||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 11,999 | |||||||||
Reinsurance | Motor | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 378,976 | 377,292 | 396,370 | $ 379,810 | ||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 37,506 | |||||||||
Reinsurance | Motor | Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 391,410 | 378,515 | $ 375,513 | |||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 55,538 | |||||||||
Reinsurance | Motor | Accident Year 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 354,568 | $ 354,221 | ||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 79,778 | |||||||||
Reinsurance | Motor | Accident Year 2020 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 221,276 | |||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 152,472 |
RESERVE FOR LOSSES AND LOSS _10
RESERVE FOR LOSSES AND LOSS EXPENSES - Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Claims Development [Line Items] | ||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ 9,392,938 | |||||||||
Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 3,937,283 | |||||||||
Insurance | Property and other | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 3,796,262 | |||||||||
All outstanding liabilities before 2011, net of reinsurance | 7,141 | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 794,903 | |||||||||
Insurance | Property and other | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 270,507 | $ 270,516 | $ 270,546 | $ 270,104 | $ 269,423 | $ 269,626 | $ 270,636 | $ 248,346 | $ 191,823 | $ 83,511 |
Insurance | Property and other | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 317,803 | 317,574 | 315,466 | 315,391 | 310,171 | 302,638 | 279,588 | 214,771 | 77,794 | |
Insurance | Property and other | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 269,598 | 265,749 | 263,930 | 260,895 | 249,852 | 238,808 | 199,930 | 76,179 | ||
Insurance | Property and other | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 317,306 | 320,597 | 319,414 | 315,212 | 308,010 | 261,155 | 133,451 | |||
Insurance | Property and other | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 251,758 | 244,916 | 244,205 | 229,901 | 204,862 | 100,483 | ||||
Insurance | Property and other | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 345,188 | 343,839 | 335,173 | 294,777 | 126,232 | |||||
Insurance | Property and other | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 781,152 | 751,394 | 634,649 | 256,136 | ||||||
Insurance | Property and other | Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 693,287 | 592,507 | 292,977 | |||||||
Insurance | Property and other | Accident Year 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 330,268 | 197,703 | ||||||||
Insurance | Property and other | Accident Year 2020 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 219,395 | |||||||||
Insurance | Marine | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 776,865 | |||||||||
All outstanding liabilities before 2011, net of reinsurance | 6,786 | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 362,631 | |||||||||
Insurance | Marine | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 68,022 | 68,051 | 67,560 | 65,512 | 61,063 | 60,340 | 58,465 | 55,329 | 44,483 | 26,467 |
Insurance | Marine | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 56,689 | 56,524 | 55,387 | 53,309 | 50,865 | 50,028 | 45,197 | 38,820 | 10,752 | |
Insurance | Marine | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 79,683 | 78,396 | 78,245 | 67,196 | 64,497 | 56,126 | 44,931 | 19,577 | ||
Insurance | Marine | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 42,945 | 41,788 | 36,681 | 27,462 | 27,529 | 15,418 | 6,365 | |||
Insurance | Marine | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 115,391 | 113,818 | 112,390 | 109,431 | 55,425 | 21,467 | ||||
Insurance | Marine | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 64,645 | 63,829 | 57,552 | 31,890 | 12,498 | |||||
Insurance | Marine | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 117,253 | 92,848 | 68,709 | 14,634 | ||||||
Insurance | Marine | Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 117,629 | 87,150 | 27,218 | |||||||
Insurance | Marine | Accident Year 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 76,175 | 36,354 | ||||||||
Insurance | Marine | Accident Year 2020 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 38,433 | |||||||||
Insurance | Aviation | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 243,651 | |||||||||
All outstanding liabilities before 2011, net of reinsurance | 6,511 | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 84,024 | |||||||||
Insurance | Aviation | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 6,252 | 6,244 | 6,199 | 6,057 | 5,836 | 5,584 | 5,047 | 4,527 | 2,834 | 639 |
Insurance | Aviation | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 7,134 | 7,136 | 7,201 | 7,087 | 6,863 | 5,966 | 4,166 | 2,872 | 958 | |
Insurance | Aviation | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 15,976 | 14,516 | 14,195 | 13,585 | 11,474 | 9,767 | 7,339 | 4,402 | ||
Insurance | Aviation | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 15,044 | 14,874 | 14,509 | 13,871 | 11,711 | 8,035 | 3,990 | |||
Insurance | Aviation | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 26,026 | 24,716 | 23,253 | 20,990 | 16,182 | 8,092 | ||||
Insurance | Aviation | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 29,117 | 27,879 | 26,311 | 19,310 | 10,424 | |||||
Insurance | Aviation | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 59,895 | 51,512 | 40,811 | 21,458 | ||||||
Insurance | Aviation | Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 48,088 | 40,713 | 21,544 | |||||||
Insurance | Aviation | Accident Year 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 29,808 | 18,465 | ||||||||
Insurance | Aviation | Accident Year 2020 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 6,311 | |||||||||
Insurance | Credit and political risk | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 243,467 | |||||||||
All outstanding liabilities before 2011, net of reinsurance | (3,957) | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 106,644 | |||||||||
Insurance | Credit and political risk | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 27,636 | 27,636 | 27,636 | 27,636 | 27,636 | 27,636 | 27,636 | 27,636 | 37,205 | 32,788 |
Insurance | Credit and political risk | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 44 | 44 | 44 | 42 | 40 | 0 | 0 | 0 | 0 | |
Insurance | Credit and political risk | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 13,828 | 13,828 | 13,828 | 11,769 | 5,216 | 3,726 | 2,235 | 745 | ||
Insurance | Credit and political risk | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 70,224 | 64,051 | 57,858 | 57,858 | 61,108 | 39,952 | 1,924 | |||
Insurance | Credit and political risk | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 23,309 | 23,309 | 23,309 | 23,309 | 23,309 | 0 | ||||
Insurance | Credit and political risk | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 23,551 | 23,551 | 23,551 | 23,551 | 0 | |||||
Insurance | Credit and political risk | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 12,103 | 9,615 | 4,305 | 396 | ||||||
Insurance | Credit and political risk | Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 16,152 | 14,095 | 5,751 | |||||||
Insurance | Credit and political risk | Accident Year 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 46,797 | 16,260 | ||||||||
Insurance | Credit and political risk | Accident Year 2020 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 9,823 | |||||||||
Insurance | Professional lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 2,119,056 | |||||||||
All outstanding liabilities before 2011, net of reinsurance | 94,767 | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 1,786,152 | |||||||||
Insurance | Professional lines | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 318,439 | 303,147 | 295,434 | 284,246 | 239,092 | 166,417 | 109,183 | 74,932 | 33,058 | 7,464 |
Insurance | Professional lines | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 299,719 | 282,970 | 274,615 | 255,108 | 231,960 | 185,091 | 100,608 | 41,586 | 7,830 | |
Insurance | Professional lines | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 278,086 | 265,346 | 244,566 | 214,481 | 176,846 | 130,341 | 73,347 | 17,732 | ||
Insurance | Professional lines | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 254,655 | 244,832 | 225,591 | 193,659 | 131,018 | 71,224 | 23,616 | |||
Insurance | Professional lines | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 243,519 | 204,480 | 170,331 | 138,369 | 67,994 | 20,376 | ||||
Insurance | Professional lines | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 235,346 | 193,151 | 147,958 | 71,316 | 15,924 | |||||
Insurance | Professional lines | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 207,157 | 140,047 | 72,501 | 21,039 | ||||||
Insurance | Professional lines | Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 156,052 | 83,623 | 21,346 | |||||||
Insurance | Professional lines | Accident Year 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 99,594 | 28,265 | ||||||||
Insurance | Professional lines | Accident Year 2020 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 26,489 | |||||||||
Insurance | Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 741,261 | |||||||||
All outstanding liabilities before 2011, net of reinsurance | 53,506 | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 802,929 | |||||||||
Insurance | Liability | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 72,023 | 67,114 | 62,151 | 60,261 | 54,996 | 46,074 | 38,377 | 20,190 | 10,540 | 2,761 |
Insurance | Liability | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 48,317 | 48,035 | 46,541 | 42,741 | 37,140 | 30,146 | 15,412 | 5,515 | 1,631 | |
Insurance | Liability | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 73,320 | 71,989 | 66,970 | 60,011 | 42,056 | 33,326 | 23,287 | 2,364 | ||
Insurance | Liability | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 103,063 | 93,589 | 84,389 | 71,609 | 49,861 | 18,665 | 1,419 | |||
Insurance | Liability | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 141,062 | 120,357 | 92,753 | 39,718 | 22,441 | 5,440 | ||||
Insurance | Liability | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 66,437 | 56,497 | 36,404 | 23,326 | 6,333 | |||||
Insurance | Liability | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 116,232 | 59,432 | 29,687 | 5,481 | ||||||
Insurance | Liability | Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 72,604 | 35,056 | 9,554 | |||||||
Insurance | Liability | Accident Year 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 40,047 | 7,900 | ||||||||
Insurance | Liability | Accident Year 2020 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 8,156 | |||||||||
Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 5,455,655 | |||||||||
Reinsurance | Property and other | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 5,983,069 | |||||||||
All outstanding liabilities before 2011, net of reinsurance | 14,996 | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 1,640,017 | |||||||||
Reinsurance | Property and other | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 1,052,937 | 1,048,430 | 1,042,203 | 1,039,375 | 1,024,187 | 950,247 | 919,965 | 817,211 | 605,668 | 261,198 |
Reinsurance | Property and other | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 437,895 | 431,573 | 418,995 | 416,897 | 407,161 | 392,448 | 369,726 | 296,496 | 123,594 | |
Reinsurance | Property and other | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 494,554 | 489,337 | 488,626 | 487,161 | 477,155 | 446,221 | 328,273 | 107,883 | ||
Reinsurance | Property and other | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 469,836 | 467,589 | 462,510 | 456,267 | 438,269 | 355,383 | 102,394 | |||
Reinsurance | Property and other | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 429,278 | 418,506 | 405,736 | 372,981 | 268,037 | 71,438 | ||||
Reinsurance | Property and other | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 592,463 | 570,973 | 527,359 | 381,965 | 128,439 | |||||
Reinsurance | Property and other | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 929,367 | 860,241 | 720,708 | 251,905 | ||||||
Reinsurance | Property and other | Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 798,684 | 654,299 | 196,512 | |||||||
Reinsurance | Property and other | Accident Year 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 593,715 | 161,854 | ||||||||
Reinsurance | Property and other | Accident Year 2020 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 184,340 | |||||||||
Reinsurance | Professional lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 954,088 | |||||||||
All outstanding liabilities before 2011, net of reinsurance | 65,680 | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 990,567 | |||||||||
Reinsurance | Professional lines | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 138,436 | 136,934 | 130,411 | 120,088 | 103,322 | 85,065 | 57,404 | 30,342 | 11,836 | 1,510 |
Reinsurance | Professional lines | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 156,191 | 146,517 | 132,392 | 107,641 | 86,240 | 53,827 | 29,747 | 10,453 | 780 | |
Reinsurance | Professional lines | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 129,296 | 123,927 | 105,398 | 81,967 | 65,218 | 30,676 | 12,132 | 1,069 | ||
Reinsurance | Professional lines | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 159,457 | 147,649 | 109,581 | 74,799 | 48,957 | 13,089 | 2,020 | |||
Reinsurance | Professional lines | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 132,417 | 112,228 | 79,330 | 41,600 | 13,507 | 3,134 | ||||
Reinsurance | Professional lines | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 125,847 | 95,727 | 52,820 | 20,646 | 1,786 | |||||
Reinsurance | Professional lines | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 63,183 | 40,082 | 15,082 | 2,815 | ||||||
Reinsurance | Professional lines | Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 31,594 | 2,702 | 272 | |||||||
Reinsurance | Professional lines | Accident Year 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 13,843 | 377 | ||||||||
Reinsurance | Professional lines | Accident Year 2020 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 3,824 | |||||||||
Reinsurance | Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 1,085,264 | |||||||||
All outstanding liabilities before 2011, net of reinsurance | 95,411 | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 1,320,221 | |||||||||
Reinsurance | Liability | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 150,790 | 142,173 | 136,200 | 123,781 | 112,649 | 92,760 | 70,339 | 40,027 | 21,305 | 5,202 |
Reinsurance | Liability | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 134,789 | 126,298 | 115,874 | 101,391 | 78,405 | 58,881 | 28,426 | 12,812 | 3,545 | |
Reinsurance | Liability | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 123,774 | 113,217 | 102,678 | 88,334 | 69,100 | 52,364 | 22,262 | 5,977 | ||
Reinsurance | Liability | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 131,002 | 110,511 | 89,760 | 70,400 | 48,503 | 28,700 | 7,112 | |||
Reinsurance | Liability | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 131,327 | 109,349 | 81,010 | 54,640 | 27,476 | 7,274 | ||||
Reinsurance | Liability | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 143,917 | 112,434 | 69,903 | 37,831 | 11,886 | |||||
Reinsurance | Liability | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 121,535 | 78,830 | 42,218 | 12,448 | ||||||
Reinsurance | Liability | Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 85,671 | 50,223 | 19,369 | |||||||
Reinsurance | Liability | Accident Year 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 45,511 | 19,334 | ||||||||
Reinsurance | Liability | Accident Year 2020 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 16,948 | |||||||||
Reinsurance | Credit and surety | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 920,253 | |||||||||
All outstanding liabilities before 2011, net of reinsurance | 20,223 | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 243,609 | |||||||||
Reinsurance | Credit and surety | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 95,734 | 95,042 | 94,208 | 92,557 | 90,181 | 87,860 | 83,199 | 75,122 | 56,811 | 22,714 |
Reinsurance | Credit and surety | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 118,948 | 118,514 | 116,559 | 115,187 | 113,340 | 109,765 | 103,866 | 88,745 | 50,749 | |
Reinsurance | Credit and surety | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 118,730 | 116,501 | 111,532 | 109,528 | 101,765 | 94,952 | 79,432 | 32,786 | ||
Reinsurance | Credit and surety | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 111,316 | 110,768 | 106,341 | 98,712 | 89,356 | 63,361 | 35,910 | |||
Reinsurance | Credit and surety | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 127,130 | 123,365 | 121,482 | 103,810 | 84,626 | 33,105 | ||||
Reinsurance | Credit and surety | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 106,658 | 105,444 | 95,624 | 75,646 | 42,410 | |||||
Reinsurance | Credit and surety | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 106,016 | 94,020 | 76,621 | 37,531 | ||||||
Reinsurance | Credit and surety | Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 76,834 | 71,157 | 39,333 | |||||||
Reinsurance | Credit and surety | Accident Year 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 33,521 | 19,535 | ||||||||
Reinsurance | Credit and surety | Accident Year 2020 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 25,366 | |||||||||
Reinsurance | Motor | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 1,379,309 | |||||||||
All outstanding liabilities before 2011, net of reinsurance | 233,087 | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 1,261,241 | |||||||||
Reinsurance | Motor | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 100,394 | 98,020 | 95,946 | 94,893 | 89,952 | 83,615 | 76,441 | 65,351 | 49,721 | $ 24,346 |
Reinsurance | Motor | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 98,316 | 96,508 | 95,269 | 92,812 | 88,535 | 81,695 | 71,305 | 55,800 | $ 29,851 | |
Reinsurance | Motor | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 100,213 | 97,715 | 94,498 | 88,589 | 82,510 | 71,790 | 56,692 | $ 34,780 | ||
Reinsurance | Motor | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 139,456 | 129,566 | 119,252 | 108,374 | 99,642 | 78,589 | $ 44,432 | |||
Reinsurance | Motor | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 169,838 | 155,110 | 138,317 | 120,135 | 98,431 | $ 59,120 | ||||
Reinsurance | Motor | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 175,311 | 155,493 | 136,449 | 110,605 | $ 62,171 | |||||
Reinsurance | Motor | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 209,888 | 174,770 | 141,599 | $ 73,759 | ||||||
Reinsurance | Motor | Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 200,801 | 150,276 | $ 85,701 | |||||||
Reinsurance | Motor | Accident Year 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 159,461 | $ 91,189 | ||||||||
Reinsurance | Motor | Accident Year 2020 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 25,631 |
RESERVE FOR LOSSES AND LOSS _11
RESERVE FOR LOSSES AND LOSS EXPENSES - Average annual percentage payout of incurred claims by age, net of reinsurance (Details) | Dec. 31, 2020 |
Insurance | Property and other | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 34.00% |
Year 2 | 40.80% |
Year 3 | 14.60% |
Year 4 | 4.70% |
Year 5 | 1.30% |
Year 6 | 1.10% |
Year 7 | 0.00% |
Year 8 | 0.70% |
Year 9 | 0.10% |
Year 10 | 0.00% |
Insurance | Marine | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 19.80% |
Year 2 | 29.70% |
Year 3 | 22.50% |
Year 4 | 7.00% |
Year 5 | 5.30% |
Year 6 | 6.30% |
Year 7 | 3.20% |
Year 8 | 2.10% |
Year 9 | 0.50% |
Year 10 | 0.00% |
Insurance | Aviation | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 25.80% |
Year 2 | 26.80% |
Year 3 | 18.10% |
Year 4 | 11.40% |
Year 5 | 7.60% |
Year 6 | 3.50% |
Year 7 | 2.00% |
Year 8 | 3.30% |
Year 9 | 0.40% |
Year 10 | 0.10% |
Insurance | Credit and political risk | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 18.30% |
Year 2 | 39.10% |
Year 3 | 5.20% |
Year 4 | 2.90% |
Year 5 | 11.90% |
Year 6 | 5.20% |
Year 7 | 2.40% |
Year 8 | 0.00% |
Year 9 | 0.00% |
Year 10 | 0.00% |
Insurance | Professional lines | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 4.90% |
Year 2 | 13.30% |
Year 3 | 17.20% |
Year 4 | 14.80% |
Year 5 | 12.10% |
Year 6 | 10.80% |
Year 7 | 7.00% |
Year 8 | 3.10% |
Year 9 | 3.60% |
Year 10 | 4.40% |
Insurance | Liability | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 3.30% |
Year 2 | 13.00% |
Year 3 | 14.50% |
Year 4 | 20.50% |
Year 5 | 12.10% |
Year 6 | 9.00% |
Year 7 | 6.20% |
Year 8 | 2.00% |
Year 9 | 3.10% |
Year 10 | 5.80% |
Reinsurance | Property and other | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 20.80% |
Year 2 | 41.80% |
Year 3 | 18.40% |
Year 4 | 6.30% |
Year 5 | 2.60% |
Year 6 | 2.50% |
Year 7 | 0.60% |
Year 8 | 1.40% |
Year 9 | 1.00% |
Year 10 | 0.40% |
Reinsurance | Credit and surety | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 29.70% |
Year 2 | 29.10% |
Year 3 | 13.90% |
Year 4 | 7.90% |
Year 5 | 3.60% |
Year 6 | 2.30% |
Year 7 | 1.90% |
Year 8 | 1.60% |
Year 9 | 0.60% |
Year 10 | 0.70% |
Reinsurance | Professional lines | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 1.00% |
Year 2 | 5.80% |
Year 3 | 13.00% |
Year 4 | 15.10% |
Year 5 | 13.90% |
Year 6 | 12.10% |
Year 7 | 9.60% |
Year 8 | 5.40% |
Year 9 | 4.40% |
Year 10 | 0.90% |
Reinsurance | Motor | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 22.10% |
Year 2 | 18.20% |
Year 3 | 11.00% |
Year 4 | 7.70% |
Year 5 | 6.10% |
Year 6 | 5.00% |
Year 7 | 3.40% |
Year 8 | 1.20% |
Year 9 | 1.50% |
Year 10 | 1.70% |
Reinsurance | Liability | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 4.50% |
Year 2 | 9.50% |
Year 3 | 12.40% |
Year 4 | 14.30% |
Year 5 | 11.90% |
Year 6 | 11.00% |
Year 7 | 8.10% |
Year 8 | 6.60% |
Year 9 | 4.20% |
Year 10 | 4.50% |
RESERVE FOR LOSSES AND LOSS _12
RESERVE FOR LOSSES AND LOSS EXPENSES - Reconciliation of development tables to consolidated balance sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Claims Development [Line Items] | ||||
Net outstanding liabilities | $ 9,392,938 | |||
Reinsurance recoverable on unpaid claims | 4,496,641 | |||
Gross outstanding liabilities | 13,889,579 | |||
Unallocated claims adjustment expenses | 140,245 | |||
Foreign exchange and other | 49,072 | |||
(Ceded)/assumed reserves related to retroactive transactions | (152,130) | |||
Reserve for losses and loss expenses | 13,926,766 | $ 12,752,081 | $ 12,280,769 | $ 12,997,553 |
Insurance | ||||
Claims Development [Line Items] | ||||
Net outstanding liabilities | 3,937,283 | |||
Reinsurance recoverable on unpaid claims | 3,196,367 | |||
Gross outstanding liabilities | 7,133,650 | |||
Insurance | Property and other | ||||
Claims Development [Line Items] | ||||
Net outstanding liabilities | 794,903 | |||
Reinsurance recoverable on unpaid claims | 508,225 | |||
Gross outstanding liabilities | 1,303,128 | |||
Insurance | Marine | ||||
Claims Development [Line Items] | ||||
Net outstanding liabilities | 362,631 | |||
Reinsurance recoverable on unpaid claims | 162,396 | |||
Gross outstanding liabilities | 525,027 | |||
Insurance | Aviation | ||||
Claims Development [Line Items] | ||||
Net outstanding liabilities | 84,024 | |||
Reinsurance recoverable on unpaid claims | 64,252 | |||
Gross outstanding liabilities | 148,276 | |||
Insurance | Credit and political risk | ||||
Claims Development [Line Items] | ||||
Net outstanding liabilities | 106,644 | |||
Reinsurance recoverable on unpaid claims | 51,667 | |||
Gross outstanding liabilities | 158,311 | |||
Insurance | Professional lines | ||||
Claims Development [Line Items] | ||||
Net outstanding liabilities | 1,786,152 | |||
Reinsurance recoverable on unpaid claims | 1,227,183 | |||
Gross outstanding liabilities | 3,013,335 | |||
Insurance | Liability | ||||
Claims Development [Line Items] | ||||
Net outstanding liabilities | 802,929 | |||
Reinsurance recoverable on unpaid claims | 1,182,644 | |||
Gross outstanding liabilities | 1,985,573 | |||
Reinsurance | ||||
Claims Development [Line Items] | ||||
Net outstanding liabilities | 5,455,655 | |||
Reinsurance recoverable on unpaid claims | 1,300,274 | |||
Gross outstanding liabilities | 6,755,929 | |||
Reinsurance | Property and other | ||||
Claims Development [Line Items] | ||||
Net outstanding liabilities | 1,640,017 | |||
Reinsurance recoverable on unpaid claims | 497,211 | |||
Gross outstanding liabilities | 2,137,228 | |||
Reinsurance | Credit and surety | ||||
Claims Development [Line Items] | ||||
Net outstanding liabilities | 243,609 | |||
Reinsurance recoverable on unpaid claims | 70,143 | |||
Gross outstanding liabilities | 313,752 | |||
Reinsurance | Professional lines | ||||
Claims Development [Line Items] | ||||
Net outstanding liabilities | 990,567 | |||
Reinsurance recoverable on unpaid claims | 186,245 | |||
Gross outstanding liabilities | 1,176,812 | |||
Reinsurance | Motor | ||||
Claims Development [Line Items] | ||||
Net outstanding liabilities | 1,261,241 | |||
Reinsurance recoverable on unpaid claims | 228,453 | |||
Gross outstanding liabilities | 1,489,694 | |||
Reinsurance | Liability | ||||
Claims Development [Line Items] | ||||
Net outstanding liabilities | 1,320,221 | |||
Reinsurance recoverable on unpaid claims | 318,222 | |||
Gross outstanding liabilities | $ 1,638,443 |
REINSURANCE (Details)
REINSURANCE (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Premiums written | |||||||||||
Gross | $ 6,826,938 | $ 6,898,858 | $ 6,910,065 | ||||||||
Ceded | (2,490,529) | (2,409,243) | (2,251,103) | ||||||||
Net | 4,336,409 | 4,489,615 | 4,658,962 | ||||||||
Premiums earned | |||||||||||
Gross | 6,768,733 | 6,910,677 | 6,882,217 | ||||||||
Ceded | (2,397,424) | (2,323,499) | (2,090,722) | ||||||||
Net | $ 1,087,368 | $ 1,091,312 | $ 1,104,003 | $ 1,088,625 | $ 1,172,051 | $ 1,157,307 | $ 1,123,607 | $ 1,134,212 | 4,371,309 | 4,587,178 | 4,791,495 |
Reinsurance receivables: | |||||||||||
Ceded losses and loss expenses | 1,914,000 | 1,602,000 | 1,565,000 | ||||||||
Provision for unrecoverable reinsurance | $ 23,711 | $ 18,000 | $ 23,711 | $ 18,000 | $ 21,000 |
DEBT AND FINANCING ARRANGEMEN_3
DEBT AND FINANCING ARRANGEMENTS - Debt (Details) - USD ($) $ in Thousands | Jun. 01, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 10, 2019 | Jun. 19, 2019 | Dec. 06, 2017 | Mar. 13, 2014 |
Debt Instrument [Line Items] | ||||||||
Debt | $ 1,309,695 | $ 1,808,157 | ||||||
Repayment of notes payable | 500,000 | 250,000 | $ 0 | |||||
AXIS Specialty Finance PLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Percentage ownership in subsidiary | 100.00% | |||||||
Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest expense | 52,000 | 67,000 | $ 64,000 | |||||
Senior Notes | 5.875% Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 5.875% | 5.875% | ||||||
Debt | 0 | 499,687 | ||||||
Senior Notes | 5.150% Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 5.15% | |||||||
Debt | 246,559 | 246,491 | ||||||
Senior Notes | 4.000% Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 4.00% | |||||||
Debt | 347,324 | 346,997 | ||||||
Senior Notes | 3.900% Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 3.90% | |||||||
Debt | 295,748 | 295,339 | ||||||
Senior Notes | AXIS Specialty Finance PLC | 5.875% Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Repayment of notes payable | $ 500,000 | |||||||
Junior Subordinated Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 4.90% | |||||||
Debt | 420,064 | 419,643 | ||||||
Interest expense | $ 21,000 | $ 1,000 |
DEBT AND FINANCING ARRANGEMEN_4
DEBT AND FINANCING ARRANGEMENTS - Debt terms (Details) - USD ($) | Dec. 10, 2019 | Jun. 19, 2019 | Dec. 06, 2017 | Mar. 13, 2014 | Jun. 01, 2020 |
Senior Notes | 5.150% Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 5.15% | ||||
Aggregate Principal | $ 250,000,000 | ||||
Issue Price | 99.474% | ||||
Net Proceeds | $ 246,000,000 | ||||
Senior Notes | 4.000% Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 4.00% | ||||
Aggregate Principal | $ 350,000,000 | ||||
Issue Price | 99.78% | ||||
Net Proceeds | $ 347,000,000 | ||||
Senior Notes | 3.900% Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 3.90% | ||||
Aggregate Principal | $ 300,000,000 | ||||
Issue Price | 99.36% | ||||
Net Proceeds | $ 296,000,000 | ||||
Senior Notes | Senior Notes Due 2045 Axis Specialty Finance PLC 2014 | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 5.15% | ||||
Senior Notes | Senior Notes Axis Specialty Finance PLC 2017 | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 4.00% | ||||
Senior Notes | 3.9% Senior Notes | AXIS Specialty Finance LLC | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 3.90% | ||||
Senior Notes | 5.875% Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 5.875% | 5.875% | |||
Junior Subordinated Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 4.90% | ||||
Aggregate Principal | $ 425,000,000 | ||||
Issue Price | 99.00% | ||||
Net Proceeds | $ 420,750,000 | ||||
Junior Subordinated Notes | AXIS Specialty Finance LLC | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 4.90% | ||||
Junior Subordinated Notes | Five-Year Treasury Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 3.186% |
DEBT AND FINANCING ARRANGEMEN_5
DEBT AND FINANCING ARRANGEMENTS - Senior and notes payable, Dekania Notes (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 10, 2019 | Jun. 19, 2019 | Dec. 06, 2017 | Mar. 13, 2014 | |
Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest expense | $ 52 | $ 67 | $ 64 | ||||
Senior Notes | Senior Notes Due 2045 Axis Specialty Finance PLC 2014 | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 5.15% | ||||||
Senior Notes | Senior Notes Axis Specialty Finance PLC 2017 | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 4.00% | ||||||
Junior Subordinated Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 4.90% | ||||||
Interest expense | $ 21 | $ 1 | |||||
AXIS Specialty Finance LLC | |||||||
Debt Instrument [Line Items] | |||||||
Percentage ownership in subsidiary | 100.00% | 100.00% | 100.00% | 100.00% | |||
AXIS Specialty Finance LLC | Senior Notes | 3.9% Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 3.90% | ||||||
AXIS Specialty Finance LLC | Junior Subordinated Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 4.90% |
DEBT AND FINANCING ARRANGEMEN_6
DEBT AND FINANCING ARRANGEMENTS - Debt maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Scheduled debt maturity | ||
2021 | $ 0 | |
2022 | 0 | |
2023 | 0 | |
2024 | 0 | |
2025 | 0 | |
After 2025 | 1,325,000 | |
Unamortized discount and debt issuance expenses | (15,305) | |
Total senior notes and notes payable | $ 1,309,695 | $ 1,808,157 |
DEBT AND FINANCING ARRANGEMEN_7
DEBT AND FINANCING ARRANGEMENTS - Credit facilities (Details) - Letter of Credit Facility - Citibank - USD ($) | Dec. 31, 2020 | Mar. 28, 2020 | Dec. 31, 2019 | Dec. 24, 2019 | Mar. 27, 2017 | Mar. 31, 2015 | Mar. 30, 2015 | Nov. 20, 2013 |
Line of Credit Facility [Line Items] | ||||||||
Maximum capacity | $ 500,000,000 | $ 500,000,000 | $ 750,000,000 | $ 750,000,000 | ||||
Letters of credit outstanding | $ 339,000,000 | $ 357,000,000 | ||||||
$500 million secured LOC | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum capacity | $ 250,000,000 | $ 500,000,000 | 500,000,000 | |||||
$250 million secured LOC | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum capacity | $ 250,000,000 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Cash and investments (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Commitments and Contingencies Disclosure [Abstract] | ||
Fixed maturities | $ 12,041,799 | $ 12,468,205 |
Fixed maturity investment portfolio percentage | 47.00% | |
Fixed maturity portfolio - corporate issuer concentration limit above A- | 2.00% | |
Fixed maturity portfolio - corporate issuer concentration limit below A- | 1.00% |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Reinsurance and premiums (Details) | 12 Months Ended | ||
Dec. 31, 2020USD ($)broker | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Concentration Risk [Line Items] | |||
Premium Receivable, Allowance for Credit Loss | $ 8,836,000 | $ 7,000,000 | |
Premiums receivable, bad debt expense charges | $ 0 | $ 0 | $ 0 |
Reinsurance Recoverable On Unpaid And Paid Losses | Reinsurer Concentration | Reinsurer 1 | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage of total | 13.00% | 12.00% | |
Reinsurance Recoverable On Unpaid And Paid Losses | Reinsurer Concentration | Reinsurer 2 | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage of total | 10.00% | 10.00% | |
Reinsurance Recoverable On Unpaid And Paid Losses | Reinsurer Concentration | Reinsurer 3 | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage of total | 7.00% | 9.00% | |
Reinsurance Recoverable On Unpaid And Paid Losses | Reinsurer Concentration | Top Ten Reinsurers | AM Best, A- Rating | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage of total | 87.60% | 89.10% | |
Gross Premiums Written | Customer Concentration | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage of total | 47.00% | 47.00% | 43.00% |
Concentration risk, number of brokers exceeding threshold | broker | 3 | ||
Gross Premiums Written | Customer Concentration | Marsh & McLennan Companies Inc. | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage of total | 19.00% | 18.00% | 17.00% |
Gross Premiums Written | Customer Concentration | Aon plc | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage of total | 17.00% | 19.00% | 17.00% |
Gross Premiums Written | Customer Concentration | Willis Towers Watson PLC | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage of total | 11.00% | 10.00% | 9.00% |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES - Reinsurance purchase commitment, investments and funds at Lloyd's (Details) - USD ($) $ in Thousands | Jan. 01, 2019 | Dec. 31, 2020 | Dec. 31, 2019 |
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
Purchase commitment | $ 13,000 | $ 57,000 | |
Unfunded commitments related to other investments | 588,000 | 588,000 | |
Collateral in Trust for third-party agreements | $ 1,903,274 | 1,856,327 | |
Axis Corporate Capital UK Limited | |||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
Capital support, percentage | 70.00% | 70.00% | |
Axis Corporate Capital UK Limited II | |||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
Capital support, percentage | 30.00% | 30.00% | |
CMBS | |||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
Purchase commitment | $ 46,000 | 32,000 | |
Lloyd's | |||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
Collateral in Trust for third-party agreements | $ 1,200,000 | $ 1,300,000 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Feb. 01, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | ||||
Operating lease liabilities | $ 140,263 | $ 115,584 | ||
Operating lease expense | $ 33,000 | |||
Subsequent event | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease term | 15 years | |||
Operating lease liabilities | $ 40,000 |
LEASES - Lease costs (Details)
LEASES - Lease costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lease cost: | ||
Operating lease expense | $ 24,726 | $ 27,549 |
Short-term lease expense | 299 | 1,132 |
Sublease income | (3,578) | (1,144) |
Total lease expense | 21,447 | 27,537 |
Other information: | ||
Operating cash outflows from operating leases | 20,452 | 25,004 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 36,742 | $ 0 |
Weighted-average remaining lease term - operating leases | 10 years 2 months 12 days | 9 years |
Weighted-average discount rate - operating lease | 4.20% | 4.70% |
LEASES - Operating lease liabil
LEASES - Operating lease liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Year ended December 31, | ||
Year One | $ 22,817 | $ 19,225 |
Year Two | 23,598 | 19,129 |
Year Three | 20,190 | 20,049 |
Year Four | 14,478 | 16,641 |
Year Five | 13,849 | 11,006 |
Later years | 78,987 | 58,562 |
Discount | (33,656) | (29,028) |
Total discounted operating lease liabilities | $ 140,263 | $ 115,584 |
EARNINGS PER COMMON SHARE (Deta
EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings (loss) per common share | |||||||||||
Net income (loss) | $ (120,424) | $ 323,473 | $ 43,021 | ||||||||
Less: Preferred share dividends | 30,250 | 41,112 | 42,625 | ||||||||
Net income (loss) available (attributable) to common shareholders | $ (4,819) | $ (72,945) | $ 112,477 | $ (185,390) | $ (9,897) | $ 27,745 | $ 166,387 | $ 98,125 | $ (150,674) | $ 282,361 | $ 396 |
Weighted average common shares outstanding (in shares) | 84,262 | 83,894 | 83,501 | ||||||||
Earnings (loss) per common share (in dollars per share) | $ (0.06) | $ (0.87) | $ 1.33 | $ (2.20) | $ (0.12) | $ 0.33 | $ 1.98 | $ 1.17 | $ (1.79) | $ 3.37 | $ 0 |
Earnings (loss) per diluted common share | |||||||||||
Net income (loss) available (attributable) to common shareholders | $ (4,819) | $ (72,945) | $ 112,477 | $ (185,390) | $ (9,897) | $ 27,745 | $ 166,387 | $ 98,125 | $ (150,674) | $ 282,361 | $ 396 |
Weighted average common shares outstanding (in shares) | 84,262 | 83,894 | 83,501 | ||||||||
Share-based compensation plans (in shares) | 0 | 579 | 506 | ||||||||
Weighted average diluted common shares outstanding (in shares) | 84,262 | 84,473 | 84,007 | ||||||||
Earnings (loss) per diluted common share (in dollars per share) | $ (0.06) | $ (0.87) | $ 1.33 | $ (2.20) | $ (0.12) | $ 0.33 | $ 1.97 | $ 1.16 | $ (1.79) | $ 3.34 | $ 0 |
Weighted average anti-dilutive shares excluded from the dilutive computation (in shares) | 922 | 154 | 245 |
SHAREHOLDERS' EQUITY - Common s
SHAREHOLDERS' EQUITY - Common shares (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Class of Stock [Line Items] | |||
Authorized share capital, common (in shares) | 800,000,000 | ||
Par value per share, common (in usd per share) | $ 0.0125 | ||
Common Shares Issued and Outstanding [Roll Forward] | |||
Shares issued, balance at beginning of year (in shares) | 176,580,000 | ||
Total shares issued at end of year (in shares) | 176,580,000 | 176,580,000 | |
Treasury Shares Issued and Outstanding [Roll Forward] | |||
Treasury shares, balance at beginning of year (in shares) | (92,621,000) | ||
Total treasury shares at end of year (in shares) | (92,227,000) | (92,621,000) | |
Total shares outstanding (in shares) | 84,353,000 | 83,959,000 | |
Common shares | |||
Common Shares Issued and Outstanding [Roll Forward] | |||
Shares issued, balance at beginning of year (in shares) | 176,580,000 | 176,580,000 | 176,580,000 |
Shares issued (in shares) | 0 | 0 | 0 |
Total shares issued at end of year (in shares) | 176,580,000 | 176,580,000 | 176,580,000 |
Treasury Shares Issued and Outstanding [Roll Forward] | |||
Treasury shares, balance at beginning of year (in shares) | (92,621,000) | (92,994,000) | (93,419,000) |
Shares repurchased (in shares) | (194,000) | (176,000) | (200,000) |
Shares reissued from treasury (in shares) | 588,000 | 549,000 | 625,000 |
Total treasury shares at end of year (in shares) | (92,227,000) | (92,621,000) | (92,994,000) |
Total shares outstanding (in shares) | 84,353,000 | 83,959,000 | 83,586,000 |
SHAREHOLDERS' EQUITY - Share re
SHAREHOLDERS' EQUITY - Share repurchase activities (Details) - Common shares - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Treasury Shares [Line Items] | |||
Total shares (in shares) | 194 | 176 | 200 |
Total cost | $ 10,382 | $ 10,165 | $ 10,080 |
Average price per share (in usd per share) | $ 53.43 | $ 57.66 | $ 50.40 |
In the open market: | |||
Treasury Shares [Line Items] | |||
Total shares (in shares) | 0 | 0 | 0 |
Total cost | $ 0 | $ 0 | $ 0 |
Average price per share (in usd per share) | $ 0 | $ 0 | $ 0 |
From employees: | |||
Treasury Shares [Line Items] | |||
Total shares (in shares) | 194 | 176 | 200 |
Total cost | $ 10,382 | $ 10,165 | $ 10,080 |
Average price per share (in usd per share) | $ 53.43 | $ 57.66 | $ 50.40 |
SHAREHOLDERS' EQUITY - Preferre
SHAREHOLDERS' EQUITY - Preferred shares (Details) - USD ($) | Jan. 17, 2020 | Nov. 07, 2016 | May 20, 2013 | Dec. 31, 2020 | Dec. 31, 2019 |
Class of Stock [Line Items] | |||||
Preferred shares, aggregate liquidation value outstanding | $ 550,000,000 | $ 775,000,000 | |||
Series D 5.50% Preferred Shares | |||||
Class of Stock [Line Items] | |||||
Preferred shares, aggregate liquidation value issued | $ 225,000,000 | ||||
Preferred shares, dividend rate | 5.50% | ||||
Preferred shares, par value per share (in usd per share) | $ 0.0125 | ||||
Preferred shares, liquidation preference per share (in usd per share) | 25 | ||||
Preferred shares, redemption price per share (in usd per share) | $ 25 | ||||
Preferred shares, number of shares redeemed (in shares) | 9,000,000 | ||||
Preferred shares, aggregate liquidation value outstanding | $ 225,000,000 | ||||
Series E 5.50% Preferred Shares | |||||
Class of Stock [Line Items] | |||||
Preferred shares, aggregate liquidation value issued | $ 550,000,000 | ||||
Preferred shares, dividend rate | 5.50% | ||||
Preferred shares, par value per share (in usd per share) | $ 0.0125 | ||||
Preferred shares, liquidation preference per share (in usd per share) | 2,500 | ||||
Preferred shares, redemption price per share (in usd per share) | $ 2,500 |
SHAREHOLDERS' EQUITY - Dividend
SHAREHOLDERS' EQUITY - Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 17, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Class of Stock [Line Items] | ||||
Common shares, dividends declared per share (in usd per share) | $ 1.65 | $ 1.61 | $ 1.57 | |
Common shares, dividends paid per share (in usd per share) | 1.23 | 1.20 | 1.17 | |
Dividends paid in year following declaration (in usd per share) | $ 0.42 | $ 0.41 | 0.40 | |
Preferred shares | $ 550,000 | $ 775,000 | ||
Series D preferred shares | ||||
Class of Stock [Line Items] | ||||
Preferred shares, dividend declared per share (in usd per share) | $ 1.21 | 1.38 | ||
Preferred shares, dividends paid per share (in usd per share) | 1.03 | 1.03 | ||
Dividends paid in year following declaration (in usd per share) | 0.18 | 0.34 | ||
Preferred shares, number of shares redeemed (in shares) | 9,000,000 | |||
Preferred shares | $ 225,000 | |||
Series E preferred shares | ||||
Class of Stock [Line Items] | ||||
Preferred shares, dividend declared per share (in usd per share) | $ 137.50 | 137.50 | 137.50 | |
Preferred shares, dividends paid per share (in usd per share) | 103.13 | 103.13 | 103.13 | |
Dividends paid in year following declaration (in usd per share) | $ 34.38 | $ 34.38 | $ 34.38 |
RETIREMENT PLANS (Details)
RETIREMENT PLANS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |||
Total pension expenses | $ 29 | $ 28 | $ 27 |
SHARE-BASED COMPENSATION - Long
SHARE-BASED COMPENSATION - Long term equity compensation plan narrative (Details) | 12 Months Ended | |
Dec. 31, 2020installmentshares | May 31, 2017shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of installments | installment | 3 | |
Restricted Stock Units | Share Settled | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Restricted Stock Units | Share Settled | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 4 years | |
Number of installments | installment | 4 | |
Restricted Stock Units | Cash Settled | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Restricted Stock Units | Cash Settled | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 4 years | |
Performance Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
2017 Long Term Equity Compensation Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Maximum number of shares to be issued under the plan (in shares) | shares | 3,400,000 | |
Number of awards available for grant under plan (in shares) | shares | 1,912,055 | |
2007 Long-term Equity Compensation Plan | Restricted Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 2 years |
SHARE-BASED COMPENSATION - Shar
SHARE-BASED COMPENSATION - Share and cash settled awards (Details) - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Performance Based Restricted Stock and Restricted Stock Units | Share Settled | ||
Number of restricted stock units | ||
Nonvested restricted stock - beginning of year (in shares) | 258 | 232 |
Granted (in shares) | 97 | 127 |
Vested (in shares) | (27) | (61) |
Forfeited (in shares) | (39) | (40) |
Nonvested restricted stock - end of year (in shares) | 289 | 258 |
Weighted average grant date fair value | ||
Nonvested restricted stock units - beginning of year (in usd per share) | $ 53.31 | $ 54.54 |
Granted (in usd per share) | 62.26 | 54.70 |
Vested (in usd per share) | 64.01 | 53.82 |
Forfeited (in usd per share) | 48.89 | 64.01 |
Nonvested restricted stock units - end of year (in usd per share) | $ 55.92 | $ 53.31 |
Performance Based Restricted Stock and Restricted Stock Units | Cash Settled | ||
Number of restricted stock units | ||
Nonvested restricted stock - beginning of year (in shares) | 6 | 27 |
Granted (in shares) | 0 | 0 |
Vested (in shares) | (6) | (12) |
Forfeited (in shares) | 0 | (9) |
Nonvested restricted stock - end of year (in shares) | 0 | 6 |
Restricted Stock Units | Share Settled | ||
Number of restricted stock units | ||
Nonvested restricted stock - beginning of year (in shares) | 1,273 | 1,411 |
Granted (in shares) | 894 | 523 |
Vested (in shares) | (561) | (487) |
Forfeited (in shares) | (105) | (174) |
Nonvested restricted stock - end of year (in shares) | 1,501 | 1,273 |
Weighted average grant date fair value | ||
Nonvested restricted stock units - beginning of year (in usd per share) | $ 54.32 | $ 54.12 |
Granted (in usd per share) | 58.98 | 54.88 |
Vested (in usd per share) | 55.29 | 54.29 |
Forfeited (in usd per share) | 57.54 | 54.49 |
Nonvested restricted stock units - end of year (in usd per share) | $ 56.50 | $ 54.32 |
Restricted Stock Units | Cash Settled | ||
Number of restricted stock units | ||
Nonvested restricted stock - beginning of year (in shares) | 853 | 932 |
Granted (in shares) | 1 | 364 |
Vested (in shares) | (332) | (333) |
Forfeited (in shares) | (51) | (110) |
Nonvested restricted stock - end of year (in shares) | 471 | 853 |
SHARE-BASED COMPENSATION - Addi
SHARE-BASED COMPENSATION - Additional information related to share-based compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Liability for cash-settled restricted stock units | $ 13,273 | $ 21,731 | |
Restricted Stock and Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share based compensation expense | 47,789 | 52,218 | $ 54,011 |
Tax benefits associated with share-based compensation expense | 8,061 | 8,913 | 7,772 |
Liability for cash-settled restricted stock units | 50,757 | 51,206 | 50,750 |
Unrecognized share-based compensation expense | $ 74,014 | $ 75,770 | $ 87,341 |
Expected weighted average period associated with the recognition of unrecognized share-based compensation expense | 2 years 4 months 24 days | 2 years 3 months 18 days | 2 years 4 months 24 days |
Cash Settled | Restricted Stock and Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Liability for cash-settled restricted stock units | $ 13,273 | $ 21,731 | $ 20,648 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Aug. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | ||||
Other investments | $ 829,156,000 | $ 770,923,000 | ||
Ceded premiums | 2,490,529,000 | 2,409,243,000 | $ 2,251,103,000 | |
Ceded losses and loss expenses | 1,914,000,000 | 1,602,000,000 | 1,565,000,000 | |
Insurance and reinsurance balances payable | 1,092,042,000 | 1,349,082,000 | ||
Stone Point Group | ||||
Related Party Transaction [Line Items] | ||||
Fees paid to related party | 3,000,000 | 3,000,000 | 2,000,000 | |
NXT Capital II | ||||
Related Party Transaction [Line Items] | ||||
Other investments | 7,000,000 | |||
NXT Capital III | ||||
Related Party Transaction [Line Items] | ||||
Other investments | 18,000,000 | |||
NXT Capital | ||||
Related Party Transaction [Line Items] | ||||
Fees paid to related party | 1,000,000 | |||
Freedom Consumer Credit Fund, LLC Series B | ||||
Related Party Transaction [Line Items] | ||||
Fees paid to related party | 2,000,000 | 3,000,000 | 2,000,000 | |
Other investments | 38,000,000 | |||
Stone Point Trident Fund VIII | ||||
Related Party Transaction [Line Items] | ||||
Fees paid to related party | 1,000,000 | 0 | 0 | |
Other investments | 23,000,000 | |||
Stone Point Trident VIII Co-Invest | ||||
Related Party Transaction [Line Items] | ||||
Other investments | 11,000,000 | |||
Chairman | ||||
Related Party Transaction [Line Items] | ||||
Fees paid to related party | 400,000 | 400,000 | 500,000 | |
Significant influence | ||||
Related Party Transaction [Line Items] | ||||
Other investments | 404,000,000 | 410,000,000 | ||
Harrington Re | ||||
Related Party Transaction [Line Items] | ||||
Ceded premiums | 256,000,000 | 247,000,000 | 194,000,000 | |
Ceded losses and loss expenses | 187,000,000 | 157,000,000 | 142,000,000 | |
Reinsurance recoverable on unpaid and paid losses | 641,000,000 | 518,000,000 | ||
Insurance and reinsurance balances payable | 188,000,000 | 159,000,000 | ||
Ventures Re | ||||
Related Party Transaction [Line Items] | ||||
Ceded premiums | 0 | 192,000,000 | 182,000,000 | |
Ceded losses and loss expenses | 0 | 140,000,000 | $ 138,000,000 | |
Reinsurance recoverable on unpaid and paid losses | 0 | 199,000,000 | ||
Insurance and reinsurance balances payable | $ 0 | $ 46,000,000 | ||
Stone Point Group | NXT Capital | ||||
Related Party Transaction [Line Items] | ||||
Percentage ownership by related parties | 43.00% | |||
Stone Point Group | Pantheon | ||||
Related Party Transaction [Line Items] | ||||
Percentage ownership by related parties | 14.50% |
REORGANIZATION EXPENSES (Detail
REORGANIZATION EXPENSES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |||
Reorganization expenses | $ 7,881 | $ 37,384 | $ 66,940 |
INCOME TAXES - Income tax expen
INCOME TAXES - Income tax expense and net tax assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income tax expense [Line Items] | |||
Total income tax expense (benefit) | $ (12,321) | $ 23,692 | $ (29,486) |
Net current tax receivables (payables) | 12,205 | 13,130 | 9,683 |
Net deferred tax assets (liabilities) | (1,625) | ||
Net deferred tax assets (liabilities) | 18,621 | 39,775 | |
Net tax assets | 10,580 | 31,751 | 49,458 |
U.S. | |||
Income tax expense [Line Items] | |||
Current income tax expense (benefit) | (1,122) | 12,601 | (5,401) |
Deferred income tax expense (benefit) | (3,098) | 17,665 | 15,288 |
Europe | |||
Income tax expense [Line Items] | |||
Current income tax expense (benefit) | 365 | 22,425 | 10,409 |
Deferred income tax expense (benefit) | (8,466) | (29,468) | (49,833) |
Other | |||
Income tax expense [Line Items] | |||
Current income tax expense (benefit) | $ 0 | $ 469 | $ 51 |
INCOME TAXES - Deferred tax ass
INCOME TAXES - Deferred tax assets and liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | |||
Discounting of net reserves for losses and loss expenses | $ 47,912 | $ 40,523 | |
Unearned premiums | 46,049 | 42,709 | |
Operating and capital loss carryforwards | 80,008 | 85,901 | |
Accruals not currently deductible | 28,096 | 29,705 | |
Tax credits | 11,142 | 2,956 | |
Other deferred tax assets | 24,266 | 14,355 | |
Deferred tax assets before valuation allowance | 237,473 | 216,149 | |
Valuation allowance | (20,778) | (18,560) | |
Deferred tax assets net of valuation allowance | 216,695 | 197,589 | |
Deferred tax liabilities: | |||
Deferred acquisition costs | (33,550) | (38,320) | |
Net unrealized investments gains | (62,921) | (30,434) | |
Intangible assets | (46,132) | (44,199) | |
Equalization reserves | (2,825) | (2,825) | |
Other deferred tax liabilities | (72,892) | (63,190) | |
Deferred tax liabilities | (218,320) | (178,968) | |
Net deferred tax assets | (1,625) | ||
Net deferred tax assets | 18,621 | $ 39,775 | |
Lloyd's | |||
Deferred tax assets: | |||
Operating and capital loss carryforwards | $ 39,000 | $ 50,000 |
INCOME TAXES - Operating and ca
INCOME TAXES - Operating and capital loss carryforwards and tax credits (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Operating Loss And Tax Credit Carryforwards [Line Items] | ||
Operating and capital loss carryforwards | $ 80,008 | $ 85,901 |
Singapore | ||
Operating Loss And Tax Credit Carryforwards [Line Items] | ||
Operating loss carryforwards | 110,504 | 103,899 |
United Kingdom | ||
Operating Loss And Tax Credit Carryforwards [Line Items] | ||
Operating loss carryforwards | 357,226 | 431,374 |
Tax credit | 8,756 | 864 |
Ireland | ||
Operating Loss And Tax Credit Carryforwards [Line Items] | ||
Operating loss carryforwards | 404 | 9,064 |
Tax credit | 2,386 | 2,092 |
Ireland | Capital loss carryforward | ||
Operating Loss And Tax Credit Carryforwards [Line Items] | ||
Capital loss carryforwards | 716 | 716 |
Belgian | ||
Operating Loss And Tax Credit Carryforwards [Line Items] | ||
Operating loss carryforwards | 1,850 | 0 |
Lloyd's | ||
Operating Loss And Tax Credit Carryforwards [Line Items] | ||
Operating and capital loss carryforwards | 39,000 | 50,000 |
Lloyd's | United Kingdom | ||
Operating Loss And Tax Credit Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 206,000 | $ 293,000 |
INCOME TAXES - Valuation allowa
INCOME TAXES - Valuation allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Valuation allowance - beginning of year | $ 18,560 | |
Valuation allowance - end of year | 20,778 | $ 18,560 |
Operating loss carryforwards | ||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Change in valuation allowance | 661 | 2,445 |
Foreign tax credit | ||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Change in valuation allowance | 293 | (114) |
U.K. branch assets and other foreign rate differentials | ||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Change in valuation allowance | 1,264 | 2,338 |
Income tax expense | ||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Valuation allowance - beginning of year | 18,560 | 13,891 |
Valuation allowance - end of year | 20,778 | 18,560 |
Change in investment - related items | ||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Change in valuation allowance | 0 | (5,064) |
Accumulated other comprehensive income | ||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Valuation allowance - beginning of year | 0 | 5,064 |
Valuation allowance - end of year | $ 0 | $ 0 |
INCOME TAXES - Effective tax ra
INCOME TAXES - Effective tax rate (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of effective tax rate (% of income before income taxes) [Line Items] | |||
Unrecognized tax benefits | $ 0 | $ 0 | |
Income (loss) before income taxes | |||
Bermuda (domestic) | (45,951,000) | 179,418,000 | $ 181,597,000 |
Foreign | (86,794,000) | 167,747,000 | (168,062,000) |
Total income (loss) before income taxes | $ (132,745,000) | $ 347,165,000 | $ 13,535,000 |
Reconciliation of effective tax rate (% of income before income taxes) | |||
Expected tax rate | 0.00% | 0.00% | 0.00% |
Valuation allowance | (1.70%) | 1.30% | (13.40%) |
Net tax exempt income | 0.00% | 0.00% | (3.30%) |
Other | (2.10%) | (3.00%) | 5.90% |
Actual tax rate | 9.30% | 6.80% | (217.90%) |
U.S. | |||
Reconciliation of effective tax rate (% of income before income taxes) | |||
Foreign taxes at local expected rates | 5.60% | 8.10% | 65.70% |
Europe | |||
Reconciliation of effective tax rate (% of income before income taxes) | |||
Foreign taxes at local expected rates | 9.20% | 0.40% | (289.70%) |
Change in enacted tax rate | (1.70%) | 0.00% | 16.90% |
OTHER COMPREHENSIVE INCOME (L_3
OTHER COMPREHENSIVE INCOME (LOSS) - Component of other comprehensive income (loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Before tax amount | |||
Other comprehensive income (loss), before tax amount | $ 273,508 | $ 384,298 | $ (202,694) |
Income tax (expense) benefit | |||
Other comprehensive income (loss), tax (expense) benefit | (30,823) | (35,478) | 700 |
Net of tax amount | |||
Other comprehensive income (loss), net of tax amount | 242,685 | 348,820 | (201,994) |
Unrealized gains (losses) on available-for-sale investments, net of tax: | |||
Before tax amount | |||
Unrealized gains (losses) arising during the year for which an allowance for expected credit losses has not been recognized | 360,357 | 414,982 | (297,259) |
Adjustment for reclassification of net realized (gains) losses, impairment losses and OTTI losses recognized in net income (loss) | (90,380) | (29,618) | 105,730 |
Other comprehensive income (loss), before tax amount | 269,937 | 385,364 | (191,529) |
Income tax (expense) benefit | |||
Unrealized gains (losses) arising during the year for which an allowance for expected credit losses has not been recognized | (43,191) | (40,367) | 5,528 |
Adjustment for reclassification of net realized (gains) losses, impairment losses and OTTI losses recognized in net income (loss) | 12,368 | 4,889 | (4,828) |
Other comprehensive income (loss), tax (expense) benefit | (30,823) | (35,478) | 700 |
Net of tax amount | |||
Unrealized gains (losses) arising during the year for which an allowance for expected credit losses has not been recognized | 317,166 | 374,615 | (291,731) |
Adjustment for reclassification of net realized (gains) losses, impairment losses and OTTI losses recognized in net income (loss) | (78,012) | (24,729) | 100,902 |
Other comprehensive income (loss), net of tax amount | 239,114 | 349,886 | (190,829) |
Unrealized gains (losses) on available-for-sale investments, net of tax: | Unrealized gains (losses) arising during the year for which an allowance for expected credit losses has not been recognized | |||
Before tax amount | |||
Unrealized gains (losses) arising during the year for which an allowance for expected credit losses has not been recognized | (40) | ||
Income tax (expense) benefit | |||
Unrealized gains (losses) arising during the year for which an allowance for expected credit losses has not been recognized | 0 | ||
Net of tax amount | |||
Unrealized gains (losses) arising during the year for which an allowance for expected credit losses has not been recognized | (40) | ||
Foreign currency translation adjustment | |||
Before tax amount | |||
Other comprehensive income (loss), before tax amount | 3,571 | (1,066) | (11,165) |
Income tax (expense) benefit | |||
Other comprehensive income (loss), tax (expense) benefit | 0 | 0 | 0 |
Net of tax amount | |||
Other comprehensive income (loss), net of tax amount | $ 3,571 | $ (1,066) | $ (11,165) |
OTHER COMPREHENSIVE INCOME (L_4
OTHER COMPREHENSIVE INCOME (LOSS) - Reclassifications out of AOCI into net income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reclassification out of accumulated comprehensive income into net income available to common shareholders [Line Items] | |||
Impairment losses | $ (1,486) | $ 0 | $ 0 |
Other-than-temporary impairment ("OTTI") losses | 0 | (6,984) | (9,733) |
Income (loss) before income taxes and interest in income (loss) of equity method investments | (129,133) | 337,447 | 12,542 |
Foreign exchange losses | (81,069) | 12,041 | 29,165 |
Income tax (expense) benefit | 12,321 | (23,692) | 29,486 |
Net income (loss) | (120,424) | 323,473 | 43,021 |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized gains (losses) on available for sale investments | |||
Reclassification out of accumulated comprehensive income into net income available to common shareholders [Line Items] | |||
Other realized gains (losses) | 91,866 | 36,602 | (95,997) |
Impairment losses | (1,486) | 0 | 0 |
Other-than-temporary impairment ("OTTI") losses | 0 | (6,984) | (9,733) |
Income (loss) before income taxes and interest in income (loss) of equity method investments | 90,380 | 29,618 | (105,730) |
Income tax (expense) benefit | (12,368) | (4,889) | 4,828 |
Net income (loss) | 78,012 | 24,729 | (100,902) |
Reclassification out of Accumulated Other Comprehensive Income | Foreign currency translation adjustment | |||
Reclassification out of accumulated comprehensive income into net income available to common shareholders [Line Items] | |||
Foreign exchange losses | 0 | 6,043 | 0 |
Income tax (expense) benefit | 0 | 0 | 0 |
Net income (loss) | $ 0 | 6,043 | $ 0 |
Reclassification out of Accumulated Other Comprehensive Income | Foreign currency translation adjustment | Aviabel | |||
Reclassification out of accumulated comprehensive income into net income available to common shareholders [Line Items] | |||
Foreign exchange losses | $ 6,000 |
STATUTORY FINANCIAL INFORMATI_3
STATUTORY FINANCIAL INFORMATION (Details) | Jan. 01, 2019 | Dec. 31, 2020USD ($)board_member | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Statutory Financial Information [Line Items] | ||||
Statutory net income | $ 85,000,000 | $ 364,000,000 | $ 268,000,000 | |
Axis Corporate Capital UK Limited | ||||
Statutory Financial Information [Line Items] | ||||
Capital support, percentage | 70.00% | 70.00% | ||
Axis Corporate Capital UK Limited II | ||||
Statutory Financial Information [Line Items] | ||||
Capital support, percentage | 30.00% | 30.00% | ||
Axis Corporate Capital UK Limited | Cash | ||||
Statutory Financial Information [Line Items] | ||||
Financial instruments, as collateral, at fair value | $ 12,000,000 | 22,000,000 | ||
Axis Corporate Capital UK Limited | Fixed maturities and short-term investments | ||||
Statutory Financial Information [Line Items] | ||||
Financial instruments, as collateral, at fair value | 746,000,000 | 725,000,000 | ||
Axis Corporate Capital UK II Limited | ||||
Statutory Financial Information [Line Items] | ||||
Financial instruments, as collateral, released from restriction | 32,000,000 | 47,000,000 | ||
Axis Corporate Capital UK II Limited | Cash | ||||
Statutory Financial Information [Line Items] | ||||
Financial instruments, as collateral, at fair value | 14,000,000 | 5,000,000 | ||
Axis Corporate Capital UK II Limited | Fixed maturities and short-term investments | ||||
Statutory Financial Information [Line Items] | ||||
Financial instruments, as collateral, at fair value | 361,000,000 | 513,000,000 | ||
Axis Corporate Capital UK II Limited | Equity securities | ||||
Statutory Financial Information [Line Items] | ||||
Financial instruments, as collateral, at fair value | 23,000,000 | 49,000,000 | ||
Bermuda | ||||
Statutory Financial Information [Line Items] | ||||
Required statutory capital and surplus | 1,584,854,000 | 1,502,153,000 | ||
Available statutory capital and surplus | 3,004,077,000 | 3,288,752,000 | ||
Minimum solvency margin amount | $ 100,000,000 | |||
Minimum solvency margin percentage of net written premiums | 50.00% | |||
Minimum solvency margin percentage of net reserves | 15.00% | |||
Minimum solvency margin percentage of ECR | 25.00% | |||
Limit - prior year's total statutory capital surplus (Bermuda) | 25.00% | |||
Number of directors required to sign affidavits in order to pay dividend/distribution greater than 25% of prior year statutory capital and surplus | board_member | 2 | |||
Maximum dividend/distribution payable without regulatory approval | $ 792,000,000 | 844,000,000 | ||
Ireland | ||||
Statutory Financial Information [Line Items] | ||||
Required statutory capital and surplus | 778,493,000 | 719,405,000 | ||
Available statutory capital and surplus | 1,085,317,000 | 1,069,621,000 | ||
Maximum dividend/distribution payable with regulatory approval | 11,000,000 | 70,000,000 | ||
U.S. | ||||
Statutory Financial Information [Line Items] | ||||
Required statutory capital and surplus | 542,824,000 | 500,750,000 | ||
Available statutory capital and surplus | 1,685,684,000 | 1,713,013,000 | ||
Maximum dividend/distribution payable without regulatory approval | $ 110,000,000 | $ 141,000,000 | ||
Maximum dividend limit - percentage of total statutory capital and surplus | 10.00% |
UNAUDITED CONDENSED QUARTERLY_3
UNAUDITED CONDENSED QUARTERLY FINANCIAL DATA (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Effect of Fourth Quarter Events [Line Items] | |||||||||||
Net premiums earned | $ 1,087,368 | $ 1,091,312 | $ 1,104,003 | $ 1,088,625 | $ 1,172,051 | $ 1,157,307 | $ 1,123,607 | $ 1,134,212 | $ 4,371,309 | $ 4,587,178 | $ 4,791,495 |
Net investment income | 109,503 | 101,956 | 45,040 | 93,101 | 117,557 | 115,763 | 137,949 | 107,303 | 349,601 | 478,572 | 438,507 |
Net investment gains (losses) | 83,356 | 55,609 | 53,043 | (62,877) | 42,712 | 14,527 | 21,225 | 12,767 | 129,133 | 91,233 | (150,218) |
Underwriting income (loss) | (80,835) | (135,324) | 87,412 | (196,767) | (49,254) | (78,718) | 78,659 | 77,822 | |||
Net income (loss) available (attributable) to common shareholders | $ (4,819) | $ (72,945) | $ 112,477 | $ (185,390) | $ (9,897) | $ 27,745 | $ 166,387 | $ 98,125 | $ (150,674) | $ 282,361 | $ 396 |
Earnings (loss) per common share (in dollars per share) | $ (0.06) | $ (0.87) | $ 1.33 | $ (2.20) | $ (0.12) | $ 0.33 | $ 1.98 | $ 1.17 | $ (1.79) | $ 3.37 | $ 0 |
Earnings (loss) per diluted common share (in dollars per share) | $ (0.06) | $ (0.87) | $ 1.33 | $ (2.20) | $ (0.12) | $ 0.33 | $ 1.97 | $ 1.16 | $ (1.79) | $ 3.34 | $ 0 |
General and administrative expenses | $ 579,790 | $ 634,831 | $ 627,389 | ||||||||
Transaction and reorganization expenses | $ 7,000 | $ 1,000 | $ 400 | $ (1,000) | $ 8,000 | $ 11,000 | $ 3,000 | $ 15,000 | |||
Amortization of value of business acquired | 1,000 | 1,000 | 1,000 | 2,000 | 2,000 | 4,000 | 7,000 | 13,000 | 5,139 | 26,722 | 172,332 |
Corporate | |||||||||||
Effect of Fourth Quarter Events [Line Items] | |||||||||||
General and administrative expenses | $ 27,000 | $ 21,000 | $ 27,000 | $ 27,000 | $ 32,000 | $ 29,000 | $ 32,000 | $ 36,000 | $ 101,822 | $ 129,096 | $ 108,221 |
SCHEDULE I - SUMMARY OF INVES_2
SCHEDULE I - SUMMARY OF INVESTMENTS - OTHER THAN INVESTMENTS IN RELATED PARTIES (Details) $ in Thousands | Dec. 31, 2020USD ($) |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Fair value | $ 13,855,047 |
Amount shown on the balance sheet | 14,258,796 |
Fixed maturities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized cost | 11,566,930 |
Fair value | 12,041,799 |
Amount shown on the balance sheet | 12,041,799 |
U.S. government and agency | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized cost | 1,881,489 |
Fair value | 1,918,699 |
Amount shown on the balance sheet | 1,918,699 |
Non-U.S. government | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized cost | 632,875 |
Fair value | 671,273 |
Amount shown on the balance sheet | 671,273 |
Corporate debt | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized cost | 4,408,351 |
Fair value | 4,655,951 |
Amount shown on the balance sheet | 4,655,951 |
Agency RMBS | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized cost | 1,244,727 |
Fair value | 1,286,209 |
Amount shown on the balance sheet | 1,286,209 |
CMBS | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized cost | 1,268,273 |
Fair value | 1,353,587 |
Amount shown on the balance sheet | 1,353,587 |
Non-agency RMBS | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized cost | 136,198 |
Fair value | 140,104 |
Amount shown on the balance sheet | 140,104 |
ABS | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized cost | 1,712,236 |
Fair value | 1,720,078 |
Amount shown on the balance sheet | 1,720,078 |
Municipals | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized cost | 282,781 |
Fair value | 295,898 |
Amount shown on the balance sheet | 295,898 |
Mortgage loans | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Fair value | 593,290 |
Amount shown on the balance sheet | 593,290 |
Short-term investments | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Fair value | 161,897 |
Amount shown on the balance sheet | 161,897 |
Equity securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Fair value | 518,445 |
Amount shown on the balance sheet | 518,445 |
Other Investments | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Fair value | 539,616 |
Amount shown on the balance sheet | 829,156 |
Equity method investments | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Fair value | 0 |
Amount shown on the balance sheet | $ 114,209 |
SCHEDULE II - CONDENSED BALANCE
SCHEDULE II - CONDENSED BALANCE SHEETS (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and cash equivalents | $ 902,831 | $ 1,241,109 |
Other assets | 305,544 | 287,892 |
Total assets | 25,877,687 | 25,604,054 |
Liabilities | ||
Other liabilities | 322,564 | 375,911 |
Total liabilities | 20,581,993 | 20,060,046 |
Shareholders’ equity | ||
Preferred shares | 550,000 | 775,000 |
Common shares (shares issued 2020: 176,580; 2019: 176,580 shares outstanding 2020: 84,353; 2019: 83,959) | 2,206 | 2,206 |
Additional paid-in capital | 2,330,054 | 2,317,212 |
Accumulated other comprehensive income | 414,395 | 171,710 |
Retained earnings | 5,763,607 | 6,056,686 |
Treasury shares, at cost (2020: 92,227; 2019: 92,621) | (3,764,568) | (3,778,806) |
Total shareholders’ equity | 5,295,694 | 5,544,008 |
Total liabilities and shareholders’ equity | 25,877,687 | 25,604,054 |
AXIS Capital Holdings Limited | ||
Assets | ||
Investments in subsidiaries | 5,633,176 | 5,807,851 |
Cash and cash equivalents | 1,711 | 3,103 |
Other assets | 5,832 | 5,540 |
Total assets | 5,640,719 | 5,816,494 |
Liabilities | ||
Intercompany payable | 289,486 | 215,911 |
Dividends payable | 50,153 | 50,927 |
Other liabilities | 5,386 | 5,648 |
Total liabilities | 345,025 | 272,486 |
Shareholders’ equity | ||
Preferred shares | 550,000 | 775,000 |
Common shares (shares issued 2020: 176,580; 2019: 176,580 shares outstanding 2020: 84,353; 2019: 83,959) | 2,206 | 2,206 |
Additional paid-in capital | 2,330,054 | 2,317,212 |
Accumulated other comprehensive income | 414,395 | 171,710 |
Retained earnings | 5,763,607 | 6,056,686 |
Treasury shares, at cost (2020: 92,227; 2019: 92,621) | (3,764,568) | (3,778,806) |
Total shareholders’ equity | 5,295,694 | 5,544,008 |
Total liabilities and shareholders’ equity | $ 5,640,719 | $ 5,816,494 |
SCHEDULE II - CONDENSED BALAN_2
SCHEDULE II - CONDENSED BALANCE SHEETS - Additional Information (Details) - shares shares in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Condensed Financial Information of Parent Company [Line Items] | ||
Common shares, shares issued (in shares) | 176,580 | 176,580 |
Common Stock, Shares, Outstanding | 84,353 | 83,959 |
Treasury shares (in shares) | 92,227 | 92,621 |
AXIS Capital Holdings Limited | ||
Condensed Financial Information of Parent Company [Line Items] | ||
Common shares, shares issued (in shares) | 176,580 | 176,580 |
Common Stock, Shares, Outstanding | 84,353 | 83,959 |
Treasury shares (in shares) | 92,227 | 92,621 |
SCHEDULE II - CONDENSED BALAN_3
SCHEDULE II - CONDENSED BALANCE SHEETS - Footnotes (Details) - USD ($) | Dec. 31, 2020 | Dec. 10, 2019 | Jun. 19, 2019 | Dec. 06, 2017 | Mar. 13, 2014 |
Senior Notes | Senior Notes Due 2045 Axis Specialty Finance PLC 2014 | |||||
Condensed Financial Information of Parent Company [Line Items] | |||||
Interest rate | 5.15% | ||||
Senior Notes | Senior Notes Axis Specialty Finance PLC 2017 | |||||
Condensed Financial Information of Parent Company [Line Items] | |||||
Interest rate | 4.00% | ||||
Senior Notes | 3.900% Senior Notes | |||||
Condensed Financial Information of Parent Company [Line Items] | |||||
Interest rate | 3.90% | ||||
Aggregate Principal | $ 300,000,000 | ||||
Senior Notes | 3.900% Senior Notes | Full and Unconditional Guarantee of Debt | |||||
Condensed Financial Information of Parent Company [Line Items] | |||||
Interest rate | 3.90% | ||||
Aggregate Principal | $ 300,000,000 | ||||
Junior Subordinated Notes | |||||
Condensed Financial Information of Parent Company [Line Items] | |||||
Interest rate | 4.90% | ||||
Aggregate Principal | $ 425,000,000 | ||||
Junior Subordinated Notes | 2010 AXIS Specialty Finance LLC Senior Notes | Full and Unconditional Guarantee of Debt | |||||
Condensed Financial Information of Parent Company [Line Items] | |||||
Interest rate | 4.90% | ||||
Aggregate Principal | $ 425,000,000 | ||||
AXIS Capital Holdings Limited | Senior Notes | Senior Notes Due 2045 Axis Specialty Finance PLC 2014 | Full and Unconditional Guarantee of Debt | |||||
Condensed Financial Information of Parent Company [Line Items] | |||||
Principal amount guaranteed | $ 250,000,000 | ||||
Interest rate | 5.15% | ||||
AXIS Capital Holdings Limited | Senior Notes | Senior Notes Axis Specialty Finance PLC 2017 | Full and Unconditional Guarantee of Debt | |||||
Condensed Financial Information of Parent Company [Line Items] | |||||
Principal amount guaranteed | $ 350,000,000 | ||||
Interest rate | 4.00% | ||||
AXIS Specialty Finance LLC | |||||
Condensed Financial Information of Parent Company [Line Items] | |||||
Percentage ownership in subsidiary | 100.00% | 100.00% | 100.00% | 100.00% | |
AXIS Specialty Finance PLC | Senior Notes | 2010 AXIS Specialty Finance LLC Senior Notes | Full and Unconditional Guarantee of Debt | |||||
Condensed Financial Information of Parent Company [Line Items] | |||||
Percentage ownership in subsidiary | 100.00% |
SCHEDULE II - CONDENSED STATEME
SCHEDULE II - CONDENSED STATEMENTS OF OPERATIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues | |||||||||||
Total revenues | $ 4,841,954 | $ 5,173,427 | $ 5,090,406 | ||||||||
Expenses | |||||||||||
Net income (loss) | (120,424) | 323,473 | 43,021 | ||||||||
Preferred share dividends | 30,250 | 41,112 | 42,625 | ||||||||
Net income (loss) available (attributable) to common shareholders | $ (4,819) | $ (72,945) | $ 112,477 | $ (185,390) | $ (9,897) | $ 27,745 | $ 166,387 | $ 98,125 | (150,674) | 282,361 | 396 |
Comprehensive income (loss) | 122,261 | 672,293 | (158,973) | ||||||||
AXIS Capital Holdings Limited | |||||||||||
Revenues | |||||||||||
Net investment income | 750 | 1,800 | 900 | ||||||||
Total revenues | 750 | 1,800 | 900 | ||||||||
Expenses | |||||||||||
General and administrative expenses | 37,629 | 53,335 | 29,250 | ||||||||
Total expenses | 37,629 | 53,335 | 29,250 | ||||||||
Income (loss) before equity in net income (loss) of subsidiaries | (36,879) | (51,535) | (28,350) | ||||||||
Equity in net income (loss) of subsidiaries | (83,545) | 375,008 | 71,371 | ||||||||
Net income (loss) | (120,424) | 323,473 | 43,021 | ||||||||
Preferred share dividends | 30,250 | 41,112 | 42,625 | ||||||||
Net income (loss) available (attributable) to common shareholders | (150,674) | 282,361 | 396 | ||||||||
Comprehensive income (loss) | $ 122,261 | $ 672,293 | $ (158,973) |
SCHEDULE II - CONDENSED STATE_2
SCHEDULE II - CONDENSED STATEMENTS OF CASH FLOWS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||
Net income | $ (120,424) | $ 323,473 | $ 43,021 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Other items | (97,064) | (94,379) | 26,452 |
Net cash provided by operating activities | 343,503 | 199,004 | 10,773 |
Cash flows from financing activities: | |||
Taxes paid on withholding shares | (10,382) | (10,165) | (10,080) |
Dividends paid - common shares | (141,590) | (137,209) | (133,502) |
Repurchase of preferred shares | (225,000) | 0 | 0 |
Dividends paid - preferred shares | (31,831) | (42,625) | (42,625) |
Net cash used in financing activities | (908,803) | 277,510 | (186,207) |
Increase (decrease) in cash, cash equivalents and restricted cash | (73,225) | (253,563) | 466,234 |
Cash, cash equivalents and restricted cash - beginning of year | 1,576,457 | 1,830,020 | 1,363,786 |
Cash, cash equivalents and restricted cash - end of year | 1,503,232 | 1,576,457 | 1,830,020 |
AXIS Capital Holdings Limited | |||
Cash flows from operating activities: | |||
Net income | (120,424) | 323,473 | 43,021 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Equity in net (income) loss of subsidiaries | 83,545 | (375,008) | (71,371) |
Change in intercompany payable | 73,575 | (32,081) | 87,042 |
Dividends received from subsidiaries | 350,000 | 250,000 | 200,000 |
Other items | 20,715 | 23,619 | (79,927) |
Net cash provided by operating activities | 407,411 | 190,003 | 178,765 |
Cash flows from financing activities: | |||
Taxes paid on withholding shares | (10,382) | (10,165) | (10,080) |
Dividends paid - common shares | (141,590) | (137,209) | (133,502) |
Repurchase of preferred shares | (225,000) | 0 | 0 |
Dividends paid - preferred shares | (31,831) | (42,625) | (42,625) |
Net cash used in financing activities | (408,803) | (189,999) | (186,207) |
Increase (decrease) in cash, cash equivalents and restricted cash | (1,392) | 4 | (7,442) |
Cash, cash equivalents and restricted cash - beginning of year | 3,103 | 3,099 | 10,541 |
Cash, cash equivalents and restricted cash - end of year | $ 1,711 | $ 3,103 | $ 3,099 |
SCHEDULE III - SUPPLEMENTARY _2
SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Supplementary Insurance Information [Line Items] | |||||||||||
Deferred acquisition costs | $ 431,439 | $ 492,119 | $ 431,439 | $ 492,119 | $ 566,622 | ||||||
Reserve for losses and loss expenses | 13,926,766 | 12,752,081 | 13,926,766 | 12,752,081 | 12,280,769 | ||||||
Unearned premiums | 3,685,886 | 3,626,246 | 3,685,886 | 3,626,246 | 3,635,758 | ||||||
Net premiums earned | 4,371,309 | 4,587,178 | 4,791,495 | ||||||||
Net investment income | 349,601 | 478,572 | 438,507 | ||||||||
Net losses and loss expenses | 3,281,252 | 3,044,798 | 3,190,287 | ||||||||
Acquisition costs | 929,517 | 1,024,582 | 968,835 | ||||||||
Other operating expenses | 579,790 | 634,831 | 627,389 | ||||||||
Net premiums written | 4,336,409 | 4,489,615 | 4,658,962 | ||||||||
General and administrative expenses | 579,790 | 634,831 | 627,389 | ||||||||
Operating Segments | |||||||||||
Supplementary Insurance Information [Line Items] | |||||||||||
General and administrative expenses | 477,968 | 505,735 | 519,168 | ||||||||
Operating Segments | Insurance | |||||||||||
Supplementary Insurance Information [Line Items] | |||||||||||
Deferred acquisition costs | 176,749 | 191,925 | 176,749 | 191,925 | 209,622 | ||||||
Reserve for losses and loss expenses | 7,310,498 | 6,496,568 | 7,310,498 | 6,496,568 | 6,426,309 | ||||||
Unearned premiums | 2,295,763 | 2,115,664 | 2,295,763 | 2,115,664 | 2,061,123 | ||||||
Net premiums earned | 2,299,038 | 2,190,084 | 2,362,606 | ||||||||
Net investment income | 0 | 0 | 0 | ||||||||
Net losses and loss expenses | 1,697,014 | 1,278,679 | 1,494,323 | ||||||||
Acquisition costs | 461,533 | 468,281 | 399,193 | ||||||||
Other operating expenses | 378,839 | 401,963 | 395,252 | ||||||||
Net premiums written | 2,357,501 | 2,209,155 | 2,324,747 | ||||||||
General and administrative expenses | 378,839 | 401,963 | 395,252 | ||||||||
Operating Segments | Reinsurance | |||||||||||
Supplementary Insurance Information [Line Items] | |||||||||||
Deferred acquisition costs | 254,690 | 300,194 | 254,690 | 300,194 | 357,000 | ||||||
Reserve for losses and loss expenses | 6,616,268 | 6,255,513 | 6,616,268 | 6,255,513 | 5,854,460 | ||||||
Unearned premiums | 1,390,123 | 1,510,582 | 1,390,123 | 1,510,582 | 1,574,635 | ||||||
Net premiums earned | 2,072,271 | 2,397,094 | 2,428,889 | ||||||||
Net investment income | 0 | 0 | 0 | ||||||||
Net losses and loss expenses | 1,584,238 | 1,766,119 | 1,695,964 | ||||||||
Acquisition costs | 467,984 | 556,301 | 569,642 | ||||||||
Other operating expenses | 99,129 | 103,772 | 123,916 | ||||||||
Net premiums written | 1,978,908 | 2,280,460 | 2,334,215 | ||||||||
General and administrative expenses | 99,129 | 103,772 | 123,916 | ||||||||
Corporate | |||||||||||
Supplementary Insurance Information [Line Items] | |||||||||||
Deferred acquisition costs | 0 | 0 | 0 | 0 | 0 | ||||||
Reserve for losses and loss expenses | 0 | 0 | 0 | 0 | 0 | ||||||
Unearned premiums | 0 | 0 | 0 | 0 | 0 | ||||||
Net premiums earned | 0 | 0 | 0 | ||||||||
Net investment income | 349,601 | 478,572 | 438,507 | ||||||||
Net losses and loss expenses | 0 | 0 | 0 | ||||||||
Acquisition costs | 0 | 0 | 0 | ||||||||
Other operating expenses | 101,822 | 129,096 | 108,221 | ||||||||
Net premiums written | 0 | 0 | 0 | ||||||||
General and administrative expenses | $ 27,000 | $ 21,000 | $ 27,000 | $ 27,000 | $ 32,000 | $ 29,000 | $ 32,000 | $ 36,000 | $ 101,822 | $ 129,096 | $ 108,221 |
SCHEDULE IV - SUPPLEMENTARY R_2
SCHEDULE IV - SUPPLEMENTARY REINSURANCE INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Supplementary Insurance Information [Line Items] | |||
GROSS AMOUNT | $ 3,610,201 | $ 3,275,997 | $ 3,468,040 |
CEDED TO OTHER COMPANIES | 2,490,529 | 2,409,243 | 2,251,103 |
ASSUMED FROM OTHER COMPANIES | 3,216,737 | 3,622,861 | 3,442,025 |
NET AMOUNT | $ 4,336,409 | $ 4,489,615 | $ 4,658,962 |
PERCENTAGE OF AMOUNT ASSUMED TO NET | 74.20% | 80.70% | 73.90% |
Property and Casualty | |||
Supplementary Insurance Information [Line Items] | |||
GROSS AMOUNT | $ 3,455,690 | $ 3,134,462 | $ 3,258,999 |
CEDED TO OTHER COMPANIES | 2,446,890 | 2,311,001 | 2,163,417 |
ASSUMED FROM OTHER COMPANIES | 2,840,834 | 3,187,623 | 3,074,906 |
NET AMOUNT | $ 3,849,634 | $ 4,011,084 | $ 4,170,488 |
PERCENTAGE OF AMOUNT ASSUMED TO NET | 73.80% | 79.50% | 73.70% |
Accident and health | |||
Supplementary Insurance Information [Line Items] | |||
GROSS AMOUNT | $ 154,511 | $ 141,535 | $ 209,041 |
CEDED TO OTHER COMPANIES | 43,639 | 98,242 | 87,686 |
ASSUMED FROM OTHER COMPANIES | 375,903 | 435,238 | 367,119 |
NET AMOUNT | $ 486,775 | $ 478,531 | $ 488,474 |
PERCENTAGE OF AMOUNT ASSUMED TO NET | 77.20% | 91.00% | 75.20% |