Cover Page
Cover Page - shares | 12 Months Ended | |
Dec. 31, 2020 | Mar. 19, 2021 | |
Document Information [Line Items] | ||
Document Type | 20-F | |
Document Registration Statement | false | |
Document Annual Report | true | |
Document Period End Date | Dec. 31, 2020 | |
Document Transition Report | false | |
Document Shell Company Report | false | |
Entity File Number | 001-31909 | |
Entity Registrant Name | ASPEN INSURANCE HOLDINGS LIMITED | |
Entity Incorporation, State or Country Code | D0 | |
Entity Address, Address Line One | 141 Front Street | |
Entity Address, City or Town | Hamilton | |
Entity Address, Postal Zip Code | HM19 | |
Entity Address, Country | BM | |
Entity Common Stock, Shares Outstanding (in shares) | 60,395,839 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | FY | |
Entity Central Index Key | 0001267395 | |
Current Fiscal Year End Date | --12-31 | |
Document Accounting Standard | U.S. GAAP | |
Business Contact | ||
Document Information [Line Items] | ||
Entity Address, Address Line One | 141 Front Street | |
Entity Address, City or Town | Hamilton | |
Contact Personnel Name | Mark Cloutier | |
Entity Address, Postal Zip Code | HM19 | |
Entity Address, Country | BM | |
City Area Code | 441 | |
Local Phone Number | 295-8201 | |
5.95% Fixed-to-Floating Rate Perpetual Non-Cumulative Preference Shares | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 5.95% Fixed-to-Floating Rate Perpetual Non-Cumulative Preference Shares | |
Trading Symbol | AHL PRC | |
Security Exchange Name | NYSE | |
Depositary Shares, each representing a 1/1000th interest in a share of 5.625% Perpetual Non-Cumulative Preference Shares | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares, each representing a 1/1000th interest in a share of 5.625% Perpetual Non-Cumulative Preference Shares | |
Trading Symbol | AHL PRE | |
Security Exchange Name | NYSE | |
5.625% Perpetual Non-Cumulative Preference Shares | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 5.625% Perpetual Non-Cumulative Preference Shares | |
Trading Symbol | AHL PRD | |
Security Exchange Name | NYSE |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Investments: | |||
Fixed income maturities, available for sale (amortized cost — $4,126.7 and $4,845.2) Net allowance for expected credit losses $0.2 — $Nil | $ 4,348,100 | $ 4,958,200 | |
Short term investments available for sale, amortized cost | 88,000 | 117,600 | |
Short-term investments, trading, amortized cost | 35,400 | 79,200 | |
Catastrophe bonds, trading at fair value ( cost — $18.8 and $29.4) | 18,800 | 28,600 | |
Privately-held Investments | 299,300 | 279,700 | |
Investments, equity method | 900 | 67,900 | |
Other investments | 109,400 | 111,400 | |
Total investments | 5,755,300 | 6,771,400 | |
Cash and cash equivalents (including cash within consolidated variable interest entities of — $69.9 and $69.1) | 1,747,300 | 1,030,500 | |
Reinsurance recoverables: | |||
Unpaid losses (1) (net of allowance for expected credit losses of $3.8 — $Nil) | [1] | 3,195,200 | 2,319,800 |
Ceded unearned premiums | 453,700 | 443,700 | |
Receivables: | |||
Underwriting premiums (net of allowance for expected credit losses of $34.0 — $Nil) | 1,279,800 | 1,318,400 | |
Other | 135,200 | 114,300 | |
Funds withheld | 98,000 | 85,000 | |
Deferred policy acquisition costs | 306,600 | 291,100 | |
Derivatives at fair value | 26,800 | 12,900 | |
Receivables for securities sold | 1,400 | 5,100 | |
Office properties and equipment | 77,400 | 64,800 | |
Right-of-use operating lease assets | 74,100 | 93,500 | |
Income tax recoverable | 3,400 | 4,500 | |
Other assets | 8,400 | 1,600 | |
Intangible assets and goodwill | 22,800 | 23,900 | |
Total assets | 13,185,400 | 12,580,500 | |
Insurance reserves | |||
Losses and loss adjustment expenses | 7,165,300 | 6,951,800 | |
Unearned premiums | 1,817,400 | 1,737,700 | |
Total insurance reserves | 8,982,700 | 8,689,500 | |
Reinsurance Payable | [1] | 567,500 | 439,600 |
Payables | |||
Income taxes payable | 3,700 | 2,700 | |
Accrued expenses and other payables | 214,400 | 220,800 | |
Payables for securities purchased | 0 | 2,200 | |
Operating lease liabilities | 106,000 | 113,200 | |
Liabilities under derivative contracts | 13,600 | 87,200 | |
Liabilities, excluding long-term debt | 905,200 | 865,700 | |
Long-term debt | 299,900 | 299,800 | |
Total liabilities | 10,187,800 | 9,855,000 | |
Commitments and contingent liabilities (see Note 20) | 0 | 0 | |
Ordinary shares: | |||
60,395,839 shares of par value $0.01 each (December 31, 2019 — 60,395,839 shares) | 604 | 604 | |
Preference shares: | |||
Non-controlling interest | 0 | 0 | |
Additional paid-in capital | 1,469,700 | 1,201,700 | |
Retained earnings | 1,425,700 | 1,514,600 | |
Accumulated other comprehensive income, net of taxes | 101,600 | 8,600 | |
Total shareholders’ equity | 2,997,600 | 2,725,500 | |
Total liabilities and shareholders’ equity | 13,185,400 | 12,580,500 | |
Plus reinsurance recoverable on unpaid losses at the end of the year | $ 3,195,200 | 2,319,800 | |
Preference shares, par value | $ 0.0015144558 | ||
Fixed income securities, available for sale amortized cost | $ 4,126,700 | 4,845,200 | |
Available-for-sale, net of allowance for expected credit losses | 200 | 600 | |
Unpaid losses (1) (net of allowance for expected credit losses of $3.8 — $Nil) | 3,800 | 3,700 | |
Premium Receivable, Allowance for Credit Loss | $ 34,000 | $ 23,000 | |
5.950% Preference Shares (AHL PRC) | |||
Ordinary shares: | |||
Preferred Stock, Dividend Rate, Percentage | 5.95% | 5.95% | |
Preference shares: | |||
Preference shares, value | $ 0 | $ 0 | |
Preference shares, par value | $ 0.0015144558 | $ 0.0015144558 | |
Preferred Stock, Shares Issued | 11,000,000 | 11,000,000 | |
5.625% Preference Shares (AHL PRD) | |||
Ordinary shares: | |||
Preferred Stock, Dividend Rate, Percentage | 5.625% | 5.625% | |
Preference shares: | |||
Preference shares, value | $ 0 | $ 0 | |
Preference shares, par value | $ 0.0015144558 | $ 0.0015144558 | |
Preferred Stock, Shares Issued | 10,000,000 | 10,000,000 | |
5.625% Preference Shares, rep by Dep Shares (AHL PRE) | |||
Ordinary shares: | |||
Preferred Stock, Dividend Rate, Percentage | 5.625% | 5.625% | |
Preference shares: | |||
Preference shares, value | $ 0 | $ 0 | |
Preference shares, par value | $ 0.0015144558 | $ 0.0015144558 | |
Preferred Stock, Shares Issued | 10,000,000 | 10,000,000 | |
Retained earnings | |||
Preference shares: | |||
Total shareholders’ equity | $ 1,425,700 | $ 1,514,600 | |
Fixed Income Investments | |||
Investments: | |||
Fixed income maturities, available for sale (amortized cost — $4,126.7 and $4,845.2) Net allowance for expected credit losses $0.2 — $Nil | 4,348,100 | 4,958,200 | |
Fixed income maturities, trading at fair value (amortized cost — $844.8 and $1,106.6) | 855,600 | 1,128,800 | |
Short-term investments | |||
Investments: | |||
Fixed income maturities, available for sale (amortized cost — $4,126.7 and $4,845.2) Net allowance for expected credit losses $0.2 — $Nil | 87,800 | 117,600 | |
Fixed income maturities, trading at fair value (amortized cost — $844.8 and $1,106.6) | $ 35,400 | $ 79,200 | |
[1] | Included within reinsurance recoverable for unpaid losses are $770.0 million of recoveries associated with the purchase of an adverse development cover. |
CONSOLIDATED BALANCE SHEETS Con
CONSOLIDATED BALANCE SHEETS Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Fixed income securities, available for sale amortized cost | $ 4,126.7 | $ 4,845.2 |
Fixed income securities, trading, amortized cost | 844.8 | 1,106.6 |
Short term investments available for sale, amortized cost | 88 | 117.6 |
Short-term investments, trading, amortized cost | 35.4 | 79.2 |
Cash and cash equivalents, within VIEs | 69.9 | 69.1 |
Catastrophe Bonds, Fair Value Disclosure | 18.8 | 29.4 |
Privately-held investments, cost, trading at fair value | $ 319.7 | $ 279.2 |
Ordinary shares, par value | $ 0.01 | $ 0.01 |
Ordinary shares, issued | 60,395,839 | 60,395,839 |
Preference shares, par value | $ 0.0015144558 | |
Depositary share interest of 1/1000th in each 5.625% | 0.01% | |
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 | 10,000,000 |
Preference shares, rate | 5.625% | 5.625% |
Preference shares, par value | $ 0.0015144558 | $ 0.0015144558 |
Fixed maturities | ||
Fixed income securities, available for sale amortized cost | $ 4,214.7 | $ 4,962.8 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Revenues | ||||
Net earned premium | $ 2,532.6 | $ 2,293.3 | $ 2,214.7 | |
Net investment income | 154.6 | 197.3 | 198.2 | |
Realized and unrealized investment gains | 98.5 | 97.1 | 110 | |
Other income (1) | 49.8 | [1] | 4.9 | 9 |
Total revenues | 2,835.5 | 2,592.6 | 2,531.9 | |
Expenses | ||||
Losses and loss adjustment expenses | 1,840.8 | 1,679.7 | 1,573 | |
Amortization of deferred policy acquisition costs | 465.7 | 412.7 | 371.6 | |
General, administrative and corporate expenses | 410.9 | 521.6 | 491.7 | |
Interest on long-term debt | 33.9 | 20.2 | 25.9 | |
Change in fair value of derivatives | 65.1 | 144.2 | 31.8 | |
Change in fair value of loan notes issued by variable interest entities | 0 | 3.1 | 4.4 | |
Realized and unrealized investment losses | 27.4 | 10.9 | 174.7 | |
Realized loss on debt extinguishment | 0 | 5.5 | 8.6 | |
Net realized and unrealized foreign exchange losses | 12.4 | 11.8 | 3.5 | |
Other expenses | 10.8 | 1.7 | 2.7 | |
Total expenses | 2,867 | 2,811.4 | 2,687.9 | |
(Loss) from operations before income taxes | (31.5) | (218.8) | (156) | |
Income tax (expense)/benefit | (8.6) | (22.9) | 10.2 | |
Net (loss) | (40.1) | (241.7) | (145.8) | |
Amount attributable to non-controlling interest | 0 | 1.2 | (1) | |
Net (loss) attributable to Aspen Insurance Holdings Limited’s ordinary shareholders | (40.1) | (240.5) | (146.8) | |
Available for sale investments: | ||||
Reclassification adjustment for net realized (losses)/gains on investments included in net income | (67.1) | (6.8) | 5.2 | |
Change in net unrealized gains/(losses) on available for sale securities held | 175.6 | 171.7 | (86.5) | |
Net change from current period hedged transactions | 0.3 | 4.8 | (2.1) | |
Change in foreign currency translation adjustment | (9.6) | (28) | 21.5 | |
Other comprehensive income/(loss), gross of tax | 99.2 | 141.7 | (61.9) | |
Income tax (expense)/benefit thereon: | ||||
Reclassification adjustment for net realized losses on investments included in net income | 0 | 0 | (0.7) | |
Change in net unrealized gains on available for sale securities held | (6.2) | (13.6) | 5.5 | |
Net change from current period hedged transactions | 0 | (0.8) | 0.3 | |
Change in foreign currency translation adjustment | 0 | 3.2 | (9.2) | |
Total income tax expense allocated to other comprehensive (loss) | (6.2) | (11.2) | (4.1) | |
Other comprehensive income/(loss), net of tax | 93 | 130.5 | (66) | |
Total comprehensive income/(loss) attributable to Aspen Insurance Holdings Limited’s ordinary shareholders | 52.9 | (110) | (212.8) | |
Equity method investment, realized gain (loss) on disposal | 10.4 | |||
Insurance | ||||
Revenues | ||||
Net earned premium | 1,240.5 | $ 1,038.1 | $ 958.3 | |
Surety Product Line | Insurance | ||||
Gross realized gain on sale of equity method investment | $ 43.1 | |||
[1] | 2020 includes the gain on sale of our renewal rights on our surety insurance book of business to a third party, totaling $43.1 million. |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Millions | Total | Common Stock | Preference Shares | Non-controlling interest | Minority interest buy-out | Additional paid-in capital | Additional paid-in capitalCommon Stock | Additional paid-in capitalPreference Shares | Retained earnings | Retained earningsCommon Stock | Retained earningsPreference Shares | Gain on derivatives, net of taxes: | Cumulative foreign currency translation adjustments, net of taxes: | Unrealized appreciation on available for sale investments, net of taxes: | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 0.1 | $ 0 | $ 2.7 | $ 954.7 | $ 2,011.3 | $ 2.1 | $ (67.7) | $ 9.7 | |||||||
Net change attributable to non-controlling interest for the year | $ (1) | 1 | |||||||||||||
Shares issued | 0 | $ 2.7 | $ 0 | ||||||||||||
Capital contribution (1) | 0 | ||||||||||||||
Ordinary shares repurchased and canceled | 0 | ||||||||||||||
Share-based compensation | [1] | 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) | ||||||||||||||
Cumulative Effect on Retained Earnings, before Tax | Accounting Standards Update 2016-13 [Member] | 0 | ||||||||||||||
Change for the year, net of income tax | 12.3 | (76.5) | |||||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 2,640.4 | 0.1 | 0 | 3.7 | 967.5 | 1,791 | 0.3 | (55.4) | (66.8) | ||||||
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 | ||||||||||||
Capital contribution (1) | 0 | ||||||||||||||
Ordinary shares repurchased and canceled | (0.1) | ||||||||||||||
Share-based compensation | [1] | (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 | ||||||||||||||
Cumulative Effect on Retained Earnings, before Tax | Accounting Standards Update 2016-13 [Member] | 0 | ||||||||||||||
Change for the year, net of income tax | (24.8) | 151.3 | |||||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 2,725.5 | 0.6 | 0 | 0 | 1,201.7 | 1,514.6 | 4.3 | (80.2) | 84.5 | ||||||
Share-based payment | Accounting Standards Update 2016-09 | 10.1 | ||||||||||||||
Net change from current period hedged transactions | 4 | ||||||||||||||
Total accumulated other comprehensive income/(loss), net of taxes | 8.6 | ||||||||||||||
Net change attributable to non-controlling interest for the year | 0 | 0 | |||||||||||||
Shares issued | 0 | $ 0 | $ 0 | ||||||||||||
Capital contribution (1) | [2] | 268 | |||||||||||||
Ordinary shares repurchased and canceled | 0 | ||||||||||||||
Share-based compensation | [1] | 0 | |||||||||||||
Consideration of minority interest | 0 | ||||||||||||||
Buy-out of minority interest | 0 | $ 0 | 0 | ||||||||||||
Net (loss) | (40.1) | ||||||||||||||
Dividends | $ 0 | $ (44.5) | |||||||||||||
Dividends due to non-controlling interest | 0 | ||||||||||||||
Cumulative Effect on Retained Earnings, before Tax | Accounting Standards Update 2016-13 [Member] | [3] | (4.3) | |||||||||||||
Change for the year, net of income tax | (9.6) | 102.3 | |||||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 2,997.6 | $ 0.6 | $ 0 | $ 0 | $ 1,469.7 | $ 1,425.7 | 4.6 | $ (89.8) | $ 186.8 | ||||||
Net change from current period hedged transactions | $ 0.3 | ||||||||||||||
Total accumulated other comprehensive income/(loss), net of taxes | $ 101.6 | ||||||||||||||
[1] | 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 -“ Compensation — Stock Compensation ”. The balance in 2019 of $(9.9) million relates to the reclassification from additional paid-in capital to accrued expenses and other payables as a result of the net settlement of taxes on restricted share units. (3) As of the year end December 31, 2019, the retained earnings was 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. | ||||||||||||||
[2] | The $268.0 million relates to additional capital contribution received from our parent company Highlands Bermuda Holdco, Ltd. | ||||||||||||||
[3] | The $4.3 million relates to the cumulative effect-adjustment to opening retained earnings as a result of the recognition of current expected credit losses (‘CECL’) in the Company’s available-for-sale investment portfolio and reinsurance recoverables following the adoption of ASU 2016-13. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Cash flows (used in)/from operating activities: | ||||
Net (loss) | $ (40.1) | $ (241.7) | $ (145.8) | |
Proportion due to non-controlling interest | 0 | 1.2 | (1) | |
Adjustments to reconcile net income to net cash flows from operating activities: | ||||
Depreciation and amortization | 45.8 | 39.8 | 43.4 | |
Impairment of lease assets | 12.9 | 12.3 | 0 | |
Amortization of right-of-use operating lease assets | 11.8 | 13.4 | 0 | |
Interest on operating lease liabilities | 5.5 | 4.6 | 0 | |
Share-based compensation | 0 | 0 | 10.1 | |
Realized and unrealized investment gains | (98.5) | (97.1) | (110) | |
Realized and unrealized investment losses | 27.4 | 10.9 | 174.7 | |
Deferred taxes | (5.7) | 24.7 | (7.1) | |
Change in fair value of loan notes issued by variable interest entities | 0 | 3.1 | 4.4 | |
Net realized and unrealized investment foreign exchange (gains)/losses | (23.1) | 28.1 | (0.8) | |
Net change from current period hedged transactions | 0.3 | 4.8 | (1.8) | |
Insurance reserves: | ||||
Losses and loss adjustment expenses | 146.9 | (203) | 402.5 | |
Unearned premiums | 68 | 18 | (91.6) | |
Reinsurance recoverables: | ||||
Unpaid losses | (864.9) | (236.3) | (575.8) | |
Ceded unearned premiums | (9.6) | 116 | (44.8) | |
Other receivables | (17.4) | (0.4) | 29.9 | |
Deferred policy acquisition costs | (13.3) | (41.1) | 41.7 | |
Reinsurance premiums payable | 129.7 | 19.5 | 52.1 | |
Funds withheld | (13) | 6.8 | 8 | |
Premiums receivable | 71.2 | 144.8 | 31.6 | |
Income tax payable | 2.5 | (1.2) | 1.6 | |
Accrued expenses and other payable | 2.4 | (19.3) | (88.2) | |
Fair value of derivatives and settlement of liabilities under derivatives | (87.5) | 73.8 | 5.9 | |
Long-term debt and loan notes issued by variable interest entities | 0.1 | 0.1 | (44) | |
Operating lease liabilities | (17.3) | (18) | 0 | |
Other assets | (6.8) | (1.6) | 0.5 | |
Net cash (used in) operating activities | (672.7) | (337.8) | (304.5) | |
Cash flows from investing activities: | ||||
(Purchases) of fixed income securities — Available for sale | (1,632) | (1,650.7) | (1,785.6) | |
(Purchases) of fixed income securities — Trading | (281.9) | (1,169.1) | (1,260.9) | |
Proceeds from sales and maturities of fixed income securities — Available for sale | 2,415.8 | 2,105.3 | 1,647.1 | |
Proceeds from sales and maturities of fixed income securities — Trading | 554.4 | 1,302.7 | 1,661 | |
(Purchases) of equity securities — Trading | 0 | 0 | (16.5) | |
Net proceeds/(purchases) of catastrophe bonds — Trading | 9.8 | 7.5 | (4.1) | |
Proceeds from sales of equity securities — Trading | 0 | 0 | 505.6 | |
(Purchases) of short-term investments — Available for sale | (216.1) | (182.7) | (130.8) | |
Proceeds from sale of short-term investments — Available for sale | 246.1 | 159 | 113.2 | |
(Purchases) of short-term investments — Trading | (58.3) | (193.6) | (16.4) | |
Proceeds from sale of short-term investments — Trading | 103.8 | 141.1 | 78.9 | |
(Purchases) of privately-held investments — Trading | (92.8) | (287.3) | 0 | |
Proceeds from sale of privately-held investments — Trading | 64.9 | 9.8 | 0 | |
Net change in (payable)/receivable for securities (purchased)/sold | 1.5 | (0.4) | (5.5) | |
Payments for (Proceeds from) Other Investing Activities | 0 | 0 | (100) | |
Net proceeds from sales of other investments | 71.1 | 0 | 0 | |
(Net) purchases of equipment | (40.7) | (22.2) | (27.3) | |
Net sales/(purchases) of investments, equity method | 6.1 | (1.1) | (1.4) | |
Net cash from investing activities | 1,151.2 | 218.3 | 657.3 | |
Cash flows from/(used in) financing activities: | ||||
Proceeds from the issuance of ordinary shares, net of issuance costs | 0 | 1.4 | 2.7 | |
Ordinary shares canceled | 0 | (0.1) | 0 | |
Proceeds from Contributed Capital | 268 | 0 | 0 | |
Preference shares issuance | 0 | 241.6 | 0 | |
Buy-out of minority interest | 0 | (0.8) | 0 | |
Repayment of long-term debt issued by Silverton | 0 | (7.7) | (86.4) | |
Dividends paid on ordinary shares | 0 | 0 | (42.9) | |
Dividends paid on preference shares | (44.5) | (35.9) | (30.5) | |
Dividends paid to non-controlling interest | 0 | 0 | (0.1) | |
Contingent consideration - earn out provision settlement | 0 | 0 | (11.7) | |
Long-term debt repayment | 0 | (125) | (125) | |
Make-whole payment | 0 | (5.5) | (8.6) | |
Cash paid for withholdings purposes | [1] | 0 | (2.8) | (4.7) |
Net cash from/(used in) financing activities | 223.5 | 65.2 | (307.2) | |
Effect of exchange rate movements on cash and cash equivalents | 14.8 | 1.1 | (16.7) | |
(Decrease)/increase in cash and cash equivalents | 716.8 | (53.2) | 28.9 | |
Cash and cash equivalents at beginning of period | 1,030.5 | 1,083.7 | ||
Cash and cash equivalents at end of period | 1,747.3 | 1,030.5 | 1,083.7 | |
Supplemental disclosure of cash flow information: | ||||
Net cash paid/(received) during the period for income taxes | 15 | (4.7) | (0.3) | |
Cash paid during the period for interest | 14 | 19 | 25.3 | |
Investment in multiline reinsurer | $ (0.5) | $ 0 | $ 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 ”. |
History and Organization
History and Organization | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
History and Organization | History and Organization 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. On February 15, 2019, the Company completed its merger with Highlands Merger Sub, Ltd. (“Merger Sub”), a wholly owned subsidiary of Highlands Bermuda Holdco, Ltd. (formerly known as 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”). 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. As a result of the Merger, all of the Company’s publicly traded ordinary shares were automatically canceled. 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. |
Basis of Preparation and Signif
Basis of Preparation and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
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. The consolidated financial statements have been compiled on a going concern basis. The consolidated financial statements are presented in U.S. dollar millions and all values are rounded to 1 decimal point except where otherwise indicated. (a) Use of Estimates Assumptions and estimates made by management has 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, recoverability of deferred tax balances, 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. Credit Losses on Underwriting Premiums Receivable. Underwriting premium receivable balances are reported net of an allowance for expected credit losses. The allowance, based on ongoing review and monitoring of amounts outstanding, historical loss data, including write-offs and other relevant factors, is charged to net income in the period the receivable is recorded and revised in subsequent periods to reflect changes in the Company’s estimate of expected credit losses. Credit risk is partially mitigated by the Company’s ability to cancel the policy if the policyholder does not pay the premium. 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 by establishing an allowance for expected credit losses to be recognized over the life of the reinsurance recoverable. 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. Credit Losses on Reinsurance Recoverables. Amounts recoverable from reinsurers are estimated in a manner consistent with the claim liability with the reinsured business. The Company evaluates the financial condition of its reinsurers and monitors concentration of credit risk to minimize its exposure to significant losses from individual reinsurers. To further reduce credit exposure on reinsurance recoverables, the Company has received collateral, including letters of credit and trust accounts, from certain reinsurers. Following the adoption of ASC 326, as described above, an allowance is established for expected credit losses to be recognized over the life of the reinsurance recoverable. The allowance is based upon the current financial strength of the individual reinsurer and the amount of collateral held. 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. Current Expected Credit Losses (“CECL”) / Other-than-temporary Impairment of Investments. Following the Company’s adoption of ASU 2016-13 “ Financial Instruments - Credit Losses (Topic 326) ”, effective January 1, 2020, credit losses on available for sale debt securities accounting policy is applicable; prior to this date, the comparative periods presented the other-than-temporary impairment of investment accounting policy which was applicable: Credit Losses on Available for Sale Debt Securities . A detailed analysis is performed each reporting period end to assess declines in the fair values of available for sale debt securities. Our credit loss model employs a discounted cash flow approach across all asset classes. Credit losses are only computed for assets held at an unrealized loss at the balance sheet date and will have a fair value floor. Default probabilities are estimated for each rating from AAA to C and analysis is undertaken separately for different assets classes and geographies. The expected credit losses, and subsequent adjustments to such losses are recorded within net realized gains/(losses) and are deducted from the amortized cost basis of the financial asset, with the net carrying value of the financial asset presented on the consolidated balance sheet at the amount expected to be collected. Other-than-temporary Impairment of Investments. A security is impaired when its fair value is below its cost or amortized cost. The Company reviewed 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 was deemed to occur when there was no objective evidence to support recovery in value of a security and (i) the Company intended to sell the security or more likely than not would be required to sell the security before recovery of its cost or adjusted amortized cost basis or (ii) it was deemed probable that the Company would 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 was taken as an OTTI charge to realized losses in earnings. In the second case, the unrealized loss was separated into the amount related to credit loss and the amount related to all other factors. The OTTI charge related to credit loss was recognized in realized losses in earnings and the amount related to all other factors was recognized in other comprehensive income. The cost basis of the investment is reduced accordingly and no adjustments to the cost basis were made for subsequent recoveries in value. Although the Company reviewed each security on a case by case basis, it had also established parameters focusing on the extent and duration of impairment to help identify securities in an unrealized loss position which were other-than-temporarily impaired. For fixed income securities in the available for sale portfolio, the Company considered securities which had been in an unrealized loss position for 12 months or more which had 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 (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 lease assets are carried at cost less accumulated depreciation. Right-of-use operating lease assets are depreciated over the lease term. Right-of-use operating lease assets are tested for impairments whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the carrying value of an asset is impaired, it is reduced to the recoverable amount by an immediate charge to the income statement. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. (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 for 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 translation adjustments as of each period end, are determined under the intraperiod 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 previously 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 2020 On June 16, 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU 2016-13, “ Financial Instruments - Credit Losses (Topic 326) ” which introduced 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 were 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 allowed 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 is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Following the adoption of these ASUs with effect from January 1, 2020, the Company recognized a reduction in the Company’s available-for-sale investment portfolio and reinsurance recoverables by $0.6 million and $3.7 million, respectively, as a result of recognizing current expected credit losses (“CECL”), together with a cumulative effect adjustment of $4.3 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. The amendments of this ASU are effective for fiscal years beginning after December 15, 2019 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 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. The amendments of this ASU are 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. Adoption of this ASU did not have a material impact on the Company’s financial statements and disclosures. On March 12, 2020, the FASB issued ASU 2020-04, “ Reference Date Reform (Topic 848) ” which provides optional guidance for a limited period of time (March 12, 2020 to December 31, 2022) aiming at easing the potential burden in accounting for the effects of reference r |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2020 | |
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 are not directly related to the Company’s business segment operations and is consistent with how management measures the performance of its segments. 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, 2020, 2019 and 2018: Twelve Months Ended December 31, 2020 Reinsurance Insurance Total ($ in millions) Underwriting Revenues Gross written premiums $ 1,660.8 $ 2,042.8 $ 3,703.6 Net written premiums 1,302.1 1,280.8 2,582.9 Gross earned premiums 1,616.4 2,027.1 3,643.5 Net earned premiums 1,292.1 1,240.5 2,532.6 Underwriting Expenses Losses and loss adjustment expenses 958.6 882.2 1,840.8 Amortization of deferred policy acquisition costs 246.0 219.7 465.7 General and administrative expenses 110.8 197.2 308.0 Underwriting (loss) (23.3) (58.6) (81.9) Corporate expenses (70.2) Non-operating expenses (32.7) (1) Net investment income 154.6 Realized and unrealized investment gains 98.5 Realized and unrealized investment losses (27.4) Change in fair value of derivatives (65.1) Interest expense on long term debt (33.9) Net realized and unrealized foreign exchange (losses) (12.4) Other income 49.8 (2) Other expenses (10.8) (Loss) before income taxes (31.5) Income tax (expense) (8.6) Net (loss) $ (40.1) Net reserves for loss and loss adjustment expenses $ 2,095.7 $ 1,874.4 $ 3,970.1 Ratios Loss ratio 74.2 % 71.1 % 72.7 % Policy acquisition expense ratio 19.0 17.7 18.4 General and administrative expense ratio 8.6 15.9 16.2 (3) Expense ratio 27.6 33.6 34.6 Combined ratio 101.8 % 104.7 % 107.3 % _______________ (1) Non-operating expenses includes $18.2 million of costs related to severance, retention awards and other costs, $12.9 million of impairment charges related to lease assets as a result of sub-leasing certain office space and $1.6 million of amortization of intangible assets and other non-operating expenses. (2) Includes the gain on sale of our renewal rights on our surety insurance book of business to a third party, totaling $43.1 million. (3) The general and administrative expense ratio in the total column includes corporate and non-operating expenses. 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 income taxes (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, $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 income taxes (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 $14.1 million buy-out provision. (2) The general and administrative expense ratio in the total column includes corporate and non-operating expenses. Geographical Areas . The following summary presents the Company’s gross written premiums based on the location of the insured risk for the twelve months ended December 31, 2020, 2019 and 2018. For the Twelve Months Ended December 31, 2020 December 31, 2019 December 31, 2018 ($ in millions) Australia/Asia $ 259.7 $ 215.9 $ 175.9 Caribbean 6.0 9.3 7.7 Europe 92.5 82.8 92.6 United Kingdom 374.1 295.7 290.1 United States & Canada (1) 2,267.5 2,003.9 1,875.9 Worldwide excluding United States (2) 23.1 63.0 70.1 Worldwide including United States (3) 501.2 614.9 775.8 Others 179.5 156.9 158.8 Total $ 3,703.6 $ 3,442.4 $ 3,446.9 ______________ (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. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020, 2019 and 2018: For the Twelve Months Ended December 31, 2020 December 31, 2019 December 31, 2018 ($ in millions) Fixed income securities — Available for sale $ 106.5 $ 128.2 $ 134.1 Fixed income securities — Trading 32.8 42.0 49.6 Short-term investments — Available for sale 0.8 2.3 1.4 Short-term investments — Trading 0.5 2.5 0.4 Fixed term deposits (included in cash and cash equivalents) 6.4 19.5 14.2 Equity securities — Trading — — 2.1 Catastrophe bonds — Trading 1.4 2.3 2.8 Privately-held investments — Trading 20.9 3.4 — Other investments, at fair value (1) (2.0) 8.9 2.5 Total 167.3 209.1 207.1 Investment expenses (12.7) (11.8) (8.9) Net investment income $ 154.6 $ 197.3 $ 198.2 ______________ (1) Other investments represents the Company’s investment in a real estate fund. The movement in the year represents the change in fair value of the investment and has been included as part of our investment income. 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, 2020, 2019 and 2018: For the Twelve Months Ended December 31, 2020 December 31, 2019 December 31, 2018 ($ in millions) Available for sale: Fixed income securities — gross realized gains $ 68.8 $ 14.4 $ 6.4 Fixed income securities — gross realized (losses) (1.8) (7.3) (11.4) Cash and cash equivalents — gross realized gains 0.5 0.1 0.3 Cash and cash equivalents — gross realized (losses) (0.4) (0.2) (0.5) Net change in expected credit gains 0.4 — — Trading: Fixed income securities — gross realized gains 18.2 34.3 4.6 Fixed income securities — gross realized (losses) (3.8) (2.6) (25.0) Short-term investments — gross realized gains — — 0.1 Short-term investments — gross realized (losses) — — (4.2) Cash and cash equivalents — gross realized gains 0.2 — 1.5 Cash and cash equivalents — gross realized (losses) (0.3) (0.3) (0.3) Equity securities — gross realized gains — — 94.5 Equity securities — gross realized (losses) — — (20.1) Privately-held investments — gross realized gains — 0.2 — Privately-held investments — gross realized (losses) — (0.2) — Privately-held investments — net change in gross unrealized (losses) (20.4) — — Catastrophe bonds — net unrealized gains — 0.9 2.2 Net change in gross unrealized gains / (losses) — 47.2 (112.1) Investments — equity method: Gross realized and unrealized (loss) in MVI (0.4) (0.1) (0.2) Gross realized and unrealized (loss) gain in Digital Risk (0.3) (0.2) 0.4 Gross realized and unrealized gain in Bene — — (0.9) Gross realized gain on sale of Bene 1.8 — — Gross realized gain on sale of Crop Re 8.6 — — Total net realized and unrealized investment gains/(losses) recorded in the statement of operations $ 71.1 $ 86.2 $ (64.7) Change in available for sale net unrealized gain/(losses): Fixed income securities 108.5 164.9 (81.3) Income tax (expense)/benefit (6.2) (13.6) 4.8 Total change in net unrealized gains/(losses), net of taxes recorded in other comprehensive income $ 102.3 $ 151.3 $ (76.5) 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, 2020 and December 31, 2019: As at December 31, 2020 Cost or Gross Gross Allowance for Credit Losses Fair Market ($ in millions) U.S. government $ 1,041.3 $ 60.5 $ (0.6) $ — $ 1,101.2 U.S. agency 32.8 1.5 — — 34.3 Municipal 61.6 5.5 — — 67.1 Corporate 1,714.5 112.0 (0.1) (0.2) 1,826.2 Non-U.S. government-backed corporate 62.7 0.7 — — 63.4 Non-U.S. government 268.8 4.3 — — 273.1 Asset-backed 2.3 — — — 2.3 Non-agency commercial mortgage-backed 6.7 0.7 — — 7.4 Agency mortgage-backed 936.0 37.2 (0.1) — 973.1 Total fixed income securities — Available for sale 4,126.7 222.4 (0.8) (0.2) 4,348.1 Total short-term investments — Available for sale 88.0 — (0.2) — 87.8 Total $ 4,214.7 $ 222.4 $ (1.0) $ (0.2) $ 4,435.9 Effective January 1, 2020, the Company adopted ASU 2016-13 prospectively and as a result any credit losses on the Company's available-for-sale investments are recorded as an allowance, subject to reversal. See Note 2, “Basis of Preparation and Significant Accounting Policies” and Note 23, “Allowance for Credit Losses” for further details. As at December 31, 2019 Cost or Gross Gross Fair Market ($ 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 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, 2020 and December 31, 2019: As at December 31, 2020 Cost or Gross Gross Fair Market ($ in millions) Fixed Income Securities — Trading U.S. government $ 117.9 $ 2.7 $ (0.1) $ 120.5 Municipal 3.2 0.3 — 3.5 Corporate 94.4 9.1 — 103.5 High yield loans 10.0 — (0.2) 9.8 Non-U.S. government 41.5 0.1 — 41.6 Asset-backed 541.7 3.1 (5.7) 539.1 Agency mortgage-backed 36.1 1.5 — 37.6 Total fixed income securities — Trading 844.8 16.8 (6.0) 855.6 Short-term investments — Trading 35.4 — — 35.4 Catastrophe bonds — Trading 18.8 — — 18.8 Privately-held investments — Trading Commercial mortgage loans $ 178.6 $ 0.1 $ (15.1) $ 163.6 Middle market loans 117.4 0.2 (5.5) 112.1 Asset-backed securities 18.7 — (0.1) 18.6 Equity securities 5.0 — — 5.0 Total privately-held investments — Trading 319.7 0.3 (20.7) 299.3 Total Investments — Trading $ 1,218.7 $ 17.1 $ (26.7) $ 1,209.1 As at December 31, 2019 Cost or Gross Gross Fair Market ($ 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 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, 2020, the Company had no positions in U.S. Dollar BBB Emerging Market Debt and a 1.5% position in a real estate fund and a 3.6% position in MML and CML, representing in total 5.1% of our Managed Portfolio (December 31, 2019 — 8.2%). Catastrophe bonds. The Company has invested in catastrophe bonds with a total value of $18.8 million as at December 31, 2020 (December 31, 2019 — $28.6 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 $163.6 million and middle market loans of $112.1 million as at December 31, 2020 (December 31, 2019 — commercial mortgage loans of $156.6 million; middle market loans of $111.7 million). Commercial Mortgage Loans . The commercial mortgage loans are related to investments in properties including apartments, hotels, office and retail buildings, other commercial properties and industrial properties. The commercial mortgage loan portfolio is diversified by property type, geographic region and issuer to reduce risks. As part of our investment process, we evaluate factors such as size, property type, and security to determine that properties are performing at a consistent and acceptable level to secure the related debt. The following table presents the type of commercial mortgage loans and geographic region as at December 31, 2020 and December 31, 2019: As at December 31, 2020 As at December 31, 2019 Net Carrying Value Percentage of Total Net Carrying Value Percentage of Total ($ millions) (%) ($ millions) (%) Property type Apartment 80.7 49.3 48.3 30.8 Hotels 20.4 12.5 47.7 30.4 Office building 33.9 20.7 21.9 14.0 Other commercial 28.6 17.5 17.0 10.9 Retail — — 15.2 9.7 Industrial — — 6.5 4.2 Total commercial mortgage loans $ 163.6 100 % 156.6 100 % Geographic Region U.S. 122.7 75.0 85.5 54.6 International 40.9 25.0 71.1 45.4 Total commercial mortgage loans $ 163.6 100 % 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, 2020, $0.7 million of our commercial mortgage loans were non-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, 2020 and December 31, 2019: As at December 31, 2020 As at December 31, 2019 (in millions) Less than 50% $ 14.9 $ — 50% to 60% 39.3 80.5 61% to 70% 99.5 35.5 71% to 80% 9.9 40.6 Commercial mortgage loans $ 163.6 $ 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, excluding those that are non-performing and construction loans which are still under development, as at December 31, 2020 and December 31, 2019: As at December 31, 2020 As at December 31, 2019 (in millions) Greater than 1.20x $ 82.2 $ 94.6 1.00 - 1.20x 14.9 — Less than 1.00x — 13.7 Commercial mortgage loans (1) 97.1 108.3 _______________ (1) As at December 31, 2020, we have non-performing loans of $0.7 million (December 31, 2019 — $Nil) and construction loans of $65.8 million (December 31, 2019 — $48.4 million) which only generate income when the construction is completed. As no income is currently being generated on these loans, they are not included in the table above. The total value of commercial mortgage loans are $163.6 million as at December 31, 2020, (December 31, 2019 — $156.6 million). The prior year numbers in the table above have been represented to be consistent with the current year presentation. Middle Market Loans . The middle market loans are investments in senior secured loan positions with full covenants, focused on the middle market in both U.S. and Europe. The middle market loan portfolio is diversified by industry type, geographic region and issuer to reduce risks. As part of our investment process, we evaluate factors such as size, industry and security to determine that loans are performing at a consistent and acceptable level to secure the related debt. The following table presents the type of middle market loans and geographic region as at December 31, 2020 and December 31, 2019: As at December 31, 2020 As at December 31, 2019 Net Carrying Value Percentage of Total Net Carrying Value Percentage of Total ($ millions) (%) ($ millions) (%) Industry type Materials 28.0 24.9 29.5 26.4 Financials 27.1 24.2 22.2 19.8 Industrials 17.3 15.5 18.9 17.0 Consumer discretionary 13.7 12.2 14.2 12.7 Health care 7.5 6.7 8.2 7.4 Energy 7.3 6.5 7.4 6.6 Consumer staples 6.4 5.7 6.4 5.7 Information technology 4.8 4.3 4.9 4.4 Total middle market mortgage loans $ 112.1 100 % $ 111.7 100 % Geographic Region U.S. 91.8 81.9 91.8 82.2 International 20.3 18.1 19.9 17.8 Total middle market loans $ 112.1 100 % $ 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, 2020, 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, 2020 and December 31, 2019: As at December 31, 2020 As at December 31, 2019 (in millions) Less than 50% $ 59.8 $ 90.6 50% to 60% 11.0 21.1 61% to 70% 6.4 — 81% to 100% 17.2 — Greater than 100% 17.7 — Middle market loans $ 112.1 $ 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, 2020 and December 31, 2019 As at December 31, 2020 As at December 31, 2019 (in millions) Greater than 1.20x $ 73.6 $ 68.4 1.00 - 1.20x — 25.5 Less than 1.00x 38.5 17.8 Middle market loans $ 112.1 $ 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. In March, 2021 the Company committed an additional $0.8 million equity contribution to MVI over a 2 year period. 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 was accounted for under the equity method and adjustments to the carrying value of this investment were 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 November 20, 2020, the Company sold its investment in Bene for $6.1 million, releasing a gain of $1.8 million. 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. On December 14, 2020, we completed the sale of our 23.2% interest in Crop Re to CGB DS (the “CGB Sale”). The CGB Sale has and will result in a material diminution of our U.S. agricultural business in 2021 and beyond. As a part of the CGB Sale, CGB DS paid AAIC $71.1 million for its ownership interest in Crop Re, as well as $14.5 million to settle loss carryforwards for the 2018 and 2019 crop years. In addition, AAIC entered into a commutation agreement with CGB DS (the “Commutation Agreement”), under which AAIC paid $2.2 million to CGB DS as a commutation settlement for the 2018 and 2019 crop years. The Commutation Agreement does not cover the crop years from 2010 to 2017 or the 2020 crop year, therefore we remain exposed to reinsurance obligations and potential claims in regards to those years. 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. During the course of 2020, a further $0.3 million capital was invested in the multi-line reinsurer. The table below shows the Company’s investments in MVI, Multi-Line Reinsurer, Bene, Digital Re and Crop Re for the twelve months ended December 31, 2020 and 2019: MVI Multi-Line Reinsurer Bene Digital Re Crop Re Total ($ in millions) Opening undistributed value of investment as at January 1, 2020 $ 0.4 $ — $ 4.3 $ 0.7 $ 62.5 $ 67.9 Investment in the period — 0.5 — — — 0.5 Unrealized (loss) for the twelve months to December 31, 2020 (0.4) — — (0.3) — (0.7) Gain on disposal — — 1.8 — 8.6 10.4 Proceeds from disposal — — (6.1) — (71.1) (77.2) Closing value of investment as at December 31, 2020 $ — $ 0.5 $ — $ 0.4 $ — 0.9 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) 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 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. As at December 31, 2020, the current fair value of the real estate fund is $109.4 million. For further information on the real estate fund, refer to Note 20(a) in these consolidated financial statements, “Commitments and Contingencies.” Fixed Income Securities. The scheduled maturity distribution of the Company’s available for sale fixed income securities as at December 31, 2020 and December 31, 2019 is set forth below. Actual maturities may differ from contractual maturities because issuers of securities may have the right to call or prepay obligations with or without call or prepayment penalties. As at December 31, 2020 Amortized Fair Market Average ($ in millions) Due one year or less $ 498.6 $ 501.3 AA Due after one year through five years 1,833.6 1,925.9 AA- Due after five years through ten years 741.9 806.5 AA- Due after ten years 107.6 131.6 AA- Total — Government and corporate 3,181.7 3,365.3 Non-agency commercial mortgage-backed 6.7 7.4 AA+ Agency mortgage-backed 936.0 973.1 AA+ Asset-backed 2.3 2.3 AAA Total fixed income securities — Available for sale $ 4,126.7 $ 4,348.1 At December 31, 2019 Amortized Fair Market Average ($ 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 Guaranteed Investments. As at December 31, 2020 and December 31, 2019, 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, 2020 and December 31, 2019: December 31, 2020 0-12 months Over 12 months Total Fair Gross Fair Gross Fair Gross Number of ($ in millions) U.S. government $ 58.7 $ (0.6) $ — $ — $ 58.7 $ (0.6) 10 Corporate 39.6 (0.1) — — 39.6 (0.1) 16 Non-U.S. government 7.5 — — — 7.5 — 4 Agency mortgage-backed 33.3 (0.1) 2.1 — 35.4 (0.1) 19 Total fixed income securities — Available for sale 139.1 (0.8) 2.1 — 141.2 (0.8) 49 Total short-term investments — Available for sale 8.7 — — (0.2) 8.7 (0.2) 15 Total $ 147.8 $ (0.8) $ 2.1 $ (0.2) $ 149.9 $ (1.0) 64 December 31, 2019 0-12 months Over 12 months Total Fair Gross Fair Gross Fair Gross Number of ($ 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 securities 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 Current Expected Credit Loss and Other-Than-Temporary Impairments. On June 16, 2016, the FASB issued ASU 2016-13, “ Financial Instruments - Credit Losses (Topic 326) ” which replaced other-than-temporary impairment (“OTTI”) by a new impairment model, known as the current expected loss model (“CECL”), which is based on expected losses rather than incurred losses. For a more detailed description of accounting policies for CECL and OTTI, refer to Note 2(c), “Basis of Preparation and Significant Accounting Policies” of these consolidated financial statements. CECL . Following the adoption of ASU 2016-13, with effect from January 1, 2020, the Company recognized a reduction in its available-for-sale investment portfolio totaling $0.6 million as a result of recognizing CECL through opening retained earnings for periods 2019 and prior. For the twelve months ended December 31, 2020, there was a reduction in the CECL allowance on available-for-sale investments of $0.4 million. OTTI. A security was potentially impaired when its fair value was below its cost or amortized cost. The Company reviewed 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. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Variable Interest Entities | Variable Interest Entities As at December 31, 2020, the Company had investments in one (December 31, 2019 — one) 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, 2020, Peregrine had six segregated accounts which were funded by third-party investors and two segregated accounts which are funded by Aspen are consolidated within the financial statements. The Company has determined that Peregrine has the characteristics of a VIE as addressed by the guidance in ASC 810, Consolidation . The six 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. 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. 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, 2020 and 2019: For the Twelve Months Ended December 31, 2020 Third Party Aspen Holdings Total ($ in millions) Opening balance $ — $ — $ — Total change in fair value for the period — — — Total distributed in the period — — — Closing balance as at December 31, 2020 $ — $ — $ — Liability Loan notes (long-term liabilities) $ — $ — $ — Accrued expenses (current liabilities) — — — Total aggregate unpaid balance as at December 31, 2020 $ — $ — $ — 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 $ — $ — $ — 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, 2020 | |
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, 2020 and December 31, 2019: As at December 31, 2020 Level 1 Level 2 Level 3 Total ($ in millions) Available for sale financial assets, at fair value U.S. government $ 1,101.2 $ — $ — $ 1,101.2 U.S. agency — 34.3 — 34.3 Municipal — 67.1 — 67.1 Corporate 184.2 88.9 — 273.1 Non-U.S. government-backed corporate — 63.4 — 63.4 Non-U.S. government — 7.4 — 7.4 Asset-backed — 973.1 — 973.1 Non-agency commercial mortgage-backed — 2.3 — 2.3 Agency mortgage-backed — 1,826.2 — 1,826.2 Total fixed income securities available for sale, at fair value 1,285.4 3,062.7 — 4,348.1 Short-term investments available for sale, at fair value 81.0 6.8 — 87.8 Held for trading financial assets, at fair value U.S. government 120.5 — — 120.5 Municipal — 3.5 — 3.5 Corporate — 103.5 — 103.5 High yield loans — 9.8 — 9.8 Non-U.S. government 41.2 0.4 — 41.6 Asset-backed — 539.1 — 539.1 Agency mortgage-backed — 37.6 — 37.6 Total fixed income securities trading, at fair value 161.7 693.9 — 855.6 Short-term investments trading, at fair value 35.4 — — 35.4 Privately-held investments trading, at fair value — — 299.3 299.3 Catastrophe bonds trading, at fair value — 18.8 — 18.8 Other investments (1) — — — 109.4 Other financial assets and liabilities, at fair value Derivatives at fair value — foreign exchange contracts — 26.8 — 26.8 Liabilities under derivative contracts — foreign exchange contracts — (13.6) — (13.6) Total 1,563.5 3,795.4 299.3 5,767.6 ______________ (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, 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 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 — — 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 Derivatives at fair value — interest rate swaps — (78.3) — (78.3) Liabilities under derivative contracts — foreign exchange contracts — (8.9) — (8.9) 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.” 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, 2020, $8.3 million was transferred from Level 2 to Level 3 due to a change in pricing methodology. ( December 31, 2019, no transfers were made between Level 1, Level2 and Level 3) As at December 31, 2020, there were privately-held investments worth $299.3 million (December 31, 2019 — $279.7 million) classified as Level 3. As a result of loans sold by Aspen and loans repaid to Aspen by borrowers, a net settlement of $64.3 million occurred during the year. As at December 31, 2019, the Company settled $23.9 million worth of Level 3 assets and the Company’s Level 3 liabilities consisted solely of the Loan Notes issued by Silverton. The Company settled $3.1 million Level 3 liabilities in respect to the Loan Notes issued by Silverton for the twelve months ended December 31, 2019. 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 Lev el 3 inputs for the twelve months ended December 31, 2020 and December 31, 2019: Twelve Months Ended December 31, 2020 Balance at beginning of year Purchases and issuances Transfers in/(out) Settlements and sales Increase/(decrease) in fair value including 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 $ 156.4 $ 79.7 $ — $ (59.4) $ (13.1) $ 163.6 $ 0.1 Middle market loans 111.7 0.9 8.3 (4.8) (4.0) 112.1 (5.3) Asset-backed securities 8.7 10.0 — — (0.1) 18.6 — Equity securities 2.7 2.4 — (0.1) — 5.0 — Total Level 3 assets $ 279.5 $ 93.0 $ 8.3 $ (64.3) $ (17.2) $ 299.3 $ (5.2) Liabilities Loan notes issued by Silverton $ — $ — $ — $ — $ — $ — $ — Total Level 3 liabilities $ — $ — $ — $ — $ — $ — $ — Twelve Months Ended December 31, 2019 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 $ 4.6 $ — $ — $ (7.7) $ 3.1 $ — $ — Total Level 3 liabilities $ 4.6 $ — $ — $ (7.7) $ 3.1 $ — $ — 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, 2020 and December 31, 2019, 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, 2020, the Company obtained an average of 2.6 quotes per fixed income investment compared to 2.4 quotes at December 31, 2019. 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 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 these securities across Level 1 and 2, with majority of them being in Level 1. 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, 2020: At December 31, 2020 Fair Value Valuation Techniques Unobservable (U) inputs Ranges Weighted Average ($ in millions) Privately-held investments — Trading Commercial mortgage loans $ 150.8 Discounted cash flow Discount rate 6.0% — 9.0% 7.3% Commercial mortgage loans 12.1 Transaction Value n/a n/a n/a n/a Commercial mortgage loans 0.7 Liquidation Method n/a n/a n/a n/a Middle market loans 106.5 Discounted cash flow Discount rate 6.3% — 16.5% 8.7% Middle market loans 5.6 Recovery Approach n/a n/a n/a n/a Asset-backed securities 18.6 Discounted cash flow Discount rate 5.7% — 6.9% 6.2% Equity securities 4.3 Discounted cash flow Discount rate 9.3% n/a 9.3% Equity securities 0.7 Transaction Value n/a n/a n/a n/a $ 299.3 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 used 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. During 2020, we unwound the remaining $1,800.0 million of our interest rate swaps. 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. |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2020 | |
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 21, “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, 2020, 2019 and 2018 was as follows: Twelve Months Ended December 31, 2020 2019 2018 ($ in millions) Premiums written : Direct $ 2,042.8 $ 1,956.9 $ 1,951.2 Assumed 1,660.8 1,485.5 1,495.7 Ceded (1,120.7) (1,014.5) (1,364.9) Net premiums written $ 2,582.9 $ 2,427.9 $ 2,082.0 Premiums earned: Direct $ 2,027.1 $ 1,927.5 $ 1,940.5 Assumed 1,616.4 1,494.9 1,593.9 Ceded (1,110.9) (1,129.1) (1,319.7) Net premiums earned $ 2,532.6 $ 2,293.3 $ 2,214.7 Insurance losses and loss adjustment expenses: Direct $ 1,479.6 $ 1,415.5 $ 1,458.9 Assumed 1,134.5 1,147.9 1,196.1 Ceded (773.3) (883.7) (1,082.0) Net insurance losses and loss adjustment expenses $ 1,840.8 $ 1,679.7 $ 1,573.0 On March 2, 2020, the Company entered into an adverse development cover reinsurance agreement with a subsidiary of Enstar Group Limited (“Enstar”), pursuant to which Enstar’s subsidiary will reinsure losses incurred on or prior to December 31, 2019. Enstar’s subsidiary will provide $770.0 million of cover in excess of $3.805 billion retention up to an aggregate of $4.575 billion, and an additional $250.0 million of cover in excess above $4.815 billion, up to $5.065 billion. As a result of the ADC, we have significantly reduced our exposure to claims from risks underwritten on or prior to December 31, 2019, and we expect the ADC to significantly reduce volatility from our historical business going forward. On June 16, 2016, the FASB issued ASU 2016-13, “Financial Instruments — Credit Losses (Topic 326)” which introduced a new impairment model, known as the current expected loss model (“CECL”), 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 reinsurance receivables. For a more detailed description of accounting policies for CECL and OTTI, refer to Note 2(c), “Basis of Preparation and Significant Accounting Policies” of these consolidated financial statements. CECL . Following the adoption of this ASU with effect from January 1, 2020, the Company recognized a reduction in the Company’s reinsurance recoverables by $3.7 million as a result of recognizing CECL through opening retained earnings for periods 2019 and prior. For the twelve months ended December 31, 2020 there was an increase in the CECL allowance on reinsurance recoverables of $0.1 million. |
Derivative Contracts
Derivative Contracts | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Contracts | Derivative Contracts The following table summarizes information on the location and amounts of derivative fair values on the consolidated balance sheet as at December 31, 2020 and 2019: As at December 31, 2020 As at December 31, 2019 Derivatives Not Designated as Hedging Instruments Balance Sheet Location Notional Fair Notional Fair ($ in millions) ($ in millions) Foreign Exchange Contracts Derivatives at Fair Value $ 803.1 $ 21.5 (1) $ 687.3 $ 8.1 (1) Foreign Exchange Contracts Liabilities under Derivative Contracts $ 599.2 $ (13.6) $ 1,009.0 $ (8.9) Interest Rate Swaps Liabilities under Derivative Contracts $ — $ — (2) $ 1,800.0 $ (78.3) ______________ (1) Net of $3.4 million of cash collateral (December 31, 2019 — $2.9 million). (2) Initial and variation margin of $Nil has been posted (December 31, 2019 — $111.1 million). As at December 31, 2020 As at December 31, 2019 Derivatives Designated as Hedging Instruments Under ASC 815 Balance Sheet Location Notional Fair Notional Fair ($ in millions) ($ in millions) Foreign Exchange Contracts Derivatives at Fair Value $ 90.6 $ 5.3 $ 85.5 $ 4.8 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, 2020 and 2019: Amount of (Loss)/Gain Recognized on Derivatives For the Twelve Months Ended Location of Gain/(Loss) December 31, 2020 December 31, 2019 Derivatives not designated as hedges ($ in millions) Foreign Exchange Contracts Change in Fair Value of Derivatives 16.0 (14.0) Interest Rate Swaps Change in Fair Value of Derivatives (81.1) (130.2) Derivatives designated as hedges Foreign Exchange Contracts General, administrative and corporate expenses (3.2) 0.9 Foreign Exchange Contracts Net change from current period hedged transactions 0.3 4.8 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, 2020, the Company held foreign exchange contracts that were not designated as hedges under ASC 815 with an aggregate nominal amount of $1,402.3 million (2019 — $1,696.3 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, 2020, the impact of foreign exchange contracts on net income was a gain of $16.0 million (December 31, 2019 — loss of $14.0 million). As at December 31, 2020, the Company held foreign exchange contracts that were designated as hedges under ASC 815 with an aggregate nominal amount of $90.6 million (2019 — $85.5 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, 2020 was a gain of $0.3 million (December 31, 2019 —gain of $4.8 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, 2020, the amount recognized within general, administration and corporate expenses for settled foreign exchange contracts was a realized loss of $3.2 million (December 31, 2019 — gain of $0.9 million). Interest Rate Swaps. In the first quarter of 2019, the Company entered into fixed for floating interest rate swaps with a total notional amou nt of $3,138.0 million due t o mature between January 18, 2021 and January 18, 2034. The interest rate swaps were 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. During 2020, we unwound the remaining $1,800.0 million of our interest rate swaps. For the twelve months ended December 31, 2020, there was a loss of $81.1 million (December 31, 2019 — $130.2 million). As at December 31, 2020, no margin was posted to a Futures Commission Merchant as we wound up the interest rate swaps. As at December 31, 2020, no non-cash collateral was transferred to the Company by its counterparties (December 31, 2019 — $Nil). Transfers of margin are recorded on the consolidated balance sheet within Derivatives at Fair Value, while transfers in respect of non-cash collateral are disclosed but not recorded. As at December 31, 2020, no amount was recorded in the consolidated balance sheet for the pledged assets. |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 12 Months Ended |
Dec. 31, 2020 | |
Insurance [Abstract] | |
Deferred Policy Acquisition Costs | Deferred Policy Acquisition Costs The following table represents a reconciliation of beginning and ending deferred policy acquisition costs for the twelve months ended December 31, 2020 and 2019: Twelve Months Ended December 31, 2020 Twelve Months Ended December 31, 2019 ($ in millions) Balance at the beginning of the period $ 291.1 $ 248.5 Acquisition costs deferred 481.2 455.3 Amortization of deferred policy acquisition costs (465.7) (412.7) Balance at the end of the period $ 306.6 $ 291.1 |
Reserves for Losses and Adjustm
Reserves for Losses and Adjustment Expenses | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020, 2019 and 2018: As at December 31, 2020 2019 2018 ($ in millions) Provision for losses and LAE at the start of the year $ 6,951.8 $ 7,074.2 $ 6,749.5 Less reinsurance recoverable (2,319.8) (2,077.6) (1,515.2) Net loss and LAE at the start of the year 4,632.0 4,996.6 5,234.3 Net loss and LAE expenses (disposed) (1) (818.5) — — Movement in net provision for losses and LAE for claims incurred: Current year 1,841.7 1,620.2 1,684.1 Prior years (0.9) 59.5 (111.1) Total incurred 1,840.8 1,679.7 1,573.0 Losses and LAE payments for claims incurred: Current year (404.9) (428.5) (285.7) Prior years (1,359.7) (1,694.1) (1,441.0) Total paid (1,764.6) (2,122.6) (1,726.7) Foreign exchange losses/(gains) 80.4 78.3 (84.0) Net losses and LAE reserves at the end of the year 3,970.1 4,632.0 4,996.6 Plus reinsurance recoverable on unpaid losses at the end of the year 3,195.2 2,319.8 2,077.6 Provision for losses and LAE at the end of the year $ 7,165.3 $ 6,951.8 $ 7,074.2 ______________ (1) Net loss and LAE expenses disposed includes the adverse development cover reinsurance agreement providing $770.0 million of cover and the loss portfolio transfer transactions for our surety insurance book of $42.0 million and our U.S. accident and health book of $6.5 million. For the twelve months ended December 31, 2020, there was a reduction of $0.9 million in the Company’s estimate of the ultimate claims to be paid in respect of prior accident years compared to an increase of $59.5 million for the twelve months ended December 31, 2019. Overall, prior year reserve releases totaled $0.9 million in 2020, compared with net unfavorable reserve development of $59.5 million in 2019. Reserve releases in the reinsurance segment in 2020 were $36.1 million compared to $54.9 million in 2019 and came primarily from casualty reinsurance, property catastrophe reinsurance and specialty reinsurance, partially offset by strengthening on other property reinsurance lines. Net unfavorable reserve development in the insurance segment in 2020 was $35.2 million compared to net unfavorable reserve development of $114.4 million in 2019 and came primarily from property and casualty insurance lines. 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, 2020, 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. All amounts included in the following tables related to transactions denominated in a foreign currency have been translated into U.S. Dollars using the exchange rates in effect at December 31, 2020. Property Insurance Lines Incurred Claims, IBNR and Loss Adjustment Expenses, Net of Reinsurance As at December 31, 2020 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 2020 $ (in millions) 2012 171.1 168.9 167.7 166.7 161.1 155.2 154.1 154.2 154.8 — 6,080 2013 131.2 118.2 117.9 113.6 114.6 112.6 112.9 113.1 0.7 5,742 2014 166.5 158.2 135.0 135.6 134.9 133.3 132.7 0.6 9,969 2015 242.7 208.1 202.5 204.9 205.3 202.1 2.9 11,583 2016 240.5 251.2 246.1 247.4 248.9 3.5 10,765 2017 298.4 261.2 254.4 255.7 (6.5) 9,639 2018 207.2 210.0 193.5 (13.3) 8,106 2019 129.2 132.7 11.7 6,592 2020 207.5 64.7 5,706 Total $ 1,641.0 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 2020 ($ in millions) 2012 41.6 129.8 139.6 153.9 158.0 155.4 154.8 154.7 154.7 2013 39.4 76.7 90.0 102.1 106.7 109.4 111.2 111.5 2014 40.6 87.1 114.7 124.5 128.6 130.1 131.3 2015 57.6 144.6 172.7 181.9 198.6 197.0 2016 67.5 170.1 202.9 225.3 234.2 2017 97.4 190.5 224.0 244.9 2018 63.1 164.5 186.6 2019 49.8 93.0 2020 62.1 Total $ 1,415.3 All outstanding liabilities for 2012 and subsequent years, net of reinsurance $ 225.7 All outstanding liabilities before 2012, net of reinsurance (unaudited) 1.1 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 226.8 Casualty Insurance Lines Incurred Claims, IBNR and Loss Adjustment Expenses, Net of Reinsurance As at December 31, 2020 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 2020 $ (in millions) 2012 78.8 63.7 70.8 62.0 69.9 67.5 69.4 71.4 67.6 1.9 3,016 2013 134.6 117.9 116.3 121.9 104.8 106.1 106.2 100.5 3.6 3,311 2014 147.0 129.2 141.1 131.5 138.7 142.8 131.1 5.9 3,807 2015 206.2 226.2 188.8 207.0 240.0 223.5 17.9 4,682 2016 220.2 191.4 186.8 193.6 194.1 34.7 4,697 2017 184.0 177.4 181.6 188.3 27.8 5,297 2018 124.9 127.7 127.3 43.0 5,440 2019 127.4 132.3 70.1 4,958 2020 135.7 120.2 2,964 Total 1,300.4 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 2020 ($ in millions) 2012 1.4 6.8 14.4 30.1 41.5 49.9 50.8 55.5 60.2 2013 2.3 26.0 40.0 53.7 69.3 82.0 86.3 88.4 2014 2.8 13.6 33.2 60.7 74.5 99.1 112.2 2015 3.2 17.3 57.2 94.0 140.5 170.1 2016 4.3 23.2 41.0 84.3 111.9 2017 3.7 23.3 53.7 99.1 2018 3.3 28.3 44.5 2019 6.5 18.8 2020 — Total $ 705.2 All outstanding liabilities for 2012 and subsequent years, net of reinsurance $ 595.2 All outstanding liabilities before 2012, net of reinsurance (unaudited) 23.5 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 618.7 Marine, Aviation and Energy Insurance Lines Incurred Claims, IBNR and Loss Adjustment Expenses, Net of Reinsurance As at December 31, 2020 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 2020 $ (in millions) 2012 270.4 307.7 327.2 348.0 333.6 329.6 318.0 312.7 303.1 0.6 3,812 2013 321.8 334.7 343.3 326.7 333.7 347.2 346.0 340.7 — 4,175 2014 310.5 315.0 299.8 311.4 306.9 313.8 301.6 — 4,049 2015 298.4 301.8 284.1 287.9 311.5 313.5 — 4,053 2016 262.7 232.2 231.7 231.8 218.5 — 4,416 2017 211.7 201.7 208.1 201.5 7.8 6,001 2018 172.4 209.5 202.6 13.7 5,133 2019 147.3 148.4 27.5 3,466 2020 111.5 56.8 2,321 Total 2,141.4 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 2020 ($ in millions) 2012 52.4 133.6 176.2 212.5 241.4 252.3 275.2 276.1 278.2 2013 41.7 131.9 205.5 236.0 265.3 285.0 301.2 311.0 2014 53.7 117.2 189.9 210.7 233.4 251.6 263.9 2015 45.2 124.0 175.3 195.4 223.4 258.6 2016 30.9 83.5 144.6 166.2 193.4 2017 40.5 98.2 141.0 169.3 2018 27.0 105.6 133.9 2019 33.8 73.1 2020 28.6 Total $ 1,710.0 All outstanding liabilities for 2012 and subsequent years, net of reinsurance $ 431.4 All outstanding liabilities before 2012, net of reinsurance (unaudited) — Liabilities for claims and claim adjustment expenses, net of reinsurance $ 431.4 Financial and Professional Insurance Lines Incurred Claims, IBNR and Loss Adjustment Expenses, Net of Reinsurance As at December 31, 2020 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 2020 $ (in millions) 2012 88.9 90.2 94.1 97.7 94.6 90.1 102.5 97.3 103.3 10.5 575 2013 106.7 101.4 105.6 102.5 101.7 92.5 91.5 97.7 9.2 567 2014 136.5 132.8 131.5 121.7 133.1 122.1 120.0 9.1 791 2015 176.1 177.4 187.4 191.8 193.2 182.2 16.8 1,085 2016 193.3 213.9 218.7 204.3 182.1 26.2 1,249 2017 208.8 185.3 190.0 181.7 21.2 1,720 2018 159.8 175.8 151.7 27.2 4,644 2019 252.0 245.5 102.6 23,761 2020 352.9 261.7 69,692 Total $ 1,617.1 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 2020 ($ in millions) 2012 22.8 39.7 50.9 59.6 65.5 70.8 80.6 85.8 91.5 2013 8.2 21.6 31.7 66.1 64.6 73.5 75.5 78.8 2014 3.0 31.0 54.3 73.1 80.6 86.7 93.3 2015 13.9 43.8 70.5 90.0 110.9 140.1 2016 15.5 71.8 103.2 131.2 127.3 2017 27.3 51.5 83.9 118.3 2018 21.3 76.2 102.7 2019 27.6 87.6 2020 48.2 Total $ 887.8 All outstanding liabilities for 2012 and subsequent years, net of reinsurance $ 729.3 All outstanding liabilities before 2012, net of reinsurance (unaudited) 9.2 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 738.5 Property Catastrophe and Other Property Reinsurance Incurred Claims, IBNR and Loss Adjustment Expenses, Net of Reinsurance As at December 31, 2020 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 2020 $ (in millions) 2012 282.2 305.5 288.2 281.0 284.4 281.4 273.8 263.7 267.0 6.8 674 2013 221.9 204.5 194.4 183.0 181.5 178.0 175.1 172.3 3.5 829 2014 193.5 181.4 165.1 153.7 154.1 149.1 149.0 2.0 902 2015 218.7 191.1 181.0 160.0 175.2 175.3 5.9 1,044 2016 277.9 277.5 275.4 253.4 249.5 2.3 1,296 2017 563.9 539.8 520.6 509.3 7.5 1,952 2018 360.5 422.6 420.0 8.9 1,813 2019 286.4 293.8 4.2 1,335 2020 328.0 161.7 876 $ 2,564.2 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 2020 ($ in millions) 2012 35.9 137.1 190.5 210.8 218.4 229.6 234.0 244.1 249.9 2013 35.0 101.0 150.3 162.8 167.7 169.2 170.8 165.2 2014 38.0 103.0 130.2 140.6 144.7 143.5 145.2 2015 36.1 96.8 129.6 142.0 159.1 161.5 2016 57.6 167.4 209.2 220.7 234.4 2017 123.8 359.9 419.9 444.5 2018 123.7 331.5 352.3 2019 28.4 161.7 2020 43.0 Total $ 1,957.7 All outstanding liabilities for 2012 and subsequent years, net of reinsurance 606.5 All outstanding liabilities before 2012, net of reinsurance (unaudited) 24.5 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 631.0 Casualty Reinsurance Incurred Claims, IBNR and Loss Adjustment Expenses, Net of Reinsurance As at December 31, 2020 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 2020 $ (in millions) 2012 237.0 235.3 246.7 238.3 235.3 236.2 244.9 247.2 221.6 — 1,804 2013 217.7 233.0 228.8 226.1 208.8 203.7 206.5 176.5 3.7 1,679 2014 209.0 212.4 221.1 214.5 207.7 210.2 173.4 0.3 1,775 2015 198.0 205.4 214.6 216.9 214.5 171.4 4.9 1,906 2016 237.7 250.6 250.4 260.3 220.9 18.7 1,937 2017 249.9 247.3 258.2 201.5 25.0 1,771 2018 233.0 262.9 209.2 70.5 1,488 2019 239.0 189.4 102.6 963 2020 259.3 235.2 342 Total $ 1,823.2 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 2020 ($ in millions) 2012 2.2 17.9 42.3 65.9 97.1 118.6 135.7 145.4 163.3 2013 3.5 16.0 43.2 65.5 93.8 115.9 128.7 140.9 2014 2.6 14.1 38.2 60.9 87.4 108.7 127.1 2015 3.6 18.4 39.1 66.3 90.4 109.9 2016 9.5 34.2 65.4 97.7 128.2 2017 9.1 31.1 59.8 98.7 2018 7.3 34.0 74.2 2019 9.4 36.9 2020 9.4 Total $ 888.6 All outstanding liabilities for 2012 and subsequent years, net of reinsurance 934.6 All outstanding liabilities before 2012, net of reinsurance (unaudited) 149.6 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 1,084.2 Specialty Reinsurance Incurred Claims, IBNR and Loss Adjustment Expenses, Net of Reinsurance As at December 31, 2020 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 2020 $ (in millions) 2012 179.5 202.9 192.2 176.9 175.4 175.9 172.7 170.1 166.6 0.1 636 2013 148.4 143.4 135.0 123.0 122.2 118.4 117.9 114.2 0.5 575 2014 155.3 143.0 135.1 125.8 128.8 127.1 120.3 — 624 2015 168.9 173.8 168.4 162.7 160.9 152.9 5.2 765 2016 242.1 243.3 241.0 233.1 222.8 9.7 923 2017 384.2 396.7 380.2 359.3 11.3 1,311 2018 401.7 401.0 391.7 23.0 1,372 2019 480.0 495.0 62.4 1,433 2020 418.1 173.4 1,096 Total $ 2,440.9 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 2020 ($ in millions) 2012 25.3 95.6 131.1 141.2 146.6 152.0 153.3 156.1 156.6 2013 25.7 73.5 89.7 97.1 104.2 104.2 105.2 104.9 2014 17.1 58.1 83.3 91.4 102.0 104.9 106.6 2015 18.1 57.9 106.1 124.8 134.0 137.0 2016 59.1 152.6 167.7 185.9 196.2 2017 95.3 240.8 273.4 309.3 2018 27.9 282.8 317.4 2019 275.4 384.8 2020 213.6 Total $ 1,926.4 All outstanding liabilities for 2012 and subsequent years, net of reinsurance 514.5 All outstanding liabilities before 2012, net of reinsurance (unaudited) 20.9 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 535.4 Reconciliation of Incurred and Paid Claims Development to total Provision for Losses and LAE Twelve Months Ended December 31, 2020 Twelve Months Ended December 31, 2019 ($ in millions) Net outstanding liabilities: Insurance lines - Property insurance lines 226.8 190.7 - Casualty insurance lines 618.7 669.2 - Marine, aviation and energy insurance lines 431.4 591.5 - Financial and professional insurance lines 738.5 657.4 Total insurance lines 2,015.4 2,108.8 Reinsurance lines - Property catastrophe and other property reinsurance 631.0 528.6 - Casualty reinsurance 1,084.2 1,602.2 - Specialty reinsurance 535.4 575.9 Total reinsurance lines 2,250.6 2,706.7 Net loss and LAE 4,266.0 4,815.5 Reinsurance recoverable on unpaid losses: Insurance lines 2,140.3 1,772.8 Reinsurance lines 1,054.9 547.0 Total reinsurance recoverable on unpaid losses 3,195.2 2,319.8 Unallocated claims incurred 50.3 44.0 Other reinsurance balances recoverable (1) (346.7) (227.4) Other 0.5 (0.1) (295.9) (183.5) Provision for losses and LAE at the end of the year 7,165.3 6,951.8 ____________________ Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years 1 2 3 4 5 6 7 8 9 Insurance 16.3 % 26.7 % 16.1 % 12.6 % 8.4 % 6.9 % 4.6 % 2.0 % 2.0 % Reinsurance 18.0 % 31.6 % 15.6 % 9.5 % 8.6 % 5.3 % 4.0 % 2.5 % 3.8 % |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
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 21%. The Company’s U.K. operating companies are taxed at the U.K. corporate tax rate of 19%. Total income tax (benefit)/expense for the twelve months ended December 31, 2020, 2019 and 2018 was allocated as follows: Twelve Months Ended December 31, 2020 2019 2018 ($ in millions) Income tax expense/(benefit) allocated to net loss $ 8.6 $ 22.9 $ (10.2) Income tax expense/(benefit) allocated to other comprehensive income 6.2 11.2 4.1 Total income tax expense/(benefit) $ 14.8 $ 34.1 $ (6.1) (Loss)/income from operations before income taxes and income tax expense/(benefit) attributable to that (loss)/income for the twelve months ended December 31, 2020, 2019 and 2018 is provided in the tables below: Twelve Months Ended December 31, 2020 (Loss)/income Current tax Deferred tax Total income tax ($ in millions) Bermuda $ (77.6) $ — $ — $ — U.S. (1) (2) 19.7 8.9 (5.7) 3.2 U.K. 12.4 0.1 — 0.1 Other (3) 14.0 5.3 — 5.3 Total $ (31.5) $ 14.3 $ (5.7) $ 8.6 Twelve Months Ended December 31, 2019 (Loss) Current tax Deferred tax Total income tax ($ in millions) Bermuda $ (107.6) $ — $ — $ — U.S. (60.0) 1.0 6.5 7.4 U.K. (45.7) (6.7) 17.3 10.6 Other (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 income 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 1.8 4.4 (0.3) 4.1 Total $ (156.0) $ (1.7) $ (8.5) $ (10.2) ________________ (1) The U.S. current tax expense includes $4.5 million of prior year adjustments. (2) The U.S. deferred tax benefit of $5.7 million is an intraperiod tax allocation between the Income Statement and unrealized gains on investments in other comprehensive income. (3) Current tax expense in “other” is predominantly made up of taxation paid in respect of branches of U.K. and Bermudian operating subsidiaries and withholding taxes payable in Australia. As noted above, the tax rate in Bermuda, the Company’s country of domicile, is zero. Application of the statutory tax rate for operations in other jurisdictions produces a differential to the expected income tax (benefit)/expense as shown in the table below. The reconciliation between the income tax expense/(benefit) and the amount that would result from applying the statutory rate for the Company for the twelve months ended December 31, 2020, 2019 and 2018 is provided in the table below: Twelve Months Ended December 31, 2020 2019 2018 Income Tax Reconciliation ($ in millions) Income tax benefit at statutory tax rate of zero percent $ — $ — $ — Overseas statutory tax rates differential 12.1 (21.2) (17.1) Base erosion and anti-abuse tax (BEAT) expense 4.3 0.3 6.0 Prior year adjustments (1) (3.2) (1.7) 1.4 Change in valuation allowance (2) (10.4) 42.6 7.1 Impact of unrecognized tax benefits (3) — — (12.8) Restricted foreign tax credits (4) — 1.5 — Australian non-resident withholding tax 1.0 1.0 4.4 Share-based payments — (0.6) 0.2 Foreign exchange 1.9 — 0.1 Non-deductible expenses 4.6 — 0.7 Non-taxable items — (0.1) (0.3) Impact of changes in statutory tax rates (1.7) 1.1 0.1 Total income tax expense/(benefit) $ 8.6 $ 22.9 $ (10.2) ________________ (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, 2020 predominantly relate to the determination of the results of the branches of the U.K. operating subsidiaries. The prior period adjustments for the twelve months ended December 31, 2019 and 2018 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 2020 valuation allowance includes a $20.9 million reduction resulting from U.S. current year income, of which $14.0 million relates to the utilization of existing net operating losses, and a $10.4 million increase relating to deferred tax assets in U.K. operating subsidiaries. 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 2020, the company did not have any unrecognized tax benefits. In 2018, the $12.8 million benefit relates to the successful conclusion of a U.K. tax inquiry which enabled the release of a provision we had been holding against the potential disallowance of a prior year adjustment. Income tax returns that have been filed by the Company’s U.S. operating subsidiaries are subject to examination for 2016 and later tax years. The Company’s U.K. operating subsidiaries’ income tax returns are subject to examination for 2019 and later tax years. (4) Restricted foreign tax credits are taxes paid by branches of U.K. operating subsidiaries that are not creditable against U.K. taxes. The tax effects of temporary differences and carryforwards that give rise to deferred tax assets and deferred tax liabilities are presented in the following table as at December 31, 2020 and 2019: As at December 31, 2020 2019 ($ in millions) Deferred tax assets: Share-based payments $ — $ 0.3 Operating loss carryforwards 119.6 121.5 Insurance reserves: Losses and loss adjustment expenses 7.9 5.0 Accrued expenses 6.4 7.1 Insurance reserves: Unearned premiums 17.6 15.3 Deferred policy acquisition costs — 0.1 Office properties and equipment 12.7 16.8 Operating lease liabilities 17.7 21.5 Other temporary differences 2.5 6.1 Total deferred tax assets 184.4 193.7 Less valuation allowance (138.9) (149.2) Deferred tax assets, net of valuation allowance $ 45.5 $ 44.5 Deferred tax liabilities: Unrealized (gains) on investments (2.7) (2.7) Intangible assets (20.1) (1.6) Deferred policy acquisition costs (8.4) (16.4) Right-of-use operating lease assets (12.3) (19.9) Other temporary differences (2.0) (3.9) Total deferred tax (liabilities) (45.5) (44.5) Net deferred tax assets $ — $ — 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., U.S. and other tax laws and regulations. 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, carryback availability, projected future taxable income, and tax-planning strategies in making this assessment. As at December 31, 2020, the Company has net operating losses carryforwards for U.S. federal income tax purposes of $501.7 million (2019 — $606.8 million) and net operating losses carryforwards for U.K. corporate tax purposes of $99.5 million (2019 — $93.2 million). Of the $501.7 million that are available to offset future U.S. federal taxable income, $444.3 million will expire between 2030 and 2039 and $57.4 million are available to offset future U.S. federal taxable income over an indefinite period. The amount of pre-merger net operating losses carryforwards that can be used each year is limited by s382 to $6.5 million for Aspen U.K.’s U.S. business and $20.8 million for the U.S. operating subsidiaries. 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 $Nil (2019 — $0.5 million) and charitable contribution carryforwards of $1.0 million (2019 — $1.1 million) with expiry periods between 2021 and 2025. For U.K. corporate tax purposes, the Company has capital loss carryforwards of $3.8 million which are available to offset future U.K. capital gains over an indefinite period. A valuation allowance of $113.9 million (2019 — $134.8 million*) on U.S. deferred tax assets (which includes these loss carryforwards) has been recognized at December 31, 2020 as management believes that it is more likely than not that a tax benefit will not be realized. The decrease in this portion of the valuation allowance totals $20.9 million (2019 —$9.2 million increase) with $20.9 million (2019 — $9.2 million increase) recorded in the consolidated income statement. A valuation allowance of $24.8 million (2019 — $14.4 million*) has been established against U.K. deferred tax assets. The increase in this portion of the valuation allowance totals $10.4 million (2019 —$28.2 million) with $10.4 million (2019 —$28.2 million increase) recorded in the consolidated income statement and $Nil (2019 — $Nil) recorded in other comprehensive income. The U.K. and U.S. valuation allowance combined total is $138.9 million (2019 — $149.2 million). *The prior year comparative figures have been re-presented to align with the current years geographical splits. |
Capital Structure
Capital Structure | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019: As at December 31, 2020 At December 31, 2019 Number $ in Number $ in Authorized share capital: Ordinary Shares $0.01 per share ( 2019 — $0.01 per share 70,000,000 700 70,000,000 700 Preference Shares 0.15144558¢ per share 30,000,000 45 30,000,000 45 Total authorized share capital 745 745 Issued share capital: Issued ordinary shares $0.01 per share ( 2019 — $0.01 per share 60,395,839 604 60,395,839 604 Issued 5.950% 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 — 10,000 — Total issued share capital 636 636 ______________ (1) Each depositary share represents a 1/1000 th interest in a share of the 5.625% preference shares. (a) Ordinary Shares Issued Ordinary Shares. The Company’s issued ordinary shares of par value $0.01 at both December 31, 2020 and 2019 was 60,395,839. The Company did not acquire any ordinary shares for the twelve months ended December 31, 2020. (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 $241.3 million, consisting of $250.0 million of total liquidation preference less $8.7 million of issuance expenses. 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 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”. |
Statutory Requirements and Divi
Statutory Requirements and Dividends Restrictions | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020, 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. Accordingly, Aspen U.K., AMAL and AUL may not pay a dividend if the payment of such dividend would result in their SCR coverage ratio falling below certain levels. In addition, any future changes regarding regulatory requirements, including those described above, may restrict the ability of Aspen U.K., AMAL and AUL to pay dividends in the future. As at December 31, 2020, Aspen U.K. had an accumulated balance of retained losses of approximately $200.3 million and AUL had an accumulated balance of retained losses of approximately £73.1 million. Aspen U.K. held a capital contribution reserve of $555.0 million as at December 31, 2020 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, 2020. 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, 2020, 25% of Aspen Bermuda’s statutory capital and surplus amounted to $286.9 million. Aspen Bermuda must also obtain the prior approval of the BMA before reducing its total statutory capital as set out in its previous year’s financial statements by 15% or more. Under both North Dakota and Texas law, insurance companies may only pay dividends out of earned surplus as distinguished from contributed surplus. As such, Aspen Specialty and AAIC could not pay a dividend as at December 31, 2020. Actual and required statutory capital and surplus for the principal operating subsidiaries of the Company, excluding its Lloyd’s syndicate, as at December 31, 2020 and December 31, 2019 were estimated as follows: As at December 31, 2020 U.S. Bermuda U.K. ($ in millions) Required statutory capital and surplus $ 504.8 $ 632.5 $ 786.0 Actual statutory capital and surplus $ 606.2 $ 1,147.5 $ 969.5 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 the sole corporate member of our Lloyd’s Syndicate, AUL was required to maintain Funds at Lloyd’s of $815.8 million as at December 31, 2020. As at December 31, 2020, AUL had total funds at Lloyd’s of $758.8 million of which $503.3 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 181% 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, 2020 | |
Earnings Per Share [Abstract] | |
Dividends | Dividends. On March 4, 2021, 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, 2021 March 15, 2021 5.625 %Preference Shares (AHL PRD) $ 0.3516 April 1, 2021 March 15, 2021 5.625 %Preference Shares, represented by depositary shares (AHL PRE) (1) $ 351.56 April 1, 2021 March 15, 2021 ______________ (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 |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2020 | |
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 $12.1 million in the twelve months ended December 31, 2020 (2019 — $12.9 million, 2018 — $16.0 million). |
Share-Based Payments and Long-T
Share-Based Payments and Long-Term Incentive Plan | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share Based Payments and Long-term Incentive Plan | Share-Based Payments and Long-Term Incentive PlanIn 2019, 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, 2020 was $2.1 million (December 31, 2019 — $3.5 million), which primarily related to a charge of $1.3 million (December 31, 2019 — $0.8 million) in relation to Performance Units, $0.5 million (December 31, 2019 — $0.8 million) in relation to previously awarded deferred cash awards and $0.3 million (December 31, 2019 — $1.9 million) in relation to other share-based compensation expense. The income tax effect of this is not considered to be material. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | Intangible Assets and Goodwill The following table provides a summary of the Company’s intangible assets for the twelve months ended December 31, 2020 and 2019: Twelve Months Ended December 31, 2020 Beginning of the Year Additions/(Disposals) Amortization Impairment End of the Year ($ in millions) Intangible Assets Trademarks $ 1.9 $ — $ (0.3) $ — $ 1.6 Agency Relationships 1.2 — (0.6) — 0.6 Non-compete Agreements 0.2 — (0.2) — — Insurance Licenses 16.7 — — — 16.7 Goodwill 3.9 — — — 3.9 Total $ 23.9 $ — $ (1.1) $ — $ 22.8 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 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, 2020 and December 31, 2019, the Company performed its annual qualitative assessment and determined that it was not more likely than not that these were impaired. |
Operating Leases (Notes)
Operating Leases (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Lessee, Operating Leases | Operating Leases As at December 31, 2020, the Company has recognized right-of-use operating lease assets of $74.1 million, net of impairment and operating lease liabilities of $106.0 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 $12.9 million (2019 — $12.3 million) charge within the period. The Company believes its office space is sufficient to conduct its operations for the foreseeable future in these locations. The Company has no lease transactions between related parties. Operating lease charge. The following table summarizes the operating lease charge for the twelve months ended December 31, 2020 and 2019: For the Twelve Months Ended December 31, 2020 December 31, 2019 ($ in millions) Amortization charge on right-of-use operating leased assets $ 11.8 $ 13.4 Interest on operating lease liabilities 5.5 4.6 Operating lease charge $ 17.3 $ 18.0 Lease Liabilities. The following table summarizes the maturity of lease liabilities under non-cancellable leases as of December 31, 2020 and 2019: December 31, 2020 December 31, 2019 ($ in millions) Operating leases — maturities 2020 $ — $ 17.7 2021 17.2 16.4 2022 14.2 13.0 2023 13.5 12.2 2024 12.6 11.7 2025 12.2 11.5 Later years 63.4 62.1 Total minimum lease payments $ 133.1 $ 144.6 Less imputed interest (27.1) (31.4) Total lease liabilities $ 106.0 $ 113.2 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Apollo’s indirect subsidiary, Apollo Asset Management Europe PC LLP (“AAME”), serves as the investment manager for the Company and 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. 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. Such sub-advisors may include affiliates of AAME. 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. During the year ended December 31, 2020, the Company recognized IMA fees of $5.3 million (2019 — $3.5 million), of which $2.1 million (2019 — $2.2 million) remains payable to AAME at year end. 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. During the year ended December 31, 2020, the Company recognized Management Consulting fees of $5.0 million (2019 — $4.4 million), of which none remains payable to AMH at year end (2019 — $1.3 million). Other Payables to Related Parties |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingent Liabilities (a) Restricted assets The Company’s subsidiaries are obliged by the terms of its contractual obligations to U.S. policyholders and by obligations to certain regulatory authorities to facilitate issue of letters of credit or maintain certain balances in trust funds for the benefit of policyholders. The following table details the forms and value of Company’s material restricted assets as at December 31, 2020 and 2019: As at December 31, 2020 At December 31, 2019 ($ in millions, except percentages) Regulatory trusts and deposits: Affiliated transactions $ 1,027.9 $ 754.9 Third party 2,762.2 2,766.6 Letters of credit / guarantees (1) 516.8 635.4 Total restricted assets (excluding illiquid assets) 4,306.9 4,156.9 Other investments — real estate fund (illiquid assets) 109.4 111.4 Total restricted assets and illiquid assets $ 4,416.3 $ 4,268.3 Total as percent of cash and invested assets (2) 58.6 % 54.4 % (1) As at December 31, 2020, the Company had pledged funds of $516.8 million (December 31, 2019 — $635.4 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. Investments — Equity Method. In March 2021, the company committed an additional $0.8 million equity contribution to MVI over a 2 year period. Real Estate Fund. 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. During the course of 2020, a further $0.3 million capital was invested in multi-line reinsurer. 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, 2020 and 2019, these funds amounted to approximately 58.6% of the $7.5 billion and approximately 54.4% 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, 2020 in the amount of $541.4 million (2019 — $513.1 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, 2020 was £0.4 million (December 31, 2019 — £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 $1,455.3 million as at December 31, 2020 and $1,374.4 million as at December 31, 2019. As at December 31, 2020, the balance (including applicable letter of credit facilities) held in the trust was $1,478.0 million (2019 — $1,395.2 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 $382.8 million and $427.7 million as at December 31, 2020 and 2019, respectively. As at December 31, 2020, the balance held in the U.S. trust fund and other Aspen Bermuda trusts was $572.3 million (2019 — $846.2 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, 2020 was $208.0 million (2019 — $215.5 million). U.S. Regulatory Deposits. As at December 31, 2020, Aspen Specialty had a total of $6.7 million (2019 — $6.1 million) on deposit with six U.S. states in order to satisfy state regulations for writing business in those states. AAIC had a further $6.1 million (2019 — $6.7 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, 2020, the balance held in trust was CAD$156.8 million (2019 — CAD$155.4 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, 2020, the balance held in trust was AUD$256.6 million (2019 — AUD$226.9 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, 2020, the balance held in trust was CHF8.0 million (2019 — CHF8.4 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, 2020, the balance in the account was SGD$148.9 million (2019 — SGD$148.9 million). (b) Variable interest entities As at December 31, 2020, the Company had investments in one (December 31, 2019 — one) 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, 2020, 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, 2020 | |
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, 2020 was $3,195.2 million (2019 — $2,319.8 million) of which $2,010 million was uncollateralized (2019 — $1,817.5 million). As at December 31, 2020, of the Company’s uncollateralized reinsurance recoverables 11.0% (2019 — 15.1 %) were with Munich Re which is rated A+ by A.M. Best and AA- by S&P, 13.4 % (2019 —11.9 % ) were with Everest Re which is rated A+ by A.M Best and A+ by S&P, and 9.2% (2019 — 8.9 %) w ere with Lloyd’s which is rated A by A.M. Best and A+ by S&P. These are the Company’s largest exposures to individual reinsurers. On June 16, 2016, the FASB issued ASU 2016-13, “ Financial Instruments - Credit Losses (Topic 326) ” which introduced a new impairment model, known as the current expected loss model (“CECL”), 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 reinsurance receivables. Following the adoption of this ASU with effect from January 1, 2020, the Company recognized a reduction in the Company’s reinsurance recoverables by $3.7 million. For the twelve months ended December 31, 2020 there was an increase in the CECL allowance on reinsurance recoverables of $0.1 million. Underwriting premium receivables The total underwriting premium receivable by the Company as at December 31, 2020 was $1,279.8 million (2019 — $1,318.4 million). As at December 31, 2020, $11.4 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. Allowance for credit losses of $34.0 million as at December 31, 2020 (2019 — $23.0 million) for underwriting premiums unlikely to be collected. Investments and cash and cash equivalents The Company’s investment policies include specific provisions that limit the allowable holdings of a single issue and issuer. As at December 31, 2020, there were no investments in any single issuer, other than the U.S. government, U.S. government agencies, U.S. government sponsored enterprises, the Canadian government and the U.K. government in excess of 2% of the aggregate investment portfolio. Balances owed by brokers The Company underwrites a significant amount of its business through brokers and a credit risk exists should any of these brokers be unable to fulfill their contractual obligations in respect of insurance or reinsurance balances due to the Company. The following table shows the largest brokers that the Company transacted business within the three years ended December 31, 2020 and the proportion of gross written premiums from each of those brokers. Twelve Months Ended December 31, 2020 2019 2018 (in percentages) Aon Corporation (1) 15.8 % 13.4 % 15.8 % Marsh & McLennan Companies, Inc. 15.4 13.6 15.8 Willis Group Holdings, Ltd. 10.4 10.3 12.4 Other brokers/non-broker sources (2) 58.4 62.7 56.0 Total 100.0 % 100.0 % 100.0 % Gross written premiums ($ millions) $ 3,703.6 $ 3,442.4 $ 3,446.9 ______________ (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. |
Reclassifications from Accumula
Reclassifications from Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019: Amount Reclassified from AOCI Details about the AOCI Components Twelve Months Ended December 31, 2020 Twelve Months Ended December 31, 2019 Affected Line Item in the ($ in millions) Available for sale securities: Realized (losses) on sale of securities $ (69.3) $ (14.4) Realized and unrealized investment gains Realized gains on sale of securities 2.2 7.6 Realized and unrealized investment losses (67.1) (6.8) (Loss) from operations before income tax Tax on net realized gains of securities — — Income tax (expense)/benefit $ (67.1) $ (6.8) Net (loss) Realized derivatives: Net realized gains on settled derivatives 0.3 4.8 General, administrative and corporate expenses Tax on settled derivatives — (0.8) Income tax (expense)/benefit $ 0.3 $ 4.0 Net (loss) Total reclassifications from AOCI to the statement of operations, net of income tax $ (66.8) $ (2.8) Net (loss) |
Credit Facility and Long-term D
Credit Facility and Long-term Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Credit Facility and Long-term Debt | Credit Facility and Long-term Debt In the normal course of its operations, the Company enters into agreements with financial institutions to obtain secured and unsecured credit facilities. 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, 2020, 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 $1,891,000,000 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, 2020, (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. Other Credit Facilities. (i) 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, June 29, 2018 and June 30, 2020 (the “LOC Facility”). The latest amendment to the LOC Facility extends the term to June 30, 2022. The maximum aggregate amount available under the LOC Facility is $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, 2020, we had $444.2 million of outstanding collateralized letters of credit under the LOC Facility (December 31, 2019 — $444.2 million). (ii) On February 11, 2019, Aspen European and Aspen Holdings (acting as guarantor of Aspen European) entered into a letter of credit facility for the purpose of obtaining a letter of credit in favor of Aspen U.K. for a sum not to exceed $100 million to provide approved regulatory capital for Aspen U.K. A letter of credit was issued in favor of Aspen U.K. for a sum of $100 million which expires on February 11, 2023. (iii) On November 3, 2020, AUL and Aspen Holdings (acting as guarantor of AUL) entered into a letter of credit facility for the account of AUL to support AUL’s Funds at Lloyd’s requirements. This facility terminates four years from the date of notice from the lender to the beneficiary of the letter of credit, and provides a maximum aggregate amount of up to $40 million. A letter of credit was issued in favor of Lloyd’s for a sum of $40 million. (iv) On November 25, 2020, AUL and Aspen Holdings (acting as guarantor of AUL) entered into a Funds at Lloyd’s Facility Agreement for the account of AUL pursuant to which the lender provides collateral for the benefit of Lloyd’s to support AUL’s Funds at Lloyd’s requirements. This facility terminates on December 31, 2021, unless extended to December 31, 2022 pursuant to the terms of the facility agreement, and provides that a maximum aggregate amount of up to $80 million may be deposited with Lloyd’s on behalf of AUL. As at December 31, 2020, a FAL deposit of $80 million was made on behalf of AUL under this facility. (v) On November 30, 2020, AUL and Aspen Bermuda (acting as AUL’s guarantor) entered into a Funds at Lloyd’s Facility Agreement, for the account of AUL, pursuant to which the lender pledges securities for the benefit of Lloyd’s to support AUL’s Funds at Lloyd’s requirements. This facility is for a one year, subject to annual automatic extensions, and provides that a maximum aggregate amount of up to $100 million may be pledged on behalf of AUL. As at December 31, 2020, $100 million in securities were pledged on behalf of AUL under this facility. The above credit facilities include certain restrictive covenants customary for facilities of this type, including restrictions on indebtedness, consolidated tangible net worth, and minimum financial strength ratings. In addition, the agreements include default covenants, which could require the Company to fully secure the outstanding amounts thereunder and/or result in the Company not being allowed to issue any new letters of credit. 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 $50.0 million. The following table summarizes our contractual obligations under long-term debt as at December 31, 2020. Payments Due By Period Contractual Basis Less than 1-3 years 3-5 years More than 5 years Total ($ in millions) Long-term Debt Obligations $ — $ 300.0 $ — $ — $ 300.0 The Senior Notes obligation disclosed above does not include the $14.0 million annual interest payable associated with the Senior Notes or the loan notes issued by Silverton. For more information on Silverton, refer to Note 5, “Variable Interest Entities” of these consolidated financial statements. |
Credit Losses
Credit Losses | 12 Months Ended |
Dec. 31, 2020 | |
Credit Loss [Abstract] | |
Allowance for Expected Credit Losses | Allowance for Expected Credit Losses The following table summarizes the Company’s allowance for expected credit losses for the twelve months ended December 31, 2020 in investments, reinsurance recoverables and receivables following the adoption of ASU 2016-13 Financial Instruments - Credit Losses (Topic 326) ”: Twelve Months Ended December 31, 2020 ($ in millions) Investments Reinsurance Recoverables Receivables Opening value as at January 1, 2020 $ 0.6 $ 3.7 $ 23.0 Movement of the allowance for credit losses during the year (0.4) 0.1 11.0 Closing value as at December 31, 2020 $ 0.2 $ 3.8 $ 34.0 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Insurance sub-segment: changes to principal lines of business. Due to the change in management structure with effect from January 1, 2021, the Company’s Insurance segments principal lines of business have changed, as shown in the following table: Insurance Segment Current sub-segment: principal lines of business New sub-segment: principal lines of business Property and casualty insurance First party and specialty insurance Marine, aviation and energy insurance Casualty and liability insurance Financial and professional lines insurance Financial and professional lines insurance Our operating and reporting segments, Insurance and Reinsurance remain unchanged. The change will be limited to the principal lines of business within our Insurance segment. We anticipate, for our interim and annual financial reporting for the year-ended December 31, 2021, the following comparative financial metrics will be represented to comply with the new Insurance sub-segment principal line of business structure: (i) gross and net written premiums by line of business; (ii) loss development triangles; (iii) Item 4B, “Business Segments”; and (iv) Item 5, “Operating and Financial Review and Prospects”. |
Schedule I - Investments
Schedule I - Investments | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020, 2019 and 2018 |
Schedule II - Condensed Financi
Schedule II - Condensed Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019 As at December 31, 2020 As at December 31, 2019 ($ in millions, except per share amounts) ASSETS Fixed income maturities (trading) — 75.6 Cash and cash equivalents 92.4 37.4 Investments in subsidiaries (1) 3,325.6 2,973.6 Intercompany funds due from affiliates 0.7 0.1 Right-of-use operating lease assets 1.0 1.4 Other assets 6.4 6.9 Total assets $ 3,426.1 $ 3,095.0 LIABILITIES Accrued expenses and other payables 24.3 7.2 Intercompany funds due to affiliates 103.4 61.2 Long-term debt 299.9 299.8 Operating lease liabilities 0.9 1.3 Total liabilities $ 428.5 $ 369.5 SHAREHOLDERS’ EQUITY Ordinary Shares: 60,395,839 shares of par value $0.01 each (December 31, 2019 — 60,395,839) $ 0.6 $ 0.6 Preference Shares: 11,000,000 5.950% shares of par value 0.15144558¢ each (December 31, 2019 — 11,000,000) — — 10,000,000 5.625% shares of par value 0.15144558¢ each (December 31, 2019 — 10,000,000) — — 10,000,000 5.625% depositary shares of par value 0.15144558¢ each (December 31, 2019 —10,000,000) — — Additional paid in capital 1,469.7 1,201.7 Retained earnings 1,425.7 1,514.6 Accumulated other comprehensive income, net of taxes: Unrealized gains on investments 186.8 84.5 Gain/(loss) on derivatives 4.6 4.3 Gains on foreign currency translation (89.8) (80.2) Total accumulated other comprehensive income 101.6 8.6 Total shareholders’ equity 2,997.6 2,725.5 Total liabilities and shareholders’ equity $ 3,426.1 $ 3,095.0 ____________________ (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. 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, 2020, 2019 and 2018 Twelve Months Ended December 31, 2020 Twelve Months Ended December 31, 2019 Twelve Months Ended December 31, 2018 ($ in millions) Operating Activities: Equity in net earnings of subsidiaries and other investments, equity method $ (92.1) $ (415.1) $ (371.3) Dividend income 141.5 270.0 340.3 Net realized and unrealized investment gains/(losses) 2.5 2.6 (5.1) Total revenues 51.9 (142.5) (36.1) Expenses: General, administrative and corporate expenses (74.6) (70.2) (83.8) Interest expense (14.3) (25.7) (25.9) Other expense (3.1) (3.3) — (Loss) from operations before income tax (40.1) (241.7) (145.8) Income tax — — — Net (loss) (40.1) (241.7) (145.8) Amount attributable to non-controlling interest — 1.2 (1.0) Net (loss) attributable to Aspen Insurance Holdings Limited ordinary shareholders (40.1) (240.5) (146.8) Other comprehensive Income/(loss), net of taxes: Change in unrealized gains on investments 102.3 151.3 (76.5) Net change from current period hedged transactions 0.3 4.0 (1.8) Change in foreign currency translation adjustment (9.6) (24.8) 12.3 Other comprehensive income/(loss), net of tax 93.0 130.5 (66.0) Comprehensive Income / (loss) $ 52.9 $ (110.0) $ (212.8) ASPEN INSURANCE HOLDINGS LIMITED SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT - Continued STATEMENTS OF CASH FLOWS For the Twelve Months Ended December 31, 2020, 2019 and 2018 Twelve Months Ended December 31, 2020 Twelve Months Ended December 31, 2019 Twelve Months Ended December 31, 2018 ($ in millions) Cash Flows From/(Used In) Operating Activities: Net income (1) (excluding equity in net earnings of subsidiaries) $ 52.0 $ 174.6 $ 224.5 Adjustments: Share-based compensation expenses — — 10.1 Realized and unrealized losses/(gains) 1.5 9.6 (0.7) Loss on derivative contracts (0.3) (4.0) 1.8 Amortization of right-to-use operating lease assets 0.4 0.3 — Interest on operating lease liabilities (0.4) 0.2 — Change in other assets 0.5 2.1 (0.2) Change in accrued expenses and other payables 15.9 (51.2) 51.1 Change in intercompany activities 41.6 (59.0) 63.9 Change in operating lease liabilities — (0.5) — Net cash generated by operating activities 111.2 72.1 350.5 Cash Flows From/(Used in) Investing Activities: Proceeds/(purchases) of fixed income securities 75.6 (75.6) 79.4 Investment in subsidiaries (87.3) (82.7) (215.9) Repayment of loan notes issued by Silverton — — 18.6 Net cash (used in) investing activities (11.7) (158.3) (117.9) Cash Flows From/(Used in) Financing Activities: Proceeds from issuance of ordinary shares, net of issuance costs — 1.4 2.7 Proceeds from issuance of preference shares, net of issuance costs — 241.6 — Ordinary share repurchase — (0.1) — Ordinary and preference share dividends paid (44.5) (35.9) (73.4) 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) Net cash (used in)/from financing activities (44.5) 68.0 (209.0) Increase/(decrease) in cash and cash equivalents 55.0 (18.2) 23.6 Cash and cash equivalents — beginning of period 37.4 55.6 32.0 Cash and cash equivalents — end of period $ 92.4 $ 37.4 $ 55.6 _________ (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, 2020 | |
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, 2020, 2019 and 2018 Supplementary Information ($ in millions) Year Ended December 31, 2020 Deferred Policy Acquisition Costs Net Reserves for Losses and LAE Net Net Premiums Earned Net Investment Income Losses and LAE Expenses Policy Acquisition Expenses Net Premium Written General and Administrative Expenses Reinsurance $ 206.8 $ 2,095.7 $ 617.6 $ 1,292.1 $ 958.6 $ 246.0 $ 1,302.1 $ 110.8 Insurance 99.8 1,874.4 746.1 1,240.5 882.2 219.7 1,280.8 197.2 Total $ 306.6 $ 3,970.1 $ 1,363.7 $ 2,532.6 $ 154.6 $ 1,840.8 $ 465.7 $ 2,582.9 $ 308.0 Year to date December 31, 2019 Deferred Policy Acquisition Costs Net Reserves for Losses and LAE Net Net 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 Net Premiums Earned 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 |
Schedule IV - Reinsurance
Schedule IV - Reinsurance | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |
Schedule IV - Reinsurance | SCHEDULE IV - REINSURANCE For the Twelve Months Ended December 31, 2020, 2019 and 2018 Premiums Written Direct Assumed Ceded Net Amount ($ in millions) 2020 $ 2,042.8 $ 1,660.8 $ (1,120.7) $ 2,582.9 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 Premiums Earned Gross Amount Assumed From Ceded to Other Companies Net Amount Percentage of Amount Assumed to Net ($ in millions, except for percentages) 2020 $ 2,027.1 $ 1,616.4 $ (1,110.9) $ 2,532.6 63.8 % 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 % |
Schedule V - Valuation and Qual
Schedule V - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020, 2019 and 2018 The following table shows the movement in the Company’s bad debt provision during the twelve months ended December 31, 2020, 2019 and 2018: Balance at Charged to Costs and Expenses Charged to Other Accounts Deductions Balance at Provisions for Bad Debt ($ in millions) 2020 Premiums receivable from underwriting activities $ 23.0 $ 11.0 $ — $ — $ 34.0 Reinsurance $ — $ — $ — $ — $ — 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 $ — $ — $ — $ — $ — |
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, 2020 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates Assumptions and estimates made by management has 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, recoverability of deferred tax balances, 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. Credit Losses on Underwriting Premiums Receivable. Underwriting premium receivable balances are reported net of an allowance for expected credit losses. The allowance, based on ongoing review and monitoring of amounts outstanding, historical loss data, including write-offs and other relevant factors, is charged to net income in the period the receivable is recorded and revised in subsequent periods to reflect changes in the Company’s estimate of expected credit losses. Credit risk is partially mitigated by the Company’s ability to cancel the policy if the policyholder does not pay the premium. 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 by establishing an allowance for expected credit losses to be recognized over the life of the reinsurance recoverable. 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. Credit Losses on Reinsurance Recoverables. Amounts recoverable from reinsurers are estimated in a manner consistent with the claim liability with the reinsured business. The Company evaluates the financial condition of its reinsurers and monitors concentration of credit risk to minimize its exposure to significant losses from individual reinsurers. To further reduce credit exposure on reinsurance recoverables, the Company has received collateral, including letters of credit and trust accounts, from certain reinsurers. Following the adoption of ASC 326, as described above, an allowance is established for expected credit losses to be recognized over the life of the reinsurance recoverable. The allowance is based upon the current financial strength of the individual reinsurer and the amount of collateral held. 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. |
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. Current Expected Credit Losses (“CECL”) / Other-than-temporary Impairment of Investments. Following the Company’s adoption of ASU 2016-13 “ Financial Instruments - Credit Losses (Topic 326) ”, effective January 1, 2020, credit losses on available for sale debt securities accounting policy is applicable; prior to this date, the comparative periods presented the other-than-temporary impairment of investment accounting policy which was applicable: Credit Losses on Available for Sale Debt Securities . A detailed analysis is performed each reporting period end to assess declines in the fair values of available for sale debt securities. Our credit loss model employs a discounted cash flow approach across all asset classes. Credit losses are only computed for assets held at an unrealized loss at the balance sheet date and will have a fair value floor. Default probabilities are estimated for each rating from AAA to C and analysis is undertaken separately for different assets classes and geographies. The expected credit losses, and subsequent adjustments to such losses are recorded within net realized gains/(losses) and are deducted from the amortized cost basis of the financial asset, with the net carrying value of the financial asset presented on the consolidated balance sheet at the amount expected to be collected. Other-than-temporary Impairment of Investments. A security is impaired when its fair value is below its cost or amortized cost. The Company reviewed 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 was deemed to occur when there was no objective evidence to support recovery in value of a security and (i) the Company intended to sell the security or more likely than not would be required to sell the security before recovery of its cost or adjusted amortized cost basis or (ii) it was deemed probable that the Company would 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 was taken as an OTTI charge to realized losses in earnings. In the second case, the unrealized loss was separated into the amount related to credit loss and the amount related to all other factors. The OTTI charge related to credit loss was recognized in realized losses in earnings and the amount related to all other factors was recognized in other comprehensive income. The cost basis of the investment is reduced accordingly and no adjustments to the cost basis were made for subsequent recoveries in value. Although the Company reviewed each security on a case by case basis, it had also established parameters focusing on the extent and duration of impairment to help identify securities in an unrealized loss position which were other-than-temporarily impaired. For fixed income securities in the available for sale portfolio, the Company considered securities which had been in an unrealized loss position for 12 months or more which had a market value of more than 20% below cost should be other-than-temporarily impaired. |
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. Goodwill is assessed annually for impairment or more frequently if circumstances indicate an impairment may have occurred. |
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 |
Accounting for Right-of-Use Operating Lease Assets | Accounting for Right-of-Use Operating Lease AssetsRight-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 lease assets are carried at cost less accumulated depreciation. Right-of-use operating lease assets are depreciated over the lease term.Right-of-use operating lease assets are tested for impairments whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the carrying value of an asset is impaired, it is reduced to the recoverable amount by an immediate charge to the income statement. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. |
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. |
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 for 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 translation adjustments as of each period end, are determined under the intraperiod tax allocation approach. Any tax effects remaining in accumulated other comprehensive income are only released when the entire portfolio is liquidated, sold or extinguished. |
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 previously 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. 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. |
New Accounting Pronouncements | Accounting Pronouncements Accounting Pronouncements Adopted in 2020 On June 16, 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU 2016-13, “ Financial Instruments - Credit Losses (Topic 326) ” which introduced 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 were 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 allowed 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 is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Following the adoption of these ASUs with effect from January 1, 2020, the Company recognized a reduction in the Company’s available-for-sale investment portfolio and reinsurance recoverables by $0.6 million and $3.7 million, respectively, as a result of recognizing current expected credit losses (“CECL”), together with a cumulative effect adjustment of $4.3 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. The amendments of this ASU are effective for fiscal years beginning after December 15, 2019 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 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. The amendments of this ASU are 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. Adoption of this ASU did not have a material impact on the Company’s financial statements and disclosures. On March 12, 2020, the FASB issued ASU 2020-04, “ Reference Date Reform (Topic 848) ” which provides optional guidance for a limited period of time (March 12, 2020 to December 31, 2022) aiming at easing the potential burden in accounting for the effects of reference rate reform, such as the potential cessation of the London Interbank Offered Rate (“LIBOR”). This ASU is effective as of March 12, 2020 through December 31, 2022. Adoption of this ASU did not have a material impact on the Company’s financial statements and disclosures. Accounting Pronouncements Not Yet Adopted 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, 2020 and interim periods within those fiscal years. During the year, the Company evaluated and considered the provisions of ASU 2019-12 and has concluded that there is no material impact on the consolidated financial statements for the current and future financial years. Other accounting pronouncements were issued during the year ended December 31, 2020 which were either not relevant to the Company or did not impact the Company’s consolidated financial statements. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020, 2019 and 2018: Twelve Months Ended December 31, 2020 Reinsurance Insurance Total ($ in millions) Underwriting Revenues Gross written premiums $ 1,660.8 $ 2,042.8 $ 3,703.6 Net written premiums 1,302.1 1,280.8 2,582.9 Gross earned premiums 1,616.4 2,027.1 3,643.5 Net earned premiums 1,292.1 1,240.5 2,532.6 Underwriting Expenses Losses and loss adjustment expenses 958.6 882.2 1,840.8 Amortization of deferred policy acquisition costs 246.0 219.7 465.7 General and administrative expenses 110.8 197.2 308.0 Underwriting (loss) (23.3) (58.6) (81.9) Corporate expenses (70.2) Non-operating expenses (32.7) (1) Net investment income 154.6 Realized and unrealized investment gains 98.5 Realized and unrealized investment losses (27.4) Change in fair value of derivatives (65.1) Interest expense on long term debt (33.9) Net realized and unrealized foreign exchange (losses) (12.4) Other income 49.8 (2) Other expenses (10.8) (Loss) before income taxes (31.5) Income tax (expense) (8.6) Net (loss) $ (40.1) Net reserves for loss and loss adjustment expenses $ 2,095.7 $ 1,874.4 $ 3,970.1 Ratios Loss ratio 74.2 % 71.1 % 72.7 % Policy acquisition expense ratio 19.0 17.7 18.4 General and administrative expense ratio 8.6 15.9 16.2 (3) Expense ratio 27.6 33.6 34.6 Combined ratio 101.8 % 104.7 % 107.3 % _______________ (1) Non-operating expenses includes $18.2 million of costs related to severance, retention awards and other costs, $12.9 million of impairment charges related to lease assets as a result of sub-leasing certain office space and $1.6 million of amortization of intangible assets and other non-operating expenses. (2) Includes the gain on sale of our renewal rights on our surety insurance book of business to a third party, totaling $43.1 million. (3) The general and administrative expense ratio in the total column includes corporate and non-operating expenses. 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 income taxes (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, $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 income taxes (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 $14.1 million buy-out provision. |
Schedule of gross written premiums based on geographical areas | Geographical Areas . The following summary presents the Company’s gross written premiums based on the location of the insured risk for the twelve months ended December 31, 2020, 2019 and 2018. For the Twelve Months Ended December 31, 2020 December 31, 2019 December 31, 2018 ($ in millions) Australia/Asia $ 259.7 $ 215.9 $ 175.9 Caribbean 6.0 9.3 7.7 Europe 92.5 82.8 92.6 United Kingdom 374.1 295.7 290.1 United States & Canada (1) 2,267.5 2,003.9 1,875.9 Worldwide excluding United States (2) 23.1 63.0 70.1 Worldwide including United States (3) 501.2 614.9 775.8 Others 179.5 156.9 158.8 Total $ 3,703.6 $ 3,442.4 $ 3,446.9 ______________ (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. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Investment Income | The following table summarizes investment income for the twelve months ended December 31, 2020, 2019 and 2018: For the Twelve Months Ended December 31, 2020 December 31, 2019 December 31, 2018 ($ in millions) Fixed income securities — Available for sale $ 106.5 $ 128.2 $ 134.1 Fixed income securities — Trading 32.8 42.0 49.6 Short-term investments — Available for sale 0.8 2.3 1.4 Short-term investments — Trading 0.5 2.5 0.4 Fixed term deposits (included in cash and cash equivalents) 6.4 19.5 14.2 Equity securities — Trading — — 2.1 Catastrophe bonds — Trading 1.4 2.3 2.8 Privately-held investments — Trading 20.9 3.4 — Other investments, at fair value (1) (2.0) 8.9 2.5 Total 167.3 209.1 207.1 Investment expenses (12.7) (11.8) (8.9) Net investment income $ 154.6 $ 197.3 $ 198.2 |
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, 2020, 2019 and 2018: For the Twelve Months Ended December 31, 2020 December 31, 2019 December 31, 2018 ($ in millions) Available for sale: Fixed income securities — gross realized gains $ 68.8 $ 14.4 $ 6.4 Fixed income securities — gross realized (losses) (1.8) (7.3) (11.4) Cash and cash equivalents — gross realized gains 0.5 0.1 0.3 Cash and cash equivalents — gross realized (losses) (0.4) (0.2) (0.5) Net change in expected credit gains 0.4 — — Trading: Fixed income securities — gross realized gains 18.2 34.3 4.6 Fixed income securities — gross realized (losses) (3.8) (2.6) (25.0) Short-term investments — gross realized gains — — 0.1 Short-term investments — gross realized (losses) — — (4.2) Cash and cash equivalents — gross realized gains 0.2 — 1.5 Cash and cash equivalents — gross realized (losses) (0.3) (0.3) (0.3) Equity securities — gross realized gains — — 94.5 Equity securities — gross realized (losses) — — (20.1) Privately-held investments — gross realized gains — 0.2 — Privately-held investments — gross realized (losses) — (0.2) — Privately-held investments — net change in gross unrealized (losses) (20.4) — — Catastrophe bonds — net unrealized gains — 0.9 2.2 Net change in gross unrealized gains / (losses) — 47.2 (112.1) Investments — equity method: Gross realized and unrealized (loss) in MVI (0.4) (0.1) (0.2) Gross realized and unrealized (loss) gain in Digital Risk (0.3) (0.2) 0.4 Gross realized and unrealized gain in Bene — — (0.9) Gross realized gain on sale of Bene 1.8 — — Gross realized gain on sale of Crop Re 8.6 — — Total net realized and unrealized investment gains/(losses) recorded in the statement of operations $ 71.1 $ 86.2 $ (64.7) Change in available for sale net unrealized gain/(losses): Fixed income securities 108.5 164.9 (81.3) Income tax (expense)/benefit (6.2) (13.6) 4.8 Total change in net unrealized gains/(losses), net of taxes recorded in other comprehensive income $ 102.3 $ 151.3 $ (76.5) |
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, 2020 and December 31, 2019: As at December 31, 2020 Cost or Gross Gross Allowance for Credit Losses Fair Market ($ in millions) U.S. government $ 1,041.3 $ 60.5 $ (0.6) $ — $ 1,101.2 U.S. agency 32.8 1.5 — — 34.3 Municipal 61.6 5.5 — — 67.1 Corporate 1,714.5 112.0 (0.1) (0.2) 1,826.2 Non-U.S. government-backed corporate 62.7 0.7 — — 63.4 Non-U.S. government 268.8 4.3 — — 273.1 Asset-backed 2.3 — — — 2.3 Non-agency commercial mortgage-backed 6.7 0.7 — — 7.4 Agency mortgage-backed 936.0 37.2 (0.1) — 973.1 Total fixed income securities — Available for sale 4,126.7 222.4 (0.8) (0.2) 4,348.1 Total short-term investments — Available for sale 88.0 — (0.2) — 87.8 Total $ 4,214.7 $ 222.4 $ (1.0) $ (0.2) $ 4,435.9 Effective January 1, 2020, the Company adopted ASU 2016-13 prospectively and as a result any credit losses on the Company's available-for-sale investments are recorded as an allowance, subject to reversal. See Note 2, “Basis of Preparation and Significant Accounting Policies” and Note 23, “Allowance for Credit Losses” for further details. As at December 31, 2019 Cost or Gross Gross Fair Market ($ 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 |
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, 2020 and December 31, 2019: As at December 31, 2020 Cost or Gross Gross Fair Market ($ in millions) Fixed Income Securities — Trading U.S. government $ 117.9 $ 2.7 $ (0.1) $ 120.5 Municipal 3.2 0.3 — 3.5 Corporate 94.4 9.1 — 103.5 High yield loans 10.0 — (0.2) 9.8 Non-U.S. government 41.5 0.1 — 41.6 Asset-backed 541.7 3.1 (5.7) 539.1 Agency mortgage-backed 36.1 1.5 — 37.6 Total fixed income securities — Trading 844.8 16.8 (6.0) 855.6 Short-term investments — Trading 35.4 — — 35.4 Catastrophe bonds — Trading 18.8 — — 18.8 Privately-held investments — Trading Commercial mortgage loans $ 178.6 $ 0.1 $ (15.1) $ 163.6 Middle market loans 117.4 0.2 (5.5) 112.1 Asset-backed securities 18.7 — (0.1) 18.6 Equity securities 5.0 — — 5.0 Total privately-held investments — Trading 319.7 0.3 (20.7) 299.3 Total Investments — Trading $ 1,218.7 $ 17.1 $ (26.7) $ 1,209.1 As at December 31, 2019 Cost or Gross Gross Fair Market ($ 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 |
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, 2020 and December 31, 2019: As at December 31, 2020 As at December 31, 2019 Net Carrying Value Percentage of Total Net Carrying Value Percentage of Total ($ millions) (%) ($ millions) (%) Property type Apartment 80.7 49.3 48.3 30.8 Hotels 20.4 12.5 47.7 30.4 Office building 33.9 20.7 21.9 14.0 Other commercial 28.6 17.5 17.0 10.9 Retail — — 15.2 9.7 Industrial — — 6.5 4.2 Total commercial mortgage loans $ 163.6 100 % 156.6 100 % Geographic Region U.S. 122.7 75.0 85.5 54.6 International 40.9 25.0 71.1 45.4 Total commercial mortgage loans $ 163.6 100 % 156.6 100 % As at December 31, 2020 As at December 31, 2019 Net Carrying Value Percentage of Total Net Carrying Value Percentage of Total ($ millions) (%) ($ millions) (%) Industry type Materials 28.0 24.9 29.5 26.4 Financials 27.1 24.2 22.2 19.8 Industrials 17.3 15.5 18.9 17.0 Consumer discretionary 13.7 12.2 14.2 12.7 Health care 7.5 6.7 8.2 7.4 Energy 7.3 6.5 7.4 6.6 Consumer staples 6.4 5.7 6.4 5.7 Information technology 4.8 4.3 4.9 4.4 Total middle market mortgage loans $ 112.1 100 % $ 111.7 100 % Geographic Region U.S. 91.8 81.9 91.8 82.2 International 20.3 18.1 19.9 17.8 Total middle market loans $ 112.1 100 % $ 111.7 100 % |
Credit Quality Indicators of Commercial Mortgage and Middle Market Loans | 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, 2020 and December 31, 2019: As at December 31, 2020 As at December 31, 2019 (in millions) Less than 50% $ 14.9 $ — 50% to 60% 39.3 80.5 61% to 70% 99.5 35.5 71% to 80% 9.9 40.6 Commercial mortgage loans $ 163.6 $ 156.6 As at December 31, 2020 As at December 31, 2019 (in millions) Less than 50% $ 59.8 $ 90.6 50% to 60% 11.0 21.1 61% to 70% 6.4 — 81% to 100% 17.2 — Greater than 100% 17.7 — Middle market loans $ 112.1 $ 111.7 |
Debt Service and Fixed Charge Coverage Ratios | The following table represents the debt-service coverage ratio of the commercial mortgage loan portfolio, excluding those that are non-performing and construction loans which are still under development, as at December 31, 2020 and December 31, 2019: As at December 31, 2020 As at December 31, 2019 (in millions) Greater than 1.20x $ 82.2 $ 94.6 1.00 - 1.20x 14.9 — Less than 1.00x — 13.7 Commercial mortgage loans (1) 97.1 108.3 As at December 31, 2020 As at December 31, 2019 (in millions) Greater than 1.20x $ 73.6 $ 68.4 1.00 - 1.20x — 25.5 Less than 1.00x 38.5 17.8 Middle market loans $ 112.1 $ 111.7 |
Other Investments | The table below shows the Company’s investments in MVI, Multi-Line Reinsurer, Bene, Digital Re and Crop Re for the twelve months ended December 31, 2020 and 2019: MVI Multi-Line Reinsurer Bene Digital Re Crop Re Total ($ in millions) Opening undistributed value of investment as at January 1, 2020 $ 0.4 $ — $ 4.3 $ 0.7 $ 62.5 $ 67.9 Investment in the period — 0.5 — — — 0.5 Unrealized (loss) for the twelve months to December 31, 2020 (0.4) — — (0.3) — (0.7) Gain on disposal — — 1.8 — 8.6 10.4 Proceeds from disposal — — (6.1) — (71.1) (77.2) Closing value of investment as at December 31, 2020 $ — $ 0.5 $ — $ 0.4 $ — 0.9 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) 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 |
Summary of Fixed Maturities | The scheduled maturity distribution of the Company’s available for sale fixed income securities as at December 31, 2020 and December 31, 2019 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, 2020 Amortized Fair Market Average ($ in millions) Due one year or less $ 498.6 $ 501.3 AA Due after one year through five years 1,833.6 1,925.9 AA- Due after five years through ten years 741.9 806.5 AA- Due after ten years 107.6 131.6 AA- Total — Government and corporate 3,181.7 3,365.3 Non-agency commercial mortgage-backed 6.7 7.4 AA+ Agency mortgage-backed 936.0 973.1 AA+ Asset-backed 2.3 2.3 AAA Total fixed income securities — Available for sale $ 4,126.7 $ 4,348.1 At December 31, 2019 Amortized Fair Market Average ($ 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 |
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, 2020 and December 31, 2019: December 31, 2020 0-12 months Over 12 months Total Fair Gross Fair Gross Fair Gross Number of ($ in millions) U.S. government $ 58.7 $ (0.6) $ — $ — $ 58.7 $ (0.6) 10 Corporate 39.6 (0.1) — — 39.6 (0.1) 16 Non-U.S. government 7.5 — — — 7.5 — 4 Agency mortgage-backed 33.3 (0.1) 2.1 — 35.4 (0.1) 19 Total fixed income securities — Available for sale 139.1 (0.8) 2.1 — 141.2 (0.8) 49 Total short-term investments — Available for sale 8.7 — — (0.2) 8.7 (0.2) 15 Total $ 147.8 $ (0.8) $ 2.1 $ (0.2) $ 149.9 $ (1.0) 64 December 31, 2019 0-12 months Over 12 months Total Fair Gross Fair Gross Fair Gross Number of ($ 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 securities 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 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019: For the Twelve Months Ended December 31, 2020 Third Party Aspen Holdings Total ($ in millions) Opening balance $ — $ — $ — Total change in fair value for the period — — — Total distributed in the period — — — Closing balance as at December 31, 2020 $ — $ — $ — Liability Loan notes (long-term liabilities) $ — $ — $ — Accrued expenses (current liabilities) — — — Total aggregate unpaid balance as at December 31, 2020 $ — $ — $ — 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 $ — $ — $ — |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and December 31, 2019: As at December 31, 2020 Level 1 Level 2 Level 3 Total ($ in millions) Available for sale financial assets, at fair value U.S. government $ 1,101.2 $ — $ — $ 1,101.2 U.S. agency — 34.3 — 34.3 Municipal — 67.1 — 67.1 Corporate 184.2 88.9 — 273.1 Non-U.S. government-backed corporate — 63.4 — 63.4 Non-U.S. government — 7.4 — 7.4 Asset-backed — 973.1 — 973.1 Non-agency commercial mortgage-backed — 2.3 — 2.3 Agency mortgage-backed — 1,826.2 — 1,826.2 Total fixed income securities available for sale, at fair value 1,285.4 3,062.7 — 4,348.1 Short-term investments available for sale, at fair value 81.0 6.8 — 87.8 Held for trading financial assets, at fair value U.S. government 120.5 — — 120.5 Municipal — 3.5 — 3.5 Corporate — 103.5 — 103.5 High yield loans — 9.8 — 9.8 Non-U.S. government 41.2 0.4 — 41.6 Asset-backed — 539.1 — 539.1 Agency mortgage-backed — 37.6 — 37.6 Total fixed income securities trading, at fair value 161.7 693.9 — 855.6 Short-term investments trading, at fair value 35.4 — — 35.4 Privately-held investments trading, at fair value — — 299.3 299.3 Catastrophe bonds trading, at fair value — 18.8 — 18.8 Other investments (1) — — — 109.4 Other financial assets and liabilities, at fair value Derivatives at fair value — foreign exchange contracts — 26.8 — 26.8 Liabilities under derivative contracts — foreign exchange contracts — (13.6) — (13.6) Total 1,563.5 3,795.4 299.3 5,767.6 ______________ (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, 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 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 — — 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 Derivatives at fair value — interest rate swaps — (78.3) — (78.3) Liabilities under derivative contracts — foreign exchange contracts — (8.9) — (8.9) 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.” |
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 Lev el 3 inputs for the twelve months ended December 31, 2020 and December 31, 2019: Twelve Months Ended December 31, 2020 Balance at beginning of year Purchases and issuances Transfers in/(out) Settlements and sales Increase/(decrease) in fair value including 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 $ 156.4 $ 79.7 $ — $ (59.4) $ (13.1) $ 163.6 $ 0.1 Middle market loans 111.7 0.9 8.3 (4.8) (4.0) 112.1 (5.3) Asset-backed securities 8.7 10.0 — — (0.1) 18.6 — Equity securities 2.7 2.4 — (0.1) — 5.0 — Total Level 3 assets $ 279.5 $ 93.0 $ 8.3 $ (64.3) $ (17.2) $ 299.3 $ (5.2) Liabilities Loan notes issued by Silverton $ — $ — $ — $ — $ — $ — $ — Total Level 3 liabilities $ — $ — $ — $ — $ — $ — $ — Twelve Months Ended December 31, 2019 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 $ 4.6 $ — $ — $ (7.7) $ 3.1 $ — $ — Total Level 3 liabilities $ 4.6 $ — $ — $ (7.7) $ 3.1 $ — $ — |
Fair Value Inputs, and Valuation Techniques | 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, 2020: At December 31, 2020 Fair Value Valuation Techniques Unobservable (U) inputs Ranges Weighted Average ($ in millions) Privately-held investments — Trading Commercial mortgage loans $ 150.8 Discounted cash flow Discount rate 6.0% — 9.0% 7.3% Commercial mortgage loans 12.1 Transaction Value n/a n/a n/a n/a Commercial mortgage loans 0.7 Liquidation Method n/a n/a n/a n/a Middle market loans 106.5 Discounted cash flow Discount rate 6.3% — 16.5% 8.7% Middle market loans 5.6 Recovery Approach n/a n/a n/a n/a Asset-backed securities 18.6 Discounted cash flow Discount rate 5.7% — 6.9% 6.2% Equity securities 4.3 Discounted cash flow Discount rate 9.3% n/a 9.3% Equity securities 0.7 Transaction Value n/a n/a n/a n/a $ 299.3 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020, 2019 and 2018 was as follows: Twelve Months Ended December 31, 2020 2019 2018 ($ in millions) Premiums written : Direct $ 2,042.8 $ 1,956.9 $ 1,951.2 Assumed 1,660.8 1,485.5 1,495.7 Ceded (1,120.7) (1,014.5) (1,364.9) Net premiums written $ 2,582.9 $ 2,427.9 $ 2,082.0 Premiums earned: Direct $ 2,027.1 $ 1,927.5 $ 1,940.5 Assumed 1,616.4 1,494.9 1,593.9 Ceded (1,110.9) (1,129.1) (1,319.7) Net premiums earned $ 2,532.6 $ 2,293.3 $ 2,214.7 Insurance losses and loss adjustment expenses: Direct $ 1,479.6 $ 1,415.5 $ 1,458.9 Assumed 1,134.5 1,147.9 1,196.1 Ceded (773.3) (883.7) (1,082.0) Net insurance losses and loss adjustment expenses $ 1,840.8 $ 1,679.7 $ 1,573.0 |
Derivative Contracts (Tables)
Derivative Contracts (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019: As at December 31, 2020 As at December 31, 2019 Derivatives Not Designated as Hedging Instruments Balance Sheet Location Notional Fair Notional Fair ($ in millions) ($ in millions) Foreign Exchange Contracts Derivatives at Fair Value $ 803.1 $ 21.5 (1) $ 687.3 $ 8.1 (1) Foreign Exchange Contracts Liabilities under Derivative Contracts $ 599.2 $ (13.6) $ 1,009.0 $ (8.9) Interest Rate Swaps Liabilities under Derivative Contracts $ — $ — (2) $ 1,800.0 $ (78.3) ______________ (1) Net of $3.4 million of cash collateral (December 31, 2019 — $2.9 million). (2) Initial and variation margin of $Nil has been posted (December 31, 2019 — $111.1 million). As at December 31, 2020 As at December 31, 2019 Derivatives Designated as Hedging Instruments Under ASC 815 Balance Sheet Location Notional Fair Notional Fair ($ in millions) ($ in millions) Foreign Exchange Contracts Derivatives at Fair Value $ 90.6 $ 5.3 $ 85.5 $ 4.8 |
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, 2020 and 2019: Amount of (Loss)/Gain Recognized on Derivatives For the Twelve Months Ended Location of Gain/(Loss) December 31, 2020 December 31, 2019 Derivatives not designated as hedges ($ in millions) Foreign Exchange Contracts Change in Fair Value of Derivatives 16.0 (14.0) Interest Rate Swaps Change in Fair Value of Derivatives (81.1) (130.2) Derivatives designated as hedges Foreign Exchange Contracts General, administrative and corporate expenses (3.2) 0.9 Foreign Exchange Contracts Net change from current period hedged transactions 0.3 4.8 |
Deferred Policy Acquisition C_2
Deferred Policy Acquisition Costs (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019: Twelve Months Ended December 31, 2020 Twelve Months Ended December 31, 2019 ($ in millions) Balance at the beginning of the period $ 291.1 $ 248.5 Acquisition costs deferred 481.2 455.3 Amortization of deferred policy acquisition costs (465.7) (412.7) Balance at the end of the period $ 306.6 $ 291.1 |
Reserves for Losses and Adjus_2
Reserves for Losses and Adjustment Expenses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020, 2019 and 2018: As at December 31, 2020 2019 2018 ($ in millions) Provision for losses and LAE at the start of the year $ 6,951.8 $ 7,074.2 $ 6,749.5 Less reinsurance recoverable (2,319.8) (2,077.6) (1,515.2) Net loss and LAE at the start of the year 4,632.0 4,996.6 5,234.3 Net loss and LAE expenses (disposed) (1) (818.5) — — Movement in net provision for losses and LAE for claims incurred: Current year 1,841.7 1,620.2 1,684.1 Prior years (0.9) 59.5 (111.1) Total incurred 1,840.8 1,679.7 1,573.0 Losses and LAE payments for claims incurred: Current year (404.9) (428.5) (285.7) Prior years (1,359.7) (1,694.1) (1,441.0) Total paid (1,764.6) (2,122.6) (1,726.7) Foreign exchange losses/(gains) 80.4 78.3 (84.0) Net losses and LAE reserves at the end of the year 3,970.1 4,632.0 4,996.6 Plus reinsurance recoverable on unpaid losses at the end of the year 3,195.2 2,319.8 2,077.6 Provision for losses and LAE at the end of the year $ 7,165.3 $ 6,951.8 $ 7,074.2 |
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, 2020, 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. All amounts included in the following tables related to transactions denominated in a foreign currency have been translated into U.S. Dollars using the exchange rates in effect at December 31, 2020. Property Insurance Lines Incurred Claims, IBNR and Loss Adjustment Expenses, Net of Reinsurance As at December 31, 2020 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 2020 $ (in millions) 2012 171.1 168.9 167.7 166.7 161.1 155.2 154.1 154.2 154.8 — 6,080 2013 131.2 118.2 117.9 113.6 114.6 112.6 112.9 113.1 0.7 5,742 2014 166.5 158.2 135.0 135.6 134.9 133.3 132.7 0.6 9,969 2015 242.7 208.1 202.5 204.9 205.3 202.1 2.9 11,583 2016 240.5 251.2 246.1 247.4 248.9 3.5 10,765 2017 298.4 261.2 254.4 255.7 (6.5) 9,639 2018 207.2 210.0 193.5 (13.3) 8,106 2019 129.2 132.7 11.7 6,592 2020 207.5 64.7 5,706 Total $ 1,641.0 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 2020 ($ in millions) 2012 41.6 129.8 139.6 153.9 158.0 155.4 154.8 154.7 154.7 2013 39.4 76.7 90.0 102.1 106.7 109.4 111.2 111.5 2014 40.6 87.1 114.7 124.5 128.6 130.1 131.3 2015 57.6 144.6 172.7 181.9 198.6 197.0 2016 67.5 170.1 202.9 225.3 234.2 2017 97.4 190.5 224.0 244.9 2018 63.1 164.5 186.6 2019 49.8 93.0 2020 62.1 Total $ 1,415.3 All outstanding liabilities for 2012 and subsequent years, net of reinsurance $ 225.7 All outstanding liabilities before 2012, net of reinsurance (unaudited) 1.1 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 226.8 Casualty Insurance Lines Incurred Claims, IBNR and Loss Adjustment Expenses, Net of Reinsurance As at December 31, 2020 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 2020 $ (in millions) 2012 78.8 63.7 70.8 62.0 69.9 67.5 69.4 71.4 67.6 1.9 3,016 2013 134.6 117.9 116.3 121.9 104.8 106.1 106.2 100.5 3.6 3,311 2014 147.0 129.2 141.1 131.5 138.7 142.8 131.1 5.9 3,807 2015 206.2 226.2 188.8 207.0 240.0 223.5 17.9 4,682 2016 220.2 191.4 186.8 193.6 194.1 34.7 4,697 2017 184.0 177.4 181.6 188.3 27.8 5,297 2018 124.9 127.7 127.3 43.0 5,440 2019 127.4 132.3 70.1 4,958 2020 135.7 120.2 2,964 Total 1,300.4 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 2020 ($ in millions) 2012 1.4 6.8 14.4 30.1 41.5 49.9 50.8 55.5 60.2 2013 2.3 26.0 40.0 53.7 69.3 82.0 86.3 88.4 2014 2.8 13.6 33.2 60.7 74.5 99.1 112.2 2015 3.2 17.3 57.2 94.0 140.5 170.1 2016 4.3 23.2 41.0 84.3 111.9 2017 3.7 23.3 53.7 99.1 2018 3.3 28.3 44.5 2019 6.5 18.8 2020 — Total $ 705.2 All outstanding liabilities for 2012 and subsequent years, net of reinsurance $ 595.2 All outstanding liabilities before 2012, net of reinsurance (unaudited) 23.5 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 618.7 Marine, Aviation and Energy Insurance Lines Incurred Claims, IBNR and Loss Adjustment Expenses, Net of Reinsurance As at December 31, 2020 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 2020 $ (in millions) 2012 270.4 307.7 327.2 348.0 333.6 329.6 318.0 312.7 303.1 0.6 3,812 2013 321.8 334.7 343.3 326.7 333.7 347.2 346.0 340.7 — 4,175 2014 310.5 315.0 299.8 311.4 306.9 313.8 301.6 — 4,049 2015 298.4 301.8 284.1 287.9 311.5 313.5 — 4,053 2016 262.7 232.2 231.7 231.8 218.5 — 4,416 2017 211.7 201.7 208.1 201.5 7.8 6,001 2018 172.4 209.5 202.6 13.7 5,133 2019 147.3 148.4 27.5 3,466 2020 111.5 56.8 2,321 Total 2,141.4 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 2020 ($ in millions) 2012 52.4 133.6 176.2 212.5 241.4 252.3 275.2 276.1 278.2 2013 41.7 131.9 205.5 236.0 265.3 285.0 301.2 311.0 2014 53.7 117.2 189.9 210.7 233.4 251.6 263.9 2015 45.2 124.0 175.3 195.4 223.4 258.6 2016 30.9 83.5 144.6 166.2 193.4 2017 40.5 98.2 141.0 169.3 2018 27.0 105.6 133.9 2019 33.8 73.1 2020 28.6 Total $ 1,710.0 All outstanding liabilities for 2012 and subsequent years, net of reinsurance $ 431.4 All outstanding liabilities before 2012, net of reinsurance (unaudited) — Liabilities for claims and claim adjustment expenses, net of reinsurance $ 431.4 Financial and Professional Insurance Lines Incurred Claims, IBNR and Loss Adjustment Expenses, Net of Reinsurance As at December 31, 2020 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 2020 $ (in millions) 2012 88.9 90.2 94.1 97.7 94.6 90.1 102.5 97.3 103.3 10.5 575 2013 106.7 101.4 105.6 102.5 101.7 92.5 91.5 97.7 9.2 567 2014 136.5 132.8 131.5 121.7 133.1 122.1 120.0 9.1 791 2015 176.1 177.4 187.4 191.8 193.2 182.2 16.8 1,085 2016 193.3 213.9 218.7 204.3 182.1 26.2 1,249 2017 208.8 185.3 190.0 181.7 21.2 1,720 2018 159.8 175.8 151.7 27.2 4,644 2019 252.0 245.5 102.6 23,761 2020 352.9 261.7 69,692 Total $ 1,617.1 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 2020 ($ in millions) 2012 22.8 39.7 50.9 59.6 65.5 70.8 80.6 85.8 91.5 2013 8.2 21.6 31.7 66.1 64.6 73.5 75.5 78.8 2014 3.0 31.0 54.3 73.1 80.6 86.7 93.3 2015 13.9 43.8 70.5 90.0 110.9 140.1 2016 15.5 71.8 103.2 131.2 127.3 2017 27.3 51.5 83.9 118.3 2018 21.3 76.2 102.7 2019 27.6 87.6 2020 48.2 Total $ 887.8 All outstanding liabilities for 2012 and subsequent years, net of reinsurance $ 729.3 All outstanding liabilities before 2012, net of reinsurance (unaudited) 9.2 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 738.5 Property Catastrophe and Other Property Reinsurance Incurred Claims, IBNR and Loss Adjustment Expenses, Net of Reinsurance As at December 31, 2020 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 2020 $ (in millions) 2012 282.2 305.5 288.2 281.0 284.4 281.4 273.8 263.7 267.0 6.8 674 2013 221.9 204.5 194.4 183.0 181.5 178.0 175.1 172.3 3.5 829 2014 193.5 181.4 165.1 153.7 154.1 149.1 149.0 2.0 902 2015 218.7 191.1 181.0 160.0 175.2 175.3 5.9 1,044 2016 277.9 277.5 275.4 253.4 249.5 2.3 1,296 2017 563.9 539.8 520.6 509.3 7.5 1,952 2018 360.5 422.6 420.0 8.9 1,813 2019 286.4 293.8 4.2 1,335 2020 328.0 161.7 876 $ 2,564.2 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 2020 ($ in millions) 2012 35.9 137.1 190.5 210.8 218.4 229.6 234.0 244.1 249.9 2013 35.0 101.0 150.3 162.8 167.7 169.2 170.8 165.2 2014 38.0 103.0 130.2 140.6 144.7 143.5 145.2 2015 36.1 96.8 129.6 142.0 159.1 161.5 2016 57.6 167.4 209.2 220.7 234.4 2017 123.8 359.9 419.9 444.5 2018 123.7 331.5 352.3 2019 28.4 161.7 2020 43.0 Total $ 1,957.7 All outstanding liabilities for 2012 and subsequent years, net of reinsurance 606.5 All outstanding liabilities before 2012, net of reinsurance (unaudited) 24.5 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 631.0 Casualty Reinsurance Incurred Claims, IBNR and Loss Adjustment Expenses, Net of Reinsurance As at December 31, 2020 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 2020 $ (in millions) 2012 237.0 235.3 246.7 238.3 235.3 236.2 244.9 247.2 221.6 — 1,804 2013 217.7 233.0 228.8 226.1 208.8 203.7 206.5 176.5 3.7 1,679 2014 209.0 212.4 221.1 214.5 207.7 210.2 173.4 0.3 1,775 2015 198.0 205.4 214.6 216.9 214.5 171.4 4.9 1,906 2016 237.7 250.6 250.4 260.3 220.9 18.7 1,937 2017 249.9 247.3 258.2 201.5 25.0 1,771 2018 233.0 262.9 209.2 70.5 1,488 2019 239.0 189.4 102.6 963 2020 259.3 235.2 342 Total $ 1,823.2 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 2020 ($ in millions) 2012 2.2 17.9 42.3 65.9 97.1 118.6 135.7 145.4 163.3 2013 3.5 16.0 43.2 65.5 93.8 115.9 128.7 140.9 2014 2.6 14.1 38.2 60.9 87.4 108.7 127.1 2015 3.6 18.4 39.1 66.3 90.4 109.9 2016 9.5 34.2 65.4 97.7 128.2 2017 9.1 31.1 59.8 98.7 2018 7.3 34.0 74.2 2019 9.4 36.9 2020 9.4 Total $ 888.6 All outstanding liabilities for 2012 and subsequent years, net of reinsurance 934.6 All outstanding liabilities before 2012, net of reinsurance (unaudited) 149.6 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 1,084.2 Specialty Reinsurance Incurred Claims, IBNR and Loss Adjustment Expenses, Net of Reinsurance As at December 31, 2020 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 2020 $ (in millions) 2012 179.5 202.9 192.2 176.9 175.4 175.9 172.7 170.1 166.6 0.1 636 2013 148.4 143.4 135.0 123.0 122.2 118.4 117.9 114.2 0.5 575 2014 155.3 143.0 135.1 125.8 128.8 127.1 120.3 — 624 2015 168.9 173.8 168.4 162.7 160.9 152.9 5.2 765 2016 242.1 243.3 241.0 233.1 222.8 9.7 923 2017 384.2 396.7 380.2 359.3 11.3 1,311 2018 401.7 401.0 391.7 23.0 1,372 2019 480.0 495.0 62.4 1,433 2020 418.1 173.4 1,096 Total $ 2,440.9 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 2020 ($ in millions) 2012 25.3 95.6 131.1 141.2 146.6 152.0 153.3 156.1 156.6 2013 25.7 73.5 89.7 97.1 104.2 104.2 105.2 104.9 2014 17.1 58.1 83.3 91.4 102.0 104.9 106.6 2015 18.1 57.9 106.1 124.8 134.0 137.0 2016 59.1 152.6 167.7 185.9 196.2 2017 95.3 240.8 273.4 309.3 2018 27.9 282.8 317.4 2019 275.4 384.8 2020 213.6 Total $ 1,926.4 All outstanding liabilities for 2012 and subsequent years, net of reinsurance 514.5 All outstanding liabilities before 2012, net of reinsurance (unaudited) 20.9 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 535.4 |
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 December 31, 2020 Twelve Months Ended December 31, 2019 ($ in millions) Net outstanding liabilities: Insurance lines - Property insurance lines 226.8 190.7 - Casualty insurance lines 618.7 669.2 - Marine, aviation and energy insurance lines 431.4 591.5 - Financial and professional insurance lines 738.5 657.4 Total insurance lines 2,015.4 2,108.8 Reinsurance lines - Property catastrophe and other property reinsurance 631.0 528.6 - Casualty reinsurance 1,084.2 1,602.2 - Specialty reinsurance 535.4 575.9 Total reinsurance lines 2,250.6 2,706.7 Net loss and LAE 4,266.0 4,815.5 Reinsurance recoverable on unpaid losses: Insurance lines 2,140.3 1,772.8 Reinsurance lines 1,054.9 547.0 Total reinsurance recoverable on unpaid losses 3,195.2 2,319.8 Unallocated claims incurred 50.3 44.0 Other reinsurance balances recoverable (1) (346.7) (227.4) Other 0.5 (0.1) (295.9) (183.5) Provision for losses and LAE at the end of the year 7,165.3 6,951.8 ____________________ |
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 9 Insurance 16.3 % 26.7 % 16.1 % 12.6 % 8.4 % 6.9 % 4.6 % 2.0 % 2.0 % Reinsurance 18.0 % 31.6 % 15.6 % 9.5 % 8.6 % 5.3 % 4.0 % 2.5 % 3.8 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Summary of Total Income Tax | Total income tax (benefit)/expense for the twelve months ended December 31, 2020, 2019 and 2018 was allocated as follows: Twelve Months Ended December 31, 2020 2019 2018 ($ in millions) Income tax expense/(benefit) allocated to net loss $ 8.6 $ 22.9 $ (10.2) Income tax expense/(benefit) allocated to other comprehensive income 6.2 11.2 4.1 Total income tax expense/(benefit) $ 14.8 $ 34.1 $ (6.1) |
Schedule of Income Tax by Taxing Authority | (Loss)/income from operations before income taxes and income tax expense/(benefit) attributable to that (loss)/income for the twelve months ended December 31, 2020, 2019 and 2018 is provided in the tables below: Twelve Months Ended December 31, 2020 (Loss)/income Current tax Deferred tax Total income tax ($ in millions) Bermuda $ (77.6) $ — $ — $ — U.S. (1) (2) 19.7 8.9 (5.7) 3.2 U.K. 12.4 0.1 — 0.1 Other (3) 14.0 5.3 — 5.3 Total $ (31.5) $ 14.3 $ (5.7) $ 8.6 Twelve Months Ended December 31, 2019 (Loss) Current tax Deferred tax Total income tax ($ in millions) Bermuda $ (107.6) $ — $ — $ — U.S. (60.0) 1.0 6.5 7.4 U.K. (45.7) (6.7) 17.3 10.6 Other (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 income 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 1.8 4.4 (0.3) 4.1 Total $ (156.0) $ (1.7) $ (8.5) $ (10.2) ________________ (1) The U.S. current tax expense includes $4.5 million of prior year adjustments. (2) The U.S. deferred tax benefit of $5.7 million is an intraperiod tax allocation between the Income Statement and unrealized gains on investments in other comprehensive income. (3) Current tax expense in “other” is predominantly made up of taxation paid in respect of branches of U.K. and Bermudian operating subsidiaries and withholding taxes payable in Australia. |
Income Tax Reconciliation | The reconciliation between the income tax expense/(benefit) and the amount that would result from applying the statutory rate for the Company for the twelve months ended December 31, 2020, 2019 and 2018 is provided in the table below: Twelve Months Ended December 31, 2020 2019 2018 Income Tax Reconciliation ($ in millions) Income tax benefit at statutory tax rate of zero percent $ — $ — $ — Overseas statutory tax rates differential 12.1 (21.2) (17.1) Base erosion and anti-abuse tax (BEAT) expense 4.3 0.3 6.0 Prior year adjustments (1) (3.2) (1.7) 1.4 Change in valuation allowance (2) (10.4) 42.6 7.1 Impact of unrecognized tax benefits (3) — — (12.8) Restricted foreign tax credits (4) — 1.5 — Australian non-resident withholding tax 1.0 1.0 4.4 Share-based payments — (0.6) 0.2 Foreign exchange 1.9 — 0.1 Non-deductible expenses 4.6 — 0.7 Non-taxable items — (0.1) (0.3) Impact of changes in statutory tax rates (1.7) 1.1 0.1 Total income tax expense/(benefit) $ 8.6 $ 22.9 $ (10.2) ________________ (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, 2020 predominantly relate to the determination of the results of the branches of the U.K. operating subsidiaries. The prior period adjustments for the twelve months ended December 31, 2019 and 2018 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 2020 valuation allowance includes a $20.9 million reduction resulting from U.S. current year income, of which $14.0 million relates to the utilization of existing net operating losses, and a $10.4 million increase relating to deferred tax assets in U.K. operating subsidiaries. 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 2020, the company did not have any unrecognized tax benefits. In 2018, the $12.8 million benefit relates to the successful conclusion of a U.K. tax inquiry which enabled the release of a provision we had been holding against the potential disallowance of a prior year adjustment. Income tax returns that have been filed by the Company’s U.S. operating subsidiaries are subject to examination for 2016 and later tax years. The Company’s U.K. operating subsidiaries’ income tax returns are subject to examination for 2019 and later tax years. (4) Restricted foreign tax credits are taxes paid by branches of U.K. operating subsidiaries that are not creditable against U.K. taxes. |
Tax Effects of Deferred Tax Assets and Deferred Tax Liabilities | The tax effects of temporary differences and carryforwards that give rise to deferred tax assets and deferred tax liabilities are presented in the following table as at December 31, 2020 and 2019: As at December 31, 2020 2019 ($ in millions) Deferred tax assets: Share-based payments $ — $ 0.3 Operating loss carryforwards 119.6 121.5 Insurance reserves: Losses and loss adjustment expenses 7.9 5.0 Accrued expenses 6.4 7.1 Insurance reserves: Unearned premiums 17.6 15.3 Deferred policy acquisition costs — 0.1 Office properties and equipment 12.7 16.8 Operating lease liabilities 17.7 21.5 Other temporary differences 2.5 6.1 Total deferred tax assets 184.4 193.7 Less valuation allowance (138.9) (149.2) Deferred tax assets, net of valuation allowance $ 45.5 $ 44.5 Deferred tax liabilities: Unrealized (gains) on investments (2.7) (2.7) Intangible assets (20.1) (1.6) Deferred policy acquisition costs (8.4) (16.4) Right-of-use operating lease assets (12.3) (19.9) Other temporary differences (2.0) (3.9) Total deferred tax (liabilities) (45.5) (44.5) Net deferred tax assets $ — $ — |
Capital Structure (Tables)
Capital Structure (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019: As at December 31, 2020 At December 31, 2019 Number $ in Number $ in Authorized share capital: Ordinary Shares $0.01 per share ( 2019 — $0.01 per share 70,000,000 700 70,000,000 700 Preference Shares 0.15144558¢ per share 30,000,000 45 30,000,000 45 Total authorized share capital 745 745 Issued share capital: Issued ordinary shares $0.01 per share ( 2019 — $0.01 per share 60,395,839 604 60,395,839 604 Issued 5.950% 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 $25 per share (1) 10,000 — 10,000 — Total issued share capital 636 636 ______________ (1) Each depositary share represents a 1/1000 th interest in a share of the 5.625% preference shares. |
Statutory Requirements and Di_2
Statutory Requirements and Dividends Restrictions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
Summary of Statutory Requirements and Dividends Restrictions | Actual and required statutory capital and surplus for the principal operating subsidiaries of the Company, excluding its Lloyd’s syndicate, as at December 31, 2020 and December 31, 2019 were estimated as follows: As at December 31, 2020 U.S. Bermuda U.K. ($ in millions) Required statutory capital and surplus $ 504.8 $ 632.5 $ 786.0 Actual statutory capital and surplus $ 606.2 $ 1,147.5 $ 969.5 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 |
Dividends (Tables)
Dividends (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Summary of Declared Dividends | Dividends. On March 4, 2021, 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, 2021 March 15, 2021 5.625 %Preference Shares (AHL PRD) $ 0.3516 April 1, 2021 March 15, 2021 5.625 %Preference Shares, represented by depositary shares (AHL PRE) (1) $ 351.56 April 1, 2021 March 15, 2021 ______________ (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 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019: Twelve Months Ended December 31, 2020 Beginning of the Year Additions/(Disposals) Amortization Impairment End of the Year ($ in millions) Intangible Assets Trademarks $ 1.9 $ — $ (0.3) $ — $ 1.6 Agency Relationships 1.2 — (0.6) — 0.6 Non-compete Agreements 0.2 — (0.2) — — Insurance Licenses 16.7 — — — 16.7 Goodwill 3.9 — — — 3.9 Total $ 23.9 $ — $ (1.1) $ — $ 22.8 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 |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Lease, Cost | Operating lease charge. The following table summarizes the operating lease charge for the twelve months ended December 31, 2020 and 2019: For the Twelve Months Ended December 31, 2020 December 31, 2019 ($ in millions) Amortization charge on right-of-use operating leased assets $ 11.8 $ 13.4 Interest on operating lease liabilities 5.5 4.6 Operating lease charge $ 17.3 $ 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, 2020 and 2019: December 31, 2020 December 31, 2019 ($ in millions) Operating leases — maturities 2020 $ — $ 17.7 2021 17.2 16.4 2022 14.2 13.0 2023 13.5 12.2 2024 12.6 11.7 2025 12.2 11.5 Later years 63.4 62.1 Total minimum lease payments $ 133.1 $ 144.6 Less imputed interest (27.1) (31.4) Total lease liabilities $ 106.0 $ 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, 2020 and 2019, and other supplemental information: For the Twelve Months Ended December 31, 2020 December 31, 2019 ($ in millions) Cash paid for amounts included in the measurement of lease liabilities - Operating cash outflow from operating leases $ (17.3) $ (18.0) Right-of-use assets obtained in exchange for lease obligations - Operating leases $ 5.0 $ 37.3 Reduction to Right-of-use assets resulting from reductions to lease obligations - Operating leases $ 13.0 $ 6.1 Weighted Averages - Operating leases, remaining lease terms (years) 9.1 10.1 - Operating leases, average discount rate 5.0 % 5.0 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019: As at December 31, 2020 At December 31, 2019 ($ in millions, except percentages) Regulatory trusts and deposits: Affiliated transactions $ 1,027.9 $ 754.9 Third party 2,762.2 2,766.6 Letters of credit / guarantees (1) 516.8 635.4 Total restricted assets (excluding illiquid assets) 4,306.9 4,156.9 Other investments — real estate fund (illiquid assets) 109.4 111.4 Total restricted assets and illiquid assets $ 4,416.3 $ 4,268.3 Total as percent of cash and invested assets (2) 58.6 % 54.4 % (1) As at December 31, 2020, the Company had pledged funds of $516.8 million (December 31, 2019 — $635.4 million) as collateral for the secured letters of credit. (2) Investable assets comprise total investments, cash and cash equivalents, accrued interest, receivables for securities sold and payables for securities purchased. |
Concentration of Credit Risk (T
Concentration of Credit Risk (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
Schedule Of Gross Written Premium From Major Brokers | The following table shows the largest brokers that the Company transacted business within the three years ended December 31, 2020 and the proportion of gross written premiums from each of those brokers. Twelve Months Ended December 31, 2020 2019 2018 (in percentages) Aon Corporation (1) 15.8 % 13.4 % 15.8 % Marsh & McLennan Companies, Inc. 15.4 13.6 15.8 Willis Group Holdings, Ltd. 10.4 10.3 12.4 Other brokers/non-broker sources (2) 58.4 62.7 56.0 Total 100.0 % 100.0 % 100.0 % Gross written premiums ($ millions) $ 3,703.6 $ 3,442.4 $ 3,446.9 ______________ (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. |
Reclassifications from Accumu_2
Reclassifications from Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019: Amount Reclassified from AOCI Details about the AOCI Components Twelve Months Ended December 31, 2020 Twelve Months Ended December 31, 2019 Affected Line Item in the ($ in millions) Available for sale securities: Realized (losses) on sale of securities $ (69.3) $ (14.4) Realized and unrealized investment gains Realized gains on sale of securities 2.2 7.6 Realized and unrealized investment losses (67.1) (6.8) (Loss) from operations before income tax Tax on net realized gains of securities — — Income tax (expense)/benefit $ (67.1) $ (6.8) Net (loss) Realized derivatives: Net realized gains on settled derivatives 0.3 4.8 General, administrative and corporate expenses Tax on settled derivatives — (0.8) Income tax (expense)/benefit $ 0.3 $ 4.0 Net (loss) Total reclassifications from AOCI to the statement of operations, net of income tax $ (66.8) $ (2.8) Net (loss) |
Credit Facility and Long-term_2
Credit Facility and Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020. 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 |
Credit Losses (Tables)
Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Credit Loss [Abstract] | |
Reinsurance Recoverable, Allowance for Credit Loss | The following table summarizes the Company’s allowance for expected credit losses for the twelve months ended December 31, 2020 in investments, reinsurance recoverables and receivables following the adoption of ASU 2016-13 Financial Instruments - Credit Losses (Topic 326) ”: Twelve Months Ended December 31, 2020 ($ in millions) Investments Reinsurance Recoverables Receivables Opening value as at January 1, 2020 $ 0.6 $ 3.7 $ 23.0 Movement of the allowance for credit losses during the year (0.4) 0.1 11.0 Closing value as at December 31, 2020 $ 0.2 $ 3.8 $ 34.0 |
Basis of Preparation and Sign_3
Basis of Preparation and Significant Accounting Policies - Additional Information (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020USD ($)period | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | ||
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 | |||
Amortization of right-of-use operating lease assets | $ 11.8 | $ 13.4 | $ 0 | |
Available-for-sale investment, allowance for credit loss, increase (decrease) | (0.4) | |||
Reinsurance Recoverable, Allowance for Credit Loss, Period Increase (Decrease) | 0.1 | |||
Unpaid losses (1) (net of allowance for expected credit losses of $3.8 — $Nil) | $ 3.8 | 3.7 | ||
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% | |||
Accounting Standards Update 2016-13 | ||||
Property, Plant and Equipment [Line Items] | ||||
Available-for-sale investment, allowance for credit loss, increase (decrease) | 0.6 | |||
Accounting Standards Update 2016-13 | Retained earnings | ||||
Property, Plant and Equipment [Line Items] | ||||
Cumulative Effect on Retained Earnings, before Tax | $ (4.3) | [1] | $ 0 | $ 0 |
[1] | The $4.3 million relates to the cumulative effect-adjustment to opening retained earnings as a result of the recognition of current expected credit losses (‘CECL’) in the Company’s available-for-sale investment portfolio and reinsurance recoverables following the adoption of ASU 2016-13. |
Segment Reporting - Additional
Segment Reporting - Additional Information - Narrative (Details) | 12 Months Ended |
Dec. 31, 2020segement | |
Segment Reporting [Abstract] | |
Number of business segments | 2 |
Segment Reporting - Summary of
Segment Reporting - Summary of Gross and Net Written and Earned Premiums, Underwriting Results, Ratios and Reserves for Each of Company's Business Segments (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Segment Reporting [Abstract] | |||||
Non-operating expenses related to impairment charges on lease assets | $ 12.9 | $ 12.3 | |||
Segment Reporting Information [Line Items] | |||||
Gross written premiums | 3,703.6 | 3,442.4 | $ 3,446.9 | ||
Net written premiums | 2,582.9 | 2,427.9 | 2,082 | ||
Gross earned premiums | 3,643.5 | 3,422.4 | 3,534.4 | ||
Net earned premium | 2,532.6 | 2,293.3 | 2,214.7 | ||
Losses and loss adjustment expenses | 1,840.8 | 1,679.7 | 1,573 | ||
Amortization of deferred policy acquisition costs | 465.7 | 412.7 | 371.6 | ||
General and administrative expenses | 308 | 341.5 | 357.7 | ||
Underwriting income (loss) | (81.9) | (140.6) | (87.6) | ||
Corporate Expenses | (70.2) | (54.5) | (56.8) | ||
Non-operating expenses | (32.7) | (125.6) | (77.2) | ||
Net investment income | 154.6 | 197.3 | 198.2 | ||
Realized and unrealized investment gains | 98.5 | 97.1 | 110 | ||
Debt Securities, Gain (Loss) | (27.4) | (10.9) | (174.7) | ||
Realized loss on debt extinguishment | 0 | (5.5) | (8.6) | ||
Change in fair value of loan notes issued by variable interest entities | 0 | (3.1) | (4.4) | ||
Change in fair value of derivatives | (65.1) | (144.2) | (31.8) | ||
Interest Expense, Debt | (33.9) | (20.2) | (25.9) | ||
Net realized and unrealized foreign exchange (losses) | (12.4) | (11.8) | (3.5) | ||
Other income (1) | 49.8 | [1] | 4.9 | 9 | |
Other expenses | 10.8 | 1.7 | 2.7 | ||
(Loss) from operations before income taxes | (31.5) | (218.8) | (156) | ||
Income Tax Expense (Benefit) | (8.6) | (22.9) | 10.2 | ||
Net (loss) | (40.1) | (241.7) | (145.8) | ||
Losses and loss adjustment expenses | 7,165.3 | 6,951.8 | 7,074.2 | $ 6,749.5 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Net, Total | $ 3,970.1 | $ 4,632 | $ 4,996.6 | $ 5,234.3 | |
Ratios | |||||
Loss ratio | 72.70% | 73.20% | 71.00% | ||
Policy acquisition expense ratio | 18.40% | 18.00% | 16.80% | ||
General and administrative expense ratio | 16.20% | 22.70% | 22.20% | ||
Expense ratio | 34.60% | 40.70% | 39.00% | ||
Combined ratio | 107.30% | 113.90% | 110.00% | ||
Non-operating expenses related to severance, retention awards and other non-recurring costs | $ 18.2 | ||||
Non-operating expenses related to impairment charges on lease assets | 12.9 | $ 12.3 | |||
Non-operating expenses related to other non-recurring expenses | 1.6 | ||||
Non-operating expenses related to Merger Agreement | 103.4 | $ 39 | |||
Non-operating expenses related to Effectiveness And Efficiency Program | 22.2 | 37.5 | |||
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 | 1,302.1 | 1,251.1 | 1,182.9 | ||
Net earned premium | 1,292.1 | 1,255.2 | 1,256.4 | ||
Losses and loss adjustment expenses | 2,095.7 | 2,605.9 | 2,843.6 | ||
Liability for Unpaid Claims and Claims Adjustment Expense, Net, Total | $ 2,095.7 | $ 2,605.9 | $ 2,843.6 | ||
Ratios | |||||
Loss ratio | 74.20% | 73.10% | 73.80% | ||
Policy acquisition expense ratio | 19.00% | 21.10% | 20.80% | ||
General and administrative expense ratio | 8.60% | 8.90% | 9.40% | ||
Expense ratio | 27.60% | 30.00% | 30.20% | ||
Combined ratio | 101.80% | 103.10% | 104.00% | ||
Insurance | |||||
Segment Reporting Information [Line Items] | |||||
Net written premiums | $ 1,280.8 | $ 1,176.8 | $ 899.1 | ||
Net earned premium | 1,240.5 | 1,038.1 | 958.3 | ||
Losses and loss adjustment expenses | 1,874.4 | 2,026.1 | 2,153 | ||
Liability for Unpaid Claims and Claims Adjustment Expense, Net, Total | $ 1,874.4 | $ 2,026.1 | $ 2,153 | ||
Ratios | |||||
Loss ratio | 71.10% | 73.40% | 67.40% | ||
Policy acquisition expense ratio | 17.70% | 14.20% | 11.60% | ||
General and administrative expense ratio | 15.90% | 22.10% | 25.00% | ||
Expense ratio | 33.60% | 36.30% | 36.60% | ||
Combined ratio | 104.70% | 109.70% | 104.00% | ||
Operating Segments | Reinsurance | |||||
Segment Reporting Information [Line Items] | |||||
Gross written premiums | $ 1,660.8 | $ 1,485.5 | $ 1,495.7 | ||
Net written premiums | 1,302.1 | 1,251.1 | 1,182.9 | ||
Gross earned premiums | 1,616.4 | 1,494.9 | 1,593.9 | ||
Net earned premium | 1,292.1 | 1,255.2 | 1,256.4 | ||
Losses and loss adjustment expenses | 958.6 | 917.9 | 927 | ||
Amortization of deferred policy acquisition costs | 246 | 264.9 | 260.9 | ||
General and administrative expenses | 110.8 | 111.7 | 118.5 | ||
Underwriting income (loss) | (23.3) | (39.3) | (50) | ||
Operating Segments | Insurance | |||||
Segment Reporting Information [Line Items] | |||||
Gross written premiums | 2,042.8 | 1,956.9 | 1,951.2 | ||
Net written premiums | 1,280.8 | 1,176.8 | 899.1 | ||
Gross earned premiums | 2,027.1 | 1,927.5 | 1,940.5 | ||
Net earned premium | 1,240.5 | 1,038.1 | 958.3 | ||
Losses and loss adjustment expenses | 882.2 | 761.8 | 646 | ||
Amortization of deferred policy acquisition costs | 219.7 | 147.8 | 110.7 | ||
General and administrative expenses | 197.2 | 229.8 | 239.2 | ||
Underwriting income (loss) | $ (58.6) | $ (101.3) | $ (37.6) | ||
[1] | 2020 includes the gain on sale of our renewal rights on our surety insurance book of business to a third party, totaling $43.1 million. |
Segment Reporting - Summary o_2
Segment Reporting - Summary of the Schedule of the Company's gross written premiums based on the location of the insured risk (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Gross written premiums | $ 3,703.6 | $ 3,442.4 | $ 3,446.9 |
Australia/Asia | |||
Segment Reporting Information [Line Items] | |||
Gross written premiums | 259.7 | 215.9 | 175.9 |
Caribbean | |||
Segment Reporting Information [Line Items] | |||
Gross written premiums | 6 | 9.3 | 7.7 |
Europe | |||
Segment Reporting Information [Line Items] | |||
Gross written premiums | 92.5 | 82.8 | 92.6 |
United Kingdom | |||
Segment Reporting Information [Line Items] | |||
Gross written premiums | 374.1 | 295.7 | 290.1 |
United States & Canada | |||
Segment Reporting Information [Line Items] | |||
Gross written premiums | 2,267.5 | 2,003.9 | 1,875.9 |
Worldwide excluding United States | |||
Segment Reporting Information [Line Items] | |||
Gross written premiums | 23.1 | 63 | 70.1 |
Worldwide including United States | |||
Segment Reporting Information [Line Items] | |||
Gross written premiums | 501.2 | 614.9 | 775.8 |
Others | |||
Segment Reporting Information [Line Items] | |||
Gross written premiums | $ 179.5 | $ 156.9 | $ 158.8 |
Investments - Summary of Invest
Investments - Summary of Investment Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | $ 167.3 | $ 209.1 | $ 207.1 |
Investment expenses | (12.7) | (11.8) | (8.9) |
Net investment income | 154.6 | 197.3 | 198.2 |
Fixed income securities | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 106.5 | 128.2 | 134.1 |
Short-term investments | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 0.8 | 2.3 | 1.4 |
Short-term investment, Trading | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 0.5 | 2.5 | 0.4 |
Fixed term deposits (included in cash and cash equivalents) | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 6.4 | 19.5 | 14.2 |
Equity securities — Trading | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 0 | 0 | 2.1 |
Catastrophe bonds — Trading | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 1.4 | 2.3 | 2.8 |
Privately-held investments — Trading | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 20.9 | 3.4 | 0 |
Other investments, at fair value | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | (2) | 8.9 | 2.5 |
Fixed Income Securities | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | $ 32.8 | $ 42 | $ 49.6 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Fixed income securities - gross realized gains | $ 68.8 | $ 14.4 | $ 6.4 |
Fixed income securities - gross realizes (losses) | (1.8) | (7.3) | (11.4) |
Net change in expected credit gains (losses) | 0.4 | 0 | 0 |
Other-than-temporary impairments | 0 | ||
Fixed income securities, trading - gross realized gains | 18.2 | 34.3 | 4.6 |
Fixed income securities, trading, gross realizes (losses) | (3.8) | (2.6) | (25) |
Equity securities - gross realized gains | 0 | 0 | 94.5 |
Equity securities - gross realized (losses) | 0 | 0 | (20.1) |
Catastrophe bonds | 0 | 0.9 | 2.2 |
Net change in gross unrealized gains / (losses) | 0 | 47.2 | (112.1) |
Total net realized and unrealized investment gains/(losses) recorded in the statement of operations | 71.1 | 86.2 | (64.7) |
Change in available for sale net unrealized gain/(losses): | |||
Fixed income securities | 108.5 | 164.9 | (81.3) |
Income tax (expense)/benefit | (6.2) | (13.6) | 4.8 |
Total change in net unrealized gains/(losses), net of taxes recorded in other comprehensive income | 102.3 | 151.3 | (76.5) |
Short-term investments | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Fixed income securities, trading - gross realized gains | 0 | 0 | 0.1 |
Fixed income securities, trading, gross realizes (losses) | 0 | 0 | (4.2) |
Cash and cash equivalents | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Fixed income securities - gross realized gains | 0.5 | 0.1 | 0.3 |
Fixed income securities - gross realizes (losses) | (0.4) | (0.2) | (0.5) |
Fixed income securities, trading - gross realized gains | 0.2 | 0 | 1.5 |
Fixed income securities, trading, gross realizes (losses) | (0.3) | (0.3) | (0.3) |
Privately-held investments | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Fixed income securities, trading - gross realized gains | 0 | 0.2 | 0 |
Fixed income securities, trading, gross realizes (losses) | 0 | (0.2) | 0 |
Net change in gross unrealized gains / (losses) | 20.4 | 0 | 0 |
MVI | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Income/(loss) from equity method investment | (0.4) | (0.1) | (0.2) |
Bene | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Income/(loss) from equity method investment | 0 | 0 | (0.9) |
Digital Re | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Income/(loss) from equity method investment | (0.3) | (0.2) | 0.4 |
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Crop Re | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross realized gain on sale of equity method investment | 8.6 | 0 | 0 |
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Bene | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross realized gain on sale of equity method investment | $ 1.8 | $ 0 | $ 0 |
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, 2020 | Dec. 31, 2019 |
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Short term investment, available for sale(amortized cost - $117.6 and $117.66) | $ 4,348.1 | $ 4,958.2 |
Gross unrealized gains | 222.4 | 116.8 |
Gross unrealized losses | (0.8) | (3.8) |
Allowance for credit loss | (0.2) | |
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | 4,126.7 | 4,845.2 |
Total short-term investments — Available for sale | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Short term investment, available for sale(amortized cost - $117.6 and $117.66) | 87.8 | 117.6 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (0.2) | 0 |
Allowance for credit loss | 0 | |
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | 88 | 117.6 |
Total fixed income securities — Available for sale | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Short term investment, available for sale(amortized cost - $117.6 and $117.66) | 4,435.9 | 5,075.8 |
Gross unrealized gains | 222.4 | 116.8 |
Gross unrealized losses | (1) | (3.8) |
Allowance for credit loss | (0.2) | |
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | 4,214.7 | 4,962.8 |
U.S. government | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Short term investment, available for sale(amortized cost - $117.6 and $117.66) | 1,101.2 | 1,413.1 |
Gross unrealized gains | 60.5 | 31.3 |
Gross unrealized losses | (0.6) | (1.4) |
Allowance for credit loss | 0 | |
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | 1,041.3 | 1,383.2 |
U.S. agency | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Short term investment, available for sale(amortized cost - $117.6 and $117.66) | 34.3 | 39.6 |
Gross unrealized gains | 1.5 | 0.9 |
Gross unrealized losses | 0 | 0 |
Allowance for credit loss | 0 | |
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | 32.8 | 38.7 |
Municipal | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Short term investment, available for sale(amortized cost - $117.6 and $117.66) | 67.1 | 50.7 |
Gross unrealized gains | 5.5 | 2.9 |
Gross unrealized losses | 0 | 0 |
Allowance for credit loss | 0 | |
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | 61.6 | 47.8 |
Corporate | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Short term investment, available for sale(amortized cost - $117.6 and $117.66) | 1,826.2 | 1,959.8 |
Gross unrealized gains | 112 | 54.8 |
Gross unrealized losses | (0.1) | (0.6) |
Allowance for credit loss | (0.2) | |
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | 1,714.5 | 1,905.6 |
Non-U.S. government-backed corporate | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Short term investment, available for sale(amortized cost - $117.6 and $117.66) | 63.4 | 86.5 |
Gross unrealized gains | 0.7 | 0.5 |
Gross unrealized losses | 0 | (0.1) |
Allowance for credit loss | 0 | |
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | 62.7 | 86.1 |
Non-U.S government | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Short term investment, available for sale(amortized cost - $117.6 and $117.66) | 273.1 | 328.8 |
Gross unrealized gains | 4.3 | 4.5 |
Gross unrealized losses | 0 | (0.4) |
Allowance for credit loss | 0 | |
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | 268.8 | 324.7 |
Asset-backed | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Short term investment, available for sale(amortized cost - $117.6 and $117.66) | 2.3 | 0.2 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Allowance for credit loss | 0 | |
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | 2.3 | 0.2 |
Non-agency commercial mortgage-backed securities | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Short term investment, available for sale(amortized cost - $117.6 and $117.66) | 7.4 | 6.5 |
Gross unrealized gains | 0.7 | 0 |
Gross unrealized losses | 0 | (0.2) |
Allowance for credit loss | 0 | |
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | 6.7 | 6.7 |
Agency mortgage-backed | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Short term investment, available for sale(amortized cost - $117.6 and $117.66) | 973.1 | 1,073 |
Gross unrealized gains | 37.2 | 21.9 |
Gross unrealized losses | (0.1) | (1.1) |
Allowance for credit loss | 0 | |
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | $ 936 | $ 1,052.2 |
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, 2020 | Dec. 31, 2019 |
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Debt Securities, Trading, Amortized Cost | $ 844.8 | $ 1,106.6 |
High yield loans | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (0.2) | |
Fair market value, trading | 9.8 | |
Debt Securities, Trading, Amortized Cost | 10 | |
Fixed income securities - trading | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross Unrealized Gains | 16.8 | 24.2 |
Gross Unrealized Losses | (6) | (2) |
Fair market value, trading | 855.6 | 1,128.8 |
Debt Securities, Trading, Amortized Cost | 844.8 | 1,106.6 |
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 | 35.4 | 79.2 |
Debt Securities, Trading, Amortized Cost | 35.4 | 79.2 |
Equity securities — Trading | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross Unrealized Gains | 0 | 0.2 |
Gross Unrealized Losses | 0 | 0 |
Fair market value, trading | 5 | 2.7 |
Debt Securities, Trading, Amortized Cost | 5 | 2.5 |
Catastrophe Bonds | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | (0.8) |
Fair market value, trading | 18.8 | 28.6 |
Debt Securities, Trading, Amortized Cost | 18.8 | 29.4 |
Commercial mortgage loans | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross Unrealized Gains | 0.1 | 0.3 |
Gross Unrealized Losses | (15.1) | 0 |
Fair market value, trading | 163.6 | 156.6 |
Debt Securities, Trading, Amortized Cost | 178.6 | 156.3 |
Middle market loans | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross Unrealized Gains | 0.2 | 0.2 |
Gross Unrealized Losses | (5.5) | (0.2) |
Fair market value, trading | 112.1 | 111.7 |
Debt Securities, Trading, Amortized Cost | 117.4 | 111.7 |
Securities, asset-backed | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (0.1) | 0 |
Fair market value, trading | 18.6 | 8.7 |
Debt Securities, Trading, Amortized Cost | 18.7 | 8.7 |
Privately-held investments | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross Unrealized Gains | 0.3 | 0.7 |
Gross Unrealized Losses | (20.7) | (0.2) |
Fair market value, trading | 299.3 | 279.7 |
Debt Securities, Trading, Amortized Cost | 319.7 | 279.2 |
Total - Trading | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross Unrealized Gains | 17.1 | 24.9 |
Gross Unrealized Losses | (26.7) | (3) |
Fair market value, trading | 1,209.1 | 1,516.3 |
Debt Securities, Trading, Amortized Cost | 1,218.7 | 1,494.4 |
U.S. government | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross Unrealized Gains | 2.7 | 1.8 |
Gross Unrealized Losses | (0.1) | (0.1) |
Fair market value, trading | 120.5 | 185 |
Debt Securities, Trading, Amortized Cost | 117.9 | 183.3 |
Municipal | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross Unrealized Gains | 0.3 | 0.1 |
Gross Unrealized Losses | 0 | 0 |
Fair market value, trading | 3.5 | 3.2 |
Debt Securities, Trading, Amortized Cost | 3.2 | 3.1 |
Corporate | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross Unrealized Gains | 9.1 | 11.6 |
Gross Unrealized Losses | 0 | (0.1) |
Fair market value, trading | 103.5 | 243.2 |
Debt Securities, Trading, Amortized Cost | 94.4 | 231.7 |
Non-U.S government | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross Unrealized Gains | 0.1 | 7.4 |
Gross Unrealized Losses | 0 | (0.1) |
Fair market value, trading | 41.6 | 151.2 |
Debt Securities, Trading, Amortized Cost | 41.5 | 143.9 |
Asset-backed | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross Unrealized Gains | 3.1 | 2.4 |
Gross Unrealized Losses | (5.7) | (1.7) |
Fair market value, trading | 539.1 | 492.4 |
Debt Securities, Trading, Amortized Cost | 541.7 | 491.7 |
Agency mortgage-backed | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross Unrealized Gains | 1.5 | 0.9 |
Gross Unrealized Losses | 0 | 0 |
Fair market value, trading | 37.6 | 53.8 |
Debt Securities, Trading, Amortized Cost | $ 36.1 | $ 52.9 |
Investments Investments - Distr
Investments Investments - Distribution of Commercial Mortgage and Middle Market Loans (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Commercial mortgage loans | ||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||
Fair market value, trading | $ 163.6 | $ 156.6 |
Concentration risk percentage | 100.00% | 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 | $ 112.1 | $ 111.7 |
Concentration risk percentage | 100.00% | 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 | $ 33.9 | $ 21.9 |
Concentration risk percentage | 20.70% | 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 | $ 80.7 | $ 48.3 |
Concentration risk percentage | 49.30% | 30.80% |
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 | $ 20.4 | $ 47.7 |
Concentration risk percentage | 12.50% | 30.40% |
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 | $ 28.6 | $ 17 |
Concentration risk percentage | 17.50% | 10.90% |
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 | $ 0 | $ 15.2 |
Concentration risk percentage | 0.00% | 9.70% |
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 | $ 0 | $ 6.5 |
Concentration risk percentage | 0.00% | 4.20% |
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 | $ 28 | $ 29.5 |
Concentration risk percentage | 24.90% | 26.40% |
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 | $ 27.1 | $ 22.2 |
Concentration risk percentage | 24.20% | 19.80% |
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 | $ 17.3 | $ 18.9 |
Concentration risk percentage | 15.50% | 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 | $ 13.7 | $ 14.2 |
Concentration risk percentage | 12.20% | 12.70% |
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 | $ 7.5 | $ 8.2 |
Concentration risk percentage | 6.70% | 7.40% |
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 | $ 7.3 | $ 7.4 |
Concentration risk percentage | 6.50% | 6.60% |
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 | $ 6.4 |
Concentration risk percentage | 5.70% | 5.70% |
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 | $ 4.8 | $ 4.9 |
Concentration risk percentage | 4.30% | 4.40% |
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 | $ 122.7 | $ 85.5 |
Concentration risk percentage | 75.00% | 54.60% |
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 | $ 91.8 |
Concentration risk percentage | 81.90% | 82.20% |
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 | $ 40.9 | $ 71.1 |
Concentration risk percentage | 25.00% | 45.40% |
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 | $ 20.3 | $ 19.9 |
Concentration risk percentage | 18.10% | 17.80% |
Investments Investments - Loan-
Investments Investments - Loan-to-Value Ratios (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Middle market loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Fair market value, trading | $ 112.1 | $ 111.7 |
Middle market loans | Less than 50 Percent | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Fair market value, trading | 59.8 | 90.6 |
Middle market loans | 50 to 60 Percent | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Fair market value, trading | 11 | 21.1 |
Middle market loans | 61 to 70 Percent | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Fair market value, trading | 6.4 | 0 |
Middle market loans | 80 to 100 Percent | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Fair market value, trading | 17.2 | 0 |
Middle market loans | Greater than 100% | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Fair market value, trading | 17.7 | 0 |
Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Fair market value, trading | 163.6 | 156.6 |
Commercial mortgage loans | Less than 50 Percent | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Fair market value, trading | 14.9 | 0 |
Commercial mortgage loans | 50 to 60 Percent | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Fair market value, trading | 39.3 | 80.5 |
Commercial mortgage loans | 61 to 70 Percent | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Fair market value, trading | 99.5 | 35.5 |
Commercial mortgage loans | 71 to 80 Percent | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Fair market value, trading | $ 9.9 | $ 40.6 |
Investments Investments - Debt
Investments Investments - Debt Service and Fixed Charge Coverage Ratios (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Commercial mortgage loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Fair market value, trading | $ 163.6 | $ 156.6 |
Delinquent amount of loans at end of period | 65.8 | 48.4 |
Commercial mortgage loans | Nonperforming loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Fair market value, trading | 0.7 | |
Commercial mortgage loans | Less than 50 Percent | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Fair market value, trading | 14.9 | 0 |
Commercial mortgage loans | 50 to 60 Percent | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Fair market value, trading | 39.3 | 80.5 |
Commercial mortgage loans | 61 to 70 Percent | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Fair market value, trading | 99.5 | 35.5 |
Commercial mortgage loans | 71 to 80 Percent | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Fair market value, trading | 9.9 | 40.6 |
Middle market loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Fair market value, trading | 112.1 | 111.7 |
Middle market loans | Less than 50 Percent | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Fair market value, trading | 59.8 | 90.6 |
Middle market loans | 50 to 60 Percent | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Fair market value, trading | 11 | 21.1 |
Middle market loans | 61 to 70 Percent | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Fair market value, trading | 6.4 | 0 |
Middle market loans | 80 to 100 Percent | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Fair market value, trading | 17.2 | 0 |
Greater than 1.20x | Commercial mortgage loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Fair market value, trading | 82.2 | 94.6 |
Greater than 1.20x | Middle market loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Fair market value, trading | 73.6 | 68.4 |
1.00 - 1.20x | Commercial mortgage loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Fair market value, trading | 14.9 | 0 |
1.00 - 1.20x | Middle market loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Fair market value, trading | 0 | 25.5 |
Less than 1.00x | Commercial mortgage loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Fair market value, trading | 0 | 13.7 |
Less than 1.00x | Middle market loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Fair market value, trading | 38.5 | 17.8 |
Debt Service Coverage Ratio, excluding footnote values | Commercial mortgage loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Fair market value, trading | $ 97.1 | $ 108.3 |
Investments - Other Investments
Investments - Other Investments (Details) - USD ($) $ in Millions | Dec. 14, 2020 | Jul. 26, 2016 | Jan. 31, 2015 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Equity Method Investment, Aggregate Cost [Roll Forward] | |||||||
Opening undistributed value of investment, beginning balance | $ 67.9 | $ 67.1 | |||||
Investment in the period | 0.5 | 1.1 | |||||
Unrealized gain/(loss) for the period | (0.7) | (0.3) | |||||
Equity method investment, realized gain (loss) on disposal | 10.4 | ||||||
Proceeds from Sale of Equity Method Investments | (77.2) | ||||||
Closing value of investment, ending balance | 0.9 | 67.9 | $ 67.1 | ||||
MVI | |||||||
Equity Method Investment, Aggregate Cost [Roll Forward] | |||||||
Opening undistributed value of investment, beginning balance | 0.4 | 0.5 | |||||
Investment in the period | $ 0.8 | 0 | 0 | 0.2 | $ 0.1 | ||
Unrealized gain/(loss) for the period | (0.4) | (0.1) | |||||
Equity method investment, realized gain (loss) on disposal | 0 | ||||||
Proceeds from Sale of Equity Method Investments | 0 | ||||||
Closing value of investment, ending balance | 0 | 0.4 | 0.5 | ||||
Bene | |||||||
Equity Method Investment, Aggregate Cost [Roll Forward] | |||||||
Opening undistributed value of investment, beginning balance | 4.3 | 3.2 | |||||
Investment in the period | $ 3.3 | ||||||
Equity method investment, cash payment | 0 | 1.1 | 1.2 | ||||
Unrealized gain/(loss) for the period | 0 | 0 | |||||
Equity method investment, realized gain (loss) on disposal | 1.8 | ||||||
Proceeds from Sale of Equity Method Investments | (6.1) | ||||||
Closing value of investment, ending balance | 0 | 4.3 | 3.2 | ||||
Digital Re | |||||||
Equity Method Investment, Aggregate Cost [Roll Forward] | |||||||
Opening undistributed value of investment, beginning balance | 0.7 | 0.9 | |||||
Investment in the period | 0 | 0 | |||||
Unrealized gain/(loss) for the period | (0.3) | (0.2) | |||||
Equity method investment, realized gain (loss) on disposal | 0 | ||||||
Proceeds from Sale of Equity Method Investments | 0 | ||||||
Closing value of investment, ending balance | 0.4 | 0.7 | 0.9 | ||||
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 | |||||
Unrealized gain/(loss) for the period | 0 | 0 | |||||
Equity method investment, realized gain (loss) on disposal | $ 71.1 | 8.6 | |||||
Proceeds from Sale of Equity Method Investments | (71.1) | ||||||
Closing value of investment, ending balance | 0 | 62.5 | 62.5 | ||||
Multi-Line Insurer | |||||||
Equity Method Investment, Aggregate Cost [Roll Forward] | |||||||
Opening undistributed value of investment, beginning balance | 0 | 0 | |||||
Investment in the period | 0.5 | 0 | |||||
Unrealized gain/(loss) for the period | 0 | 0 | |||||
Equity method investment, realized gain (loss) on disposal | 0 | ||||||
Proceeds from Sale of Equity Method Investments | 0 | ||||||
Closing value of investment, ending balance | $ 0.5 | $ 0 | $ 0 |
Investments - Summary of Fixed
Investments - Summary of Fixed Maturities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Securities, Available-for-sale [Line Items] | ||
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | $ 4,126.7 | $ 4,845.2 |
Available for sale investments in fixed income maturities, Fair Market Value | 4,348.1 | 4,958.2 |
Total fixed income securities — Available for sale | ||
Debt Securities, Available-for-sale [Line Items] | ||
Due one year or less, Cost or Amortized Cost | 498.6 | 572.7 |
Due after one year through five years, Cost or Amortized Cost | 1,833.6 | 2,230.3 |
Due after five years through ten years, Cost or Amortized Cost | 741.9 | 864.1 |
Due after ten years, Cost or Amortized Cost | 107.6 | 119 |
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | 3,181.7 | 3,786.1 |
Due one year or less, Fair Market Value | $ 501.3 | $ 574.6 |
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 | $ 1,925.9 | $ 2,269.3 |
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 | $ 806.5 | $ 896.3 |
Available For Sale Securities Debt Maturities After Five Through Ten Years Average Ratings By Maturity | AA- | AA- |
Due after ten years, Fair Market Value | $ 131.6 | $ 138.3 |
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 | $ 3,365.3 | $ 3,878.5 |
Agency mortgage-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | 936 | 1,052.2 |
Cost or Amortized Cost | 936 | 1,052.2 |
Available for sale investments in fixed income maturities, Fair Market Value | $ 973.1 | $ 1,073 |
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 | $ 6.7 |
Cost or Amortized Cost | 6.7 | 6.7 |
Available for sale investments in fixed income maturities, Fair Market Value | $ 7.4 | $ 6.5 |
Available For Sale Securities Average Ratings By Maturity | AA+ | AA+ |
Asset-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | $ 2.3 | $ 0.2 |
Cost or Amortized Cost | 2.3 | 0.2 |
Available for sale investments in fixed income maturities, Fair Market Value | $ 2.3 | $ 0.2 |
Available For Sale Securities Average Ratings By Maturity | AAA | AAA |
Fixed maturities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | $ 4,126.7 | $ 4,845.2 |
Available for sale investments in fixed income maturities, Fair Market Value | $ 4,348.1 | $ 4,958.2 |
Investments - Aggregate Fair Va
Investments - Aggregate Fair Value and Gross Unrealized Loss by Type of Security (Details) $ in Millions | Dec. 31, 2020USD ($)securitySecurity | Dec. 31, 2019USD ($)securitySecurity |
Debt Securities, Available-for-sale [Line Items] | ||
0-12 months, Fair Market Value | $ 147.8 | $ 582.5 |
0-12 months, Gross Unrealized Losses | (0.8) | (2.6) |
Over 12 months, Fair Market Value | 2.1 | 250.5 |
Over 12 months, Gross Unrealized Losses | (0.2) | (1.2) |
Total, Fair Market Value | 149.9 | 833 |
Total, Gross Unrealized Losses | $ (1) | $ (3.8) |
Number of Securities | security | 64 | 260 |
Fixed income securities — Available for sale | ||
Debt Securities, Available-for-sale [Line Items] | ||
0-12 months, Fair Market Value | $ 139.1 | $ 553 |
0-12 months, Gross Unrealized Losses | (0.8) | (2.6) |
Over 12 months, Fair Market Value | 2.1 | 250.5 |
Over 12 months, Gross Unrealized Losses | 0 | (1.2) |
Total, Fair Market Value | 141.2 | 803.5 |
Total, Gross Unrealized Losses | $ (0.8) | $ (3.8) |
Number of Securities | Security | 49 | 255 |
Short-term investments | ||
Debt Securities, Available-for-sale [Line Items] | ||
0-12 months, Fair Market Value | $ 8.7 | $ 29.5 |
0-12 months, Gross Unrealized Losses | 0 | 0 |
Over 12 months, Fair Market Value | 0 | 0 |
Over 12 months, Gross Unrealized Losses | (0.2) | 0 |
Total, Fair Market Value | 8.7 | 29.5 |
Total, Gross Unrealized Losses | $ (0.2) | $ 0 |
Number of Securities | 15 | 5 |
U.S. government | ||
Debt Securities, Available-for-sale [Line Items] | ||
0-12 months, Fair Market Value | $ 58.7 | $ 142 |
0-12 months, Gross Unrealized Losses | (0.6) | (1) |
Over 12 months, Fair Market Value | 0 | 138.2 |
Over 12 months, Gross Unrealized Losses | 0 | (0.4) |
Total, Fair Market Value | 58.7 | 280.2 |
Total, Gross Unrealized Losses | $ (0.6) | $ (1.4) |
Number of Securities | security | 10 | 49 |
U.S. agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
0-12 months, Fair Market Value | $ 3 | |
0-12 months, Gross Unrealized Losses | 0 | |
Over 12 months, Fair Market Value | 6 | |
Over 12 months, Gross Unrealized Losses | 0 | |
Total, Fair Market Value | 9 | |
Total, Gross Unrealized Losses | $ 0 | |
Number of Securities | security | 2 | |
Municipal | ||
Debt Securities, Available-for-sale [Line Items] | ||
0-12 months, Fair Market Value | $ 3.7 | |
0-12 months, Gross Unrealized Losses | 0 | |
Over 12 months, Fair Market Value | 0 | |
Over 12 months, Gross Unrealized Losses | 0 | |
Total, Fair Market Value | 3.7 | |
Total, Gross Unrealized Losses | $ 0 | |
Number of Securities | security | 2 | |
Corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
0-12 months, Fair Market Value | $ 39.6 | $ 167.7 |
0-12 months, Gross Unrealized Losses | (0.1) | (0.6) |
Over 12 months, Fair Market Value | 0 | 37.1 |
Over 12 months, Gross Unrealized Losses | 0 | 0 |
Total, Fair Market Value | 39.6 | 204.8 |
Total, Gross Unrealized Losses | $ (0.1) | $ (0.6) |
Number of Securities | security | 16 | 91 |
Non-U.S. government-backed corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
0-12 months, Fair Market Value | $ 31.8 | |
0-12 months, Gross Unrealized Losses | (0.1) | |
Over 12 months, Fair Market Value | 0 | |
Over 12 months, Gross Unrealized Losses | 0 | |
Total, Fair Market Value | 31.8 | |
Total, Gross Unrealized Losses | $ (0.1) | |
Number of Securities | security | 9 | |
Non-U.S government | ||
Debt Securities, Available-for-sale [Line Items] | ||
0-12 months, Fair Market Value | $ 7.5 | $ 48.6 |
0-12 months, Gross Unrealized Losses | 0 | (0.4) |
Over 12 months, Fair Market Value | 0 | 0.6 |
Over 12 months, Gross Unrealized Losses | 0 | 0 |
Total, Fair Market Value | 7.5 | 49.2 |
Total, Gross Unrealized Losses | $ 0 | $ (0.4) |
Number of Securities | security | 4 | 20 |
Asset-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
0-12 months, Fair Market Value | $ 0 | |
0-12 months, Gross Unrealized Losses | 0 | |
Over 12 months, Fair Market Value | 0.2 | |
Over 12 months, Gross Unrealized Losses | 0 | |
Total, Fair Market Value | 0.2 | |
Total, Gross Unrealized Losses | $ 0 | |
Number of Securities | security | 1 | |
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 | $ 33.3 | $ 149.7 |
0-12 months, Gross Unrealized Losses | (0.1) | (0.3) |
Over 12 months, Fair Market Value | 2.1 | 68.4 |
Over 12 months, Gross Unrealized Losses | 0 | (0.8) |
Total, Fair Market Value | 35.4 | 218.1 |
Total, Gross Unrealized Losses | $ (0.1) | $ (1.1) |
Number of Securities | security | 19 | 80 |
Investments - Additional Inform
Investments - Additional Information (Narrative) (Details) - USD ($) $ in Millions | Dec. 14, 2020 | Jul. 26, 2016 | Jan. 31, 2015 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 27, 2019 | Dec. 23, 2019 | Sep. 19, 2018 | May 01, 2018 | Dec. 18, 2017 | Jan. 01, 2017 |
Gain (Loss) on Securities [Line Items] | |||||||||||||
Catastrophe bonds, trading, cost | $ 18.8 | $ 28.6 | |||||||||||
Investment in the period | 0.5 | 1.1 | |||||||||||
Investment in Multiline reinsurer | 77.2 | ||||||||||||
Equity method investment, aggregate cost | 0.9 | 67.9 | $ 67.1 | ||||||||||
Equity method investment, realized gain (loss) on disposal | 10.4 | ||||||||||||
Other investments | 109.4 | 111.4 | |||||||||||
Investment funded | 0 | ||||||||||||
Other-than-temporary impairment charge | 0 | ||||||||||||
Available-for-sale investment, allowance for credit loss, increase (decrease) | $ (0.4) | ||||||||||||
BBB Emerging Market Debt | |||||||||||||
Gain (Loss) on Securities [Line Items] | |||||||||||||
Percentage of investment | 0.00% | ||||||||||||
Real estate fund | |||||||||||||
Gain (Loss) on Securities [Line Items] | |||||||||||||
Percentage of investment | 1.50% | ||||||||||||
Real estate fund | Fair Value, Recurring [Member] | |||||||||||||
Gain (Loss) on Securities [Line Items] | |||||||||||||
Investments, fair value | $ 109.4 | $ 111.4 | |||||||||||
MML and CML | |||||||||||||
Gain (Loss) on Securities [Line Items] | |||||||||||||
Percentage of investment | 3.60% | ||||||||||||
Managed portfolio | |||||||||||||
Gain (Loss) on Securities [Line Items] | |||||||||||||
Percentage of investment | 5.10% | 8.20% | |||||||||||
Commercial mortgage loans | |||||||||||||
Gain (Loss) on Securities [Line Items] | |||||||||||||
Fair market value, trading | $ 163.6 | $ 156.6 | |||||||||||
Middle market loans | |||||||||||||
Gain (Loss) on Securities [Line Items] | |||||||||||||
Fair market value, trading | 112.1 | 111.7 | |||||||||||
Privately-held investments | |||||||||||||
Gain (Loss) on Securities [Line Items] | |||||||||||||
Fair market value, trading | 299.3 | 279.7 | |||||||||||
Bene | |||||||||||||
Gain (Loss) on Securities [Line Items] | |||||||||||||
Investment in the period | $ 3.3 | ||||||||||||
Gross realized and unrealized gains (loss) | 0 | 0 | (0.9) | ||||||||||
Investment in Multiline reinsurer | 6.1 | ||||||||||||
Equity method investment, ownership percentage | 20.00% | ||||||||||||
Equity method investment, aggregate cost | 0 | 4.3 | 3.2 | ||||||||||
Equity method investment, cash payment | 0 | 1.1 | 1.2 | ||||||||||
Equity method investment, realized gain (loss) on disposal | 1.8 | ||||||||||||
MVI | |||||||||||||
Gain (Loss) on Securities [Line Items] | |||||||||||||
Investment in the period | $ 0.8 | 0 | 0 | 0.2 | $ 0.1 | ||||||||
Gross realized and unrealized gains (loss) | (0.4) | (0.1) | (0.2) | ||||||||||
Investment in Multiline reinsurer | 0 | ||||||||||||
Equity method investment, aggregate cost | 0 | 0.4 | 0.5 | ||||||||||
Equity method investment, realized gain (loss) on disposal | 0 | ||||||||||||
Digital Re | |||||||||||||
Gain (Loss) on Securities [Line Items] | |||||||||||||
Investment in the period | 0 | 0 | |||||||||||
Gross realized and unrealized gains (loss) | (0.3) | (0.2) | 0.4 | ||||||||||
Investment in Multiline reinsurer | 0 | ||||||||||||
Equity method investment, ownership percentage | 49.00% | ||||||||||||
Equity method investment, aggregate cost | 0.4 | 0.7 | 0.9 | $ 2.3 | |||||||||
Equity method investment, realized gain (loss) on disposal | 0 | ||||||||||||
Crop Re | |||||||||||||
Gain (Loss) on Securities [Line Items] | |||||||||||||
Investment in the period | 0 | 0 | |||||||||||
Investment in Multiline reinsurer | 71.1 | ||||||||||||
Equity method investment, ownership percentage | 23.20% | 23.20% | |||||||||||
Equity method investment, aggregate cost | 0 | 62.5 | 62.5 | ||||||||||
Equity method investment, realized gain (loss) on disposal | $ 71.1 | 8.6 | |||||||||||
Settlement for crop years | 14.5 | ||||||||||||
Settlement re commutation agreement | $ 2.2 | ||||||||||||
Multi-Line Insurer | |||||||||||||
Gain (Loss) on Securities [Line Items] | |||||||||||||
Investment in the period | 0.5 | 0 | |||||||||||
Investment in Multiline reinsurer | 0 | ||||||||||||
Equity method investment, aggregate cost | 0.5 | 0 | 0 | ||||||||||
Equity method investment, realized gain (loss) on disposal | 0 | ||||||||||||
Other investments | 0.3 | $ 0.2 | $ 5 | ||||||||||
Limited Partner | Real estate fund | |||||||||||||
Gain (Loss) on Securities [Line Items] | |||||||||||||
Restricted assets | $ 100 | ||||||||||||
Other investments | $ 109.4 | $ 111.4 | $ 13.8 | $ 86.2 |
Variable Interest Entities Summ
Variable Interest Entities Summary of Silverton Loan Notes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Movement in Silverton Loan Notes [Roll Forward] | |||
Opening balance | $ 0 | $ 5.7 | |
Total change in fair value for the period | 0 | (3.1) | $ (4.4) |
Total distributed in the period | 0 | (9.6) | |
Closing balance as at December 31, 2020 | 0 | 0 | 5.7 |
Loan notes (long-term liabilities) | 0 | 0 | |
Accrued expenses (current liabilities) | 0 | 0 | |
Third party | |||
Movement in Silverton Loan Notes [Roll Forward] | |||
Opening balance | 0 | 4.6 | |
Total change in fair value for the period | 0 | 3.1 | |
Total distributed in the period | 0 | (7.7) | |
Closing balance as at December 31, 2020 | 0 | 0 | 4.6 |
Loan notes (long-term liabilities) | 0 | 0 | |
Accrued expenses (current liabilities) | 0 | 0 | |
Aspen Holdings | |||
Movement in Silverton Loan Notes [Roll Forward] | |||
Opening balance | 0 | 1.1 | |
Total change in fair value for the period | 0 | 0.8 | |
Total distributed in the period | 0 | (1.9) | |
Closing balance as at December 31, 2020 | 0 | 0 | $ 1.1 |
Loan notes (long-term liabilities) | 0 | 0 | |
Accrued expenses (current liabilities) | 0 | 0 | |
Aspen Holdings | Third party | |||
Movement in Silverton Loan Notes [Roll Forward] | |||
Total change in fair value for the period | $ 0 | $ 3.9 |
Variable Interest Entities - Na
Variable Interest Entities - Narrative (Details) - Investment | Dec. 31, 2020 | Dec. 31, 2019 |
Payables and Accruals [Abstract] | ||
Number of investments in VIEs | 1 | 1 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets Measured on Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Catastrophe Bonds, Fair Value Disclosure | $ 18.8 | $ 29.4 |
Derivatives at fair value | 26.8 | 12.9 |
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 | |
Total | 5,767.6 | 6,629.2 |
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 | 26.8 | 12.9 |
Recurring | Derivatives at fair value | Interest rate swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives at fair value | (78.3) | |
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 | (13.6) | (8.9) |
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 | 2.3 | |
Recurring | Fixed income securities — Available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 4,348.1 | 4,958.2 |
Recurring | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 87.8 | 117.6 |
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 | 855.6 | 1,128.8 |
Privately-held Investments, at fair value | 299.3 | 279.7 |
Catastrophe Bonds, Fair Value Disclosure | 18.8 | 28.6 |
Recurring | Short-term investments trading at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 35.4 | 79.2 |
Recurring | Real estate fund | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 109.4 | 111.4 |
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 | |
Total | 1,563.5 | 2,033.5 |
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 swap | ||
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 | 1,285.4 | 1,612.9 |
Recurring | Level 1 | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 81 | 108.1 |
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 | 161.7 | 233.3 |
Privately-held Investments, at fair value | 0 | 0 |
Catastrophe Bonds, Fair Value Disclosure | 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 | 35.4 | 79.2 |
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 | |
Total | 3,795.4 | 4,204.6 |
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 | 26.8 | 12.9 |
Recurring | Level 2 | Derivatives at fair value | Interest rate swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives at fair value | (78.3) | |
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 | (13.6) | (8.9) |
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 | 2.3 | |
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 | 3,062.7 | 3,345.3 |
Recurring | Level 2 | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 6.8 | 9.5 |
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 | 693.9 | 895.5 |
Privately-held Investments, at fair value | 0 | 0 |
Catastrophe Bonds, Fair Value Disclosure | 18.8 | 28.6 |
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 | 0 |
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 | |
Total | 299.3 | 279.7 |
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 swap | ||
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 | 299.3 | 279.7 |
Catastrophe Bonds, Fair Value Disclosure | 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 | 1,101.2 | 1,413.1 |
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 | 120.5 | 185 |
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 | 1,101.2 | 1,413.1 |
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 | 120.5 | 185 |
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 | 34.3 | 39.6 |
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 | 34.3 | 39.6 |
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 | 67.1 | 50.7 |
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 | 3.5 | 3.2 |
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 | 67.1 | 50.7 |
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 | 3.5 | 3.2 |
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 | 273.1 | 1,959.8 |
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 | 103.5 | 243.2 |
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 | 184.2 | 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 | 88.9 | 1,959.8 |
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 | 103.5 | 243.2 |
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 | 63.4 | 86.5 |
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 2 | Total fixed income securities — Available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 63.4 | 86.5 |
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 | Recurring | Total fixed income securities — Available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 7.4 | 328.8 |
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 | 41.6 | 151.2 |
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 | 0 | 199.8 |
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 | 41.2 | 48.3 |
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 | 7.4 | 129 |
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 | 0.4 | 102.9 |
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 | 973.1 | 0.2 |
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 | 539.1 | 492.4 |
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 | 973.1 | 0.2 |
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 | 539.1 | 492.4 |
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 |
Non-agency commercial mortgage-backed securities | Recurring | Total fixed income securities — Available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 6.5 | |
Non-agency commercial mortgage-backed securities | 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 | |
Non-agency commercial mortgage-backed securities | 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 | 6.5 | |
Non-agency commercial mortgage-backed securities | 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 | |
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 | 1,826.2 | 1,073 |
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 | 37.6 | 53.8 |
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 | 1,826.2 | 1,073 |
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 | 37.6 | 53.8 |
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 |
High yield loans | 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 | 9.8 | |
High yield loans | 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 | |
High yield loans | 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 | 9.8 | |
High yield loans | 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 |
Fair Value Measurements - Recon
Fair Value Measurements - Reconciliation of Level 3 Inputs (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2020 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Amount classified within accrued expenses and other payables | $ 0 | $ 0 |
Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt Instrument, Accrued Interest and Payables, Fair Value Disclosure | 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 | 0 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at the beginning of the period | 4.6 | |
Balance at the end of the period | 0 | |
Silverton 2016 | Recurring | Level 3 | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Distributed to third parties | (3.1) | |
Third party | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Amount classified within accrued expenses and other payables | $ 0 | $ 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, 2020 | Dec. 31, 2019 | |
Commercial mortgage loans | ||
Fair Value, Assets Measured on Recurring Basis, Calculation [Roll Forward] | ||
Balance at the beginning of the year | $ 156.6 | |
Balance at the end of the year | 163.6 | $ 156.6 |
Middle market loans | ||
Fair Value, Assets Measured on Recurring Basis, Calculation [Roll Forward] | ||
Balance at the beginning of the year | 111.7 | |
Balance at the end of the year | 112.1 | 111.7 |
Equity securities | ||
Fair Value, Assets Measured on Recurring Basis, Calculation [Roll Forward] | ||
Balance at the beginning of the year | 2.7 | |
Balance at the end of the year | 5 | 2.7 |
Recurring | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Change in unrealized investment gains (losses) | (5.2) | 0.3 |
Fair Value, Assets Measured on Recurring Basis, Calculation [Roll Forward] | ||
Balance at the beginning of the year | 279.5 | |
Balance at the end of the year | 299.3 | 279.5 |
Balance at the beginning of the period | 0 | 4.6 |
Balance at the end of the period | 0 | |
Recurring | Commercial mortgage loans | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Change in unrealized investment gains (losses) | 0.1 | 0.3 |
Fair Value, Assets Measured on Recurring Basis, Calculation [Roll Forward] | ||
Balance at the beginning of the year | 156.4 | |
Balance at the end of the year | 163.6 | 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) | (5.3) | 0 |
Fair Value, Assets Measured on Recurring Basis, Calculation [Roll Forward] | ||
Balance at the beginning of the year | 111.7 | |
Balance at the end of the year | 112.1 | 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 | 0 |
Fair Value, Assets Measured on Recurring Basis, Calculation [Roll Forward] | ||
Balance at the beginning of the year | 8.7 | |
Balance at the end of the year | 18.6 | 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 | 0 |
Fair Value, Assets Measured on Recurring Basis, Calculation [Roll Forward] | ||
Balance at the beginning of the year | 2.7 | |
Balance at the end of the year | 5 | 2.7 |
Assets | Recurring | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Calculation [Roll Forward] | ||
Balance at the beginning of the year | 279.5 | 0 |
Purchases and issuances | 93 | 301.5 |
Settlements and sales | (64.3) | (23.9) |
Increase (decrease) in fair value included in net income | (17.2) | 1.8 |
Balance at the end of the year | 279.5 | |
Transfers in/(out) | 8.3 | 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 | 156.4 | 0 |
Purchases and issuances | 79.7 | 174.7 |
Settlements and sales | (59.4) | (20.1) |
Increase (decrease) in fair value included in net income | (13.1) | 1.7 |
Balance at the end of the year | 156.4 | |
Transfers in/(out) | 0 | 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 | 111.7 | 0 |
Purchases and issuances | 0.9 | 115.5 |
Settlements and sales | (4.8) | (3.8) |
Increase (decrease) in fair value included in net income | (4) | 0.1 |
Balance at the end of the year | 111.7 | |
Transfers in/(out) | 8.3 | 0 |
Assets | Recurring | Asset-backed | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Calculation [Roll Forward] | ||
Balance at the beginning of the year | 8.7 | 0 |
Purchases and issuances | 10 | 8.7 |
Settlements and sales | 0 | 0 |
Increase (decrease) in fair value included in net income | (0.1) | 0 |
Balance at the end of the year | 8.7 | |
Transfers in/(out) | 0 | 0 |
Assets | Recurring | Equity securities | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Calculation [Roll Forward] | ||
Balance at the beginning of the year | 2.7 | 0 |
Purchases and issuances | 2.4 | 2.7 |
Settlements and sales | (0.1) | 0 |
Increase (decrease) in fair value included in net income | 0 | 0 |
Balance at the end of the year | 2.7 | |
Transfers in/(out) | 0 | 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 | 0 | |
Liability purchases | 0 | 0 |
Liability sales | 0 | (7.7) |
Liability, increase (decrease) in fv included in net income | 0 | 3.1 |
Balance at the end of the period | 0 | 0 |
Liability transfers | 0 | 0 |
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 | 0 | 4.6 |
Liability purchases | 0 | 0 |
Liability sales | 0 | (7.7) |
Liability, increase (decrease) in fv included in net income | 0 | 3.1 |
Balance at the end of the period | 0 | 0 |
Liability transfers | $ 0 | $ 0 |
Fair Value Measurements - Input
Fair Value Measurements - Inputs Used (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gross written premiums | $ 3,703.6 | $ 3,442.4 | $ 3,446.9 |
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 | ||
Recurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loan Notes, fair value | 0 | $ 4.6 | |
Loan notes issued by variable interest entities, at fair value (included within accrued expenses and other payables) | 0 | ||
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 | 299.3 | 279.7 | |
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 | $ 299.3 | $ 279.7 | |
Discounted cash flow | Commercial mortgage loans | Minimum | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Measurement inputs | 0.060 | ||
Discounted cash flow | Commercial mortgage loans | Maximum | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Measurement inputs | 0.090 | ||
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 | 0.073 | ||
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 | $ 150.8 | ||
Discounted cash flow | Middle market loans | Minimum | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Measurement inputs | 0.063 | ||
Discounted cash flow | Middle market loans | Maximum | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Measurement inputs | 0.165 | ||
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 | 0.087 | ||
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 | $ 106.5 | ||
Discounted cash flow | Asset-backed | Minimum | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Measurement inputs | 0.057 | ||
Discounted cash flow | Asset-backed | Maximum | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Measurement inputs | 0.069 | ||
Discounted cash flow | Asset-backed | Weighted Average | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Measurement inputs | 0.062 | ||
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 | $ 18.6 | ||
Discounted cash flow | Equity securities — Trading | Minimum | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Measurement inputs | 0.093 | ||
Discounted cash flow | Equity securities — Trading | Weighted Average | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Measurement inputs | 0.093 | ||
Discounted cash flow | Equity securities — Trading | Recurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Privately-held Investments, at fair value | $ 4.3 | ||
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 | 12.1 | ||
Transaction value | Equity securities — Trading | Recurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Privately-held Investments, at fair value | 0.7 | ||
Liquidation method | 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 | 0.7 | ||
Recovery approach | 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 | $ 5.6 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information - Narrative (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020USD ($)quotesPerInvestment | Dec. 31, 2019USD ($)quotesPerInvestment | Sep. 30, 2019USD ($) | Mar. 31, 2019USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Quotes per fixed income investment | quotesPerInvestment | 2.6 | 2.4 | ||
Liabilities Under Derivative Contracts | Interest rate swap | Not Designated as Hedging Instrument | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative, Notional Amount | $ 0 | $ 1,800 | $ 1,800 | $ 3,138 |
Recurring | Level 3 | Silverton 2016 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Level 3 liabilities settled | 3.1 | |||
Assets | Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Transfers in/(out) | 8.3 | 0 | ||
Settlements and sales | (64.3) | (23.9) | ||
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 | 299.3 | 279.7 | ||
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 | $ 299.3 | $ 279.7 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Premiums written: | |||
Direct | $ 2,042.8 | $ 1,956.9 | $ 1,951.2 |
Assumed | 1,660.8 | 1,485.5 | 1,495.7 |
Ceded | (1,120.7) | (1,014.5) | (1,364.9) |
Net premiums written | 2,582.9 | 2,427.9 | 2,082 |
Premiums earned: | |||
Direct | 2,027.1 | 1,927.5 | 1,940.5 |
Assumed | 1,616.4 | 1,494.9 | 1,593.9 |
Ceded | (1,110.9) | (1,129.1) | (1,319.7) |
Net premiums earned | 2,532.6 | 2,293.3 | 2,214.7 |
Insurance losses and loss adjustment expenses: | |||
Direct | 1,479.6 | 1,415.5 | 1,458.9 |
Assumed | 1,134.5 | 1,147.9 | 1,196.1 |
Ceded | (773.3) | (883.7) | (1,082) |
Net insurance losses and loss adjustment expenses | $ 1,840.8 | $ 1,679.7 | $ 1,573 |
Reinsurance - Additional Inform
Reinsurance - Additional Information (Details) $ in Millions | Mar. 02, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||||
Plus reinsurance recoverable on unpaid losses at the end of the year | $ 3,195.2 | $ 2,319.8 | $ 2,077.6 | ||
Plus component of annual investment management fee | 0.25 | ||||
Reinsurance Recoverable, Allowance for Credit Loss | $ 3.8 | $ 3.7 | |||
Reinsurance Recoverable, Allowance for Credit Loss, Period Increase (Decrease) | $ 0.1 | ||||
Enstar | |||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||||
Plus reinsurance recoverable on unpaid losses at the end of the year | [1] | $ 770 | |||
Second coverage | 250 | ||||
Maximum | Enstar | |||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||||
Reinsurance retention policy, amount retained | 4,575 | ||||
Reinsurance retention policy, second amount retained | 5,065 | ||||
Minimum | Enstar | |||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||||
Reinsurance retention policy, amount retained | 3,805 | ||||
Reinsurance retention policy, second amount retained | $ 4,815 | ||||
[1] | Included within reinsurance recoverable for unpaid losses are $770.0 million of recoveries associated with the purchase of an adverse development cover. |
Derivative Contracts - Fair Val
Derivative Contracts - Fair Value of Derivative Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Mar. 31, 2019 |
Not Designated as Hedging Instrument | Foreign exchange contracts | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative, Notional Amount | $ 1,402.3 | $ 1,696.3 | ||
Cash collateral | 3.4 | 2.9 | ||
Not Designated as Hedging Instrument | Interest rate swap | ||||
Derivatives, Fair Value [Line Items] | ||||
Initial and variation margin, posted | 0 | 111.1 | ||
Not Designated as Hedging Instrument | Derivatives at Fair Value | Foreign exchange contracts | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair Value | 21.5 | 8.1 | ||
Derivative, Notional Amount | 803.1 | 687.3 | ||
Not Designated as Hedging Instrument | Liabilities Under Derivative Contracts | Foreign exchange contracts | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair Value | (13.6) | (8.9) | ||
Derivative, Notional Amount | 599.2 | 1,009 | ||
Not Designated as Hedging Instrument | Liabilities Under Derivative Contracts | Interest rate swap | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair Value | 0 | (78.3) | ||
Derivative, Notional Amount | 0 | 1,800 | $ 1,800 | $ 3,138 |
Designated as Hedging Instrument | Derivatives at Fair Value | Foreign exchange contracts | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair Value | 5.3 | 4.8 | ||
Derivative, Notional Amount | $ 90.6 | $ 85.5 |
Derivative Contracts - Gain_(Lo
Derivative Contracts - Gain/(Loss) Recognized in Income on Derivative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
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 | $ 16 | $ (14) |
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 | (81.1) | (130.2) |
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 | (3.2) | 0.9 |
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 | $ 0.3 | $ 4.8 |
Derivative Contracts - Addition
Derivative Contracts - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Mar. 31, 2019 | |
Foreign exchange contracts | Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Purchase of US and foreign exchange | $ 1,402.3 | $ 1,696.3 | ||
Collateral provided to counterparties as security for the Company's net liability position | 3.4 | 2.9 | ||
Foreign exchange contracts | Not Designated as Hedging Instrument | Derivative At Fair Value | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Purchase of US and foreign exchange | 803.1 | 687.3 | ||
Foreign exchange contracts | Not Designated as Hedging Instrument | Liabilities Under Derivative Contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Purchase of US and foreign exchange | 599.2 | 1,009 | ||
Foreign exchange contracts | Designated as Hedging Instrument | Derivative At Fair Value | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Purchase of US and foreign exchange | 90.6 | 85.5 | ||
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 | 0.3 | 4.8 | ||
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 | (3.2) | 0.9 | ||
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 | 16 | (14) | ||
Interest rate swap | Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Initial and variation margin, posted | 0 | 111.1 | ||
Interest rate swap | Not Designated as Hedging Instrument | Liabilities Under Derivative Contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Purchase of US and foreign exchange | 0 | 1,800 | $ 1,800 | $ 3,138 |
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 | $ (81.1) | $ (130.2) |
Deferred Policy Acquisition C_3
Deferred Policy Acquisition Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Balance at the beginning of the period | $ 291.1 | $ 248.5 | |
Acquisition costs deferred | 481.2 | 455.3 | |
Amortization of deferred policy acquisition costs | (465.7) | (412.7) | $ (371.6) |
Balance at the end of the period | $ 306.6 | $ 291.1 | $ 248.5 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 02, 2020 | Dec. 31, 2017 | ||
Insurance [Abstract] | ||||||
Provision for losses and LAE, beginning balance | $ 6,951.8 | $ 7,074.2 | $ 6,749.5 | |||
Less reinsurance recoverable | (2,319.8) | (2,077.6) | $ (1,515.2) | |||
Net losses and LAE reserves, beginning balance | 4,632 | 4,996.6 | 5,234.3 | |||
Net loss and LAE expenses (disposed) (1) | (818.5) | 0 | 0 | |||
Movement in net provision for losses and LAE for claims incurred: | ||||||
Current year | 1,841.7 | 1,620.2 | 1,684.1 | |||
Prior years | (0.9) | 59.5 | (111.1) | |||
Total incurred | 1,840.8 | 1,679.7 | 1,573 | |||
Losses and LAE payments for claims incurred: | ||||||
Current year | (404.9) | (428.5) | (285.7) | |||
Prior years | (1,359.7) | (1,694.1) | (1,441) | |||
Total paid | (1,764.6) | (2,122.6) | (1,726.7) | |||
Foreign exchange losses/(gains) | 80.4 | 78.3 | (84) | |||
Net losses and LAE reserves, ending balance | 3,970.1 | 4,632 | 4,996.6 | |||
Plus reinsurance recoverable on unpaid losses at the end of the year | 3,195.2 | 2,319.8 | 2,077.6 | |||
Provision for losses and LAE at the end of the year | 7,165.3 | 6,951.8 | 7,074.2 | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||||||
Net loss and LAE expenses (disposed) (1) | (818.5) | 0 | 0 | |||
Insurance | ||||||
Insurance [Abstract] | ||||||
Provision for losses and LAE, beginning balance | 2,026.1 | 2,153 | ||||
Net losses and LAE reserves, beginning balance | 2,026.1 | 2,153 | ||||
Movement in net provision for losses and LAE for claims incurred: | ||||||
Prior years | (35.2) | (114.4) | ||||
Losses and LAE payments for claims incurred: | ||||||
Net losses and LAE reserves, ending balance | 1,874.4 | 2,026.1 | 2,153 | |||
Provision for losses and LAE at the end of the year | 1,874.4 | $ 2,026.1 | $ 2,153 | |||
Surety Product Line | Insurance | ||||||
Insurance [Abstract] | ||||||
Net loss and LAE expenses (disposed) (1) | 42 | |||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||||||
Net loss and LAE expenses (disposed) (1) | 42 | |||||
Accident and Health Insurance Product Line | ||||||
Insurance [Abstract] | ||||||
Net loss and LAE expenses (disposed) (1) | 6.5 | |||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||||||
Net loss and LAE expenses (disposed) (1) | 6.5 | |||||
Enstar | ||||||
Insurance [Abstract] | ||||||
Net loss and LAE expenses (disposed) (1) | 770 | |||||
Losses and LAE payments for claims incurred: | ||||||
Plus reinsurance recoverable on unpaid losses at the end of the year | [1] | $ 770 | ||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||||||
Net loss and LAE expenses (disposed) (1) | $ 770 | |||||
[1] | Included within reinsurance recoverable for unpaid losses are $770.0 million of recoveries associated with the purchase of an adverse development cover. |
Reserves for Losses and Adjus_4
Reserves for Losses and Adjustment Expenses - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Insurance [Abstract] | |||
Provision for losses and LAE for claims incurred | $ (0.9) | $ 59.5 | $ (111.1) |
Prior years | (0.9) | 59.5 | (111.1) |
Financial Guarantee Insurance Contracts, Premium Received over Contract Period [Line Items] | |||
Prior years | (0.9) | 59.5 | $ (111.1) |
Reinsurance | |||
Insurance [Abstract] | |||
Provision for losses and LAE for claims incurred | 36.1 | 54.9 | |
Prior years | 36.1 | 54.9 | |
Financial Guarantee Insurance Contracts, Premium Received over Contract Period [Line Items] | |||
Prior years | 36.1 | 54.9 | |
Insurance | |||
Insurance [Abstract] | |||
Provision for losses and LAE for claims incurred | (35.2) | (114.4) | |
Prior years | (35.2) | (114.4) | |
Financial Guarantee Insurance Contracts, Premium Received over Contract Period [Line Items] | |||
Prior years | (35.2) | $ (114.4) | |
Crop Re | |||
Insurance [Abstract] | |||
Provision for losses and LAE for claims incurred | 0.9 | ||
Prior years | 0.9 | ||
Financial Guarantee Insurance Contracts, Premium Received over Contract Period [Line Items] | |||
Prior years | $ 0.9 |
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, 2020USD ($)Integer | Dec. 31, 2019USD ($) | 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 | $ 4,266 | $ 4,815.5 | |||||||
Property Insurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 1,641 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | 1,415.3 | ||||||||
All outstanding liabilities for 2012 and subsequent years, net of reinsurance | 225.7 | ||||||||
All outstanding liabilities before 2012, net of reinsurance | 1.1 | ||||||||
Liability for claims and claim adjustment expenses, net of reinsurance | 226.8 | 190.7 | |||||||
Casualty Insurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 1,300.4 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | 705.2 | ||||||||
All outstanding liabilities for 2012 and subsequent years, net of reinsurance | 595.2 | ||||||||
All outstanding liabilities before 2012, net of reinsurance | 23.5 | ||||||||
Liability for claims and claim adjustment expenses, net of reinsurance | 618.7 | 669.2 | |||||||
Marine, Aviation and Energy Insurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 2,141.4 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | 1,710 | ||||||||
All outstanding liabilities for 2012 and subsequent years, net of reinsurance | 431.4 | ||||||||
All outstanding liabilities before 2012, net of reinsurance | 0 | ||||||||
Liability for claims and claim adjustment expenses, net of reinsurance | 431.4 | 591.5 | |||||||
Financial and Professional Insurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 1,617.1 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | 887.8 | ||||||||
All outstanding liabilities for 2012 and subsequent years, net of reinsurance | 729.3 | ||||||||
All outstanding liabilities before 2012, net of reinsurance | 9.2 | ||||||||
Liability for claims and claim adjustment expenses, net of reinsurance | 738.5 | 657.4 | |||||||
Property Catastrophe and Other Property Reinsurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 2,564.2 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | 1,957.7 | ||||||||
All outstanding liabilities for 2012 and subsequent years, net of reinsurance | 606.5 | ||||||||
All outstanding liabilities before 2012, net of reinsurance | 24.5 | ||||||||
Liability for claims and claim adjustment expenses, net of reinsurance | 631 | 528.6 | |||||||
Casualty Reinsurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 1,823.2 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | 888.6 | ||||||||
All outstanding liabilities for 2012 and subsequent years, net of reinsurance | 934.6 | ||||||||
All outstanding liabilities before 2012, net of reinsurance | 149.6 | ||||||||
Liability for claims and claim adjustment expenses, net of reinsurance | 1,084.2 | 1,602.2 | |||||||
Specialty Reinsurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 2,440.9 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | 1,926.4 | ||||||||
All outstanding liabilities for 2012 and subsequent years, net of reinsurance | 514.5 | ||||||||
All outstanding liabilities before 2012, net of reinsurance | 20.9 | ||||||||
Liability for claims and claim adjustment expenses, net of reinsurance | 535.4 | 575.9 | |||||||
Accident Year 2012 | Property Insurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 154.8 | 154.2 | $ 154.1 | $ 155.2 | $ 161.1 | $ 166.7 | $ 167.7 | $ 168.9 | $ 171.1 |
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 0 | ||||||||
Number of Reported Claims | Integer | 6,080 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 154.7 | 154.7 | 154.8 | 155.4 | 158 | 153.9 | 139.6 | 129.8 | 41.6 |
Accident Year 2012 | Casualty Insurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 67.6 | 71.4 | 69.4 | 67.5 | 69.9 | 62 | 70.8 | 63.7 | 78.8 |
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 1.9 | ||||||||
Number of Reported Claims | Integer | 3,016 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 60.2 | 55.5 | 50.8 | 49.9 | 41.5 | 30.1 | 14.4 | 6.8 | 1.4 |
Accident Year 2012 | Marine, Aviation and Energy Insurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 303.1 | 312.7 | 318 | 329.6 | 333.6 | 348 | 327.2 | 307.7 | 270.4 |
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 0.6 | ||||||||
Number of Reported Claims | Integer | 3,812 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 278.2 | 276.1 | 275.2 | 252.3 | 241.4 | 212.5 | 176.2 | 133.6 | 52.4 |
Accident Year 2012 | Financial and Professional Insurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 103.3 | 97.3 | 102.5 | 90.1 | 94.6 | 97.7 | 94.1 | 90.2 | 88.9 |
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 10.5 | ||||||||
Number of Reported Claims | Integer | 575 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 91.5 | 85.8 | 80.6 | 70.8 | 65.5 | 59.6 | 50.9 | 39.7 | 22.8 |
Accident Year 2012 | Property Catastrophe and Other Property Reinsurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 267 | 263.7 | 273.8 | 281.4 | 284.4 | 281 | 288.2 | 305.5 | 282.2 |
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 6.8 | ||||||||
Number of Reported Claims | Integer | 674 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 249.9 | 244.1 | 234 | 229.6 | 218.4 | 210.8 | 190.5 | 137.1 | 35.9 |
Accident Year 2012 | Casualty Reinsurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 221.6 | 247.2 | 244.9 | 236.2 | 235.3 | 238.3 | 246.7 | 235.3 | 237 |
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 0 | ||||||||
Number of Reported Claims | Integer | 1,804 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 163.3 | 145.4 | 135.7 | 118.6 | 97.1 | 65.9 | 42.3 | 17.9 | 2.2 |
Accident Year 2012 | Specialty Reinsurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 166.6 | 170.1 | 172.7 | 175.9 | 175.4 | 176.9 | 192.2 | 202.9 | 179.5 |
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 0.1 | ||||||||
Number of Reported Claims | Integer | 636 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 156.6 | 156.1 | 153.3 | 152 | 146.6 | 141.2 | 131.1 | 95.6 | $ 25.3 |
Accident Year 2013 | Property Insurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 113.1 | 112.9 | 112.6 | 114.6 | 113.6 | 117.9 | 118.2 | 131.2 | |
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 0.7 | ||||||||
Number of Reported Claims | Integer | 5,742 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 111.5 | 111.2 | 109.4 | 106.7 | 102.1 | 90 | 76.7 | 39.4 | |
Accident Year 2013 | Casualty Insurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 100.5 | 106.2 | 106.1 | 104.8 | 121.9 | 116.3 | 117.9 | 134.6 | |
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 3.6 | ||||||||
Number of Reported Claims | Integer | 3,311 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 88.4 | 86.3 | 82 | 69.3 | 53.7 | 40 | 26 | 2.3 | |
Accident Year 2013 | Marine, Aviation and Energy Insurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 340.7 | 346 | 347.2 | 333.7 | 326.7 | 343.3 | 334.7 | 321.8 | |
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 0 | ||||||||
Number of Reported Claims | Integer | 4,175 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 311 | 301.2 | 285 | 265.3 | 236 | 205.5 | 131.9 | 41.7 | |
Accident Year 2013 | Financial and Professional Insurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 97.7 | 91.5 | 92.5 | 101.7 | 102.5 | 105.6 | 101.4 | 106.7 | |
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 9.2 | ||||||||
Number of Reported Claims | Integer | 567 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 78.8 | 75.5 | 73.5 | 64.6 | 66.1 | 31.7 | 21.6 | 8.2 | |
Accident Year 2013 | Property Catastrophe and Other Property Reinsurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 172.3 | 175.1 | 178 | 181.5 | 183 | 194.4 | 204.5 | 221.9 | |
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 3.5 | ||||||||
Number of Reported Claims | Integer | 829 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 165.2 | 170.8 | 169.2 | 167.7 | 162.8 | 150.3 | 101 | 35 | |
Accident Year 2013 | Casualty Reinsurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 176.5 | 206.5 | 203.7 | 208.8 | 226.1 | 228.8 | 233 | 217.7 | |
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 3.7 | ||||||||
Number of Reported Claims | Integer | 1,679 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 140.9 | 128.7 | 115.9 | 93.8 | 65.5 | 43.2 | 16 | 3.5 | |
Accident Year 2013 | Specialty Reinsurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 114.2 | 117.9 | 118.4 | 122.2 | 123 | 135 | 143.4 | 148.4 | |
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 0.5 | ||||||||
Number of Reported Claims | Integer | 575 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 104.9 | 105.2 | 104.2 | 104.2 | 97.1 | 89.7 | 73.5 | $ 25.7 | |
Accident Year 2014 | Property Insurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 132.7 | 133.3 | 134.9 | 135.6 | 135 | 158.2 | 166.5 | ||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 0.6 | ||||||||
Number of Reported Claims | Integer | 9,969 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 131.3 | 130.1 | 128.6 | 124.5 | 114.7 | 87.1 | 40.6 | ||
Accident Year 2014 | Casualty Insurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 131.1 | 142.8 | 138.7 | 131.5 | 141.1 | 129.2 | 147 | ||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 5.9 | ||||||||
Number of Reported Claims | Integer | 3,807 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 112.2 | 99.1 | 74.5 | 60.7 | 33.2 | 13.6 | 2.8 | ||
Accident Year 2014 | Marine, Aviation and Energy Insurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 301.6 | 313.8 | 306.9 | 311.4 | 299.8 | 315 | 310.5 | ||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 0 | ||||||||
Number of Reported Claims | Integer | 4,049 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 263.9 | 251.6 | 233.4 | 210.7 | 189.9 | 117.2 | 53.7 | ||
Accident Year 2014 | Financial and Professional Insurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 120 | 122.1 | 133.1 | 121.7 | 131.5 | 132.8 | 136.5 | ||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 9.1 | ||||||||
Number of Reported Claims | Integer | 791 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 93.3 | 86.7 | 80.6 | 73.1 | 54.3 | 31 | 3 | ||
Accident Year 2014 | Property Catastrophe and Other Property Reinsurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 149 | 149.1 | 154.1 | 153.7 | 165.1 | 181.4 | 193.5 | ||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 2 | ||||||||
Number of Reported Claims | Integer | 902 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 145.2 | 143.5 | 144.7 | 140.6 | 130.2 | 103 | 38 | ||
Accident Year 2014 | Casualty Reinsurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 173.4 | 210.2 | 207.7 | 214.5 | 221.1 | 212.4 | 209 | ||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 0.3 | ||||||||
Number of Reported Claims | Integer | 1,775 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 127.1 | 108.7 | 87.4 | 60.9 | 38.2 | 14.1 | 2.6 | ||
Accident Year 2014 | Specialty Reinsurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 120.3 | 127.1 | 128.8 | 125.8 | 135.1 | 143 | 155.3 | ||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 0 | ||||||||
Number of Reported Claims | Integer | 624 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 106.6 | 104.9 | 102 | 91.4 | 83.3 | 58.1 | $ 17.1 | ||
Accident Year 2015 | Property Insurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 202.1 | 205.3 | 204.9 | 202.5 | 208.1 | 242.7 | |||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 2.9 | ||||||||
Number of Reported Claims | Integer | 11,583 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 197 | 198.6 | 181.9 | 172.7 | 144.6 | 57.6 | |||
Accident Year 2015 | Casualty Insurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 223.5 | 240 | 207 | 188.8 | 226.2 | 206.2 | |||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 17.9 | ||||||||
Number of Reported Claims | Integer | 4,682 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 170.1 | 140.5 | 94 | 57.2 | 17.3 | 3.2 | |||
Accident Year 2015 | Marine, Aviation and Energy Insurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 313.5 | 311.5 | 287.9 | 284.1 | 301.8 | 298.4 | |||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 0 | ||||||||
Number of Reported Claims | Integer | 4,053 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 258.6 | 223.4 | 195.4 | 175.3 | 124 | 45.2 | |||
Accident Year 2015 | Financial and Professional Insurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 182.2 | 193.2 | 191.8 | 187.4 | 177.4 | 176.1 | |||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 16.8 | ||||||||
Number of Reported Claims | Integer | 1,085 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 140.1 | 110.9 | 90 | 70.5 | 43.8 | 13.9 | |||
Accident Year 2015 | Property Catastrophe and Other Property Reinsurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 175.3 | 175.2 | 160 | 181 | 191.1 | 218.7 | |||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 5.9 | ||||||||
Number of Reported Claims | Integer | 1,044 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 161.5 | 159.1 | 142 | 129.6 | 96.8 | 36.1 | |||
Accident Year 2015 | Casualty Reinsurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 171.4 | 214.5 | 216.9 | 214.6 | 205.4 | 198 | |||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 4.9 | ||||||||
Number of Reported Claims | Integer | 1,906 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 109.9 | 90.4 | 66.3 | 39.1 | 18.4 | 3.6 | |||
Accident Year 2015 | Specialty Reinsurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 152.9 | 160.9 | 162.7 | 168.4 | 173.8 | 168.9 | |||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 5.2 | ||||||||
Number of Reported Claims | Integer | 765 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 137 | 134 | 124.8 | 106.1 | 57.9 | $ 18.1 | |||
Accident Year 2016 | Property Insurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 248.9 | 247.4 | 246.1 | 251.2 | 240.5 | ||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 3.5 | ||||||||
Number of Reported Claims | Integer | 10,765 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 234.2 | 225.3 | 202.9 | 170.1 | 67.5 | ||||
Accident Year 2016 | Casualty Insurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 194.1 | 193.6 | 186.8 | 191.4 | 220.2 | ||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 34.7 | ||||||||
Number of Reported Claims | Integer | 4,697 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 111.9 | 84.3 | 41 | 23.2 | 4.3 | ||||
Accident Year 2016 | Marine, Aviation and Energy Insurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 218.5 | 231.8 | 231.7 | 232.2 | 262.7 | ||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 0 | ||||||||
Number of Reported Claims | Integer | 4,416 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 193.4 | 166.2 | 144.6 | 83.5 | 30.9 | ||||
Accident Year 2016 | Financial and Professional Insurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 182.1 | 204.3 | 218.7 | 213.9 | 193.3 | ||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 26.2 | ||||||||
Number of Reported Claims | Integer | 1,249 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 127.3 | 131.2 | 103.2 | 71.8 | 15.5 | ||||
Accident Year 2016 | Property Catastrophe and Other Property Reinsurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 249.5 | 253.4 | 275.4 | 277.5 | 277.9 | ||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 2.3 | ||||||||
Number of Reported Claims | Integer | 1,296 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 234.4 | 220.7 | 209.2 | 167.4 | 57.6 | ||||
Accident Year 2016 | Casualty Reinsurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 220.9 | 260.3 | 250.4 | 250.6 | 237.7 | ||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 18.7 | ||||||||
Number of Reported Claims | Integer | 1,937 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 128.2 | 97.7 | 65.4 | 34.2 | 9.5 | ||||
Accident Year 2016 | Specialty Reinsurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 222.8 | 233.1 | 241 | 243.3 | 242.1 | ||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 9.7 | ||||||||
Number of Reported Claims | Integer | 923 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 196.2 | 185.9 | 167.7 | 152.6 | $ 59.1 | ||||
Accident Year 2017 | Property Insurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 255.7 | 254.4 | 261.2 | 298.4 | |||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ (6.5) | ||||||||
Number of Reported Claims | Integer | 9,639 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 244.9 | 224 | 190.5 | 97.4 | |||||
Accident Year 2017 | Casualty Insurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 188.3 | 181.6 | 177.4 | 184 | |||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 27.8 | ||||||||
Number of Reported Claims | Integer | 5,297 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 99.1 | 53.7 | 23.3 | 3.7 | |||||
Accident Year 2017 | Marine, Aviation and Energy Insurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 201.5 | 208.1 | 201.7 | 211.7 | |||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 7.8 | ||||||||
Number of Reported Claims | Integer | 6,001 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 169.3 | 141 | 98.2 | 40.5 | |||||
Accident Year 2017 | Financial and Professional Insurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 181.7 | 190 | 185.3 | 208.8 | |||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 21.2 | ||||||||
Number of Reported Claims | Integer | 1,720 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 118.3 | 83.9 | 51.5 | 27.3 | |||||
Accident Year 2017 | Property Catastrophe and Other Property Reinsurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 509.3 | 520.6 | 539.8 | 563.9 | |||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 7.5 | ||||||||
Number of Reported Claims | Integer | 1,952 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 444.5 | 419.9 | 359.9 | 123.8 | |||||
Accident Year 2017 | Casualty Reinsurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 201.5 | 258.2 | 247.3 | 249.9 | |||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 25 | ||||||||
Number of Reported Claims | Integer | 1,771 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 98.7 | 59.8 | 31.1 | 9.1 | |||||
Accident Year 2017 | Specialty Reinsurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 359.3 | 380.2 | 396.7 | 384.2 | |||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 11.3 | ||||||||
Number of Reported Claims | Integer | 1,311 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 309.3 | 273.4 | 240.8 | $ 95.3 | |||||
Accident Year 2018 | Property Insurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 193.5 | 210 | 207.2 | ||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ (13.3) | ||||||||
Number of Reported Claims | Integer | 8,106 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 186.6 | 164.5 | 63.1 | ||||||
Accident Year 2018 | Casualty Insurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 127.3 | 127.7 | 124.9 | ||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 43 | ||||||||
Number of Reported Claims | Integer | 5,440 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 44.5 | 28.3 | 3.3 | ||||||
Accident Year 2018 | Marine, Aviation and Energy Insurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 202.6 | 209.5 | 172.4 | ||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 13.7 | ||||||||
Number of Reported Claims | Integer | 5,133 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 133.9 | 105.6 | 27 | ||||||
Accident Year 2018 | Financial and Professional Insurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 151.7 | 175.8 | 159.8 | ||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 27.2 | ||||||||
Number of Reported Claims | Integer | 4,644 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 102.7 | 76.2 | 21.3 | ||||||
Accident Year 2018 | Property Catastrophe and Other Property Reinsurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 420 | 422.6 | 360.5 | ||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 8.9 | ||||||||
Number of Reported Claims | Integer | 1,813 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 352.3 | 331.5 | 123.7 | ||||||
Accident Year 2018 | Casualty Reinsurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 209.2 | 262.9 | 233 | ||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 70.5 | ||||||||
Number of Reported Claims | Integer | 1,488 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 74.2 | 34 | 7.3 | ||||||
Accident Year 2018 | Specialty Reinsurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 391.7 | 401 | 401.7 | ||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 23 | ||||||||
Number of Reported Claims | Integer | 1,372 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 317.4 | 282.8 | $ 27.9 | ||||||
Accident Year 2019 | Property Insurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 132.7 | 129.2 | |||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 11.7 | ||||||||
Number of Reported Claims | Integer | 6,592 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 93 | 49.8 | |||||||
Accident Year 2019 | Casualty Insurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 132.3 | 127.4 | |||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 70.1 | ||||||||
Number of Reported Claims | Integer | 4,958 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 18.8 | 6.5 | |||||||
Accident Year 2019 | Marine, Aviation and Energy Insurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 148.4 | 147.3 | |||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 27.5 | ||||||||
Number of Reported Claims | Integer | 3,466 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 73.1 | 33.8 | |||||||
Accident Year 2019 | Financial and Professional Insurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 245.5 | 252 | |||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 102.6 | ||||||||
Number of Reported Claims | Integer | 23,761 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 87.6 | 27.6 | |||||||
Accident Year 2019 | Property Catastrophe and Other Property Reinsurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 293.8 | 286.4 | |||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 4.2 | ||||||||
Number of Reported Claims | Integer | 1,335 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 161.7 | 28.4 | |||||||
Accident Year 2019 | Casualty Reinsurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 189.4 | 239 | |||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 102.6 | ||||||||
Number of Reported Claims | Integer | 963 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 36.9 | 9.4 | |||||||
Accident Year 2019 | Specialty Reinsurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 495 | 480 | |||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 62.4 | ||||||||
Number of Reported Claims | Integer | 1,433 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 384.8 | $ 275.4 | |||||||
Accident Year 2020 | Property Insurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 207.5 | ||||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 64.7 | ||||||||
Number of Reported Claims | Integer | 5,706 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 62.1 | ||||||||
Accident Year 2020 | Casualty Insurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 135.7 | ||||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 120.2 | ||||||||
Number of Reported Claims | Integer | 2,964 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 0 | ||||||||
Accident Year 2020 | Marine, Aviation and Energy Insurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 111.5 | ||||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 56.8 | ||||||||
Number of Reported Claims | Integer | 2,321 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 28.6 | ||||||||
Accident Year 2020 | Financial and Professional Insurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 352.9 | ||||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 261.7 | ||||||||
Number of Reported Claims | Integer | 69,692 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 48.2 | ||||||||
Accident Year 2020 | Property Catastrophe and Other Property Reinsurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 328 | ||||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 161.7 | ||||||||
Number of Reported Claims | Integer | 876 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 43 | ||||||||
Accident Year 2020 | Casualty Reinsurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 259.3 | ||||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 235.2 | ||||||||
Number of Reported Claims | Integer | 342 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 9.4 | ||||||||
Accident Year 2020 | Specialty Reinsurance | |||||||||
Claims Development [Line Items] | |||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 418.1 | ||||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 173.4 | ||||||||
Number of Reported Claims | Integer | 1,096 | ||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 213.6 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liability for claims and claim adjustment expenses, net of reinsurance | $ 4,266 | $ 4,815.5 | ||
Reinsurance recoverable on unpaid losses | 3,195.2 | 2,319.8 | ||
Unallocated claims incurred | 50.3 | 44 | ||
Other | 0.5 | (0.1) | ||
Liability for unpaid claims and claim adjustment expense, aggregate reconciling items | (295.9) | (183.5) | ||
Losses and loss adjustment expenses | 7,165.3 | 6,951.8 | $ 7,074.2 | $ 6,749.5 |
Property Insurance | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liability for claims and claim adjustment expenses, net of reinsurance | 226.8 | 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 | 618.7 | 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 | 431.4 | 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 | 738.5 | 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 | 2,015.4 | 2,108.8 | ||
Reinsurance recoverable on unpaid losses | 2,140.3 | 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 | 631 | 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 | 1,084.2 | 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 | 535.4 | 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 | 2,250.6 | 2,706.7 | ||
Reinsurance recoverable on unpaid losses | 1,054.9 | 547 | ||
Insurance lines other than short-duration | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Other reinsurance balances recoverable | $ (346.7) | $ (227.4) |
Reserves for Losses and Adjus_7
Reserves for Losses and Adjustment Expenses Short-duration Contracts - Historical Claims Duration (Details) | Dec. 31, 2020 |
Insurance | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Average Annual Percentage Payout of Incurred Claims, Net of Reinsurance, Year One | 16.30% |
Average Annual Percentage Payout of Incurred Claims, Net of Reinsurance, Year Two | 26.70% |
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 | 12.60% |
Average Annual Percentage Payout of Incurred Claims, Net of Reinsurance, Year Five | 8.40% |
Average Annual Percentage Payout of Incurred Claims, Net of Reinsurance, Year Six | 6.90% |
Average Annual Percentage Payout of Incurred Claims, Net of Reinsurance, Year Seven | 4.60% |
Average Annual Percentage Payout of Incurred Claims, Net of Reinsurance, Year Eight | 2.00% |
Average Annual Percentage Payout of Incurred Claims, Net of Reinsurance, Year Nine | 2.00% |
Reinsurance | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Average Annual Percentage Payout of Incurred Claims, Net of Reinsurance, Year One | 18.00% |
Average Annual Percentage Payout of Incurred Claims, Net of Reinsurance, Year Two | 31.60% |
Average Annual Percentage Payout of Incurred Claims, Net of Reinsurance, Year Three | 15.60% |
Average Annual Percentage Payout of Incurred Claims, Net of Reinsurance, Year Four | 9.50% |
Average Annual Percentage Payout of Incurred Claims, Net of Reinsurance, Year Five | 8.60% |
Average Annual Percentage Payout of Incurred Claims, Net of Reinsurance, Year Six | 5.30% |
Average Annual Percentage Payout of Incurred Claims, Net of Reinsurance, Year Seven | 4.00% |
Average Annual Percentage Payout of Incurred Claims, Net of Reinsurance, Year Eight | 2.50% |
Average Annual Percentage Payout of Incurred Claims, Net of Reinsurance, Year Nine | 3.80% |
Income Taxes - Summary of Total
Income Taxes - Summary of Total Income Tax (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense/(benefit) allocated to net loss | $ 8.6 | $ 22.9 | $ (10.2) |
Income tax expense/(benefit) allocated to other comprehensive income | 6.2 | 11.2 | 4.1 |
Total income tax expense/(benefit) | $ 14.8 | $ 34.1 | $ (6.1) |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Examination [Line Items] | |||
(Loss) before tax, Non-U.S. | $ 14 | $ (5.5) | $ 1.8 |
(Loss) before tax, U.S. | 19.7 | (60) | (81) |
(Loss) from operations before income taxes | (31.5) | (218.8) | (156) |
Current tax (benefit)/expense, Non-U.S. | 5.3 | 4 | 4.4 |
Current tax (benefit)/expense, U.S. | 8.9 | 1 | 6.1 |
Current tax (benefit)/expense, Total | 14.3 | (1.7) | (1.7) |
Deferred tax (benefit), Non-U.S. | 0 | 0.9 | (0.3) |
Deferred tax (benefit), U.S. | (5.7) | 6.5 | (8.1) |
Deferred tax, Total | (5.7) | 24.7 | (8.5) |
Total tax expense/(benefit), Non-U.S. | 5.3 | 4.9 | 4.1 |
Total tax expense/(benefit), U.S. | 3.2 | 7.4 | (2) |
Total tax expense/(benefit) | 8.6 | 22.9 | (10.2) |
Current tax expenses (benefit) related to prior year | 4.5 | ||
Deferred tax benefit, unrealized gain on investments | 5.7 | ||
Bermuda | |||
Income Tax Examination [Line Items] | |||
(Loss) before tax, Non-U.S. | (77.6) | (107.6) | (72.1) |
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. | 12.4 | (45.7) | (4.7) |
Current tax (benefit)/expense, Non-U.S. | 0.1 | (6.7) | (12.2) |
Deferred tax (benefit), Non-U.S. | 0 | 17.3 | (0.1) |
Total tax expense/(benefit), Non-U.S. | $ 0.1 | $ 10.6 | $ (12.3) |
Income Taxes - Income Tax Recon
Income Taxes - Income Tax Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Loss Carryforwards [Line Items] | |||
Income tax benefit at statutory tax rate of zero percent | $ 0 | $ 0 | $ 0 |
Overseas statutory tax rates differential | 12.1 | (21.2) | (17.1) |
Base erosion and anti-abuse tax (BEAT) expense | 4.3 | 0.3 | 6 |
Prior year adjustments | (3.2) | (1.7) | 1.4 |
Change in valuation allowance (2) | (10.4) | 42.6 | 7.1 |
Impact of unrecognized tax benefits | 0 | 0 | (12.8) |
Restricted foreign tax credits | 0 | 1.5 | 0 |
Australian non-resident withholding tax | 1 | 1 | 4.4 |
Share-based payments | 0 | (0.6) | 0.2 |
Foreign exchange | 1.9 | 0 | 0.1 |
Non-deductible expenses | 4.6 | 0 | 0.7 |
Non-taxable items | 0 | (0.1) | (0.3) |
Impact of changes in statutory tax rates | (1.7) | 1.1 | 0.1 |
Total tax expense/(benefit) | 8.6 | 22.9 | $ (10.2) |
U.S branch of Aspen U.K. | |||
Operating Loss Carryforwards [Line Items] | |||
Valuation allowance, associated losses | 20.9 | 9.9 | |
Valuation allowance, use of existing net operating losses | 14 | ||
Lloyds syndicate | |||
Operating Loss Carryforwards [Line Items] | |||
Valuation allowance, associated losses | $ 10.4 | $ 28.2 |
Income Taxes - Tax Effects of D
Income Taxes - Tax Effects of Deferred Tax Assets and Deferred Tax Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Income Tax Disclosure [Abstract] | ||
Share-based payments | $ 0 | $ 0.3 |
Operating loss carryforwards | 119.6 | 121.5 |
Insurance reserves: Losses and loss adjustment expenses | 7.9 | 5 |
Accrued expenses | 6.4 | 7.1 |
Unearned premiums | 17.6 | 15.3 |
Deferred policy acquisition costs | 0 | 0.1 |
Office properties and equipment | 12.7 | 16.8 |
Operating lease liability | 17.7 | 21.5 |
Other temporary differences | 2.5 | 6.1 |
Total deferred tax assets | 184.4 | 193.7 |
Less valuation allowance | (138.9) | (149.2) |
Deferred tax assets, net of valuation allowance | 45.5 | 44.5 |
Unrealized (gains) on investments | (2.7) | (2.7) |
Intangible assets | (20.1) | (1.6) |
Deferred policy acquisition costs | (8.4) | (16.4) |
Operating lease assets | (12.3) | (19.9) |
Other temporary differences | (2) | (3.9) |
Total deferred tax (liabilities) | (45.5) | (44.5) |
Deferred Tax Assets, Net | $ 0 | $ 0 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2018 | |
Income Taxes [Line Items] | |||
United States corporate tax at a rate | 21.00% | ||
Less valuation allowance | $ 138,900,000 | $ 149,200,000 | |
Increase (decrease) in valuation allowance | (20,900,000) | 9,200,000 | |
US branch profits, subject to tax | 0 | 0 | |
Internal Revenue Service (IRS) | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards | 501,700,000 | 606,800,000 | |
Operating loss carryforwards, remaining | 501,700,000 | ||
Operating loss carryforwards, subject to expiration date | 444,300,000 | ||
Operating loss carryforwards, not subject to expiration | 57,400,000 | ||
Capital loss carryforwards | 0 | 500,000 | |
Charitable contribution carryforwards | 1,000,000 | 1,100,000 | |
Less valuation allowance | 113,900,000 | 134,800,000 | |
Internal Revenue Service (IRS) | Aspen U.K. | |||
Income Taxes [Line Items] | |||
Operating loss carryforwards, subject to s382 limitation | 6,500,000 | ||
Internal Revenue Service (IRS) | U.S. operating subsidiaries | |||
Income Taxes [Line Items] | |||
Operating loss carryforwards, subject to s382 limitation | $ 20,800,000 | ||
Internal Revenue Service (IRS) | Minimum | |||
Income Taxes [Line Items] | |||
Operating loss carryforwards, date of expiration | 2030 | ||
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 | 19.00% | ||
Net operating loss carryforwards | $ 99,500,000 | 93,200,000 | |
Capital loss carryforwards | 3,800,000 | ||
Less valuation allowance | 24,800,000 | 14,400,000 | |
Increase (decrease) in valuation allowance | 10,400,000 | 28,200,000 | |
U.K. | Other Comprehensive Income | |||
Income Taxes [Line Items] | |||
Less valuation allowance | $ 0 | 0 | |
Bermuda | |||
Income Taxes [Line Items] | |||
Bermuda tax rate | 0.00% | ||
Valuation Allowance, Operating Loss Carryforwards | |||
Income Taxes [Line Items] | |||
Increase (decrease) in valuation allowance | $ (20,900,000) | 9,200,000 | |
Valuation Allowance, Operating Loss Carryforwards | U.K. | |||
Income Taxes [Line Items] | |||
Less valuation allowance | $ 10,400,000 | $ 28,200,000 |
Capital Structure - Summary of
Capital Structure - Summary of Authorized and Issued Share Capital (Details) - USD ($) $ / shares in Units, $ in Thousands | Aug. 13, 2019 | Sep. 20, 2016 | Dec. 31, 2020 | Dec. 31, 2019 | May 02, 2013 |
Authorized share capital: | |||||
Number of ordinary shares | 70,000,000 | 70,000,000 | |||
Number of preference shares | 30,000,000 | 30,000,000 | |||
Ordinary Shares, authorized | $ 700 | $ 700 | |||
Preference Shares, authorized | 45 | 45 | |||
Total authorized share capital | $ 745 | $ 745 | |||
Issued share capital: | |||||
Ordinary shares, issued | 60,395,839 | 60,395,839 | |||
Ordinary shares, value | $ 604 | $ 604 | |||
Total issued share capital | $ 636 | $ 636 | |||
Ordinary shares, par value | $ 0.01 | $ 0.01 | |||
Preference shares, par value | $ 0.0015144558 | ||||
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 | $ 17 | |||
Preferred Stock, Dividend Rate, Percentage | 5.95% | 5.95% | |||
Preference shares, par value | $ 0.0015144558 | $ 0.0015144558 | |||
Redemption price per share | $ 25 | $ 25 | $ 25 | ||
5.625% Preference Shares (AHL PRD) | |||||
Issued share capital: | |||||
Preference shares, issued | 10,000,000 | 10,000,000 | |||
Preference shares, value | $ 15 | $ 15 | |||
Preferred Stock, Dividend Rate, Percentage | 5.625% | 5.625% | 5.625% | ||
Preference shares, par value | $ 0.0015144558 | $ 0.0015144558 | |||
Redemption price per share | $ 25 | $ 25 | $ 25 | ||
5.625% Preference Shares, rep by Dep Shares (AHL PRE) | |||||
Issued share capital: | |||||
Preference shares, issued | 10,000,000 | 10,000,000 | 10,000,000 | ||
Preference shares, value | $ 0 | $ 0 | |||
Preferred Stock, Dividend Rate, Percentage | 5.625% | 5.625% | 5.625% | ||
Preference shares, par value | $ 0.0015144558 | $ 0.0015144558 | |||
Redemption price per share | $ 25 | $ 25 | $ 25 |
Capital Structure - Summary o_2
Capital Structure - Summary of Authorized and Issued Share Capital (Phantom)(Details) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 | Aug. 13, 2019 | Sep. 20, 2016 | May 02, 2013 |
Class of Stock [Line Items] | |||||
Ordinary shares, par value | $ 0.01 | $ 0.01 | |||
Preference shares, par value | $ 0.0015144558 | ||||
Depositary share interest of 1/1000th in each 5.625% | 0.01% | ||||
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 | ||
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 | ||
5.625% Preference Shares, rep by Dep Shares (AHL PRE) | |||||
Class of Stock [Line Items] | |||||
Preference shares, par value | 0.0015144558 | 0.0015144558 | |||
Redemption price per share | $ 25 | $ 25 | $ 25 |
Capital Structure - Additional
Capital Structure - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Aug. 13, 2019 | Sep. 20, 2016 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | May 02, 2013 | |
Class of Stock [Line Items] | ||||||||
Additional paid in capital | $ 1,469,700 | $ 1,201,700 | ||||||
Aggregate liquidation preferences | 775,000 | 775,000 | ||||||
Preferred stock issuance cost | 21,500 | 21,500 | ||||||
Authorized share capital | $ 745 | $ 745 | ||||||
Number of ordinary shares | 70,000,000 | 70,000,000 | ||||||
Ordinary shares, par value | $ 0.01 | $ 0.01 | ||||||
Number of preference shares | 30,000,000 | 30,000,000 | ||||||
Preference shares, par value | $ 0.0015144558 | |||||||
Ordinary shares, issued | 60,395,839 | 60,395,839 | ||||||
Preferred Stock, Redemption Amount | $ 275,000 | |||||||
Preference shares liquidation preference, value | $ 250,000 | |||||||
Capital contribution (1) | $ 268,000 | [1] | $ 0 | $ 0 | ||||
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 | |||||||
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% | |||||
Redemption price per share | $ 25 | $ 25 | $ 25 | |||||
Proceeds or share issuance | $ 241,300 | |||||||
Preference shares liquidation preference, value | $ 250,000 | |||||||
5.625% Preference Shares, rep by Dep Shares (AHL PRE) | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock issuance cost | $ 8,400 | |||||||
Preference shares, par value | $ 0.0015144558 | $ 0.0015144558 | ||||||
Preference shares, issued | 10,000,000 | 10,000,000 | 10,000,000 | |||||
Preference shares, rate | 5.625% | 5.625% | 5.625% | |||||
Redemption price per share | $ 25 | $ 25 | $ 25 | |||||
Additional paid-in capital | Preference Shares | ||||||||
Class of Stock [Line Items] | ||||||||
Proceeds or share issuance | $ 241,600 | $ 0 | $ 241,600 | $ 0 | ||||
[1] | The $268.0 million relates to additional capital contribution received from our parent company Highlands Bermuda Holdco, Ltd. |
Statutory Requirements and Di_3
Statutory Requirements and Dividends Restrictions - Summary of Statutory Requirements and Dividends Restrictions (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
U.S. | ||
Required statutory capital and surplus | $ 504.8 | $ 404 |
Actual statutory capital and surplus | 606.2 | 502 |
Bermuda | ||
Required statutory capital and surplus | 632.5 | 788.4 |
Actual statutory capital and surplus | 1,147.5 | 1,380.6 |
U.K. | ||
Required statutory capital and surplus | 786 | 782 |
Actual statutory capital and surplus | $ 969.5 | $ 841.9 |
Statutory Requirements and Di_4
Statutory Requirements and Dividends Restrictions - Additional Information (Details) - 12 months ended Dec. 31, 2020 £ in Millions, $ in Millions | USD ($) | GBP (£) |
AUL | ||
Statutory Accounting Practices [Line Items] | ||
Syndicate to maintain funds at Lloyd | $ 815.8 | |
Total funds held by AUL | 758.8 | |
U.K. | ||
Statutory Accounting Practices [Line Items] | ||
Dividend payment made without regulatory approval | (200.3) | £ (73.1) |
Capital contributions reserves | 555 | |
Bermuda | ||
Statutory Accounting Practices [Line Items] | ||
Dividend payment made without regulatory approval | $ (286.9) | |
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 | 181.00% | |
Bermuda | AUL | ||
Statutory Accounting Practices [Line Items] | ||
Total funds held by AUL | $ 503.3 |
Dividends - Summary of Declared
Dividends - Summary of Declared Dividends (Details) - $ / shares | Apr. 01, 2021 | Mar. 15, 2021 | Mar. 04, 2021 | Aug. 13, 2019 | Sep. 20, 2016 | Dec. 31, 2020 | Dec. 31, 2019 |
Dividends Payable [Line Items] | |||||||
Depositary share interest of 1/1000th in each 5.625% | 0.01% | ||||||
5.625% Preference Shares, rep by Dep Shares (AHL PRE) | |||||||
Dividends Payable [Line Items] | |||||||
Preferred Stock, Dividend Rate, Percentage | 5.625% | 5.625% | 5.625% | ||||
5.950% Preference Shares (AHL PRC) | |||||||
Dividends Payable [Line Items] | |||||||
Preferred Stock, Dividend Rate, Percentage | 5.95% | 5.95% | |||||
5.625% Preference Shares (AHL PRD) | |||||||
Dividends Payable [Line Items] | |||||||
Preferred Stock, Dividend Rate, Percentage | 5.625% | 5.625% | 5.625% | ||||
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, 2021 | ||||||
Record Date | Mar. 15, 2021 | ||||||
Depositary share dividend | $ 0.35156 | ||||||
Depositary share interest of 1/1000th in each 5.625% | 0.001% | ||||||
Preferred Stock, Dividend Rate, Percentage | 562.50% | ||||||
Subsequent Event | 5.950% Preference Shares (AHL PRC) | |||||||
Dividends Payable [Line Items] | |||||||
Dividend, in usd per share | $ 0.3719 | ||||||
Payable Date | Apr. 1, 2021 | ||||||
Record Date | Mar. 15, 2021 | ||||||
Preferred Stock, Dividend Rate, Percentage | 595.00% | ||||||
Subsequent Event | 5.625% Preference Shares (AHL PRD) | |||||||
Dividends Payable [Line Items] | |||||||
Dividend, in usd per share | $ 0.3516 | ||||||
Payable Date | Apr. 1, 2021 | ||||||
Record Date | Mar. 15, 2021 | ||||||
Preferred Stock, Dividend Rate, Percentage | 562.50% |
Retirement Plans (Details)
Retirement Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
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 | $ 12.1 | $ 12.9 | $ 16 |
Share-Based Payments and Long_2
Share-Based Payments and Long-term Incentive Plan - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based payment and LTIP expense | $ 2.1 | $ 3.5 |
Other share-based arrangements, expense | 0.3 | 1.9 |
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated share-based compensation expense | 1.3 | 0.8 |
Deferred cash awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated share-based compensation expense | $ 0.5 | $ 0.8 |
Intangible Assets - Summary of
Intangible Assets - Summary of Changes in Intangible Assets (Details) - USD ($) $ in Millions | Dec. 18, 2017 | Dec. 31, 2020 | Dec. 31, 2019 |
Finite and Indefinite Lived Intangible Assets [Roll Forward] | |||
Amortization | $ (1.1) | $ (1.5) | |
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 | 23.9 | 26.3 | |
Intangible Assets and Goodwill, Additions (Disposals) | 0 | 0 | |
Goodwill and Intangible Asset Impairment | 0 | (0.9) | |
Intangible Assets and goodwill, End of the period | 22.8 | 23.9 | |
Trademarks | |||
Finite and Indefinite Lived Intangible Assets [Roll Forward] | |||
Intangible Assets, Beginning of the period | 1.9 | 2.5 | |
Intangible Assets acquired (disposed) | $ 0 | 0 | |
Amortization | (0.3) | (0.6) | |
Impairment of intangible assets (excluding goodwill) | 0 | 0 | |
Intangible Assets, End of the period | 1.6 | 1.9 | |
Agency Relationships | |||
Finite and Indefinite Lived Intangible Assets [Roll Forward] | |||
Intangible Assets, Beginning of the period | 1.2 | 1.8 | |
Intangible Assets acquired (disposed) | 0 | 0 | |
Amortization | (0.6) | (0.6) | |
Impairment of intangible assets (excluding goodwill) | 0 | 0 | |
Intangible Assets, End of the period | 0.6 | 1.2 | |
Renewal Rights | |||
Finite and Indefinite Lived Intangible Assets [Roll Forward] | |||
Intangible Assets, Beginning of the period | 0 | 1 | |
Intangible Assets acquired (disposed) | 0 | ||
Amortization | (0.1) | ||
Impairment of intangible assets (excluding goodwill) | (0.9) | ||
Intangible Assets, End of the period | 0 | ||
Non-compete Agreements | |||
Finite and Indefinite Lived Intangible Assets [Roll Forward] | |||
Intangible Assets, Beginning of the period | 0.2 | 0.4 | |
Intangible Assets acquired (disposed) | $ 0 | 0 | |
Amortization | (0.2) | (0.2) | |
Impairment of intangible assets (excluding goodwill) | 0 | 0 | |
Intangible Assets, End of the period | 0 | 0.2 | |
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 (Details) - USD ($) $ in Millions | Jan. 01, 2017 | Oct. 31, 2016 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Blue Waters | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill, acquired | $ 2.1 | ||||
Trademarks | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Value of the asset | $ 1.6 | $ 1.9 | $ 2.5 | ||
Trademarks | Blue Waters | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Value of the asset | 0.2 | ||||
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 | |||
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | |||
Amortization of right-of-use operating lease assets | $ 11.8 | $ 13.4 | $ 0 |
Interest on operating lease liability | 5.5 | 4.6 | |
Operating lease charge | $ 17.3 | $ 18 | $ 0 |
Operating Leases - Schedule o_2
Operating Leases - Schedule of Operating Lease Liability, Maturity (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Liability, Payments, Due prior year | $ 0 | $ 17.7 |
Liability, Payments, Next twelve months | 17.2 | 16.4 |
Liability, Payments, Due year two | 14.2 | 13 |
Liability, Payments, Due year three | 13.5 | 12.2 |
Liability, Payments, Due year four | 12.6 | 11.7 |
Liability, Payments, Due year five | 12.2 | 11.5 |
Liability, Payments, Due after year five | 63.4 | 62.1 |
Total minimum lease payments | 133.1 | 144.6 |
Less imputed interest | (27.1) | (31.4) |
Operating lease liabilities | $ 106 | $ 113.2 |
Operating Leases - Schedule o_3
Operating Leases - Schedule of Operating Leases Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | |||
Operating lease liabilities | $ (17.3) | $ (18) | $ 0 |
Asset obtained in exchange for operating lease liability | 5 | 37.3 | |
Reduction of right-of use assets resulting from reductions to lease obligations | $ 13 | $ 6.1 | |
Operating lease, weighted average remaining lease term (years( | 9 years 1 month 6 days | 10 years 1 month 6 days | |
Operating lease, weighted average discount rate (percent) | 5.00% | 5.00% |
Operating Leases - Additional I
Operating Leases - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Right-of-use operating lease assets | $ 74.1 | $ 93.5 |
Operating lease liabilities | 106 | 113.2 |
Non-operating expenses related to impairment charges on lease assets | $ 12.9 | $ 12.3 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
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] | ||
Related party fees | $ 5.3 | $ 3.5 |
Related party fees still due | 2.1 | 2.2 |
Management Consulting Agreement | ||
Related Party Transaction [Line Items] | ||
Related party fees | 5 | 4.4 |
Related party fees still due | 0 | 1.3 |
Beneficial owner | ||
Related Party Transaction [Line Items] | ||
Intercompany balance payable | $ 14.4 | $ 18.1 |
Maximum | ||
Related Party Transaction [Line Items] | ||
Percentage of consolidated group's net income due to Apollo Management | 1.00% | |
Fees due to Apollo Management | $ 5 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Company's Restricted Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 19, 2018 | May 01, 2018 | |
Fair Value, Separate Account Investment [Line Items] | |||||
Restricted assets, excluding illiquid assets | $ 4,306.9 | $ 4,156.9 | |||
Other investments | 109.4 | 111.4 | |||
Total restricted assets | $ 4,416.3 | $ 4,268.3 | |||
Total as percent of investable assets | 58.60% | 54.40% | |||
Securities and cash as collateral secured letters of credit | $ 516.8 | $ 635.4 | |||
Affiliated transactions | |||||
Fair Value, Separate Account Investment [Line Items] | |||||
Restricted Assets | 1,027.9 | 754.9 | |||
Third party | |||||
Fair Value, Separate Account Investment [Line Items] | |||||
Restricted Assets | 2,762.2 | 2,766.6 | |||
Letters of credit / guarantees | |||||
Fair Value, Separate Account Investment [Line Items] | |||||
Restricted Assets | 516.8 | 635.4 | |||
Limited Partner | Real estate fund | |||||
Fair Value, Separate Account Investment [Line Items] | |||||
Restricted Assets | $ 100 | ||||
Other investments | $ 109.4 | $ 111.4 | $ 13.8 | $ 86.2 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Details) £ in Millions, SFr in Millions, $ in Millions, $ in Millions, $ in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||||||||||||||||||
Mar. 31, 2021USD ($) | Jan. 31, 2015USD ($) | Dec. 31, 2020USD ($)Investment | Dec. 31, 2019USD ($)Investment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2020GBP (£)Investment | Dec. 31, 2020CAD ($)Investment | Dec. 31, 2020AUD ($)Investment | Dec. 31, 2020CHF (SFr)Investment | Dec. 31, 2020SGD ($)Investment | Dec. 31, 2019GBP (£)Investment | Dec. 31, 2019CAD ($)Investment | Dec. 31, 2019AUD ($)Investment | Dec. 31, 2019CHF (SFr)Investment | Dec. 31, 2019SGD ($)Investment | Dec. 27, 2019USD ($) | Dec. 23, 2019USD ($) | Sep. 19, 2018USD ($) | May 01, 2018USD ($) | |
Restricted Cash And Collateral [Line Items] | ||||||||||||||||||||
Other investments (equity method) | $ 109.4 | $ 111.4 | ||||||||||||||||||
Total as percent of investable assets | 58.60% | 54.40% | ||||||||||||||||||
Investable assets held by the Company | $ 7,500 | $ 7,800 | ||||||||||||||||||
Investable assets held by insurance regulators | $ 541.4 | 513.1 | ||||||||||||||||||
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 | $ 1,455.3 | 1,374.4 | ||||||||||||||||||
Assets held-in-trust | 1,478 | 1,395.2 | ||||||||||||||||||
Regulatory deposits | 6.7 | 6.1 | ||||||||||||||||||
Deposit with states | $ 6.1 | $ 6.7 | ||||||||||||||||||
Number of investments | Investment | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | ||||||||
Investment in the period | $ 0.5 | $ 1.1 | ||||||||||||||||||
MVI | ||||||||||||||||||||
Restricted Cash And Collateral [Line Items] | ||||||||||||||||||||
Investment in the period | $ 0.8 | 0 | 0 | $ 0.2 | $ 0.1 | |||||||||||||||
MVI | Subsequent Event | ||||||||||||||||||||
Restricted Cash And Collateral [Line Items] | ||||||||||||||||||||
Investment in the period | $ 0.8 | |||||||||||||||||||
Multi-Line Insurer | ||||||||||||||||||||
Restricted Cash And Collateral [Line Items] | ||||||||||||||||||||
Other investments (equity method) | 0.3 | $ 0.2 | $ 5 | |||||||||||||||||
Investment in the period | 0.5 | 0 | ||||||||||||||||||
Us Multi Beneficiary Trust Fund | ||||||||||||||||||||
Restricted Cash And Collateral [Line Items] | ||||||||||||||||||||
Minimum trust fund | 20 | |||||||||||||||||||
Assets held-in-trust | 572.3 | 846.2 | ||||||||||||||||||
Us Surplus Lines Trust Fund | ||||||||||||||||||||
Restricted Cash And Collateral [Line Items] | ||||||||||||||||||||
Assets held-in-trust | $ 208 | 215.5 | ||||||||||||||||||
Canadian Trust Fund | ||||||||||||||||||||
Restricted Cash And Collateral [Line Items] | ||||||||||||||||||||
Assets held-in-trust | $ 156.8 | $ 155.4 | ||||||||||||||||||
Australian Trust Fund | ||||||||||||||||||||
Restricted Cash And Collateral [Line Items] | ||||||||||||||||||||
Assets held-in-trust | $ 256.6 | $ 226.9 | ||||||||||||||||||
Swiss Trust Fund | ||||||||||||||||||||
Restricted Cash And Collateral [Line Items] | ||||||||||||||||||||
Assets held-in-trust | SFr | SFr 8 | SFr 8.4 | ||||||||||||||||||
Singapore Trust Fund | ||||||||||||||||||||
Restricted Cash And Collateral [Line Items] | ||||||||||||||||||||
Assets held-in-trust | $ 148.9 | $ 148.9 | ||||||||||||||||||
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 | $ 382.8 | 427.7 | ||||||||||||||||||
Limited Partner | Real estate fund | ||||||||||||||||||||
Restricted Cash And Collateral [Line Items] | ||||||||||||||||||||
Restricted assets | $ 100 | |||||||||||||||||||
Other investments (equity method) | $ 109.4 | $ 111.4 | $ 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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Investment Holdings [Line Items] | |||
Gross written premiums, percentage | 100.00% | 100.00% | 100.00% |
Gross written premiums | $ 3,703.6 | $ 3,442.4 | $ 3,446.9 |
Aon Corporation (1) | |||
Investment Holdings [Line Items] | |||
Gross written premiums, percentage | 15.80% | 13.40% | 15.80% |
Marsh & McLennan Companies, Inc. | |||
Investment Holdings [Line Items] | |||
Gross written premiums, percentage | 15.40% | 13.60% | 15.80% |
Willis Group Holdings, Ltd. | |||
Investment Holdings [Line Items] | |||
Gross written premiums, percentage | 10.40% | 10.30% | 12.40% |
Others | |||
Investment Holdings [Line Items] | |||
Gross written premiums, percentage | 58.40% | 62.70% | 56.00% |
Concentration of Credit Risk _2
Concentration of Credit Risk - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reinsurance [Line Items] | |||
Unpaid losses | $ 3,195.2 | $ 2,319.8 | $ 2,077.6 |
Reinsurance Recoverables, Uncollateralized | 2,010 | 1,817.5 | |
Underwriting premiums (net of allowance for expected credit losses of $34.0 — $Nil) | 1,279.8 | 1,318.4 | |
Due for settlement | 11.4 | ||
Premium Receivable, Allowance for Credit Loss | $ 34 | 23 | |
Allowable holdings of a single issue or issuer, percentage | 2.00% | ||
Percentage of written premium major broker accounted minimum | 10.00% | ||
Reinsurance Recoverable, Allowance for Credit Loss | $ 3.8 | $ 3.7 | |
AM Best, A plus Rating | Standard & Poor's, A plus Rating | Everest Re | |||
Reinsurance [Line Items] | |||
Concentration risk percentage | 13.40% | 11.90% | |
AM Best, A plus Rating | Standard & Poor's, AA- Rating | Munich Re | |||
Reinsurance [Line Items] | |||
Concentration risk percentage | 11.00% | 15.10% | |
AM Best, A Rating | Standard & Poor's, A plus Rating | Lloyds | |||
Reinsurance [Line Items] | |||
Concentration risk percentage | 9.20% | 8.90% |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
(Loss) from operations before income taxes | $ (31.5) | $ (218.8) | $ (156) |
Income tax (expense)/benefit | (8.6) | (22.9) | 10.2 |
General, administrative and corporate expenses | (410.9) | (521.6) | (491.7) |
Net (loss) | (40.1) | (241.7) | (145.8) |
Net (loss) | (40.1) | (241.7) | $ (145.8) |
Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net (loss) | (66.8) | (2.8) | |
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 | (69.3) | (14.4) | |
Realized gains on sale of securities | 2.2 | 7.6 | |
(Loss) from operations before income taxes | (67.1) | (6.8) | |
Income tax (expense)/benefit | 0 | 0 | |
Net (loss) | (67.1) | (6.8) | |
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 | (0.8) | |
General, administrative and corporate expenses | 0.3 | 4.8 | |
Net (loss) | $ 0.3 | $ 4 |
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, 2020USD ($) |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Nov. 30, 2020 | Nov. 25, 2020 | Nov. 03, 2020 | Feb. 11, 2019 | Jun. 30, 2017 |
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 | $ 1,891,000,000 | ||||||||||
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 | $ 0 | $ 5,500,000 | $ 8,600,000 | ||||||||
Repayments of Other Long-term Debt | 0 | 125,000,000 | $ 125,000,000 | ||||||||
AUL | Lloyds | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Letter of Credit to Support Funds at Lloyd's | $ 40,000,000 | ||||||||||
Funds at Lloyd's Facility Agreement | 100,000,000 | $ 100,000,000 | $ 80,000,000 | ||||||||
Line of Credit Facility, Maximum Amount Outstanding During Period | 80,000,000 | ||||||||||
Citibank Europe | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Outstanding collateralized letters of credit facility | $ 444,200,000 | $ 444,200,000 | |||||||||
Letters of credit / guarantees | Aspen U.K. | Aspen European | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Revolving credit facility, credit agreement maximum limit | $ 100,000,000 | ||||||||||
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 |
Credit Losses (Details)
Credit Losses (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Credit Loss [Abstract] | |
Reinsurance Recoverable, Allowance for Credit Loss, Beginning Balance | $ 3.7 |
Reinsurance Recoverable, Allowance for Credit Loss, Period Increase (Decrease) | 0.1 |
Reinsurance Recoverable, Allowance for Credit Loss, Ending Balance | 3.8 |
Accounts Receivable, Allowance for Credit Loss, Beginning Balance | 23 |
Accounts Receivable, Allowance for Credit Loss, Period Increase (Decrease) | 11 |
Accounts Receivable, Allowance for Credit Loss, Ending Balance | 34 |
Available-for-sale Investments, Allowance for Credit Loss, Beginning Balance | 0.6 |
Available-for-sale investment, allowance for credit loss, increase (decrease) | (0.4) |
Available-for-sale Investments, Allowance for Credit Loss, Current | $ 0.2 |
Subsequent Events - Narrative (
Subsequent Events - Narrative (Details) - USD ($) | Apr. 01, 2021 | Mar. 27, 2017 |
Subsequent Event [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 200,000,000 | |
Subsequent Event | Aspen Specialty | Federal Home Loan Bank of Boston | ||
Subsequent Event [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 98,000,000 | |
Subsequent Event | AAIC | Federal Home Loan Bank of Boston | ||
Subsequent Event [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 97,000,000 | |
Percentage limit of pledged assets permitted to secure debt obligations | 10.00% |
Schedule II - Condensed Finan_2
Schedule II - Condensed Financial Information of Registrant Balance Sheets (Details) - USD ($) $ / shares in Units, $ in Thousands | Aug. 13, 2019 | Sep. 20, 2016 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2016 | May 02, 2013 |
ASSETS | ||||||||
Cash and cash equivalents (including cash within consolidated variable interest entities of — $69.9 and $69.1) | $ 1,747,300 | $ 1,030,500 | $ 1,083,700 | $ 1,054,800 | ||||
Other investments (equity method) | 109,400 | 111,400 | ||||||
Right-of-use operating lease assets | 74,100 | 93,500 | ||||||
Other assets | 8,400 | 1,600 | ||||||
Total assets | 13,185,400 | 12,580,500 | ||||||
LIABILITIES | ||||||||
Accrued expenses and other payables | 214,400 | 220,800 | ||||||
Long-term debt | 299,900 | 299,800 | ||||||
Operating lease liabilities | 106,000 | 113,200 | ||||||
Total liabilities | 10,187,800 | 9,855,000 | ||||||
SHAREHOLDERS’ EQUITY | ||||||||
60,395,839 shares of par value $0.01 each (December 31, 2019 — 60,395,839 shares) | 604 | 604 | ||||||
Additional paid in capital | 1,469,700 | 1,201,700 | ||||||
Retained earnings | 1,425,700 | 1,514,600 | ||||||
Non-controlling interest | 0 | 0 | ||||||
Total accumulated other comprehensive income | 101,600 | 8,600 | (121,900) | |||||
Total liabilities and shareholders’ equity | $ 13,185,400 | $ 12,580,500 | ||||||
Ordinary shares, issued | 60,395,839 | 60,395,839 | ||||||
Ordinary shares, par value | $ 0.01 | $ 0.01 | ||||||
Preference shares, par value | $ 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% | 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 | 10,000,000 | |||||
Preference shares, rate | 5.625% | 5.625% | 5.625% | |||||
Preference shares, par value | $ 0.0015144558 | $ 0.0015144558 | ||||||
Parent Company | ||||||||
ASSETS | ||||||||
Fixed income maturities, trading at fair value (amortized cost — $1,106.6 and $1,205.0) | $ 0 | $ 75,600 | ||||||
Cash and cash equivalents (including cash within consolidated variable interest entities of — $69.9 and $69.1) | 92,400 | 37,400 | $ 32,000 | $ 55,600 | ||||
Investments in subsidiaries (1) | 3,325,600 | 2,973,600 | ||||||
Intercompany funds due from affiliates | 700 | 100 | ||||||
Right-of-use operating lease assets | 1,000 | 1,400 | ||||||
Other assets | 6,400 | 6,900 | ||||||
Total assets | 3,426,100 | 3,095,000 | ||||||
LIABILITIES | ||||||||
Accrued expenses and other payables | 24,300 | 7,200 | ||||||
Intercompany funds due to affiliates | 103,400 | 61,200 | ||||||
Long-term debt | 299,900 | 299,800 | ||||||
Operating lease liabilities | 900 | 1,300 | ||||||
Total liabilities | 428,500 | 369,500 | ||||||
SHAREHOLDERS’ EQUITY | ||||||||
60,395,839 shares of par value $0.01 each (December 31, 2019 — 60,395,839 shares) | 600 | 600 | ||||||
Additional paid in capital | 1,469,700 | 1,201,700 | ||||||
Retained earnings | 1,425,700 | 1,514,600 | ||||||
Gain/(loss) on derivatives | 186,800 | 84,500 | ||||||
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) on Derivatives, Effect Net of Tax | 4,600 | 4,300 | ||||||
Gains on foreign currency translation | (89,800) | (80,200) | ||||||
Total accumulated other comprehensive income | 101,600 | 8,600 | ||||||
Total shareholders’ equity | 2,997,600 | 2,725,500 | ||||||
Total liabilities and shareholders’ equity | $ 3,426,100 | $ 3,095,000 | ||||||
Ordinary shares, issued | 60,395,839 | 60,395,839 | ||||||
Ordinary shares, par value | $ 0.0001 | $ 0.0001 | ||||||
Preference shares, issued | 11,000,000 | 11,000,000 | ||||||
Parent Company | 5.950% Preference Shares (AHL PRC) | ||||||||
SHAREHOLDERS’ EQUITY | ||||||||
Preference shares, value | $ 0 | $ 0 | ||||||
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 | $ 0.0015144558 | ||||||
Parent Company | 5.625% Preference Shares (AHL PRE) | ||||||||
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 | ||||||
Restatement Adjustment | Retained earnings | ||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||
Cumulative Effect on Retained Earnings, before Tax | $ 15,600 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Condensed Financial Statements, Captions [Line Items] | ||||
Dividend income | $ 167.3 | $ 209.1 | $ 207.1 | |
Other income (1) | 49.8 | [1] | 4.9 | 9 |
Total revenues | 2,835.5 | 2,592.6 | 2,531.9 | |
Expenses | ||||
General, administrative and corporate expenses | (410.9) | (521.6) | (491.7) | |
Other expenses | (10.8) | (1.7) | (2.7) | |
(Loss) from operations before income taxes | (31.5) | (218.8) | (156) | |
Income tax (expense)/benefit | (8.6) | (22.9) | 10.2 | |
Net (loss) | (40.1) | (241.7) | (145.8) | |
Proportion due to non-controlling interest | 0 | 1.2 | (1) | |
Net (loss)/income attributable to Aspen Insurance Holdings Limited’s ordinary shareholders | (40.1) | (240.5) | (146.8) | |
Other Comprehensive Income: | ||||
Change in unrealized gains on investments | 102.3 | 151.3 | (76.5) | |
Other comprehensive income/(loss), net of tax | 93 | 130.5 | (66) | |
Total comprehensive income/(loss) attributable to Aspen Insurance Holdings Limited’s ordinary shareholders | 52.9 | (110) | (212.8) | |
Parent Company | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Equity in net earnings of subsidiaries and other investments, equity method | (92.1) | (415.1) | (371.3) | |
Dividend income | 141.5 | 270 | 340.3 | |
Net realized and unrealized investment gains/(losses) | 2.5 | 2.6 | (5.1) | |
Total revenues | 51.9 | (142.5) | (36.1) | |
Expenses | ||||
General, administrative and corporate expenses | (74.6) | (70.2) | (83.8) | |
Interest expense | (14.3) | (25.7) | (25.9) | |
Other expenses | (3.1) | (3.3) | 0 | |
(Loss) from operations before income taxes | (40.1) | (241.7) | (145.8) | |
Income tax (expense)/benefit | 0 | 0 | 0 | |
Net (loss) | (40.1) | (241.7) | (145.8) | |
Proportion due to non-controlling interest | 0 | 1.2 | (1) | |
Net (loss)/income attributable to Aspen Insurance Holdings Limited’s ordinary shareholders | (40.1) | (240.5) | (146.8) | |
Other Comprehensive Income: | ||||
Change in unrealized gains on investments | 102.3 | 151.3 | (76.5) | |
Net change from current period hedged transactions | 0.3 | 4 | (1.8) | |
Change in foreign currency translation adjustment | (9.6) | (24.8) | 12.3 | |
Other comprehensive income/(loss), net of tax | 93 | 130.5 | (66) | |
Total comprehensive income/(loss) attributable to Aspen Insurance Holdings Limited’s ordinary shareholders | $ 52.9 | $ (110) | $ (212.8) | |
[1] | 2020 includes the gain on sale of our renewal rights on our surety insurance book of business to a third party, totaling $43.1 million. |
Schedule II - Condensed Finan_4
Schedule II - Condensed Financial Information of Registrant Statements of Cash Flows (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||||
Jan. 31, 2015 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Cash flows (used in)/from operating activities: | ||||||
Share-based compensation | $ 0 | $ 0 | $ 10.1 | |||
Amortization of right-of-use operating lease assets | 11.8 | 13.4 | 0 | |||
Interest on operating lease liability | (5.5) | (4.6) | ||||
Change in operating lease liabilities | (17.3) | (18) | 0 | |||
Net cash (used in) operating activities | (672.7) | (337.8) | (304.5) | |||
Cash flows from investing activities: | ||||||
Proceeds/(purchases) of short term investments | (58.3) | (193.6) | (16.4) | |||
Repayment of loan notes issued by Silverton | 0 | (125) | (125) | |||
Payments for acquisitions and investments, net of cash acquired | (0.5) | (1.1) | ||||
Payments for (Proceeds from) Other Investing Activities | 0 | 0 | (100) | |||
Net cash from investing activities | 1,151.2 | 218.3 | 657.3 | |||
Cash flows from/(used in) financing activities: | ||||||
Proceeds from the issuance of ordinary shares, net of issuance costs | 0 | 1.4 | 2.7 | |||
Ordinary share repurchase | 0 | (0.1) | 0 | |||
Buy-out of minority interest | 0 | (0.8) | 0 | |||
Cash paid for withholdings purposes | [1] | 0 | (2.8) | (4.7) | ||
Net cash from/(used in) financing activities | 223.5 | 65.2 | (307.2) | |||
Cash and cash equivalents at beginning of period | 1,030.5 | 1,083.7 | $ 1,054.8 | |||
Cash and cash equivalents at end of period | 1,747.3 | 1,030.5 | 1,083.7 | |||
Parent Company | ||||||
Cash flows (used in)/from operating activities: | ||||||
Net income (1) (excluding equity in net earnings of subsidiaries) | 52 | 174.6 | 224.5 | |||
Share-based compensation | 0 | 0 | 10.1 | |||
Realized and unrealized losses/(gains) | 1.5 | 9.6 | (0.7) | |||
Loss on derivative contracts | (0.3) | (4) | 1.8 | |||
Amortization of right-of-use operating lease assets | 0.4 | 0.3 | 0 | |||
Interest on operating lease liability | (0.4) | 0.2 | 0 | |||
Change in other assets | 0.5 | 2.1 | (0.2) | |||
Change in accrued expenses and other payables | 15.9 | (51.2) | 51.1 | |||
Change in intercompany activities | 41.6 | (59) | 63.9 | |||
Change in operating lease liabilities | 0 | (0.5) | 0 | |||
Net cash (used in) operating activities | 111.2 | 72.1 | 350.5 | |||
Cash flows from investing activities: | ||||||
(Purchases) of fixed income securities | 75.6 | (75.6) | 79.4 | |||
Investment in subsidiaries | (87.3) | (82.7) | (215.9) | |||
Repayment of loan notes issued by Silverton | 0 | 0 | 18.6 | |||
Net cash from investing activities | (11.7) | (158.3) | (117.9) | |||
Cash flows from/(used in) financing activities: | ||||||
Proceeds from the issuance of ordinary shares, net of issuance costs | 0 | 1.4 | 2.7 | |||
Capital contribution | 0 | 241.6 | 0 | |||
Ordinary share repurchase | 0 | (0.1) | 0 | |||
Ordinary and preference share dividends paid | (44.5) | (35.9) | (73.4) | |||
Repayment of long-term debt issued by Silverton | 0 | 7.7 | 0 | |||
Realized loss on debt extinguishment | 0 | (5.5) | (8.6) | |||
Cash paid for withholdings purposes | [1] | 0 | 0 | (4.7) | ||
Cash and Cash Equivalents, Period Increase (Decrease) | 55 | (18.2) | 23.6 | |||
Net cash from/(used in) financing activities | (44.5) | 68 | (209) | |||
Cash and cash equivalents at beginning of period | 37.4 | 55.6 | 32 | |||
Cash and cash equivalents at end of period | 92.4 | 37.4 | 55.6 | 32 | ||
MVI | ||||||
Cash flows from investing activities: | ||||||
Payments for acquisitions and investments, net of cash acquired | $ (0.8) | 0 | 0 | (0.2) | $ (0.1) | |
Parent | ||||||
Cash flows from/(used in) financing activities: | ||||||
Buy-out of minority interest | 0 | (0.8) | 0 | |||
Parent | Parent Company | ||||||
Cash flows from/(used in) financing activities: | ||||||
Long-term debt repayment | $ 0 | $ (125) | $ (125) | |||
[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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Deferred Policy Acquisition Costs | $ 306.6 | $ 291.1 | $ 248.5 | |
Net Reserves for Losses and LAE | 3,970.1 | 4,632 | 4,996.6 | $ 5,234.3 |
Net Reserves for Unearned Premiums | 1,363.7 | 1,294 | 1,150.3 | |
Net earned premium | 2,532.6 | 2,293.3 | 2,214.7 | |
Net Investment Income | 154.6 | 197.3 | 198.2 | |
Losses and LAE Expenses | 1,840.8 | 1,679.7 | 1,573 | |
Policy Acquisition Expenses | 465.7 | 412.7 | 371.6 | |
Net written premiums | 2,582.9 | 2,427.9 | 2,082 | |
General and Administrative Expenses | 308 | 341.5 | 357.7 | |
Reinsurance | ||||
Deferred Policy Acquisition Costs | 206.8 | 210.3 | 208.3 | |
Net Reserves for Losses and LAE | 2,095.7 | 2,605.9 | 2,843.6 | |
Net Reserves for Unearned Premiums | 617.6 | 599.9 | 616 | |
Net earned premium | 1,292.1 | 1,255.2 | 1,256.4 | |
Losses and LAE Expenses | 958.6 | 917.9 | 927 | |
Policy Acquisition Expenses | 246 | 264.9 | 260.9 | |
Net written premiums | 1,302.1 | 1,251.1 | 1,182.9 | |
General and Administrative Expenses | 110.8 | 111.7 | 118.5 | |
Insurance | ||||
Deferred Policy Acquisition Costs | 99.8 | 80.8 | 40.2 | |
Net Reserves for Losses and LAE | 1,874.4 | 2,026.1 | 2,153 | |
Net Reserves for Unearned Premiums | 746.1 | 694.1 | 534.3 | |
Net earned premium | 1,240.5 | 1,038.1 | 958.3 | |
Losses and LAE Expenses | 882.2 | 761.8 | 646 | |
Policy Acquisition Expenses | 219.7 | 147.8 | 110.7 | |
Net written premiums | 1,280.8 | 1,176.8 | 899.1 | |
General and Administrative Expenses | $ 197.2 | $ 229.8 | $ 239.2 |
Schedule IV - Reinsurance Premi
Schedule IV - Reinsurance Premiums Written and Premiums Earned (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |||
Direct | $ 2,042.8 | $ 1,956.9 | $ 1,951.2 |
Assumed | 1,660.8 | 1,485.5 | 1,495.7 |
Ceded | (1,120.7) | (1,014.5) | (1,364.9) |
Net written premiums | 2,582.9 | 2,427.9 | 2,082 |
Gross Amount | 2,027.1 | 1,927.5 | 1,940.5 |
Assumed From Other Companies | 1,616.4 | 1,494.9 | 1,593.9 |
Ceded | (1,110.9) | (1,129.1) | (1,319.7) |
Net premiums earned | $ 2,532.6 | $ 2,293.3 | $ 2,214.7 |
Percentage of Amount Assumed to Net | 63.80% | 65.20% | 72.00% |
Schedule V - Valuation and Qu_2
Schedule V - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Premiums receivable from underwriting activities | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 23 | $ 16.2 | $ 5.2 |
Charged to Costs and Expenses | 11 | 6.8 | 11 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 0 | 0 | 0 |
Balance at End of Year | 34 | 23 | 16.2 |
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 |