Document and Entity Information
Document and Entity Information - shares | 12 Months Ended | |
Dec. 31, 2019 | Mar. 06, 2020 | |
Document Document And Entity Information [Abstract] | ||
Document Type | 20-F | |
Document Annual Report | true | |
Document Transition Report | false | |
Document Shell Company Report | false | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | FY | |
Entity Registrant Name | ASPEN INSURANCE HOLDINGS LTD | |
Entity Central Index Key | 0001267395 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Voluntary Filers | No | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 60,395,839 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Investments: | |||
Fixed income maturities, available for sale (amortized cost — $4,845.2 and $5,282.3) | $ 4,958,200 | $ 5,230,700 | |
Catastrophe bonds, trading at fair value ( cost — $29.4 and $37.9) | 28,600 | 36,200 | |
Privately-held investments, trading at fair value (amortized cost — $279.2 and $0) | 279,700 | 0 | |
Investments, equity method | 67,900 | 67,100 | |
Other investments | 111,400 | 102,500 | |
Total investments | 6,771,400 | 6,739,400 | |
Cash and cash equivalents (including cash within consolidated variable interest entities of — $69.1 and $26.9) | 1,030,500 | 1,083,700 | |
Reinsurance recoverables: | |||
Unpaid losses | 2,319,800 | 2,077,600 | |
Ceded unearned premiums | 443,700 | 558,800 | |
Receivables: | |||
Underwriting premiums | 1,318,400 | 1,459,300 | |
Other | 114,300 | 121,200 | |
Funds withheld | 85,000 | 91,800 | |
Deferred policy acquisition costs | 291,100 | 248,500 | |
Derivatives at fair value | 12,900 | 14,600 | |
Receivables for securities sold | 5,100 | 3,200 | |
Office properties and equipment | 64,800 | 73,100 | |
Right-of-use operating lease assets | 93,500 | 0 | |
Income tax recoverable | 4,500 | 0 | |
Deferred tax assets | 0 | 35,400 | |
Other assets | 1,600 | 0 | |
Intangible assets and goodwill | 23,900 | 26,300 | |
Total assets | 12,580,500 | 12,532,900 | |
Insurance reserves | |||
Losses and loss adjustment expenses | 6,951,800 | 7,074,200 | |
Unearned premiums | 1,737,700 | 1,709,100 | |
Total insurance reserves | 8,689,500 | 8,783,300 | |
Reinsurance Payable | 439,600 | 421,200 | [1] |
Payables | |||
Income taxes payable | 2,700 | 100 | |
Accrued expenses and other payables | 220,800 | 247,400 | |
Payables for securities purchased | 2,200 | 700 | |
Operating lease liabilities | 113,200 | ||
Liabilities under derivative contracts | 87,200 | 15,100 | |
Total payables | 865,700 | 684,500 | |
Long-term debt | 299,800 | 424,700 | |
Total liabilities | 9,855,000 | 9,892,500 | |
Commitments and contingent liabilities (see Note 20) | 0 | 0 | |
Ordinary shares: | |||
60,395,839 shares of par value $.01 each (December 31, 2018 — 59,743,156 of par value 0.15144558¢ each) | 604 | 90 | |
Preference shares: | |||
Non-controlling interest | 0 | 3,700 | |
Additional paid-in capital | 1,201,700 | 967,500 | |
Retained earnings | 1,514,600 | 1,791,000 | |
Accumulated other comprehensive income/(loss), net of taxes | 8,600 | (121,900) | |
Total shareholders’ equity | 2,725,500 | 2,640,400 | |
Total liabilities and shareholders’ equity | 12,580,500 | 12,532,900 | |
5.950% Preference Shares (AHL PRC) | |||
Preference shares: | |||
Preference shares, value | 0 | 0 | |
5.625% Preference Shares (AHL PRD) | |||
Preference shares: | |||
Preference shares, value | 0 | 0 | |
5.625% Preference Shares, rep by Dep Shares (AHL PRE) | |||
Preference shares: | |||
Preference shares, value | 0 | 0 | |
Retained earnings | |||
Preference shares: | |||
Total shareholders’ equity | 1,514,600 | 1,791,000 | |
Fixed Income Investments | |||
Investments: | |||
Fixed income maturities, available for sale (amortized cost — $4,845.2 and $5,282.3) | 4,958,200 | 5,230,700 | |
Short-term investments, trading at fair value (amortized cost — $79.2 and $9.5) | 1,128,800 | 1,187,800 | |
Short-term investments | |||
Investments: | |||
Fixed income maturities, available for sale (amortized cost — $4,845.2 and $5,282.3) | 117,600 | 105,600 | |
Short-term investments, trading at fair value (amortized cost — $79.2 and $9.5) | $ 79,200 | $ 9,500 | |
[1] | Retained earnings have been restated by $15.6 million from January 1, 2017 to account for additional ceded premiums on excess of loss ceded reinsurance contracts for periods December 31, 2016 and prior. |
CONSOLIDATED BALANCE SHEETS Con
CONSOLIDATED BALANCE SHEETS Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fixed income securities, available for sale amortized cost | $ 4,845.2 | $ 5,282.3 |
Fixed income securities, trading, amortized cost | 1,106.6 | 1,205 |
Short term investments available for sale, amortized cost | 117.6 | 105.6 |
Short-term investments, trading, amortized cost | 79.2 | 9.5 |
Cash and cash equivalents, within VIEs | 69.1 | 26.9 |
Catastrophe bonds trading, at fair value | 29.4 | 37.9 |
Privately-held investments, cost, trading at fair value | $ 279.2 | $ 0 |
Ordinary shares, par value | $ 0.01 | $ 0.0015144558 |
Ordinary shares, issued | 60,395,839 | |
Previous Common Stock Shares Issued | 0 | 59,743,156 |
Preference shares, par value | $ 0.0015144558 | $ 0.0015144558 |
5.950% Preference Shares (AHL PRC) | ||
Preference shares, issued | 11,000,000 | 11,000,000 |
Preference shares, rate | 5.95% | 5.95% |
Preference shares, par value | $ 0.0015144558 | $ 0.0015144558 |
5.625% Preference Shares (AHL PRD) | ||
Preference shares, issued | 10,000,000 | 10,000,000 |
Preference shares, rate | 5.625% | 5.625% |
Preference shares, par value | $ 0.0015144558 | $ 0.0015144558 |
5.625% Preference Shares, rep by Dep Shares (AHL PRE) | ||
Preference shares, issued | 10,000,000 | 0 |
Preference shares, rate | 5.625% | 0.00% |
Preference shares, par value | $ 0.0015144558 | $ 0 |
Fixed maturities | ||
Fixed income securities, available for sale amortized cost | $ 4,962.8 | $ 5,387.9 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues | |||
Net earned premium | $ 2,293.3 | $ 2,214.7 | $ 2,306.6 |
Net investment income | 197.3 | 198.2 | 189 |
Realized and unrealized investment gains | 97.1 | 110 | 148.9 |
Other income | 4.9 | 9 | 8.9 |
Total revenues | 2,592.6 | 2,531.9 | 2,653.4 |
Expenses | |||
Losses and loss adjustment expenses | 1,679.7 | 1,573 | 1,994.7 |
Amortization of deferred policy acquisition costs | 412.7 | 371.6 | 400.5 |
General, administrative and corporate expenses | 521.6 | 491.7 | 502.2 |
Interest on long-term debt | 20.2 | 25.9 | 29.5 |
Change in fair value of derivatives | 144.2 | 31.8 | (27.7) |
Change in fair value of loan notes issued by variable interest entities | 3.1 | 4.4 | (21.2) |
Realized and unrealized investment losses | 10.9 | 174.7 | 28.4 |
Realized loss on debt extinguishment | 5.5 | 8.6 | 0 |
Net realized and unrealized foreign exchange losses | 11.8 | 3.5 | 23.9 |
Other expenses | 1.7 | 2.7 | 4.9 |
Total expenses | 2,811.4 | 2,687.9 | 2,935.2 |
(Loss) from operations before income tax | (218.8) | (156) | (281.8) |
Income tax (expense)/benefit | (22.9) | 10.2 | 15.4 |
Net (loss) | (241.7) | (145.8) | (266.4) |
Amount attributable to non-controlling interest | 1.2 | (1) | (1.3) |
Net (loss) attributable to Aspen Insurance Holdings Limited’s ordinary shareholders | (240.5) | (146.8) | (267.7) |
Available for sale investments: | |||
Reclassification adjustment for net realized (losses)/gains on investments included in net income | (6.8) | 5.2 | (4) |
Change in net unrealized gains/(losses) on available for sale securities held | 171.7 | (86.5) | (10.8) |
Net change from current period hedged transactions | 4.8 | (2.1) | 3 |
Change in foreign currency translation adjustment | (28) | 21.5 | (56.4) |
Other comprehensive income/(loss), gross of tax | 141.7 | (61.9) | (68.2) |
Income tax thereon: | |||
Reclassification adjustment for net realized losses on investments included in net income | 0 | (0.7) | 0.4 |
Change in net unrealized gains on available for sale securities held | (13.6) | 5.5 | 1.6 |
Net change from current period hedged transactions | (0.8) | 0.3 | (0.4) |
Change in foreign currency translation adjustment | 3.2 | (9.2) | 15.8 |
Total income tax on other comprehensive income/(loss) | (11.2) | (4.1) | 17.4 |
Other comprehensive (loss)/income, net of tax | 130.5 | (66) | (50.8) |
Total comprehensive (loss) attributable to Aspen Insurance Holdings Limited’s ordinary shareholders | $ (110) | $ (212.8) | $ (318.5) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Millions | Total | Ordinary Shares | Preference Shares | 7.401% Preference Shares | 7.250% Preference Shares | Non-controlling interest | Minority interest buy-out | Additional paid-in capital | Additional paid-in capitalOrdinary Shares | Additional paid-in capitalPreference Shares | Retained earnings | Retained earningsOrdinary Shares | Retained earningsPreference Shares | Gain/(loss) on derivatives, net of taxes: | Cumulative foreign currency translation adjustments, net of taxes: | Unrealized appreciation on available for sale investments, net of taxes: | Restatement AdjustmentRetained earnings | ||
Preference share redemption costs | $ 8 | ||||||||||||||||||
Shareholder's equity beginning balance at Dec. 31, 2016 | $ 0.1 | $ 0 | $ 1.4 | $ 1,259.6 | $ 2,376.7 | $ (0.5) | $ (27.1) | $ 22.5 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Net change attributable to non-controlling interest for the year | $ (1.3) | 1.3 | |||||||||||||||||
Shares issued | 0 | $ 0.5 | 0 | ||||||||||||||||
Ordinary shares repurchased and canceled | 0 | (30) | |||||||||||||||||
Preference shares redeemed and cancelled | (293.2) | ||||||||||||||||||
Preference shares redemption | [1] | 8 | $ (8) | ||||||||||||||||
Share-based compensation | [2] | 9.8 | |||||||||||||||||
Consideration of minority interest | 0 | ||||||||||||||||||
Buy-out of minority interest | 0 | $ 0 | 0 | ||||||||||||||||
Net (loss) | (266.4) | ||||||||||||||||||
Dividends | $ (56.2) | (36.2) | |||||||||||||||||
Dividends due to non-controlling interest | (0.1) | ||||||||||||||||||
Change for the year, net of income tax | (40.6) | (12.8) | |||||||||||||||||
Shareholder's equity ending balance at Dec. 31, 2017 | 2,912.9 | 0.1 | 0 | 2.7 | 954.7 | 2,011.3 | 2.1 | (67.7) | 9.7 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Retained earnings restatement | [3] | $ 15.6 | |||||||||||||||||
Preferred Stock, Dividend Rate, Percentage | 7.401% | 7.25% | |||||||||||||||||
Share-based payment | Accounting Standards Update 2016-09 | 7.9 | 2.8 | [4] | ||||||||||||||||
Net change from current period hedged transactions | 2.6 | ||||||||||||||||||
Total accumulated other comprehensive income/(loss), net of taxes | (55.9) | ||||||||||||||||||
Net change attributable to non-controlling interest for the year | (1) | 1 | |||||||||||||||||
Shares issued | 0 | 2.7 | 0 | ||||||||||||||||
Ordinary shares repurchased and canceled | 0 | 0 | |||||||||||||||||
Preference shares redeemed and cancelled | 0 | ||||||||||||||||||
Preference shares redemption | [1] | 0 | 0 | ||||||||||||||||
Share-based compensation | [2] | 10.1 | |||||||||||||||||
Consideration of minority interest | 0 | ||||||||||||||||||
Buy-out of minority interest | 0 | 0 | 0 | ||||||||||||||||
Net (loss) | (145.8) | ||||||||||||||||||
Dividends | (42.9) | (30.5) | |||||||||||||||||
Dividends due to non-controlling interest | (0.1) | ||||||||||||||||||
Change for the year, net of income tax | 12.3 | (76.5) | |||||||||||||||||
Shareholder's equity ending balance at Dec. 31, 2018 | 2,640.4 | 0.1 | 0 | 3.7 | 967.5 | 1,791 | 0.3 | (55.4) | (66.8) | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Share-based payment | Accounting Standards Update 2016-09 | 10.1 | 0 | [4] | ||||||||||||||||
Net change from current period hedged transactions | (1.8) | ||||||||||||||||||
Total accumulated other comprehensive income/(loss), net of taxes | (121.9) | ||||||||||||||||||
Net change attributable to non-controlling interest for the year | 1.2 | (1.2) | |||||||||||||||||
Shares issued | 0.6 | 0.8 | 241.6 | ||||||||||||||||
Ordinary shares repurchased and canceled | (0.1) | $ 0 | |||||||||||||||||
Preference shares redeemed and cancelled | 0 | ||||||||||||||||||
Preference shares redemption | [1] | $ 0 | 0 | ||||||||||||||||
Share-based compensation | [2] | (9.9) | |||||||||||||||||
Consideration of minority interest | (0.8) | ||||||||||||||||||
Buy-out of minority interest | 0.8 | $ (2.5) | 2.5 | ||||||||||||||||
Net (loss) | (241.7) | ||||||||||||||||||
Dividends | $ 0 | $ (35.9) | |||||||||||||||||
Dividends due to non-controlling interest | 0 | ||||||||||||||||||
Change for the year, net of income tax | (24.8) | 151.3 | |||||||||||||||||
Shareholder's equity ending balance at Dec. 31, 2019 | 2,725.5 | $ 0.6 | $ 0 | $ 0 | $ 1,201.7 | 1,514.6 | 4.3 | $ (80.2) | $ 84.5 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Share-based payment | Accounting Standards Update 2016-09 | [4] | $ 0 | |||||||||||||||||
Net change from current period hedged transactions | $ 4 | ||||||||||||||||||
Total accumulated other comprehensive income/(loss), net of taxes | $ 8.6 | ||||||||||||||||||
[1] | The $8.0 million deduction from net income in 2017 is attributable to the reclassification from additional paid-in capital to retained earnings representing the difference between the capital raised upon issuance of the 7.401% and 7.250% Perpetual Non-Cumulative Preference Shares, net of issuance costs, and the final redemption costs of $293.2 million. | ||||||||||||||||||
[2] | The balance in 2017 includes $7.9 million reclassification from accrued expenses and other payable as a result of the classification of restricted share units as equity following the adoption of ASU 2016-09 -“Compensation — Stock Compensation”. The balance in 2018 of $10.1 million is a reclassification from accrued expenses and other payables as a result of the net settlement of restricted share units following the adoption of ASU 2016-09. The balance in 2019 of $(9.9) million relates to the reclassification between additional paid-in capital to accrued expenses and other payables as a result of the net settlement of taxes on restricted share units. | ||||||||||||||||||
[3] | Reinsurance premiums payables and retained earnings have been restated by $15.6 million from January 1, 2017 to account for additional ceded premiums on excess of loss ceded reinsurance contracts for periods December 31, 2016 and prior. | ||||||||||||||||||
[4] | The $2.8 million relates to the cumulative effect-adjustment to opening retained earnings as a result of the classification of restricted share units as equity following the adoption of ASU 2016-09. The adjustment has been applied using a modified retrospective approach. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Cash flows (used in)/from operating activities: | ||||
Net (loss) | $ (241.7) | $ (145.8) | $ (266.4) | |
Proportion due to non-controlling interest | 1.2 | (1) | (1.3) | |
Adjustments to reconcile net income to net cash flows from operating activities: | ||||
Depreciation and amortization | 39.8 | 43.4 | 62.2 | |
Impairment of lease assets | 12.3 | 0 | 0 | |
Amortization of right-of-use operating lease assets | 13.4 | 0 | 0 | |
Interest on operating lease liabilities | 4.6 | 0 | 0 | |
Share-based compensation | 0 | 10.1 | 9.8 | |
Realized and unrealized investment gains | (97.1) | (110) | (148.9) | |
Realized and unrealized investment losses | 10.9 | 174.7 | 28.4 | |
Deferred taxes | 24.7 | (7.1) | (32.5) | |
Change in fair value of loan notes issued by variable interest entities | 3.1 | 4.4 | (21.2) | |
Net realized and unrealized investment foreign exchange (gains)/losses | 28.1 | (0.8) | (15) | |
Net change from current period hedged transactions | 4.8 | (1.8) | 2.6 | |
Insurance reserves: | ||||
Losses and loss adjustment expenses | (203) | 402.5 | 1,292.2 | |
Unearned premiums | 18 | (91.6) | 174.1 | |
Reinsurance recoverables: | ||||
Unpaid losses | (236.3) | (575.8) | (943.7) | |
Ceded unearned premiums | 116 | (44.8) | (257.6) | |
Other receivables | (0.4) | 29.9 | (48.2) | |
Deferred policy acquisition costs | (41.1) | 41.7 | 69.4 | |
Reinsurance premiums payable | 19.5 | 52.1 | 23.8 | |
Funds withheld | 6.8 | 8 | (26.7) | |
Premiums receivable | 144.8 | 31.6 | (88.7) | |
Income tax payable | (1.2) | 1.6 | 15.9 | |
Accrued expenses and other payable | (19.3) | (88.2) | 147 | |
Fair value of derivatives and settlement of liabilities under derivatives | 73.8 | 5.9 | (16.6) | |
Long-term debt and loan notes issued by variable interest entities | 0.1 | (44) | (70.6) | |
Operating lease liabilities | (18) | 0 | 0 | |
Other assets | (1.6) | 0.5 | 0.5 | |
Net cash (used in) operating activities | (337.8) | (304.5) | (111.5) | |
Cash flows from/(used in) investing activities: | ||||
(Purchases) of fixed income securities — Available for sale | (1,650.7) | (1,785.6) | (1,573.2) | |
(Purchases) of fixed income securities — Trading | (1,169.1) | (1,260.9) | (1,312.9) | |
Proceeds from sales and maturities of fixed income securities — Available for sale | 2,105.3 | 1,647.1 | 2,018.8 | |
Proceeds from sales and maturities of fixed income securities — Trading | 1,302.7 | 1,661 | 957.6 | |
(Purchases) of equity securities — Trading | 0 | (16.5) | (131.3) | |
Net proceeds of catastrophe bonds — Trading | 7.5 | (4.1) | 7.4 | |
Proceeds from sales of equity securities — Trading | 0 | 505.6 | 316.3 | |
(Purchases) of short-term investments — Available for sale | (182.7) | (130.8) | (130.7) | |
Proceeds from sale of short-term investments — Available for sale | 159 | 113.2 | 189.5 | |
(Purchases) of short-term investments — Trading | (193.6) | (16.4) | (96) | |
Proceeds from sale of short-term investments — Trading | 141.1 | 78.9 | 212 | |
(Purchases) of privately-held investments — Trading | (287.3) | 0 | 0 | |
Proceeds from sale of privately-held investments — Trading | 9.8 | 0 | ||
Net change in (payable)/receivable for securities (purchased)/sold | (0.4) | (5.5) | (9.9) | |
Net (purchases) of investments, equity method | 0 | (100) | 0 | |
Net proceeds in (purchases)/sales from other investments | 0 | 0 | (0.5) | |
(Net) purchases of equipment | (22.2) | (27.3) | (35) | |
Sale of investment | 0 | 0 | 9.3 | |
Net (purchases) of investments, equity method | (1.1) | (1.4) | (2.4) | |
Net cash from/(used in) investing activities | 218.3 | 657.3 | 419 | |
Cash flows from/(used in) financing activities: | ||||
Proceeds from the issuance of ordinary shares, net of issuance costs | 1.4 | 2.7 | 0.5 | |
Ordinary shares canceled | (0.1) | 0 | (30) | |
Preference shares issuance | 241.6 | 0 | 0 | |
Preference share redemption | 0 | 0 | (293.2) | |
Buy-out of minority interest | (0.8) | 0 | 0 | |
Repayment of long-term debt issued by Silverton | (7.7) | (86.4) | (115.6) | |
Dividends paid on ordinary shares | 0 | (42.9) | (56.2) | |
Dividends paid on preference shares | (35.9) | (30.5) | (36.2) | |
Dividends paid to non-controlling interest | 0 | (0.1) | (0.1) | |
Contingent consideration - earn out provision settlement | 0 | (11.7) | 0 | |
Long-term debt repayment | (125) | (125) | 0 | |
Make-whole payment | (5.5) | (8.6) | 0 | |
Cash paid for withholdings purposes | [1] | (2.8) | (4.7) | (9.6) |
Net cash from/(used in) financing activities | 65.2 | (307.2) | (540.4) | |
Effect of exchange rate movements on cash and cash equivalents | 1.1 | (16.7) | 13.9 | |
(Decrease)/increase in cash and cash equivalents | (53.2) | 28.9 | (219) | |
Cash and cash equivalents at beginning of period | 1,083.7 | 1,054.8 | ||
Cash and cash equivalents at end of period | 1,030.5 | 1,083.7 | 1,054.8 | |
Supplemental disclosure of cash flow information: | ||||
Net cash (received)/paid during the period for income tax | (4.7) | (0.3) | 3.4 | |
Cash paid during the period for interest | $ 19 | $ 25.3 | $ 29 | |
[1] | The cash paid to the tax authority when withholding shares from employees’ awards for tax-withholding purposes has been reclassified from operating activity to financing activity following the adoption of ASU 2016-09 -“Compensation — Stock Compensation”. |
History, Organization and Busin
History, Organization and Business Combination | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
History, Organization and Business Combination | History, Organization and Business Combination History and Organization. Aspen Insurance Holdings Limited (“Aspen Holdings”) was incorporated on May 23, 2002 as a holding company headquartered in Bermuda. We underwrite specialty insurance and reinsurance on a global basis through our Operating Subsidiaries (as defined below) based in Bermuda, the United States and the United Kingdom: Aspen Insurance UK Limited (“Aspen U.K.”) and Aspen Underwriting Limited (“AUL”) (as corporate member of our Lloyd’s operations, which are managed by Aspen Managing Agency Limited (“AMAL”)), Aspen Bermuda Limited (“Aspen Bermuda”), Aspen Specialty Insurance Company (“Aspen Specialty”) and Aspen American Insurance Company (“AAIC”) (each referred to herein an “Operating Subsidiary” and collectively referred to as the “Operating Subsidiaries”). We also have branches in Australia, Canada, Singapore and Switzerland. We established Aspen Capital Management, Ltd. and other related entities (collectively, “ACM”) to leverage our existing underwriting franchise, increase our operational flexibility in the capital markets and provide investors direct access to our underwriting expertise. References to the “Company,” the “Group,” “we,” “us” or “our” refer to Aspen Holdings or Aspen Holdings and its consolidated subsidiaries. Business Combination. On February 15, 2019, the Company completed its merger with Highlands Merger Sub, Ltd. (“Merger Sub”), a wholly owned subsidiary of Highlands Holdings, Ltd. (“Parent”). Merger Sub merged with and into the Company (the “Merger”), with the Company continuing as the surviving company and as a wholly owned subsidiary of Parent. Parent, a Bermuda exempted company, is an affiliate of certain investment funds managed by affiliates of Apollo Global Management, Inc., a leading global investment manager (collectively with its subsidiaries, “Apollo”). As a result of the Merger, all of the Company’s publicly traded ordinary shares were automatically canceled and converted into the right to receive $42.75 in cash, without interest and less any required tax withholdings. The ordinary shares of the Company ceased trading on the New York Stock Exchange (“NYSE”) prior to the opening of trading on February 15, 2019. The Company’s preference shares and depositary shares continue to be listed on the NYSE under the following symbols: AHL PRC, AHL PRD and AHL PRE. Pursuant to the terms of the Merger Agreement, the memorandum of association and bye-laws of Merger Sub immediately prior to the effective time of the Merger became the memorandum of association and bye-laws, respectively, of the Company at the effective time of the Merger and will remain the memorandum of association (the “Altered Memorandum of Association”) and bye-laws, respectively, of the Company, until changed or amended as provided therein or pursuant to applicable law. The Company’s authorized share capital, as set out in the Altered Memorandum of Association, is 745,434 divided into 70,000,000 ordinary shares of par value $0.01 and 30,000,000 preference shares of par value 0.15144558¢ . Immediately prior to the effective time of the Merger, Parent held 60,395,839 of ordinary shares of Merger Sub, par value $0.01 . Pursuant to the terms of the Merger Agreement, each common share of Merger Sub issued and outstanding immediately prior to the effective time of the Merger was canceled and converted into and became one duly authorized, validly issued, fully paid and non-assessable ordinary share, par value of $0.01 , of the Company, as the surviving company. Each of the Company’s issued and outstanding 5.950% Fixed-to-Floating Rate Perpetual Non-Cumulative Preference Shares and 5.625% Perpetual Non-Cumulative Preference Shares (collectively, the “Preference Shares”) remained issued and outstanding following the Merger, listed on the NYSE and entitled to the same dividend and all other preferences, privileges, rights, qualifications, limitations and restrictions set forth in the applicable certificate of designation. Additional information about the Merger is set forth in the Company’s Current Report on Form 8-K filed with the United States Securities and Exchange Commission (the “SEC”) on February 15, 2019 and the exhibits thereto, and on August 28, 2018 and the exhibits thereto, including the Merger Agreement, and the Company’s definitive proxy statement on Schedule 14A filed with the SEC on November 6, 2018. |
Basis of Preparation and Signif
Basis of Preparation and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Preparation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies The consolidated financial statements of Aspen Holdings are prepared in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”) and are presented on a consolidated basis including the transactions of all operating subsidiaries in which the Company has a controlling financial interest and variable interest entities (“VIE”) in which the Company is considered to be the primary beneficiary. Transactions between Aspen Holdings and its subsidiaries are eliminated within the consolidated financial statements. (a) Use of Estimates Assumptions and estimates made by management have a significant effect on the amounts reported within the consolidated financial statements. The most significant of these relate to losses and loss adjustment expenses, reinsurance recoverables, gross written premiums and commissions which have not been reported to the Company such as those relating to proportional treaty reinsurance contracts, unrecognized tax benefits, the fair value of derivatives and the fair value of other and privately-held investments. All material assumptions and estimates are regularly reviewed and adjustments made as necessary but actual results could be significantly different from those expected when the assumptions or estimates were made. (b) Accounting for Insurance and Reinsurance Operations Premiums Earned. Premiums are recorded as written on the inception date of a policy. Premiums are primarily recognized as revenues proportionately over the coverage period. Premiums earned are recorded in the statements of operations, net of the cost of purchased reinsurance. Premiums written which are not yet recognized as earned premium are recorded in the consolidated balance sheet as unearned premiums, gross of any ceded unearned premiums. Written and earned premiums and the related costs include estimates for premiums which have not been finally determined. These relate mainly to contractual provisions for the payment of adjustment or additional premiums, premiums payable under proportional treaties and delegated underwriting authorities, and reinstatement premiums. Adjustment and additional premiums are premiums charged which relate to experience during the policy term. The proportion of adjustable premiums included in the premium estimates varies between business lines with the largest adjustment premiums being in property and casualty reinsurance, marine, aviation and energy insurance and the smallest in property and casualty insurance. Premiums under proportional treaty contracts and delegated underwriting authorities are generally not reported to the Company until after the reinsurance coverage is in force. As a result, an estimate of these “pipeline” premiums is recorded. The Company estimates pipeline premiums based on projections of ultimate premium taking into account reported premiums and expected development patterns. Reinstatement premiums on assumed excess of loss reinsurance contracts are provided based on experience under such contracts. Reinstatement premiums are the premiums charged for the restoration of the reinsurance limit of an excess of loss contract to its full amount after payment by the reinsurer of losses as a result of an occurrence. Reinstatement premiums are recognized as revenue in full at the date of loss, triggering the payment of the reinstatement premiums. Reinstatement premiums provide future insurance cover for the remainder of the initial policy term. An allowance for uncollectible premiums is established for possible non-payment of premium receivables, as deemed necessary. Outward reinsurance premiums, which are paid when the Company purchases reinsurance or retrocessional coverage, are accounted for using the same accounting methodology as the Company uses for inwards premiums. Premiums payable under reinsurance contracts that operate on a “losses occurring during” basis are accounted for in full over the period of coverage while those arising from “risks attaching during” policies are expensed over the earnings period of the underlying premiums receivable from the reinsured business. Adjustment premiums and reinstatement premiums in relation to outward reinsurance are accrued when it is determined that the ultimate losses will trigger a payment and recognized within premiums payable. Premiums payable for retroactive reinsurance coverage and meeting the conditions of reinsurance accounting are reported as reinsurance recoverables to the extent that those amounts do not exceed recorded liabilities relating to underlying reinsurance contracts. To the extent that recorded liabilities on an underlying reinsurance contract exceed premiums payable for retroactive coverage, a deferred gain is recognized. Losses and Loss Adjustment Expenses. Losses represent the amount paid or expected to be paid to claimants in respect of events that have occurred on or before the balance sheet date. The costs of investigating, resolving and processing these claims are known as loss adjustment expenses (“LAE”). The statement of operations records these losses net of reinsurance, meaning that gross losses and loss adjustment expenses incurred are reduced by the amounts recovered or expected to be recovered under reinsurance contracts. Reinsurance. Written premiums, earned premiums, incurred claims, LAE and the amortization of deferred policy acquisition costs all reflect the net effect of assumed and ceded reinsurance transactions. Assumed reinsurance refers to the Company’s acceptance of certain insurance risks that other insurance companies have underwritten. Ceded reinsurance arises from contracts under which other insurance companies agree to share certain risks with the Company. Reinsurance accounting is followed when there is significant timing risk, significant underwriting risk and a reasonable possibility of significant loss. Reinsurance and retrocession does not isolate the ceding company from its obligations to policyholders. In the event that a reinsurer or retrocessionaire fails to meet its obligations, the ceding company’s obligations remain. The Company regularly evaluates the financial condition of its reinsurers and retrocessionaires and monitors the concentration of credit risk to minimize its exposure to financial loss from reinsurers’ and retrocessionaires’ insolvency. Where it is considered required, appropriate provision is made for balances deemed irrecoverable from reinsurers. Reserves. Insurance reserves are established for the total unpaid cost of claims and LAE in respect of events that have occurred by the balance sheet date, including the Company’s estimates of the total cost of claims incurred but not yet reported (“IBNR”). Claim reserves are reduced for estimated amounts of salvage and subrogation recoveries. Estimated amounts recoverable from reinsurers on unpaid losses and LAE are reflected as assets. For reported claims, reserves are established on a case-by-case basis within the parameters of coverage provided in the insurance policy or reinsurance agreement. For IBNR claims, reserves are estimated using a number of established actuarial methods to establish a range of estimates from which a management best estimate is selected. Both case and IBNR reserve estimates consider variables such as past loss experience, changes in legislative conditions, changes in judicial interpretation of legal liability, policy coverages and inflation. As many of the coverages underwritten involve claims that may not be ultimately settled for many years after they are incurred, subjective judgments as to the ultimate exposure to losses are an integral and necessary component of the loss reserving process. The Company regularly reviews its reserves, using a variety of statistical and actuarial techniques to analyze current claims costs, frequency and severity data, and prevailing economic, social and legal factors. Reserves established in prior periods are adjusted as claim experience develops and new information becomes available. Adjustments to previously estimated reserves are reflected in the financial results of the period in which the adjustments are made. The process of estimating required reserves does, by its very nature, involve considerable uncertainty. The level of uncertainty can be influenced by factors such as the existence of coverage with long duration payment patterns and changes in claims handling practices, as well as the factors noted above. Ultimate actual payments for claims and LAE could turn out to be significantly different from the Company’s estimates. Amortization of Deferred Policy Acquisition Costs. The costs directly related to writing an insurance policy are referred to as policy acquisition expenses and include commissions, premium taxes and profit commissions. With the exception of profit commissions, these expenses are incurred when a policy is issued, and only the costs directly related to the successful acquisition of new and renewal insurance and reinsurance contracts are deferred and amortized over the same period as the corresponding premiums are recorded as revenues. Profit commissions are estimated based on the related performance criteria evaluated at the balance sheet date, with subsequent changes to those estimates recognized when they occur. On a regular basis a recoverability analysis is performed of the deferred policy acquisition costs in relation to the expected recognition of revenues, including anticipated investment income, and adjustments, if any, are reflected as period costs. Should the analysis indicate that the acquisition costs are unrecoverable, further analyses are performed to determine if a reserve is required to provide for losses which may exceed the related unearned premium. General, Administrative and Corporate Expenses. These costs represent the expenses incurred in running the business and include, but are not limited to compensation costs for employees, rental costs, IT development and operating costs and professional and consultancy fees. General, policy and administrative costs directly attributable to the successful acquisition of business are deferred and amortized over the same period as the corresponding premiums are recorded as revenues. When reporting the results for its business segments, the Company includes expenses which are directly attributable to the segment plus an allocation of central administrative costs. Corporate expenses are not allocated to the Company’s business segments as they typically do not fluctuate with the levels of premium written and are related to the Company’s operations which include group executive costs, group finance costs, group legal and actuarial costs and certain strategic and other costs. (c) Accounting for Investments, Cash and Cash Equivalents Fixed Income Securities. The fixed income securities portfolio comprises securities issued by governments and government agencies, corporate bonds, mortgage and other asset-backed securities and bank loans. Investments in fixed income securities are classified as available for sale or trading and are reported at estimated fair value in the consolidated balance sheet. Investment transactions are recorded on the trade date with balances pending settlement reflected in the consolidated balance sheet under receivables for securities sold and accrued expenses and other payables for securities purchased, respectively. Fair values are based on quoted market prices and other data provided by third-party pricing services. Short-term Investments. Short-term investments primarily comprise highly liquid debt securities with a maturity greater than three months but less than one year from the date of purchase and are held as part of the investment portfolio of the Company. Short-term investments are classified as either trading or available for sale and carried at estimated fair value. Catastrophe Bonds. Investments in catastrophe bonds are classified as trading and are carried on the consolidated balance sheet at estimated fair value. The fair values are based on independent broker-dealer quotes. Privately-held Investments. The Company’s privately-held investments primarily comprise commercial mortgage loans and middle market loans. These investments are classified as trading and are carried on the consolidated balance sheet at estimated fair value. Privately-held investments are initially valued at cost or transaction value which approximates fair value. In subsequent measurement periods, the fair values of these securities are primarily determined using internally developed discounted cash flow models. Interest income is accrued on the principal amount of the loan based on its contractual interest rate subject to it being probable that we will receive interest on that particular underlying loan. Interest income, amortization of premiums and discounts, and prepayment fees are reported in net investment income on the consolidated statements of income. Other Investments, Equity Method. Other investments represent the Company’s investments that are recorded using the equity method of accounting. Adjustments to the fair value of these investments are made based on the net asset value of the investment. Other investments. Other investments represent the Company’s investment in a real estate fund. Adjustments to the fair value are made based on the net asset value of the investment. Cash and Cash Equivalents. Cash and cash equivalents are carried at fair value. Cash and cash equivalents comprise cash on hand, deposits held on call with banks and other short-term highly liquid investments due to mature within three months from the date of purchase and which are subject to insignificant risk of change in fair value. Gains and Losses. Realized gains or losses on the sale of investments are determined on the basis of the first in first out cost method and, for fixed income available for sale securities, include adjustments to the cost basis of investments for declines in value that are considered to be other-than-temporary. Unrealized gains and losses represent the difference between the cost, or the cost as adjusted by amortization of any difference between its cost and its redemption value (“amortized cost”), of the security and its fair value at the reporting date and are included within other comprehensive income for securities classified as available for sale and in realized and unrealized investment gains or losses in the consolidated statement of operations for securities classified as trading. Other-than-temporary Impairment of Investments. A security is impaired when its fair value is below its cost or amortized cost. The Company reviews its investment portfolio each quarter on an individual security basis for potential other-than-temporary impairment (“OTTI”) based on criteria including issuer-specific circumstances, credit ratings actions and general macro-economic conditions. OTTI is deemed to occur when there is no objective evidence to support recovery in value of a security and (i) the Company intends to sell the security or more likely than not will be required to sell the security before recovery of its cost or adjusted amortized cost basis or (ii) it is deemed probable that the Company will be unable to collect all amounts due according to the contractual terms of the individual security. In the first case, the entire unrealized loss position is taken as an OTTI charge to realized losses in earnings. In the second case, the unrealized loss is separated into the amount related to credit loss and the amount related to all other factors. The OTTI charge related to credit loss is recognized in realized losses in earnings and the amount related to all other factors is recognized in other comprehensive income. The cost basis of the investment is reduced accordingly and no adjustments to the cost basis are made for subsequent recoveries in value. Although the Company reviews each security on a case by case basis, it has also established parameters focusing on the extent and duration of impairment to help identify securities in an unrealized loss position which are other-than-temporarily impaired. For fixed income securities in the available for sale portfolio, the Company considers securities which have been in an unrealized loss position for 12 months or more which currently have a market value of more than 20% below cost should be other-than-temporarily impaired. Investment Income. Investment income includes amounts received and accrued in respect of periodic interest (“coupons”) payable to the Company by the issuer of fixed income securities, equity dividends and interest credited on cash and cash equivalents. It also includes amortization of premium and accretion of discount in respect of fixed income securities. Investment management and custody fees are charged against net investment income reported in the consolidated statement of operations. (d) Accounting for Derivative Financial Instruments The Company enters into derivative instruments such as interest rate swaps and forward exchange contracts in order to manage certain market and credit risks. The Company records derivative instruments at fair value on the Company’s balance sheet as either assets or liabilities, depending on their rights and obligations. The accounting for the gain or loss due to the changes in the fair value of these instruments is dependent on whether the derivative qualifies as a hedge. If the derivative does not qualify as a hedge, the gains or losses are reported in earnings when they occur. If the derivative does qualify as a hedge, the accounting treatment varies based on the type of risk being hedged. (e) Accounting for Intangible Assets Intangible assets are held in the consolidated balance sheet at cost less amortization and impairment. Amortization applies on a straight-line basis in respect of assets having a finite estimated useful economic life. The Company performs a qualitative assessment annually to determine whether it is more likely than not that an intangible asset considered to have an indefinite life is impaired. Goodwill is assessed annually for impairment or more frequently if circumstances indicate an impairment may have occurred. (f) Accounting for Office Properties and Equipment Office properties and equipment are carried at cost less accumulated depreciation. These assets are depreciated on a straight-line basis over the estimated useful lives of the assets. Computer equipment and software is depreciated between three and five years with depreciation for software commencing on the date the software is brought into use. Furniture and fittings are depreciated over four years and leasehold improvements are depreciated over the lesser of 15 years or the lease term. (g) Accounting for Right-of-Use Operating Lease Assets Right-of-use operating lease assets comprise primarily of leased office real estate and other assets. For all office real estate leases, rent incentives, including reduced-rent and rent free periods and contractually agreed rent increases during the lease term, have been included when determining the present value of future cash flows. Right-of-use operating leased assets are carried at cost less accumulated depreciation. Right-of-use operating leased assets are depreciated over the lease term. (h) Accounting for Foreign Currencies Translation The reporting currency of the Company is the U.S. Dollar. The functional currencies of the Company’s foreign operations and branches are the currencies in which the majority of their business is transacted. Transactions in currencies other than the functional currency are measured in the functional currency of that operation at the exchange rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in non-functional currencies are remeasured at the exchange rate prevailing at the balance sheet date and any resulting foreign exchange gains or losses are reflected in the statement of operations. Monetary and non-monetary assets and liabilities of the Company’s functional currency operations are translated into U.S. Dollars at the exchange rate prevailing at the balance sheet date. Income and expenses of these operations are translated at the exchange rate prevailing at the date of the transaction. Unrealized gains or losses arising from the translation of functional currencies are recorded net of tax as a component of other comprehensive income. (i) Accounting for Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. When the Company does not believe that, on the basis of available information, it is more likely than not that deferred tax assets will be fully recovered, it recognizes a valuation allowance against its deferred tax assets to reduce the deferred tax assets to the amount more likely than not to be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Furthermore, a tax benefit from a tax position may be recognized in the financial statements only if it is more-likely-than-not that the position is sustainable, based solely on its technical merits and consideration of the relevant tax authority’s widely understood administrative practices and precedents. The tax benefit recognized, when the likelihood of realization is more likely-than-not (i.e. greater than 50 percent), is measured at the largest amount that is greater than 50 percent likely of being realized upon settlement. The Company applies a portfolio approach to release the income tax effects in accumulated other comprehensive income. Under this approach, the income tax effects upon the sale of an available-for-sale debt security, settlement of hedged transactions and upon foreign currency re-translations as of each period end, are determined under the intra period tax allocation approach. Any tax effects remaining in accumulated other comprehensive income are only released when the entire portfolio is liquidated, sold or extinguished. (j) Accounting for Preference Shares The Company had at the balance sheet date in issue three classes of preference shares. The Company has no obligation to pay interest on these securities but they carry entitlements to dividends payable at the discretion of the Board of Directors. In the event of non-payment of dividends for six consecutive periods, holders of preference shares have director appointment rights. The preference shares are therefore accounted for as equity instruments and included within total shareholders’ equity. (k) Accounting for Long-Term Incentive Plans The Company operates an employee long-term incentive plan, comprised of Performance Units and Exit Units, the terms and conditions of which are described in Note 16. The Company applies a fair-value based measurement method in calculating the compensation costs of Performance Units which are recognized on a straight line basis over the vesting period. Prior to the Merger, the Company operated an employee share incentive plan, a non-executive director stock incentive plan and employee share purchase plans, the terms and conditions of which are described in Note 16. The Company applied a fair-value based measurement method including estimates for future forfeitures in the calculation of the compensation costs of stock options, performance shares, phantom shares and restricted share units. (l) Accounting for Long-Term Debt Issued by Variable Interest Entities Silverton, a consolidated variable interest entity, issued debt instruments as further described in Note 5, “Variable Interest Entities” of these consolidated financial statements. This debt was separately identified on the Company’s balance sheet and the Company elected to record the debt at fair value due to the potential variability over the ultimate settlement value of the debt instruments. (m) Accounting for Business Combinations The Company accounts for a transaction as a business combination where the assets acquired and liabilities assumed following a transaction constitute a business. An acquired entity must have inputs and processes that make it capable of generating a return or economic benefit to be considered a business. If the assets acquired are not a business, the Company accounts the transaction as an asset acquisition. The Company recognizes and measures at fair value 100 percent of the assets and liabilities of any acquired business. Goodwill is recognized and measured as the difference between the consideration paid or payable less the fair value of assets acquired. The Company accounts for the disposal of subsidiary undertakings when it ceases to control the subsidiary’s assets and liabilities or the group of assets. A gain or loss is recognized and measured as the difference between the fair value of consideration received or receivable and the value of assets, liabilities and equity components de-recognized, related to that subsidiary or group of assets when deconsolidated. Costs that are directly related to a business combination transaction are expensed in the periods in with the costs are incurred and the services are received. (n) Accounting Pronouncements Accounting Pronouncements Adopted in 2019 On February 25, 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-2, “Leases (Topic 842)” which supersedes the leases requirements in Topic 840 and establishes the principles that lessees and lessors shall apply, to report useful information to users of financial statements about the amount, timing, and uncertainty of cash flows arising from a lease. As per ASU 842, the Company has chosen to adopt a modified retrospective transition method with an effective application date being the beginning of the period of adoption (i.e., January 1, 2019) and as a result prior comparative periods would not be adjusted under this method. Following the adoption of this standard, the Company recognized right-of-use operating leased assets of $88.1 million , consisting of leased office real estate and motor vehicles, and an operating lease liability of $95.5 million on the balance sheet as of January 1, 2019. The interest rate assumption applied in determining the present value of future cash flows of 5% was determined based on the Company’s weighted average incremental borrowing rate. As at December 31, 2019, right-of-use operating leased assets of $93.5 million and a corresponding operating lease liability of $113.2 million have been recognized on the balance sheet which include new and renewed lease agreements during the year. An operating lease charge of $18.0 million was incurred during the year ended December 31, 2019, consisting of an amortization charge of $13.4 million on right-of-use operating leases assets and a $4.6 million finance charge on the operating lease liability. For further details refer to Note 18, “Operating Leases.” On March 5, 2019, the FASB issued ASU 2019-01, “Codification Improvements (Topic 842)” which amended lessor accounting guidance in ASC 842 and clarifies exemption from certain interim period transitional disclosure requirements. The amendments of this ASU are effective for fiscal years beginning after December 15, 2018. Adoption of this ASU did not have a material impact on the Company’s financial statements and disclosures. On August 28, 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815)” enabling entities to better align their hedge accounting and risk management activities, while also simplifying the application of hedge accounting in certain situations. This ASU is effective for fiscal years beginning after December 15, 2018 using a modified retrospective approach for cash flow and net investment hedge relationships that exist on the date of adoption. Adoption of this ASU did not have a material impact on the Company’s financial statements and disclosures. On February 14, 2018, the FASB issued ASU 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220)” which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. This ASU is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Adoption of this ASU did not have a material impact on the Company’s financial statements and disclosures. On June 20, 2018, the FASB issued ASU 2018-07, “ Compensation - Stock Compensation (Topic 718) ” which amends the scope of Topic 718 via improvements to non-employee share-based payment accounting. Amendments include allowing companies to account for share-based payment transactions with non-employees in the same way as share-based payment transactions with employees and includes elections that offer relief to non-public companies when measuring non-employee equity share options. This ASU is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Adoption of this ASU did not have a material impact on the Company’s financial statements and disclosures. On August 28, 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820) Disclosure Framework)” allowing entities to modify the disclosure requirements on fair value measurements. This ASU is effective for fiscal years beginning after December 15, 2019, however early adoption is permitted. The Company has chosen to early adopt and has therefore not disclosed information regarding the effect of unobservable inputs on earnings for the period. Accounting Pronouncements Not Yet Adopted On June 16, 2016, the FASB issued ASU 2016-13, “ Financial Instruments - Credit Losses (Topic 326) ” which introduces a new impairment model, known as the current expected credit loss model, which is based on expected losses rather than incurred losses. Under the new credit loss model, the Company would recognize an allowance for its estimate of expected credit losses and this would apply to most debt instruments (other than those measured at fair value), trade receivables, lease receivables, reinsurance receivables, financial guarantee contracts and loan commitments. This ASU also made limited amendments to the impairment model for available-for-sale debt securities, requiring an allowance for credit losses to be recognized. There are other amendments required as a result of this ASU that are effective for fiscal years beginning after December 15, 2019. Additionally, on May 15, 2019, the FASB issued ASU 2019-05, “ Financial Instruments - Credit Losses (Topic 326) ” which allows an entity, upon adoption of ASU 2016-13, to irrevocably elect the fair value option on an instrument-by-instrument basis (except for existing held-to-maturity securities). If an entity elects the fair value option, the difference between the instrument’s fair value and carrying amount is recognized as a cumulative-effect adjustment. This ASU will be effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. These ASUs are expected to have a material impact on the Company’s consolidated financial statements, specifically reducing the Company’s available-for-sale investment portfolio and reinsurance recoverables by an estimated $0.5 million and $3.7 million , respectively, as a result of recognizing current expected credit losses, together with a cumulative effect adjustment of $4.2 million through opening retained earnings. On October 31, 2018, the FASB issued ASU 2018-17, “ Consolidation (Topic 810)” which makes targeted improvements to related party guidance for variable interest entities, requiring the reporting entity to consider indirect interests held through related parties under common control on a proportionate basis when evaluating whether a decision-maker’s fee is a variable interest for purposes of the primary beneficiary test. This ASU will be effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. The Company has evaluated the provisions of ASU 2018-17 to determine how it |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company is organized into two business segments, namely Aspen Re and Aspen Insurance. The Company has determined its reportable segments, Aspen Re (“Reinsurance”) and Aspen Insurance (“Insurance”), by taking into account the manner in which management makes operating decisions and assesses operating performance. Profit or loss for each of the Company’s business segments is measured by underwriting profit or loss. Underwriting profit is the excess of net earned premiums over the sum of losses and loss expenses, amortization of deferred policy acquisition costs and general and administrative expenses. Underwriting profit or loss provides a basis for management to evaluate the segment’s underwriting performance. Reinsurance Segment. The reinsurance segment consists of property catastrophe reinsurance, other property reinsurance, casualty reinsurance and specialty reinsurance. Aspen Capital Markets focuses on developing alternative reinsurance structures to leverage the Company’s existing underwriting franchise, increase its operational flexibility in the capital markets and provide investors direct access to its underwriting expertise. Aspen Capital Markets leverages the Company’s underwriting and analytical expertise and earns management and performance fees from third-party investors primarily through the management of ILS funds and other offerings. For a more detailed description of this business segment, refer to Item 4, “Information on the Company — Business Overview — Aspen Reinsurance” above. Insurance Segment. The insurance segment consists of property and casualty insurance, marine, aviation and energy insurance and financial and professional lines insurance. For a more detailed description of this segment, refer to Item 4 “Information on the Company — Business Overview — Aspen Insurance” above. Non-underwriting Disclosures. The Company provides additional disclosures for corporate and other (non-operating) income and expenses. Corporate and other income and expenses include net investment income, net realized and unrealized investment gains or losses, expenses associated with managing the Aspen Group, certain strategic and other costs, changes in fair value of derivatives or the loan notes issued by variable interest entities, interest expenses, net realized and unrealized foreign exchange gains or losses, asset impairments and income taxes, none of which are allocated to the business segments. These corporate expenses are not allocated to the Company’s business segments as they typically do not fluctuate with the levels of premiums written and are not directly related to the Company’s business segment operations. The Company does not allocate its assets by business segment as it evaluates underwriting results of each business segment separately from the results of the Company’s investment portfolio. The Company uses underwriting ratios as measures of performance. The loss ratio is the ratio of losses and loss adjustment expenses to net earned premiums. The policy acquisition expense ratio is the ratio of amortization of deferred policy acquisition costs to net earned premiums. The general and administrative expense ratio is the ratio of general, administrative and corporate expenses to net earned premiums. The combined ratio is the sum of the loss ratio, the policy acquisition expense ratio and the general and administrative expense ratio. The following tables provide a summary of gross and net written and earned premiums, underwriting results, ratios and reserves for each of the Company’s business segments for the twelve months ended December 31, 2019 , 2018 and 2017 : Twelve Months Ended December 31, 2019 Reinsurance Insurance Total ($ in millions) Underwriting Revenues Gross written premiums $ 1,485.5 $ 1,956.9 $ 3,442.4 Net written premiums 1,251.1 1,176.8 2,427.9 Gross earned premiums 1,494.9 1,927.5 3,422.4 Net earned premiums 1,255.2 1,038.1 2,293.3 Underwriting Expenses Losses and loss adjustment expenses 917.9 761.8 1,679.7 Amortization of deferred policy acquisition costs 264.9 147.8 412.7 General and administrative expenses 111.7 229.8 341.5 Underwriting (loss) (39.3 ) (101.3 ) (140.6 ) Corporate expenses (54.5 ) Non-operating expenses (125.6 ) (1) Net investment income 197.3 Realized and unrealized investment gains 97.1 Realized and unrealized investment losses (10.9 ) Realized loss on debt extinguishment (5.5 ) Change in fair value of loan notes issued by variable interest entities (3.1 ) Change in fair value of derivatives (144.2 ) Interest expense on long term debt (20.2 ) Net realized and unrealized foreign exchange (losses) (11.8 ) Other income 4.9 Other expenses (1.7 ) (Loss) before tax (218.8 ) Income tax (expense) (22.9 ) Net (loss) $ (241.7 ) Net reserves for loss and loss adjustment expenses $ 2,605.9 $ 2,026.1 $ 4,632.0 Ratios Loss ratio 73.1 % 73.4 % 73.2 % Policy acquisition expense ratio 21.1 14.2 18.0 General and administrative expense ratio 8.9 22.1 22.7 (2) Expense ratio 30.0 36.3 40.7 Combined ratio 103.1 % 109.7 % 113.9 % _______________ (1) Non-operating expenses includes $103.4 million of costs related to the Merger, severance, retention and other costs, and $22.2 million of expenses related to the Company’s operating effectiveness and efficiency program, which includes $12.3 million of impairment charges related to lease assets as a result of sub-leasing certain office space. (2) The general and administrative expense ratio in the total column includes corporate and non-operating expenses. Twelve Months Ended December 31, 2018 Reinsurance Insurance Total ( $ in millions) Underwriting Revenues Gross written premiums $ 1,495.7 $ 1,951.2 $ 3,446.9 Net written premiums 1,182.9 899.1 2,082.0 Gross earned premiums 1,593.9 1,940.5 3,534.4 Net earned premiums 1,256.4 958.3 2,214.7 Underwriting Expenses Losses and loss adjustment expenses 927.0 646.0 1,573.0 Amortization of deferred policy acquisition costs 260.9 110.7 371.6 General and administrative expenses 118.5 239.2 357.7 Underwriting (loss) (50.0 ) (37.6 ) (87.6 ) Corporate expenses (56.8 ) Non-operating expenses (77.2 ) (1) Net investment income 198.2 Realized and unrealized investment gains 110.0 Realized and unrealized investment losses (174.7 ) Realized loss on debt extinguishment (8.6 ) Change in fair value of loan notes issued by variable interest entities (4.4 ) Change in fair value of derivatives (31.8 ) Interest expense on long term debt (25.9 ) Net realized and unrealized foreign exchange (losses) (3.5 ) Other income 9.0 Other expenses (2.7 ) (Loss) before tax (156.0 ) Income tax benefit 10.2 Net (loss) $ (145.8 ) Net reserves for loss and loss adjustment expenses $ 2,843.6 $ 2,153.0 $ 4,996.6 Ratios Loss ratio 73.8 % 67.4 % 71.0 % Policy acquisition expense ratio 20.8 11.6 16.8 General and administrative expense ratio 9.4 25.0 22.2 (2) Expense ratio 30.2 36.6 39.0 Combined ratio 104.0 % 104.0 % 110.0 % ________________ (1) Non-operating expenses includes $37.5 million of expenses related to Company’s operating effectiveness and efficiency program, $39.0 million of advisor fees related to the Merger and $11.3 million of retention costs, partially offset by the write back of a $14.1 million buy-out provision. (2) The general and administrative expense ratio in the total column includes corporate and non-operating expenses. Twelve Months Ended December 31, 2017 Reinsurance Insurance Total ($ in millions) Underwriting Revenues Gross written premiums $ 1,548.5 $ 1,812.4 $ 3,360.9 Net written premiums 1,250.0 962.5 2,212.5 Gross earned premiums 1,451.8 1,757.4 3,209.2 Net earned premiums 1,206.1 1,100.5 2,306.6 Underwriting Expenses Losses and loss adjustment expenses 1,116.4 878.3 1,994.7 Amortization of deferred policy acquisition costs 235.5 165.0 400.5 General and administrative expenses 157.3 253.9 411.2 Underwriting (loss) (303.1 ) (196.7 ) (499.8 ) Corporate expenses (58.3 ) Non-operating expenses (32.7 ) (1) Net investment income 189.0 Realized and unrealized investment gains 148.9 Realized and unrealized investment losses (28.4 ) Change in fair value of loan notes issued by variable interest entities 21.2 Change in fair value of derivatives 27.7 Interest expense on long term debt (29.5 ) Net realized and unrealized foreign exchange (losses) (23.9 ) Other income 8.9 Other expenses (4.9 ) (Loss) before tax (281.8 ) Income tax benefit 15.4 Net (loss) $ (266.4 ) Net reserves for loss and loss adjustment expenses $ 2,917.1 $ 2,317.2 $ 5,234.3 Ratios Loss ratio 92.6 % 79.8 % 86.5 % Policy acquisition expense ratio 19.5 15.0 17.4 General and administrative expense ratio 13.0 23.1 21.8 (2) Expense ratio 32.5 38.1 39.2 Combined ratio 125.1 % 117.9 % 125.7 % _______________ (1) Non-operating expenses includes $15.2 million of expenses related to the Company’s operating effectiveness and efficiency program. (2) The general and administrative expense ratio in the total column includes corporate and non-operating expenses. Geographical Areas . The following summary presents the Company’s gross written premiums based on the location of the insured risk for the twelve months ended December 31, 2019 , 2018 and 2017 . For the Twelve Months Ended December 31, 2019 December 31, 2018 December 31, 2017 ($ in millions) Australia/Asia $ 215.9 $ 175.9 $ 167.3 Caribbean 9.3 7.7 17.6 Europe 82.8 92.6 94.5 United Kingdom 295.7 290.1 258.3 United States & Canada (1) 2,003.9 1,875.9 1,729.3 Worldwide excluding United States (2) 63.0 70.1 88.1 Worldwide including United States (3) 614.9 775.8 868.6 Others 156.9 158.8 137.2 Total $ 3,442.4 $ 3,446.9 $ 3,360.9 ______________ (1) “United States and Canada” comprises individual policies that insure risks specifically in the United States and/or Canada, but not elsewhere. (2) “Worldwide excluding the United States” comprises individual policies that insure risks wherever they may be across the world but specifically excludes the United States. (3) “Worldwide including the United States” comprises individual policies that insure risks wherever they may be across the world but specifically includes the United States. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Income Statement Investment Income. The following table summarizes investment income for the twelve months ended December 31, 2019 , 2018 and 2017 : For the Twelve Months Ended December 31, 2019 December 31, 2018 December 31, 2017 ($ in millions) Fixed income securities — Available for sale $ 128.2 $ 134.1 $ 133.3 Fixed income securities — Trading 42.0 49.6 44.0 Short-term investments — Available for sale 2.3 1.4 0.4 Short-term investments — Trading 2.5 0.4 0.8 Fixed term deposits (included in cash and cash equivalents) 19.5 14.2 6.2 Equity securities — Trading — 2.1 13.6 Catastrophe bonds — Trading 2.3 2.8 1.8 Privately-held investments — Trading 3.4 — — Other investments, at fair value 8.9 2.5 — Total 209.1 207.1 200.1 Investment expenses (11.8 ) (8.9 ) (11.1 ) Net investment income $ 197.3 $ 198.2 $ 189.0 The following table summarizes the net realized and unrealized investment gains and losses recorded in the statement of operations and the change in unrealized gains and losses on investments recorded in other comprehensive income for the twelve months ended December 31, 2019 , 2018 and 2017 : For the Twelve Months Ended December 31, 2019 December 31, 2018 December 31, 2017 ($ in millions) Available for sale: Fixed income securities — gross realized gains $ 14.4 $ 6.4 $ 10.2 Fixed income securities — gross realized (losses) (7.3 ) (11.4 ) (6.6 ) Short-term investments — gross realized gains — — 0.1 Cash and cash equivalents — gross realized gains 0.1 0.3 0.4 Cash and cash equivalents — gross realized (losses) (0.2 ) (0.5 ) (0.1 ) Other-than-temporary impairments — — (0.7 ) Trading: Fixed income securities — gross realized gains 34.3 4.6 9.7 Fixed income securities — gross realized (losses) (2.6 ) (25.0 ) (4.5 ) Short-term investments — gross realized gains — 0.1 2.7 Short-term investments — gross realized (losses) — (4.2 ) — Cash and cash equivalents — gross realized gains — 1.5 1.3 Cash and cash equivalents — gross realized (losses) (0.3 ) (0.3 ) — Equity securities — gross realized gains — 94.5 59.0 Equity securities — gross realized (losses) — (20.1 ) (13.7 ) Privately-held investments — gross realized (losses) (0.2 ) — — Catastrophe bonds — net unrealized gains/(losses) 0.9 2.2 (2.4 ) Net change in gross unrealized gains / losses 47.2 (112.1 ) 60.3 Investments — equity method: Gross realized and unrealized (loss) in MVI (0.1 ) (0.2 ) (0.1 ) Gross unrealized gain in Chaspark — — 0.9 Gross realized and unrealized (loss) gain in Digital Risk (0.2 ) 0.4 — Gross realized and unrealized (loss) in Bene — (0.9 ) (0.3 ) Gross realized gain on sale of AgriLogic — — 4.3 Total net realized and unrealized investment gains/(losses) recorded in the statement of operations $ 86.2 $ (64.7 ) $ 120.5 Change in available for sale net unrealized gain/(losses): Fixed income securities 164.9 (81.3 ) (14.8 ) Change in taxes (13.6 ) 4.8 2.0 Total change in net unrealized gains/(losses), net of taxes recorded in other comprehensive income $ 151.3 $ (76.5 ) $ (12.8 ) Balance Sheet Fixed Income Securities and Short-Term Investments — Available For Sale. The following tables present the cost or amortized cost, gross unrealized gains and losses and estimated fair market value of available for sale investments in fixed income securities and short-term investments as at December 31, 2019 and December 31, 2018 : As at December 31, 2019 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value ($ in millions) U.S. government $ 1,383.2 $ 31.3 $ (1.4 ) $ 1,413.1 U.S. agency 38.7 0.9 — 39.6 Municipal 47.8 2.9 — 50.7 Corporate 1,905.6 54.8 (0.6 ) 1,959.8 Non-U.S. government-backed corporate 86.1 0.5 (0.1 ) 86.5 Non-U.S. government 324.7 4.5 (0.4 ) 328.8 Asset-backed 0.2 — — 0.2 Non-agency commercial mortgage-backed 6.7 — (0.2 ) 6.5 Agency mortgage-backed 1,052.2 21.9 (1.1 ) 1,073.0 Total fixed income securities — Available for sale 4,845.2 116.8 (3.8 ) 4,958.2 Total short-term investments — Available for sale 117.6 — — 117.6 Total $ 4,962.8 $ 116.8 $ (3.8 ) $ 5,075.8 As at December 31, 2018 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value ($ in millions) U.S. government $ 1,413.5 $ 6.8 $ (16.1 ) $ 1,404.2 U.S. agency 47.7 0.1 (0.4 ) 47.4 Municipal 46.7 1.3 (0.8 ) 47.2 Corporate 2,238.9 7.8 (40.5 ) 2,206.2 Non-U.S. government-backed corporate 93.2 0.2 (0.2 ) 93.2 Non-U.S. government 399.8 3.6 (0.8 ) 402.6 Asset-backed 17.4 — (0.1 ) 17.3 Agency mortgage-backed 1,025.1 6.5 (19.0 ) 1,012.6 Total fixed income securities — Available for sale 5,282.3 26.3 (77.9 ) 5,230.7 Total short-term investments — Available for sale 105.6 — — 105.6 Total $ 5,387.9 $ 26.3 $ (77.9 ) $ 5,336.3 Fixed Income Securities, Short Term Investments, Equities, Catastrophe Bonds and Privately-held Investments — Trading . The following tables present the cost or amortized cost, gross unrealized gains and losses, and estimated fair market value of trading investments in fixed income securities, short-term investments, equity securities, catastrophe bonds and privately-held investments as at December 31, 2019 and December 31, 2018 : As at December 31, 2019 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value ($ in millions) Fixed Income Securities — Trading U.S. government $ 183.3 $ 1.8 $ (0.1 ) $ 185.0 Municipal 3.1 0.1 — 3.2 Corporate 231.7 11.6 (0.1 ) 243.2 Non-U.S. government 143.9 7.4 (0.1 ) 151.2 Asset-backed 491.7 2.4 (1.7 ) 492.4 Agency mortgage-backed 52.9 0.9 — 53.8 Total fixed income securities — Trading 1,106.6 24.2 (2.0 ) 1,128.8 Short-term investments — Trading 79.2 — — 79.2 Catastrophe bonds — Trading 29.4 — (0.8 ) 28.6 Privately-held investments — Trading Commercial mortgage loans $ 156.3 $ 0.3 $ — $ 156.6 Middle market loans 111.7 0.2 (0.2 ) 111.7 Asset-backed securities 8.7 — — 8.7 Equity securities 2.5 0.2 — 2.7 Total privately-held investments — Trading 279.2 0.7 (0.2 ) 279.7 Total Investments — Trading $ 1,494.4 $ 24.9 $ (3.0 ) $ 1,516.3 As at December 31, 2018 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value ($ in millions) Fixed Income Securities — Trading U.S. government $ 146.6 $ 1.6 $ (0.5 ) $ 147.7 Municipal 2.8 — (0.1 ) 2.7 Corporate 734.2 2.6 (16.6 ) 720.2 Non-U.S. government 268.7 1.9 (5.2 ) 265.4 Asset-backed 2.4 — — 2.4 Agency mortgage-backed 50.3 0.2 (1.1 ) 49.4 Total fixed income securities — Trading 1,205.0 6.3 (23.5 ) 1,187.8 Short-term investments — Trading 9.5 — — 9.5 Catastrophe bonds — Trading 37.9 0.1 (1.8 ) 36.2 Total Investments — Trading $ 1,252.4 $ 6.4 $ (25.3 ) $ 1,233.5 The Company classifies the financial instruments listed above as held for trading because this most closely reflects the facts and circumstances of the investments held. As at December 31, 2019 , the Company had a 3.2% position in U.S Dollar BBB Emerging Market Debt and a 1.4% position in a real estate fund and a 3.6% position in MML and CML, representing in total 8.2% of our Managed Portfolio ( December 31, 2018 — 5.8% ). Catastrophe bonds. The Company has invested in catastrophe bonds with a total value of $28.6 million as at December 31, 2019 ( December 31, 2018 — $36.2 million ). The bonds are either zero-coupon notes or receive quarterly interest payments based on variable interest rates with scheduled maturities ranging from 2019 to 2022. The redemption value of the bonds will adjust based on the occurrence or aggregate occurrence of a covered event, such as windstorms and earthquakes in the United States, Canada, the North Atlantic, South America, Europe, Japan or Australia. Privately-held investments. The Company has invested in privately-held investments, which primarily include commercial mortgage loans of $156.6 million and middle market loans of $111.7 million as at December 31, 2019 ( December 31, 2018 — privately-held investments of $ Nil ). Commercial Mortgage Loans . The commercial mortgage loans are related to investments in properties including apartments, hotels, office and retail buildings, other commercial properties and industrial properties. The commercial mortgage loan portfolio is diversified by property type, geographic region and issuer to reduce risks. As part of our investment process, we evaluate factors such as size, property type, and security to determine that properties are performing at a consistent and acceptable level to secure the related debt. The following table presents the type of commercial mortgage loans and geographic region as at December 31, 2019 : As at December 31, 2019 Net Carrying Value Percentage of Total (in millions) (%) Property type Apartment $ 48.3 31 % Hotels 47.7 30 Office building 21.9 14 Other commercial 17.0 11 Retail 15.2 10 Industrial 6.5 4 Total commercial mortgage loans $ 156.6 100 % Geographic Region U.S. $ 85.5 55 % International 71.1 45 Total commercial mortgage loans $ 156.6 100 % The primary credit quality indicator of commercial mortgage loans is loan performance. Non-performing commercial mortgage loans are generally 90 days or more past due. As of December 31, 2019 , all of our commercial mortgage loans were performing. Loan-to-value and debt service coverage ratios are measures we use to assess the risk and quality of commercial mortgage loans. The loan-to-value ratio is expressed as a percentage of the value of the loan relative to the value of the underlying property. A loan-to-value ratio in excess of 100% indicates the unpaid loan amount exceeds the underlying collateral. The following table represents the loan-to-value ratio of the commercial mortgage loan portfolio as at December 31, 2019 : As at December 31, 2019 (in millions) 50% to 60% $ 80.5 61% to 70% 35.5 71% to 80% 40.6 Commercial mortgage loans $ 156.6 The debt-service coverage ratio is measured by a property’s net operating income as a multiple of its debt re-payments. A ratio of less than 1.0 reflects a property’s operations is not sufficient to cover its debt payments. The following table represents the debt-service coverage ratio of the commercial mortgage loan portfolio as at December 31, 2019 : As at December 31, 2019 (in millions) Greater than 1.20x $ 94.6 1.00 - 1.20x 48.3 Less than 1.00x 13.7 Commercial mortgage loans $ 156.6 Middle Market Loans . The middle market loans are investments in senior secured loan positions with full covenants, focused on the middle market in both U.S. and Europe. The middle market loan portfolio is diversified by industry type, geographic region and issuer to reduce risks. As part of our investment process, we evaluate factors such as size, industry and security to determine that loans are performing at a consistent and acceptable level to secure the related debt. The following table presents the type of middle market loans and geographic region as at December 31, 2019 : December 31, 2019 Net Carrying Value Percentage of Total (in millions) (%) Industry type Materials $ 29.5 26 % Financials 22.2 20 Industrials 18.9 17 Consumer discretionary 14.2 13 Health care 8.2 7 Energy 7.4 7 Consumer staples 6.4 6 Information technology 4.9 4 Total middle market mortgage loans $ 111.7 100 % Geographic Region U.S. $ 91.8 82 % International 19.9 18 Total middle market loans $ 111.7 100 % The primary credit quality indicator of middle market loans is loan performance. Non-performing middle market loans are generally 90 days or more past due. As of December 31, 2019 , all of our middle market loans were performing. Loan-to-enterprise-value and fixed charge coverage ratios are measures we use to assess the risk and quality of middle market loans. The loan-to-enterprise-value ratio is expressed as a percentage of the value of the loan relative to the value of the business. A loan-to-enterprise-value ratio in excess of 100% indicates the unpaid loan amount exceeds the value of the underlying business. The following table represents the loan-to-enterprise-value ratio of the middle market loan portfolio as at December 31, 2019 : As at December 31, 2019 (in millions) Less than 50% $ 90.6 50% to 60% 21.1 Middle market loans $ 111.7 The fixed charge coverage ratio, based upon the most recent financial statements, is expressed as a percentage of a firm’s earnings plus fixed charges to its fixed charges. Fixed charges include debt repayments, interest and equipment lease expenses. A fixed charge coverage ratio of less than 1.0 indicates a firm’s operations do not generate enough income to cover its fixed charges. The following represents the fixed charge coverage ratio of the middle market loan portfolio as at December 31, 2019 As at December 31, 2019 (in millions) Greater than 1.20x $ 68.4 1.00 - 1.20x 25.5 Less than 1.00x 17.8 Middle market loans $ 111.7 Asset-backed securities . Our asset-backed securities portfolio of privately-held investments consists of a single non-U.S. based issuer that issues fixed rate notes that are backed by future flows from international credit card companies and this security is performing. Equity securities . Our equity securities portfolio of privately-held investments consists of a single non-U.S. based issuer that is a special purpose vehicle designed to grant a first lien right to the underlying senior notes within the structure. The underlying issuer is a financial services lender to middle market companies and this security is performing. Investments — Equity Method. In January 2015, the Company, along with seven other insurance companies, established a micro-insurance venture consortium and micro-insurance incubator (“MVI”) domiciled in Bermuda. The MVI is a social impact organization that provides micro-insurance products to assist global emerging consumers. The Company’s initial investment in the MVI was $0.8 million . The Company made an additional investment of $0.1 million in the twelve months ended December 31, 2017 and a further investment of $0.2 million in the twelve months ended December 31, 2018. On September 25, 2012, the Company established a subsidiary, Aspen Recoveries Limited, to take ownership of a 58.5% shareholding in Chaspark Maritime Holdings Ltd., a Singaporean registered company (“Chaspark”), with the remaining shareholding owned by other insurers. The shareholding in Chaspark represented the interest in subrogation rights arising on a contract frustration claim settlement. On March 10, 2017, Aspen Recoveries Limited received cash of $9.3 million as settlement of its share of subrogation assets held by Chaspark. In the twelve months ended December 31, 2017, the change in the value of the Company’s investment in Chaspark was an unrealized gain of $0.9 million . On July 26, 2016, the Company purchased through its wholly-owned subsidiary, Acorn Limited (“Acorn”), a 20.0% share of Bene Assicurazioni (“Bene”), an Italian-based motor insurer for a total consideration of $3.3 million . The investment is accounted for under the equity method and adjustments to the carrying value of this investment are made based on the Company’s share of capital, including share of income and expenses. The Company made additional investments of $1.2 million and $1.1 million , in the twelve months ended December 31, 2018 and December 31, 2019, respectively. On January 1, 2017, the Company purchased through its wholly-owned subsidiary, Aspen U.S. Holdings, Inc. (“Aspen U.S. Holdings”), a 49% share of Digital Risk Resources, LLC (“Digital Re”), a U.S.-based enterprise engaged in the business of developing, marketing and servicing turnkey information security and privacy liability insurance products for a total consideration of $2.3 million . The investment is accounted for under the equity method and adjustments to the carrying value of this investment are made based on the Company’s share of capital, including share of income and expenses. On December 18, 2017, the Company acquired through its wholly-owned subsidiary, Aspen U.S. Holdings, a 23.2% share of Crop Re Services LLC (“Crop Re”), a newly formed U.S.-based subsidiary of CGB Diversified Services, Inc (“CGB DS”) in exchange for the sale of AG Logic Holdings, LLC (“AgriLogic”), the Company’s U.S. crop insurance business. Total consideration for the sale of AgriLogic consisted of the 23.2% share of Crop Re valued at $62.5 million and cash in the amount of $5.9 million . Crop Re is responsible for directing the placement of reinsurance on behalf of CGB DS and CGB Insurance Company (“CGBIC”), an Indiana insurance company affiliate of CGB DS and an RMA licensed crop insurer. The remaining 76.8% of Crop Re is owned by CGB DS. AAIC, or an affiliate of AAIC, provides quota share reinsurance to CGBIC for both federal and state regulated crop insurance as part of the Company’s ownership in Crop Re. The investment in Crop Re represents the Company’s share of the net assets of Crop Re plus a basis difference which represents the difference between the cost of the investment and the amount of underlying equity in net assets. The Company has determined that this basis difference of $62.5 million represents the value attributable to the ability of Crop Re to direct the placement of reinsurance business under the reinsurance commitment contained within the operating agreement between Crop Re and the Company. The investment in Crop Re is accounted for under the equity method and adjustments to the carrying value of this investment are made based on the Company’s share of capital, including share of income and expenses. On September 18, 2018, Aspen U.S. Holdings sold a 60% interest in AgriLogic Consulting, LLC, its agricultural consulting business, to CGB DS and an individual investor. The Company’s residual 40% interest in AgriLogic Consulting, LLC is valued at $ Nil . The table below shows the Company’s investments in MVI, Bene, Digital Re and Crop Re for the twelve months ended December 31, 2019 and 2018 : MVI Bene Digital Re Crop Re Total ($ in millions) Opening undistributed value of investment as at January 1, 2019 $ 0.5 $ 3.2 $ 0.9 $ 62.5 $ 67.1 Investment in the period — 1.1 — — 1.1 Unrealized (loss)/gain for the twelve months to December 31, 2019 (0.1 ) — (0.2 ) — (0.3 ) Closing value of investment as at December 31, 2019 $ 0.4 $ 4.3 $ 0.7 $ 62.5 $ 67.9 Opening undistributed value of investment as at January 1, 2018 $ 0.5 $ 2.9 $ 0.5 $ 62.5 $ 66.4 Investment in the period 0.2 1.2 — — 1.4 Unrealized (loss)/gain for the twelve months to December 31, 2018 (0.2 ) (0.9 ) 0.4 — (0.7 ) Closing value of investment as at December 31, 2018 $ 0.5 $ 3.2 $ 0.9 $ 62.5 $ 67.1 Other Investments. On December 20, 2017, the Company committed $100.0 million as a limited partner to a real estate fund. The investment objective of the fund is to achieve attractive risk-adjusted returns through the acquisition of income producing, high quality assets in gateway cities located in the U.S. and Canada in the office, retail, industrial and multifamily sectors of the real estate market. On May 1, 2018, the Company received a demand for an initial capital call of $86.2 million and paid the capital call on May 10, 2018. On September 19, 2018, the Company received a demand for the final capital call of $13.8 million and paid the capital on September 28, 2018. On December 23, 2019, the Company committed $5.0 million as an equity investment in the holding company of a multi-line reinsurer. The strategy for the multi-line reinsurer is to combine a diversified reinsurance business, focused primarily on long-tailed lines of property and casualty business and, potentially to a lesser extent, life business, with a diversified investment strategy. On December 27, 2019, the Company received a demand for an initial capital call of $0.2 million and paid the capital on January 15, 2020. For further information on the real estate fund and the multi-line reinsurer, refer to Note 20(a) in these consolidated financial statements, “Commitments and Contingencies.” Fixed Income Securities. The scheduled maturity distribution of the Company’s available for sale fixed income securities as at December 31, 2019 and December 31, 2018 is set forth below. Actual maturities may differ from contractual maturities because issuers of securities may have the right to call or prepay obligations with or without call or prepayment penalties. As at December 31, 2019 Amortized Cost or Cost Fair Market Value Average S&P Ratings by Maturity ($ in millions) Due one year or less $ 572.7 $ 574.6 AA Due after one year through five years 2,230.3 2,269.3 AA- Due after five years through ten years 864.1 896.3 AA- Due after ten years 119.0 138.3 AA- Total — Government and corporate 3,786.1 3,878.5 Non-agency commercial mortgage-backed 6.7 6.5 AA+ Agency mortgage-backed 1,052.2 1,073.0 AA+ Asset-backed 0.2 0.2 AAA Total fixed income securities — Available for sale $ 4,845.2 $ 4,958.2 At December 31, 2018 Amortized Cost or Cost Fair Market Value Average S&P Ratings by Maturity ($ in millions) Due one year or less $ 464.3 $ 463.5 AA- Due after one year through five years 2,605.7 2,582.0 AA- Due after five years through ten years 1,047.9 1,028.3 AA- Due after ten years 121.9 127.0 AA- Total — Government and corporate 4,239.8 4,200.8 Agency mortgage-backed 1,025.1 1,012.6 AA+ Asset-backed 17.4 17.3 AAA Total fixed income securities — Available for sale $ 5,282.3 $ 5,230.7 Guaranteed Investments. As at December 31, 2019 and December 31, 2018 , the Company held no investments which are guaranteed by mono-line insurers, excluding those with explicit government guarantees. The Company’s exposure to other third-party guaranteed debt is primarily to investments backed by non-U.S. government guaranteed issuers. Gross Unrealized Losses. The following tables summarize, by type of security, the aggregate fair value and gross unrealized loss by length of time the security has been in an unrealized loss position for the Company’s available for sale portfolio as at December 31, 2019 and December 31, 2018 : December 31, 2019 0-12 months Over 12 months Total Fair Market Value Gross Unrealized Losses Fair Market Value Gross Unrealized Losses Fair Market Value Gross Unrealized Losses Number of Securities ($ in millions) U.S. government $ 142.0 $ (1.0 ) $ 138.2 $ (0.4 ) $ 280.2 $ (1.4 ) 49 U.S. agency 3.0 — 6.0 — 9.0 — 2 Municipal 3.7 — — — 3.7 — 2 Corporate 167.7 (0.6 ) 37.1 — 204.8 (0.6 ) 91 Non-U.S. government-backed corporate 31.8 (0.1 ) — — 31.8 (0.1 ) 9 Non-U.S. government 48.6 (0.4 ) 0.6 — 49.2 (0.4 ) 20 Asset-backed — — 0.2 — 0.2 — 1 Non-agency commercial mortgage-backed 6.5 (0.2 ) — — 6.5 (0.2 ) 1 Agency mortgage-backed 149.7 (0.3 ) 68.4 (0.8 ) 218.1 (1.1 ) 80 Total fixed income securities — Available for sale 553.0 (2.6 ) 250.5 (1.2 ) 803.5 (3.8 ) 255 Total short-term investments — Available for sale 29.5 — — — 29.5 — 5 Total $ 582.5 $ (2.6 ) $ 250.5 $ (1.2 ) $ 833.0 $ (3.8 ) 260 December 31, 2018 0-12 months Over 12 months Total Fair Market Value Gross Unrealized Losses Fair Market Value Gross Unrealized Losses Fair Market Value Gross Unrealized Losses Number of Securities ($ in millions) U.S. government $ 180.2 $ (0.7 ) $ 740.6 $ (15.4 ) $ 920.8 $ (16.1 ) 103 U.S. agency 13.5 (0.2 ) 18.4 (0.2 ) 31.9 (0.4 ) 12 Municipal 3.1 (0.1 ) 25.0 (0.7 ) 28.1 (0.8 ) 9 Corporate 999.1 (15.2 ) 762.2 (25.3 ) 1,761.3 (40.5 ) 667 Non-U.S. government-backed corporate 14.5 — 25.8 (0.2 ) 40.3 (0.2 ) 12 Non-U.S. government 64.0 (0.3 ) 91.0 (0.5 ) 155.0 (0.8 ) 57 Asset-backed 6.3 — 10.8 (0.1 ) 17.1 (0.1 ) 8 Agency mortgage-backed 245.7 (2.6 ) 447.3 (16.4 ) 693.0 (19.0 ) 253 Total fixed income securities — Available for sale 1,526.4 (19.1 ) 2,121.1 (58.8 ) 3,647.5 (77.9 ) 1,121 Total short-term investments — Available for sale 34.5 — — — 34.5 — 12 Total $ 1,560.9 $ (19.1 ) $ 2,121.1 $ (58.8 ) $ 3,682.0 $ (77.9 ) 1,133 Other-than-temporary Impairments. A security is potentially impaired when its fair value is below its cost or amortized cost. The Company reviews its available for sale fixed income and equity portfolios on an individual security basis for potential OTTI each quarter based on criteria including issuer-specific circumstances, credit ratings actions and general macro-economic conditions. The total OTTI charge for the twelve months ended December 31, 2019 was $ Nil ( 2018 — $ Nil ). For a more detailed description of accounting policies for OTTI, refer to Note 2(c), “Basis of Preparation and Significant Accounting Policies — Accounting for Investments, Cash and Cash Equivalents” of these consolidated financial statements. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Variable Interest Entities | Variable Interest Entities As at December 31, 2019 , the Company had investments in one ( December 31, 2018 — two ) variable interest entity (“VIE”), namely Peregrine Reinsurance Ltd (“Peregrine”). Peregrine. In November 2016, Peregrine, a subsidiary of the Company, was registered as a segregated accounts company under the Segregated Accounts Companies Act 2000, as amended. As at December 31, 2019 , Peregrine had four segregated accounts which were funded by third-party investors. The Company has determined that Peregrine has the characteristics of a VIE as addressed by the guidance in ASC 810, Consolidation . The four segregated accounts have not been consolidated as part of the Company’s consolidated financial statements because the Company is not the primary beneficiary of those accounts. The Company has, however, concluded that it is the primary beneficiary of the Peregrine general fund and, similar to prior reporting periods, the results of the Peregrine general fund are included in the Company’s consolidated financial statements. The Company’s exposure to Peregrine’s general fund is not material. Silverton. On September 10, 2013, the Company established Silverton Re Ltd (“Silverton”), a Bermuda domiciled special purpose insurer formed to provide additional collateralized capacity to support Aspen Re’s business through retrocession agreements which are collateralized and funded by Silverton through the issuance of one or more series of participating loan notes (collectively, the “Loan Notes”). Silverton is a non-rated insurer and the risks are fully collateralized by way of funds held in trust for the benefit of Aspen Bermuda and Aspen U.K., the ceding reinsurers. Silverton has not issued any Loan Notes since 2017. All proceeds from the issuance of the Loan Notes were deposited into separate collateral accounts for each series of Loan Notes to fund Silverton’s obligations under a retrocession property quota share agreement entered into with Aspen Bermuda or Aspen Bermuda and Aspen U.K, as the case may be. The holders of the Loan Notes participated in any profit or loss generated by Silverton attributable to the operations of the respective Silverton segregated account. Any existing value of the Loan Notes was returned to the noteholders in installments after the expiration of the risk period of the retrocession agreement issued by Silverton for the related series of Loan Notes with the final payment being contractually due on the respective maturity dates. A final payment was made to noteholders after commutation of the reinsurance agreement on July 1, 2019. Silverton has no further reinsurance commitments outstanding. The following tables show the total liability balance of the Loan Notes for the twelve months ended December 31, 2019 and 2018 : For the Twelve Months Ended December 31, 2019 Third Party Aspen Holdings Total ($ in millions) Opening balance $ 4.6 $ 1.1 $ 5.7 Total change in fair value for the period 3.1 0.8 3.9 Total distributed in the period (7.7 ) (1.9 ) (9.6 ) Closing balance as at December 31, 2019 $ — $ — $ — Liability Loan notes (long-term liabilities) $ — $ — $ — Accrued expenses (current liabilities) — — — Total aggregate unpaid balance as at December 31, 2019 $ — $ — $ — For the Twelve Months Ended December 31, 2018 Third Party Aspen Holdings Total ($ in millions) Opening balance $ 86.6 $ 20.6 $ 107.2 Total change in fair value for the period 4.4 1.1 5.5 Total distributed in the period (86.4 ) (20.6 ) (107.0 ) Closing balance as at December 31, 2018 $ 4.6 $ 1.1 $ 5.7 Liability Loan notes (long-term liabilities) $ — $ — $ — Accrued expenses (current liabilities) 4.6 1.1 5.7 Total aggregate unpaid balance as at December 31, 2018 $ 4.6 $ 1.1 $ 5.7 The Company had determined that Silverton has the characteristics of a VIE that are addressed by the guidance in ASC 810, Consolidation. The Company concluded that it was the primary beneficiary of Silverton as it owned all of Silverton’s voting shares and issued share capital, and had a significant financial interest in, and the power to control, Silverton. As a result, the Company consolidated Silverton upon its formation. The Company had no other obligation to provide financial support to Silverton and neither the creditors nor beneficial interest holders of Silverton had recourse to the Company’s general credit. After commutation of the 2017 reinsurance contract and settlement of all Loan Notes, the Company has determined that Silverton will no longer be regarded as a VIE. For further information regarding the Loan Notes attributable to the third-party investments in Silverton, refer to Note 6, “Fair Value Measurements” of these consolidated financial statements. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company’s estimates of fair value for financial assets and liabilities are based on the framework established in the fair value accounting guidance included in ASC Topic 820, “ Fair Value Measurements and Disclosures .” The framework prioritizes the inputs, which refer broadly to assumptions market participants would use in pricing an asset or liability, into three levels. The Company considers prices for actively traded securities to be derived based on quoted prices in an active market for identical assets, which are Level 1 inputs in the fair value hierarchy. The majority of these securities are valued using prices supplied by pricing services. The Company considers prices for other securities that may not be as actively traded which are priced via pricing services, vendors and broker-dealers, or with reference to interest rates and yield curves, to be derived based on inputs that are observable for the asset, either directly or indirectly, which are Level 2 inputs in the fair value hierarchy. The majority of these securities are also valued using prices supplied by pricing services. The Company considers securities, other financial instruments, privately-held investments and derivative insurance contracts subject to fair value measurement whose valuation is derived by internal valuation models to be based largely on unobservable inputs, which are Level 3 inputs in the fair value hierarchy. The following tables present the level within the fair value hierarchy at which the Company’s financial assets and liabilities are measured on a recurring basis as at December 31, 2019 and December 31, 2018 : As at December 31, 2019 Level 1 Level 2 Level 3 Total ($ in millions) Available for sale financial assets, at fair value U.S. government $ 1,413.1 $ — $ — $ 1,413.1 U.S. agency — 39.6 — 39.6 Municipal — 50.7 — 50.7 Corporate — 1,959.8 — 1,959.8 Non-U.S. government-backed corporate — 86.5 — 86.5 Non-U.S. government 199.8 129.0 — 328.8 Asset-backed — 0.2 — 0.2 Non-agency commercial mortgage-backed — 6.5 — 6.5 Agency mortgage-backed — 1,073.0 — 1,073.0 Total fixed income securities available for sale, at fair value 1,612.9 3,345.3 — 4,958.2 Short-term investments available for sale, at fair value 108.1 9.5 — 117.6 Held for trading financial assets, at fair value U.S. government 185.0 — — 185.0 Municipal — 3.2 — 3.2 Corporate — 243.2 — 243.2 Non-U.S. government-backed corporate — — — — Non-U.S. government 48.3 102.9 — 151.2 Asset-backed — 492.4 — 492.4 Agency mortgage-backed — 53.8 — 53.8 Total fixed income securities trading, at fair value 233.3 895.5 — 1,128.8 Short-term investments trading, at fair value 79.2 — — 79.2 Privately-held investments trading, at fair value — — 279.7 279.7 Catastrophe bonds trading, at fair value — 28.6 — 28.6 Other investments (1) — — — 111.4 Other financial assets and liabilities, at fair value Derivatives at fair value — foreign exchange contracts — 12.9 — 12.9 Liabilities under derivative contracts — foreign exchange contracts — (8.9 ) — (8.9 ) Derivatives at fair value — interest rate swaps — (78.3 ) — (78.3 ) Loan notes issued by variable interest entities, at fair value (included within accrued expenses and other payables) — — — — Total $ 2,033.5 $ 4,204.6 $ 279.7 $ 6,629.2 ______________ (1) Other investments represents our investment in a real estate fund and is measured at fair value using the net asset value per share practical expedient. As a result this has not been classified in the fair value hierarchy. The fair value amounts presented in the table above are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheets. The investment in the real estate fund is subject to restrictions as detailed in Note 20(a), “Commitments and Contingencies.” At December 31, 2018 Level 1 Level 2 Level 3 Total ($ in millions) Available for sale financial assets, at fair value U.S. government $ 1,404.2 $ — $ — $ 1,404.2 U.S. agency — 47.4 — 47.4 Municipal — 47.2 — 47.2 Corporate — 2,206.2 — 2,206.2 Non-U.S. government-backed corporate — 93.2 — 93.2 Non-U.S. government 268.0 134.6 — 402.6 Asset-backed — 17.3 — 17.3 Agency mortgage-backed — 1,012.6 — 1,012.6 Total fixed income securities available for sale, at fair value 1,672.2 3,558.5 — 5,230.7 Short-term investments available for sale, at fair value 93.7 11.9 — 105.6 Held for trading financial assets, at fair value U.S. government 147.7 — — 147.7 Municipal — 2.7 — 2.7 Corporate — 720.2 — 720.2 Non-U.S. government-backed corporate — — — — Non-U.S. government 68.2 197.2 — 265.4 Asset-backed — 2.4 — 2.4 Agency mortgage-backed — 49.4 — 49.4 Total fixed income securities trading, at fair value 215.9 971.9 — 1,187.8 Short-term investments trading, at fair value 4.5 5.0 — 9.5 Catastrophe bonds trading, at fair value — 36.2 — 36.2 Other investments (1) — — — 102.5 Other financial assets and liabilities, at fair value Derivatives at fair value — foreign exchange contracts — 14.6 — 14.6 Liabilities under derivative contracts — foreign exchange contracts — (15.1 ) — (15.1 ) Loan notes issued by variable interest entities, at fair value (included within accrued expenses and other payables) — — (4.6 ) (4.6 ) Total $ 1,986.3 $ 4,583.0 $ (4.6 ) $ 6,667.2 ______________ (1) Other investments represents our investment in a real estate fund and is measured at fair value using the net asset value per share practical expedient. As a result this has not been classified in the fair value hierarchy. The fair value amounts presented in the table above are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheets. The investment in the real estate fund is subject to restrictions as detailed in Note 20(a), “Commitments and Contingencies.” Transfers of assets into or out of a particular level are recorded at their fair values as of the end of each reporting period consistent with the date of the determination of fair value. During the twelve months ended December 31, 2019 and December 31, 2018 , there were no transfers between Level 1, Level 2 and Level 3. As at December 31, 2019 , there were privately-held investments worth $279.7 million ( December 31, 2018 — $ Nil ) classified as Level 3. The Company settled $7.7 million Level 3 liabilities in respect of the Loan Notes issued by Silverton and therefore no other liabilities were classified as Level 3 for the twelve months ended December 31, 2019 . As at December 31, 2018 , there were no assets classified as Level 3 and the Company’s Level 3 liabilities consisted solely of the Loan Notes issued by Silverton. The Company settled $86.4 million Level 3 liabilities in respect to the Loan Notes issued by Silverton for the twelve months ended December 31, 2018 . The following table presents a reconciliation of the beginning and ending balances for all assets and liabilities measured at fair value on a recurring basis using Level 3 inputs for the twelve months ended December 31, 2019 and December 31, 2018 : Twelve Months Ended December 31, 2019 Balance at beginning of year Purchases and issuances Settlements and sales Increase/(decrease) in fair value included net income Balance at end of year Change in unrealized investment gains (losses) relating to assets held at end of year Assets Privately-held investments — trading Commercial mortgage loans $ — $ 174.7 $ (20.1 ) $ 1.7 $ 156.4 $ 0.3 Middle market loans — 115.5 (3.8 ) 0.1 111.7 — Asset-backed securities — 8.7 — — 8.7 — Equity securities — 2.7 — — 2.7 — Total Level 3 assets $ — $ 301.5 $ (23.9 ) $ 1.8 $ 279.5 $ 0.3 Liabilities Loan notes issued by Silverton (1) $ 4.6 $ — $ (7.7 ) $ 3.1 $ — $ — Total Level 3 liabilities $ 4.6 $ — $ (7.7 ) $ 3.1 $ — $ — Twelve Months Ended December 31, 2018 Liabilities Loan notes issued by Silverton (1) $ 86.6 $ — $ (86.4 ) $ 4.4 $ 4.6 $ — Total Level 3 liabilities $ 86.6 $ — $ (86.4 ) $ 4.4 $ 4.6 $ — ____________________ (1) The amount classified as other payables was $ Nil and $4.6 million as at December 31, 2019 and December 31, 2018 , respectively. Valuation of Fixed Income Securities . The Company’s fixed income securities are classified as either available for sale or trading and are carried at fair value. As at December 31, 2019 and December 31, 2018 , the Company’s fixed income securities were valued by pricing services or broker-dealers using standard market conventions. The market conventions utilize market quotations, market transactions in comparable instruments and various relationships between instruments including, but not limited to, yield to maturity, dollar prices and spread prices in determining value. Independent Pricing Services. The underlying methodology used to determine the fair value of securities in the Company’s available for sale and trading portfolios is by the pricing services. Pricing services will gather observable pricing inputs from multiple external sources, including buy and sell-side contacts and broker-dealers, in order to develop their internal prices. Pricing services provide pricing for less complex, liquid securities based on market quotations in active markets. Pricing services supply prices for a broad range of securities including those for actively traded securities, such as Treasury and other Government securities, in addition to those that trade less frequently or where valuation includes reference to credit spreads, pay down and pre-pay features and other observable inputs. These securities include Government agency, municipals, corporate and asset-backed securities. For securities that may trade less frequently or do not trade on a listed exchange, these pricing services may use matrix pricing consisting of observable market inputs to estimate the fair value of a security. These observable market inputs include: reported trades, benchmark yields, broker-dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, reference data, and industry and economic factors. Additionally, pricing services may use a valuation model such as an option adjusted spread model commonly used for estimating fair values of mortgage-backed and asset-backed securities. The Company does not derive dollar prices using an index as a pricing input for any individual security. Broker-Dealers. The Company obtains quotes from broker-dealers who are active in the corresponding markets when prices are unavailable from independent pricing services or index providers. Generally, broker-dealers value securities through their trading desks based on observable market inputs. Their pricing methodologies include mapping securities based on trade data, bids or offers, observed spreads and performance of newly issued securities. They may also establish pricing through observing secondary trading of similar securities. Quotes from broker-dealers are non-binding. The Company obtains prices for all of its fixed income investment securities via its third-party accounting service provider, and in the majority of cases receiving a number of quotes so as to obtain the most comprehensive information available to determine a security’s fair value. A single valuation is applied to each security based on the vendor hierarchy maintained by the Company’s third-party accounting service provider. As at December 31, 2019 , the Company obtained an average of 2.4 quotes per fixed income investment compared to 2.2 quotes at December 31, 2018 . The Company, in conjunction with its third-party accounting service provider, obtains an understanding of the methods, models and inputs used by the third-party pricing service and index providers to assess the ongoing appropriateness of vendors’ prices. The Company and its third-party accounting service provider also have controls in place to validate that amounts provided represent fair values. Processes to validate and review pricing include, but are not limited to: • quantitative analysis (e.g., comparing the quarterly return for each managed portfolio to its target benchmark, with significant differences identified and investigated); • comparison of market values obtained from pricing services and broker-dealers against alternative price sources for each security where further investigation is completed when significant differences exist for pricing of individual securities between pricing sources; • initial and ongoing evaluation of methodologies used by outside parties to calculate fair value; and • comparison of the fair value estimates to the Company’s knowledge of the current market. Prices obtained from pricing services and broker-dealers are not adjusted by us; however, prices provided by a pricing service, or broker-dealer in certain instances may be challenged based on market or information available from internal sources, including those available to the Company’s third-party investment accounting service provider. Subsequent to any challenge, revisions made by the pricing service or broker-dealer to the quotes are supplied to the Company’s investment accounting service provider. Management reviews the vendor hierarchy maintained by the Company’s third-party accounting service provider in order to determine which price source provides the most appropriate fair value (i.e., a price obtained from a pricing service with more seniority in the hierarchy will be used over a less senior one in all cases). The hierarchy level assigned to each security in the Company’s available for sale and trading portfolios is based upon its assessment of the transparency and reliability of the inputs used in the valuation as of the measurement date. The hierarchy of pricing services is determined using various qualitative and quantitative points arising from reviews of the vendors conducted by the Company’s third-party accounting service provider. Vendor reviews include annual onsite due diligence meetings with index providers and pricing services vendors covering valuation methodology, operational walkthroughs and legal and compliance updates. Fixed Income Securities . Fixed income securities are traded on the over-the-counter (“OTC”) market based on prices provided by one or more market makers in each security. Securities such as U.S. Government, U.S. Agency, Foreign Government and investment grade corporate bonds have multiple market makers in addition to readily observable market value indicators such as expected credit spread, except for Treasury securities, over the yield curve. The Company uses a variety of pricing sources to value fixed income securities including those securities that have pay down/prepay features such as mortgage-backed securities and asset-backed securities in order to ensure fair and accurate pricing. The fair value estimates for the investment grade securities in the Company’s portfolio do not use significant unobservable inputs or modeling techniques. U.S. Government and Agency Securities. U.S. government and agency securities consist primarily of bonds issued by the U.S. Treasury and corporate debt issued by agencies such as the Federal National Mortgage Association (“FNMA”), the Federal Home Loan Mortgage Corporation (“FHLMC”) and the Federal Home Loan Bank. As the fair values of U.S. Treasury securities are based on unadjusted market prices in active markets, they are classified within Level 1. The fair values of U.S. government agency securities are priced using the spread above the risk-free yield curve. As the yields for the risk-free yield curve and the spreads for these securities are observable market inputs, the fair values of U.S. government agency securities are classified within Level 2. Municipal Securities. The Company’s municipal portfolio consist of bonds issued by U.S. domiciled state and municipality entities. The fair value of these securities is determined using spreads obtained from broker-dealers, trade prices and the new issue market which are Level 2 inputs in the fair value hierarchy. Consequently, these securities are classified within Level 2. Non-U.S. Government. The issuers for securities in this category are non-U.S. governments and their agents including, but not limited to, the U.K., Australia, Canada, France and Germany. The fair values of certain non-U.S. government bonds, primarily sourced from international indices, are based on unadjusted market prices in active markets and are therefore classified within Level 1. The remaining non-U.S. government bonds are classified within level 2 as they are not actively traded. The fair values of the non-U.S. agency securities, again primarily sourced from international indices, are priced using the spread above the risk-free yield curve. As the yields for the risk-free yield curve and the spreads for these securities are observable market inputs, the fair values of non-U.S. agency securities are classified within Level 2. In addition, foreign government securities include a portion of the Emerging Market Debt (“EMD”) portfolio which is also classified within Level 2. Corporate. Corporate securities consist primarily of short-term, medium-term and long-term debt issued by U.S. and foreign corporations covering a variety of industries and are generally priced by index providers and pricing vendors. Some issuers may participate in government programs which guarantee timely payment of principal and interest in the event of a default. The fair values of these securities are generally determined using the spread above the risk-free yield curve. Inputs used in the evaluation of these securities include credit data, interest rate data, market observations and sector news, broker-dealer quotes and trade volumes. In addition, corporate securities include a portion of the EMD portfolio. The Company classifies all of these securities within Level 2. Mortgage-backed Securities. Residential and commercial mortgage-backed securities consist of bonds issued by the Government National Mortgage Association, the FNMA and the FHLMC as well as private non-agency issuers. The fair values of these securities are determined through the use of a pricing model (including Option Adjusted Spread) which uses prepayment speeds and spreads to determine the appropriate average life of the mortgage-backed security. These spreads are generally obtained from broker-dealers, trade prices and the new issue market. As the significant inputs used to price mortgage-backed securities are observable market inputs, these securities are classified within Level 2. Asset-backed Securities. Asset-backed securities are securities backed by notes or receivables against assets other than real estate. The underlying collateral for the Company’s asset-backed securities consists mainly of student loans, automobile loans and credit card receivables. These securities are primarily priced by index providers and pricing vendors. Inputs to the valuation process include broker-dealer quotes and other available trade information, prepayment speeds, interest rate data and credit spreads. The Company classifies these securities within Level 2. Short-term Investments. Short-term investments consist of highly liquid debt securities with a maturity greater than three months but less than one year from the date of purchase. Short-term investments are classified as either trading or available for sale according to the facts and circumstances of the investment held. Short-term investments are valued in a manner similar to the Company’s fixed maturity investments and are classified within Levels 1 and 2. Privately-Held Investments. Privately-held investments are initially valued at cost or transaction value which approximates fair value. In subsequent measurement periods, the fair values of these securities are determined using internally developed discounted cash flow models. These models include inputs that are specific to each investment. The inputs used in the fair value measurements include dividend or interest rates and 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 securities. A significant increase (decrease) in this input in isolation could result in significantly lower (higher) fair value measurement for privately-held investments. In order to assess the reasonableness of the inputs the Company uses in the discounted cash flow models, the Company maintains an understanding of current market conditions, issuer specific information that may impact future cash flows as well as collaboration with independent vendors for most securities to assess the reasonableness of the discount rate being used. The following table summarizes the quantitative inputs and assumptions used for financial assets and liabilities categorized as Level 3 under the fair value hierarchy as at December 31, 2019 : At December 31, 2019 Fair Value Level 3 Valuation Techniques Unobservable (U) inputs Ranges Weighted Average ($ in millions) Privately-held investments — Trading Commercial mortgage loans $ 125.7 Discounted cash flow Discount rate 5.0% 6.3% 5.8% Commercial mortgage loans 30.9 Transaction Value n/a n/a n/a n/a Middle market loans 111.7 Discounted cash flow Discount rate 6.8% 10.3% 7.9% Asset-backed securities 8.7 Discounted cash flow Discount rate 6.4% 6.4% 6.4% Equity securities $ 2.7 Transaction Value n/a n/a n/a n/a $ 279.7 Catastrophe Bonds. Catastrophe bonds are variable rate fixed income instruments with redemption values adjusted based on the occurrence of a covered event, usually windstorms and earthquakes. Catastrophe bonds are classified as trading and carried at fair value. Catastrophe bonds are priced using an average of multiple broker-dealer quotes and as such, are considered Level 2. Foreign Exchange Contracts. The foreign exchange contracts which the Company uses to mitigate currency risk are characterized as OTC due to their customized nature and the fact that they do not trade on a major exchange. These instruments trade in a very deep liquid market, providing substantial price transparency and accordingly are classified as Level 2. Interest Rate Swaps . The interest rate swaps which the Company uses to mitigate interest risk are characterized as OTC and are valued by the counterparty using quantitative models with multiple market inputs. The market inputs, such as interest rates and yield curves, are observable and the valuation can be compared for reasonableness with third-party pricing services. Consequently, these instruments are classified as Level 2. Other investments. The Company’s other investments represent our investment in a real estate fund. Adjustments to the fair value are made based on the net asset value of the investment. The net valuation criteria established by the manager of such investments are established in accordance with the governing documents and the asset manager’s valuation guidelines, which consider a two part approach: the discounted cash flows approach and the performance multiple approach, which uses a multiple/capitalization rate derived from market metrics from comparable companies or assets to produce operating performance metrics. Alternative valuation methodologies may be employed for investments with unusual characteristics. Loan Notes Issued by Variable Interest Entities . Silverton, a Bermuda special purpose insurer, was consolidated into the Company’s group accounts as a VIE. In the fourth quarter of 2014, Silverton issued $85.0 million ( $70.0 million third-party funded) of Loan Notes that matured on September 18, 2017. During the fourth quarter of 2015, Silverton issued $125.0 million ( $100.0 million third-party funded) of Loan Notes that matured on September 17, 2018. In the fourth quarter of 2016, Silverton issued $130.0 million ( $105.0 million third-party funded) of Loan Notes. A final payment was made to noteholders after commutation of the reinsurance agreement on July 1, 2019. Silverton has no further reinsurance commitments outstanding. The Company elected to account for the Loan Notes at fair value using the guidance as prescribed under ASC 825, Financial Instruments as the Company believes it represents the most meaningful measurement basis for these liabilities. The Loan Notes are recorded at fair value at each reporting period and, given they are not quoted on an active market and contain significant unobservable inputs, they have been classified as Level 3 instruments in the Company’s fair value hierarchy. The Loan Notes are unique because they are linked to the specific risks of the Company’s property catastrophe book. To determine the fair value of the Loan Notes the Company runs an internal model which considers the seasonality of the risk assumed under the retrocessional agreement between Aspen Bermuda or a combination of Aspen Bermuda and Aspen U.K., as ceding reinsurers, and Silverton. The seasonality used in the model is determined by applying the percentage of property catastrophe losses planned by the Company’s actuaries to the estimated written premium to determine earned premium for each quarter. The inputs to the internal valuation model are based on Company specific data due to the lack of observable market inputs. Reserves for losses are the most significant unobservable input. An increase in reserves for losses would normally result in a decrease in the fair value of the Loan Notes while a decrease in reserves would normally result in an increase in the fair value of the Loan Notes. The Loan Notes were redeemed as at December 31, 2019 and therefore the table below only presents the observable and unobservable inputs used to determine the fair value of the Loan Notes as at December 31, 2018 . At December 31, 2018 Fair Value Level 3 Valuation Method Observable (O) and Unobservable (U) inputs Low High ($ in millions) ($ in millions) Loan Notes $ 4.6 (1) Internal Valuation Model Gross premiums written (O) $ 50.1 $ 61.1 Reserve for losses (U) $ 4.2 $ 61.9 Contract period (O) N/A 365 days Initial value of issuance (O) $ 325.0 $ 325.0 ______________ (1) The amount classified as other payables was $ Nil and $4.6 million as at December 31, 2019 and December 31, 2018 , respectively. The observable and unobservable inputs represent the potential variation around the inputs used in the valuation model. The contract period is defined in the respective Loan Notes agreement and the initial value represents the funds received from third parties. |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2019 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | Reinsurance The Company purchases retrocession and reinsurance to limit and diversify the Company’s risk exposure and to increase its own insurance and reinsurance underwriting capacity. These agreements provide for recovery of a portion of losses and loss adjustment expenses from reinsurers. As is the case with most reinsurance contracts, the Company remains liable to the extent that reinsurers do not meet their obligations under these agreements. In line with its risk management objectives, the Company evaluates the financial condition of its reinsurers and monitors concentrations of credit risk. Balances pertaining to reinsurance transactions are reported “gross” on the consolidated balance sheet, meaning that reinsurance recoverable on unpaid losses and ceded unearned premiums are not deducted from insurance reserves but are recorded as assets. For more information on reinsurance recoverables, refer to Note 20, “Concentrations of Credit Risk — Reinsurance recoverables” and Note 10, “Reserves for Losses and Loss Adjustment Expenses” of these consolidated financial statements. The effect of assumed and ceded reinsurance on premiums written, premiums earned and insurance losses and loss adjustment expenses for the twelve months ended December 31, 2019 , 2018 and 2017 was as follows: Twelve Months Ended December 31, 2019 2018 2017 ($ in millions) Premiums written : Direct $ 1,956.9 $ 1,951.2 $ 1,812.4 Assumed 1,485.5 1,495.7 1,548.5 Ceded (1,014.5 ) (1,364.9 ) (1,148.4 ) Net premiums written $ 2,427.9 $ 2,082.0 $ 2,212.5 Premiums earned: Direct $ 1,927.5 $ 1,940.5 $ 1,757.4 Assumed 1,494.9 1,593.9 1,451.8 Ceded (1,129.1 ) (1,319.7 ) (902.6 ) Net premiums earned $ 2,293.3 $ 2,214.7 $ 2,306.6 Insurance losses and loss adjustment expenses: Direct $ 1,415.5 $ 1,458.9 $ 1,673.6 Assumed 1,147.9 1,196.1 1,399.9 Ceded (883.7 ) (1,082.0 ) (1,078.8 ) Net insurance losses and loss adjustment expenses $ 1,679.7 $ 1,573.0 $ 1,994.7 The Company acquired retrospective reinsurance coverage during the twelve months ended December 31, 2017 as part of a loss portfolio transfer in the amount of $125.5 million which has been recognized within ceded insurance losses. For more information on the loss portfolio transfer, refer to Note 10, “Reserves for Losses and Loss Adjustment Expenses” of these consolidated financial statements. |
Derivative Contracts
Derivative Contracts | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Contracts | Derivative Contracts The following table summarizes information on the location and amounts of derivative fair values on the consolidated balance sheet as at December 31, 2019 and 2018 : As at December 31, 2019 As at December 31, 2018 Derivatives Not Designated as Hedging Instruments Under ASC 815 Balance Sheet Location Notional Amount Fair Value Notional Amount Fair Value ($ in millions) ($ in millions) Foreign Exchange Contracts Derivatives at Fair Value $ 687.3 $ 8.1 (1) $ 496.5 $ 14.6 (1) Foreign Exchange Contracts Liabilities under Derivative Contracts $ 1,009.0 $ (8.9 ) $ 760.8 $ (13.9 ) Interest Rate Swaps Liabilities under Derivative Contracts $ 1,800.0 $ (78.3 ) (2) $ — $ — ______________ (1) Net of $2.9 million of cash collateral (December 31, 2018 — $2.3 million ). (2) Initial and variation margin of $111.1 million has been posted (December 31, 2018 — $ Nil ). As at December 31, 2019 As at December 31, 2018 Derivatives Designated as Hedging Instruments Under ASC 815 Balance Sheet Location Notional Amount Fair Value Notional Amount Fair Value ($ in millions) ($ in millions) Foreign Exchange Contracts Derivatives at Fair Value $ 85.5 $ 4.8 $ — $ — Foreign Exchange Contracts Liabilities under Derivative Contracts $ — $ — $ 94.3 $ (1.2 ) The following table provides the unrealized and realized gains/(losses) recorded in the statements of operations and other comprehensive income for derivatives that are not designated or designated as hedging instruments under ASC 815 — “ Derivatives and Hedging” for the twelve months ended December 31, 2019 and 2018 : Amount of (Loss)/Gain Recognized on Derivatives For the Twelve Months Ended Location of Gain/(Loss) Recognized on Derivatives December 31, 2019 December 31, 2018 Derivatives not designated as hedges ($ in millions) Foreign Exchange Contracts Change in Fair Value of Derivatives (14.0 ) (31.8 ) Interest Rate Swaps Change in Fair Value of Derivatives (130.2 ) — Derivatives designated as hedges Foreign Exchange Contracts General, administrative and corporate expenses 0.9 (1.2 ) Foreign Exchange Contracts Net change from current period hedged transactions 4.8 (2.1 ) Foreign Exchange Contracts. The Company uses foreign exchange contracts to manage foreign currency risk associated with our operating expenses but also foreign exchange risk associated with net assets or liabilities in currencies other than the U.S. dollar. A foreign exchange contract involves an obligation to purchase or sell a specified currency at a future date at a price set at the time of the contract. Foreign exchange contracts will not eliminate fluctuations in the value of the Company’s assets and liabilities denominated in foreign currencies but rather allow it to establish a rate of exchange for a future point in time. As at December 31, 2019 , the Company held foreign exchange contracts that were not designated as hedging under ASC 815 with an aggregate nominal amount of $1,696.3 million ( 2018 — $1,257.3 million ). The foreign exchange contracts are recorded as derivatives at fair value in the balance sheet with changes recorded as a change in fair value of derivatives in the statement of operations. For the twelve months ended December 31, 2019 , the impact of foreign exchange contracts on net income was a loss of $14.0 million ( December 31, 2018 — loss of $31.8 million ). As at December 31, 2019 , the Company held foreign exchange contracts that were designated as hedging under ASC 815 with an aggregate nominal amount of $85.5 million ( 2018 — $94.3 million ). The foreign exchange contracts are recorded as derivatives at fair value in the balance sheet with the effective portion recorded in other comprehensive income and the ineffective portion recorded as a change in fair value of derivatives in the statement of operations. The contracts are considered to be effective and therefore the movement in other comprehensive income representing the effective portion for the twelve months ended December 31, 2019 was a gain of $4.8 million ( December 31, 2018 — loss of $2.1 million ). As the foreign exchange contracts settle, the realized gain or loss is reclassified from other comprehensive income into general, administration and corporate expenses of the statement of operations and other comprehensive income. For the twelve months ended December 31, 2019 , the amount recognized within general, administration and corporate expenses for settled foreign exchange contracts was a realized gain of $0.9 million ( December 31, 2018 — loss of $1.2 million ). Interest Rate Swaps. In the first quarter of 2019, the Company entered into fixed for floating interest rate swaps with a total notional amount of $3,318.0 million due to mature between January 18, 2021 and January 18, 2034. The total notional amount as at December 31, 2019 was $1,800.0 million . The interest rate swaps are used in the ordinary course of the Company’s investments activities to partially mitigate any negative impact of rises in interest rates on the market value of the Company’s fixed income portfolio. For the twelve months ended December 31, 2019 , there was a loss of $130.2 million ( December 31, 2018 — $ Nil ). As at December 31, 2019 , initial and variation margin with a fair value of $111.1 million was posted to a Futures Commission Merchant to support the current valuation of the interest rate swaps ( December 31, 2018 — $ Nil ). As at December 31, 2019 , no non-cash collateral was transferred to the Company by its counterparties ( December 31, 2018 — $Nil). Transfers of margin are recorded on the consolidated balance sheet within Derivatives at Fair Value, while transfers in respect of non-cash collateral are disclosed but not recorded. As at December 31, 2019 , no amount was recorded in the consolidated balance sheet for the pledged assets. |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 12 Months Ended |
Dec. 31, 2019 | |
Insurance [Abstract] | |
Deferred Policy Acquisition Costs | Deferred Policy Acquisition Costs The following table represents a reconciliation of beginning and ending deferred policy acquisition costs for the twelve months ended December 31, 2019 and 2018 : Twelve Months Ended Twelve Months Ended December 31, 2018 ($ in millions) Balance at the beginning of the period $ 248.5 $ 294.3 Acquisition costs deferred 455.3 325.8 Amortization of deferred policy acquisition costs (412.7 ) (371.6 ) Balance at the end of the period $ 291.1 $ 248.5 |
Reserves for Losses and Adjustm
Reserves for Losses and Adjustment Expenses | 12 Months Ended |
Dec. 31, 2019 | |
Insurance [Abstract] | |
Reserves for Losses and Adjustment Expenses | Reserves for Losses and Loss Adjustment Expenses The following table represents a reconciliation of beginning and ending consolidated loss and LAE reserves for the twelve months ended December 31, 2019 , 2018 and 2017 : As at December 31, 2019 2018 2017 ($ in millions) Provision for losses and LAE at the start of the year $ 7,074.2 $ 6,749.5 $ 5,319.9 Less reinsurance recoverable (2,077.6 ) (1,515.2 ) (560.7 ) Net loss and LAE at the start of the year 4,996.6 5,234.3 4,759.2 Net loss and LAE expenses (disposed) — — (125.5 ) Movement in net provision for losses and LAE for claims incurred: Current year 1,620.2 1,684.1 2,100.1 Prior years 59.5 (111.1 ) (105.4 ) Total incurred 1,679.7 1,573.0 1,994.7 Losses and LAE payments for claims incurred: Current year (428.5 ) (285.7 ) (397.5 ) Prior years (1,694.1 ) (1,441.0 ) (1,157.6 ) Total paid (2,122.6 ) (1,726.7 ) (1,555.1 ) Foreign exchange losses/(gains) 78.3 (84.0 ) 161.0 Net losses and LAE reserves at the end of the year 4,632.0 4,996.6 5,234.3 Plus reinsurance recoverable on unpaid losses at the end of the year 2,319.8 2,077.6 1,515.2 Provision for losses and LAE at the end of the year $ 6,951.8 $ 7,074.2 $ 6,749.5 For the twelve months ended December 31, 2019 , there was an increase of $59.5 million in the Company’s estimate of the ultimate claims to be paid in respect of prior accident years compared to a reduction of $111.1 million for the twelve months ended December 31, 2018 . In the twelve months ended December 31, 2017 , the Company ceded $125.5 million as part of a loss portfolio transfer agreement. The following tables show an analysis of incurred claims and allocated loss adjustment expenses, net of reinsurance and cumulative paid claims and allocated claim adjustment expenses, net of reinsurance as at December 31, 2019 , 2018 , 2017 , 2016 2015 , 2014 , 2013 and 2012 . The loss development triangles are derived from all business written by the Company as although a limited number of contracts are written which have durations of greater than one year the contracts do not meet the definition of a long duration contract. Property Insurance Lines Incurred Claims, IBNR and Loss Adjustment Expenses, Net of Reinsurance As at December 31, 2019 Total of IBNR Plus Expected Development on Reported Claims Cumulative Number of Reported Claims For the Years Ended December 31, Accident Year Unaudited Prior Years 2012 2013 2014 2015 2016 2017 2018 2019 $ (in millions) 2012 169.8 167.9 166.6 165.5 159.9 154.0 153.0 153.0 — 6,075 2013 130.0 117.2 116.9 112.6 113.6 111.6 111.9 0.4 5,759 2014 165.4 157.3 134.2 134.9 134.1 132.6 1.5 9,989 2015 240.2 205.8 200.3 202.6 203.1 2.6 11,597 2016 238.8 249.6 244.5 245.8 7.4 10,738 2017 296.1 259.0 252.2 10.3 9,532 2018 203.7 206.3 18.4 7,913 2019 $ 127.3 42.4 5,291 Total $ 1,432.2 Property Insurance Lines Cumulative Paid Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Unaudited Prior Years Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 ($ in millions) 2012 41.3 129.1 138.7 152.7 156.8 154.3 153.6 153.6 2013 38.9 75.9 89.1 101.1 105.7 108.4 110.2 2014 40.4 86.6 114.1 123.8 127.9 129.3 2015 57.3 142.9 170.8 179.9 196.4 2016 67.0 169.0 201.6 223.7 2017 96.6 188.9 222.0 2018 62.2 161.1 2019 49.3 Total $ 1,245.6 All outstanding liabilities for 2012 and subsequent years, net of reinsurance $ 186.6 All outstanding liabilities before 2012, net of reinsurance 4.1 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 190.7 Casualty Insurance Lines Incurred Claims, IBNR and Loss Adjustment Expenses, Net of Reinsurance As at December 31, 2019 Total of IBNR Plus Expected Development on Reported Claims Cumulative Number of Reported Claims For the Years Ended December 31, Accident Year Unaudited Prior Years 2012 2013 2014 2015 2016 2017 2018 2019 $ (in millions) 2012 78.0 62.8 70.0 61.1 69.0 66.6 68.6 70.5 8.0 2,951 2013 132.9 116.5 114.9 120.4 103.4 104.6 104.8 10.8 3,239 2014 144.9 127.2 139.0 129.2 136.3 140.4 24.8 3,723 2015 203.6 223.6 186.2 203.9 236.7 38.7 4,577 2016 217.4 188.5 183.8 190.4 70.4 4,509 2017 181.6 175.0 179.0 35.3 5,022 2018 123.0 125.9 57.7 4,938 2019 $ 125.6 89.2 3,625 Total 1,173.3 Casualty Insurance Lines Cumulative Paid Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Unaudited Prior Years Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 ($ in millions) 2012 1.3 6.6 14.2 29.7 40.9 49.3 50.1 54.7 2013 2.2 25.8 39.5 53.0 68.4 80.8 85.1 2014 2.7 13.4 32.7 59.8 73.2 97.3 2015 3.2 17.1 56.6 92.9 138.8 2016 4.2 22.9 40.3 82.8 2017 3.6 23.0 53.0 2018 3.2 28.0 2019 6.4 Total $ 546.1 All outstanding liabilities for 2012 and subsequent years, net of reinsurance $ 627.2 All outstanding liabilities before 2012, net of reinsurance 42.0 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 669.2 Marine, Aviation and Energy Insurance Lines Incurred Claims, IBNR and Loss Adjustment Expenses, Net of Reinsurance As at December 31, 2019 Total of IBNR Plus Expected Development on Reported Claims Cumulative Number of Reported Claims For the Years Ended December 31, Unaudited Prior Years Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 $ (in millions) 2012 268.5 306.0 325.5 346.2 331.8 327.9 316.2 310.9 7.0 3,808 2013 320.8 333.7 342.3 325.8 332.9 346.4 345.1 5.2 4,171 2014 309.8 314.1 298.9 310.6 306.1 313.0 11.6 4,027 2015 297.3 300.3 282.5 286.5 310.0 24.9 4,030 2016 260.6 230.5 229.1 229.3 26.6 4,368 2017 210.7 201.0 207.3 17.2 5,894 2018 171.3 208.5 33.9 4,839 2019 $ 146.5 67.7 2,532 Total 2,070.6 Marine, Aviation and Energy Insurance Lines Cumulative Paid Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Unaudited Prior Years Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 ($ in millions) 2012 51.3 132.2 174.7 210.9 239.7 250.6 273.5 274.4 2013 41.5 131.6 204.9 235.3 264.7 284.3 300.4 2014 53.5 116.8 189.3 210.0 232.7 250.9 2015 44.9 123.4 174.4 194.2 222.2 2016 30.9 82.6 142.5 164.1 2017 40.2 97.7 140.3 2018 26.8 104.9 2019 $ 33.5 Total $ 1,490.7 All outstanding liabilities for 2012 and subsequent years, net of reinsurance $ 579.9 All outstanding liabilities before 2012, net of reinsurance 11.6 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 591.5 Financial and Professional Insurance Lines Incurred Claims, IBNR and Loss Adjustment Expenses, Net of Reinsurance As at December 31, 2019 Total of IBNR Plus Expected Development on Reported Claims Cumulative Number of Reported Claims For the Years Ended December 31, Unaudited Prior Years Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 $ (in millions) 2012 88.0 89.5 93.1 96.5 93.5 89.1 100.8 95.8 (1.6 ) 580 2013 105.6 100.1 104.5 101.2 100.2 91.3 90.3 7.7 572 2014 135.0 130.9 129.5 119.8 131.1 120.1 12.4 788 2015 174.2 175.6 185.6 189.8 191.0 47.7 1,077 2016 191.0 211.8 216.5 202.2 61.5 1,238 2017 206.8 183.1 187.9 70.9 1,688 2018 157.6 173.5 69.1 4,644 2019 $ 249.7 195.9 10,797 Total $ 1,310.5 Financial and Professional Insurance Lines Cumulative Paid Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Unaudited Prior Years Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 ($ in millions) 2012 22.8 39.5 50.6 59.1 65.1 70.3 79.7 84.8 2013 8.1 21.1 31.2 65.4 63.8 72.4 74.5 2014 3.0 30.7 53.5 72.2 79.7 85.5 2015 13.8 43.5 70.1 89.4 110.0 2016 15.1 71.2 102.1 130.1 2017 27.2 51.3 83.4 2018 20.3 74.8 2019 $ 27.3 Total $ 670.4 All outstanding liabilities for 2012 and subsequent years, net of reinsurance $ 640.1 All outstanding liabilities before 2012, net of reinsurance 17.3 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 657.4 Property Catastrophe and Other Property Reinsurance Incurred Claims, IBNR and Loss Adjustment Expenses, Net of Reinsurance As at December 31, 2019 Total of IBNR Plus Expected Development on Reported Claims Cumulative Number of Reported Claims For the Years Ended December 31, Unaudited Prior Years Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 $ (in millions) 2012 280.3 303.5 286.6 279.2 282.6 279.6 272.1 262.0 8.5 664 2013 216.7 199.1 189.2 178.0 176.5 173.2 170.3 0.4 822 2014 190.3 177.7 161.8 150.5 150.9 146.0 2.2 905 2015 214.5 187.3 177.2 156.7 172.0 6.5 1,031 2016 271.6 271.5 269.8 248.1 8.2 1,278 2017 557.7 534.7 516.6 10.0 1,952 2018 349.9 406.8 14.2 1,769 2019 273.8 117.4 974 $ 2,195.6 Property Catastrophe and Other Property Reinsurance Cumulative Paid Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Unaudited Prior Years Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 ($ in millions) 2012 35.7 136.0 189.1 209.3 216.8 227.9 232.4 242.5 2013 34.4 98.3 146.3 158.3 163.0 164.5 166.0 2014 37.6 101.1 127.8 137.8 141.8 140.5 2015 35.9 95.1 126.9 139.2 156.2 2016 57.0 164.2 205.4 216.4 2017 123.3 357.8 416.9 2018 122.8 320.6 2019 $ 28.5 Total $ 1,687.6 All outstanding liabilities for 2012 and subsequent years, net of reinsurance 508.0 All outstanding liabilities before 2012, net of reinsurance 20.6 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 528.6 Casualty Reinsurance Incurred Claims, IBNR and Loss Adjustment Expenses, Net of Reinsurance As at December 31, 2019 Total of IBNR Plus Expected Development on Reported Claims Cumulative Number of Reported Claims For the Years Ended December 31, Unaudited Prior Years Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 $ (in millions) 2012 233.8 232.0 243.3 234.6 231.6 232.6 241.5 244.1 34.1 1,770 2013 214.5 229.7 225.0 222.3 205.4 200.6 203.3 39.6 1,648 2014 205.0 207.7 216.2 209.6 203.2 205.9 44.3 1,732 2015 194.3 201.2 210.7 213.3 210.9 56.3 1,832 2016 233.4 245.9 245.6 255.6 89.0 1,759 2017 245.2 242.9 253.6 129.0 1,474 2018 229.2 258.7 166.9 1,051 2019 235.3 207.6 375 Total $ 1,867.4 Casualty Reinsurance Cumulative Paid Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Unaudited Prior Years Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 ($ in millions) 2012 2.2 17.7 41.9 65.3 96.2 117.4 134.1 143.8 2013 3.4 15.8 42.6 64.8 92.7 114.6 127.3 2014 2.5 13.8 37.8 60.2 86.4 107.4 2015 3.5 18.0 38.4 65.5 89.4 2016 9.3 33.6 64.2 96.3 2017 8.9 30.6 59.1 2018 7.2 33.6 2019 $ 9.2 Total $ 666.1 All outstanding liabilities for 2012 and subsequent years, net of reinsurance 1,201.2 All outstanding liabilities before 2012, net of reinsurance 401.0 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 1,602.2 Specialty Reinsurance Incurred Claims, IBNR and Loss Adjustment Expenses, Net of Reinsurance As at December 31, 2019 Total of IBNR Plus Expected Development on Reported Claims Cumulative Number of Reported Claims For the Years Ended December 31, Unaudited Prior Years Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 $ (in millions) 2012 175.8 199.2 188.3 173.9 172.3 172.9 169.5 167.1 5.4 638 2013 144.1 139.3 131.5 119.7 118.9 115.1 114.9 4.8 574 2014 152.0 140.2 132.1 123.0 125.8 124.3 8.1 621 2015 166.3 170.2 164.8 159.1 157.9 11.1 765 2016 239.3 240.3 238.4 230.8 23.2 916 2017 379.9 392.6 376.1 51.0 1,303 2018 398.4 397.5 67.3 1,282 2019 $ 476.7 154.6 1,080 Total $ 2,045.3 Specialty Reinsurance Cumulative Paid Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Unaudited Prior Years Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 ($ in millions) 2012 24.9 93.4 128.5 138.5 143.9 149.2 150.5 153.3 2013 25.0 70.8 86.8 94.1 101.1 101.1 102.0 2014 16.6 56.3 81.1 89.2 99.5 102.4 2015 17.7 56.4 104.2 122.1 131.4 2016 58.8 151.0 165.8 183.9 2017 94.8 238.9 270.9 2018 27.3 281.2 2019 $ 274.3 Total $ 1,499.4 All outstanding liabilities for 2012 and subsequent years, net of reinsurance 545.9 All outstanding liabilities before 2012, net of reinsurance 30.0 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 575.9 Reconciliation of Incurred and Paid Claims Development to total Provision for Losses and LAE Twelve Months Ended ($ in millions) Net outstanding liabilities: Insurance lines - Property insurance lines 190.7 - Casualty insurance lines 669.2 - Marine, aviation and energy insurance lines 591.5 - Financial and professional insurance lines 657.4 Total insurance lines 2,108.8 Reinsurance lines - Property catastrophe and other property reinsurance 528.6 - Casualty reinsurance 1,602.2 - Specialty reinsurance 575.9 Total reinsurance lines 2,706.7 Net loss and LAE 4,815.5 Reinsurance recoverable on unpaid losses: Insurance lines 1,772.8 Reinsurance lines 547.0 Total reinsurance recoverable on unpaid losses 2,319.8 Insurance lines other than short-duration — Unallocated claims incurred 44.0 Other reinsurance balances recoverable (1) (227.4 ) Other (0.1 ) (183.5 ) Provision for losses and LAE at the end of the year 6,951.8 ____________________ (1) Other reinsurance balances recoverable primarily include amounts that have been billed but not yet received. Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years 1 2 3 4 5 6 7 8 Insurance 15.8 % 26.3 % 16.1 % 11.7 % 8.5 % 5.7 % 4.4 % 1.7 % Reinsurance 16.0 % 29.7 % 15.3 % 8.8 % 8.1 % 5.0 % 3.2 % 3.3 % |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Aspen Holdings and Aspen Bermuda are incorporated under the laws of Bermuda. Under Bermuda law, the corporate tax rate is zero and, as a result, Aspen Holdings and Aspen Bermuda are not taxed on any Bermudian income or capital gains. In the event of any Bermudian income or capital gains taxes being imposed, Aspen Holdings and Aspen Bermuda have received an undertaking from the Bermuda Minister of Finance that such entities will be exempt from those taxes until March 31, 2035. The Company’s U.S. operating companies were subject to a U.S. federal income tax rate of 34% prior to January 1, 2018. Effective January 1, 2018, the Company’s U.S. operating companies are subject to a U.S. federal income tax rate of 21% . The reduction in U.S. federal income tax has been reflected in measuring the Company’s deferred taxes. The Company’s U.K. operating companies are taxed at the U.K. corporate tax rate of 19% , which reduced from 20% effective April 1, 2017. The U.K. corporate tax rate will decrease further to 17% effective April 1, 2020. The reduction in the U.K. corporate tax rate has been reflected in measuring the Company’s deferred taxes. Total income tax (benefit)/expense for the twelve months ended December 31, 2019 , 2018 and 2017 was allocated as follows: Twelve Months Ended December 31, 2019 2018 2017 ($ in millions) Income tax expense/(benefit) allocated to net loss $ 22.9 $ (10.2 ) $ (15.4 ) Income tax expense/(benefit) allocated to other comprehensive income 11.2 4.1 (17.4 ) Total income tax expense/(benefit) $ 34.1 $ (6.1 ) $ (32.8 ) (Loss)/income from operations before tax and tax expense/(benefit) attributable to that (loss)/income for the twelve months ended December 31, 2019 , 2018 and 2017 is provided in the tables below: Twelve Months Ended December 31, 2019 (Loss) before tax Current tax (benefit)/expense Deferred tax (benefit)/expense Total tax (benefit)/expense ($ in millions) Bermuda $ (107.6 ) $ — $ — $ — U.S. (1) (2) (60.0 ) 1.0 6.5 7.4 U.K. (3) (45.7 ) (6.7 ) 17.3 10.6 Other (4) (5.5 ) 4.0 0.9 4.9 Total $ (218.8 ) $ (1.7 ) $ 24.7 $ 22.9 Twelve Months Ended December 31, 2018 (Loss) Current tax Deferred tax Total tax ($ in millions) Bermuda $ (72.1 ) $ — $ — $ — U.S. (81.0 ) 6.1 (8.1 ) (2.0 ) U.K. (4.7 ) (12.2 ) (0.1 ) (12.3 ) Other (4) 1.8 4.4 (0.3 ) 4.1 Total $ (156.0 ) $ (1.7 ) $ (8.5 ) $ (10.2 ) Twelve Months Ended December 31, 2017 (Loss) Current tax Deferred tax Total tax ($ in millions) Bermuda $ (130.0 ) $ — $ — $ — U.S. (140.3 ) — 1.1 1.1 U.K. 15.3 14.1 (33.3 ) (19.2 ) Other (26.8 ) 3.0 (0.3 ) 2.7 Total $ (281.8 ) $ 17.1 $ (32.5 ) $ (15.4 ) ______________ (1) The $1.0 million current tax expense includes $1.0 million relating to prior years. (2) The $6.5 million deferred tax expense includes a $9.9 million valuation allowance against the losses incurred by the U.S. branch of Aspen U.K. Also included is a $3.5 million benefit arising from an unrealized gain on investments, for which an equivalent tax expense has been included in Other Comprehensive Income. (3) The $17.3 million deferred tax movement comprises of a $10.9 million credit on operating losses and a $28.2 million expense in respect of a valuation allowance against the net deferred tax assets in the U.K. subsidiaries. (4) Included in the current tax expense of $4.0 million within “Other” is $1.0 million ( December 31, 2018 — $4.4 million ) withholding tax payable in Australia in respect of reinsurance premiums payable to Aspen Bermuda by the Australian branch of Aspen U.K. As noted above, the tax rate in Bermuda, the Company’s country of domicile, is zero . Application of the statutory tax rate for operations in other jurisdictions produces a differential to the expected tax (benefit)/expense as shown in the table below. The reconciliation between the income tax expense/(benefit) and the statutory rate for the Company for the twelve months ended December 31, 2019 , 2018 and 2017 is provided in the table below: Twelve Months Ended December 31, 2019 2018 2017 Income Tax Reconciliation ($ in millions) Expected tax (benefit)/expense $ — $ — $ — Overseas statutory tax rates differential (21.2 ) (17.1 ) (41.5 ) Base erosion and anti-abuse tax (BEAT) expense 0.3 6.0 — Prior year adjustments (1) (1.7 ) 1.4 1.3 Valuation allowance (2) 42.6 7.1 (37.9 ) Impact of unrecognized tax benefits (3) — (12.8 ) 0.1 Restricted foreign tax credits 1.5 — 0.7 Australian non-resident withholding tax 1.0 4.4 0.9 Share-based payments (0.6 ) 0.2 (0.9 ) Foreign exchange — 0.1 (2.1 ) Non-deductible expenses — 0.7 0.4 Non-taxable items (0.1 ) (0.3 ) (0.9 ) Impact of changes in statutory tax rates 1.1 0.1 64.5 Total income tax expense/(benefit) $ 22.9 $ (10.2 ) $ (15.4 ) ________________ (1) The submission dates for filing income tax returns for the Company’s U.S. and U.K. operating subsidiaries are after the submission date of this report. Accordingly, the final tax liabilities may differ from the estimated tax expense included in this report and may result in prior year adjustments being reported. The prior period adjustments for the twelve months ended December 31, 2019 , 2018 and 2017 predominantly relate to the determination of results under U.K. GAAP upon which the U.K. tax returns are based. These items can only be ultimately determined after this report is filed. (2) The 2019 valuation allowance includes $9.9 million relating to the losses incurred by the U.S. branch of Aspen U.K. and $28.2 million relating to deferred tax assets in U.K. subsidiaries. (3) In 2018, the $12.8 million benefit relates to the successful conclusion of a U.K. tax inquiry which enabled the release of a provision we had been holding against the potential disallowance of a prior year adjustment. Unrecognized tax benefits . An unrecognized tax benefit of $11.0 million relating to tax deductions for certain expenses was released during the year ended December 31, 2018 following the completion of the U.K. tax authority review. Twelve Months Ended December 31, 2019 2018 ($ in millions) Unrecognized tax benefits balance at January 1 $ — $ 11.2 Foreign exchange re-translation — (0.2 ) Prior year reductions $ — (11.0 ) Unrecognized tax benefits balance at December 31 $ — $ — The Company accrues interest and penalties related to an underpayment of income taxes, if applicable, as income tax expense. The Company does not believe it will be subject to any penalties in any open tax years and has not accrued any such amounts for the twelve months ended December 31, 2019 ( December 31, 2018 — $ Nil ). In 2018, interest of $1.8 million was released in respect of the tax position for the year 2011. Income tax returns that have been filed by the Company’s U.S. operating subsidiaries are subject to examination for 2016 and later tax years. The Company’s U.K. operating subsidiaries’ income tax returns are subject to examination for 2018 and later tax years. The tax effects of temporary differences and carryforwards that give rise to deferred tax assets and deferred tax liabilities are presented in the following table as at December 31, 2019 and 2018 : As at December 31, 2019 2018 ($ in millions) Deferred tax assets: Share-based payments $ 0.3 $ 2.2 Operating loss carryforwards 121.5 126.4 Net loss reserves and loss adjustment expenses 5.0 5.0 Unrealized losses on investments — 0.8 Accrued expenses 7.1 7.9 Foreign tax credit carryforwards — 3.8 Unearned premiums 15.3 15.5 Deferred policy acquisition costs 0.1 — Office properties and equipment 16.8 11.1 Operating lease liabilities 21.5 3.3 Other temporary differences 6.1 — Total gross deferred tax assets 193.7 176.0 Less valuation allowance (149.2 ) (111.9 ) Net deferred tax assets $ 44.5 $ 64.1 Deferred tax liabilities: Equalization provision reserves $ — $ — Unrealized (gains) on investments (2.7 ) — Intangible assets (1.6 ) (2.5 ) Deferred policy acquisition costs (16.4 ) (18.5 ) Quota share losses — (0.6 ) Loss portfolio transfer costs — (6.1 ) Operating lease assets (19.9 ) — Other temporary differences (3.9 ) (1.0 ) Total gross deferred tax (liabilities) (44.5 ) (28.7 ) Net deferred tax assets $ — $ 35.4 Deferred tax liabilities and assets represent the tax effect of temporary differences between the value of assets and liabilities for financial statement purposes and such values as measured by U.K. and U.S. tax laws and regulations. Deferred tax assets and liabilities from the same tax jurisdiction have been netted off resulting in assets and liabilities being recorded as deferred tax assets or liabilities in the consolidated balance sheet. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences and carry forwards become deductible or creditable. Management considers the scheduled reversal of existing taxable temporary differences, projected future taxable income, and tax-planning strategies in making this assessment. As at December 31, 2019 , the Company had incurred cumulative net operating losses carried forward for U.S. federal income tax purposes of $606.8 million ( 2018 — $599.4 million ) and net operating losses carried forward for U.K. corporate tax purposes of $93.2 million ( 2018 — $59.3 million ). Of the U.S. net operating losses, $24.9 million is not accessible due to a §382 limitation arising from a change in ownership. Of the remaining $581.9 million that are available to offset future U.S. federal taxable income, $534.5 million will expire between 2026 and 2039 and $47.4 million are available to offset future U.S. federal taxable income over an indefinite period. The U.K. net operating losses are available to offset future U.K. corporate income over an indefinite period. For U.S. federal income tax purposes, the Company also has capital loss carryforwards of $0.5 million ( 2018 — $0.3 million ) which will expire between 2023 and 2024 and charitable contribution carryforwards of $1.1 million ( 2018 — $0.8 million ) with expiry periods between 2019 and 2024 . For U.K. corporate tax purposes, the Company has capital loss carryforwards of $3.8 million which is available to offset future U.K. capital gains over an indefinite period. A full valuation allowance of $117.4 million ( 2018 — $108.2 million ) on U.S. deferred tax assets (which includes these loss carryforwards) has been recognized at December 31, 2019 as management believes that it is probable that a tax benefit will not be realized. The increase in this portion of the valuation allowance totals $9.2 million ( 2018 — $7.1 million increase) with $9.2 million ( 2018 — $7.1 million increase) recorded in the consolidated income statement and $ Nil ( 2018 —$ Nil ) recorded in other comprehensive income. A valuation allowance of $31.8 million ( 2018 — $3.7 million ) has been established against U.K. deferred tax assets. The increase in this portion of the valuation allowance totals $28.2 million ( 2018 — $ Nil ) with $28.2 million ( 2018 — $ Nil ) recorded in the consolidated income statement and $ Nil ( 2018 — $ Nil ) recorded in other comprehensive income. The U.K. and U.S. valuation allowance combined total is $149.2 million ( 2018 — $111.9 million ). Aspen U.K. business includes income connected with a U.S. trade or business and therefore Aspen U.K. has a branch for U.S. tax purposes (“U.S. Branch”). The U.S. Branch could become subject to an additional branch profits tax if earnings are repatriated to the Aspen U.K. head office or upon termination of the U.S. branch. However, based on the plans currently in place, the U.S. Branch profits are being, and Aspen U.K. intends they will continue to be, indefinitely reinvested in the U.S. Branch such that there is no branch profits tax liability arising in the current period or in the foreseeable future. Furthermore, based on the cumulative earnings position as at December 31, 2019 , $ Nil ( 2018 — $ Nil ) branch profits tax liability would be expected to arise. Accordingly, the Company has determined that no deferred tax liability for branch profits tax has been recognized as permitted by ASC 740. |
Capital Structure
Capital Structure | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Capital Structure | Capital Structure The following table provides a summary of the Company’s authorized and issued share capital as at December 31, 2019 and 2018 : As at December 31, 2019 At December 31, 2018 Number $ in Thousands Number $ in Thousands Authorized share capital: Ordinary Shares $0.01 per share ( 2018 — 0.15144558¢ per share 70,000,000 700 969,629,030 1,469 Non-Voting Shares 0.15144558¢ per share — — 6,787,880 10 Preference Shares 0.15144558¢ per share 30,000,000 45 100,000,000 152 Total authorized share capital 745 1,631 Issued share capital: Issued ordinary shares $0.01 per share ( 2018 — 0.15144558¢ per share 60,395,839 604 59,743,156 90 Issued 5.95% preference shares of 0.15144558¢ each with a liquidation preference of $25 per share 11,000,000 17 11,000,000 17 Issued 5.625% preference shares of 0.15144558¢ each with a liquidation preference of $25 per share 10,000,000 15 10,000,000 15 Issued 5.625% preference shares of 0.15144558¢ represented by depositary shares, each with a liquidation preference of $25 per share (1) 10,000 — — — Total issued share capital 636 122 ______________ (1) Each depositary share represents a 1/1000 th interest in a share of the 5.625% preference shares. Additional paid-in capital as at December 31, 2019 was $1,201.7 million ( December 31, 2018 — $967.5 million ). Included within additional paid-in capital is the aggregate liquidation preferences of the Company’s preference shares of $775.0 million less issue costs of $21.5 million ( December 31, 2018 — $525.0 million less issue costs of $13.1 million ). (a) Ordinary Shares The following table summarizes transactions in the Company’s ordinary shares during the years ended December 31, 2019 and 2018 : Number of Ordinary Shares 2019 2018 Ordinary shares of 0.015144558c per share Ordinary shares in issue at the beginning of the year 59,743,156 59,474,085 Ordinary shares issued to employees under the 2013 share incentive plan and/or 2008 share purchase plan 144,269 229,318 Ordinary shares issued to non-employee directors 6,993 39,753 Ordinary shares canceled (59,894,418 ) — Total ordinary shares of 0.015144558c per share in issue — 59,743,156 Ordinary shares of $0.01 per share New ordinary shares issued of $0.01 per share 60,395,839 Ordinary shares issued at the end of the year 60,395,839 Authorized and Issued Ordinary Shares. The Company’s authorized share capital after the Merger, is 745,434 divided into 70,000,000 ordinary shares of par value $0.01 and 30,000,000 preference shares of par value 0.15144558¢ . Immediately prior to the effective time of the Merger, Parent held 60,395,839 of ordinary shares of Merger Sub, par value $0.01 . Pursuant to the terms of the Merger Agreement, each common share of Merger Sub issued and outstanding immediately prior to the effective time of the Merger was canceled and converted into and became one duly authorized, validly issued, fully paid and non-assessable ordinary share, par value of $0.01 , of the Company, as the surviving company. The Company’s ordinary shares were canceled and ceased trading on the NYSE upon completion of the Merger. The Company did not acquire any ordinary shares for the twelve months ended December 31, 2019 . (b) Preference Shares Preference Shares Issuance. On May 2, 2013, we issued 11,000,000 5.950% Fixed-to-Floating Rate Perpetual Non-Cumulative Preference Shares, with a liquidation preference of $25 per share (the “ 5.950% Preference Shares”) for an aggregate amount of $275.0 million . Our 5.950% Preference Shares are listed on the NYSE under symbol “AHLPRC.” On September 20, 2016, the Company issued 10,000,000 shares of 5.625% Perpetual Non-Cumulative Preference Shares (the “ 5.625% Preference Shares”). The 5.625% Preference Shares have a liquidation preference of $25 per share. Net proceeds were $293.2 million , consisting of $250.0 million of total liquidation preference less $8.7 million of issuance expenses. The Company used $133.2 million of the net proceeds from the offering to redeem all of the Company’s outstanding 7.401% Preference Shares (defined below) and the remainder were used in the redemption of the Company’s 7.250% Preference Shares (defined below) for $160.0 million . The 5.625% Preference Shares rank equally with preference shares previously issued by the Company and have no fixed maturity date. The Company may redeem all or a portion of the 5.625% Preference Shares at a redemption price of $25 per share on or after January 1, 2027. The 5.625% Preference Shares are listed on the NYSE under the symbol “AHL PRD”. On August 13, 2019, the Company issued 10,000,000 Depositary Shares, each of which represents 1/1000 th interest in a share of the newly designated 5.625% Perpetual Non-Cumulative Preference Shares (the “Depositary Shares”). The Depositary Shares have a liquidation preference of $25 per share. Net proceeds were $241.6 million , comprising $250.0 million of total liquidation preference less $8.4 million of issuance expenses. The Depositary Shares are listed on the NYSE under the symbol “AHL PRE”. Preference Shares Redemption. On November 3, 2016, the Company issued a notice of redemption in connection with all of its issued and outstanding 7.401% Perpetual Non-Cumulative Preference Shares (the “ 7.401% Preference Shares”) (NYSE: AHLPRA). The redemption took place on January 3, 2017 and was conducted pursuant to the terms of the certificate of designation, dated November 15, 2006, governing the 7.401% Preference Shares. Each holder of a 7.401% Preference Share received $25 per 7.401% Preference Share, representing an aggregate amount of $133.2 million , plus all declared and unpaid dividends to the date of redemption. On May 8, 2017, the Company issued a notice of redemption in connection with all of its issued and outstanding 7.250% Perpetual Non-Cumulative Preference Shares (the “ 7.250% Preference Shares”) (NYSE: AHLPRB). The redemption took place on July 3, 2017 and was conducted pursuant to the terms of the certificate of designation, dated April 11, 2012, governing the 7.250% Preference Shares. Each holder of a 7.250% Preference Share received $25 per 7.250% Preference Share, representing an aggregate amount of $160.0 million , plus all declared and unpaid dividends to the date of redemption. |
Statutory Requirements and Divi
Statutory Requirements and Dividends Restrictions | 12 Months Ended |
Dec. 31, 2019 | |
Text Block [Abstract] | |
Statutory Requirements and Dividends Restrictions | Statutory Requirements and Dividends Restrictions As a holding company, Aspen Holdings relies on dividends and other distributions from its Operating Subsidiaries to provide cash flow to meet ongoing cash requirements, including any future debt service payments and other expenses, and to pay dividends, if any, to our preference and ordinary shareholders. Aspen Holdings must comply with the provisions of the Bermuda Companies Act 1981, as amended, (the “Companies Act”) regulating the payment of dividends and distributions. As at December 31, 2019 , there were no restrictions under Bermuda law or the law of any other jurisdiction on the payment of dividends from retained earnings by Aspen Holdings. The ability of the Company’s Operating Subsidiaries to pay the Company dividends or other distributions is subject to the laws and regulations applicable to each jurisdiction, as well as the Operating Subsidiaries’ need to maintain capital requirements adequate to maintain their insurance and reinsurance operations and their financial strength ratings issued by independent rating agencies. The company law of England and Wales prohibits Aspen U.K. or AUL from declaring a dividend to its shareholders unless it has “profits available for distribution.” The determination of whether a company has profits available for distribution is based on its accumulated realized profits and other distributable reserves less its accumulated realized losses. While the U.K. insurance regulatory laws impose no statutory restrictions on a general insurer’s ability to declare a dividend, the rules of the Prudential Regulation Authority (the “PRA”) require each insurance company within its jurisdiction to maintain its solvency margin at all times. In line with common market practice for regulated institutions, the PRA previously requested that it be afforded with the opportunity to provide a “non-objection” prior to all future dividend payments made by Aspen U.K. In 2017, the PRA stated that they no longer routinely require Aspen U.K. to apply for a non-objection to dividends provided such dividend payment and Aspen U.K.’s resulting capital position are within Aspen U.K.’s board-approved solvency capital risk appetite. As at December 31, 2019 , Aspen U.K. had an accumulated balance of retained losses of approximately $243.0 million and AUL had an accumulated balance of retained losses of approximately £84.8 million . Aspen U.K. held a capital contribution reserve of $470.0 million as at December 31, 2019 which, under certain circumstances, could be distributable. Aspen Bermuda must comply with the provisions of the Companies Act regulating the payment of dividends and distributions. There were no significant restrictions under company law on the ability of Aspen Bermuda to pay dividends funded from its accumulated balances of retained income as at December 31, 2019 . Aspen Bermuda may not in any financial year pay dividends which would exceed 25% of its total statutory capital and surplus, as shown on its statutory balance sheet in relation to the previous financial year, unless it files with the BMA a solvency affidavit at least seven days in advance. As at December 31, 2019 , 25% of Aspen Bermuda’s statutory capital and surplus amounted to $345.2 million . Aspen Bermuda must also obtain the prior approval of the BMA before reducing its total statutory capital as set out in its previous year’s financial statements by 15% or more. Under both North Dakota and Texas law, insurance companies may only pay dividends out of earned surplus as distinguished from contributed surplus. As such, Aspen Specialty and AAIC could not pay a dividend as at December 31, 2019 . Actual and required statutory capital and surplus for the principal operating subsidiaries of the Company, excluding its Lloyd’s syndicate, as at December 31, 2019 and December 31, 2018 were estimated as follows: As at December 31, 2019 U.S. Bermuda U.K. ($ in millions) Required statutory capital and surplus $ 404.0 $ 788.4 $ 782.0 Actual statutory capital and surplus $ 502.0 $ 1,380.6 $ 841.9 As at December 31, 2018 U.S. Bermuda U.K. ($ in millions) Required statutory capital and surplus $ 351.0 $ 801.9 $ 772.1 Actual statutory capital and surplus $ 543.0 $ 1,575.5 $ 857.9 As the sole corporate member of our Lloyd’s Syndicate, AUL was required to maintain Funds at Lloyd’s of $491.9 million as at December 31, 2019 . As at December 31, 2019 , AUL had total funds at Lloyd’s of $516.9 million of which $482.3 million was provided by Aspen Bermuda. The Bermuda Monetary Authority is the group supervisor of the Company. The laws and regulations of Bermuda require that the Company maintain a minimum amount of group statutory capital and surplus based on the enhanced capital requirement using the group standardized risk-based capital model of the Bermuda Monetary Authority. The Company is also subject to an early-warning level based on 120% of the enhanced capital requirement which may trigger additional reporting requirements or other enhanced oversight. The statutory capital requirements of our Operating Subsidiaries are set out above. To the extent that these requirements are met, we do not anticipate any dividend restrictions arising as a result of the Company’s enhanced capital requirement. For more information on the Company’s regulatory requirements, refer to Item 4, “Information on the Company — Regulatory Matters” above. |
Dividends
Dividends | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Dividends | Dividends. On February 28, 2020, the Company’s Board of Directors declared the following dividends: Dividend Payable on: Record Date: 5.950% Preference Shares (AHL PRC) $ 0.3719 April 1, 2020 March 15, 2020 5.625% Preference Shares (AHL PRD) $ 0.3516 April 1, 2020 March 15, 2020 5.625% Preference Shares, represented by Depositary Shares (AHL PRE) (1) $ 351.56 April 1, 2020 March 15, 2020 ______________ (1) The newly-designated 5.625% Preference Shares are represented by Depositary Shares, each representing a 1/1000 th interest in a share of the 5.625% Preference Shares. The dividend paid per Depositary Share is likewise 1/1000 th of the declared dividend, equivalent to $0.35156 per Depositary Share. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Retirement Plans | Retirement Plans The Company operates defined contribution retirement plans for the majority of its employees at varying rates of their salaries up to a maximum of 20.0% . Total contributions by the Company to the retirement plans were $12.9 million in the twelve months ended December 31, 2019 ( 2018 — $16.0 million , 2017 — $16.3 million ). |
Share-Based Payments and Long-T
Share-Based Payments and Long-Term Incentive Plan | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share Based Payments | Share-Based Payments and Long-Term Incentive Plan Pre-Merger. The Company had previously issued options and other equity incentives under the 2003 Share Incentive Plan, the 2013 Share Incentive Plan, the 2016 Stock Incentive Plan for Non-Employee Directors, the Amended 2006 Stock Option Plan, the 2008 Employee Share Purchase Plan (“ESPP”) and the Amended 2008 Sharesave Scheme. When options were exercised or other equity awards (excluding phantom shares) vested, new ordinary shares were issued as the Company did not hold treasury shares. Phantom shares were settled in cash in lieu of ordinary shares upon vesting. Immediately prior to the Merger, the Company took all actions necessary to enable and require existing participants in the ESPP to utilize their accumulated payroll deductions to purchase newly issued ordinary shares in accordance with the terms of the ESPP and, immediately after such purchases were completed, the Company terminated the ESPP. In accordance with the Merger Agreement, at the effective time of the Merger each issued and outstanding ordinary share of the Company (other than any ordinary shares that were owned by any subsidiary of the Company or owned by Parent, Merger Sub or any subsidiary thereof) was automatically canceled and converted into the right to receive $42.75 in cash, without interest and less any required tax withholdings (the “Merger Consideration”). In addition, at the effective time of the Merger, all outstanding restricted share units and phantom shares, in each case, that were subject to performance-based vesting requirements, to the extent not vested, vested in full (with respect to any performance period that had been completed, determined based on actual level of performance achieved, and, with respect to any performance period that had not been completed, determined based on achievement of performance-based vesting requirements at target payout levels) and were cashed out based on the per share Merger Consideration. All other outstanding restricted share unit awards, to the extent not vested, vested in full and were cashed out based on the per share Merger Consideration plus a cash amount for any accrued but unpaid dividends in respect of such awards prior to the Effective Time. As a result, the total unrecognized share-based compensation expense related to the unvested awards was expensed and no share-based awards remain outstanding at December 31, 2019 in relation to Performance, Phantom or Restricted Share Units that were awarded pre-merger. Post-Merger. The Company implemented a new long-term incentive scheme, under which annual awards are split equally between Performance Units and Exit Units. Performance Units vest after two years subject to the Company achieving pre-determined growth in book value per share targets. Exit Units vest upon change of control (Sale or IPO) and achieving pre-determined multiplies of invested capital return targets. Both Performance Units and Exit Units are cash-based awards. The Company’s total share-based compensation / long-term incentive plan expense for the twelve months ended December 31, 2019 was $3.5 million , which related primarily to the vesting of the share-based awards at the effective time of the Merger totaling $21.6 million , offset by $21.6 million compensation funded by Parent under the terms of the Merger Agreement for the settlement of these previously unvested share-based compensation awards, a charge of $0.8 million in relation to Performance Units, $0.8 million in relation to previously awarded deferred cash awards and $1.9 million in relation to other share-based compensation expense. An income tax benefit of $0.3 million has been recognized. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | Intangible Assets and Goodwill The following table provides a summary of the Company’s intangible assets for the twelve months ended December 31, 2019 and 2018 : Twelve Months Ended December 31, 2019 Beginning of the Year Additions/(Disposals) Amortization Impairment End of the Year ($ in millions) Intangible Assets Trademarks $ 2.5 $ — $ (0.6 ) $ — $ 1.9 Agency Relationships 1.8 — (0.6 ) — 1.2 Renewal Rights 1.0 — (0.1 ) (0.9 ) — Non-compete Agreements 0.4 — (0.2 ) — 0.2 Insurance Licenses 16.7 — — — 16.7 Goodwill 3.9 — — — 3.9 Total $ 26.3 $ — $ (1.5 ) $ (0.9 ) $ 23.9 Twelve Months Ended December 31, 2018 Beginning of the Year Additions/(Disposals) Amortization Impairment End of the Year ($ in millions) Intangible Assets Trademarks $ 2.9 $ — $ (0.4 ) $ — $ 2.5 Agency Relationships 2.3 — (0.5 ) — 1.8 Renewal Rights 1.4 — (0.4 ) — 1.0 Non-compete Agreements 0.7 — (0.3 ) — 0.4 Insurance Licenses 16.7 — — — 16.7 Goodwill 3.9 — — — 3.9 Total $ 27.9 $ — $ (1.6 ) $ — $ 26.3 Aspen’s intangible assets relate to trademarks, contracts to sell products through independent broker and agents (Agency Relationships), an agreement for renewal rights with Liberty Specialty Markets Limited, non-compete agreements and licenses to trade in the U.S. and U.K. In addition, Aspen has recognized goodwill of $2.1 million on the acquisition of equity voting interest of Blue Waters, a specialist marine insurance agency in October 2016 and of $1.8 million on the purchase in January 2017 of 49% share of Digital Re, a digital risk and specialty insurer. The “ Aspen” trademark, valued at $1.4 million , goodwill and insurance licenses are considered to have an indefinite life and are tested annually for impairment or when events or changes in circumstances indicate that these assets might be impaired. For the years ended December 31, 2019 and December 31, 2018 , the Company performed its annual qualitative assessment and determined that it was not more likely than not that these were impaired. The remaining intangible assets, including the “Blue Waters” trademark valued at $0.5 million , were estimated to have an economic useful life of 5 years. The Company amortizes the estimated value of these assets over their estimated useful life which is included as an expense in the income statement. |
Operating Leases (Notes)
Operating Leases (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lessee, Operating Leases | Operating Leases As at December 31, 2019 , the Company has recognized right-of-use operating lease assets of $93.5 million , net of impairment and operating lease liabilities of $113.2 million . Right-of-use operating lease assets comprise primarily of leased office real estate globally and other assets. For all office real estate leases, rent incentives, including reduced-rent and rent free periods and contractually agreed rent increases during the lease term, have been included when determining the present value of future cash flows. As part of the Company’s operating effectiveness and efficiency program, we are consolidating our office space. Where negotiations are either in advanced stages of discussion and it is probable that the sub-lease transactions will be completed, or we have agreed terms to sub-lease our office space, we have assessed our right-of-use lease assets for impairment and have recognized a $12.3 million charge within the period. The Company believes its office space is sufficient to conduct its operations for the foreseeable future in these locations. The Company has no lease transactions between related parties. Comparatives have not been presented due to 2019 being the first year of adoption of ASU 2016-2, “ Leases (Topic 842) ”. Operating lease charge. The following table summarizes the operating lease charge for the twelve months ended December 31, 2019 : For the Twelve Months Ended December 31, 2019 ($ in millions) Amortization charge on right-of-use operating leased assets $ 13.4 Interest on operating lease liabilities 4.6 Operating lease charge $ 18.0 Lease Liabilities. The following table summarizes the maturity of lease liabilities under non-cancellable leases as of December 31, 2019 : December 31, 2019 ($ in millions) Operating leases — maturities 2020 $ 17.7 2021 16.4 2022 13.0 2023 12.2 2024 11.7 Later years 73.6 Total minimum lease payments $ 144.6 Less imputed interest (31.4 ) Total lease liabilities $ 113.2 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions In the normal course of the Company’s underwriting activities, the Company has entered into insurance and reinsurance agreements with companies affiliated with the Company. In addition to the material related party contracts listed below, we also have a number of contracts with Apollo affiliates the net cost of which are individually and the aggregate less than $50k . Relationships and Related Party Transactions with Apollo or its Affiliates Apollo’s indirect subsidiary, Apollo Asset Management Europe PC LLP (“AAME”), serves as the investment manager for certain of the Company’s subsidiaries, and Apollo’s indirect subsidiary, Apollo Management Holdings, L.P. (“AMH”), provides the Company with management consulting services and advisory services. Additionally, certain employees of Apollo and its affiliates serve on the Board. A description of relationships we have with Apollo and its affiliates and transactions that have existed or that we have entered into with Apollo and its affiliates are described below. Investment Management Relationships AAME serves as the Company’s investment manager and the investment manager for certain of our subsidiaries, and provides centralized asset management investment advisory and risk services for the portfolio of our investments and investments of such subsidiaries pursuant to the investment management agreements (“IMAs”) that have been entered into with AAME. AAME is integrated into the Apollo investment platform and provides the Company with access to Apollo’s investment expertise and fully-built infrastructure without the burden of incurring the development and maintenance costs of building an in-house investment asset manager with the capabilities of Apollo/AAME. AAME is registered in England and Wales and is authorized and regulated by the Financial Conduct Authority in the United Kingdom under the Financial Services and Markets Act 2000 and the rules promulgated thereunder for the primary purpose of providing a centralized asset management and risk function to European clients in the financial services and insurance sectors. AAME has necessary permissions to engage in certain specified regulated activities including providing investment advice, undertaking discretionary investment management and arranging deals in relation to certain types of investment. In addition, pursuant to the IMAs, AAME may engage sub-advisors or delegates to provide certain of the investment advisory and management services to our subsidiaries. In this regard, AAME is able to leverage its relationships with other Apollo-affiliated investment advisors in a sub-advisory capacity, pursuant to which AAME has mandated its affiliates, Apollo Management International LLP (“AMI”) and Apollo Capital Management L.P. (“AMC”), to invest in asset classes in which they have investment expertise and sourcing capabilities, such as middle market loans, commercial mortgage loans, structured products and short term secured investments. Pursuant to the IMAs, all sub-advisors and delegates are ultimately overseen by AAME to ensure they are appropriate for the business and consistent with the investment strategy of the Aspen Group and such sub-advisory delegations are revocable by AAME. IMAs — U.S., Bermuda and U.K. In April 2019, following the completion of the Merger, AAME was engaged as the investment advisor for certain of our subsidiaries in the U.S., Bermuda and U.K. The assets of those subsidiaries are managed by AAME and certain affiliates of AAME through a sub-advisory arrangement. Under each of the IMAs, AAME will be paid an annual investment management fee (the “Management Fee”) which will be based on a cost-plus structure. The “cost” is comprised of the direct and indirect fees, costs, expenses and other liabilities arising in or otherwise connected with the services provided under the IMAs. The “plus” component will be a mark-up in an amount of up to 25% determined based on an applicable transfer pricing study. The Management Fee will be subject to certain maximum threshold levels, including an annual fee cap of 15 bps of the total amount of investable assets. Affiliated sub-advisors, including AMI and AMC, will also earn additional fees for sub-advisory services rendered. Termination of Investment Management or Advisory Agreements with AAME The IMAs have no stated term and may be terminated by either AAME or the relevant subsidiary, as applicable, upon 60 days ’ notice at any time or when required by such party’s regulator or by applicable law. In addition, AAME may terminate the IMAs immediately upon notice if the implementation of any amendments to the applicable investment guidelines is impossible for, or cannot reasonably be expected of, AAME. Such termination rights may adversely affect the Company’s investment results. Third Party Sub-Advisory Agreements In the limited instances in which AAME desires to invest in asset classes for which neither AAME nor Apollo possesses the investment expertise or sourcing abilities required to manage the assets, or in instances in which AAME makes the determination that it is more effective or efficient to do so, AAME may mandate third-party sub-advisors to invest in such asset classes. Pursuant to IMAs, the Company’s subsidiaries will be responsible for fees paid to such sub-advisors. Management Consulting Agreement As previously disclosed, the Company entered into a Management Consulting Agreement, dated March 28, 2019 (the “Management Consulting Agreement”), with AMH. Pursuant to the Management Consulting Agreement, AMH will provide us with management consulting and advisory services related to the business and affairs of the Company and its subsidiaries and we will pay to AMH in consideration for its services under the Management Consulting Agreement an annual management consulting fee equal to the greater of (i) 1% of the consolidated net income of the Company and its subsidiaries for the applicable fiscal year, and (ii) $5 million . The Management Consulting Agreement is effective February 15, 2019 (the “Commencement Date”) and has an initial term period of eight years from the Commencement Date. The Management Consulting Agreement will be automatically extended for an additional 12 -months term on each of the eight -year and nine -year anniversary of the Commencement Date absent contrary notice by either party given not less than 30 days prior to such anniversary date. The Management Consulting Agreement will be automatically terminated on the occurrence of the consummation of any transaction or series of transactions, whether or not related, as a result of which New Holders (as defined in the Management Consulting Agreement) become the beneficial owner, directly or indirectly, of more than ninety percent of the ordinary shares or other common equity and voting securities of the Company and its subsidiaries. 2019 IMA and Management Consulting Fees During the year ended December 31, 2019 , the Company recognized IMA fees of $3.5 million , of which $2.2 million remains payable to AAME at year end. During the year ended December 31, 2019 , the Company recognized Management Consulting fees of $4.4 million , of which $1.3 million remains payable to AMH at year end. Other Payables to Related Parties As at year end December 31, 2019 , the Company had an intercompany payable balance of $18.1 million , due to its parent, Highlands Holdings Ltd. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingent Liabilities (a) Restricted assets The Company’s subsidiaries are obliged by the terms of its contractual obligations to U.S. policyholders and by obligations to certain regulatory authorities to facilitate issue of letters of credit or maintain certain balances in trust funds for the benefit of policyholders. The following table details the forms and value of Company’s material restricted assets as at December 31, 2019 and 2018 : As at December 31, 2019 At December 31, 2018 ($ in millions, except percentages) Regulatory trusts and deposits: Affiliated transactions $ 754.9 $ 1,033.9 Third party 2,766.6 2,511.7 Letters of credit / guarantees (1) 635.4 771.1 Other investments — real estate fund 111.4 102.5 Total restricted assets $ 4,268.3 $ 4,419.2 Total as percent of investable assets (2) 54.4 % 56.4 % _______________ (1) As at December 31, 2019 , the Company had pledged funds of $635.4 million ( December 31, 2018 — $771.1 million ) as collateral for the secured letters of credit. (2) Investable assets comprise total investments, cash and cash equivalents, accrued interest, receivables for securities sold and payables for securities purchased. Real Estate Fund. On December 20, 2017, the Company committed $100.0 million as a limited partner to a real estate fund. The investment objective of the fund is to achieve attractive risk-adjusted returns through the acquisition of income producing, high quality assets in gateway cities located in the U.S. and Canada in the office, retail, industrial and multifamily sectors of the real estate market. On May 1, 2018, the Company received a demand for an initial capital call of $86.2 million and the capital call on May 10, 2018. On September 19, 2018, the Company received a demand for the final capital call of $13.8 million and paid the capital on September 28, 2018. Investments in the real estate fund may be redeemed on a quarterly basis with 90 days’ notice subject to available cash in the fund once the lock-up period ends two years after the capital call. If sufficient cash is not available then all requested redemptions will be made on a pro rata basis. If a redemption request has not been met in full, as of such calendar quarter, the remaining portion of the request will be redeemed in subsequent quarters. There are no assurances as to when the Company may be able to withdraw, in whole or in part, its redemption request from the fund. A lock-up period is the initial amount of time an investor is contractually required to remain invested before having the ability to redeem. On December 23, 2019, the Company committed $5.0 million as an equity investment in the holding company of a multi-line reinsurer. The strategy for the multi-line reinsurer is to combine a diversified reinsurance business, focused primarily on long-tailed lines of property and casualty business and, potentially to a lesser extent, life business, with a diversified investment strategy. On December 27, 2019, the Company received a demand for an initial capital call of $0.2 million and paid the capital on January 15, 2020. The Company’s current arrangements with our bankers for the issue of letters of credit require us to provide collateral in the form of cash and investments for the full amount of all secured and undrawn letters of credit that are outstanding. We monitor the proportion of our otherwise liquid assets that are committed to trust funds or to the collateralization of letters of credit. As at December 31, 2019 and 2018 , these funds amounted to approximately 54.4% of the $7.8 billion and approximately 56.4% of the $7.8 billion of investable assets held by the Company, respectively. We do not consider that this unduly restricts our liquidity at this time. For more information on our credit facilities and long-term debt arrangements, refer to Note 23, “Credit Facility and Long-term Debt” of these consolidated financial statements. Funds at Lloyd’s. AUL operates at Lloyd’s as the corporate member for Syndicate 4711. Lloyd’s determines Syndicate 4711’s required regulatory capital principally through the syndicate’s annual business plan. Such capital, called Funds at Lloyd’s, consists of investable assets as at December 31, 2019 in the amount of $513.1 million ( 2018 — $503.2 million ). The amounts provided as Funds at Lloyd’s will be drawn upon and become a liability of the Company in the event of Syndicate 4711 declaring a loss at a level that cannot be funded from other resources, or if Syndicate 4711 requires funds to cover a short term liquidity gap. The amount which the Company provides as Funds at Lloyd’s is not available for distribution to the Company for the payment of dividends. Aspen Managing Agency Limited, the managing agent to Syndicate 4711, is also required by Lloyd’s to maintain a minimum level of capital which as at December 31, 2019 was £0.4 million ( December 31, 2018 — £0.4 million ). This is not available for distribution by the Company for the payment of dividends. U.S. Reinsurance Trust Fund. For its U.S. reinsurance activities, Aspen U.K. has established and must retain a multi-beneficiary U.S. trust fund for the benefit of its U.S. cedants so that they may take financial statement credit without the need to post cedant-specific security. The minimum trust fund amount is $20.0 million plus an amount equal to 100% of Aspen U.K.’s U.S. reinsurance liabilities, which were $1,374.4 million as at December 31, 2019 and $1,311.4 million as at December 31, 2018 . As at December 31, 2019 , the balance (including applicable letter of credit facilities) held in the trust was $1,395.2 million ( 2018 — $1,336.4 million ). Aspen Bermuda has also established and must retain a multi-beneficiary U.S. trust fund for the benefit of its U.S. cedants so that they may take financial statement credit without the need to post cedant-specific security. The minimum trust fund amount is $20.0 million plus an amount equal to 100% of Aspen Bermuda’s liabilities to its U.S. cedants which was $427.7 million and $647.8 million as at December 31, 2019 and 2018 , respectively. As at December 31, 2019 , the balance held in the U.S. trust fund and other Aspen Bermuda trusts was $846.2 million ( 2018 — $1,112.4 million ). U.S. Surplus Lines Trust Fund. Aspen U.K. and Syndicate 4711 have also established a U.S. surplus lines trust fund with a U.S. bank to secure liabilities under U.S. surplus lines policies. The balance held in trust as at December 31, 2019 was $215.5 million ( 2018 — $198.8 million ). U.S. Regulatory Deposits. As at December 31, 2019 , Aspen Specialty had a total of $6.1 million ( 2018 — $6.0 million ) on deposit with six U.S. states in order to satisfy state regulations for writing business in those states. AAIC had a further $6.7 million ( 2018 — $6.1 million ) on deposit with twelve U.S. states. Canadian Trust Fund. Aspen U.K. has established a Canadian trust fund with a Canadian bank to secure a Canadian insurance license. As at December 31, 2019 , the balance held in trust was CAD $155.4 million ( 2018 — CAD $152.7 million ). Australian Trust Fund. Aspen U.K. has established an Australian trust fund with an Australian bank to secure policyholder liabilities and as a condition for maintaining an Australian insurance license. As at December 31, 2019 , the balance held in trust was AUD $226.9 million ( 2018 — AUD $209.3 million ). Swiss Trust Fund. Aspen U.K. has established a Swiss trust fund with a Swiss bank to secure policyholder liabilities and as a condition for maintaining a Swiss insurance license. As at December 31, 2019 , the balance held in trust was CHF 8.4 million ( 2018 — CHF 9.0 million ). Singapore Fund. Aspen U.K. has established a segregated Singaporean bank account to secure policyholder liabilities and as a condition for maintaining a Singaporean insurance license and meet local solvency requirements. As at December 31, 2019 , the balance in the account was SGD $148.9 million ( 2018 — SGD $135.9 million ). (b) Variable interest entities As at December 31, 2019 , the Company had investments in one ( December 31, 2018 — two ) variable interest entities, Peregrine Reinsurance Ltd. Peregrine Reinsurance Ltd. For further information regarding the Company’s investment in Peregrine Reinsurance Ltd, refer to Note 5, “Variable Interest Entities” of these consolidated financial statements. (c) Contingent liabilities In common with the rest of the insurance and reinsurance industry, the Company is also subject to litigation and arbitration in the ordinary course of business. The Company’s Operating Subsidiaries are regularly engaged in the investigation, conduct and defense of disputes, or potential disputes, resulting from questions of insurance or reinsurance coverage or claims activities. Pursuant to insurance and reinsurance arrangements, many of these disputes are resolved by arbitration or other forms of alternative dispute resolution. Such legal proceedings are considered in connection with estimating the Company’s Insurance Reserves — Loss and Loss Adjustment Expenses, as provided on the Company’s consolidated balance sheet. In some jurisdictions, noticeably the U.S., a failure to deal with such disputes or potential disputes in an appropriate manner could result in an award of “bad faith” punitive damages against the Company’s Operating Subsidiaries. In accordance with ASC 450-20-50-4b, for (a) reasonably possible losses for which no accrual is made because any of the conditions for accrual in ASC 450-20-25-2 are not met and (b) reasonably possible losses in excess of the amounts accrued pursuant to ASC 450-20-30-1, the Company will provide an estimate of the possible loss or range of possible loss or state that such an estimate cannot be made. As at December 31, 2019 , it was the opinion of the Company’s management based on available information that the probability of the ultimate resolution of pending or threatened litigation or arbitrations having a material effect on the Company’s financial condition, results of operations or liquidity would be remote. |
Concentration of Credit Risk
Concentration of Credit Risk | 12 Months Ended |
Dec. 31, 2019 | |
Risks and Uncertainties [Abstract] | |
Concentrations of Credit Risk | Concentrations of Credit Risk The Company is potentially exposed to concentrations of credit risk in respect of amounts recoverable from reinsurers, investments and cash and cash equivalents, and insurance and reinsurance balances owed by the brokers with whom the Company transacts business. The Company defines credit risk tolerances in line with the risk appetite set by our Board and they, together with the group’s risk management function, monitor exposures to individual counterparties. Any exceptions are reported to senior management and the Risk Committee of the Board of Directors. Reinsurance recoverables The total amount recoverable by the Company from reinsurers as at December 31, 2019 was $2,319.8 million ( 2018 — $2,077.6 million ) of which $1,817.5 million was uncollateralized ( 2018 — $1,497.8 million ). As at December 31, 2019 , of the Company’s uncollateralized reinsurance recoverables 15.1% ( 2018 — 15.7% ) were with Munich Re which is rated A+ by A.M. Best and AA- by S&P, 11.9% ( 2018 — 10.2% ) were with Everest Re which is rated A+ by A.M Best and A+ by S&P, and 9.1% ( 2018 — 10.0% ) were with MS & AND Group which is rated A+ by A.M. Best and A+ by S&P. These are the Company’s largest exposures to individual reinsurers. The Company has made no provision for doubtful debts from any of its reinsurers as at December 31, 2019 . Underwriting premium receivables The total underwriting premium receivable by the Company as at December 31, 2019 was $1,318.4 million ( 2018 — $1,459.3 million ). As at December 31, 2019 , $15.7 million of the total underwriting premium receivable balance has been due for settlement for more than one year. The Company assesses the recoverability of premium receivables through a review of policies and the concentration of receivables by broker. A bad debt provision was included of $23.0 million as at December 31, 2019 ( 2018 — $16.2 million ) for underwriting premiums unlikely to be collected. Investments and cash and cash equivalents The Company’s investment policies include specific provisions that limit the allowable holdings of a single issue and issuer. As at December 31, 2019 , there were no investments in any single issuer, other than the U.S. government, U.S. government agencies, U.S. government sponsored enterprises, the Canadian government and the U.K. government in excess of 2% of the aggregate investment portfolio. Balances owed by brokers The Company underwrites a significant amount of its business through brokers and a credit risk exists should any of these brokers be unable to fulfill their contractual obligations in respect of insurance or reinsurance balances due to the Company. The following table shows the largest brokers that the Company transacted business within the three years ended December 31, 2019 and the proportion of gross written premiums from each of those brokers. Twelve Months Ended December 31, 2019 2018 2017 (in percentages) Aon Corporation (1) 13.4 % 15.8 % 16.4 % Marsh & McLennan Companies, Inc. 13.6 15.8 16.0 Willis Group Holdings, Ltd. 10.3 12.4 13.1 Other brokers/non-broker sources (2) 62.7 56.0 54.5 Total 100.0 % 100.0 % 100.0 % Gross written premiums ($ millions) $ 3,442.4 $ 3,446.9 $ 3,360.9 ______________ (1) On March 9, 2020, Aon plc and Willis Towers Watson announced a definitive agreement to combine, and expect the transaction to close in the first half of 2021. (2) No other individual broker accounted for more than 10% of total gross written premiums. |
Reclassifications from Accumula
Reclassifications from Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Reclassifications from Accumulated Other Comprehensive Income | Reclassifications from Accumulated Other Comprehensive Income The following table sets out the components of the Company’s AOCI that are reclassified into the audited condensed consolidated statement of operations for the twelve months ended December 31, 2019 and 2018 : Amount Reclassified from AOCI Details about the AOCI Components Twelve Months Ended December 31, 2019 Twelve Months Ended December 31, 2018 Affected Line Item in the Consolidated Statement of Operations ($ in millions) Available for sale securities: Realized (losses)/gains on sale of securities $ (14.4 ) $ 6.7 Realized and unrealized investment gains Realized gains/(losses) on sale of securities 7.6 (11.9 ) Realized and unrealized investment losses (6.8 ) (5.2 ) (Loss) from operations before income tax Tax on net realized gains of securities — 0.7 Income tax (expense)/benefit $ (6.8 ) $ (4.5 ) Net (loss) Realized derivatives: Net realized gains/(losses) on settled derivatives 4.8 (1.2 ) General, administrative and corporate expenses Tax on settled derivatives (0.8 ) 0.2 Income tax (expense)/benefit $ 4.0 $ (1.0 ) Net (loss) Total reclassifications from AOCI to the statement of operations, net of income tax $ (2.8 ) $ (5.5 ) Net (loss) |
Credit Facility and Long-term D
Credit Facility and Long-term Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Credit Facility and Long-term Debt | Credit Facility and Long-term Debt Credit Agreement. On March 27, 2017, Aspen Holdings and certain of its direct or indirect subsidiaries (collectively, the “Borrowers”) entered into a Second Amended and Restated Credit Agreement (the “Credit Agreement”) with various lenders and Barclays Bank plc, as administrative agent, which amends and restates the Amended and Restated Credit Agreement, dated as of June 12, 2013, among the Company, certain subsidiaries thereof, various lenders and Barclays Bank plc, as administrative agent. The credit facility will be used by the Borrowers to finance the working capital needs of the Company and its subsidiaries, for letters of credit in connection with the insurance and reinsurance businesses of the Company and its subsidiaries and for other general corporate purposes. Initial availability under the credit facility is $200,000,000 and the Company has the option (subject to obtaining commitments from acceptable lenders) to increase the credit facility by up to $100,000,000 . The credit facility will expire on March 27, 2022. As at December 31, 2019 , no borrowings were outstanding under the Credit Agreement. The fees and interest rates on the loans and the fees on the letters of credit payable by the Borrowers under the Credit Agreement are based upon the credit ratings for the Company’s long-term unsecured senior debt by S&P and Moody’s. In addition, the fees for a letter of credit vary based upon whether the applicable Borrower has provided collateral (in the form of cash or qualifying debt securities) to secure its reimbursement obligations with respect to such letter of credit. Under the Credit Agreement, the Company must not permit (a) consolidated tangible net worth to be less than approximately $2,323,100,000 plus 25% of consolidated net income and 25% of aggregate net cash proceeds from the issuance by the Company of its capital stock, in each case after January 1, 2017, (b) the ratio of its total consolidated debt to the sum of such debt plus our consolidated tangible net worth to exceed 35% or (c) any material insurance subsidiary to have a financial strength rating of less than “B++” from A.M. Best. The Credit Agreement contains other customary affirmative and negative covenants, including (subject to various exceptions) restrictions on the ability of the Company and its subsidiaries to incur indebtedness, create or permit liens on their assets, engage in mergers or consolidations, dispose of assets, pay dividends or other distributions, purchase or redeem the Company’s equity securities, make investments and enter into transactions with affiliates. In addition, the Credit Agreement has customary events of default, including (subject to certain materiality thresholds and grace periods) payment default, failure to comply with covenants, material inaccuracy of representation or warranty, bankruptcy or insolvency proceedings, change of control and cross-default to other debt agreements. On August 28, 2018, the Borrowers entered into a Waiver to Credit Agreement with various lenders and Barclays Bank plc, as administrative agent, to waive any Default or Event of Default that would result from any Change of Control caused by the Merger. Other Credit Facilities. On September 20, 2019, Aspen Bermuda and Citibank Europe plc (“Citi Europe”) amended the committed letter of credit facility, dated June 30, 2012, as amended on June 30, 2014, June 30, 2016, and June 29, 2018 (the “LOC Facility”). The term of the LOC Facility is to June 30, 2020 and provides a maximum aggregate amount of up to $500.0 million . Under the LOC Facility, Aspen Bermuda will pay to Citi Europe (a) a letter of credit fee based on the available amounts of each letter of credit and (b) a commitment fee, which varies based upon usage, on the unutilized portion of the LOC Facility. Aspen Bermuda will also pay interest on the amount drawn by any beneficiary under the LOC Facility at a rate per annum of LIBOR plus 1% (plus reserve asset costs, if any) from the date of drawing until the date of reimbursement by Aspen Bermuda. In addition, Aspen Bermuda and Citi Europe entered into an uncommitted letter of credit facility whereby Aspen Bermuda has the ability to request letters of credit under this facility subject to the prior approval of Citi Europe. The fee associated with the uncommitted facility is a letter of credit fee based on the available amounts of each letter of credit issued under the uncommitted facility. Both the LOC Facility and the uncommitted facility are used to secure obligations of Aspen Bermuda to its policyholders. In addition to these facilities, we also use regulatory trusts to secure our obligations to policyholders. The terms of a pledge agreement between Aspen Bermuda and Citi Europe (pursuant to an assignment agreement dated October 11, 2006) dated January 17, 2006, as amended, were also amended on June 30, 2014 to change the types of securities or other assets that are acceptable as collateral under the New LOC Facility. All other agreements relating to Aspen Bermuda’s LOC Facility, which now apply to the LOC Facility with Citi Europe, as previously filed with the SEC, remain in full force and effect. As at December 31, 2019 , we had $444.2 million of outstanding collateralized letters of credit under the LOC Facility ( December 31, 2018 — $444.2 million ). Long-term Debt. On December 15, 2010, the Company closed its offering of $250.0 million 6.00% Senior Notes due December 15, 2020. The net proceeds from this offering, before offering expenses, were $247.5 million . On June 18, 2018, we redeemed $125.0 million of our 6.00% Senior Notes due 2020 resulting in a realized loss, or make-whole payment, of $8.6 million . On September 30, 2019, we redeemed the remaining $125.0 million of our 6.00% Senior Notes due 2020 resulting in a realized loss, or make-whole payment of $5.5 million . On November 13, 2013, the Company closed its offering of $300.0 million 4.65% Senior Notes due November 15, 2023 (the “2023 Senior Notes”). The net proceeds from the 2023 Senior Notes offering, before offering expenses, were $299.7 million and a portion of the proceeds was used to redeem the then outstanding 2014 Senior Notes. Subject to applicable law, the 2023 Senior Notes will be the senior unsecured obligations of Aspen Holdings and will rank equally in right of payment with all of our other senior unsecured indebtedness from time to time outstanding. Subject to certain exceptions, so long as any of the senior notes described above remain outstanding, the Company has agreed that neither the Company nor any of its subsidiaries will (i) create a lien on any shares of capital stock of any designated subsidiary (currently Aspen U.K. and Aspen Bermuda, as defined in the Indenture), or (ii) issue, sell, assign, transfer or otherwise dispose of any shares of capital stock of any designated subsidiary. Certain events will constitute an event of default under the Indenture, including default in payment at maturity of any of our other indebtedness in excess of $50.0 million . Silverton, our Bermuda-domiciled special purpose insurer, was established in December 2013 to provide additional collateralized capacity to support Aspen Re’s global reinsurance business. On December 23, 2014, Silverton issued $85.0 million of participating notes (of which $70.0 million was issued to third parties), which provided quota share support for Aspen Re’s global property catastrophe excess of loss reinsurance business. The 2015 Loan Notes matured on September 18, 2017. In the fourth quarter of 2015, Silverton issued $125.0 million of participating notes (of which $100.0 million was issued to third parties), which provided quota share support for Aspen Re’s global property catastrophe excess of loss reinsurance business. The 2016 Loan Notes matured on September 17, 2018. In the fourth quarter of 2016, Silverton issued $130.0 million of participating notes (of which $105.0 million was issued to third parties), which provided quota share support for Aspen Re’s global property catastrophe excess of loss reinsurance business. A final payment was made to noteholders after commutation of the reinsurance agreement on July 1, 2019. Silverton has no further reinsurance commitments outstanding. The following table summarizes our contractual obligations under long-term debt as at December 31, 2019 . Payments Due By Period Contractual Basis Less than 1-3 years 3-5 years More than 5 years Total ($ in millions) Long-term Debt Obligations $ — $ 300.0 $ — $ — $ 300.0 The Senior Notes obligation disclosed above does not include the $14.0 million annual interest payable associated with the Senior Notes or the loan notes issued by Silverton. For more information on Silverton, refer to Note 5, “Variable Interest Entities” of these consolidated financial statements. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Reinsurance Agreement. On March 2, 2020, the Company entered into an adverse development reinsurance agreement with a wholly-owned subsidiary of Enstar Group Limited. Under this agreement, the Company will cede to the wholly-owned subsidiary of Enstar Group Limited, losses incurred on or prior to December 31, 2019 , in excess of $3.805 billion , up to an aggregate limit of $4.575 billion (coverage of $770.0 million ). The reinsurance agreement also provides for $250.0 million of cover in excess of $4.815 billion . The consideration for this agreement is $770.0 million plus interest at 3.75% per annum, compounding daily, from the effective date January 1, 2020 to the closing date. Completion of the transaction is subject to regulatory approvals and satisfaction of various other closing conditions. The transaction is expected to close in the first half of 2020. COVID-19. We continue to closely monitor developments related to the outbreak of COVID-19, also known as coronavirus, to assess any potential impact on our business. Like many property and casualty (re)insurers, we have possible exposure to the contingency market and cancellation losses stemming from the COVID-19 outbreak and could also face COVID-19 related claims from credit and surety lines and potential exposure from business interruption. Whether the virus could trigger coverage is dependent on specific policy language, terms and exclusions. There is a risk, however, that legislative, regulatory, judicial or social influences may extend coverage beyond our intended contractual obligations or result in an increase in the frequency or severity of claims beyond expected levels. The volatility in the financial markets resulting from the outbreak may also impact our investment portfolio. Our investment portfolio comprises primarily government and other fixed income securities and we are not significantly exposed to equity markets. However, our corporate bond portfolio could be subject to default risk in the event of extended disruption to trade, and our strategic asset allocation includes middle market loans, commercial and other mortgage loan arrangements which may be adversely affected by the outbreak. In addition, existing and potential future travel bans, preventative or government mandated closures of our offices or the offices of our outsource providers may affect our ability to conduct our business. A prolonged period of commercial disruption, reduced economic activity and other consequences of the outbreak could have a material impact on our results of operations, financial condition or liquidity. Because this is an evolving and highly uncertain situation it is not possible to provide an estimate of potential insurance, reinsurance or investment exposure or any other indirect effects the outbreak may have on our results of operations, financial condition or liquidity. Recent Changes to Ratings. On March 26, 2020, S&P downgraded the financial strength and issuer credit ratings of Aspen Bermuda and Aspen U.K. to “A-” (Strong) from “A” (Strong). The long term issuer credit rating of Aspen Holdings was downgraded to “BBB” from “BBB+”. The outlook assigned to all these ratings is stable. Our U.S. Operating subsidiaries, AAIC and Aspen Specialty, are not currently rated by S&P and have a financial strength rating of “A” (Excellent) by A.M. Best with a negative outlook. On April 1, 2020 A.M. Best affirmed the financial strength rating of “A” (Excellent) for Aspen Bermuda, Aspen U.K. Aspen Specialty and AAIC but revised its outlook to negative from stable. Our Lloyd’s operations benefit from the Lloyd’s market financial strength rating of “A” (Excellent) with a stable outlook by A.M. Best and “A+” (Strong) with a stable outlook by S&P. Although the Company is still assessing the impact of this recent downgrade by S&P, we do not believe that this change in rating will significantly impact where the Company conducts its business operations. However, the downgrade may impair our ability to sell insurance policies and could materially and adversely affect our competitive position in the insurance industry, future financial condition and operating results. |
Schedule I - Investments
Schedule I - Investments | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Abstract] | |
Schedule I - Investments | SCHEDULE I - INVESTMENTS For the Twelve Months Ended December 31, 2019 , 2018 and 2017 The Company’s investments comprise investments in subsidiaries. |
Schedule II - Condensed Financi
Schedule II - Condensed Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule II - Condensed Financial Information of Registrant | SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT BALANCE SHEETS As at December 31, 2019 and 2018 As at December 31, 2019 As at December 31, 2018 ($ in millions, except per share amounts) ASSETS Short-term investments (available for sale) $ — $ — Fixed income maturities (trading) 75.6 — Cash and cash equivalents 37.4 55.6 Investments in subsidiaries (1) (2) 2,973.6 3,163.1 Other investments (equity method) — 3.7 Eurobond issued by subsidiary — — Long-term debt issued by Silverton — 1.1 Intercompany funds due from affiliates 0.1 — Right-of-use operating lease assets 1.4 — Other assets 6.9 9.0 Total assets $ 3,095.0 $ 3,232.5 LIABILITIES Accrued expenses and other payables 7.2 47.3 Intercompany funds due to affiliates 61.2 120.1 Long-term debt 299.8 424.7 Operating lease liabilities 1.3 — Total liabilities $ 369.5 $ 592.1 SHAREHOLDERS’ EQUITY Ordinary Shares: 60,395,839 shares of par value $.01 each $ 0.6 $ 0.1 Preference Shares: 11,000,000 5.950% shares of par value 0.15144558¢ each — — 10,000,000 5.625% shares of par value 0.15144558¢ each — — 10,000,000 5.625% depositary shares of par value 0.15144558¢ each — — Additional paid in capital 1,201.7 967.5 Retained earnings (2) 1,514.6 1,791.0 Non-controlling interest — 3.7 Accumulated other comprehensive income, net of taxes: Unrealized gains on investments 84.5 (66.8 ) Gain/(loss) on derivatives 4.3 0.3 Gains on foreign currency translation (80.2 ) (55.4 ) Total accumulated other comprehensive (loss)/income 8.6 (121.9 ) Total shareholders’ equity 2,725.5 2,640.4 Total liabilities and shareholders’ equity $ 3,095.0 $ 3,232.5 ____________________ (1) The Company’s investment in subsidiaries are accounted for under the equity method and adjustments to the carrying value of these investments are made based on the Company’s share of capital, including share of income and expenses. Changes in the value were recognized in realized and unrealized investment gains and losses in the statement of operations. (2) Investment in subsidiaries and retained earnings have been restated by $15.6 million from January 1, 2017 to account for additional ceded premiums on excess of loss ceded reinsurance contracts for periods December 31, 2016 and prior. ASPEN INSURANCE HOLDINGS LIMITED SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT - Continued STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME For the Twelve Months Ended December 31, 2019 , 2018 and 2017 Twelve Months Ended December 31, 2019 Twelve Months Ended December 31, 2018 Twelve Months Ended December 31, 2017 ($ in millions) Operating Activities: Equity in net earnings of subsidiaries and other investments, equity method $ (415.1 ) $ (371.3 ) $ (590.7 ) Dividend income 270.0 340.3 373.6 Interest income on Eurobond — — 18.7 Net realized and unrealized investment gains/(losses) 2.6 (5.1 ) (2.3 ) Other income — — — Total revenues (142.5 ) (36.1 ) (200.7 ) Expenses: General, administrative and corporate expenses (70.2 ) (83.8 ) (36.2 ) Interest expense (25.7 ) (25.9 ) (29.5 ) Other expense (3.3 ) — — (Loss) from operations before income tax (241.7 ) (145.8 ) (266.4 ) Income tax — — — Net (loss) (241.7 ) (145.8 ) (266.4 ) Amount attributable to non-controlling interest 1.2 (1.0 ) (1.3 ) Net (loss) attributable to Aspen Insurance Holdings Limited ordinary shareholders (240.5 ) (146.8 ) (267.7 ) Other comprehensive (loss)/income, net of taxes: Change in unrealized gains on investments 151.3 (76.5 ) (12.8 ) Net change from current period hedged transactions 4.0 (1.8 ) 2.6 Change in foreign currency translation adjustment (24.8 ) 12.3 (40.6 ) Other comprehensive (loss)/income, net of tax 130.5 (66.0 ) (50.8 ) Comprehensive (loss) $ (110.0 ) $ (212.8 ) $ (318.5 ) ASPEN INSURANCE HOLDINGS LIMITED SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT - Continued STATEMENTS OF CASH FLOWS For the Twelve Months Ended December 31, 2019 , 2018 and 2017 Twelve Months Ended December 31, 2019 Twelve Months Ended December 31, 2018 Twelve Months Ended December 31, 2017 ($ in millions) Cash Flows From/(Used In) Operating Activities: Net income (1) (excluding equity in net earnings of subsidiaries) $ 174.6 $ 224.5 $ 323.0 Adjustments: Share-based compensation expenses — 10.1 9.8 Realized and unrealized losses/(gains) 9.6 (0.7 ) (2.0 ) Loss on derivative contracts (4.0 ) 1.8 (2.6 ) Amortization of right-to-use operating lease assets 0.3 — — Interest on operating lease liabilities 0.2 — — Change in other receivables — — — Change in other assets 2.1 (0.2 ) (0.2 ) Change in accrued expenses and other payables (51.2 ) 51.1 7.0 Change in intercompany activities (59.0 ) 63.9 (27.5 ) Change in operating lease liabilities (0.5 ) — — Net cash generated by operating activities 72.1 350.5 307.5 Cash Flows From/(Used in) Investing Activities: Proceeds/(purchases) of short term investments — — 25.1 Proceeds/(purchases) of fixed income securities (75.6 ) 79.4 66.3 Investment in subsidiaries (82.7 ) (215.9 ) (111.9 ) Repayment of loan notes issued by Silverton — 18.6 13.5 Investment in Micro-insurance — — (0.1 ) Net cash (used in) investing activities (158.3 ) (117.9 ) (7.1 ) Cash Flows From/(Used in) Financing Activities: Proceeds from issuance of ordinary shares, net of issuance costs 1.4 2.7 0.5 Proceeds from issuance of preference shares, net of issuance costs 241.6 — — Preference shares redeemed — — (293.2 ) Ordinary share repurchase (0.1 ) — (30.0 ) Ordinary and preference share dividends paid (35.9 ) (73.4 ) (92.4 ) Repayment of long-term debt issued by Silverton (7.7 ) — — Make-whole payment (5.5 ) (8.6 ) — Minority interest buy-out (0.8 ) — — Long-term debt redeemed (125.0 ) (125.0 ) — Cash paid for tax withholding purposes — (4.7 ) (9.6 ) Net cash from/(used in) financing activities 68.0 (209.0 ) (424.7 ) (Decrease)/increase in cash and cash equivalents (18.2 ) 23.6 (124.3 ) Cash and cash equivalents — beginning of period 55.6 32.0 156.3 Cash and cash equivalents — end of period $ 37.4 $ 55.6 $ 32.0 _________ (1) Net income has been adjusted for the proportion due to non-controlling interest. |
Schedule III - Supplementary In
Schedule III - Supplementary Insurance Information | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract] | |
Schedule III - Supplementary Insurance Information | SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION For the Twelve Months Ended December 31, 2019 , 2018 and 2017 Supplementary Information ($ in millions) Year Ended December 31, 2019 Deferred Policy Acquisition Costs Net Reserves for Losses and LAE Net Reserves for Unearned Premiums Net Premiums Earned Net Investment Income Losses and LAE Expenses Policy Acquisition Expenses Net Premium Written General and Administrative Expenses Reinsurance $ 210.3 $ 2,605.9 $ 599.9 $ 1,255.2 $ 917.9 $ 264.9 $ 1,251.1 $ 111.7 Insurance 80.8 2,026.1 694.1 1,038.1 761.8 147.8 1,176.8 229.8 Total $ 291.1 $ 4,632.0 $ 1,294.0 $ 2,293.3 $ 197.3 $ 1,679.7 $ 412.7 $ 2,427.9 $ 341.5 Year to date December 31, 2018 Deferred Policy Acquisition Costs Net Reserves for Losses and LAE Net Reserves for Unearned Premiums Net Net Investment Income Losses and LAE Expenses Policy Acquisition Expenses Net Premium Written General and Administrative Expenses Reinsurance $ 208.3 $ 2,843.6 $ 616.0 $ 1,256.4 $ 927.0 $ 260.9 $ 1,182.9 $ 118.5 Insurance 40.2 2,153.0 534.3 958.3 646.0 110.7 899.1 239.2 Total $ 248.5 $ 4,996.6 $ 1,150.3 $ 2,214.7 $ 198.2 $ 1,573.0 $ 371.6 $ 2,082.0 $ 357.7 Year to date December 31, 2017 Deferred Policy Acquisition Costs Net Reserves for Losses and LAE Net Reserves for Unearned Premiums Net Premiums Earned Net Investment Income Losses and LAE Expenses Policy Acquisition Expenses Net Premium Written General and Administrative Expenses Reinsurance $ 263.0 $ 2,917.1 $ 1,067.3 $ 1,206.1 $ 1,116.4 $ 235.5 $ 1,250.0 $ 157.3 Insurance 31.3 2,317.2 268.0 1,100.5 878.3 165.0 962.5 253.9 Total $ 294.3 $ 5,234.3 $ 1,335.3 $ 2,306.6 $ 189.0 $ 1,994.7 $ 400.5 $ 2,212.5 $ 411.2 |
Schedule IV - Reinsurance
Schedule IV - Reinsurance | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |
Schedule IV - Reinsurance | SCHEDULE IV - REINSURANCE For the Twelve Months Ended December 31, 2019 , 2018 and 2017 Premiums Written Direct Assumed Ceded Net Amount ($ in millions) 2019 $ 1,956.9 $ 1,485.5 $ (1,014.5 ) $ 2,427.9 2018 $ 1,951.2 $ 1,495.7 $ (1,364.9 ) $ 2,082.0 2017 $ 1,812.4 $ 1,548.5 $ (1,148.4 ) $ 2,212.5 Premiums Earned Gross Amount Assumed From Ceded to Other Companies Net Amount Percentage of Amount Assumed to Net ($ in millions, except for percentages) 2019 $ 1,927.5 $ 1,494.9 $ (1,129.1 ) $ 2,293.3 65.2 % 2018 $ 1,940.5 $ 1,593.9 $ (1,319.7 ) $ 2,214.7 72.0 % 2017 $ 1,757.4 $ 1,451.8 $ (902.6 ) $ 2,306.6 62.9 % |
Schedule V - Valuation and Qual
Schedule V - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule V - Valuation and Qualifying Accounts | SCHEDULE V - VALUATION AND QUALIFYING ACCOUNTS For the Twelve Months Ended December 31, 2019 , 2018 and 2017 The following table shows the movement in the Company’s bad debt provision during the twelve months ended December 31, 2019 , 2018 and 2017 : Balance at Beginning of Year Charged to Costs and Expenses Charged to Other Accounts Deductions Balance at End of Year Provisions for Bad Debt ($ in millions) 2019 Premiums receivable from underwriting activities $ 16.2 $ 6.8 $ — $ — $ 23.0 Reinsurance $ — $ — $ — $ — $ — 2018 Premiums receivable from underwriting activities $ 5.2 $ 11.0 $ — $ — $ 16.2 Reinsurance $ — $ — $ — $ — $ — 2017 Premiums receivable from underwriting activities $ 5.0 $ 0.2 $ — $ — $ 5.2 Reinsurance $ — $ — $ — $ — $ — |
Basis of Preparation and Sign_2
Basis of Preparation and Significant Accounting Policies Basis of Preparation and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates Assumptions and estimates made by management have a significant effect on the amounts reported within the consolidated financial statements. The most significant of these relate to losses and loss adjustment expenses, reinsurance recoverables, gross written premiums and commissions which have not been reported to the Company such as those relating to proportional treaty reinsurance contracts, unrecognized tax benefits, the fair value of derivatives and the fair value of other and privately-held investments. All material assumptions and estimates are regularly reviewed and adjustments made as necessary but actual results could be significantly different from those expected when the assumptions or estimates were made. |
Accounting for Insurance and Reinsurance Operations | Accounting for Insurance and Reinsurance Operations Premiums Earned. Premiums are recorded as written on the inception date of a policy. Premiums are primarily recognized as revenues proportionately over the coverage period. Premiums earned are recorded in the statements of operations, net of the cost of purchased reinsurance. Premiums written which are not yet recognized as earned premium are recorded in the consolidated balance sheet as unearned premiums, gross of any ceded unearned premiums. Written and earned premiums and the related costs include estimates for premiums which have not been finally determined. These relate mainly to contractual provisions for the payment of adjustment or additional premiums, premiums payable under proportional treaties and delegated underwriting authorities, and reinstatement premiums. Adjustment and additional premiums are premiums charged which relate to experience during the policy term. The proportion of adjustable premiums included in the premium estimates varies between business lines with the largest adjustment premiums being in property and casualty reinsurance, marine, aviation and energy insurance and the smallest in property and casualty insurance. Premiums under proportional treaty contracts and delegated underwriting authorities are generally not reported to the Company until after the reinsurance coverage is in force. As a result, an estimate of these “pipeline” premiums is recorded. The Company estimates pipeline premiums based on projections of ultimate premium taking into account reported premiums and expected development patterns. Reinstatement premiums on assumed excess of loss reinsurance contracts are provided based on experience under such contracts. Reinstatement premiums are the premiums charged for the restoration of the reinsurance limit of an excess of loss contract to its full amount after payment by the reinsurer of losses as a result of an occurrence. Reinstatement premiums are recognized as revenue in full at the date of loss, triggering the payment of the reinstatement premiums. Reinstatement premiums provide future insurance cover for the remainder of the initial policy term. An allowance for uncollectible premiums is established for possible non-payment of premium receivables, as deemed necessary. Outward reinsurance premiums, which are paid when the Company purchases reinsurance or retrocessional coverage, are accounted for using the same accounting methodology as the Company uses for inwards premiums. Premiums payable under reinsurance contracts that operate on a “losses occurring during” basis are accounted for in full over the period of coverage while those arising from “risks attaching during” policies are expensed over the earnings period of the underlying premiums receivable from the reinsured business. Adjustment premiums and reinstatement premiums in relation to outward reinsurance are accrued when it is determined that the ultimate losses will trigger a payment and recognized within premiums payable. Premiums payable for retroactive reinsurance coverage and meeting the conditions of reinsurance accounting are reported as reinsurance recoverables to the extent that those amounts do not exceed recorded liabilities relating to underlying reinsurance contracts. To the extent that recorded liabilities on an underlying reinsurance contract exceed premiums payable for retroactive coverage, a deferred gain is recognized. Losses and Loss Adjustment Expenses. Losses represent the amount paid or expected to be paid to claimants in respect of events that have occurred on or before the balance sheet date. The costs of investigating, resolving and processing these claims are known as loss adjustment expenses (“LAE”). The statement of operations records these losses net of reinsurance, meaning that gross losses and loss adjustment expenses incurred are reduced by the amounts recovered or expected to be recovered under reinsurance contracts. Reinsurance. Written premiums, earned premiums, incurred claims, LAE and the amortization of deferred policy acquisition costs all reflect the net effect of assumed and ceded reinsurance transactions. Assumed reinsurance refers to the Company’s acceptance of certain insurance risks that other insurance companies have underwritten. Ceded reinsurance arises from contracts under which other insurance companies agree to share certain risks with the Company. Reinsurance accounting is followed when there is significant timing risk, significant underwriting risk and a reasonable possibility of significant loss. Reinsurance and retrocession does not isolate the ceding company from its obligations to policyholders. In the event that a reinsurer or retrocessionaire fails to meet its obligations, the ceding company’s obligations remain. The Company regularly evaluates the financial condition of its reinsurers and retrocessionaires and monitors the concentration of credit risk to minimize its exposure to financial loss from reinsurers’ and retrocessionaires’ insolvency. Where it is considered required, appropriate provision is made for balances deemed irrecoverable from reinsurers. Reserves. Insurance reserves are established for the total unpaid cost of claims and LAE in respect of events that have occurred by the balance sheet date, including the Company’s estimates of the total cost of claims incurred but not yet reported (“IBNR”). Claim reserves are reduced for estimated amounts of salvage and subrogation recoveries. Estimated amounts recoverable from reinsurers on unpaid losses and LAE are reflected as assets. For reported claims, reserves are established on a case-by-case basis within the parameters of coverage provided in the insurance policy or reinsurance agreement. For IBNR claims, reserves are estimated using a number of established actuarial methods to establish a range of estimates from which a management best estimate is selected. Both case and IBNR reserve estimates consider variables such as past loss experience, changes in legislative conditions, changes in judicial interpretation of legal liability, policy coverages and inflation. As many of the coverages underwritten involve claims that may not be ultimately settled for many years after they are incurred, subjective judgments as to the ultimate exposure to losses are an integral and necessary component of the loss reserving process. The Company regularly reviews its reserves, using a variety of statistical and actuarial techniques to analyze current claims costs, frequency and severity data, and prevailing economic, social and legal factors. Reserves established in prior periods are adjusted as claim experience develops and new information becomes available. Adjustments to previously estimated reserves are reflected in the financial results of the period in which the adjustments are made. The process of estimating required reserves does, by its very nature, involve considerable uncertainty. The level of uncertainty can be influenced by factors such as the existence of coverage with long duration payment patterns and changes in claims handling practices, as well as the factors noted above. Ultimate actual payments for claims and LAE could turn out to be significantly different from the Company’s estimates. Amortization of Deferred Policy Acquisition Costs. The costs directly related to writing an insurance policy are referred to as policy acquisition expenses and include commissions, premium taxes and profit commissions. With the exception of profit commissions, these expenses are incurred when a policy is issued, and only the costs directly related to the successful acquisition of new and renewal insurance and reinsurance contracts are deferred and amortized over the same period as the corresponding premiums are recorded as revenues. Profit commissions are estimated based on the related performance criteria evaluated at the balance sheet date, with subsequent changes to those estimates recognized when they occur. On a regular basis a recoverability analysis is performed of the deferred policy acquisition costs in relation to the expected recognition of revenues, including anticipated investment income, and adjustments, if any, are reflected as period costs. Should the analysis indicate that the acquisition costs are unrecoverable, further analyses are performed to determine if a reserve is required to provide for losses which may exceed the related unearned premium. General, Administrative and Corporate Expenses. These costs represent the expenses incurred in running the business and include, but are not limited to compensation costs for employees, rental costs, IT development and operating costs and professional and consultancy fees. General, policy and administrative costs directly attributable to the successful acquisition of business are deferred and amortized over the same period as the corresponding premiums are recorded as revenues. When reporting the results for its business segments, the Company includes expenses which are directly attributable to the segment plus an allocation of central administrative costs. Corporate expenses are not allocated to the Company’s business segments as they typically do not fluctuate with the levels of premium written and are related to the Company’s operations which include group executive costs, group finance costs, group legal and actuarial costs and certain strategic and other costs. |
Accounting for Investments, Cash and Cash Equivalents | Accounting for Investments, Cash and Cash Equivalents Fixed Income Securities. The fixed income securities portfolio comprises securities issued by governments and government agencies, corporate bonds, mortgage and other asset-backed securities and bank loans. Investments in fixed income securities are classified as available for sale or trading and are reported at estimated fair value in the consolidated balance sheet. Investment transactions are recorded on the trade date with balances pending settlement reflected in the consolidated balance sheet under receivables for securities sold and accrued expenses and other payables for securities purchased, respectively. Fair values are based on quoted market prices and other data provided by third-party pricing services. Short-term Investments. Short-term investments primarily comprise highly liquid debt securities with a maturity greater than three months but less than one year from the date of purchase and are held as part of the investment portfolio of the Company. Short-term investments are classified as either trading or available for sale and carried at estimated fair value. Catastrophe Bonds. Investments in catastrophe bonds are classified as trading and are carried on the consolidated balance sheet at estimated fair value. The fair values are based on independent broker-dealer quotes. Privately-held Investments. The Company’s privately-held investments primarily comprise commercial mortgage loans and middle market loans. These investments are classified as trading and are carried on the consolidated balance sheet at estimated fair value. Privately-held investments are initially valued at cost or transaction value which approximates fair value. In subsequent measurement periods, the fair values of these securities are primarily determined using internally developed discounted cash flow models. Interest income is accrued on the principal amount of the loan based on its contractual interest rate subject to it being probable that we will receive interest on that particular underlying loan. Interest income, amortization of premiums and discounts, and prepayment fees are reported in net investment income on the consolidated statements of income. Other Investments, Equity Method. Other investments represent the Company’s investments that are recorded using the equity method of accounting. Adjustments to the fair value of these investments are made based on the net asset value of the investment. Other investments. Other investments represent the Company’s investment in a real estate fund. Adjustments to the fair value are made based on the net asset value of the investment. Cash and Cash Equivalents. Cash and cash equivalents are carried at fair value. Cash and cash equivalents comprise cash on hand, deposits held on call with banks and other short-term highly liquid investments due to mature within three months from the date of purchase and which are subject to insignificant risk of change in fair value. Gains and Losses. Realized gains or losses on the sale of investments are determined on the basis of the first in first out cost method and, for fixed income available for sale securities, include adjustments to the cost basis of investments for declines in value that are considered to be other-than-temporary. Unrealized gains and losses represent the difference between the cost, or the cost as adjusted by amortization of any difference between its cost and its redemption value (“amortized cost”), of the security and its fair value at the reporting date and are included within other comprehensive income for securities classified as available for sale and in realized and unrealized investment gains or losses in the consolidated statement of operations for securities classified as trading. Other-than-temporary Impairment of Investments. A security is impaired when its fair value is below its cost or amortized cost. The Company reviews its investment portfolio each quarter on an individual security basis for potential other-than-temporary impairment (“OTTI”) based on criteria including issuer-specific circumstances, credit ratings actions and general macro-economic conditions. OTTI is deemed to occur when there is no objective evidence to support recovery in value of a security and (i) the Company intends to sell the security or more likely than not will be required to sell the security before recovery of its cost or adjusted amortized cost basis or (ii) it is deemed probable that the Company will be unable to collect all amounts due according to the contractual terms of the individual security. In the first case, the entire unrealized loss position is taken as an OTTI charge to realized losses in earnings. In the second case, the unrealized loss is separated into the amount related to credit loss and the amount related to all other factors. The OTTI charge related to credit loss is recognized in realized losses in earnings and the amount related to all other factors is recognized in other comprehensive income. The cost basis of the investment is reduced accordingly and no adjustments to the cost basis are made for subsequent recoveries in value. Although the Company reviews each security on a case by case basis, it has also established parameters focusing on the extent and duration of impairment to help identify securities in an unrealized loss position which are other-than-temporarily impaired. For fixed income securities in the available for sale portfolio, the Company considers securities which have been in an unrealized loss position for 12 months or more which currently have a market value of more than 20% below cost should be other-than-temporarily impaired. Investment Income. Investment income includes amounts received and accrued in respect of periodic interest (“coupons”) payable to the Company by the issuer of fixed income securities, equity dividends and interest credited on cash and cash equivalents. It also includes amortization of premium and accretion of discount in respect of fixed income securities. Investment management and custody fees are charged against net investment income reported in the consolidated statement of operations. |
Accounting for Derivative Financial Instruments | Accounting for Derivative Financial Instruments The Company enters into derivative instruments such as interest rate swaps and forward exchange contracts in order to manage certain market and credit risks. The Company records derivative instruments at fair value on the Company’s balance sheet as either assets or liabilities, depending on their rights and obligations. The accounting for the gain or loss due to the changes in the fair value of these instruments is dependent on whether the derivative qualifies as a hedge. If the derivative does not qualify as a hedge, the gains or losses are reported in earnings when they occur. If the derivative does qualify as a hedge, the accounting treatment varies based on the type of risk being hedged. |
Accounting for Intangible Assets | Accounting for Intangible Assets Intangible assets are held in the consolidated balance sheet at cost less amortization and impairment. Amortization applies on a straight-line basis in respect of assets having a finite estimated useful economic life. The Company performs a qualitative assessment annually to determine whether it is more likely than not that an intangible asset considered to have an indefinite life is impaired. |
Accounting for Office Properties and Equipment | Accounting for Office Properties and Equipment Office properties and equipment are carried at cost less accumulated depreciation. These assets are depreciated on a straight-line basis over the estimated useful lives of the assets. Computer equipment and software is depreciated between three and five years with depreciation for software commencing on the date the software is brought into use. Furniture and fittings are depreciated over four years and leasehold improvements are depreciated over the lesser of 15 years or the lease term. |
Accounting for Foreign Currencies Translation | Accounting for Foreign Currencies Translation The reporting currency of the Company is the U.S. Dollar. The functional currencies of the Company’s foreign operations and branches are the currencies in which the majority of their business is transacted. Transactions in currencies other than the functional currency are measured in the functional currency of that operation at the exchange rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in non-functional currencies are remeasured at the exchange rate prevailing at the balance sheet date and any resulting foreign exchange gains or losses are reflected in the statement of operations. Monetary and non-monetary assets and liabilities of the Company’s functional currency operations are translated into U.S. Dollars at the exchange rate prevailing at the balance sheet date. Income and expenses of these operations are translated at the exchange rate prevailing at the date of the transaction. Unrealized gains or losses arising from the translation of functional currencies are recorded net of tax as a component of other comprehensive income. |
Accounting for Income Tax | Accounting for Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. When the Company does not believe that, on the basis of available information, it is more likely than not that deferred tax assets will be fully recovered, it recognizes a valuation allowance against its deferred tax assets to reduce the deferred tax assets to the amount more likely than not to be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Furthermore, a tax benefit from a tax position may be recognized in the financial statements only if it is more-likely-than-not that the position is sustainable, based solely on its technical merits and consideration of the relevant tax authority’s widely understood administrative practices and precedents. The tax benefit recognized, when the likelihood of realization is more likely-than-not (i.e. greater than 50 percent), is measured at the largest amount that is greater than 50 percent likely of being realized upon settlement. |
Accounting for Preference Shares | Accounting for Preference Shares The Company had at the balance sheet date in issue three classes of preference shares. The Company has no obligation to pay interest on these securities but they carry entitlements to dividends payable at the discretion of the Board of Directors. In the event of non-payment of dividends for six consecutive periods, holders of preference shares have director appointment rights. The preference shares are therefore accounted for as equity instruments and included within total shareholders’ equity. |
Accounting for Long-term Incentive Plans | Accounting for Long-Term Incentive Plans The Company operates an employee long-term incentive plan, comprised of Performance Units and Exit Units, the terms and conditions of which are described in Note 16. The Company applies a fair-value based measurement method in calculating the compensation costs of Performance Units which are recognized on a straight line basis over the vesting period. Prior to the Merger, the Company operated an employee share incentive plan, a non-executive director stock incentive plan and employee share purchase plans, the terms and conditions of which are described in Note 16. The Company applied a fair-value based measurement method including estimates for future forfeitures in the calculation of the compensation costs of stock options, performance shares, phantom shares and restricted share units. |
Accounting for Long-term Debt Issued by Variable Interest Entities | Accounting for Long-Term Debt Issued by Variable Interest Entities Silverton, a consolidated variable interest entity, issued debt instruments as further described in Note 5, “Variable Interest Entities” of these consolidated financial statements. This debt was separately identified on the Company’s balance sheet and the Company elected to record the debt at fair value due to the potential variability over the ultimate settlement value of the debt instruments. |
Accounting for Business Combinations | Accounting for Business Combinations The Company accounts for a transaction as a business combination where the assets acquired and liabilities assumed following a transaction constitute a business. An acquired entity must have inputs and processes that make it capable of generating a return or economic benefit to be considered a business. If the assets acquired are not a business, the Company accounts the transaction as an asset acquisition. The Company recognizes and measures at fair value 100 percent of the assets and liabilities of any acquired business. Goodwill is recognized and measured as the difference between the consideration paid or payable less the fair value of assets acquired. |
New Accounting Pronouncements | Accounting Pronouncements Accounting Pronouncements Adopted in 2019 On February 25, 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-2, “Leases (Topic 842)” which supersedes the leases requirements in Topic 840 and establishes the principles that lessees and lessors shall apply, to report useful information to users of financial statements about the amount, timing, and uncertainty of cash flows arising from a lease. As per ASU 842, the Company has chosen to adopt a modified retrospective transition method with an effective application date being the beginning of the period of adoption (i.e., January 1, 2019) and as a result prior comparative periods would not be adjusted under this method. Following the adoption of this standard, the Company recognized right-of-use operating leased assets of $88.1 million , consisting of leased office real estate and motor vehicles, and an operating lease liability of $95.5 million on the balance sheet as of January 1, 2019. The interest rate assumption applied in determining the present value of future cash flows of 5% was determined based on the Company’s weighted average incremental borrowing rate. As at December 31, 2019, right-of-use operating leased assets of $93.5 million and a corresponding operating lease liability of $113.2 million have been recognized on the balance sheet which include new and renewed lease agreements during the year. An operating lease charge of $18.0 million was incurred during the year ended December 31, 2019, consisting of an amortization charge of $13.4 million on right-of-use operating leases assets and a $4.6 million finance charge on the operating lease liability. For further details refer to Note 18, “Operating Leases.” On March 5, 2019, the FASB issued ASU 2019-01, “Codification Improvements (Topic 842)” which amended lessor accounting guidance in ASC 842 and clarifies exemption from certain interim period transitional disclosure requirements. The amendments of this ASU are effective for fiscal years beginning after December 15, 2018. Adoption of this ASU did not have a material impact on the Company’s financial statements and disclosures. On August 28, 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815)” enabling entities to better align their hedge accounting and risk management activities, while also simplifying the application of hedge accounting in certain situations. This ASU is effective for fiscal years beginning after December 15, 2018 using a modified retrospective approach for cash flow and net investment hedge relationships that exist on the date of adoption. Adoption of this ASU did not have a material impact on the Company’s financial statements and disclosures. On February 14, 2018, the FASB issued ASU 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220)” which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. This ASU is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Adoption of this ASU did not have a material impact on the Company’s financial statements and disclosures. On June 20, 2018, the FASB issued ASU 2018-07, “ Compensation - Stock Compensation (Topic 718) ” which amends the scope of Topic 718 via improvements to non-employee share-based payment accounting. Amendments include allowing companies to account for share-based payment transactions with non-employees in the same way as share-based payment transactions with employees and includes elections that offer relief to non-public companies when measuring non-employee equity share options. This ASU is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Adoption of this ASU did not have a material impact on the Company’s financial statements and disclosures. On August 28, 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820) Disclosure Framework)” allowing entities to modify the disclosure requirements on fair value measurements. This ASU is effective for fiscal years beginning after December 15, 2019, however early adoption is permitted. The Company has chosen to early adopt and has therefore not disclosed information regarding the effect of unobservable inputs on earnings for the period. Accounting Pronouncements Not Yet Adopted On June 16, 2016, the FASB issued ASU 2016-13, “ Financial Instruments - Credit Losses (Topic 326) ” which introduces a new impairment model, known as the current expected credit loss model, which is based on expected losses rather than incurred losses. Under the new credit loss model, the Company would recognize an allowance for its estimate of expected credit losses and this would apply to most debt instruments (other than those measured at fair value), trade receivables, lease receivables, reinsurance receivables, financial guarantee contracts and loan commitments. This ASU also made limited amendments to the impairment model for available-for-sale debt securities, requiring an allowance for credit losses to be recognized. There are other amendments required as a result of this ASU that are effective for fiscal years beginning after December 15, 2019. Additionally, on May 15, 2019, the FASB issued ASU 2019-05, “ Financial Instruments - Credit Losses (Topic 326) ” which allows an entity, upon adoption of ASU 2016-13, to irrevocably elect the fair value option on an instrument-by-instrument basis (except for existing held-to-maturity securities). If an entity elects the fair value option, the difference between the instrument’s fair value and carrying amount is recognized as a cumulative-effect adjustment. This ASU will be effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. These ASUs are expected to have a material impact on the Company’s consolidated financial statements, specifically reducing the Company’s available-for-sale investment portfolio and reinsurance recoverables by an estimated $0.5 million and $3.7 million , respectively, as a result of recognizing current expected credit losses, together with a cumulative effect adjustment of $4.2 million through opening retained earnings. On October 31, 2018, the FASB issued ASU 2018-17, “ Consolidation (Topic 810)” which makes targeted improvements to related party guidance for variable interest entities, requiring the reporting entity to consider indirect interests held through related parties under common control on a proportionate basis when evaluating whether a decision-maker’s fee is a variable interest for purposes of the primary beneficiary test. This ASU will be effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. The Company has evaluated the provisions of ASU 2018-17 to determine how it will be affected, and no material impact is expected on the consolidated financial statements. On April 4, 2019, the FASB issued ASU 2019-04, “ Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments ” amending guidance on credit losses, hedging, and recognizing and measuring financial instruments in response to questions raised by stakeholders and to correct unintended application. This ASU will be effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years for both Topic 326 and Topic 825, whereas for Topic 815 the amendments are effective as of the beginning of the entity’s next annual period for entities that have already adopted the hedge accounting standard. The Company is currently evaluating the provisions of ASU 2019-04 to determine how it will be affected, but no material impact is expected on the consolidated financial statements. On December 18, 2019, the FASB issued ASU 2019-12, “ Income Taxes (Topic 740) ” which makes amendments aimed at simplifying the accounting for income taxes. This ASU will be effective for fiscal years beginning after December 15, 2021 and interim periods within those fiscal years. The Company is currently evaluating the provisions of ASU 2019-12 to determine how it will be affected, but no material impact is expected on the consolidated financial statements. Other accounting pronouncements were issued during the year ended December 31, 2019 which were either not relevant to the Company or did not impact the Company’s consolidated financial statements. (o) Correction of Immaterial Error During the fourth quarter of 2019, the Company identified the need for recording additional adjustment premiums for a limited number of historical excess of loss ceded reinsurance contracts for periods December 31, 2016 and prior. This error individually is immaterial to the prior periods financial statements and therefore the Company will not be amending previously filed financial statements. The recognition of additional ceded premiums constituted a $15.6 million cumulative adjustment to opening retained earnings and reinsurance premium payables in 2017. Management has determined that the restatement is immaterial when considering both qualitative and quantitative measures. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Summary of gross and net written and earned premiums, underwriting results, ratios and reserves for each of Company's business segments | The following tables provide a summary of gross and net written and earned premiums, underwriting results, ratios and reserves for each of the Company’s business segments for the twelve months ended December 31, 2019 , 2018 and 2017 : Twelve Months Ended December 31, 2019 Reinsurance Insurance Total ($ in millions) Underwriting Revenues Gross written premiums $ 1,485.5 $ 1,956.9 $ 3,442.4 Net written premiums 1,251.1 1,176.8 2,427.9 Gross earned premiums 1,494.9 1,927.5 3,422.4 Net earned premiums 1,255.2 1,038.1 2,293.3 Underwriting Expenses Losses and loss adjustment expenses 917.9 761.8 1,679.7 Amortization of deferred policy acquisition costs 264.9 147.8 412.7 General and administrative expenses 111.7 229.8 341.5 Underwriting (loss) (39.3 ) (101.3 ) (140.6 ) Corporate expenses (54.5 ) Non-operating expenses (125.6 ) (1) Net investment income 197.3 Realized and unrealized investment gains 97.1 Realized and unrealized investment losses (10.9 ) Realized loss on debt extinguishment (5.5 ) Change in fair value of loan notes issued by variable interest entities (3.1 ) Change in fair value of derivatives (144.2 ) Interest expense on long term debt (20.2 ) Net realized and unrealized foreign exchange (losses) (11.8 ) Other income 4.9 Other expenses (1.7 ) (Loss) before tax (218.8 ) Income tax (expense) (22.9 ) Net (loss) $ (241.7 ) Net reserves for loss and loss adjustment expenses $ 2,605.9 $ 2,026.1 $ 4,632.0 Ratios Loss ratio 73.1 % 73.4 % 73.2 % Policy acquisition expense ratio 21.1 14.2 18.0 General and administrative expense ratio 8.9 22.1 22.7 (2) Expense ratio 30.0 36.3 40.7 Combined ratio 103.1 % 109.7 % 113.9 % _______________ (1) Non-operating expenses includes $103.4 million of costs related to the Merger, severance, retention and other costs, and $22.2 million of expenses related to the Company’s operating effectiveness and efficiency program, which includes $12.3 million of impairment charges related to lease assets as a result of sub-leasing certain office space. (2) The general and administrative expense ratio in the total column includes corporate and non-operating expenses. Twelve Months Ended December 31, 2018 Reinsurance Insurance Total ( $ in millions) Underwriting Revenues Gross written premiums $ 1,495.7 $ 1,951.2 $ 3,446.9 Net written premiums 1,182.9 899.1 2,082.0 Gross earned premiums 1,593.9 1,940.5 3,534.4 Net earned premiums 1,256.4 958.3 2,214.7 Underwriting Expenses Losses and loss adjustment expenses 927.0 646.0 1,573.0 Amortization of deferred policy acquisition costs 260.9 110.7 371.6 General and administrative expenses 118.5 239.2 357.7 Underwriting (loss) (50.0 ) (37.6 ) (87.6 ) Corporate expenses (56.8 ) Non-operating expenses (77.2 ) (1) Net investment income 198.2 Realized and unrealized investment gains 110.0 Realized and unrealized investment losses (174.7 ) Realized loss on debt extinguishment (8.6 ) Change in fair value of loan notes issued by variable interest entities (4.4 ) Change in fair value of derivatives (31.8 ) Interest expense on long term debt (25.9 ) Net realized and unrealized foreign exchange (losses) (3.5 ) Other income 9.0 Other expenses (2.7 ) (Loss) before tax (156.0 ) Income tax benefit 10.2 Net (loss) $ (145.8 ) Net reserves for loss and loss adjustment expenses $ 2,843.6 $ 2,153.0 $ 4,996.6 Ratios Loss ratio 73.8 % 67.4 % 71.0 % Policy acquisition expense ratio 20.8 11.6 16.8 General and administrative expense ratio 9.4 25.0 22.2 (2) Expense ratio 30.2 36.6 39.0 Combined ratio 104.0 % 104.0 % 110.0 % ________________ (1) Non-operating expenses includes $37.5 million of expenses related to Company’s operating effectiveness and efficiency program, $39.0 million of advisor fees related to the Merger and $11.3 million of retention costs, partially offset by the write back of a $14.1 million buy-out provision. (2) The general and administrative expense ratio in the total column includes corporate and non-operating expenses. Twelve Months Ended December 31, 2017 Reinsurance Insurance Total ($ in millions) Underwriting Revenues Gross written premiums $ 1,548.5 $ 1,812.4 $ 3,360.9 Net written premiums 1,250.0 962.5 2,212.5 Gross earned premiums 1,451.8 1,757.4 3,209.2 Net earned premiums 1,206.1 1,100.5 2,306.6 Underwriting Expenses Losses and loss adjustment expenses 1,116.4 878.3 1,994.7 Amortization of deferred policy acquisition costs 235.5 165.0 400.5 General and administrative expenses 157.3 253.9 411.2 Underwriting (loss) (303.1 ) (196.7 ) (499.8 ) Corporate expenses (58.3 ) Non-operating expenses (32.7 ) (1) Net investment income 189.0 Realized and unrealized investment gains 148.9 Realized and unrealized investment losses (28.4 ) Change in fair value of loan notes issued by variable interest entities 21.2 Change in fair value of derivatives 27.7 Interest expense on long term debt (29.5 ) Net realized and unrealized foreign exchange (losses) (23.9 ) Other income 8.9 Other expenses (4.9 ) (Loss) before tax (281.8 ) Income tax benefit 15.4 Net (loss) $ (266.4 ) Net reserves for loss and loss adjustment expenses $ 2,917.1 $ 2,317.2 $ 5,234.3 Ratios Loss ratio 92.6 % 79.8 % 86.5 % Policy acquisition expense ratio 19.5 15.0 17.4 General and administrative expense ratio 13.0 23.1 21.8 (2) Expense ratio 32.5 38.1 39.2 Combined ratio 125.1 % 117.9 % 125.7 % _______________ (1) Non-operating expenses includes $15.2 million of expenses related to the Company’s operating effectiveness and efficiency program. (2) The general and administrative expense ratio in the total column includes corporate and non-operating expenses. |
Schedule of gross written premiums based on geographical areas | Geographical Areas . The following summary presents the Company’s gross written premiums based on the location of the insured risk for the twelve months ended December 31, 2019 , 2018 and 2017 . For the Twelve Months Ended December 31, 2019 December 31, 2018 December 31, 2017 ($ in millions) Australia/Asia $ 215.9 $ 175.9 $ 167.3 Caribbean 9.3 7.7 17.6 Europe 82.8 92.6 94.5 United Kingdom 295.7 290.1 258.3 United States & Canada (1) 2,003.9 1,875.9 1,729.3 Worldwide excluding United States (2) 63.0 70.1 88.1 Worldwide including United States (3) 614.9 775.8 868.6 Others 156.9 158.8 137.2 Total $ 3,442.4 $ 3,446.9 $ 3,360.9 ______________ (1) “United States and Canada” comprises individual policies that insure risks specifically in the United States and/or Canada, but not elsewhere. (2) “Worldwide excluding the United States” comprises individual policies that insure risks wherever they may be across the world but specifically excludes the United States. (3) “Worldwide including the United States” comprises individual policies that insure risks wherever they may be across the world but specifically includes the United States. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Investment Income | The following table summarizes investment income for the twelve months ended December 31, 2019 , 2018 and 2017 : For the Twelve Months Ended December 31, 2019 December 31, 2018 December 31, 2017 ($ in millions) Fixed income securities — Available for sale $ 128.2 $ 134.1 $ 133.3 Fixed income securities — Trading 42.0 49.6 44.0 Short-term investments — Available for sale 2.3 1.4 0.4 Short-term investments — Trading 2.5 0.4 0.8 Fixed term deposits (included in cash and cash equivalents) 19.5 14.2 6.2 Equity securities — Trading — 2.1 13.6 Catastrophe bonds — Trading 2.3 2.8 1.8 Privately-held investments — Trading 3.4 — — Other investments, at fair value 8.9 2.5 — Total 209.1 207.1 200.1 Investment expenses (11.8 ) (8.9 ) (11.1 ) Net investment income $ 197.3 $ 198.2 $ 189.0 |
Net Realized and Unrealized Investment Gains and Losses and Change in Unrealized Gains and Losses on Investments | The following table summarizes the net realized and unrealized investment gains and losses recorded in the statement of operations and the change in unrealized gains and losses on investments recorded in other comprehensive income for the twelve months ended December 31, 2019 , 2018 and 2017 : For the Twelve Months Ended December 31, 2019 December 31, 2018 December 31, 2017 ($ in millions) Available for sale: Fixed income securities — gross realized gains $ 14.4 $ 6.4 $ 10.2 Fixed income securities — gross realized (losses) (7.3 ) (11.4 ) (6.6 ) Short-term investments — gross realized gains — — 0.1 Cash and cash equivalents — gross realized gains 0.1 0.3 0.4 Cash and cash equivalents — gross realized (losses) (0.2 ) (0.5 ) (0.1 ) Other-than-temporary impairments — — (0.7 ) Trading: Fixed income securities — gross realized gains 34.3 4.6 9.7 Fixed income securities — gross realized (losses) (2.6 ) (25.0 ) (4.5 ) Short-term investments — gross realized gains — 0.1 2.7 Short-term investments — gross realized (losses) — (4.2 ) — Cash and cash equivalents — gross realized gains — 1.5 1.3 Cash and cash equivalents — gross realized (losses) (0.3 ) (0.3 ) — Equity securities — gross realized gains — 94.5 59.0 Equity securities — gross realized (losses) — (20.1 ) (13.7 ) Privately-held investments — gross realized (losses) (0.2 ) — — Catastrophe bonds — net unrealized gains/(losses) 0.9 2.2 (2.4 ) Net change in gross unrealized gains / losses 47.2 (112.1 ) 60.3 Investments — equity method: Gross realized and unrealized (loss) in MVI (0.1 ) (0.2 ) (0.1 ) Gross unrealized gain in Chaspark — — 0.9 Gross realized and unrealized (loss) gain in Digital Risk (0.2 ) 0.4 — Gross realized and unrealized (loss) in Bene — (0.9 ) (0.3 ) Gross realized gain on sale of AgriLogic — — 4.3 Total net realized and unrealized investment gains/(losses) recorded in the statement of operations $ 86.2 $ (64.7 ) $ 120.5 Change in available for sale net unrealized gain/(losses): Fixed income securities 164.9 (81.3 ) (14.8 ) Change in taxes (13.6 ) 4.8 2.0 Total change in net unrealized gains/(losses), net of taxes recorded in other comprehensive income $ 151.3 $ (76.5 ) $ (12.8 ) |
Cost, Gross Unrealized Gains and Losses, and Estimated Fair Value of Available for Sale Investments in Fixed Income Maturities and Short-Term Investments | The following tables present the cost or amortized cost, gross unrealized gains and losses and estimated fair market value of available for sale investments in fixed income securities and short-term investments as at December 31, 2019 and December 31, 2018 : As at December 31, 2019 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value ($ in millions) U.S. government $ 1,383.2 $ 31.3 $ (1.4 ) $ 1,413.1 U.S. agency 38.7 0.9 — 39.6 Municipal 47.8 2.9 — 50.7 Corporate 1,905.6 54.8 (0.6 ) 1,959.8 Non-U.S. government-backed corporate 86.1 0.5 (0.1 ) 86.5 Non-U.S. government 324.7 4.5 (0.4 ) 328.8 Asset-backed 0.2 — — 0.2 Non-agency commercial mortgage-backed 6.7 — (0.2 ) 6.5 Agency mortgage-backed 1,052.2 21.9 (1.1 ) 1,073.0 Total fixed income securities — Available for sale 4,845.2 116.8 (3.8 ) 4,958.2 Total short-term investments — Available for sale 117.6 — — 117.6 Total $ 4,962.8 $ 116.8 $ (3.8 ) $ 5,075.8 As at December 31, 2018 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value ($ in millions) U.S. government $ 1,413.5 $ 6.8 $ (16.1 ) $ 1,404.2 U.S. agency 47.7 0.1 (0.4 ) 47.4 Municipal 46.7 1.3 (0.8 ) 47.2 Corporate 2,238.9 7.8 (40.5 ) 2,206.2 Non-U.S. government-backed corporate 93.2 0.2 (0.2 ) 93.2 Non-U.S. government 399.8 3.6 (0.8 ) 402.6 Asset-backed 17.4 — (0.1 ) 17.3 Agency mortgage-backed 1,025.1 6.5 (19.0 ) 1,012.6 Total fixed income securities — Available for sale 5,282.3 26.3 (77.9 ) 5,230.7 Total short-term investments — Available for sale 105.6 — — 105.6 Total $ 5,387.9 $ 26.3 $ (77.9 ) $ 5,336.3 |
Cost, Gross Unrealized Gains and Losses, and Estimated Fair Value of Trading Investments in Fixed Income Maturities | The following tables present the cost or amortized cost, gross unrealized gains and losses, and estimated fair market value of trading investments in fixed income securities, short-term investments, equity securities, catastrophe bonds and privately-held investments as at December 31, 2019 and December 31, 2018 : As at December 31, 2019 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value ($ in millions) Fixed Income Securities — Trading U.S. government $ 183.3 $ 1.8 $ (0.1 ) $ 185.0 Municipal 3.1 0.1 — 3.2 Corporate 231.7 11.6 (0.1 ) 243.2 Non-U.S. government 143.9 7.4 (0.1 ) 151.2 Asset-backed 491.7 2.4 (1.7 ) 492.4 Agency mortgage-backed 52.9 0.9 — 53.8 Total fixed income securities — Trading 1,106.6 24.2 (2.0 ) 1,128.8 Short-term investments — Trading 79.2 — — 79.2 Catastrophe bonds — Trading 29.4 — (0.8 ) 28.6 Privately-held investments — Trading Commercial mortgage loans $ 156.3 $ 0.3 $ — $ 156.6 Middle market loans 111.7 0.2 (0.2 ) 111.7 Asset-backed securities 8.7 — — 8.7 Equity securities 2.5 0.2 — 2.7 Total privately-held investments — Trading 279.2 0.7 (0.2 ) 279.7 Total Investments — Trading $ 1,494.4 $ 24.9 $ (3.0 ) $ 1,516.3 As at December 31, 2018 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value ($ in millions) Fixed Income Securities — Trading U.S. government $ 146.6 $ 1.6 $ (0.5 ) $ 147.7 Municipal 2.8 — (0.1 ) 2.7 Corporate 734.2 2.6 (16.6 ) 720.2 Non-U.S. government 268.7 1.9 (5.2 ) 265.4 Asset-backed 2.4 — — 2.4 Agency mortgage-backed 50.3 0.2 (1.1 ) 49.4 Total fixed income securities — Trading 1,205.0 6.3 (23.5 ) 1,187.8 Short-term investments — Trading 9.5 — — 9.5 Catastrophe bonds — Trading 37.9 0.1 (1.8 ) 36.2 Total Investments — Trading $ 1,252.4 $ 6.4 $ (25.3 ) $ 1,233.5 |
Schedule of Commercial Mortgage and Middle Market Loans | The following table presents the type of commercial mortgage loans and geographic region as at December 31, 2019 : As at December 31, 2019 Net Carrying Value Percentage of Total (in millions) (%) Property type Apartment $ 48.3 31 % Hotels 47.7 30 Office building 21.9 14 Other commercial 17.0 11 Retail 15.2 10 Industrial 6.5 4 Total commercial mortgage loans $ 156.6 100 % Geographic Region U.S. $ 85.5 55 % International 71.1 45 Total commercial mortgage loans $ 156.6 100 % The following table presents the type of middle market loans and geographic region as at December 31, 2019 : December 31, 2019 Net Carrying Value Percentage of Total (in millions) (%) Industry type Materials $ 29.5 26 % Financials 22.2 20 Industrials 18.9 17 Consumer discretionary 14.2 13 Health care 8.2 7 Energy 7.4 7 Consumer staples 6.4 6 Information technology 4.9 4 Total middle market mortgage loans $ 111.7 100 % Geographic Region U.S. $ 91.8 82 % International 19.9 18 Total middle market loans $ 111.7 100 % |
Credit Quality Indicators of Commercial Mortgage and Middle Market Loans | The following table represents the loan-to-enterprise-value ratio of the middle market loan portfolio as at December 31, 2019 : As at December 31, 2019 (in millions) Less than 50% $ 90.6 50% to 60% 21.1 Middle market loans $ 111.7 A loan-to-value ratio in excess of 100% indicates the unpaid loan amount exceeds the underlying collateral. The following table represents the loan-to-value ratio of the commercial mortgage loan portfolio as at December 31, 2019 : As at December 31, 2019 (in millions) 50% to 60% $ 80.5 61% to 70% 35.5 71% to 80% 40.6 Commercial mortgage loans $ 156.6 |
Debt Service and Fixed Charge Coverage Ratios | The following table represents the debt-service coverage ratio of the commercial mortgage loan portfolio as at December 31, 2019 : As at December 31, 2019 (in millions) Greater than 1.20x $ 94.6 1.00 - 1.20x 48.3 Less than 1.00x 13.7 Commercial mortgage loans $ 156.6 The following represents the fixed charge coverage ratio of the middle market loan portfolio as at December 31, 2019 As at December 31, 2019 (in millions) Greater than 1.20x $ 68.4 1.00 - 1.20x 25.5 Less than 1.00x 17.8 Middle market loans $ 111.7 |
Other Investments | The table below shows the Company’s investments in MVI, Bene, Digital Re and Crop Re for the twelve months ended December 31, 2019 and 2018 : MVI Bene Digital Re Crop Re Total ($ in millions) Opening undistributed value of investment as at January 1, 2019 $ 0.5 $ 3.2 $ 0.9 $ 62.5 $ 67.1 Investment in the period — 1.1 — — 1.1 Unrealized (loss)/gain for the twelve months to December 31, 2019 (0.1 ) — (0.2 ) — (0.3 ) Closing value of investment as at December 31, 2019 $ 0.4 $ 4.3 $ 0.7 $ 62.5 $ 67.9 Opening undistributed value of investment as at January 1, 2018 $ 0.5 $ 2.9 $ 0.5 $ 62.5 $ 66.4 Investment in the period 0.2 1.2 — — 1.4 Unrealized (loss)/gain for the twelve months to December 31, 2018 (0.2 ) (0.9 ) 0.4 — (0.7 ) Closing value of investment as at December 31, 2018 $ 0.5 $ 3.2 $ 0.9 $ 62.5 $ 67.1 |
Summary of Fixed Maturities | The scheduled maturity distribution of the Company’s available for sale fixed income securities as at December 31, 2019 and December 31, 2018 is set forth below. Actual maturities may differ from contractual maturities because issuers of securities may have the right to call or prepay obligations with or without call or prepayment penalties. As at December 31, 2019 Amortized Cost or Cost Fair Market Value Average S&P Ratings by Maturity ($ in millions) Due one year or less $ 572.7 $ 574.6 AA Due after one year through five years 2,230.3 2,269.3 AA- Due after five years through ten years 864.1 896.3 AA- Due after ten years 119.0 138.3 AA- Total — Government and corporate 3,786.1 3,878.5 Non-agency commercial mortgage-backed 6.7 6.5 AA+ Agency mortgage-backed 1,052.2 1,073.0 AA+ Asset-backed 0.2 0.2 AAA Total fixed income securities — Available for sale $ 4,845.2 $ 4,958.2 At December 31, 2018 Amortized Cost or Cost Fair Market Value Average S&P Ratings by Maturity ($ in millions) Due one year or less $ 464.3 $ 463.5 AA- Due after one year through five years 2,605.7 2,582.0 AA- Due after five years through ten years 1,047.9 1,028.3 AA- Due after ten years 121.9 127.0 AA- Total — Government and corporate 4,239.8 4,200.8 Agency mortgage-backed 1,025.1 1,012.6 AA+ Asset-backed 17.4 17.3 AAA Total fixed income securities — Available for sale $ 5,282.3 $ 5,230.7 |
Aggregate Fair Value and Gross Unrealized Loss by Type of Security | The following tables summarize, by type of security, the aggregate fair value and gross unrealized loss by length of time the security has been in an unrealized loss position for the Company’s available for sale portfolio as at December 31, 2019 and December 31, 2018 : December 31, 2019 0-12 months Over 12 months Total Fair Market Value Gross Unrealized Losses Fair Market Value Gross Unrealized Losses Fair Market Value Gross Unrealized Losses Number of Securities ($ in millions) U.S. government $ 142.0 $ (1.0 ) $ 138.2 $ (0.4 ) $ 280.2 $ (1.4 ) 49 U.S. agency 3.0 — 6.0 — 9.0 — 2 Municipal 3.7 — — — 3.7 — 2 Corporate 167.7 (0.6 ) 37.1 — 204.8 (0.6 ) 91 Non-U.S. government-backed corporate 31.8 (0.1 ) — — 31.8 (0.1 ) 9 Non-U.S. government 48.6 (0.4 ) 0.6 — 49.2 (0.4 ) 20 Asset-backed — — 0.2 — 0.2 — 1 Non-agency commercial mortgage-backed 6.5 (0.2 ) — — 6.5 (0.2 ) 1 Agency mortgage-backed 149.7 (0.3 ) 68.4 (0.8 ) 218.1 (1.1 ) 80 Total fixed income securities — Available for sale 553.0 (2.6 ) 250.5 (1.2 ) 803.5 (3.8 ) 255 Total short-term investments — Available for sale 29.5 — — — 29.5 — 5 Total $ 582.5 $ (2.6 ) $ 250.5 $ (1.2 ) $ 833.0 $ (3.8 ) 260 December 31, 2018 0-12 months Over 12 months Total Fair Market Value Gross Unrealized Losses Fair Market Value Gross Unrealized Losses Fair Market Value Gross Unrealized Losses Number of Securities ($ in millions) U.S. government $ 180.2 $ (0.7 ) $ 740.6 $ (15.4 ) $ 920.8 $ (16.1 ) 103 U.S. agency 13.5 (0.2 ) 18.4 (0.2 ) 31.9 (0.4 ) 12 Municipal 3.1 (0.1 ) 25.0 (0.7 ) 28.1 (0.8 ) 9 Corporate 999.1 (15.2 ) 762.2 (25.3 ) 1,761.3 (40.5 ) 667 Non-U.S. government-backed corporate 14.5 — 25.8 (0.2 ) 40.3 (0.2 ) 12 Non-U.S. government 64.0 (0.3 ) 91.0 (0.5 ) 155.0 (0.8 ) 57 Asset-backed 6.3 — 10.8 (0.1 ) 17.1 (0.1 ) 8 Agency mortgage-backed 245.7 (2.6 ) 447.3 (16.4 ) 693.0 (19.0 ) 253 Total fixed income securities — Available for sale 1,526.4 (19.1 ) 2,121.1 (58.8 ) 3,647.5 (77.9 ) 1,121 Total short-term investments — Available for sale 34.5 — — — 34.5 — 12 Total $ 1,560.9 $ (19.1 ) $ 2,121.1 $ (58.8 ) $ 3,682.0 $ (77.9 ) 1,133 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Summary of Loan Notes | The following tables show the total liability balance of the Loan Notes for the twelve months ended December 31, 2019 and 2018 : For the Twelve Months Ended December 31, 2019 Third Party Aspen Holdings Total ($ in millions) Opening balance $ 4.6 $ 1.1 $ 5.7 Total change in fair value for the period 3.1 0.8 3.9 Total distributed in the period (7.7 ) (1.9 ) (9.6 ) Closing balance as at December 31, 2019 $ — $ — $ — Liability Loan notes (long-term liabilities) $ — $ — $ — Accrued expenses (current liabilities) — — — Total aggregate unpaid balance as at December 31, 2019 $ — $ — $ — For the Twelve Months Ended December 31, 2018 Third Party Aspen Holdings Total ($ in millions) Opening balance $ 86.6 $ 20.6 $ 107.2 Total change in fair value for the period 4.4 1.1 5.5 Total distributed in the period (86.4 ) (20.6 ) (107.0 ) Closing balance as at December 31, 2018 $ 4.6 $ 1.1 $ 5.7 Liability Loan notes (long-term liabilities) $ — $ — $ — Accrued expenses (current liabilities) 4.6 1.1 5.7 Total aggregate unpaid balance as at December 31, 2018 $ 4.6 $ 1.1 $ 5.7 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Financial Assets Measured on Recurring Basis | The following tables present the level within the fair value hierarchy at which the Company’s financial assets and liabilities are measured on a recurring basis as at December 31, 2019 and December 31, 2018 : As at December 31, 2019 Level 1 Level 2 Level 3 Total ($ in millions) Available for sale financial assets, at fair value U.S. government $ 1,413.1 $ — $ — $ 1,413.1 U.S. agency — 39.6 — 39.6 Municipal — 50.7 — 50.7 Corporate — 1,959.8 — 1,959.8 Non-U.S. government-backed corporate — 86.5 — 86.5 Non-U.S. government 199.8 129.0 — 328.8 Asset-backed — 0.2 — 0.2 Non-agency commercial mortgage-backed — 6.5 — 6.5 Agency mortgage-backed — 1,073.0 — 1,073.0 Total fixed income securities available for sale, at fair value 1,612.9 3,345.3 — 4,958.2 Short-term investments available for sale, at fair value 108.1 9.5 — 117.6 Held for trading financial assets, at fair value U.S. government 185.0 — — 185.0 Municipal — 3.2 — 3.2 Corporate — 243.2 — 243.2 Non-U.S. government-backed corporate — — — — Non-U.S. government 48.3 102.9 — 151.2 Asset-backed — 492.4 — 492.4 Agency mortgage-backed — 53.8 — 53.8 Total fixed income securities trading, at fair value 233.3 895.5 — 1,128.8 Short-term investments trading, at fair value 79.2 — — 79.2 Privately-held investments trading, at fair value — — 279.7 279.7 Catastrophe bonds trading, at fair value — 28.6 — 28.6 Other investments (1) — — — 111.4 Other financial assets and liabilities, at fair value Derivatives at fair value — foreign exchange contracts — 12.9 — 12.9 Liabilities under derivative contracts — foreign exchange contracts — (8.9 ) — (8.9 ) Derivatives at fair value — interest rate swaps — (78.3 ) — (78.3 ) Loan notes issued by variable interest entities, at fair value (included within accrued expenses and other payables) — — — — Total $ 2,033.5 $ 4,204.6 $ 279.7 $ 6,629.2 ______________ (1) Other investments represents our investment in a real estate fund and is measured at fair value using the net asset value per share practical expedient. As a result this has not been classified in the fair value hierarchy. The fair value amounts presented in the table above are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheets. The investment in the real estate fund is subject to restrictions as detailed in Note 20(a), “Commitments and Contingencies.” At December 31, 2018 Level 1 Level 2 Level 3 Total ($ in millions) Available for sale financial assets, at fair value U.S. government $ 1,404.2 $ — $ — $ 1,404.2 U.S. agency — 47.4 — 47.4 Municipal — 47.2 — 47.2 Corporate — 2,206.2 — 2,206.2 Non-U.S. government-backed corporate — 93.2 — 93.2 Non-U.S. government 268.0 134.6 — 402.6 Asset-backed — 17.3 — 17.3 Agency mortgage-backed — 1,012.6 — 1,012.6 Total fixed income securities available for sale, at fair value 1,672.2 3,558.5 — 5,230.7 Short-term investments available for sale, at fair value 93.7 11.9 — 105.6 Held for trading financial assets, at fair value U.S. government 147.7 — — 147.7 Municipal — 2.7 — 2.7 Corporate — 720.2 — 720.2 Non-U.S. government-backed corporate — — — — Non-U.S. government 68.2 197.2 — 265.4 Asset-backed — 2.4 — 2.4 Agency mortgage-backed — 49.4 — 49.4 Total fixed income securities trading, at fair value 215.9 971.9 — 1,187.8 Short-term investments trading, at fair value 4.5 5.0 — 9.5 Catastrophe bonds trading, at fair value — 36.2 — 36.2 Other investments (1) — — — 102.5 Other financial assets and liabilities, at fair value Derivatives at fair value — foreign exchange contracts — 14.6 — 14.6 Liabilities under derivative contracts — foreign exchange contracts — (15.1 ) — (15.1 ) Loan notes issued by variable interest entities, at fair value (included within accrued expenses and other payables) — — (4.6 ) (4.6 ) Total $ 1,986.3 $ 4,583.0 $ (4.6 ) $ 6,667.2 |
Fair Value, Measured on a Recurring Basis, Gain (Loss) Included in Earnings | The following table presents a reconciliation of the beginning and ending balances for all assets and liabilities measured at fair value on a recurring basis using Level 3 inputs for the twelve months ended December 31, 2019 and December 31, 2018 : Twelve Months Ended December 31, 2019 Balance at beginning of year Purchases and issuances Settlements and sales Increase/(decrease) in fair value included net income Balance at end of year Change in unrealized investment gains (losses) relating to assets held at end of year Assets Privately-held investments — trading Commercial mortgage loans $ — $ 174.7 $ (20.1 ) $ 1.7 $ 156.4 $ 0.3 Middle market loans — 115.5 (3.8 ) 0.1 111.7 — Asset-backed securities — 8.7 — — 8.7 — Equity securities — 2.7 — — 2.7 — Total Level 3 assets $ — $ 301.5 $ (23.9 ) $ 1.8 $ 279.5 $ 0.3 Liabilities Loan notes issued by Silverton (1) $ 4.6 $ — $ (7.7 ) $ 3.1 $ — $ — Total Level 3 liabilities $ 4.6 $ — $ (7.7 ) $ 3.1 $ — $ — Twelve Months Ended December 31, 2018 Liabilities Loan notes issued by Silverton (1) $ 86.6 $ — $ (86.4 ) $ 4.4 $ 4.6 $ — Total Level 3 liabilities $ 86.6 $ — $ (86.4 ) $ 4.4 $ 4.6 $ — ____________________ (1) The amount classified as other payables was $ Nil and $4.6 million as at December 31, 2019 and December 31, 2018 , respectively. |
Fair Value Inputs, and Valuation Techniques | he observable and unobservable inputs used to determine the fair value of the Loan Notes as at December 31, 2018 . At December 31, 2018 Fair Value Level 3 Valuation Method Observable (O) and Unobservable (U) inputs Low High ($ in millions) ($ in millions) Loan Notes $ 4.6 (1) Internal Valuation Model Gross premiums written (O) $ 50.1 $ 61.1 Reserve for losses (U) $ 4.2 $ 61.9 Contract period (O) N/A 365 days Initial value of issuance (O) $ 325.0 $ 325.0 ______________ (1) The amount classified as other payables was $ Nil and $4.6 million as at December 31, 2019 and December 31, 2018 , respectively. The following table summarizes the quantitative inputs and assumptions used for financial assets and liabilities categorized as Level 3 under the fair value hierarchy as at December 31, 2019 : At December 31, 2019 Fair Value Level 3 Valuation Techniques Unobservable (U) inputs Ranges Weighted Average ($ in millions) Privately-held investments — Trading Commercial mortgage loans $ 125.7 Discounted cash flow Discount rate 5.0% 6.3% 5.8% Commercial mortgage loans 30.9 Transaction Value n/a n/a n/a n/a Middle market loans 111.7 Discounted cash flow Discount rate 6.8% 10.3% 7.9% Asset-backed securities 8.7 Discounted cash flow Discount rate 6.4% 6.4% 6.4% Equity securities $ 2.7 Transaction Value n/a n/a n/a n/a $ 279.7 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Reinsurance Disclosures [Abstract] | |
Summary of Assumed and Ceded Reinsurance on Premiums Written, Premiums Earned and Insurance Losses and Loss Adjustment Expenses | The effect of assumed and ceded reinsurance on premiums written, premiums earned and insurance losses and loss adjustment expenses for the twelve months ended December 31, 2019 , 2018 and 2017 was as follows: Twelve Months Ended December 31, 2019 2018 2017 ($ in millions) Premiums written : Direct $ 1,956.9 $ 1,951.2 $ 1,812.4 Assumed 1,485.5 1,495.7 1,548.5 Ceded (1,014.5 ) (1,364.9 ) (1,148.4 ) Net premiums written $ 2,427.9 $ 2,082.0 $ 2,212.5 Premiums earned: Direct $ 1,927.5 $ 1,940.5 $ 1,757.4 Assumed 1,494.9 1,593.9 1,451.8 Ceded (1,129.1 ) (1,319.7 ) (902.6 ) Net premiums earned $ 2,293.3 $ 2,214.7 $ 2,306.6 Insurance losses and loss adjustment expenses: Direct $ 1,415.5 $ 1,458.9 $ 1,673.6 Assumed 1,147.9 1,196.1 1,399.9 Ceded (883.7 ) (1,082.0 ) (1,078.8 ) Net insurance losses and loss adjustment expenses $ 1,679.7 $ 1,573.0 $ 1,994.7 |
Derivative Contracts (Tables)
Derivative Contracts (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative Instruments | The following table summarizes information on the location and amounts of derivative fair values on the consolidated balance sheet as at December 31, 2019 and 2018 : As at December 31, 2019 As at December 31, 2018 Derivatives Not Designated as Hedging Instruments Under ASC 815 Balance Sheet Location Notional Amount Fair Value Notional Amount Fair Value ($ in millions) ($ in millions) Foreign Exchange Contracts Derivatives at Fair Value $ 687.3 $ 8.1 (1) $ 496.5 $ 14.6 (1) Foreign Exchange Contracts Liabilities under Derivative Contracts $ 1,009.0 $ (8.9 ) $ 760.8 $ (13.9 ) Interest Rate Swaps Liabilities under Derivative Contracts $ 1,800.0 $ (78.3 ) (2) $ — $ — ______________ (1) Net of $2.9 million of cash collateral (December 31, 2018 — $2.3 million ). (2) Initial and variation margin of $111.1 million has been posted (December 31, 2018 — $ Nil ). As at December 31, 2019 As at December 31, 2018 Derivatives Designated as Hedging Instruments Under ASC 815 Balance Sheet Location Notional Amount Fair Value Notional Amount Fair Value ($ in millions) ($ in millions) Foreign Exchange Contracts Derivatives at Fair Value $ 85.5 $ 4.8 $ — $ — Foreign Exchange Contracts Liabilities under Derivative Contracts $ — $ — $ 94.3 $ (1.2 ) |
Gain/(Loss) Recognized in Income on Derivative | The following table provides the unrealized and realized gains/(losses) recorded in the statements of operations and other comprehensive income for derivatives that are not designated or designated as hedging instruments under ASC 815 — “ Derivatives and Hedging” for the twelve months ended December 31, 2019 and 2018 : Amount of (Loss)/Gain Recognized on Derivatives For the Twelve Months Ended Location of Gain/(Loss) Recognized on Derivatives December 31, 2019 December 31, 2018 Derivatives not designated as hedges ($ in millions) Foreign Exchange Contracts Change in Fair Value of Derivatives (14.0 ) (31.8 ) Interest Rate Swaps Change in Fair Value of Derivatives (130.2 ) — Derivatives designated as hedges Foreign Exchange Contracts General, administrative and corporate expenses 0.9 (1.2 ) Foreign Exchange Contracts Net change from current period hedged transactions 4.8 (2.1 ) |
Deferred Policy Acquisition C_2
Deferred Policy Acquisition Costs (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Insurance [Abstract] | |
Reconciliation of beginning and ending deferred policy acquisition costs | The following table represents a reconciliation of beginning and ending deferred policy acquisition costs for the twelve months ended December 31, 2019 and 2018 : Twelve Months Ended Twelve Months Ended December 31, 2018 ($ in millions) Balance at the beginning of the period $ 248.5 $ 294.3 Acquisition costs deferred 455.3 325.8 Amortization of deferred policy acquisition costs (412.7 ) (371.6 ) Balance at the end of the period $ 291.1 $ 248.5 |
Reserves for Losses and Adjus_2
Reserves for Losses and Adjustment Expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Insurance [Abstract] | |
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense | The following table represents a reconciliation of beginning and ending consolidated loss and LAE reserves for the twelve months ended December 31, 2019 , 2018 and 2017 : As at December 31, 2019 2018 2017 ($ in millions) Provision for losses and LAE at the start of the year $ 7,074.2 $ 6,749.5 $ 5,319.9 Less reinsurance recoverable (2,077.6 ) (1,515.2 ) (560.7 ) Net loss and LAE at the start of the year 4,996.6 5,234.3 4,759.2 Net loss and LAE expenses (disposed) — — (125.5 ) Movement in net provision for losses and LAE for claims incurred: Current year 1,620.2 1,684.1 2,100.1 Prior years 59.5 (111.1 ) (105.4 ) Total incurred 1,679.7 1,573.0 1,994.7 Losses and LAE payments for claims incurred: Current year (428.5 ) (285.7 ) (397.5 ) Prior years (1,694.1 ) (1,441.0 ) (1,157.6 ) Total paid (2,122.6 ) (1,726.7 ) (1,555.1 ) Foreign exchange losses/(gains) 78.3 (84.0 ) 161.0 Net losses and LAE reserves at the end of the year 4,632.0 4,996.6 5,234.3 Plus reinsurance recoverable on unpaid losses at the end of the year 2,319.8 2,077.6 1,515.2 Provision for losses and LAE at the end of the year $ 6,951.8 $ 7,074.2 $ 6,749.5 |
Short-duration Insurance Contracts, Claims Development | The following tables show an analysis of incurred claims and allocated loss adjustment expenses, net of reinsurance and cumulative paid claims and allocated claim adjustment expenses, net of reinsurance as at December 31, 2019 , 2018 , 2017 , 2016 2015 , 2014 , 2013 and 2012 . The loss development triangles are derived from all business written by the Company as although a limited number of contracts are written which have durations of greater than one year the contracts do not meet the definition of a long duration contract. Property Insurance Lines Incurred Claims, IBNR and Loss Adjustment Expenses, Net of Reinsurance As at December 31, 2019 Total of IBNR Plus Expected Development on Reported Claims Cumulative Number of Reported Claims For the Years Ended December 31, Accident Year Unaudited Prior Years 2012 2013 2014 2015 2016 2017 2018 2019 $ (in millions) 2012 169.8 167.9 166.6 165.5 159.9 154.0 153.0 153.0 — 6,075 2013 130.0 117.2 116.9 112.6 113.6 111.6 111.9 0.4 5,759 2014 165.4 157.3 134.2 134.9 134.1 132.6 1.5 9,989 2015 240.2 205.8 200.3 202.6 203.1 2.6 11,597 2016 238.8 249.6 244.5 245.8 7.4 10,738 2017 296.1 259.0 252.2 10.3 9,532 2018 203.7 206.3 18.4 7,913 2019 $ 127.3 42.4 5,291 Total $ 1,432.2 Property Insurance Lines Cumulative Paid Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Unaudited Prior Years Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 ($ in millions) 2012 41.3 129.1 138.7 152.7 156.8 154.3 153.6 153.6 2013 38.9 75.9 89.1 101.1 105.7 108.4 110.2 2014 40.4 86.6 114.1 123.8 127.9 129.3 2015 57.3 142.9 170.8 179.9 196.4 2016 67.0 169.0 201.6 223.7 2017 96.6 188.9 222.0 2018 62.2 161.1 2019 49.3 Total $ 1,245.6 All outstanding liabilities for 2012 and subsequent years, net of reinsurance $ 186.6 All outstanding liabilities before 2012, net of reinsurance 4.1 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 190.7 Casualty Insurance Lines Incurred Claims, IBNR and Loss Adjustment Expenses, Net of Reinsurance As at December 31, 2019 Total of IBNR Plus Expected Development on Reported Claims Cumulative Number of Reported Claims For the Years Ended December 31, Accident Year Unaudited Prior Years 2012 2013 2014 2015 2016 2017 2018 2019 $ (in millions) 2012 78.0 62.8 70.0 61.1 69.0 66.6 68.6 70.5 8.0 2,951 2013 132.9 116.5 114.9 120.4 103.4 104.6 104.8 10.8 3,239 2014 144.9 127.2 139.0 129.2 136.3 140.4 24.8 3,723 2015 203.6 223.6 186.2 203.9 236.7 38.7 4,577 2016 217.4 188.5 183.8 190.4 70.4 4,509 2017 181.6 175.0 179.0 35.3 5,022 2018 123.0 125.9 57.7 4,938 2019 $ 125.6 89.2 3,625 Total 1,173.3 Casualty Insurance Lines Cumulative Paid Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Unaudited Prior Years Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 ($ in millions) 2012 1.3 6.6 14.2 29.7 40.9 49.3 50.1 54.7 2013 2.2 25.8 39.5 53.0 68.4 80.8 85.1 2014 2.7 13.4 32.7 59.8 73.2 97.3 2015 3.2 17.1 56.6 92.9 138.8 2016 4.2 22.9 40.3 82.8 2017 3.6 23.0 53.0 2018 3.2 28.0 2019 6.4 Total $ 546.1 All outstanding liabilities for 2012 and subsequent years, net of reinsurance $ 627.2 All outstanding liabilities before 2012, net of reinsurance 42.0 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 669.2 Marine, Aviation and Energy Insurance Lines Incurred Claims, IBNR and Loss Adjustment Expenses, Net of Reinsurance As at December 31, 2019 Total of IBNR Plus Expected Development on Reported Claims Cumulative Number of Reported Claims For the Years Ended December 31, Unaudited Prior Years Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 $ (in millions) 2012 268.5 306.0 325.5 346.2 331.8 327.9 316.2 310.9 7.0 3,808 2013 320.8 333.7 342.3 325.8 332.9 346.4 345.1 5.2 4,171 2014 309.8 314.1 298.9 310.6 306.1 313.0 11.6 4,027 2015 297.3 300.3 282.5 286.5 310.0 24.9 4,030 2016 260.6 230.5 229.1 229.3 26.6 4,368 2017 210.7 201.0 207.3 17.2 5,894 2018 171.3 208.5 33.9 4,839 2019 $ 146.5 67.7 2,532 Total 2,070.6 Marine, Aviation and Energy Insurance Lines Cumulative Paid Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Unaudited Prior Years Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 ($ in millions) 2012 51.3 132.2 174.7 210.9 239.7 250.6 273.5 274.4 2013 41.5 131.6 204.9 235.3 264.7 284.3 300.4 2014 53.5 116.8 189.3 210.0 232.7 250.9 2015 44.9 123.4 174.4 194.2 222.2 2016 30.9 82.6 142.5 164.1 2017 40.2 97.7 140.3 2018 26.8 104.9 2019 $ 33.5 Total $ 1,490.7 All outstanding liabilities for 2012 and subsequent years, net of reinsurance $ 579.9 All outstanding liabilities before 2012, net of reinsurance 11.6 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 591.5 Financial and Professional Insurance Lines Incurred Claims, IBNR and Loss Adjustment Expenses, Net of Reinsurance As at December 31, 2019 Total of IBNR Plus Expected Development on Reported Claims Cumulative Number of Reported Claims For the Years Ended December 31, Unaudited Prior Years Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 $ (in millions) 2012 88.0 89.5 93.1 96.5 93.5 89.1 100.8 95.8 (1.6 ) 580 2013 105.6 100.1 104.5 101.2 100.2 91.3 90.3 7.7 572 2014 135.0 130.9 129.5 119.8 131.1 120.1 12.4 788 2015 174.2 175.6 185.6 189.8 191.0 47.7 1,077 2016 191.0 211.8 216.5 202.2 61.5 1,238 2017 206.8 183.1 187.9 70.9 1,688 2018 157.6 173.5 69.1 4,644 2019 $ 249.7 195.9 10,797 Total $ 1,310.5 Financial and Professional Insurance Lines Cumulative Paid Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Unaudited Prior Years Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 ($ in millions) 2012 22.8 39.5 50.6 59.1 65.1 70.3 79.7 84.8 2013 8.1 21.1 31.2 65.4 63.8 72.4 74.5 2014 3.0 30.7 53.5 72.2 79.7 85.5 2015 13.8 43.5 70.1 89.4 110.0 2016 15.1 71.2 102.1 130.1 2017 27.2 51.3 83.4 2018 20.3 74.8 2019 $ 27.3 Total $ 670.4 All outstanding liabilities for 2012 and subsequent years, net of reinsurance $ 640.1 All outstanding liabilities before 2012, net of reinsurance 17.3 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 657.4 Property Catastrophe and Other Property Reinsurance Incurred Claims, IBNR and Loss Adjustment Expenses, Net of Reinsurance As at December 31, 2019 Total of IBNR Plus Expected Development on Reported Claims Cumulative Number of Reported Claims For the Years Ended December 31, Unaudited Prior Years Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 $ (in millions) 2012 280.3 303.5 286.6 279.2 282.6 279.6 272.1 262.0 8.5 664 2013 216.7 199.1 189.2 178.0 176.5 173.2 170.3 0.4 822 2014 190.3 177.7 161.8 150.5 150.9 146.0 2.2 905 2015 214.5 187.3 177.2 156.7 172.0 6.5 1,031 2016 271.6 271.5 269.8 248.1 8.2 1,278 2017 557.7 534.7 516.6 10.0 1,952 2018 349.9 406.8 14.2 1,769 2019 273.8 117.4 974 $ 2,195.6 Property Catastrophe and Other Property Reinsurance Cumulative Paid Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Unaudited Prior Years Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 ($ in millions) 2012 35.7 136.0 189.1 209.3 216.8 227.9 232.4 242.5 2013 34.4 98.3 146.3 158.3 163.0 164.5 166.0 2014 37.6 101.1 127.8 137.8 141.8 140.5 2015 35.9 95.1 126.9 139.2 156.2 2016 57.0 164.2 205.4 216.4 2017 123.3 357.8 416.9 2018 122.8 320.6 2019 $ 28.5 Total $ 1,687.6 All outstanding liabilities for 2012 and subsequent years, net of reinsurance 508.0 All outstanding liabilities before 2012, net of reinsurance 20.6 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 528.6 Casualty Reinsurance Incurred Claims, IBNR and Loss Adjustment Expenses, Net of Reinsurance As at December 31, 2019 Total of IBNR Plus Expected Development on Reported Claims Cumulative Number of Reported Claims For the Years Ended December 31, Unaudited Prior Years Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 $ (in millions) 2012 233.8 232.0 243.3 234.6 231.6 232.6 241.5 244.1 34.1 1,770 2013 214.5 229.7 225.0 222.3 205.4 200.6 203.3 39.6 1,648 2014 205.0 207.7 216.2 209.6 203.2 205.9 44.3 1,732 2015 194.3 201.2 210.7 213.3 210.9 56.3 1,832 2016 233.4 245.9 245.6 255.6 89.0 1,759 2017 245.2 242.9 253.6 129.0 1,474 2018 229.2 258.7 166.9 1,051 2019 235.3 207.6 375 Total $ 1,867.4 Casualty Reinsurance Cumulative Paid Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Unaudited Prior Years Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 ($ in millions) 2012 2.2 17.7 41.9 65.3 96.2 117.4 134.1 143.8 2013 3.4 15.8 42.6 64.8 92.7 114.6 127.3 2014 2.5 13.8 37.8 60.2 86.4 107.4 2015 3.5 18.0 38.4 65.5 89.4 2016 9.3 33.6 64.2 96.3 2017 8.9 30.6 59.1 2018 7.2 33.6 2019 $ 9.2 Total $ 666.1 All outstanding liabilities for 2012 and subsequent years, net of reinsurance 1,201.2 All outstanding liabilities before 2012, net of reinsurance 401.0 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 1,602.2 Specialty Reinsurance Incurred Claims, IBNR and Loss Adjustment Expenses, Net of Reinsurance As at December 31, 2019 Total of IBNR Plus Expected Development on Reported Claims Cumulative Number of Reported Claims For the Years Ended December 31, Unaudited Prior Years Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 $ (in millions) 2012 175.8 199.2 188.3 173.9 172.3 172.9 169.5 167.1 5.4 638 2013 144.1 139.3 131.5 119.7 118.9 115.1 114.9 4.8 574 2014 152.0 140.2 132.1 123.0 125.8 124.3 8.1 621 2015 166.3 170.2 164.8 159.1 157.9 11.1 765 2016 239.3 240.3 238.4 230.8 23.2 916 2017 379.9 392.6 376.1 51.0 1,303 2018 398.4 397.5 67.3 1,282 2019 $ 476.7 154.6 1,080 Total $ 2,045.3 Specialty Reinsurance Cumulative Paid Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Unaudited Prior Years Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 ($ in millions) 2012 24.9 93.4 128.5 138.5 143.9 149.2 150.5 153.3 2013 25.0 70.8 86.8 94.1 101.1 101.1 102.0 2014 16.6 56.3 81.1 89.2 99.5 102.4 2015 17.7 56.4 104.2 122.1 131.4 2016 58.8 151.0 165.8 183.9 2017 94.8 238.9 270.9 2018 27.3 281.2 2019 $ 274.3 Total $ 1,499.4 All outstanding liabilities for 2012 and subsequent years, net of reinsurance 545.9 All outstanding liabilities before 2012, net of reinsurance 30.0 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 575.9 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | Reconciliation of Incurred and Paid Claims Development to total Provision for Losses and LAE Twelve Months Ended ($ in millions) Net outstanding liabilities: Insurance lines - Property insurance lines 190.7 - Casualty insurance lines 669.2 - Marine, aviation and energy insurance lines 591.5 - Financial and professional insurance lines 657.4 Total insurance lines 2,108.8 Reinsurance lines - Property catastrophe and other property reinsurance 528.6 - Casualty reinsurance 1,602.2 - Specialty reinsurance 575.9 Total reinsurance lines 2,706.7 Net loss and LAE 4,815.5 Reinsurance recoverable on unpaid losses: Insurance lines 1,772.8 Reinsurance lines 547.0 Total reinsurance recoverable on unpaid losses 2,319.8 Insurance lines other than short-duration — Unallocated claims incurred 44.0 Other reinsurance balances recoverable (1) (227.4 ) Other (0.1 ) (183.5 ) Provision for losses and LAE at the end of the year 6,951.8 ____________________ (1) Other reinsurance balances recoverable primarily include amounts that have been billed but not yet received. |
Short-duration Insurance Contracts, Schedule of Historical Claims Duration | Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years 1 2 3 4 5 6 7 8 Insurance 15.8 % 26.3 % 16.1 % 11.7 % 8.5 % 5.7 % 4.4 % 1.7 % Reinsurance 16.0 % 29.7 % 15.3 % 8.8 % 8.1 % 5.0 % 3.2 % 3.3 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Summary of Total Income Tax | Total income tax (benefit)/expense for the twelve months ended December 31, 2019 , 2018 and 2017 was allocated as follows: Twelve Months Ended December 31, 2019 2018 2017 ($ in millions) Income tax expense/(benefit) allocated to net loss $ 22.9 $ (10.2 ) $ (15.4 ) Income tax expense/(benefit) allocated to other comprehensive income 11.2 4.1 (17.4 ) Total income tax expense/(benefit) $ 34.1 $ (6.1 ) $ (32.8 ) |
Schedule of Income Tax by Taxing Authority | (Loss)/income from operations before tax and tax expense/(benefit) attributable to that (loss)/income for the twelve months ended December 31, 2019 , 2018 and 2017 is provided in the tables below: Twelve Months Ended December 31, 2019 (Loss) before tax Current tax (benefit)/expense Deferred tax (benefit)/expense Total tax (benefit)/expense ($ in millions) Bermuda $ (107.6 ) $ — $ — $ — U.S. (1) (2) (60.0 ) 1.0 6.5 7.4 U.K. (3) (45.7 ) (6.7 ) 17.3 10.6 Other (4) (5.5 ) 4.0 0.9 4.9 Total $ (218.8 ) $ (1.7 ) $ 24.7 $ 22.9 Twelve Months Ended December 31, 2018 (Loss) Current tax Deferred tax Total tax ($ in millions) Bermuda $ (72.1 ) $ — $ — $ — U.S. (81.0 ) 6.1 (8.1 ) (2.0 ) U.K. (4.7 ) (12.2 ) (0.1 ) (12.3 ) Other (4) 1.8 4.4 (0.3 ) 4.1 Total $ (156.0 ) $ (1.7 ) $ (8.5 ) $ (10.2 ) Twelve Months Ended December 31, 2017 (Loss) Current tax Deferred tax Total tax ($ in millions) Bermuda $ (130.0 ) $ — $ — $ — U.S. (140.3 ) — 1.1 1.1 U.K. 15.3 14.1 (33.3 ) (19.2 ) Other (26.8 ) 3.0 (0.3 ) 2.7 Total $ (281.8 ) $ 17.1 $ (32.5 ) $ (15.4 ) ______________ (1) The $1.0 million current tax expense includes $1.0 million relating to prior years. (2) The $6.5 million deferred tax expense includes a $9.9 million valuation allowance against the losses incurred by the U.S. branch of Aspen U.K. Also included is a $3.5 million benefit arising from an unrealized gain on investments, for which an equivalent tax expense has been included in Other Comprehensive Income. (3) The $17.3 million deferred tax movement comprises of a $10.9 million credit on operating losses and a $28.2 million expense in respect of a valuation allowance against the net deferred tax assets in the U.K. subsidiaries. (4) Included in the current tax expense of $4.0 million within “Other” is $1.0 million ( December 31, 2018 — $4.4 million ) withholding tax payable in Australia in respect of reinsurance premiums payable to Aspen Bermuda by the Australian branch of Aspen U.K. |
Income Tax Reconciliation | The reconciliation between the income tax expense/(benefit) and the statutory rate for the Company for the twelve months ended December 31, 2019 , 2018 and 2017 is provided in the table below: Twelve Months Ended December 31, 2019 2018 2017 Income Tax Reconciliation ($ in millions) Expected tax (benefit)/expense $ — $ — $ — Overseas statutory tax rates differential (21.2 ) (17.1 ) (41.5 ) Base erosion and anti-abuse tax (BEAT) expense 0.3 6.0 — Prior year adjustments (1) (1.7 ) 1.4 1.3 Valuation allowance (2) 42.6 7.1 (37.9 ) Impact of unrecognized tax benefits (3) — (12.8 ) 0.1 Restricted foreign tax credits 1.5 — 0.7 Australian non-resident withholding tax 1.0 4.4 0.9 Share-based payments (0.6 ) 0.2 (0.9 ) Foreign exchange — 0.1 (2.1 ) Non-deductible expenses — 0.7 0.4 Non-taxable items (0.1 ) (0.3 ) (0.9 ) Impact of changes in statutory tax rates 1.1 0.1 64.5 Total income tax expense/(benefit) $ 22.9 $ (10.2 ) $ (15.4 ) ________________ (1) The submission dates for filing income tax returns for the Company’s U.S. and U.K. operating subsidiaries are after the submission date of this report. Accordingly, the final tax liabilities may differ from the estimated tax expense included in this report and may result in prior year adjustments being reported. The prior period adjustments for the twelve months ended December 31, 2019 , 2018 and 2017 predominantly relate to the determination of results under U.K. GAAP upon which the U.K. tax returns are based. These items can only be ultimately determined after this report is filed. (2) The 2019 valuation allowance includes $9.9 million relating to the losses incurred by the U.S. branch of Aspen U.K. and $28.2 million relating to deferred tax assets in U.K. subsidiaries. (3) In 2018, the $12.8 million benefit relates to the successful conclusion of a U.K. tax inquiry which enabled the release of a provision we had been holding against the potential disallowance of a prior year adjustment. |
Schedule of Unrecognized Tax Benefits | An unrecognized tax benefit of $11.0 million relating to tax deductions for certain expenses was released during the year ended December 31, 2018 following the completion of the U.K. tax authority review. Twelve Months Ended December 31, 2019 2018 ($ in millions) Unrecognized tax benefits balance at January 1 $ — $ 11.2 Foreign exchange re-translation — (0.2 ) Prior year reductions $ — (11.0 ) Unrecognized tax benefits balance at December 31 $ — $ — |
Tax Effects of Deferred Tax Assets and Deferred Tax Liabilities | The tax effects of temporary differences and carryforwards that give rise to deferred tax assets and deferred tax liabilities are presented in the following table as at December 31, 2019 and 2018 : As at December 31, 2019 2018 ($ in millions) Deferred tax assets: Share-based payments $ 0.3 $ 2.2 Operating loss carryforwards 121.5 126.4 Net loss reserves and loss adjustment expenses 5.0 5.0 Unrealized losses on investments — 0.8 Accrued expenses 7.1 7.9 Foreign tax credit carryforwards — 3.8 Unearned premiums 15.3 15.5 Deferred policy acquisition costs 0.1 — Office properties and equipment 16.8 11.1 Operating lease liabilities 21.5 3.3 Other temporary differences 6.1 — Total gross deferred tax assets 193.7 176.0 Less valuation allowance (149.2 ) (111.9 ) Net deferred tax assets $ 44.5 $ 64.1 Deferred tax liabilities: Equalization provision reserves $ — $ — Unrealized (gains) on investments (2.7 ) — Intangible assets (1.6 ) (2.5 ) Deferred policy acquisition costs (16.4 ) (18.5 ) Quota share losses — (0.6 ) Loss portfolio transfer costs — (6.1 ) Operating lease assets (19.9 ) — Other temporary differences (3.9 ) (1.0 ) Total gross deferred tax (liabilities) (44.5 ) (28.7 ) Net deferred tax assets $ — $ 35.4 |
Capital Structure (Tables)
Capital Structure (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Summary of Authorized and Issued Share Capital | The following table provides a summary of the Company’s authorized and issued share capital as at December 31, 2019 and 2018 : As at December 31, 2019 At December 31, 2018 Number $ in Thousands Number $ in Thousands Authorized share capital: Ordinary Shares $0.01 per share ( 2018 — 0.15144558¢ per share 70,000,000 700 969,629,030 1,469 Non-Voting Shares 0.15144558¢ per share — — 6,787,880 10 Preference Shares 0.15144558¢ per share 30,000,000 45 100,000,000 152 Total authorized share capital 745 1,631 Issued share capital: Issued ordinary shares $0.01 per share ( 2018 — 0.15144558¢ per share 60,395,839 604 59,743,156 90 Issued 5.95% preference shares of 0.15144558¢ each with a liquidation preference of $25 per share 11,000,000 17 11,000,000 17 Issued 5.625% preference shares of 0.15144558¢ each with a liquidation preference of $25 per share 10,000,000 15 10,000,000 15 Issued 5.625% preference shares of 0.15144558¢ represented by depositary shares, each with a liquidation preference of $25 per share (1) 10,000 — — — Total issued share capital 636 122 ______________ (1) Each depositary share represents a 1/1000 th interest in a share of the 5.625% preference shares. |
Summary of Ordinary Shares | The following table summarizes transactions in the Company’s ordinary shares during the years ended December 31, 2019 and 2018 : Number of Ordinary Shares 2019 2018 Ordinary shares of 0.015144558c per share Ordinary shares in issue at the beginning of the year 59,743,156 59,474,085 Ordinary shares issued to employees under the 2013 share incentive plan and/or 2008 share purchase plan 144,269 229,318 Ordinary shares issued to non-employee directors 6,993 39,753 Ordinary shares canceled (59,894,418 ) — Total ordinary shares of 0.015144558c per share in issue — 59,743,156 Ordinary shares of $0.01 per share New ordinary shares issued of $0.01 per share 60,395,839 Ordinary shares issued at the end of the year 60,395,839 |
Statutory Requirements and Di_2
Statutory Requirements and Dividends Restrictions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text Block [Abstract] | |
Summary of Statutory Requirements and Dividends Restrictions | Actual and required statutory capital and surplus for the principal operating subsidiaries of the Company, excluding its Lloyd’s syndicate, as at December 31, 2019 and December 31, 2018 were estimated as follows: As at December 31, 2019 U.S. Bermuda U.K. ($ in millions) Required statutory capital and surplus $ 404.0 $ 788.4 $ 782.0 Actual statutory capital and surplus $ 502.0 $ 1,380.6 $ 841.9 As at December 31, 2018 U.S. Bermuda U.K. ($ in millions) Required statutory capital and surplus $ 351.0 $ 801.9 $ 772.1 Actual statutory capital and surplus $ 543.0 $ 1,575.5 $ 857.9 |
Dividends (Tables)
Dividends (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Summary of Declared Dividends | Dividends. On February 28, 2020, the Company’s Board of Directors declared the following dividends: Dividend Payable on: Record Date: 5.950% Preference Shares (AHL PRC) $ 0.3719 April 1, 2020 March 15, 2020 5.625% Preference Shares (AHL PRD) $ 0.3516 April 1, 2020 March 15, 2020 5.625% Preference Shares, represented by Depositary Shares (AHL PRE) (1) $ 351.56 April 1, 2020 March 15, 2020 ______________ (1) The newly-designated 5.625% Preference Shares are represented by Depositary Shares, each representing a 1/1000 th interest in a share of the 5.625% Preference Shares. The dividend paid per Depositary Share is likewise 1/1000 th of the declared dividend, equivalent to $0.35156 per Depositary Share. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Intangible Assets | The following table provides a summary of the Company’s intangible assets for the twelve months ended December 31, 2019 and 2018 : Twelve Months Ended December 31, 2019 Beginning of the Year Additions/(Disposals) Amortization Impairment End of the Year ($ in millions) Intangible Assets Trademarks $ 2.5 $ — $ (0.6 ) $ — $ 1.9 Agency Relationships 1.8 — (0.6 ) — 1.2 Renewal Rights 1.0 — (0.1 ) (0.9 ) — Non-compete Agreements 0.4 — (0.2 ) — 0.2 Insurance Licenses 16.7 — — — 16.7 Goodwill 3.9 — — — 3.9 Total $ 26.3 $ — $ (1.5 ) $ (0.9 ) $ 23.9 Twelve Months Ended December 31, 2018 Beginning of the Year Additions/(Disposals) Amortization Impairment End of the Year ($ in millions) Intangible Assets Trademarks $ 2.9 $ — $ (0.4 ) $ — $ 2.5 Agency Relationships 2.3 — (0.5 ) — 1.8 Renewal Rights 1.4 — (0.4 ) — 1.0 Non-compete Agreements 0.7 — (0.3 ) — 0.4 Insurance Licenses 16.7 — — — 16.7 Goodwill 3.9 — — — 3.9 Total $ 27.9 $ — $ (1.6 ) $ — $ 26.3 |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lease, Cost | Operating lease charge. The following table summarizes the operating lease charge for the twelve months ended December 31, 2019 : For the Twelve Months Ended December 31, 2019 ($ in millions) Amortization charge on right-of-use operating leased assets $ 13.4 Interest on operating lease liabilities 4.6 Operating lease charge $ 18.0 |
Lessee, Operating Lease, Liability | Lease Liabilities. The following table summarizes the maturity of lease liabilities under non-cancellable leases as of December 31, 2019 : December 31, 2019 ($ in millions) Operating leases — maturities 2020 $ 17.7 2021 16.4 2022 13.0 2023 12.2 2024 11.7 Later years 73.6 Total minimum lease payments $ 144.6 Less imputed interest (31.4 ) Total lease liabilities $ 113.2 |
Summary of Other Lease Information | Other lease information. The following table summarizes the cash flows on operating leases for the twelve months ended December 31, 2019 and other supplemental information: For the Twelve Months Ended December 31, 2019 ($ in millions) Cash paid for amounts included in the measurement of lease liabilities - Operating cash outflow from operating leases $ (18.0 ) Right-of-use assets obtained in exchange for lease obligations - Operating leases $ 37.3 Reduction to Right-of-use assets resulting from reductions to lease obligations - Operating leases $ 6.1 Weighted Averages - Operating leases, remaining lease terms (years) 10.1 - Operating leases, average discount rate 5.0 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Company's Restricted Assets | The following table details the forms and value of Company’s material restricted assets as at December 31, 2019 and 2018 : As at December 31, 2019 At December 31, 2018 ($ in millions, except percentages) Regulatory trusts and deposits: Affiliated transactions $ 754.9 $ 1,033.9 Third party 2,766.6 2,511.7 Letters of credit / guarantees (1) 635.4 771.1 Other investments — real estate fund 111.4 102.5 Total restricted assets $ 4,268.3 $ 4,419.2 Total as percent of investable assets (2) 54.4 % 56.4 % _______________ (1) As at December 31, 2019 , the Company had pledged funds of $635.4 million ( December 31, 2018 — $771.1 million ) as collateral for the secured letters of credit. (2) Investable assets comprise total investments, cash and cash equivalents, accrued interest, receivables for securities sold and payables for securities purchased. |
Concentration of Credit Risk (T
Concentration of Credit Risk (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Risks and Uncertainties [Abstract] | |
Schedule Of Gross Written Premium From Major Brokers | The following table shows the largest brokers that the Company transacted business within the three years ended December 31, 2019 and the proportion of gross written premiums from each of those brokers. Twelve Months Ended December 31, 2019 2018 2017 (in percentages) Aon Corporation (1) 13.4 % 15.8 % 16.4 % Marsh & McLennan Companies, Inc. 13.6 15.8 16.0 Willis Group Holdings, Ltd. 10.3 12.4 13.1 Other brokers/non-broker sources (2) 62.7 56.0 54.5 Total 100.0 % 100.0 % 100.0 % Gross written premiums ($ millions) $ 3,442.4 $ 3,446.9 $ 3,360.9 ______________ (1) On March 9, 2020, Aon plc and Willis Towers Watson announced a definitive agreement to combine, and expect the transaction to close in the first half of 2021. (2) No other individual broker accounted for more than 10% of total gross written premiums. |
Reclassifications from Accumu_2
Reclassifications from Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income Reclassification | The following table sets out the components of the Company’s AOCI that are reclassified into the audited condensed consolidated statement of operations for the twelve months ended December 31, 2019 and 2018 : Amount Reclassified from AOCI Details about the AOCI Components Twelve Months Ended December 31, 2019 Twelve Months Ended December 31, 2018 Affected Line Item in the Consolidated Statement of Operations ($ in millions) Available for sale securities: Realized (losses)/gains on sale of securities $ (14.4 ) $ 6.7 Realized and unrealized investment gains Realized gains/(losses) on sale of securities 7.6 (11.9 ) Realized and unrealized investment losses (6.8 ) (5.2 ) (Loss) from operations before income tax Tax on net realized gains of securities — 0.7 Income tax (expense)/benefit $ (6.8 ) $ (4.5 ) Net (loss) Realized derivatives: Net realized gains/(losses) on settled derivatives 4.8 (1.2 ) General, administrative and corporate expenses Tax on settled derivatives (0.8 ) 0.2 Income tax (expense)/benefit $ 4.0 $ (1.0 ) Net (loss) Total reclassifications from AOCI to the statement of operations, net of income tax $ (2.8 ) $ (5.5 ) Net (loss) |
Credit Facility and Long-term_2
Credit Facility and Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Summary of Contractual Obligations Under Long-term Debts | The following table summarizes our contractual obligations under long-term debt as at December 31, 2019 . Payments Due By Period Contractual Basis Less than 1-3 years 3-5 years More than 5 years Total ($ in millions) Long-term Debt Obligations $ — $ 300.0 $ — $ — $ 300.0 |
History, Organization and Bus_2
History, Organization and Business Combination - Narrative (Details) - USD ($) | Feb. 28, 2020 | Sep. 20, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 |
Class of Stock [Line Items] | |||||
Business acquisition, share price | $ 42.75 | ||||
Authorized share capital | $ 745,434 | $ 1,631,000 | |||
Number of ordinary shares | 70,000,000 | 969,629,030 | |||
Ordinary shares, par value | $ 0.01 | $ 0.0015144558 | |||
Number of preference shares | 30,000,000 | 100,000,000 | |||
Preference shares, par value | $ 0.0015144558 | $ 0.0015144558 | |||
Ordinary shares, issued | 60,395,839 | ||||
5.950% Preference Shares (AHL PRC) | |||||
Class of Stock [Line Items] | |||||
Preference shares, par value | $ 0.0015144558 | $ 0.0015144558 | |||
Preference shares, rate | 5.95% | 5.95% | |||
5.625% Preference Shares (AHL PRD) | |||||
Class of Stock [Line Items] | |||||
Preference shares, par value | $ 0.0015144558 | $ 0.0015144558 | |||
Preference shares, rate | 5.625% | 5.625% | 5.625% | 5.625% |
Basis of Preparation and Sign_3
Basis of Preparation and Significant Accounting Policies - Additional Information (Details) $ in Millions | Jan. 01, 2020USD ($) | Dec. 31, 2019USD ($)period | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 01, 2019USD ($) | |
Property, Plant and Equipment [Line Items] | ||||||
Threshold Period of Value Decline in Equity Securities to be considered Other than Temporary Impairment | 12 months | |||||
Non-Payment Of Dividends, Number Of Periods | period | 6 | |||||
Right-of-use operating lease assets | $ 93.5 | $ 0 | $ 88.1 | |||
Operating lease liabilities | $ 113.2 | $ 95.5 | ||||
Operating lease, weighted average discount rate (percent) | 5.00% | |||||
Operating lease charge | $ 18 | 0 | $ 0 | |||
Amortization of right-of-use operating lease assets | 13.4 | $ 0 | 0 | |||
Interest on operating lease liability | $ 4.6 | |||||
Computer Equipment | Minimum | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, Plant and Equipment, Useful Life | 3 years | |||||
Computer Equipment | Maximum | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, Plant and Equipment, Useful Life | 5 years | |||||
Furniture and Fixtures | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, Plant and Equipment, Useful Life | 4 years | |||||
Leasehold Improvements | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, Plant and Equipment, Useful Life | 15 years | |||||
Fixed maturities | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Percentage of Value Decline in Securities to be considered Other than Temporary Impairment | 20.00% | |||||
Restatement Adjustment | Retained earnings | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Retained earnings restatement | [1] | $ 15.6 | ||||
Subsequent Event | Accounting Standards Update 2016-13 [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Available-for-sale investment portfolio | $ 0.5 | |||||
Financing Receivable, Allowance for Credit Loss, Period Increase (Decrease) | (3.7) | |||||
Subsequent Event | Accounting Standards Update 2016-13 [Member] | Retained earnings | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Cumulative effect of new accounting principle in period of adoption | $ 4.2 | |||||
[1] | Reinsurance premiums payables and retained earnings have been restated by $15.6 million from January 1, 2017 to account for additional ceded premiums on excess of loss ceded reinsurance contracts for periods December 31, 2016 and prior. |
Segment Reporting - Additional
Segment Reporting - Additional Information (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2019segement | |
Segment Reporting [Abstract] | |
Number of business segments | 2 |
Segment Reporting - Summary of
Segment Reporting - Summary of Gross and Net Written and Earned Premiums, Underwriting Results, Ratios and Reserves for Each of Company's Business Segments (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | ||||
Gross written premiums | $ 3,442.4 | $ 3,446.9 | $ 3,360.9 | |
Net written premiums | 2,427.9 | 2,082 | 2,212.5 | |
Gross earned premiums | 3,422.4 | 3,534.4 | 3,209.2 | |
Net earned premium | 2,293.3 | 2,214.7 | 2,306.6 | |
Losses and loss adjustment expenses | 1,679.7 | 1,573 | 1,994.7 | |
Amortization of deferred policy acquisition costs | 412.7 | 371.6 | 400.5 | |
General and administrative expenses | 341.5 | 357.7 | 411.2 | |
Underwriting income (loss) | (140.6) | (87.6) | (499.8) | |
Corporate expenses | (54.5) | (56.8) | (58.3) | |
Non-operating expenses | (125.6) | (77.2) | (32.7) | |
Net investment income | 197.3 | 198.2 | 189 | |
Realized and unrealized investment gains | 97.1 | 110 | 148.9 | |
Realized and unrealized investment losses | (10.9) | (174.7) | (28.4) | |
Realized loss on debt extinguishment | (5.5) | (8.6) | 0 | |
Change in fair value of loan notes issued by variable interest entities | (3.1) | (4.4) | 21.2 | |
Change in fair value of derivatives | (144.2) | (31.8) | 27.7 | |
Interest expense on long term debt | (20.2) | (25.9) | (29.5) | |
Net realized and unrealized foreign exchange (losses) | (11.8) | (3.5) | (23.9) | |
Other income | 4.9 | 9 | 8.9 | |
Other expenses | (1.7) | (2.7) | (4.9) | |
(Loss) from operations before income tax | (218.8) | (156) | (281.8) | |
Income tax (expense)/benefit | (22.9) | 10.2 | 15.4 | |
Net (loss) | (241.7) | (145.8) | (266.4) | |
Losses and loss adjustment expenses | 6,951.8 | 7,074.2 | 6,749.5 | $ 5,319.9 |
Net Reserves for Losses and LAE | $ 4,632 | $ 4,996.6 | $ 5,234.3 | $ 4,759.2 |
Ratios | ||||
Loss ratio | 73.20% | 71.00% | 86.50% | |
Policy acquisition expense ratio | 18.00% | 16.80% | 17.40% | |
General and administrative expense ratio | 22.70% | 22.20% | 21.80% | |
Expense ratio | 40.70% | 39.00% | 39.20% | |
Combined ratio | 113.90% | 110.00% | 125.70% | |
Non-operating expenses related to Merger Agreement | $ 103.4 | $ 39 | ||
Non-operating expenses related to Effectiveness And Efficiency Program | 22.2 | 37.5 | $ 15.2 | |
Non-operating expenses related to impairment charges on lease assets | 12.3 | |||
Non-operating expenses related to retention costs | 11.3 | |||
Write back of buy out provision | (14.1) | |||
Reinsurance | ||||
Segment Reporting Information [Line Items] | ||||
Net written premiums | 1,251.1 | 1,182.9 | 1,250 | |
Net earned premium | 1,255.2 | 1,256.4 | 1,206.1 | |
Losses and loss adjustment expenses | 2,605.9 | 2,843.6 | 2,917.1 | |
Net Reserves for Losses and LAE | $ 2,605.9 | $ 2,843.6 | $ 2,917.1 | |
Ratios | ||||
Loss ratio | 73.10% | 73.80% | 92.60% | |
Policy acquisition expense ratio | 21.10% | 20.80% | 19.50% | |
General and administrative expense ratio | 8.90% | 9.40% | 13.00% | |
Expense ratio | 30.00% | 30.20% | 32.50% | |
Combined ratio | 103.10% | 104.00% | 125.10% | |
Insurance | ||||
Segment Reporting Information [Line Items] | ||||
Net written premiums | $ 1,176.8 | $ 899.1 | $ 962.5 | |
Net earned premium | 1,038.1 | 958.3 | 1,100.5 | |
Losses and loss adjustment expenses | 2,026.1 | 2,153 | 2,317.2 | |
Net Reserves for Losses and LAE | $ 2,026.1 | $ 2,153 | $ 2,317.2 | |
Ratios | ||||
Loss ratio | 73.40% | 67.40% | 79.80% | |
Policy acquisition expense ratio | 14.20% | 11.60% | 15.00% | |
General and administrative expense ratio | 22.10% | 25.00% | 23.10% | |
Expense ratio | 36.30% | 36.60% | 38.10% | |
Combined ratio | 109.70% | 104.00% | 117.90% | |
Operating Segments | Reinsurance | ||||
Segment Reporting Information [Line Items] | ||||
Gross written premiums | $ 1,485.5 | $ 1,495.7 | $ 1,548.5 | |
Net written premiums | 1,251.1 | 1,182.9 | 1,250 | |
Gross earned premiums | 1,494.9 | 1,593.9 | 1,451.8 | |
Net earned premium | 1,255.2 | 1,256.4 | 1,206.1 | |
Losses and loss adjustment expenses | 917.9 | 927 | 1,116.4 | |
Amortization of deferred policy acquisition costs | 264.9 | 260.9 | 235.5 | |
General and administrative expenses | 111.7 | 118.5 | 157.3 | |
Underwriting income (loss) | (39.3) | (50) | (303.1) | |
Operating Segments | Insurance | ||||
Segment Reporting Information [Line Items] | ||||
Gross written premiums | 1,956.9 | 1,951.2 | 1,812.4 | |
Net written premiums | 1,176.8 | 899.1 | 962.5 | |
Gross earned premiums | 1,927.5 | 1,940.5 | 1,757.4 | |
Net earned premium | 1,038.1 | 958.3 | 1,100.5 | |
Losses and loss adjustment expenses | 761.8 | 646 | 878.3 | |
Amortization of deferred policy acquisition costs | 147.8 | 110.7 | 165 | |
General and administrative expenses | 229.8 | 239.2 | 253.9 | |
Underwriting income (loss) | $ (101.3) | $ (37.6) | $ (196.7) |
Segment Reporting - Summary o_2
Segment Reporting - Summary of the Schedule of the Company's gross written premiums based on the location of the insured risk (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Gross written premiums | $ 3,442.4 | $ 3,446.9 | $ 3,360.9 |
Australia/Asia | |||
Segment Reporting Information [Line Items] | |||
Gross written premiums | 215.9 | 175.9 | 167.3 |
Caribbean | |||
Segment Reporting Information [Line Items] | |||
Gross written premiums | 9.3 | 7.7 | 17.6 |
Europe | |||
Segment Reporting Information [Line Items] | |||
Gross written premiums | 82.8 | 92.6 | 94.5 |
United Kingdom | |||
Segment Reporting Information [Line Items] | |||
Gross written premiums | 295.7 | 290.1 | 258.3 |
United States & Canada | |||
Segment Reporting Information [Line Items] | |||
Gross written premiums | 2,003.9 | 1,875.9 | 1,729.3 |
Worldwide excluding United States | |||
Segment Reporting Information [Line Items] | |||
Gross written premiums | 63 | 70.1 | 88.1 |
Worldwide including United States | |||
Segment Reporting Information [Line Items] | |||
Gross written premiums | 614.9 | 775.8 | 868.6 |
Others | |||
Segment Reporting Information [Line Items] | |||
Gross written premiums | $ 156.9 | $ 158.8 | $ 137.2 |
Investments - Summary of Invest
Investments - Summary of Investment Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | $ 209.1 | $ 207.1 | $ 200.1 |
Investment expenses | (11.8) | (8.9) | (11.1) |
Net investment income | 197.3 | 198.2 | 189 |
Fixed income securities | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 128.2 | 134.1 | 133.3 |
Short-term investments | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 2.3 | 1.4 | 0.4 |
Short-term investment, Trading | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 2.5 | 0.4 | 0.8 |
Fixed term deposits (included in cash and cash equivalents) | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 19.5 | 14.2 | 6.2 |
Equity securities — Trading | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 0 | 2.1 | 13.6 |
Catastrophe bonds — Trading | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 2.3 | 2.8 | 1.8 |
Privately-held investments — Trading | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 3.4 | 0 | 0 |
Other investments, at fair value | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 8.9 | 2.5 | 0 |
Fixed Income Securities | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | $ 42 | $ 49.6 | $ 44 |
Investments - Net Realized and
Investments - Net Realized and Unrealized Investment Gains and Losses and Change in Unrealized Gains and Losses on Investments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Fixed income securities - gross realized gains | $ 14.4 | $ 6.4 | $ 10.2 |
Fixed income securities - gross realizes (losses) | (7.3) | (11.4) | (6.6) |
Other-than-temporary impairments | 0 | 0 | (0.7) |
Fixed income securities, trading - gross realized gains | 34.3 | 4.6 | 9.7 |
Fixed income securities, trading, gross realizes (losses) | (2.6) | (25) | (4.5) |
Equity securities - gross realized gains | 0 | 94.5 | 59 |
Equity securities - gross realized (losses) | 0 | (20.1) | (13.7) |
Catastrophe bonds | 0.9 | 2.2 | (2.4) |
Net change in gross unrealized gains / losses | 47.2 | (112.1) | 60.3 |
Total net realized and unrealized investment gains/(losses) recorded in the statement of operations | 86.2 | (64.7) | 120.5 |
Change in available for sale net unrealized gain/(losses): | |||
Fixed income securities | 164.9 | (81.3) | (14.8) |
Change in taxes | (13.6) | 4.8 | 2 |
Total change in net unrealized gains/(losses), net of taxes recorded in other comprehensive income | 151.3 | (76.5) | (12.8) |
Short-term investments | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Fixed income securities - gross realized gains | 0 | 0 | 0.1 |
Fixed income securities, trading - gross realized gains | 0 | 0.1 | 2.7 |
Fixed income securities, trading, gross realizes (losses) | 0 | (4.2) | 0 |
Cash and cash equivalents | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Fixed income securities - gross realized gains | 0.1 | 0.3 | 0.4 |
Fixed income securities - gross realizes (losses) | (0.2) | (0.5) | (0.1) |
Fixed income securities, trading - gross realized gains | 0 | 1.5 | 1.3 |
Fixed income securities, trading, gross realizes (losses) | (0.3) | (0.3) | 0 |
Privately-held investments | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Fixed income securities, trading, gross realizes (losses) | (0.2) | 0 | 0 |
MVI | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Income/(loss) from equity method investment | (0.1) | (0.2) | (0.1) |
Bene | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Income/(loss) from equity method investment | 0 | (0.9) | (0.3) |
Digital Re | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Income/(loss) from equity method investment | (0.2) | 0.4 | 0 |
Chaspark | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Income/(loss) from equity method investment | 0 | 0 | 0.9 |
Disposal Group, Disposed of by Sale, Not Discontinued Operations | AgriLogic | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross realized gain on sale of AgriLogic | $ 0 | $ 0 | $ 4.3 |
Investments - Cost, Gross Unrea
Investments - Cost, Gross Unrealized Gains and Losses, and Estimated Fair Value of Available for Sale Investments in Fixed Income Maturities and Short-Term Investments (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross unrealized gains | $ 116.8 | $ 26.3 |
Gross unrealized losses | (3.8) | (77.9) |
Fair market value | 4,958.2 | 5,230.7 |
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | 4,845.2 | 5,282.3 |
Total short-term investments — Available for sale | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Fair market value | 117.6 | 105.6 |
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | 117.6 | 105.6 |
Total fixed income securities — Available for sale | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross unrealized gains | 116.8 | 26.3 |
Gross unrealized losses | (3.8) | (77.9) |
Fair market value | 5,075.8 | 5,336.3 |
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | 4,962.8 | 5,387.9 |
U.S. government | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross unrealized gains | 31.3 | 6.8 |
Gross unrealized losses | (1.4) | (16.1) |
Fair market value | 1,413.1 | 1,404.2 |
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | 1,383.2 | 1,413.5 |
U.S. agency | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross unrealized gains | 0.9 | 0.1 |
Gross unrealized losses | 0 | (0.4) |
Fair market value | 39.6 | 47.4 |
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | 38.7 | 47.7 |
Municipal | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross unrealized gains | 2.9 | 1.3 |
Gross unrealized losses | 0 | (0.8) |
Fair market value | 50.7 | 47.2 |
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | 47.8 | 46.7 |
Corporate | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross unrealized gains | 54.8 | 7.8 |
Gross unrealized losses | (0.6) | (40.5) |
Fair market value | 1,959.8 | 2,206.2 |
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | 1,905.6 | 2,238.9 |
Non-U.S. government-backed corporate | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross unrealized gains | 0.5 | 0.2 |
Gross unrealized losses | (0.1) | (0.2) |
Fair market value | 86.5 | 93.2 |
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | 86.1 | 93.2 |
Non-U.S government | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross unrealized gains | 4.5 | 3.6 |
Gross unrealized losses | (0.4) | (0.8) |
Fair market value | 328.8 | 402.6 |
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | 324.7 | 399.8 |
Asset-backed | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | (0.1) |
Fair market value | 0.2 | 17.3 |
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | 0.2 | 17.4 |
Non-agency commercial mortgage-backed securities | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross unrealized gains | 0 | |
Gross unrealized losses | (0.2) | |
Fair market value | 6.5 | |
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | 6.7 | |
Agency mortgage-backed | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross unrealized gains | 21.9 | 6.5 |
Gross unrealized losses | (1.1) | (19) |
Fair market value | 1,073 | 1,012.6 |
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | $ 1,052.2 | $ 1,025.1 |
Investments - Cost, Gross Unr_2
Investments - Cost, Gross Unrealized Gains and Losses, and Estimated Fair Value of Trading Investments in Fixed Income Maturities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Debt Securities, Trading, Amortized Cost | $ 1,106.6 | $ 1,205 |
Fixed income securities - trading | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross Unrealized Gains | 24.2 | 6.3 |
Gross Unrealized Losses | (2) | (23.5) |
Fair market value, trading | 1,128.8 | 1,187.8 |
Debt Securities, Trading, Amortized Cost | 1,106.6 | 1,205 |
Short-term investments | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair market value, trading | 79.2 | 9.5 |
Debt Securities, Trading, Amortized Cost | 79.2 | 9.5 |
Equity securities — Trading | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross Unrealized Gains | 0.2 | |
Gross Unrealized Losses | 0 | |
Fair market value, trading | 2.7 | |
Debt Securities, Trading, Amortized Cost | 2.5 | |
Catastrophe Bonds | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross Unrealized Gains | 0 | 0.1 |
Gross Unrealized Losses | (0.8) | (1.8) |
Fair market value, trading | 28.6 | 36.2 |
Debt Securities, Trading, Amortized Cost | 29.4 | 37.9 |
Commercial mortgage loans | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross Unrealized Gains | 0.3 | |
Gross Unrealized Losses | 0 | |
Fair market value, trading | 156.6 | |
Debt Securities, Trading, Amortized Cost | 156.3 | |
Middle market loans | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross Unrealized Gains | 0.2 | |
Gross Unrealized Losses | (0.2) | |
Fair market value, trading | 111.7 | |
Debt Securities, Trading, Amortized Cost | 111.7 | |
Securities, asset-backed | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Fair market value, trading | 8.7 | |
Debt Securities, Trading, Amortized Cost | 8.7 | |
Privately-held investments | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross Unrealized Gains | 0.7 | |
Gross Unrealized Losses | (0.2) | |
Fair market value, trading | 279.7 | 0 |
Debt Securities, Trading, Amortized Cost | 279.2 | |
Total - Trading | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross Unrealized Gains | 24.9 | 6.4 |
Gross Unrealized Losses | (3) | (25.3) |
Fair market value, trading | 1,516.3 | 1,233.5 |
Debt Securities, Trading, Amortized Cost | 1,494.4 | 1,252.4 |
U.S. government | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross Unrealized Gains | 1.8 | 1.6 |
Gross Unrealized Losses | (0.1) | (0.5) |
Fair market value, trading | 185 | 147.7 |
Debt Securities, Trading, Amortized Cost | 183.3 | 146.6 |
Municipal | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross Unrealized Gains | 0.1 | 0 |
Gross Unrealized Losses | 0 | (0.1) |
Fair market value, trading | 3.2 | 2.7 |
Debt Securities, Trading, Amortized Cost | 3.1 | 2.8 |
Corporate | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross Unrealized Gains | 11.6 | 2.6 |
Gross Unrealized Losses | (0.1) | (16.6) |
Fair market value, trading | 243.2 | 720.2 |
Debt Securities, Trading, Amortized Cost | 231.7 | 734.2 |
Non-U.S government | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross Unrealized Gains | 7.4 | 1.9 |
Gross Unrealized Losses | (0.1) | (5.2) |
Fair market value, trading | 151.2 | 265.4 |
Debt Securities, Trading, Amortized Cost | 143.9 | 268.7 |
Asset-backed | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross Unrealized Gains | 2.4 | 0 |
Gross Unrealized Losses | (1.7) | 0 |
Fair market value, trading | 492.4 | 2.4 |
Debt Securities, Trading, Amortized Cost | 491.7 | 2.4 |
Agency mortgage-backed | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross Unrealized Gains | 0.9 | 0.2 |
Gross Unrealized Losses | 0 | (1.1) |
Fair market value, trading | 53.8 | 49.4 |
Debt Securities, Trading, Amortized Cost | $ 52.9 | $ 50.3 |
Investments Investments - Distr
Investments Investments - Distribution of Commercial Mortgage and Middle Market Loans (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Commercial mortgage loans | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |
Fair market value, trading | $ 156.6 |
Concentration risk percentage | 100.00% |
Middle market loans | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |
Fair market value, trading | $ 111.7 |
Concentration risk percentage | 100.00% |
Investment, Net Carrying Value | Commercial mortgage loans | Product Concentration Risk | Office building | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |
Fair market value, trading | $ 21.9 |
Concentration risk percentage | 14.00% |
Investment, Net Carrying Value | Commercial mortgage loans | Product Concentration Risk | Apartment | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |
Fair market value, trading | $ 48.3 |
Concentration risk percentage | 31.00% |
Investment, Net Carrying Value | Commercial mortgage loans | Product Concentration Risk | Hotel | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |
Fair market value, trading | $ 47.7 |
Concentration risk percentage | 30.00% |
Investment, Net Carrying Value | Commercial mortgage loans | Product Concentration Risk | Other commercial | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |
Fair market value, trading | $ 17 |
Concentration risk percentage | 11.00% |
Investment, Net Carrying Value | Commercial mortgage loans | Product Concentration Risk | Retail | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |
Fair market value, trading | $ 15.2 |
Concentration risk percentage | 10.00% |
Investment, Net Carrying Value | Commercial mortgage loans | Product Concentration Risk | Industrial | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |
Fair market value, trading | $ 6.5 |
Concentration risk percentage | 4.00% |
Investment, Net Carrying Value | Middle market loans | Product Concentration Risk | Materials | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |
Fair market value, trading | $ 29.5 |
Concentration risk percentage | 26.00% |
Investment, Net Carrying Value | Middle market loans | Product Concentration Risk | Financials | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |
Fair market value, trading | $ 22.2 |
Concentration risk percentage | 20.00% |
Investment, Net Carrying Value | Middle market loans | Product Concentration Risk | Industrials | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |
Fair market value, trading | $ 18.9 |
Concentration risk percentage | 17.00% |
Investment, Net Carrying Value | Middle market loans | Product Concentration Risk | Consumer discretionary | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |
Fair market value, trading | $ 14.2 |
Concentration risk percentage | 13.00% |
Investment, Net Carrying Value | Middle market loans | Product Concentration Risk | Health care | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |
Fair market value, trading | $ 8.2 |
Concentration risk percentage | 7.00% |
Investment, Net Carrying Value | Middle market loans | Product Concentration Risk | Energy | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |
Fair market value, trading | $ 7.4 |
Concentration risk percentage | 7.00% |
Investment, Net Carrying Value | Middle market loans | Product Concentration Risk | Consumer staples | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |
Fair market value, trading | $ 6.4 |
Concentration risk percentage | 6.00% |
Investment, Net Carrying Value | Middle market loans | Product Concentration Risk | Information technology | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |
Fair market value, trading | $ 4.9 |
Concentration risk percentage | 4.00% |
U.S. | Investment, Net Carrying Value | Commercial mortgage loans | Geographic Concentration Risk | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |
Fair market value, trading | $ 85.5 |
Concentration risk percentage | 55.00% |
U.S. | Investment, Net Carrying Value | Middle market loans | Geographic Concentration Risk | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |
Fair market value, trading | $ 91.8 |
Concentration risk percentage | 82.00% |
International | Investment, Net Carrying Value | Commercial mortgage loans | Geographic Concentration Risk | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |
Fair market value, trading | $ 71.1 |
Concentration risk percentage | 45.00% |
International | Investment, Net Carrying Value | Middle market loans | Geographic Concentration Risk | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |
Fair market value, trading | $ 19.9 |
Concentration risk percentage | 18.00% |
Investments Investments - Loan-
Investments Investments - Loan-to-Value Ratios (Details) $ in Millions | Dec. 31, 2019USD ($) |
Middle market loans | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Fair market value, trading | $ 111.7 |
Middle market loans | Less than 50 Percent | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Fair market value, trading | 90.6 |
Middle market loans | 50 to 60 Percent | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Fair market value, trading | 21.1 |
Commercial mortgage loans | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Fair market value, trading | 156.6 |
Commercial mortgage loans | 50 to 60 Percent | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Fair market value, trading | 80.5 |
Commercial mortgage loans | 61 to 70 Percent | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Fair market value, trading | 35.5 |
Commercial mortgage loans | 71 to 80 Percent | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Fair market value, trading | $ 40.6 |
Investments Investments - Debt
Investments Investments - Debt Service and Fixed Charge Coverage Ratios (Details) $ in Millions | Dec. 31, 2019USD ($) |
Commercial mortgage loans | |
Loans and Leases Receivable Disclosure [Line Items] | |
Fair market value, trading | $ 156.6 |
Middle market loans | |
Loans and Leases Receivable Disclosure [Line Items] | |
Fair market value, trading | 111.7 |
Greater than 1.20x | Commercial mortgage loans | |
Loans and Leases Receivable Disclosure [Line Items] | |
Fair market value, trading | 94.6 |
Greater than 1.20x | Middle market loans | |
Loans and Leases Receivable Disclosure [Line Items] | |
Fair market value, trading | 68.4 |
1.00 - 1.20x | Commercial mortgage loans | |
Loans and Leases Receivable Disclosure [Line Items] | |
Fair market value, trading | 48.3 |
1.00 - 1.20x | Middle market loans | |
Loans and Leases Receivable Disclosure [Line Items] | |
Fair market value, trading | 25.5 |
Less than 1.00x | Commercial mortgage loans | |
Loans and Leases Receivable Disclosure [Line Items] | |
Fair market value, trading | 13.7 |
Less than 1.00x | Middle market loans | |
Loans and Leases Receivable Disclosure [Line Items] | |
Fair market value, trading | $ 17.8 |
Investments - Other Investments
Investments - Other Investments (Details) - USD ($) $ in Millions | Dec. 18, 2017 | Jul. 26, 2016 | Jan. 31, 2015 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Equity Method Investment, Aggregate Cost [Roll Forward] | ||||||
Opening undistributed value of investment, beginning balance | $ 67.1 | $ 66.4 | ||||
Investment in the period | 1.1 | 1.4 | ||||
Unrealized gain/(loss) for the period | (0.3) | (0.7) | ||||
Closing value of investment, ending balance | 67.9 | 67.1 | $ 66.4 | |||
MVI | ||||||
Equity Method Investment, Aggregate Cost [Roll Forward] | ||||||
Opening undistributed value of investment, beginning balance | 0.5 | 0.5 | ||||
Investment in the period | $ 0.8 | 0 | 0.2 | 0.1 | ||
Unrealized gain/(loss) for the period | (0.1) | (0.2) | ||||
Closing value of investment, ending balance | 0.4 | 0.5 | 0.5 | |||
Bene | ||||||
Equity Method Investment, Aggregate Cost [Roll Forward] | ||||||
Opening undistributed value of investment, beginning balance | 3.2 | 2.9 | ||||
Investment in the period | $ 3.3 | 1.2 | ||||
Equity method investment, cash payment | 1.1 | 1.2 | ||||
Unrealized gain/(loss) for the period | 0 | (0.9) | ||||
Closing value of investment, ending balance | 4.3 | 3.2 | 2.9 | |||
Digital Re | ||||||
Equity Method Investment, Aggregate Cost [Roll Forward] | ||||||
Opening undistributed value of investment, beginning balance | 0.9 | 0.5 | ||||
Investment in the period | 0 | 0 | ||||
Unrealized gain/(loss) for the period | (0.2) | 0.4 | ||||
Closing value of investment, ending balance | 0.7 | 0.9 | 0.5 | |||
Crop Re | ||||||
Equity Method Investment, Aggregate Cost [Roll Forward] | ||||||
Opening undistributed value of investment, beginning balance | 62.5 | 62.5 | ||||
Investment in the period | 0 | 0 | ||||
Equity method investment, cash payment | $ 5.9 | |||||
Unrealized gain/(loss) for the period | 0 | 0 | ||||
Closing value of investment, ending balance | $ 62.5 | $ 62.5 | $ 62.5 | $ 62.5 |
Investments - Summary of Fixed
Investments - Summary of Fixed Maturities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Securities, Available-for-sale [Line Items] | ||
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | $ 4,845.2 | $ 5,282.3 |
Available for sale investments in fixed income maturities, Fair Market Value | 4,958.2 | 5,230.7 |
Total fixed income securities — Available for sale | ||
Debt Securities, Available-for-sale [Line Items] | ||
Due one year or less, Cost or Amortized Cost | 572.7 | 464.3 |
Due after one year through five years, Cost or Amortized Cost | 2,230.3 | 2,605.7 |
Due after five years through ten years, Cost or Amortized Cost | 864.1 | 1,047.9 |
Due after ten years, Cost or Amortized Cost | 119 | 121.9 |
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | 3,786.1 | 4,239.8 |
Due one year or less, Fair Market Value | $ 574.6 | $ 463.5 |
Available For Sale Securities Debt Maturities Within One Year Average Ratings By Maturity | AA | AA- |
Due after one year through five years, Fair Market Value | $ 2,269.3 | $ 2,582 |
Available For Sale Securities Debt Maturities After One Through Five Years Average Ratings By Maturity | AA- | AA- |
Due after five years through ten years, Fair Market Value | $ 896.3 | $ 1,028.3 |
Available For Sale Securities Debt Maturities After Five Through Ten Years Average Ratings By Maturity | AA- | AA- |
Due after ten years, Fair Market Value | $ 138.3 | $ 127 |
Available For Sale Securities Debt Maturities After Ten Years Average Ratings By Maturity | AA- | AA- |
Available for sale investments in fixed income maturities, Fair Market Value | $ 3,878.5 | $ 4,200.8 |
Agency mortgage-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | 1,052.2 | 1,025.1 |
Cost or Amortized Cost | 1,052.2 | 1,025.1 |
Available for sale investments in fixed income maturities, Fair Market Value | $ 1,073 | $ 1,012.6 |
Available For Sale Securities Average Ratings By Maturity | AA+ | AA+ |
Non-agency commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | $ 6.7 | |
Cost or Amortized Cost | 6.7 | |
Available for sale investments in fixed income maturities, Fair Market Value | $ 6.5 | |
Available For Sale Securities Average Ratings By Maturity | AA+ | |
Asset-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | $ 0.2 | $ 17.4 |
Cost or Amortized Cost | 0.2 | 17.4 |
Available for sale investments in fixed income maturities, Fair Market Value | $ 0.2 | $ 17.3 |
Available For Sale Securities Average Ratings By Maturity | AAA | AAA |
Fixed maturities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | $ 4,845.2 | $ 5,282.3 |
Available for sale investments in fixed income maturities, Fair Market Value | $ 4,958.2 | $ 5,230.7 |
Investments - Aggregate Fair Va
Investments - Aggregate Fair Value and Gross Unrealized Loss by Type of Security (Details) $ in Millions | Dec. 31, 2019USD ($)securitySecurity | Dec. 31, 2018USD ($)securitySecurity |
Debt Securities, Available-for-sale [Line Items] | ||
0-12 months, Fair Market Value | $ 582.5 | $ 1,560.9 |
0-12 months, Gross Unrealized Losses | (2.6) | (19.1) |
Over 12 months, Fair Market Value | 250.5 | 2,121.1 |
Over 12 months, Gross Unrealized Losses | (1.2) | (58.8) |
Total, Fair Market Value | 833 | 3,682 |
Total, Gross Unrealized Losses | $ (3.8) | $ (77.9) |
Number of Securities | security | 260 | 1,133 |
Fixed income securities — Available for sale | ||
Debt Securities, Available-for-sale [Line Items] | ||
0-12 months, Fair Market Value | $ 553 | $ 1,526.4 |
0-12 months, Gross Unrealized Losses | (2.6) | (19.1) |
Over 12 months, Fair Market Value | 250.5 | 2,121.1 |
Over 12 months, Gross Unrealized Losses | (1.2) | (58.8) |
Total, Fair Market Value | 803.5 | 3,647.5 |
Total, Gross Unrealized Losses | $ (3.8) | $ (77.9) |
Number of Securities | Security | 255 | 1,121 |
Short-term investments | ||
Debt Securities, Available-for-sale [Line Items] | ||
0-12 months, Fair Market Value | $ 29.5 | $ 34.5 |
0-12 months, Gross Unrealized Losses | 0 | 0 |
Over 12 months, Fair Market Value | 0 | 0 |
Over 12 months, Gross Unrealized Losses | 0 | 0 |
Total, Fair Market Value | 29.5 | 34.5 |
Total, Gross Unrealized Losses | $ 0 | $ 0 |
Number of Securities | 5 | 12 |
U.S. government | ||
Debt Securities, Available-for-sale [Line Items] | ||
0-12 months, Fair Market Value | $ 142 | $ 180.2 |
0-12 months, Gross Unrealized Losses | (1) | (0.7) |
Over 12 months, Fair Market Value | 138.2 | 740.6 |
Over 12 months, Gross Unrealized Losses | (0.4) | (15.4) |
Total, Fair Market Value | 280.2 | 920.8 |
Total, Gross Unrealized Losses | $ (1.4) | $ (16.1) |
Number of Securities | security | 49 | 103 |
U.S. agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
0-12 months, Fair Market Value | $ 3 | $ 13.5 |
0-12 months, Gross Unrealized Losses | 0 | (0.2) |
Over 12 months, Fair Market Value | 6 | 18.4 |
Over 12 months, Gross Unrealized Losses | 0 | (0.2) |
Total, Fair Market Value | 9 | 31.9 |
Total, Gross Unrealized Losses | $ 0 | $ (0.4) |
Number of Securities | security | 2 | 12 |
Municipal | ||
Debt Securities, Available-for-sale [Line Items] | ||
0-12 months, Fair Market Value | $ 3.7 | $ 3.1 |
0-12 months, Gross Unrealized Losses | 0 | (0.1) |
Over 12 months, Fair Market Value | 0 | 25 |
Over 12 months, Gross Unrealized Losses | 0 | (0.7) |
Total, Fair Market Value | 3.7 | 28.1 |
Total, Gross Unrealized Losses | $ 0 | $ (0.8) |
Number of Securities | security | 2 | 9 |
Corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
0-12 months, Fair Market Value | $ 167.7 | $ 999.1 |
0-12 months, Gross Unrealized Losses | (0.6) | (15.2) |
Over 12 months, Fair Market Value | 37.1 | 762.2 |
Over 12 months, Gross Unrealized Losses | 0 | (25.3) |
Total, Fair Market Value | 204.8 | 1,761.3 |
Total, Gross Unrealized Losses | $ (0.6) | $ (40.5) |
Number of Securities | security | 91 | 667 |
Non-U.S. government-backed corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
0-12 months, Fair Market Value | $ 31.8 | $ 14.5 |
0-12 months, Gross Unrealized Losses | (0.1) | 0 |
Over 12 months, Fair Market Value | 0 | 25.8 |
Over 12 months, Gross Unrealized Losses | 0 | (0.2) |
Total, Fair Market Value | 31.8 | 40.3 |
Total, Gross Unrealized Losses | $ (0.1) | $ (0.2) |
Number of Securities | security | 9 | 12 |
Non-U.S government | ||
Debt Securities, Available-for-sale [Line Items] | ||
0-12 months, Fair Market Value | $ 48.6 | $ 64 |
0-12 months, Gross Unrealized Losses | (0.4) | (0.3) |
Over 12 months, Fair Market Value | 0.6 | 91 |
Over 12 months, Gross Unrealized Losses | 0 | (0.5) |
Total, Fair Market Value | 49.2 | 155 |
Total, Gross Unrealized Losses | $ (0.4) | $ (0.8) |
Number of Securities | security | 20 | 57 |
Asset-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
0-12 months, Fair Market Value | $ 0 | $ 6.3 |
0-12 months, Gross Unrealized Losses | 0 | 0 |
Over 12 months, Fair Market Value | 0.2 | 10.8 |
Over 12 months, Gross Unrealized Losses | 0 | (0.1) |
Total, Fair Market Value | 0.2 | 17.1 |
Total, Gross Unrealized Losses | $ 0 | $ (0.1) |
Number of Securities | security | 1 | 8 |
Non-agency commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
0-12 months, Fair Market Value | $ 6.5 | |
0-12 months, Gross Unrealized Losses | (0.2) | |
Over 12 months, Fair Market Value | 0 | |
Over 12 months, Gross Unrealized Losses | 0 | |
Total, Fair Market Value | 6.5 | |
Total, Gross Unrealized Losses | $ (0.2) | |
Number of Securities | security | 1 | |
Agency mortgage-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
0-12 months, Fair Market Value | $ 149.7 | $ 245.7 |
0-12 months, Gross Unrealized Losses | (0.3) | (2.6) |
Over 12 months, Fair Market Value | 68.4 | 447.3 |
Over 12 months, Gross Unrealized Losses | (0.8) | (16.4) |
Total, Fair Market Value | 218.1 | 693 |
Total, Gross Unrealized Losses | $ (1.1) | $ (19) |
Number of Securities | security | 80 | 253 |
Investments - Additional Inform
Investments - Additional Information (Narrative) (Details) - USD ($) | Dec. 18, 2017 | Jul. 26, 2016 | Jan. 31, 2015 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 27, 2019 | Dec. 23, 2019 | Sep. 19, 2018 | Sep. 18, 2018 | May 01, 2018 | Jan. 01, 2017 | Oct. 02, 2012 |
Gain (Loss) on Securities [Line Items] | |||||||||||||
Catastrophe bonds, trading, cost | $ 28,600,000 | $ 36,200,000 | |||||||||||
Restricted assets | 4,268,300,000 | 4,419,200,000 | |||||||||||
Investment in the period | 1,100,000 | 1,400,000 | |||||||||||
Sale of investment | 0 | 0 | $ 9,300,000 | ||||||||||
Equity method investment, aggregate cost | 67,900,000 | 67,100,000 | 66,400,000 | ||||||||||
Other investments | 111,400,000 | 102,500,000 | |||||||||||
Investment funded | 0 | ||||||||||||
Other-than-temporary impairment charge | $ 0 | $ 0 | 700,000 | ||||||||||
BBB Emerging Market Debt | |||||||||||||
Gain (Loss) on Securities [Line Items] | |||||||||||||
Percentage of investment | 3.20% | ||||||||||||
Real estate fund | |||||||||||||
Gain (Loss) on Securities [Line Items] | |||||||||||||
Percentage of investment | 1.40% | ||||||||||||
MML and CML | |||||||||||||
Gain (Loss) on Securities [Line Items] | |||||||||||||
Percentage of investment | 3.60% | ||||||||||||
Equity investment | |||||||||||||
Gain (Loss) on Securities [Line Items] | |||||||||||||
Other investments | $ 200,000 | $ 5,000,000 | |||||||||||
Managed portfolio | |||||||||||||
Gain (Loss) on Securities [Line Items] | |||||||||||||
Percentage of investment | 8.20% | 5.80% | |||||||||||
Commercial mortgage loans | |||||||||||||
Gain (Loss) on Securities [Line Items] | |||||||||||||
Fair market value, trading | $ 156,600,000 | ||||||||||||
Middle market loans | |||||||||||||
Gain (Loss) on Securities [Line Items] | |||||||||||||
Fair market value, trading | 111,700,000 | ||||||||||||
Privately-held investments | |||||||||||||
Gain (Loss) on Securities [Line Items] | |||||||||||||
Fair market value, trading | 279,700,000 | $ 0 | |||||||||||
Bene | |||||||||||||
Gain (Loss) on Securities [Line Items] | |||||||||||||
Investment in the period | $ 3,300,000 | 1,200,000 | |||||||||||
Gross realized and unrealized gains (loss) | 0 | (900,000) | (300,000) | ||||||||||
Equity method investment, ownership percentage | 20.00% | ||||||||||||
Equity method investment, aggregate cost | 4,300,000 | 3,200,000 | 2,900,000 | ||||||||||
Equity method investment, cash payment | 1,100,000 | 1,200,000 | |||||||||||
Chaspark | |||||||||||||
Gain (Loss) on Securities [Line Items] | |||||||||||||
Gross realized and unrealized gains (loss) | 0 | 0 | 900,000 | ||||||||||
Sale of investment | 9,300,000 | ||||||||||||
MVI | |||||||||||||
Gain (Loss) on Securities [Line Items] | |||||||||||||
Investment in the period | $ 800,000 | 0 | 200,000 | 100,000 | |||||||||
Gross realized and unrealized gains (loss) | (100,000) | (200,000) | (100,000) | ||||||||||
Equity method investment, aggregate cost | 400,000 | 500,000 | 500,000 | ||||||||||
Digital Re | |||||||||||||
Gain (Loss) on Securities [Line Items] | |||||||||||||
Investment in the period | 0 | 0 | |||||||||||
Gross realized and unrealized gains (loss) | (200,000) | 400,000 | 0 | ||||||||||
Equity method investment, ownership percentage | 49.00% | ||||||||||||
Equity method investment, aggregate cost | 700,000 | 900,000 | 500,000 | $ 2,300,000 | |||||||||
Crop Re | |||||||||||||
Gain (Loss) on Securities [Line Items] | |||||||||||||
Investment in the period | 0 | 0 | |||||||||||
Equity method investment, ownership percentage | 23.20% | ||||||||||||
Equity method investment, aggregate cost | $ 62,500,000 | 62,500,000 | 62,500,000 | 62,500,000 | |||||||||
Equity method investment, cash payment | $ 5,900,000 | ||||||||||||
AgriLogic Consulting, LLC | |||||||||||||
Gain (Loss) on Securities [Line Items] | |||||||||||||
Equity method investment, ownership percentage | 40.00% | ||||||||||||
Equity method investment, aggregate cost | $ 0 | ||||||||||||
CGB Insurance Diversified Services, Inc. | Crop Re | |||||||||||||
Gain (Loss) on Securities [Line Items] | |||||||||||||
Equity method investment, counterparty ownership percentage | 76.80% | ||||||||||||
Limited Partner | Real estate fund | |||||||||||||
Gain (Loss) on Securities [Line Items] | |||||||||||||
Restricted assets | $ 100,000,000 | ||||||||||||
Other investments | $ 111,400,000 | $ 102,500,000 | $ 13,800,000 | $ 86,200,000 | |||||||||
AgriLogic Consulting, LLC | Consulting Relationships | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||||||||
Gain (Loss) on Securities [Line Items] | |||||||||||||
Sale of interest in consulting business | 60.00% | ||||||||||||
Chaspark | |||||||||||||
Gain (Loss) on Securities [Line Items] | |||||||||||||
Percentage of ownership acquired | 58.50% |
Variable Interest Entities Summ
Variable Interest Entities Summary of Silverton Loan Notes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Movement in Silverton Loan Notes [Roll Forward] | |||
Opening balance | $ 5.7 | $ 107.2 | |
Total change in fair value for the period | (3.1) | (4.4) | $ 21.2 |
Total distributed in the period | (9.6) | (107) | |
Closing balance as at December 31, 2019 | 0 | 5.7 | 107.2 |
Loan notes (long-term liabilities) | 0 | 0 | |
Accrued expenses (current liabilities) | 0 | 5.7 | |
Third party | |||
Movement in Silverton Loan Notes [Roll Forward] | |||
Opening balance | 4.6 | 86.6 | |
Total change in fair value for the period | 3.1 | 4.4 | |
Total distributed in the period | (7.7) | (86.4) | |
Closing balance as at December 31, 2019 | 0 | 4.6 | 86.6 |
Loan notes (long-term liabilities) | 0 | 0 | |
Accrued expenses (current liabilities) | 0 | 4.6 | |
Aspen Holdings | |||
Movement in Silverton Loan Notes [Roll Forward] | |||
Opening balance | 1.1 | 20.6 | |
Total change in fair value for the period | 0.8 | 1.1 | |
Total distributed in the period | (1.9) | (20.6) | |
Closing balance as at December 31, 2019 | 0 | 1.1 | $ 20.6 |
Loan notes (long-term liabilities) | 0 | 0 | |
Accrued expenses (current liabilities) | 0 | 1.1 | |
Aspen Holdings | Third party | |||
Movement in Silverton Loan Notes [Roll Forward] | |||
Total change in fair value for the period | $ 3.9 | $ 5.5 |
Variable Interest Entities - Na
Variable Interest Entities - Narrative (Details) - Investment | Dec. 31, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Number of investments in VIEs | 1 | 2 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets Measured on Recurring Basis (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Catastrophe bonds trading, at fair value | $ 29,400,000 | $ 37,900,000 |
Derivatives at fair value | 12,900,000 | 14,600,000 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loan notes issued by variable interest entities, at fair value (included within accrued expenses and other payables) | 0 | (4,600,000) |
Total | 6,629,200,000 | 6,667,200,000 |
Recurring | Derivatives at fair value | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives at fair value | 12,900,000 | 14,600,000 |
Recurring | Derivatives at fair value | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives at fair value | (78,300,000) | |
Recurring | Liabilities under derivative contracts | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities under derivative contracts, fair value | (8,900,000) | (15,100,000) |
Recurring | Total fixed income securities — Available for sale | Non-agency commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 6,500,000 | |
Recurring | Fixed income securities — Available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 4,958,200,000 | 5,230,700,000 |
Recurring | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 117,600,000 | 105,600,000 |
Recurring | Held for trading financial assets, at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 1,128,800,000 | 1,187,800,000 |
Privately-held Investments, at fair value | 279,700,000 | |
Catastrophe bonds trading, at fair value | 28,600,000 | 36,200,000 |
Recurring | Short-term investments trading at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 79,200,000 | 9,500,000 |
Recurring | Real estate fund | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 111,400,000 | 102,500,000 |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loan notes issued by variable interest entities, at fair value (included within accrued expenses and other payables) | 0 | 0 |
Total | 2,033,500,000 | 1,986,300,000 |
Recurring | Level 1 | Derivatives at fair value | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives at fair value | 0 | 0 |
Recurring | Level 1 | Derivatives at fair value | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives at fair value | 0 | |
Recurring | Level 1 | Liabilities under derivative contracts | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities under derivative contracts, fair value | 0 | 0 |
Recurring | Level 1 | Total fixed income securities — Available for sale | Non-agency commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | |
Recurring | Level 1 | Fixed income securities — Available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 1,612,900,000 | 1,672,200,000 |
Recurring | Level 1 | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 108,100,000 | 93,700,000 |
Recurring | Level 1 | Held for trading financial assets, at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 233,300,000 | 215,900,000 |
Privately-held Investments, at fair value | 0 | |
Catastrophe bonds trading, at fair value | 0 | 0 |
Recurring | Level 1 | Short-term investments trading at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 79,200,000 | 4,500,000 |
Recurring | Level 1 | Real estate fund | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loan notes issued by variable interest entities, at fair value (included within accrued expenses and other payables) | 0 | 0 |
Total | 4,204,600,000 | 4,583,000,000 |
Recurring | Level 2 | Derivatives at fair value | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives at fair value | 12,900,000 | 14,600,000 |
Recurring | Level 2 | Derivatives at fair value | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives at fair value | (78,300,000) | |
Recurring | Level 2 | Liabilities under derivative contracts | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities under derivative contracts, fair value | (8,900,000) | (15,100,000) |
Recurring | Level 2 | Total fixed income securities — Available for sale | Non-agency commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 6,500,000 | |
Recurring | Level 2 | Fixed income securities — Available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 3,345,300,000 | 3,558,500,000 |
Recurring | Level 2 | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 9,500,000 | 11,900,000 |
Recurring | Level 2 | Held for trading financial assets, at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 895,500,000 | 971,900,000 |
Privately-held Investments, at fair value | 0 | |
Catastrophe bonds trading, at fair value | 28,600,000 | 36,200,000 |
Recurring | Level 2 | Short-term investments trading at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 5,000,000 |
Recurring | Level 2 | Real estate fund | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loan notes issued by variable interest entities, at fair value (included within accrued expenses and other payables) | 0 | (4,600,000) |
Total | 279,700,000 | (4,600,000) |
Recurring | Level 3 | Derivatives at fair value | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives at fair value | 0 | 0 |
Recurring | Level 3 | Derivatives at fair value | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives at fair value | 0 | |
Recurring | Level 3 | Liabilities under derivative contracts | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities under derivative contracts, fair value | 0 | 0 |
Recurring | Level 3 | Total fixed income securities — Available for sale | Non-agency commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | |
Recurring | Level 3 | Fixed income securities — Available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Recurring | Level 3 | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Recurring | Level 3 | Held for trading financial assets, at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Privately-held Investments, at fair value | 279,700,000 | 0 |
Catastrophe bonds trading, at fair value | 0 | 0 |
Recurring | Level 3 | Short-term investments trading at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Recurring | Level 3 | Real estate fund | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
U.S. government | Recurring | Total fixed income securities — Available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 1,413,100,000 | 1,404,200,000 |
U.S. government | Recurring | Held for trading financial assets, at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 185,000,000 | 147,700,000 |
U.S. government | Recurring | Level 1 | Total fixed income securities — Available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 1,413,100,000 | 1,404,200,000 |
U.S. government | Recurring | Level 1 | Held for trading financial assets, at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 185,000,000 | 147,700,000 |
U.S. government | Recurring | Level 2 | Total fixed income securities — Available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
U.S. government | Recurring | Level 2 | Held for trading financial assets, at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
U.S. government | Recurring | Level 3 | Total fixed income securities — Available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
U.S. government | Recurring | Level 3 | Held for trading financial assets, at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
U.S. agency | Recurring | Total fixed income securities — Available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 39,600,000 | 47,400,000 |
U.S. agency | Recurring | Level 1 | Total fixed income securities — Available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
U.S. agency | Recurring | Level 2 | Total fixed income securities — Available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 39,600,000 | 47,400,000 |
U.S. agency | Recurring | Level 3 | Total fixed income securities — Available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Municipal | Recurring | Total fixed income securities — Available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 50,700,000 | 47,200,000 |
Municipal | Recurring | Held for trading financial assets, at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 3,200,000 | 2,700,000 |
Municipal | Recurring | Level 1 | Total fixed income securities — Available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Municipal | Recurring | Level 1 | Held for trading financial assets, at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Municipal | Recurring | Level 2 | Total fixed income securities — Available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 50,700,000 | 47,200,000 |
Municipal | Recurring | Level 2 | Held for trading financial assets, at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 3,200,000 | 2,700,000 |
Municipal | Recurring | Level 3 | Total fixed income securities — Available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Municipal | Recurring | Level 3 | Held for trading financial assets, at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Corporate | Recurring | Total fixed income securities — Available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 1,959,800,000 | 2,206,200,000 |
Corporate | Recurring | Held for trading financial assets, at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 243,200,000 | 720,200,000 |
Corporate | Recurring | Level 1 | Total fixed income securities — Available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Corporate | Recurring | Level 1 | Held for trading financial assets, at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Corporate | Recurring | Level 2 | Total fixed income securities — Available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 1,959,800,000 | 2,206,200,000 |
Corporate | Recurring | Level 2 | Held for trading financial assets, at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 243,200,000 | 720,200,000 |
Corporate | Recurring | Level 3 | Total fixed income securities — Available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Corporate | Recurring | Level 3 | Held for trading financial assets, at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Non-U.S. government-backed corporate | Recurring | Total fixed income securities — Available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 86,500,000 | 93,200,000 |
Non-U.S. government-backed corporate | Recurring | Held for trading financial assets, at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Non-U.S. government-backed corporate | Recurring | Level 1 | Total fixed income securities — Available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Non-U.S. government-backed corporate | Recurring | Level 1 | Held for trading financial assets, at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Non-U.S. government-backed corporate | Recurring | Level 2 | Total fixed income securities — Available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 86,500,000 | 93,200,000 |
Non-U.S. government-backed corporate | Recurring | Level 2 | Held for trading financial assets, at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Non-U.S. government-backed corporate | Recurring | Level 3 | Total fixed income securities — Available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Non-U.S. government-backed corporate | Recurring | Level 3 | Held for trading financial assets, at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Non-U.S government | Recurring | Total fixed income securities — Available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 328,800,000 | 402,600,000 |
Non-U.S government | Recurring | Held for trading financial assets, at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 151,200,000 | 265,400,000 |
Non-U.S government | Recurring | Level 1 | Total fixed income securities — Available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 199,800,000 | 268,000,000 |
Non-U.S government | Recurring | Level 1 | Held for trading financial assets, at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 48,300,000 | 68,200,000 |
Non-U.S government | Recurring | Level 2 | Total fixed income securities — Available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 129,000,000 | 134,600,000 |
Non-U.S government | Recurring | Level 2 | Held for trading financial assets, at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 102,900,000 | 197,200,000 |
Non-U.S government | Recurring | Level 3 | Total fixed income securities — Available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Non-U.S government | Recurring | Level 3 | Held for trading financial assets, at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Asset-backed | Recurring | Total fixed income securities — Available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 200,000 | 17,300,000 |
Asset-backed | Recurring | Held for trading financial assets, at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 492,400,000 | 2,400,000 |
Asset-backed | Recurring | Level 1 | Total fixed income securities — Available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Asset-backed | Recurring | Level 1 | Held for trading financial assets, at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Asset-backed | Recurring | Level 2 | Total fixed income securities — Available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 200,000 | 17,300,000 |
Asset-backed | Recurring | Level 2 | Held for trading financial assets, at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 492,400,000 | 2,400,000 |
Asset-backed | Recurring | Level 3 | Total fixed income securities — Available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Asset-backed | Recurring | Level 3 | Held for trading financial assets, at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Agency mortgage-backed | Recurring | Total fixed income securities — Available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 1,073,000,000 | 1,012,600,000 |
Agency mortgage-backed | Recurring | Held for trading financial assets, at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 53,800,000 | 49,400,000 |
Agency mortgage-backed | Recurring | Level 1 | Total fixed income securities — Available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Agency mortgage-backed | Recurring | Level 1 | Held for trading financial assets, at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Agency mortgage-backed | Recurring | Level 2 | Total fixed income securities — Available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 1,073,000,000 | 1,012,600,000 |
Agency mortgage-backed | Recurring | Level 2 | Held for trading financial assets, at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 53,800,000 | 49,400,000 |
Agency mortgage-backed | Recurring | Level 3 | Total fixed income securities — Available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Agency mortgage-backed | Recurring | Level 3 | Held for trading financial assets, at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | $ 0 | $ 0 |
Fair Value Measurements - Recon
Fair Value Measurements - Reconciliation of Level 3 Inputs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Liability for unpaid claims and claims adjustment expense amount ceded | $ (125.5) | ||
Amount classified within accrued expenses and other payables | $ (5.7) | $ 0 | |
Recurring | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Debt Instrument, Accrued Interest and Payables, Fair Value Disclosure | 4.6 | 0 | |
Recurring | Level 3 | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Debt Instrument, Accrued Interest and Payables, Fair Value Disclosure | 4.6 | 0 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at the beginning of the period | 86.6 | ||
Balance at the end of the period | 4.6 | $ 86.6 | |
Silverton 2016 | Recurring | Level 3 | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Distributed to third parties | (86.4) | ||
Balance at the end of the period | 4.6 | ||
Third party | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Amount classified within accrued expenses and other payables | $ (4.6) | $ 0 |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Measurements - Reconciliation of Level 3 Assets and Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Commercial mortgage loans | ||
Fair Value, Assets Measured on Recurring Basis, Calculation [Roll Forward] | ||
Balance at the end of the year | $ 156.6 | |
Middle market loans | ||
Fair Value, Assets Measured on Recurring Basis, Calculation [Roll Forward] | ||
Balance at the end of the year | 111.7 | |
Equity securities | ||
Fair Value, Assets Measured on Recurring Basis, Calculation [Roll Forward] | ||
Balance at the end of the year | 2.7 | |
Recurring | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Change in unrealized investment gains (losses) | 0.3 | |
Fair Value, Assets Measured on Recurring Basis, Calculation [Roll Forward] | ||
Balance at the end of the year | 279.5 | |
Balance at the beginning of the period | 4.6 | $ 86.6 |
Balance at the end of the period | 4.6 | |
Recurring | Commercial mortgage loans | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Change in unrealized investment gains (losses) | 0.3 | |
Fair Value, Assets Measured on Recurring Basis, Calculation [Roll Forward] | ||
Balance at the end of the year | 156.4 | |
Recurring | Middle market loans | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Change in unrealized investment gains (losses) | 0 | |
Fair Value, Assets Measured on Recurring Basis, Calculation [Roll Forward] | ||
Balance at the end of the year | 111.7 | |
Recurring | Asset-backed | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Change in unrealized investment gains (losses) | 0 | |
Fair Value, Assets Measured on Recurring Basis, Calculation [Roll Forward] | ||
Balance at the end of the year | 8.7 | |
Recurring | Equity securities | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Change in unrealized investment gains (losses) | 0 | |
Fair Value, Assets Measured on Recurring Basis, Calculation [Roll Forward] | ||
Balance at the end of the year | 2.7 | |
Assets | Recurring | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Calculation [Roll Forward] | ||
Balance at the beginning of the year | 0 | |
Purchases and issuances | 301.5 | |
Settlements and sales | (23.9) | |
Increase (decrease) in fair value included in net income | 1.8 | |
Balance at the end of the year | 0 | |
Assets | Recurring | Commercial mortgage loans | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Calculation [Roll Forward] | ||
Balance at the beginning of the year | 0 | |
Purchases and issuances | 174.7 | |
Settlements and sales | (20.1) | |
Increase (decrease) in fair value included in net income | 1.7 | |
Balance at the end of the year | 0 | |
Assets | Recurring | Middle market loans | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Calculation [Roll Forward] | ||
Balance at the beginning of the year | 0 | |
Purchases and issuances | 115.5 | |
Settlements and sales | (3.8) | |
Increase (decrease) in fair value included in net income | 0.1 | |
Balance at the end of the year | 0 | |
Assets | Recurring | Asset-backed | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Calculation [Roll Forward] | ||
Balance at the beginning of the year | 0 | |
Purchases and issuances | 8.7 | |
Settlements and sales | 0 | |
Increase (decrease) in fair value included in net income | 0 | |
Balance at the end of the year | 0 | |
Assets | Recurring | Equity securities | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Calculation [Roll Forward] | ||
Balance at the beginning of the year | 0 | |
Purchases and issuances | 2.7 | |
Settlements and sales | 0 | |
Increase (decrease) in fair value included in net income | 0 | |
Balance at the end of the year | 0 | |
Liability | Recurring | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Change in unrealized investment gains (losses), liability | 0 | 0 |
Fair Value, Assets Measured on Recurring Basis, Calculation [Roll Forward] | ||
Balance at the beginning of the period | 4.6 | |
Liability purchases | 0 | 0 |
Liability sales | (7.7) | (86.4) |
Liability, increase (decrease) in fv included in net income | 3.1 | 4.4 |
Balance at the end of the period | 0 | 4.6 |
Liability | Silverton | Recurring | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Change in unrealized investment gains (losses), liability | 0 | |
Fair Value, Assets Measured on Recurring Basis, Calculation [Roll Forward] | ||
Balance at the beginning of the period | 4.6 | 86.6 |
Liability purchases | 0 | 0 |
Liability sales | (7.7) | (86.4) |
Liability, increase (decrease) in fv included in net income | 3.1 | 4.4 |
Balance at the end of the period | $ 0 | $ 4.6 |
Fair Value Measurements - Input
Fair Value Measurements - Inputs Used (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gross written premiums | $ 3,442,400,000 | $ 3,446,900,000 | $ 3,360,900,000 |
Minimum | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gross written premiums | 50,100,000 | ||
Reserve for losses | 4,200,000 | ||
Initial value of issuance | 325,000,000 | ||
Maximum | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gross written premiums | 61,100,000 | ||
Reserve for losses | 61,900,000 | ||
Initial value of issuance | 325,000,000 | ||
Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loan notes issued by variable interest entities, at fair value (included within accrued expenses and other payables) | 0 | (4,600,000) | |
Recurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loan Notes, fair value | 4,600,000 | $ 86,600,000 | |
Loan notes issued by variable interest entities, at fair value (included within accrued expenses and other payables) | 0 | (4,600,000) | |
Silverton 2016 | Recurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loan Notes, fair value | $ 4,600,000 | ||
Measurement Input, Expected Term | Maximum | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contract period | 365 days | ||
Held for trading financial assets, at fair value | Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Privately-held Investments, at fair value | 279,700,000 | ||
Held for trading financial assets, at fair value | Recurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Privately-held Investments, at fair value | $ 279,700,000 | $ 0 | |
Discounted cash flow | Commercial mortgage loans | Minimum | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Measurement inputs | 0.050 | ||
Discounted cash flow | Commercial mortgage loans | Maximum | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Measurement inputs | 0.063 | ||
Discounted cash flow | Commercial mortgage loans | Weighted Average | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Measurement inputs | 0.058 | ||
Discounted cash flow | Commercial mortgage loans | Recurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Privately-held Investments, at fair value | $ 125,700,000 | ||
Discounted cash flow | Middle market loans | Minimum | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Measurement inputs | 0.068 | ||
Discounted cash flow | Middle market loans | Maximum | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Measurement inputs | 0.103 | ||
Discounted cash flow | Middle market loans | Weighted Average | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Measurement inputs | 0.079 | ||
Discounted cash flow | Middle market loans | Recurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Privately-held Investments, at fair value | $ 111,700,000 | ||
Discounted cash flow | Asset-backed | Minimum | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Measurement inputs | 0.064 | ||
Discounted cash flow | Asset-backed | Maximum | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Measurement inputs | 0.064 | ||
Discounted cash flow | Asset-backed | Weighted Average | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Measurement inputs | 0.064 | ||
Discounted cash flow | Asset-backed | Recurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Privately-held Investments, at fair value | $ 8,700,000 | ||
Transaction value | Commercial mortgage loans | Recurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Privately-held Investments, at fair value | 30,900,000 | ||
Transaction value | Equity securities | Recurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Privately-held Investments, at fair value | $ 2,700,000 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2019USD ($)$ / Investment | Dec. 31, 2018USD ($)$ / Investment | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Quotes per fixed income investment | $ / Investment | 2.4 | 2.2 | |||
Silverton 2015 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Loan notes issued during the period | $ (85,000,000) | ||||
Silverton 2015, Third-party Funded | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Loan notes issued during the period | $ (70,000,000) | ||||
Silverton 2016 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Loan notes issued during the period | $ (125,000,000) | ||||
Silverton 2016, Third-party Funded | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Loan notes issued during the period | $ (100,000,000) | ||||
Silverton 2017 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Loan notes issued during the period | $ (130,000,000) | ||||
Silverton 2017, Third-party Funded | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Loan notes issued during the period | $ (105,000,000) | ||||
Recurring | Level 3 | Silverton | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Repayments of debt | $ (7,700,000) | ||||
Recurring | Level 3 | Silverton 2016 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Level 3 liabilities settled | 86,400,000 | ||||
Held for trading financial assets, at fair value | Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Privately-held Investments, at fair value | 279,700,000 | ||||
Held for trading financial assets, at fair value | Recurring | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Privately-held Investments, at fair value | $ 279,700,000 | $ 0 |
Reinsurance - Summary of Assume
Reinsurance - Summary of Assumed and Ceded Reinsurance on Premiums Written, Premiums Earned and Insurance Losses and Loss Adjustment Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Premiums written: | |||
Direct | $ 1,956.9 | $ 1,951.2 | $ 1,812.4 |
Assumed | 1,485.5 | 1,495.7 | 1,548.5 |
Ceded | (1,014.5) | (1,364.9) | (1,148.4) |
Net premiums written | 2,427.9 | 2,082 | 2,212.5 |
Premiums earned: | |||
Direct | 1,927.5 | 1,940.5 | 1,757.4 |
Assumed | 1,494.9 | 1,593.9 | 1,451.8 |
Ceded | (1,129.1) | (1,319.7) | (902.6) |
Net premiums earned | 2,293.3 | 2,214.7 | 2,306.6 |
Insurance losses and loss adjustment expenses: | |||
Direct | 1,415.5 | 1,458.9 | 1,673.6 |
Assumed | 1,147.9 | 1,196.1 | 1,399.9 |
Ceded | (883.7) | (1,082) | (1,078.8) |
Net insurance losses and loss adjustment expenses | $ 1,679.7 | $ 1,573 | $ 1,994.7 |
Reinsurance - Additional Inform
Reinsurance - Additional Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Reinsurance Disclosures [Abstract] | |
Liability for unpaid claims and claims adjustment expense amount ceded | $ (125.5) |
Derivative Contracts - Fair Val
Derivative Contracts - Fair Value of Derivative Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Not Designated as Hedging Instrument | Foreign exchange contracts | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | $ 1,696.3 | $ 1,257.3 | |
Cash collateral | 2.9 | 2.3 | |
Not Designated as Hedging Instrument | Interest rate swap | |||
Derivatives, Fair Value [Line Items] | |||
Initial and variation margin, posted | 111.1 | 0 | |
Not Designated as Hedging Instrument | Derivatives at Fair Value | Foreign exchange contracts | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value | 8.1 | 14.6 | |
Derivative, Notional Amount | 687.3 | 496.5 | |
Not Designated as Hedging Instrument | Liabilities Under Derivative Contracts | Foreign exchange contracts | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value | (8.9) | (13.9) | |
Derivative, Notional Amount | 1,009 | 760.8 | |
Not Designated as Hedging Instrument | Liabilities Under Derivative Contracts | Interest rate swap | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value | (78.3) | 0 | |
Derivative, Notional Amount | 1,800 | $ 3,318 | 0 |
Designated as Hedging Instrument | Derivatives at Fair Value | Foreign exchange contracts | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value | 4.8 | 0 | |
Derivative, Notional Amount | 85.5 | 0 | |
Designated as Hedging Instrument | Liabilities Under Derivative Contracts | Foreign exchange contracts | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value | 0 | (1.2) | |
Derivative, Notional Amount | $ 0 | $ 94.3 |
Derivative Contracts - Gain_(Lo
Derivative Contracts - Gain/(Loss) Recognized in Income on Derivative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Not Designated as Hedging Instrument | Foreign exchange contracts | Gain (loss) on derivative instruments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) to net income from derivative instruments | $ (14) | $ (31.8) |
Not Designated as Hedging Instrument | Interest rate swap | Gain (loss) on derivative instruments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) to net income from derivative instruments | (130.2) | 0 |
Designated as Hedging Instrument | Foreign exchange contracts | General, administrative and corporate expenses | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) on foreign currency fair value hedge derivatives | 0.9 | (1.2) |
Designated as Hedging Instrument | Foreign exchange contracts | Net change from current period hedged transactions | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) on foreign currency fair value hedge derivatives | $ 4.8 | $ (2.1) |
Derivative Contracts - Addition
Derivative Contracts - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 | |
Foreign exchange contracts | Not Designated as Hedging Instrument | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Purchase of US and foreign exchange | $ 1,696.3 | $ 1,257.3 | |
Collateral provided to counterparties as security for the Company's net liability position | 2.9 | 2.3 | |
Foreign exchange contracts | Not Designated as Hedging Instrument | Derivative At Fair Value | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Purchase of US and foreign exchange | 687.3 | 496.5 | |
Foreign exchange contracts | Not Designated as Hedging Instrument | Liabilities Under Derivative Contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Purchase of US and foreign exchange | 1,009 | 760.8 | |
Foreign exchange contracts | Designated as Hedging Instrument | Derivative At Fair Value | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Purchase of US and foreign exchange | 85.5 | 0 | |
Foreign exchange contracts | Designated as Hedging Instrument | Liabilities Under Derivative Contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Purchase of US and foreign exchange | 0 | 94.3 | |
Foreign exchange contracts | Net change from current period hedged transactions | Designated as Hedging Instrument | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on foreign currency fair value hedge derivatives | 4.8 | (2.1) | |
Foreign exchange contracts | General, administrative and corporate expenses | Designated as Hedging Instrument | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on foreign currency fair value hedge derivatives | 0.9 | (1.2) | |
Foreign exchange contracts | Gain (loss) on derivative instruments | Not Designated as Hedging Instrument | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) to net income from derivative instruments | (14) | (31.8) | |
Interest rate swap | Not Designated as Hedging Instrument | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Initial and variation margin, posted | 111.1 | 0 | |
Interest rate swap | Not Designated as Hedging Instrument | Liabilities Under Derivative Contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Purchase of US and foreign exchange | 1,800 | 0 | $ 3,318 |
Interest rate swap | Gain (loss) on derivative instruments | Not Designated as Hedging Instrument | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) to net income from derivative instruments | $ (130.2) | $ 0 |
Deferred Policy Acquisition C_3
Deferred Policy Acquisition Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Balance at the beginning of the period | $ 248.5 | $ 294.3 | |
Acquisition costs deferred | 455.3 | 325.8 | |
Amortization of deferred policy acquisition costs | (412.7) | (371.6) | $ (400.5) |
Balance at the end of the period | $ 291.1 | $ 248.5 | $ 294.3 |
Reserves for Losses and Adjus_3
Reserves for Losses and Adjustment Expenses - Reconciliation of Beginning and Ending Consolidated Loss and Loss Adjustment Expenses (LAE) Reserves (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Insurance [Abstract] | ||||
Provision for losses and LAE, beginning balance | $ 7,074.2 | $ 6,749.5 | $ 5,319.9 | |
Less reinsurance recoverable | (2,077.6) | (1,515.2) | $ (560.7) | |
Net losses and LAE reserves, beginning balance | 4,996.6 | 5,234.3 | 4,759.2 | |
Net loss and LAE expenses (disposed) | 0 | 0 | (125.5) | |
Movement in net provision for losses and LAE for claims incurred: | ||||
Current year | 1,620.2 | 1,684.1 | 2,100.1 | |
Prior years | 59.5 | (111.1) | (105.4) | |
Total incurred | 1,679.7 | 1,573 | 1,994.7 | |
Losses and LAE payments for claims incurred: | ||||
Current year | (428.5) | (285.7) | (397.5) | |
Prior years | (1,694.1) | (1,441) | (1,157.6) | |
Total paid | (2,122.6) | (1,726.7) | (1,555.1) | |
Foreign exchange losses/(gains) | 78.3 | (84) | 161 | |
Net losses and LAE reserves, ending balance | 4,632 | 4,996.6 | 5,234.3 | |
Plus reinsurance recoverable on unpaid losses at the end of the year | 2,319.8 | 2,077.6 | 1,515.2 | |
Provision for losses and LAE at the end of the year | $ 6,951.8 | $ 7,074.2 | $ 6,749.5 |
Reserves for Losses and Adjus_4
Reserves for Losses and Adjustment Expenses - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Insurance [Abstract] | |||
Provision for losses and LAE for claims incurred | $ 59.5 | $ (111.1) | $ (105.4) |
Liability for unpaid claims and claims adjustment expense amount ceded | $ 125.5 |
Reserves for Losses and Adjus_5
Reserves for Losses and Adjustment Expenses Short-duration Insurance Contracts, Claims by Accident Year (Details) $ in Millions | Dec. 31, 2019USD ($)Integer | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) |
Claims Development [Line Items] | ||||||||
Liability for claims and claim adjustment expenses, net of reinsurance | $ 4,815.5 | |||||||
Property Insurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 1,432.2 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | 1,245.6 | |||||||
All outstanding liabilities for 2012 and subsequent years, net of reinsurance | 186.6 | |||||||
All outstanding liabilities before 2012, net of reinsurance | 4.1 | |||||||
Liability for claims and claim adjustment expenses, net of reinsurance | 190.7 | |||||||
Casualty Insurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 1,173.3 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | 546.1 | |||||||
All outstanding liabilities for 2012 and subsequent years, net of reinsurance | 627.2 | |||||||
All outstanding liabilities before 2012, net of reinsurance | 42 | |||||||
Liability for claims and claim adjustment expenses, net of reinsurance | 669.2 | |||||||
Marine, Aviation and Energy Insurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 2,070.6 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | 1,490.7 | |||||||
All outstanding liabilities for 2012 and subsequent years, net of reinsurance | 579.9 | |||||||
All outstanding liabilities before 2012, net of reinsurance | 11.6 | |||||||
Liability for claims and claim adjustment expenses, net of reinsurance | 591.5 | |||||||
Financial and Professional Insurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 1,310.5 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | 670.4 | |||||||
All outstanding liabilities for 2012 and subsequent years, net of reinsurance | 640.1 | |||||||
All outstanding liabilities before 2012, net of reinsurance | 17.3 | |||||||
Liability for claims and claim adjustment expenses, net of reinsurance | 657.4 | |||||||
Property Catastrophe and Other Property Reinsurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 2,195.6 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | 1,687.6 | |||||||
All outstanding liabilities for 2012 and subsequent years, net of reinsurance | 508 | |||||||
All outstanding liabilities before 2012, net of reinsurance | 20.6 | |||||||
Liability for claims and claim adjustment expenses, net of reinsurance | 528.6 | |||||||
Casualty Reinsurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 1,867.4 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | 666.1 | |||||||
All outstanding liabilities for 2012 and subsequent years, net of reinsurance | 1,201.2 | |||||||
All outstanding liabilities before 2012, net of reinsurance | 401 | |||||||
Liability for claims and claim adjustment expenses, net of reinsurance | 1,602.2 | |||||||
Specialty Reinsurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 2,045.3 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | 1,499.4 | |||||||
All outstanding liabilities for 2012 and subsequent years, net of reinsurance | 545.9 | |||||||
All outstanding liabilities before 2012, net of reinsurance | 30 | |||||||
Liability for claims and claim adjustment expenses, net of reinsurance | 575.9 | |||||||
Accident Year 2012 | Property Insurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 153 | 153 | $ 154 | $ 159.9 | $ 165.5 | $ 166.6 | $ 167.9 | $ 169.8 |
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 0 | |||||||
Number of Reported Claims | Integer | 6,075 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 153.6 | 153.6 | 154.3 | 156.8 | 152.7 | 138.7 | 129.1 | 41.3 |
Accident Year 2012 | Casualty Insurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 70.5 | 68.6 | 66.6 | 69 | 61.1 | 70 | 62.8 | 78 |
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 8 | |||||||
Number of Reported Claims | Integer | 2,951 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 54.7 | 50.1 | 49.3 | 40.9 | 29.7 | 14.2 | 6.6 | 1.3 |
Accident Year 2012 | Marine, Aviation and Energy Insurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 310.9 | 316.2 | 327.9 | 331.8 | 346.2 | 325.5 | 306 | 268.5 |
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 7 | |||||||
Number of Reported Claims | Integer | 3,808 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 274.4 | 273.5 | 250.6 | 239.7 | 210.9 | 174.7 | 132.2 | 51.3 |
Accident Year 2012 | Financial and Professional Insurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 95.8 | 100.8 | 89.1 | 93.5 | 96.5 | 93.1 | 89.5 | 88 |
Incurred but Not Reported (IBNR) Claims Liability, Net | $ (1.6) | |||||||
Number of Reported Claims | Integer | 580 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 84.8 | 79.7 | 70.3 | 65.1 | 59.1 | 50.6 | 39.5 | 22.8 |
Accident Year 2012 | Property Catastrophe and Other Property Reinsurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 262 | 272.1 | 279.6 | 282.6 | 279.2 | 286.6 | 303.5 | 280.3 |
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 8.5 | |||||||
Number of Reported Claims | Integer | 664 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 242.5 | 232.4 | 227.9 | 216.8 | 209.3 | 189.1 | 136 | 35.7 |
Accident Year 2012 | Casualty Reinsurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 244.1 | 241.5 | 232.6 | 231.6 | 234.6 | 243.3 | 232 | 233.8 |
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 34.1 | |||||||
Number of Reported Claims | Integer | 1,770 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 143.8 | 134.1 | 117.4 | 96.2 | 65.3 | 41.9 | 17.7 | 2.2 |
Accident Year 2012 | Specialty Reinsurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 167.1 | 169.5 | 172.9 | 172.3 | 173.9 | 188.3 | 199.2 | 175.8 |
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 5.4 | |||||||
Number of Reported Claims | Integer | 638 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 153.3 | 150.5 | 149.2 | 143.9 | 138.5 | 128.5 | 93.4 | $ 24.9 |
Accident Year 2013 | Property Insurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 111.9 | 111.6 | 113.6 | 112.6 | 116.9 | 117.2 | 130 | |
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 0.4 | |||||||
Number of Reported Claims | Integer | 5,759 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 110.2 | 108.4 | 105.7 | 101.1 | 89.1 | 75.9 | 38.9 | |
Accident Year 2013 | Casualty Insurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 104.8 | 104.6 | 103.4 | 120.4 | 114.9 | 116.5 | 132.9 | |
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 10.8 | |||||||
Number of Reported Claims | Integer | 3,239 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 85.1 | 80.8 | 68.4 | 53 | 39.5 | 25.8 | 2.2 | |
Accident Year 2013 | Marine, Aviation and Energy Insurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 345.1 | 346.4 | 332.9 | 325.8 | 342.3 | 333.7 | 320.8 | |
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 5.2 | |||||||
Number of Reported Claims | Integer | 4,171 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 300.4 | 284.3 | 264.7 | 235.3 | 204.9 | 131.6 | 41.5 | |
Accident Year 2013 | Financial and Professional Insurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 90.3 | 91.3 | 100.2 | 101.2 | 104.5 | 100.1 | 105.6 | |
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 7.7 | |||||||
Number of Reported Claims | Integer | 572 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 74.5 | 72.4 | 63.8 | 65.4 | 31.2 | 21.1 | 8.1 | |
Accident Year 2013 | Property Catastrophe and Other Property Reinsurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 170.3 | 173.2 | 176.5 | 178 | 189.2 | 199.1 | 216.7 | |
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 0.4 | |||||||
Number of Reported Claims | Integer | 822 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 166 | 164.5 | 163 | 158.3 | 146.3 | 98.3 | 34.4 | |
Accident Year 2013 | Casualty Reinsurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 203.3 | 200.6 | 205.4 | 222.3 | 225 | 229.7 | 214.5 | |
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 39.6 | |||||||
Number of Reported Claims | Integer | 1,648 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 127.3 | 114.6 | 92.7 | 64.8 | 42.6 | 15.8 | 3.4 | |
Accident Year 2013 | Specialty Reinsurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 114.9 | 115.1 | 118.9 | 119.7 | 131.5 | 139.3 | 144.1 | |
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 4.8 | |||||||
Number of Reported Claims | Integer | 574 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 102 | 101.1 | 101.1 | 94.1 | 86.8 | 70.8 | $ 25 | |
Accident Year 2014 | Property Insurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 132.6 | 134.1 | 134.9 | 134.2 | 157.3 | 165.4 | ||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 1.5 | |||||||
Number of Reported Claims | Integer | 9,989 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 129.3 | 127.9 | 123.8 | 114.1 | 86.6 | 40.4 | ||
Accident Year 2014 | Casualty Insurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 140.4 | 136.3 | 129.2 | 139 | 127.2 | 144.9 | ||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 24.8 | |||||||
Number of Reported Claims | Integer | 3,723 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 97.3 | 73.2 | 59.8 | 32.7 | 13.4 | 2.7 | ||
Accident Year 2014 | Marine, Aviation and Energy Insurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 313 | 306.1 | 310.6 | 298.9 | 314.1 | 309.8 | ||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 11.6 | |||||||
Number of Reported Claims | Integer | 4,027 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 250.9 | 232.7 | 210 | 189.3 | 116.8 | 53.5 | ||
Accident Year 2014 | Financial and Professional Insurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 120.1 | 131.1 | 119.8 | 129.5 | 130.9 | 135 | ||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 12.4 | |||||||
Number of Reported Claims | Integer | 788 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 85.5 | 79.7 | 72.2 | 53.5 | 30.7 | 3 | ||
Accident Year 2014 | Property Catastrophe and Other Property Reinsurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 146 | 150.9 | 150.5 | 161.8 | 177.7 | 190.3 | ||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 2.2 | |||||||
Number of Reported Claims | Integer | 905 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 140.5 | 141.8 | 137.8 | 127.8 | 101.1 | 37.6 | ||
Accident Year 2014 | Casualty Reinsurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 205.9 | 203.2 | 209.6 | 216.2 | 207.7 | 205 | ||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 44.3 | |||||||
Number of Reported Claims | Integer | 1,732 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 107.4 | 86.4 | 60.2 | 37.8 | 13.8 | 2.5 | ||
Accident Year 2014 | Specialty Reinsurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 124.3 | 125.8 | 123 | 132.1 | 140.2 | 152 | ||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 8.1 | |||||||
Number of Reported Claims | Integer | 621 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 102.4 | 99.5 | 89.2 | 81.1 | 56.3 | $ 16.6 | ||
Accident Year 2015 | Property Insurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 203.1 | 202.6 | 200.3 | 205.8 | 240.2 | |||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 2.6 | |||||||
Number of Reported Claims | Integer | 11,597 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 196.4 | 179.9 | 170.8 | 142.9 | 57.3 | |||
Accident Year 2015 | Casualty Insurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 236.7 | 203.9 | 186.2 | 223.6 | 203.6 | |||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 38.7 | |||||||
Number of Reported Claims | Integer | 4,577 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 138.8 | 92.9 | 56.6 | 17.1 | 3.2 | |||
Accident Year 2015 | Marine, Aviation and Energy Insurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 310 | 286.5 | 282.5 | 300.3 | 297.3 | |||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 24.9 | |||||||
Number of Reported Claims | Integer | 4,030 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 222.2 | 194.2 | 174.4 | 123.4 | 44.9 | |||
Accident Year 2015 | Financial and Professional Insurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 191 | 189.8 | 185.6 | 175.6 | 174.2 | |||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 47.7 | |||||||
Number of Reported Claims | Integer | 1,077 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 110 | 89.4 | 70.1 | 43.5 | 13.8 | |||
Accident Year 2015 | Property Catastrophe and Other Property Reinsurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 172 | 156.7 | 177.2 | 187.3 | 214.5 | |||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 6.5 | |||||||
Number of Reported Claims | Integer | 1,031 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 156.2 | 139.2 | 126.9 | 95.1 | 35.9 | |||
Accident Year 2015 | Casualty Reinsurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 210.9 | 213.3 | 210.7 | 201.2 | 194.3 | |||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 56.3 | |||||||
Number of Reported Claims | Integer | 1,832 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 89.4 | 65.5 | 38.4 | 18 | 3.5 | |||
Accident Year 2015 | Specialty Reinsurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 157.9 | 159.1 | 164.8 | 170.2 | 166.3 | |||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 11.1 | |||||||
Number of Reported Claims | Integer | 765 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 131.4 | 122.1 | 104.2 | 56.4 | $ 17.7 | |||
Accident Year 2016 | Property Insurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 245.8 | 244.5 | 249.6 | 238.8 | ||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 7.4 | |||||||
Number of Reported Claims | Integer | 10,738 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 223.7 | 201.6 | 169 | 67 | ||||
Accident Year 2016 | Casualty Insurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 190.4 | 183.8 | 188.5 | 217.4 | ||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 70.4 | |||||||
Number of Reported Claims | Integer | 4,509 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 82.8 | 40.3 | 22.9 | 4.2 | ||||
Accident Year 2016 | Marine, Aviation and Energy Insurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 229.3 | 229.1 | 230.5 | 260.6 | ||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 26.6 | |||||||
Number of Reported Claims | Integer | 4,368 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 164.1 | 142.5 | 82.6 | 30.9 | ||||
Accident Year 2016 | Financial and Professional Insurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 202.2 | 216.5 | 211.8 | 191 | ||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 61.5 | |||||||
Number of Reported Claims | Integer | 1,238 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 130.1 | 102.1 | 71.2 | 15.1 | ||||
Accident Year 2016 | Property Catastrophe and Other Property Reinsurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 248.1 | 269.8 | 271.5 | 271.6 | ||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 8.2 | |||||||
Number of Reported Claims | Integer | 1,278 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 216.4 | 205.4 | 164.2 | 57 | ||||
Accident Year 2016 | Casualty Reinsurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 255.6 | 245.6 | 245.9 | 233.4 | ||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 89 | |||||||
Number of Reported Claims | Integer | 1,759 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 96.3 | 64.2 | 33.6 | 9.3 | ||||
Accident Year 2016 | Specialty Reinsurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 230.8 | 238.4 | 240.3 | 239.3 | ||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 23.2 | |||||||
Number of Reported Claims | Integer | 916 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 183.9 | 165.8 | 151 | $ 58.8 | ||||
Accident Year 2017 | Property Insurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 252.2 | 259 | 296.1 | |||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 10.3 | |||||||
Number of Reported Claims | Integer | 9,532 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 222 | 188.9 | 96.6 | |||||
Accident Year 2017 | Casualty Insurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 179 | 175 | 181.6 | |||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 35.3 | |||||||
Number of Reported Claims | Integer | 5,022 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 53 | 23 | 3.6 | |||||
Accident Year 2017 | Marine, Aviation and Energy Insurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 207.3 | 201 | 210.7 | |||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 17.2 | |||||||
Number of Reported Claims | Integer | 5,894 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 140.3 | 97.7 | 40.2 | |||||
Accident Year 2017 | Financial and Professional Insurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 187.9 | 183.1 | 206.8 | |||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 70.9 | |||||||
Number of Reported Claims | Integer | 1,688 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 83.4 | 51.3 | 27.2 | |||||
Accident Year 2017 | Property Catastrophe and Other Property Reinsurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 516.6 | 534.7 | 557.7 | |||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 10 | |||||||
Number of Reported Claims | Integer | 1,952 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 416.9 | 357.8 | 123.3 | |||||
Accident Year 2017 | Casualty Reinsurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 253.6 | 242.9 | 245.2 | |||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 129 | |||||||
Number of Reported Claims | Integer | 1,474 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 59.1 | 30.6 | 8.9 | |||||
Accident Year 2017 | Specialty Reinsurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 376.1 | 392.6 | 379.9 | |||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 51 | |||||||
Number of Reported Claims | Integer | 1,303 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 270.9 | 238.9 | $ 94.8 | |||||
Accident Year 2018 | Property Insurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 206.3 | 203.7 | ||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 18.4 | |||||||
Number of Reported Claims | Integer | 7,913 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 161.1 | 62.2 | ||||||
Accident Year 2018 | Casualty Insurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 125.9 | 123 | ||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 57.7 | |||||||
Number of Reported Claims | Integer | 4,938 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 28 | 3.2 | ||||||
Accident Year 2018 | Marine, Aviation and Energy Insurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 208.5 | 171.3 | ||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 33.9 | |||||||
Number of Reported Claims | Integer | 4,839 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 104.9 | 26.8 | ||||||
Accident Year 2018 | Financial and Professional Insurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 173.5 | 157.6 | ||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 69.1 | |||||||
Number of Reported Claims | Integer | 4,644 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 74.8 | 20.3 | ||||||
Accident Year 2018 | Property Catastrophe and Other Property Reinsurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 406.8 | 349.9 | ||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 14.2 | |||||||
Number of Reported Claims | Integer | 1,769 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 320.6 | 122.8 | ||||||
Accident Year 2018 | Casualty Reinsurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 258.7 | 229.2 | ||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 166.9 | |||||||
Number of Reported Claims | Integer | 1,051 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 33.6 | 7.2 | ||||||
Accident Year 2018 | Specialty Reinsurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 397.5 | 398.4 | ||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 67.3 | |||||||
Number of Reported Claims | Integer | 1,282 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 281.2 | $ 27.3 | ||||||
Accident Year 2019 | Property Insurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 127.3 | |||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 42.4 | |||||||
Number of Reported Claims | Integer | 5,291 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 49.3 | |||||||
Accident Year 2019 | Casualty Insurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 125.6 | |||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 89.2 | |||||||
Number of Reported Claims | Integer | 3,625 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 6.4 | |||||||
Accident Year 2019 | Marine, Aviation and Energy Insurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 146.5 | |||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 67.7 | |||||||
Number of Reported Claims | Integer | 2,532 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 33.5 | |||||||
Accident Year 2019 | Financial and Professional Insurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 249.7 | |||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 195.9 | |||||||
Number of Reported Claims | Integer | 10,797 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 27.3 | |||||||
Accident Year 2019 | Property Catastrophe and Other Property Reinsurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 273.8 | |||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 117.4 | |||||||
Number of Reported Claims | Integer | 974 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 28.5 | |||||||
Accident Year 2019 | Casualty Reinsurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 235.3 | |||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 207.6 | |||||||
Number of Reported Claims | Integer | 375 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 9.2 | |||||||
Accident Year 2019 | Specialty Reinsurance | ||||||||
Claims Development [Line Items] | ||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 476.7 | |||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 154.6 | |||||||
Number of Reported Claims | Integer | 1,080 | |||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 274.3 |
Reserves for Losses and Adjus_6
Reserves for Losses and Adjustment Expenses Short-duration insurance contracts - Reconciliation of Claims Development (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liability for claims and claim adjustment expenses, net of reinsurance | $ 4,815.5 | |||
Reinsurance recoverable on unpaid losses | 2,319.8 | |||
Unallocated claims incurred | 44 | |||
Other | (0.1) | |||
Liability for unpaid claims and claim adjustment expense, aggregate reconciling items | (183.5) | |||
Losses and loss adjustment expenses | 6,951.8 | $ 7,074.2 | $ 6,749.5 | $ 5,319.9 |
Property Insurance | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liability for claims and claim adjustment expenses, net of reinsurance | 190.7 | |||
Casualty Insurance | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liability for claims and claim adjustment expenses, net of reinsurance | 669.2 | |||
Marine, Aviation and Energy Insurance | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liability for claims and claim adjustment expenses, net of reinsurance | 591.5 | |||
Financial and Professional Insurance | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liability for claims and claim adjustment expenses, net of reinsurance | 657.4 | |||
Insurance lines | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liability for claims and claim adjustment expenses, net of reinsurance | 2,108.8 | |||
Reinsurance recoverable on unpaid losses | 1,772.8 | |||
Property Catastrophe and Other Property Reinsurance | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liability for claims and claim adjustment expenses, net of reinsurance | 528.6 | |||
Casualty Reinsurance | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liability for claims and claim adjustment expenses, net of reinsurance | 1,602.2 | |||
Specialty Reinsurance | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liability for claims and claim adjustment expenses, net of reinsurance | 575.9 | |||
Reinsurance lines | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liability for claims and claim adjustment expenses, net of reinsurance | 2,706.7 | |||
Reinsurance recoverable on unpaid losses | 547 | |||
Insurance lines other than short-duration | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Other reinsurance balances recoverable | (227.4) | |||
Losses and loss adjustment expenses | $ 0 |
Reserves for Losses and Adjus_7
Reserves for Losses and Adjustment Expenses Short-duration Contracts - Historical Claims Duration (Details) | Dec. 31, 2019 |
Insurance | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Average Annual Percentage Payout of Incurred Claims, Net of Reinsurance, Year One | 15.80% |
Average Annual Percentage Payout of Incurred Claims, Net of Reinsurance, Year Two | 26.30% |
Average Annual Percentage Payout of Incurred Claims, Net of Reinsurance, Year Three | 16.10% |
Average Annual Percentage Payout of Incurred Claims, Net of Reinsurance, Year Four | 11.70% |
Average Annual Percentage Payout of Incurred Claims, Net of Reinsurance, Year Five | 8.50% |
Average Annual Percentage Payout of Incurred Claims, Net of Reinsurance, Year Six | 5.70% |
Average Annual Percentage Payout of Incurred Claims, Net of Reinsurance, Year Seven | 4.40% |
Average Annual Percentage Payout of Incurred Claims, Net of Reinsurance, Year Eight | 1.70% |
Reinsurance | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Average Annual Percentage Payout of Incurred Claims, Net of Reinsurance, Year One | 16.00% |
Average Annual Percentage Payout of Incurred Claims, Net of Reinsurance, Year Two | 29.70% |
Average Annual Percentage Payout of Incurred Claims, Net of Reinsurance, Year Three | 15.30% |
Average Annual Percentage Payout of Incurred Claims, Net of Reinsurance, Year Four | 8.80% |
Average Annual Percentage Payout of Incurred Claims, Net of Reinsurance, Year Five | 8.10% |
Average Annual Percentage Payout of Incurred Claims, Net of Reinsurance, Year Six | 5.00% |
Average Annual Percentage Payout of Incurred Claims, Net of Reinsurance, Year Seven | 3.20% |
Average Annual Percentage Payout of Incurred Claims, Net of Reinsurance, Year Eight | 3.30% |
Income Taxes - Summary of Total
Income Taxes - Summary of Total Income Tax (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense/(benefit) allocated to net loss | $ 22.9 | $ (10.2) | $ (15.4) |
Income tax expense/(benefit) allocated to other comprehensive income | 11.2 | 4.1 | (17.4) |
Total income tax expense/(benefit) | $ 34.1 | $ (6.1) | $ (32.8) |
Income Taxes - Income_(Loss) Be
Income Taxes - Income/(Loss) Before Tax and Income Tax Expense/(Benefit) Attributable to that Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Examination [Line Items] | |||
(Loss) before tax, Non-U.S. | $ (5.5) | $ 1.8 | $ (26.8) |
(Loss) before tax, U.S. | (60) | (81) | (140.3) |
(Loss) from operations before income tax | (218.8) | (156) | (281.8) |
Current tax (benefit)/expense, Non-U.S. | 4 | 4.4 | 3 |
Current tax (benefit)/expense, U.S. | 1 | 6.1 | 0 |
Current tax (benefit)/expense, Total | (1.7) | (1.7) | 17.1 |
Deferred tax (benefit), Non-U.S. | 0.9 | (0.3) | (0.3) |
Deferred tax (benefit), U.S. | 6.5 | (8.1) | 1.1 |
Deferred tax, Total | 24.7 | (8.5) | (32.5) |
Total tax expense/(benefit), Non-U.S. | 4.9 | 4.1 | 2.7 |
Total tax expense/(benefit), U.S. | 7.4 | (2) | 1.1 |
Total tax expense/(benefit) | 22.9 | (10.2) | (15.4) |
Current tax expenses (benefit) related to prior year | 1 | ||
Deferred tax benefit, unrealized gain on investments | 3.5 | ||
Australian non-resident withholding tax | 1 | 4.4 | 0.9 |
Bermuda | |||
Income Tax Examination [Line Items] | |||
(Loss) before tax, Non-U.S. | (107.6) | (72.1) | (130) |
Current tax (benefit)/expense, Non-U.S. | 0 | 0 | 0 |
Deferred tax (benefit), Non-U.S. | 0 | 0 | 0 |
Total tax expense/(benefit), Non-U.S. | 0 | 0 | 0 |
U.K. | |||
Income Tax Examination [Line Items] | |||
(Loss) before tax, Non-U.S. | (45.7) | (4.7) | 15.3 |
Current tax (benefit)/expense, Non-U.S. | (6.7) | (12.2) | 14.1 |
Deferred tax (benefit), Non-U.S. | 17.3 | (0.1) | (33.3) |
Total tax expense/(benefit), Non-U.S. | 10.6 | $ (12.3) | $ (19.2) |
U.S branch of Aspen U.K. | |||
Income Tax Examination [Line Items] | |||
Valuation allowance, associated losses | $ 9.9 |
Income Taxes - Income Tax Recon
Income Taxes - Income Tax Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Loss Carryforwards [Line Items] | |||
Expected tax (benefit)/expense | $ 0 | $ 0 | $ 0 |
Overseas statutory tax rates differential | (21.2) | (17.1) | (41.5) |
Base erosion and anti-abuse tax (BEAT) expense | 0.3 | 6 | 0 |
Prior year adjustments | (1.7) | 1.4 | 1.3 |
Valuation allowance (2) | 42.6 | 7.1 | (37.9) |
Impact of unrecognized tax benefits | 0 | (12.8) | 0.1 |
Restricted foreign tax credits | 1.5 | 0 | 0.7 |
Australian non-resident withholding tax | 1 | 4.4 | 0.9 |
Share-based payments | (0.6) | 0.2 | (0.9) |
Foreign exchange | 0 | 0.1 | (2.1) |
Non-deductible expenses | 0 | 0.7 | 0.4 |
Non-taxable items | (0.1) | (0.3) | (0.9) |
Impact of changes in statutory tax rates | 1.1 | 0.1 | 64.5 |
Total tax expense/(benefit) | 22.9 | $ (10.2) | $ (15.4) |
U.S branch of Aspen U.K. | |||
Operating Loss Carryforwards [Line Items] | |||
Valuation allowance, associated losses | 9.9 | ||
Lloyds syndicate | |||
Operating Loss Carryforwards [Line Items] | |||
Valuation allowance, associated losses | $ 28.2 |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | ||
Unrecognized tax benefits balance at January 1 | $ 0 | $ 11.2 |
Foreign exchange re-translation | 0 | (0.2) |
Prior year reductions | 0 | (11) |
Unrecognized tax benefits balance at December 31 | $ 0 | $ 0 |
Income Taxes - Tax Effects of D
Income Taxes - Tax Effects of Deferred Tax Assets and Deferred Tax Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Share-based payments | $ 0.3 | $ 2.2 |
Operating loss carryforwards | 121.5 | 126.4 |
Net loss reserves and loss adjustment expenses | 5 | 5 |
Unrealized losses on investments | 0 | 0.8 |
Accrued expenses | 7.1 | 7.9 |
Foreign tax credit carryforwards | 0 | 3.8 |
Unearned premiums | 15.3 | 15.5 |
Deferred policy acquisition costs | 0.1 | 0 |
Office properties and equipment | 16.8 | 11.1 |
Operating lease liability | 21.5 | 3.3 |
Other temporary differences | 6.1 | 0 |
Total gross deferred tax assets | 193.7 | 176 |
Less valuation allowance | (149.2) | (111.9) |
Net deferred tax assets | 44.5 | 64.1 |
Equalization provision reserves | 0 | 0 |
Unrealized (gains) on investments | (2.7) | 0 |
Intangible assets | (1.6) | (2.5) |
Deferred policy acquisition costs | (16.4) | (18.5) |
Quota share losses | 0 | (0.6) |
Loss portfolio transfer costs | 0 | (6.1) |
Operating lease assets | (19.9) | 0 |
Other temporary differences | (3.9) | (1) |
Total gross deferred tax (liabilities) | (44.5) | (28.7) |
Deferred Tax Assets, Net | $ 0 | $ 35.4 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | 8 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2021 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | |
Income Taxes [Line Items] | |||||
United States corporate tax at a rate | 21.00% | 34.00% | |||
Prior year reductions | $ 0 | $ (11,000,000) | |||
Accrued penalties | 0 | 0 | |||
Accrued interest | $ 1,800,000 | ||||
Less valuation allowance | 149,200,000 | 111,900,000 | |||
Increase (decrease) in valuation allowance | 9,200,000 | 7,100,000 | |||
US branch profits, subject to tax | 0 | 0 | |||
Other Comprehensive Income | |||||
Income Taxes [Line Items] | |||||
Less valuation allowance | 0 | 0 | |||
Internal Revenue Service (IRS) | |||||
Income Taxes [Line Items] | |||||
Net operating loss carryforwards | 606,800,000 | 599,400,000 | |||
Operating loss carryforwards, subject to s382 limitation | 24,900,000 | ||||
Operating loss carryforwards, remaining | 581,900,000 | ||||
Operating loss carryforwards, subject to expiration date | 534,500,000 | ||||
Operating loss carryforwards, not subject to expiration | 47,400,000 | ||||
Capital loss carryforwards | 500,000 | 300,000 | |||
Charitable contribution carryforwards | 1,100,000 | 800,000 | |||
Less valuation allowance | $ 117,400,000 | 108,200,000 | |||
Internal Revenue Service (IRS) | Minimum | |||||
Income Taxes [Line Items] | |||||
Operating loss carryforwards, date of expiration | 2026 | ||||
Internal Revenue Service (IRS) | Maximum | |||||
Income Taxes [Line Items] | |||||
Operating loss carryforwards, date of expiration | 2039 | ||||
U.K. | |||||
Income Taxes [Line Items] | |||||
U. K. corporate tax rate reduced during the period | 20.00% | 19.00% | |||
Net operating loss carryforwards | $ 93,200,000 | 59,300,000 | |||
Capital loss carryforwards | 3,800,000 | ||||
Less valuation allowance | 31,800,000 | 3,700,000 | |||
Increase (decrease) in valuation allowance | 28,200,000 | 0 | |||
U.K. | Other Comprehensive Income | |||||
Income Taxes [Line Items] | |||||
Less valuation allowance | $ 0 | 0 | |||
Bermuda | |||||
Income Taxes [Line Items] | |||||
Bermuda tax rate | 0.00% | ||||
Forecast | U.K. | |||||
Income Taxes [Line Items] | |||||
U. K. corporate tax rate reduced during the period | 17.00% | ||||
Valuation Allowance, Operating Loss Carryforwards | |||||
Income Taxes [Line Items] | |||||
Increase (decrease) in valuation allowance | $ 9,200,000 | 7,100,000 | |||
Valuation Allowance, Operating Loss Carryforwards | U.K. | |||||
Income Taxes [Line Items] | |||||
Less valuation allowance | $ 28,200,000 | $ 0 |
Capital Structure - Summary of
Capital Structure - Summary of Authorized and Issued Share Capital (Details) - USD ($) | Dec. 31, 2019 | Aug. 13, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | May 02, 2013 |
Authorized share capital: | |||||
Number of ordinary shares | 70,000,000 | 969,629,030 | |||
Number of non-voting shares | 0 | 6,787,880 | |||
Number of preference shares | 30,000,000 | 100,000,000 | |||
Ordinary Shares, authorized | $ 700,000 | $ 1,469,000 | |||
Non-Voting Shares, authorized | 0 | 10,000 | |||
Preference Shares, authorized | 45,000 | 152,000 | |||
Total authorized share capital | $ 745,434 | 1,631,000 | |||
Issued share capital: | |||||
Ordinary shares, issued | 60,395,839 | ||||
Ordinary shares, value | $ 604,000 | $ 90,000 | |||
Previous Common Stock Shares Issued | 0 | 59,743,156 | 59,474,085 | ||
Total issued share capital | $ 636,000 | $ 122,000 | |||
5.950% Preference Shares (AHL PRC) | |||||
Issued share capital: | |||||
Preference shares, issued | 11,000,000 | 11,000,000 | 11,000,000 | ||
Preference shares, value | $ 17,000 | $ 17,000 | |||
Preference shares, rate | 5.95% | 5.95% | |||
5.625% Preference Shares (AHL PRD) | |||||
Issued share capital: | |||||
Preference shares, issued | 10,000,000 | 10,000,000 | |||
Preference shares, value | $ 15,000 | $ 15,000 | |||
Preference shares, rate | 5.625% | 5.625% | |||
5.625% Preference Shares, rep by Dep Shares (AHL PRE) | |||||
Issued share capital: | |||||
Preference shares, issued | 10,000,000 | 10,000,000 | 0 | ||
Preference shares, value | $ 0 | $ 0 | |||
Preference shares, rate | 5.625% | 0.00% |
Capital Structure - Summary o_2
Capital Structure - Summary of Authorized and Issued Share Capital (Phantom) (Detail) - $ / shares | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2019 | Aug. 13, 2019 | Dec. 31, 2016 | May 02, 2013 | |
Class of Stock [Line Items] | |||||
Ordinary shares, par value | $ 0.0015144558 | $ 0.01 | |||
Non-voting shares, par value | 0.0015144558 | ||||
Preference shares, par value | 0.0015144558 | 0.0015144558 | |||
Redemption price per share | 25 | 25 | |||
5.950% Preference Shares (AHL PRC) | |||||
Class of Stock [Line Items] | |||||
Preference shares, par value | 0.0015144558 | 0.0015144558 | |||
Redemption price per share | $ 25 | $ 25 | $ 25 | ||
Preference shares, rate | 5.95% | 5.95% | |||
5.625% Preference Shares (AHL PRD) | |||||
Class of Stock [Line Items] | |||||
Preference shares, par value | $ 0.0015144558 | $ 0.0015144558 | |||
Redemption price per share | $ 25 | $ 25 | $ 25 | ||
Preference shares, rate | 5.625% | 5.625% | |||
5.625% Preference Shares, rep by Dep Shares (AHL PRE) | |||||
Class of Stock [Line Items] | |||||
Preference shares, par value | $ 0 | $ 0.0015144558 | |||
Redemption price per share | $ 0 | $ 25 | $ 25 | ||
Preference shares, rate | 0.00% | 5.625% | |||
Depositary share interest of 1/1000th in each 5.625% | 0.00% |
Capital Structure - Summary o_3
Capital Structure - Summary of Ordinary Shares (Details) - shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Equity [Abstract] | ||
Previous ordinary shares in issue at the beginning of the year | 59,743,156 | 59,474,085 |
Ordinary shares issued to employees under the 2013 share incentive plan and/or 2008 share purchase plan | 144,269 | 229,318.335397318 |
Ordinary shares issued to non-employee directors | 6,993 | 39,752.6646026832 |
Ordinary shares canceled | (59,894,418) | 0 |
Previous ordinary shares in issue at the end of the year | 0 | 59,743,156 |
New ordinary shares issued of $0.01 per share | 60,395,839 |
Capital Structure - Additional
Capital Structure - Additional Information (Details) - USD ($) | Feb. 28, 2020 | Aug. 13, 2019 | Jan. 03, 2017 | Sep. 20, 2016 | Jul. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jul. 03, 2017 | May 02, 2013 |
Class of Stock [Line Items] | |||||||||||
Additional paid in capital | $ 1,201,700,000 | $ 967,500,000 | |||||||||
Aggregate liquidation preferences | 775,000,000 | 525,000,000 | |||||||||
Preferred stock issuance cost | 21,500,000 | 13,100,000 | |||||||||
Authorized share capital | $ 745,434 | $ 1,631,000 | |||||||||
Number of ordinary shares | 70,000,000 | 969,629,030 | |||||||||
Ordinary shares, par value | $ 0.01 | $ 0.0015144558 | |||||||||
Number of preference shares | 30,000,000 | 100,000,000 | |||||||||
Preference shares, par value | $ 0.0015144558 | $ 0.0015144558 | |||||||||
Ordinary shares, issued | 60,395,839 | ||||||||||
Preferred Stock, Redemption Amount | $ 133,200,000 | $ 160,000,000 | $ 275,000,000 | ||||||||
Redemption price per share | $ 25 | 25 | |||||||||
Preference shares liquidation preference, value | $ 250,000,000 | $ 250,000,000 | |||||||||
5.950% Preference Shares (AHL PRC) | |||||||||||
Class of Stock [Line Items] | |||||||||||
Preference shares, par value | $ 0.0015144558 | $ 0.0015144558 | |||||||||
Preference shares, issued | 11,000,000 | 11,000,000 | 11,000,000 | ||||||||
Preference shares, rate | 5.95% | 5.95% | |||||||||
Redemption price per share | $ 25 | $ 25 | $ 25 | ||||||||
5.625% Preference Shares (AHL PRD) | |||||||||||
Class of Stock [Line Items] | |||||||||||
Preferred stock issuance cost | $ 8,700,000 | ||||||||||
Preference shares, par value | $ 0.0015144558 | $ 0.0015144558 | |||||||||
Preference shares, issued | 10,000,000 | 10,000,000 | |||||||||
Preference shares, rate | 5.625% | 5.625% | 5.625% | 5.625% | |||||||
Redemption price per share | $ 25 | $ 25 | $ 25 | ||||||||
5.625% Preference Shares, rep by Dep Shares (AHL PRE) | |||||||||||
Class of Stock [Line Items] | |||||||||||
Preferred stock issuance cost | $ 8,400,000 | ||||||||||
Preference shares, par value | $ 0.0015144558 | $ 0 | |||||||||
Preference shares, issued | 10,000,000 | 10,000,000 | 0 | ||||||||
Preference shares, rate | 5.625% | 5.625% | 5.625% | 0.00% | |||||||
Redemption price per share | $ 25 | $ 25 | $ 0 | ||||||||
7.401% Preference Shares | |||||||||||
Class of Stock [Line Items] | |||||||||||
Preference shares, rate | 7.401% | 7.401% | |||||||||
Redemption price per share | $ 25 | ||||||||||
7.250% Preference Shares | |||||||||||
Class of Stock [Line Items] | |||||||||||
Preference shares, rate | 7.25% | 7.25% | |||||||||
Additional paid-in capital | Preference Shares | |||||||||||
Class of Stock [Line Items] | |||||||||||
Proceeds or share issuance | $ 241,600,000 | $ 0 | $ 0 | ||||||||
Preference shares redeemed and cancelled | $ 0 | $ 0 | $ (293,200,000) | $ (293,200,000) |
Statutory Requirements and Di_3
Statutory Requirements and Dividends Restrictions - Summary of Statutory Requirements and Dividends Restrictions (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
U.S. | ||
Required statutory capital and surplus | $ 404 | $ 351 |
Actual statutory capital and surplus | 502 | 543 |
Bermuda | ||
Required statutory capital and surplus | 788.4 | 801.9 |
Actual statutory capital and surplus | 1,380.6 | 1,575.5 |
U.K. | ||
Required statutory capital and surplus | 782 | 772.1 |
Actual statutory capital and surplus | $ 841.9 | $ 857.9 |
Statutory Requirements and Di_4
Statutory Requirements and Dividends Restrictions - Additional Information (Details) - 12 months ended Dec. 31, 2019 £ in Millions, $ in Millions | USD ($) | GBP (£) |
AUL | ||
Statutory Accounting Practices [Line Items] | ||
Syndicate to maintain funds at Lloyd | $ 491.9 | |
Total funds held by AUL | 516.9 | |
U.K. | ||
Statutory Accounting Practices [Line Items] | ||
Dividend payment made without regulatory approval | (243) | £ (84.8) |
Capital contributions reserves | 470 | |
Bermuda | ||
Statutory Accounting Practices [Line Items] | ||
Dividend payment made without regulatory approval | $ (345.2) | |
Statutory capital and surplus, percent | 25.00% | |
Statutory capital and surplus, percent reduction requiring approval | 15.00% | |
Percent warning level of amount of enhanced capital required from statutory capital and surplus | 120.00% | |
Bermuda | AUL | ||
Statutory Accounting Practices [Line Items] | ||
Total funds held by AUL | $ 482.3 |
Dividends - Summary of Declared
Dividends - Summary of Declared Dividends (Details) - $ / shares | Feb. 28, 2020 | Aug. 13, 2019 | Sep. 20, 2016 | Dec. 31, 2019 | Dec. 31, 2018 |
5.950% Preference Shares (AHL PRC) | |||||
Dividends Payable [Line Items] | |||||
Preference shares, rate | 5.95% | 5.95% | |||
5.625% Preference Shares (AHL PRD) | |||||
Dividends Payable [Line Items] | |||||
Preference shares, rate | 5.625% | 5.625% | 5.625% | 5.625% | |
5.625% Preference Shares, rep by Dep Shares (AHL PRE) | |||||
Dividends Payable [Line Items] | |||||
Preference shares, rate | 5.625% | 5.625% | 5.625% | 0.00% | |
Depositary share interest of 1/1000th in each 5.625% | 0.00% | ||||
Subsequent Event | 5.950% Preference Shares (AHL PRC) | |||||
Dividends Payable [Line Items] | |||||
Dividend, in usd per share | $ 0.3719 | ||||
Payable Date | Apr. 1, 2020 | ||||
Record Date | Mar. 15, 2020 | ||||
Preference shares, rate | 5.95% | ||||
Subsequent Event | 5.625% Preference Shares (AHL PRD) | |||||
Dividends Payable [Line Items] | |||||
Dividend, in usd per share | $ 0.3516 | ||||
Payable Date | Apr. 1, 2020 | ||||
Record Date | Mar. 15, 2020 | ||||
Subsequent Event | 5.625% Preference Shares, rep by Dep Shares (AHL PRE) | |||||
Dividends Payable [Line Items] | |||||
Dividend, in usd per share | $ 351.56 | ||||
Payable Date | Apr. 1, 2020 | ||||
Record Date | Mar. 15, 2020 | ||||
Depositary share interest of 1/1000th in each 5.625% | 0.001% | ||||
Depositary share dividend, equivalent to 1/1000th pref share dividend | $ 0.35156 |
Retirement Plans (Details)
Retirement Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |||
Rate of contribution on retirement plans of its employees salaries, Maximum | 20.00% | ||
Total contributions by the Company to the retirement plan | $ 12.9 | $ 16 | $ 16.3 |
Share-Based Payments and Long_2
Share-Based Payments and Long-term Incentive Plan - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Business acquisition, share price | $ 42.75 | |
Share-based payment and LTIP expense | $ 3.5 | |
Allocated share-based compensation expense | 21.6 | |
Allocated share-based compensation expense offset | 21.6 | |
Other share-based arrangements, expense | 1.9 | |
Income tax benefit | 0.3 | |
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated share-based compensation expense | 0.8 | |
Deferred cash awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated share-based compensation expense | $ 0.8 |
Intangible Assets - Summary of
Intangible Assets - Summary of Changes in Intangible Assets (Details) - USD ($) $ in Millions | Dec. 18, 2017 | Dec. 31, 2019 | Dec. 31, 2018 |
Finite and Indefinite Lived Intangible Assets [Roll Forward] | |||
Amortization | $ (1.5) | $ (1.6) | |
Goodwill [Roll Forward] | |||
Goodwill, Beginning of the period | 3.9 | 3.9 | |
Goodwill, Additions (Disposals) | 0 | 0 | |
Goodwill, Impairment Loss | 0 | 0 | |
Goodwill, End of the Period | 3.9 | 3.9 | |
Intangible Assets and goodwill, Beginning of the period | 26.3 | 27.9 | |
Intangible Assets and Goodwill, Additions (Disposals) | 0 | 0 | |
Goodwill and Intangible Asset Impairment | (0.9) | 0 | |
Intangible Assets and goodwill, End of the period | 23.9 | 26.3 | |
Trademarks | |||
Finite and Indefinite Lived Intangible Assets [Roll Forward] | |||
Intangible Assets, Beginning of the period | 2.5 | 2.9 | |
Intangible Assets acquired (disposed) | $ 0 | 0 | |
Amortization | (0.6) | (0.4) | |
Impairment of intangible assets (excluding goodwill) | 0 | 0 | |
Intangible Assets, End of the period | 1.9 | 2.5 | |
Agency Relationships | |||
Finite and Indefinite Lived Intangible Assets [Roll Forward] | |||
Intangible Assets, Beginning of the period | 1.8 | 2.3 | |
Intangible Assets acquired (disposed) | 0 | 0 | |
Amortization | (0.6) | (0.5) | |
Impairment of intangible assets (excluding goodwill) | 0 | 0 | |
Intangible Assets, End of the period | 1.2 | 1.8 | |
Renewal Rights | |||
Finite and Indefinite Lived Intangible Assets [Roll Forward] | |||
Intangible Assets, Beginning of the period | 1 | 1.4 | |
Intangible Assets acquired (disposed) | 0 | 0 | |
Amortization | (0.1) | (0.4) | |
Impairment of intangible assets (excluding goodwill) | (0.9) | 0 | |
Intangible Assets, End of the period | 0 | 1 | |
Non-compete Agreements | |||
Finite and Indefinite Lived Intangible Assets [Roll Forward] | |||
Intangible Assets, Beginning of the period | 0.4 | 0.7 | |
Intangible Assets acquired (disposed) | $ 0 | 0 | |
Amortization | (0.2) | (0.3) | |
Impairment of intangible assets (excluding goodwill) | 0 | 0 | |
Intangible Assets, End of the period | 0.2 | 0.4 | |
Insurance Licenses | |||
Finite and Indefinite Lived Intangible Assets [Roll Forward] | |||
Intangible Assets, Beginning of the period | 16.7 | 16.7 | |
Intangible Assets acquired (disposed) | 0 | 0 | |
Amortization | 0 | 0 | |
Impairment of intangible assets (excluding goodwill) | 0 | 0 | |
Intangible Assets, End of the period | $ 16.7 | $ 16.7 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Narrative) (Details) - USD ($) $ in Millions | Jan. 01, 2017 | Oct. 31, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Blue Waters | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill, acquired | $ 2.1 | ||||
Trademarks | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Value of the asset | $ 1.9 | $ 2.5 | $ 2.9 | ||
Trademarks | Blue Waters | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Value of the asset | 0.5 | ||||
Aspen trademark | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Value of the asset | $ 1.4 | ||||
Blue Waters | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Economic useful life | 5 years | ||||
Insurance Licenses | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Value of the asset | $ 16.7 | 16.7 | 16.7 | ||
Renewal Rights | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Value of the asset | $ 0 | $ 1 | $ 1.4 | ||
Digital Re | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill, acquired | $ 1.8 | ||||
Equity method investment, ownership percentage | 49.00% |
Operating Leases - Schedule of
Operating Leases - Schedule of Operating Lease Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Leases [Abstract] | |||
Amortization of right-of-use operating lease assets | $ 13.4 | $ 0 | $ 0 |
Interest on operating lease liability | 4.6 | ||
Operating lease charge | $ 18 | $ 0 | $ 0 |
Operating Leases - Schedule o_2
Operating Leases - Schedule of Operating Lease Liability, Maturity (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
Liability, Payments, Next twelve months (2020) | $ 17.7 | |
Liability, Payments, Due year two (2021) | 16.4 | |
Liability, Payments, Due year three (2022) | 13 | |
Liability, Payments, Due year four (2023) | 12.2 | |
Liability, Payments, Due year five (2024) | 11.7 | |
Liability, Payments, Due after year five | 73.6 | |
Total minimum lease payments | 144.6 | |
Less imputed interest | (31.4) | |
Operating lease liabilities | $ 113.2 | $ 95.5 |
Operating Leases - Schedule o_3
Operating Leases - Schedule of Operating Leases Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Leases [Abstract] | |||
Operating lease liabilities | $ (18) | $ 0 | $ 0 |
Asset obtained in exchange for operating lease liability | 37.3 | ||
Reduction of right-of use assets resulting from reductions to lease obligations | $ 6.1 | ||
Operating lease, weighted average remaining lease term (years( | 10 years 1 month 6 days | ||
Operating lease, weighted average discount rate (percent) | 5.00% |
Operating Leases - Narrative (D
Operating Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | |||
Right-of-use operating lease assets | $ 93.5 | $ 88.1 | $ 0 |
Operating lease liabilities | 113.2 | $ 95.5 | |
Non-operating expenses related to impairment charges on lease assets | $ 12.3 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Related Party Transaction [Line Items] | |
Plus component of annual investment management fee | 0.25 |
Annual fee cap | 0.15 |
Asset Management Arrangement | |
Related Party Transaction [Line Items] | |
Notice of termination of agreement | 60 days |
Related party fees | $ 3,500 |
Related party fees still due | 2,200 |
Management Consulting Agreement | |
Related Party Transaction [Line Items] | |
Related party fees | 4,400 |
Related party fees still due | $ 1,300 |
Affiliated transactions | |
Related Party Transaction [Line Items] | |
Initial term | 8 years |
Automatic twelve month extension | 12 months |
Automatic twelve month extension, eight years | 8 years |
Automatic twelve month extension, nine years | 9 years |
Term extension period | 30 days |
Beneficial owner | |
Related Party Transaction [Line Items] | |
Intercompany balance payable | $ 18,100 |
Maximum | |
Related Party Transaction [Line Items] | |
Related party contracts, aggregate and individual, maximum | $ 50 |
Percentage of consolidated group's net income due to Apollo Management | 1.00% |
Fees due to Apollo Management | $ 5,000 |
Maximum | Beneficial owner | |
Related Party Transaction [Line Items] | |
Ownership percentage | 0.9 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Company's Restricted Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Sep. 19, 2018 | May 01, 2018 | Dec. 31, 2017 | |
Fair Value, Separate Account Investment [Line Items] | |||||
Total restricted assets | $ 4,268.3 | $ 4,419.2 | |||
Other investments | $ 111.4 | $ 102.5 | |||
Total as percent of investable assets | 54.40% | 56.40% | |||
Securities and cash as collateral secured letters of credit | $ 635.4 | $ 771.1 | |||
Affiliated transactions | |||||
Fair Value, Separate Account Investment [Line Items] | |||||
Total restricted assets | 754.9 | 1,033.9 | |||
Third party | |||||
Fair Value, Separate Account Investment [Line Items] | |||||
Total restricted assets | 2,766.6 | 2,511.7 | |||
Letters of credit / guarantees | |||||
Fair Value, Separate Account Investment [Line Items] | |||||
Total restricted assets | 635.4 | 771.1 | |||
Limited Partner | Real estate fund | |||||
Fair Value, Separate Account Investment [Line Items] | |||||
Total restricted assets | $ 100 | ||||
Other investments | $ 111.4 | $ 102.5 | $ 13.8 | $ 86.2 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Details) $ / shares in Units, £ in Millions, SFr in Millions, $ in Millions, $ in Millions, $ in Millions, $ in Millions | 12 Months Ended | |||||||||||||||||
Dec. 31, 2019USD ($)Investment | Dec. 31, 2018USD ($)Investment | Dec. 31, 2019GBP (£)Investment | Dec. 31, 2019AUD ($)Investment | Dec. 31, 2019CHF (SFr)Investment | Dec. 31, 2019CAD ($)Investment | Dec. 31, 2019SGD ($)Investment | Dec. 27, 2019USD ($) | Dec. 23, 2019USD ($) | Mar. 31, 2019$ / shares | Dec. 31, 2018GBP (£)Investment | Dec. 31, 2018AUD ($)Investment | Dec. 31, 2018CHF (SFr)Investment | Dec. 31, 2018CAD ($)Investment | Dec. 31, 2018SGD ($)Investment | Sep. 19, 2018USD ($) | May 01, 2018USD ($) | Dec. 31, 2017USD ($) | |
Restricted Cash And Collateral [Line Items] | ||||||||||||||||||
Restricted assets | $ 4,268.3 | $ 4,419.2 | ||||||||||||||||
Other investments (equity method) | $ 111.4 | $ 102.5 | ||||||||||||||||
Total as percent of investable assets | 54.40% | 56.40% | ||||||||||||||||
Investable assets held by the Company | $ 7,800 | $ 7,800 | ||||||||||||||||
Investable assets held by insurance regulators | $ 513.1 | 503.2 | ||||||||||||||||
Minimum capital required | £ | £ 0.4 | £ 0.4 | ||||||||||||||||
Percentage of reinsurance liabilities | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | ||||||||||||
Reinsurance liabilities | $ 1,374.4 | 1,311.4 | ||||||||||||||||
Assets held-in-trust | 1,395.2 | 1,336.4 | ||||||||||||||||
Regulatory deposits | 6.1 | 6 | ||||||||||||||||
Deposit with states | $ 6.7 | $ 6.1 | ||||||||||||||||
Number of investments | Investment | 1 | 2 | 1 | 1 | 1 | 1 | 1 | 2 | 2 | 2 | 2 | 2 | ||||||
Business acquisition, share price | $ / shares | $ 42.75 | |||||||||||||||||
Us Multi Beneficiary Trust Fund | ||||||||||||||||||
Restricted Cash And Collateral [Line Items] | ||||||||||||||||||
Minimum trust fund | $ 20 | |||||||||||||||||
Assets held-in-trust | 846.2 | $ 1,112.4 | ||||||||||||||||
Us Surplus Lines Trust Fund | ||||||||||||||||||
Restricted Cash And Collateral [Line Items] | ||||||||||||||||||
Assets held-in-trust | $ 215.5 | 198.8 | ||||||||||||||||
Canadian Trust Fund | ||||||||||||||||||
Restricted Cash And Collateral [Line Items] | ||||||||||||||||||
Assets held-in-trust | $ 155.4 | $ 152.7 | ||||||||||||||||
Australian Trust Fund | ||||||||||||||||||
Restricted Cash And Collateral [Line Items] | ||||||||||||||||||
Assets held-in-trust | $ 226.9 | $ 209.3 | ||||||||||||||||
Swiss Trust Fund | ||||||||||||||||||
Restricted Cash And Collateral [Line Items] | ||||||||||||||||||
Assets held-in-trust | SFr | SFr 8.4 | SFr 9 | ||||||||||||||||
Singapore Trust Fund | ||||||||||||||||||
Restricted Cash And Collateral [Line Items] | ||||||||||||||||||
Assets held-in-trust | $ 148.9 | $ 135.9 | ||||||||||||||||
Bermuda | ||||||||||||||||||
Restricted Cash And Collateral [Line Items] | ||||||||||||||||||
Percentage of reinsurance liabilities | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | ||||||||||||
Reinsurance liabilities | $ 427.7 | 647.8 | ||||||||||||||||
Equity investment | ||||||||||||||||||
Restricted Cash And Collateral [Line Items] | ||||||||||||||||||
Other investments (equity method) | $ 0.2 | $ 5 | ||||||||||||||||
Limited Partner | Real estate fund | ||||||||||||||||||
Restricted Cash And Collateral [Line Items] | ||||||||||||||||||
Restricted assets | $ 100 | |||||||||||||||||
Other investments (equity method) | $ 111.4 | $ 102.5 | $ 13.8 | $ 86.2 |
Concentration of Credit Risk -
Concentration of Credit Risk - Schedule Of Gross Written Premium From Major Brokers (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investment Holdings [Line Items] | |||
Gross written premiums, percentage | 100.00% | 100.00% | 100.00% |
Gross written premiums | $ 3,442.4 | $ 3,446.9 | $ 3,360.9 |
Aon Corporation (1) | |||
Investment Holdings [Line Items] | |||
Gross written premiums, percentage | 13.40% | 15.80% | 16.40% |
Marsh & McLennan Companies, Inc. | |||
Investment Holdings [Line Items] | |||
Gross written premiums, percentage | 13.60% | 15.80% | 16.00% |
Willis Group Holdings, Ltd. | |||
Investment Holdings [Line Items] | |||
Gross written premiums, percentage | 10.30% | 12.40% | 13.10% |
Others | |||
Investment Holdings [Line Items] | |||
Gross written premiums, percentage | 62.70% | 56.00% | 54.50% |
Concentration of Credit Risk _2
Concentration of Credit Risk - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reinsurance [Line Items] | |||
Unpaid losses | $ 2,319.8 | $ 2,077.6 | $ 1,515.2 |
Reinsurance Recoverables, Uncollateralized | 1,817.5 | 1,497.8 | |
Underwriting premiums | 1,318.4 | 1,459.3 | |
Due for settlement | 15.7 | ||
Premium Receivable, Allowance for Credit Loss | $ 23 | $ 16.2 | |
Allowable holdings of a single issue or issuer, percentage | 2.00% | ||
Percentage of written premium major broker accounted minimum | 10.00% | ||
AM Best, A plus Rating | Standard & Poor's, A plus Rating | Everest Re | |||
Reinsurance [Line Items] | |||
Concentration risk percentage | 11.90% | 10.20% | |
AM Best, A plus Rating | Standard & Poor's, A plus Rating | MS & AD Group | |||
Reinsurance [Line Items] | |||
Concentration risk percentage | 9.10% | 10.00% | |
AM Best, A plus Rating | Standard & Poor's, AA- Rating | Munich Re | |||
Reinsurance [Line Items] | |||
Concentration risk percentage | 15.10% | 15.70% |
Reclassifications from Accumu_3
Reclassifications from Accumulated Other Comprehensive Income - Schedule of Accumulated Other Comprehensive Income Reclassification (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
(Loss) from operations before income tax | $ (218.8) | $ (156) | $ (281.8) |
Income tax (expense)/benefit | (22.9) | 10.2 | 15.4 |
General, administrative and corporate expenses | (521.6) | (491.7) | (502.2) |
Net (loss) | (241.7) | (145.8) | (266.4) |
Net (loss) | (241.7) | (145.8) | $ (266.4) |
Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net (loss) | (2.8) | (5.5) | |
Available for sale securities | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Available for sale securities — gross realized gains | (14.4) | 6.7 | |
Realized gains/(losses) on sale of securities | 7.6 | (11.9) | |
(Loss) from operations before income tax | (6.8) | (5.2) | |
Income tax (expense)/benefit | 0 | 0.7 | |
Net (loss) | (6.8) | (4.5) | |
Foreign currency translation adjustments | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Income tax (expense)/benefit | (0.8) | 0.2 | |
General, administrative and corporate expenses | 4.8 | (1.2) | |
Net (loss) | $ 4 | $ (1) |
Credit Facility and Long-Term_3
Credit Facility and Long-Term Debt - Summary of Contractual Obligations Under Long-term Debts (Details) $ in Millions | Dec. 31, 2019USD ($) |
Debt Disclosure [Abstract] | |
Less than 1 year | $ 0 |
1-3 years | 300 |
3-5 years | 0 |
More than 5 years | 0 |
Total | $ 300 |
Credit Facility and Long-Term_4
Credit Facility and Long-Term Debt - Additional Information (Details) - USD ($) | Mar. 27, 2017 | Nov. 13, 2013 | Dec. 15, 2010 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2014 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2016 |
Line of Credit Facility [Line Items] | ||||||||||
Revolving credit facility, credit agreement maximum limit | $ 200,000,000 | |||||||||
Line of credit facility Increasable capacity | $ 100,000,000 | |||||||||
Line of credit facility borrowings outstanding | $ 0 | |||||||||
Minimum consolidated tangible net worth under credit facility | $ 2,323,100,000 | |||||||||
Percentage of consolidated net income | 25.00% | |||||||||
Percentage of aggregate net cash proceeds from the issuance of capital stock | 25.00% | |||||||||
Percentage of consolidated leverage ratio permitted | 35.00% | |||||||||
Payment for extinguishment of debt | $ 5,500,000 | $ 8,600,000 | $ 0 | |||||||
Citibank Europe | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Outstanding collateralized letters of credit facility | $ 444,200,000 | 444,200,000 | ||||||||
London Interbank Offered Rate (LIBOR) | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Line of Credit Facility, Interest Rate During Period | 1.00% | |||||||||
Citibank Europe plc | Letters of credit / guarantees | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Revolving credit facility, credit agreement maximum limit | $ 500,000,000 | |||||||||
Senior Notes | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Debt stated interest rate | 4.65% | 6.00% | ||||||||
Net proceeds from senior notes | $ 299,700,000 | $ 247,500,000 | ||||||||
Loans issued | $ 300,000,000 | $ 250,000,000 | ||||||||
Amount of indebtedness subject to default in payment | $ 50,000,000 | |||||||||
Annual interest payable | $ 14,000,000 | |||||||||
Silverton 2015 | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Loan notes issued by third parties | $ 85,000,000 | |||||||||
Silverton 2015, Third-party Funded | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Loan notes issued by third parties | $ 70,000,000 | |||||||||
Silverton 2016 | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Loan notes issued by third parties | $ 125,000,000 | |||||||||
Silverton 2017 | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Loan notes issued by third parties | $ 130,000,000 | |||||||||
Silverton 2017, Third-party Funded | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Loan notes issued by third parties | $ 105,000,000 | |||||||||
Silverton 2016, Third-party Funded | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Loan notes issued by third parties | $ 100,000,000 |
Subsequent Events Subsequent Ev
Subsequent Events Subsequent Events - Narrative (Details) $ in Millions | Mar. 02, 2020USD ($) | Jan. 01, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Subsequent Event [Line Items] | |||||
Coverage | $ 2,319.8 | $ 2,077.6 | $ 1,515.2 | ||
Interest rate, compounded | 0.25 | ||||
Enstar | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Coverage | $ 800 | ||||
Second coverage | 300 | ||||
Ceded premiums payable | $ 800 | ||||
Interest rate, compounded | 0.0375 | ||||
Enstar | Minimum | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Reinsurance retention policy, amount retained | 3,800 | ||||
Enstar | Maximum | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Reinsurance retention policy, amount retained | 4,600 | ||||
Reinsurance retention policy, second amount retained | $ 4,800 |
Schedule II - Condensed Finan_2
Schedule II - Condensed Financial Information of Registrant Balance Sheets (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||||||
Dec. 31, 2017 | Dec. 31, 2019 | Aug. 13, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2016 | Dec. 31, 2015 | May 02, 2013 | ||
ASSETS | |||||||||
Cash and cash equivalents (including cash within consolidated variable interest entities of — $69.1 and $26.9) | $ 1,054,800 | $ 1,030,500 | $ 1,083,700 | $ 1,273,800 | |||||
Other investments (equity method) | 111,400 | 102,500 | |||||||
Right-of-use operating lease assets | 93,500 | $ 88,100 | 0 | ||||||
Other assets | 1,600 | 0 | |||||||
Total assets | 12,580,500 | 12,532,900 | |||||||
LIABILITIES | |||||||||
Accrued expenses and other payables | 220,800 | 247,400 | |||||||
Long-term debt | 299,800 | 424,700 | |||||||
Operating lease liabilities | 113,200 | $ 95,500 | |||||||
Total liabilities | 9,855,000 | 9,892,500 | |||||||
SHAREHOLDERS’ EQUITY | |||||||||
60,395,839 shares of par value $.01 each (December 31, 2018 — 59,743,156 of par value 0.15144558¢ each) | 604 | 90 | |||||||
Additional paid in capital | 1,201,700 | 967,500 | |||||||
Retained earnings | 1,514,600 | 1,791,000 | |||||||
Non-controlling interest | 0 | 3,700 | |||||||
Total accumulated other comprehensive (loss)/income | (55,900) | 8,600 | (121,900) | ||||||
Total liabilities and shareholders’ equity | $ 12,580,500 | $ 12,532,900 | |||||||
Ordinary shares, issued | 60,395,839 | ||||||||
Ordinary shares, par value | $ 0.01 | $ 0.0015144558 | |||||||
Preference shares, par value | $ 0.0015144558 | $ 0.0015144558 | |||||||
5.950% Preference Shares (AHL PRC) | |||||||||
SHAREHOLDERS’ EQUITY | |||||||||
Preference shares, value | $ 0 | $ 0 | |||||||
Preference shares, issued | 11,000,000 | 11,000,000 | 11,000,000 | ||||||
Preference shares, rate | 5.95% | 5.95% | |||||||
Preference shares, par value | $ 0.0015144558 | $ 0.0015144558 | |||||||
5.625% Preference Shares (AHL PRD) | |||||||||
SHAREHOLDERS’ EQUITY | |||||||||
Preference shares, value | $ 0 | $ 0 | |||||||
Preference shares, issued | 10,000,000 | 10,000,000 | |||||||
Preference shares, rate | 5.625% | 5.625% | |||||||
Preference shares, par value | $ 0.0015144558 | $ 0.0015144558 | |||||||
5.625% Preference Shares (AHL PRE) | |||||||||
SHAREHOLDERS’ EQUITY | |||||||||
Preference shares, value | $ 0 | $ 0 | |||||||
Preference shares, issued | 10,000,000 | 10,000,000 | 0 | ||||||
Preference shares, rate | 5.625% | 0.00% | |||||||
Preference shares, par value | $ 0.0015144558 | $ 0 | |||||||
Parent Company | |||||||||
ASSETS | |||||||||
Short-term investments (available for sale) | $ 0 | $ 0 | |||||||
Fixed income maturities, trading at fair value (amortized cost — $1,106.6 and $1,205.0) | 75,600 | 0 | |||||||
Cash and cash equivalents (including cash within consolidated variable interest entities of — $69.1 and $26.9) | 32,000 | 37,400 | 55,600 | $ 156,300 | |||||
Investments in subsidiaries (1) (2) | 2,973,600 | 3,163,100 | |||||||
Other investments (equity method) | 0 | 3,700 | |||||||
Eurobond issued by subsidiary | 0 | 0 | |||||||
Long-term debt issued by Silverton | 0 | 1,100 | |||||||
Intercompany funds due from affiliates | 100 | 0 | |||||||
Right-of-use operating lease assets | 1,400 | 0 | |||||||
Other assets | 6,900 | 9,000 | |||||||
Total assets | 3,095,000 | 3,232,500 | |||||||
LIABILITIES | |||||||||
Accrued expenses and other payables | 7,200 | 47,300 | |||||||
Intercompany funds due to affiliates | 61,200 | 120,100 | |||||||
Long-term debt | 299,800 | 424,700 | |||||||
Operating lease liabilities | 1,300 | 0 | |||||||
Total liabilities | 369,500 | 592,100 | |||||||
SHAREHOLDERS’ EQUITY | |||||||||
60,395,839 shares of par value $.01 each (December 31, 2018 — 59,743,156 of par value 0.15144558¢ each) | 600 | 100 | |||||||
Additional paid in capital | 1,201,700 | 967,500 | |||||||
Retained earnings | 1,514,600 | 1,791,000 | |||||||
Non-controlling interest | 0 | 3,700 | |||||||
Gain/(loss) on derivatives | 84,500 | (66,800) | |||||||
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) on Derivatives, Effect Net of Tax | 4,300 | 300 | |||||||
Gains on foreign currency translation | (80,200) | (55,400) | |||||||
Total accumulated other comprehensive (loss)/income | 8,600 | (121,900) | |||||||
Total shareholders’ equity | 2,725,500 | 2,640,400 | |||||||
Total liabilities and shareholders’ equity | $ 3,095,000 | $ 3,232,500 | |||||||
Ordinary shares, issued | 0 | 59,743,176 | |||||||
Ordinary shares, par value | $ 0.0015144558 | $ 0.0015144558 | |||||||
Parent Company | 5.950% Preference Shares (AHL PRC) | |||||||||
SHAREHOLDERS’ EQUITY | |||||||||
Preference shares, value | $ 0 | $ 0 | |||||||
Preference shares, issued | 11,000,000 | 11,000,000 | |||||||
Preference shares, rate | 5.95% | 5.95% | |||||||
Preference shares, par value | $ 0.0015144558 | $ 0.0015144558 | |||||||
Parent Company | 5.625% Preference Shares (AHL PRD) | |||||||||
SHAREHOLDERS’ EQUITY | |||||||||
Preference shares, value | $ 0 | $ 0 | |||||||
Preference shares, issued | 10,000,000 | 10,000,000 | |||||||
Preference shares, rate | 5.625% | 5.625% | |||||||
Preference shares, par value | $ 0.0015144558 | $ 0.15144558 | |||||||
Parent Company | 5.625% Preference Shares (AHL PRE) | |||||||||
SHAREHOLDERS’ EQUITY | |||||||||
Preference shares, value | $ 0 | $ 0 | |||||||
Preference shares, issued | 10,000,000 | 0 | |||||||
Preference shares, rate | 5.625% | 0.00% | |||||||
Preference shares, par value | $ 0.0015144558 | $ 0 | |||||||
Restatement Adjustment | Retained earnings | |||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||
Retained earnings restatement | [1] | $ 15,600 | |||||||
[1] | Reinsurance premiums payables and retained earnings have been restated by $15.6 million from January 1, 2017 to account for additional ceded premiums on excess of loss ceded reinsurance contracts for periods December 31, 2016 and prior. |
Schedule II - Condensed Finan_3
Schedule II - Condensed Financial Information of Registrant Statements of Operations and Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Financial Statements, Captions [Line Items] | |||
Dividend income | $ 209.1 | $ 207.1 | $ 200.1 |
Other income | 4.9 | 9 | 8.9 |
Total revenues | 2,592.6 | 2,531.9 | 2,653.4 |
Expenses | |||
General, administrative and corporate expenses | (521.6) | (491.7) | (502.2) |
Other expenses | (1.7) | (2.7) | (4.9) |
(Loss) from operations before income tax | (218.8) | (156) | (281.8) |
Income tax (expense)/benefit | (22.9) | 10.2 | 15.4 |
Net (loss) | (241.7) | (145.8) | (266.4) |
Proportion due to non-controlling interest | 1.2 | (1) | (1.3) |
Net (loss)/income attributable to Aspen Insurance Holdings Limited’s ordinary shareholders | (240.5) | (146.8) | (267.7) |
Other Comprehensive Income: | |||
Change in unrealized gains on investments | 151.3 | (76.5) | (12.8) |
Other comprehensive (loss)/income, net of tax | 130.5 | (66) | (50.8) |
Total comprehensive (loss) attributable to Aspen Insurance Holdings Limited’s ordinary shareholders | (110) | (212.8) | (318.5) |
Parent Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Equity in net earnings of subsidiaries and other investments, equity method | (415.1) | (371.3) | (590.7) |
Dividend income | 270 | 340.3 | 373.6 |
Interest income on Eurobond | 0 | 0 | 18.7 |
Net realized and unrealized investment gains/(losses) | 2.6 | (5.1) | (2.3) |
Other income | 0 | 0 | 0 |
Total revenues | (142.5) | (36.1) | (200.7) |
Expenses | |||
General, administrative and corporate expenses | (70.2) | (83.8) | (36.2) |
Interest expense | (25.7) | (25.9) | (29.5) |
Other expenses | (3.3) | 0 | 0 |
(Loss) from operations before income tax | (241.7) | (145.8) | (266.4) |
Income tax (expense)/benefit | 0 | 0 | 0 |
Net (loss) | (241.7) | (145.8) | (266.4) |
Proportion due to non-controlling interest | 1.2 | (1) | (1.3) |
Net (loss)/income attributable to Aspen Insurance Holdings Limited’s ordinary shareholders | (240.5) | (146.8) | (267.7) |
Other Comprehensive Income: | |||
Change in unrealized gains on investments | 151.3 | (76.5) | (12.8) |
Net change from current period hedged transactions | 4 | (1.8) | 2.6 |
Change in foreign currency translation adjustment | (24.8) | 12.3 | (40.6) |
Other comprehensive (loss)/income, net of tax | 130.5 | (66) | (50.8) |
Total comprehensive (loss) attributable to Aspen Insurance Holdings Limited’s ordinary shareholders | $ (110) | $ (212.8) | $ (318.5) |
Schedule II - Condensed Finan_4
Schedule II - Condensed Financial Information of Registrant Statements of Cash Flows (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Jan. 31, 2015 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Cash flows (used in)/from operating activities: | |||||
Share-based compensation | $ 0 | $ 10.1 | $ 9.8 | ||
Amortization of right-of-use operating lease assets | 13.4 | 0 | 0 | ||
Interest on operating lease liability | (4.6) | ||||
Change in operating lease liabilities | (18) | 0 | 0 | ||
Net cash (used in) operating activities | (337.8) | (304.5) | (111.5) | ||
Cash flows from/(used in) investing activities: | |||||
Proceeds/(purchases) of short term investments | (193.6) | (16.4) | (96) | ||
Repayment of loan notes issued by Silverton | (125) | (125) | 0 | ||
Payments for acquisitions and investments, net of cash acquired | (1.1) | (1.4) | |||
Net (purchases) of investments, equity method | 0 | (100) | 0 | ||
Net cash from/(used in) investing activities | 218.3 | 657.3 | 419 | ||
Cash flows from/(used in) financing activities: | |||||
Proceeds from the issuance of ordinary shares, net of issuance costs | 1.4 | 2.7 | 0.5 | ||
Preference share redemption | 0 | 0 | (293.2) | ||
Ordinary share repurchase | (0.1) | 0 | (30) | ||
Buy-out of minority interest | (0.8) | 0 | 0 | ||
Cash paid for withholdings purposes | [1] | (2.8) | (4.7) | (9.6) | |
Net cash from/(used in) financing activities | 65.2 | (307.2) | (540.4) | ||
Cash and cash equivalents at beginning of period | 1,083.7 | 1,054.8 | |||
Cash and cash equivalents at end of period | 1,030.5 | 1,083.7 | 1,054.8 | ||
Parent Company | |||||
Cash flows (used in)/from operating activities: | |||||
Net income (1) (excluding equity in net earnings of subsidiaries) | 174.6 | 224.5 | 323 | ||
Share-based compensation | 0 | 10.1 | 9.8 | ||
Realized and unrealized losses/(gains) | 9.6 | (0.7) | (2) | ||
Loss on derivative contracts | (4) | 1.8 | (2.6) | ||
Amortization of right-of-use operating lease assets | 0.3 | 0 | 0 | ||
Interest on operating lease liability | 0.2 | 0 | 0 | ||
Change in other receivables | 0 | 0 | 0 | ||
Change in other assets | 2.1 | (0.2) | (0.2) | ||
Change in accrued expenses and other payables | (51.2) | 51.1 | 7 | ||
Change in intercompany activities | (59) | 63.9 | (27.5) | ||
Change in operating lease liabilities | (0.5) | 0 | 0 | ||
Net cash (used in) operating activities | 72.1 | 350.5 | 307.5 | ||
Cash flows from/(used in) investing activities: | |||||
Proceeds/(purchases) of short term investments | 25.1 | ||||
(Purchases) of fixed income securities | (75.6) | 79.4 | 66.3 | ||
Investment in subsidiaries | (82.7) | (215.9) | (111.9) | ||
Repayment of loan notes issued by Silverton | 0 | 18.6 | 13.5 | ||
Net cash from/(used in) investing activities | (158.3) | (117.9) | (7.1) | ||
Cash flows from/(used in) financing activities: | |||||
Proceeds from the issuance of ordinary shares, net of issuance costs | 1.4 | 2.7 | 0.5 | ||
Proceeds from the issuance of preference shares, net of issuance costs | 241.6 | 0 | 0 | ||
Preference share redemption | 0 | 0 | (293.2) | ||
Ordinary share repurchase | (0.1) | 0 | (30) | ||
Ordinary and preference share dividends paid | (35.9) | (73.4) | (92.4) | ||
Repayment of long-term debt issued by Silverton | 7.7 | 0 | 0 | ||
Realized loss on debt extinguishment | (5.5) | (8.6) | 0 | ||
Cash paid for withholdings purposes | [1] | 0 | (4.7) | (9.6) | |
(Decrease)/increase in cash and cash equivalents | (18.2) | 23.6 | (124.3) | ||
Net cash from/(used in) financing activities | 68 | (209) | (424.7) | ||
Cash and cash equivalents at beginning of period | 55.6 | 32 | 156.3 | ||
Cash and cash equivalents at end of period | 37.4 | 55.6 | 32 | ||
MVI | |||||
Cash flows from/(used in) investing activities: | |||||
Payments for acquisitions and investments, net of cash acquired | $ (0.8) | 0 | (0.2) | (0.1) | |
MVI | Parent Company | |||||
Cash flows from/(used in) investing activities: | |||||
Payments for acquisitions and investments, net of cash acquired | 0 | 0 | (0.1) | ||
Parent | |||||
Cash flows from/(used in) financing activities: | |||||
Buy-out of minority interest | (0.8) | 0 | 0 | ||
Parent | Parent Company | |||||
Cash flows from/(used in) financing activities: | |||||
Long-term debt repayment | $ (125) | $ (125) | $ 0 | ||
[1] | The cash paid to the tax authority when withholding shares from employees’ awards for tax-withholding purposes has been reclassified from operating activity to financing activity following the adoption of ASU 2016-09 -“Compensation — Stock Compensation”. |
Schedule III - Supplementary _2
Schedule III - Supplementary Insurance Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Deferred Policy Acquisition Costs | $ 291.1 | $ 248.5 | $ 294.3 | |
Net Reserves for Losses and LAE | 4,632 | 4,996.6 | 5,234.3 | $ 4,759.2 |
Net Reserves for Unearned Premiums | 1,294 | 1,150.3 | 1,335.3 | |
Net earned premium | 2,293.3 | 2,214.7 | 2,306.6 | |
Net Investment Income | 197.3 | 198.2 | 189 | |
Losses and LAE Expenses | 1,679.7 | 1,573 | 1,994.7 | |
Policy Acquisition Expenses | 412.7 | 371.6 | 400.5 | |
Net written premiums | 2,427.9 | 2,082 | 2,212.5 | |
General and Administrative Expenses | 341.5 | 357.7 | 411.2 | |
Reinsurance | ||||
Deferred Policy Acquisition Costs | 210.3 | 208.3 | 263 | |
Net Reserves for Losses and LAE | 2,605.9 | 2,843.6 | 2,917.1 | |
Net Reserves for Unearned Premiums | 599.9 | 616 | 1,067.3 | |
Net earned premium | 1,255.2 | 1,256.4 | 1,206.1 | |
Losses and LAE Expenses | 917.9 | 927 | 1,116.4 | |
Policy Acquisition Expenses | 264.9 | 260.9 | 235.5 | |
Net written premiums | 1,251.1 | 1,182.9 | 1,250 | |
General and Administrative Expenses | 111.7 | 118.5 | 157.3 | |
Insurance | ||||
Deferred Policy Acquisition Costs | 80.8 | 40.2 | 31.3 | |
Net Reserves for Losses and LAE | 2,026.1 | 2,153 | 2,317.2 | |
Net Reserves for Unearned Premiums | 694.1 | 534.3 | 268 | |
Net earned premium | 1,038.1 | 958.3 | 1,100.5 | |
Losses and LAE Expenses | 761.8 | 646 | 878.3 | |
Policy Acquisition Expenses | 147.8 | 110.7 | 165 | |
Net written premiums | 1,176.8 | 899.1 | 962.5 | |
General and Administrative Expenses | $ 229.8 | $ 239.2 | $ 253.9 |
Schedule IV - Reinsurance Premi
Schedule IV - Reinsurance Premiums Written and Premiums Earned (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |||
Direct | $ 1,956.9 | $ 1,951.2 | $ 1,812.4 |
Assumed | 1,485.5 | 1,495.7 | 1,548.5 |
Ceded | (1,014.5) | (1,364.9) | (1,148.4) |
Net written premiums | 2,427.9 | 2,082 | 2,212.5 |
Gross Amount | 1,927.5 | 1,940.5 | 1,757.4 |
Assumed From Other Companies | 1,494.9 | 1,593.9 | 1,451.8 |
Ceded | (1,129.1) | (1,319.7) | (902.6) |
Net premiums earned | $ 2,293.3 | $ 2,214.7 | $ 2,306.6 |
Percentage of Amount Assumed to Net | 65.20% | 72.00% | 62.90% |
Schedule V - Valuation and Qu_2
Schedule V - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Premiums receivable from underwriting activities | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 16.2 | $ 5.2 | $ 5 |
Charged to Costs and Expenses | 6.8 | 11 | 0.2 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 0 | 0 | 0 |
Balance at End of Year | 23 | 16.2 | 5.2 |
Reinsurance | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 0 | 0 | 0 |
Charged to Costs and Expenses | 0 | ||
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 0 | 0 | 0 |
Balance at End of Year | $ 0 | $ 0 | $ 0 |