Cover Page
Cover Page - shares | 12 Months Ended | |
Dec. 31, 2021 | Apr. 15, 2022 | |
Document Information [Line Items] | ||
Document Type | 20-F | |
Document Registration Statement | false | |
Document Annual Report | true | |
Document Period End Date | Dec. 31, 2021 | |
Current Fiscal Year End Date | --12-31 | |
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 | 2021 | |
Document Fiscal Period Focus | FY | |
Entity Central Index Key | 0001267395 | |
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 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Auditor [Line Items] | |
Auditor Name | KPMG LLP |
Auditor Location | London |
Auditor Firm ID | 1118 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | ||
Investments: | ||||
Debt Securities, Available-for-sale | $ 4,881,600 | $ 4,348,100 | ||
Short-term investments, available for sale | 10,100 | |||
Short-term investments, trading at fair value | 2,000 | |||
Catastrophe bonds, trading at fair value ( cost — 2021: $5.3 and $18.8) | 3,400 | 18,800 | ||
Privately-held Investments | 307,100 | 299,300 | ||
Investments, equity method | 3,900 | 900 | ||
Other investments, at fair value | 151,300 | 109,400 | ||
Investments, Excluding Derivative Assets | 6,516,900 | 5,755,300 | ||
Cash and cash equivalents (including cash within consolidated variable interest entities of — $75.2 and $69.9) | [1] | 1,314,100 | 1,747,300 | |
Reinsurance recoverables: | ||||
Unpaid losses (net of allowance for expected credit losses of 2021: $3.3 — 2020: $3.8) | 3,298,100 | 3,195,200 | ||
Ceded unearned premiums | 596,100 | 453,700 | ||
Receivables: | ||||
Underwriting premiums receivables (net of allowance for expected credit losses of 2021:$30.2 — 2020: $34.0) (1) | 1,304,600 | 1,185,000 | [2] | |
Other receivables | 153,000 | 135,200 | ||
Funds withheld | 103,700 | 98,000 | ||
Deferred policy acquisition costs | 290,800 | 306,600 | ||
Derivatives at fair value | 12,900 | 26,800 | ||
Receivables for securities sold | 19,400 | 1,400 | ||
Office properties and equipment | 114,500 | 77,400 | ||
Right-of-use operating lease assets | 83,400 | 74,100 | ||
Income taxes refundable | 6,400 | 3,400 | ||
Other assets | 8,300 | 8,400 | ||
Intangible assets and goodwill | 21,900 | 22,800 | ||
Total assets | 13,844,100 | 13,090,600 | ||
Insurance reserves | ||||
Losses and loss adjustment expenses | 7,611,800 | 7,165,300 | ||
Unearned premiums | 2,112,300 | 1,817,400 | ||
Total insurance reserves | 9,724,100 | 8,982,700 | ||
Reinsurance Payable | 575,700 | 572,800 | [2] | |
Payables | ||||
Income taxes payable | 4,400 | 8,800 | [2] | |
Deferred tax liabilities | 2,800 | 5,200 | [2] | |
Accrued expenses and other payables | 289,300 | 214,400 | ||
Payables for securities purchased | 44,600 | 0 | ||
Operating lease liabilities | 115,200 | 106,000 | ||
Liabilities under derivative contracts | 13,300 | 13,600 | ||
Long-term debt | 299,900 | 299,900 | ||
Total liabilities | 11,069,300 | 10,203,400 | ||
Commitments and contingent liabilities (see Note 20) | 0 | 0 | ||
Ordinary shares: | ||||
60,395,839 ordinary shares of par value $0.01 each (December 31, 2020 — 60,395,839 shares) | 604 | 604 | ||
Additional paid-in capital | 1,514,700 | 1,469,700 | ||
Retained earnings | 1,382,500 | 1,397,200 | [2] | |
Accumulated other comprehensive (loss)/income | (123,000) | 19,700 | [2],[3] | |
Total shareholders' equity | 2,774,800 | 2,887,200 | [2] | |
Total liabilities and shareholders’ equity | 13,844,100 | 13,090,600 | ||
Fixed Income Investments | ||||
Investments: | ||||
Debt Securities, Available-for-sale | 4,881,600 | 4,348,100 | ||
Debt Securities, Trading | $ 1,157,500 | 855,600 | ||
Short-term investments | ||||
Investments: | ||||
Short-term investments, available for sale | 87,800 | |||
Short-term investments, trading at fair value | $ 35,400 | |||
[1] | includes restricted cash of $364.9 million (2020 — $296.0 million) | |||
[2] | As at December 31, 2020, underwriting premiums receivables, retained earnings and accumulated other comprehensive income have been corrected to account for the correction of foreign exchange movements on underwriting premium receivable which should have been matched with an underwriting premium receivable payment. Income taxes payable and deferred tax liabilities have been corrected for historic current and deferred income taxes on Aspen U.K’s branches due to the deficiency in the completeness and accuracy of branch data and associated application thereof in respect of local tax rules in various jurisdictions. Underwriting premium receivables and reinsurance premiums payable have been corrected for immaterial adjustments. Refer to Note 26 in these consolidated financial statements, “Correction of Immaterial Errors” for further details. | |||
[3] | The opening balances for retained earnings, cumulative foreign currency translation, and the net loss and change for the year on foreign cumulative translation adjustments have been corrected to account for the corrections mentioned on the pages of the consolidated balance sheet and the consolidated statement of operations and other comprehensive income. Refer to Note 26 in these consolidated financial statements, “Correction of Immaterial Errors” for further details. |
CONSOLIDATED BALANCE SHEETS Con
CONSOLIDATED BALANCE SHEETS Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Fixed income securities, available for sale amortized cost | $ 4,823.5 | $ 4,126.7 |
Available-for-sale, net of allowance for expected credit losses | 2.7 | 0.2 |
Fixed income securities, trading, amortized cost | 1,155.5 | 844.8 |
Short term investments available for sale, amortized cost | 10.1 | 88 |
Short-term investments, trading, amortized cost | 2 | 35.4 |
Catastrophe Bonds, Fair Value Disclosure | 5.3 | 18.8 |
Privately-held investments, cost, trading at fair value | 309.2 | 319.7 |
Cash and cash equivalents, within VIEs | 75.2 | 69.9 |
Premium Receivable, Allowance for Credit Loss | $ 30.2 | $ 34 |
Ordinary shares, issued | 60,395,839 | 60,395,839 |
Ordinary shares, par value | $ 0.01 | $ 0.01 |
Unpaid losses (net of allowance for expected credit losses of 2021: $3.3 — 2020: $3.8) | $ 3.3 | $ 3.8 |
Restricted cash | 364.9 | 296 |
Fixed maturities | ||
Fixed income securities, available for sale amortized cost | 4,833.6 | 4,214.7 |
Short-term investments | ||
Fixed income securities, trading, amortized cost | $ 2 | $ 35.4 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Revenues | |||||
Net earned premiums | $ 2,410.5 | $ 2,527.5 | [1] | $ 2,293.3 | [1] |
Net investment income | 147.5 | 154.6 | 197.3 | ||
Net realized and unrealized investment gains | 56.2 | 98.5 | 97.1 | ||
Other income | 14.7 | 49.8 | 4.9 | ||
Total revenues | 2,628.9 | 2,830.4 | [1] | 2,592.6 | [1] |
Expenses | |||||
Losses and loss adjustment expenses | 1,693.3 | 1,840.8 | 1,679.7 | ||
Amortization of deferred policy acquisition costs | 414.1 | 465.7 | 412.7 | ||
General, administrative and corporate expenses | 418 | 410.9 | 521.6 | ||
Interest on long-term debt | 14.3 | 33.9 | 20.2 | ||
Change in fair value of derivatives | 35.9 | 65.1 | 144.2 | ||
Change in fair value of loan notes issued by variable interest entities | 0 | 0 | 3.1 | ||
Realized and unrealized investment losses | 47.4 | 27.4 | 10.9 | ||
Realized loss on debt extinguishment | 0 | 0 | 5.5 | ||
Net realized and unrealized foreign exchange (gains)/losses | 40 | (13.8) | [1] | (9.6) | [1] |
Other expenses | 10.8 | 10.8 | 1.7 | ||
Total expenses | 2,593.8 | 2,868.4 | 2,809.2 | ||
Income (loss) from operations before income taxes | 35.1 | (38) | [1] | (216.6) | [1] |
Income tax (expense) | (5.3) | (18.4) | [1] | (22.9) | [1] |
Net income/(loss) | 29.8 | (56.4) | [1],[2] | (239.5) | [1],[2] |
Amount attributable to non-controlling interest | 0 | 0 | 1.2 | ||
Net income/(loss) attributable to Aspen Insurance Holdings Limited’s ordinary shareholders (2) | 29.8 | (56.4) | [1] | (238.3) | [1] |
Available for sale investments: | |||||
Reclassification adjustment for net realized (losses) on investments included in net income/(loss) | (20.4) | 67.1 | 6.8 | ||
Change in net unrealized (losses)/gains on available for sale securities held | (137.2) | 175.6 | 171.7 | ||
Net change from current period hedged transactions | (6.2) | 0.3 | 4.8 | ||
Change in foreign currency translation adjustment | 21.4 | (11.9) | [1] | (28.2) | [1] |
Other comprehensive (loss)/income, before income taxes | (142.4) | 96.9 | 141.5 | ||
Income tax (expense)/benefit thereon: | |||||
Change in net unrealized gains on available for sale securities held (1) | (0.3) | (0.5) | [1] | (13.6) | [1] |
Change in net unrealized gains on available for sale securities held | 0 | 0 | (0.8) | ||
Other Comprehensive Income (Loss), Foreign Currency Translation Gain (Loss) Arising During Period, Tax | 0 | 0 | (3.2) | ||
Total income tax (expense) allocated to other comprehensive income/(loss) (1) | (0.3) | (0.5) | [1] | (11.2) | [1] |
Other comprehensive (loss)/income, net of tax | (142.7) | 96.4 | [1] | 130.3 | [1] |
Total comprehensive (loss)/income attributable to Aspen Insurance Holdings Limited's ordinary shareholders | (112.9) | 40 | [1] | (108) | [1] |
Net realized and unrealized foreign exchange gains | 40 | (13.8) | [1] | (9.6) | [1] |
Change in foreign currency translation adjustment | 21.4 | (11.9) | [1] | (28.2) | [1] |
Insurance | |||||
Revenues | |||||
Net earned premiums | $ 1,291.7 | 1,239.8 | 1,038.1 | ||
Restatement Adjustment | |||||
Expenses | |||||
Net realized and unrealized foreign exchange (gains)/losses | 1.4 | (2.2) | |||
Income tax (expense) | (9.8) | ||||
Net income/(loss) | (16.3) | 2.2 | |||
Net realized and unrealized foreign exchange gains | $ 1.4 | $ (2.2) | |||
[1] | Net earned premium has been corrected for immaterial errors in relation to gross written premium and reinsurance premium payables for periods 2020 and prior. Net realized and unrealized exchange gains/(losses) and change in foreign currency translation adjustment have been corrected to account for the correction of foreign exchange movements on underwriting premium receivables which should have been matched with an underwriting premium receivable payment for periods 2020 and prior. Income tax expense has been corrected for historic current and deferred income taxes on Aspen U.K’s branches due to the deficiency in the completeness and accuracy of branch data and associated application thereof in respect of local tax rules in various jurisdictions. Total revenues, net income/(loss) and other comprehensive income/(loss) before and after income taxes have been corrected as a result of the corrections mentioned above for periods 2020 and 2019. Refer to Note 26 in these consolidated financial statements, “Correction of Immaterial Errors” for further details. | ||||
[2] | The opening balances for retained earnings, cumulative foreign currency translation, and the net loss and change for the year on foreign cumulative translation adjustments have been corrected to account for the corrections mentioned on the pages of the consolidated balance sheet and the consolidated statement of operations and other comprehensive income. Refer to Note 26 in these consolidated financial statements, “Correction of Immaterial Errors” for further details. |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Millions | Total | Ordinary shares | Preference shares | Non-controlling interest | Minority interest buy-out | Additional paid-in capital | Additional paid-in capitalOrdinary shares | Additional paid-in capitalPreference shares | Retained earnings | Retained earningsPreference shares | Cumulative foreign currency translation adjustments: | Unrealized appreciation on available for sale investments: | Gain on derivatives, net of taxes | Restatement Adjustment | Restatement AdjustmentRetained earnings | Restatement AdjustmentCumulative foreign currency translation adjustments: | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 0.1 | $ 0 | $ 3.7 | $ 967.5 | $ 1,776.6 | [1] | $ (140.5) | [1] | $ (66.8) | [1] | $ 0.3 | |||||||||||
Net change attributable to non-controlling interest for the year | $ 1.2 | (1.2) | ||||||||||||||||||||
Shares issued | 0.6 | $ 0.8 | $ 241.6 | |||||||||||||||||||
Capital contribution | 0 | |||||||||||||||||||||
Ordinary shares repurchased and canceled | (0.1) | |||||||||||||||||||||
Share-based compensation | [2] | (9.9) | ||||||||||||||||||||
Consideration of minority interest | (0.8) | |||||||||||||||||||||
Buy-out of minority interest | 0.8 | $ (2.5) | 2.5 | |||||||||||||||||||
Net income/(loss) for the year | (239.5) | [1],[3] | $ 2.2 | |||||||||||||||||||
Dividends | $ (35.9) | |||||||||||||||||||||
Change for the year, net of income taxes | (25) | [1] | 151.3 | [1] | $ (0.2) | |||||||||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 2,628 | 0.6 | 0 | 0 | 1,201.7 | [4] | 1,502.4 | [1] | (165.5) | [1] | 84.5 | [1] | 4.3 | $ (14.4) | (85.1) | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | Accounting Standards Update 2016-13 [Member] | 0 | |||||||||||||||||||||
Net change from current period hedged transactions | 4 | |||||||||||||||||||||
Total accumulated other comprehensive (loss)/income | [1] | (76.7) | ||||||||||||||||||||
Net change attributable to non-controlling interest for the year | 0 | 0 | ||||||||||||||||||||
Shares issued | 0 | 0 | 0 | |||||||||||||||||||
Capital contribution | 268 | |||||||||||||||||||||
Ordinary shares repurchased and canceled | 0 | |||||||||||||||||||||
Share-based compensation | 0 | |||||||||||||||||||||
Consideration of minority interest | 0 | |||||||||||||||||||||
Buy-out of minority interest | 0 | 0 | 0 | |||||||||||||||||||
Net income/(loss) for the year | (56.4) | [1],[3] | (16.3) | |||||||||||||||||||
Dividends | (44.5) | |||||||||||||||||||||
Change for the year, net of income taxes | (11.9) | [1] | 108 | [1] | (2.3) | |||||||||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 2,887.2 | [5] | 0.6 | 0 | 0 | 1,469.7 | [4] | 1,397.2 | (177.4) | [1] | 192.5 | [1] | 4.6 | $ (12.2) | $ (85.3) | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | Accounting Standards Update 2016-13 [Member] | [6] | (4.3) | ||||||||||||||||||||
Net change from current period hedged transactions | 0.3 | |||||||||||||||||||||
Total accumulated other comprehensive (loss)/income | [1],[5] | 19.7 | ||||||||||||||||||||
Net change attributable to non-controlling interest for the year | 0 | 0 | ||||||||||||||||||||
Shares issued | 0 | $ 0 | $ 0 | |||||||||||||||||||
Capital contribution | 45 | |||||||||||||||||||||
Ordinary shares repurchased and canceled | 0 | |||||||||||||||||||||
Share-based compensation | 0 | |||||||||||||||||||||
Consideration of minority interest | 0 | |||||||||||||||||||||
Buy-out of minority interest | 0 | $ 0 | 0 | |||||||||||||||||||
Net income/(loss) for the year | 29.8 | |||||||||||||||||||||
Dividends | $ (44.5) | |||||||||||||||||||||
Change for the year, net of income taxes | 21.4 | (157.9) | ||||||||||||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 2,774.8 | $ 0.6 | $ 0 | $ 0 | $ 1,514.7 | [4] | 1,382.5 | $ (156) | $ 34.6 | (1.6) | ||||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | Accounting Standards Update 2016-13 [Member] | $ 0 | |||||||||||||||||||||
Net change from current period hedged transactions | $ (6.2) | |||||||||||||||||||||
Total accumulated other comprehensive (loss)/income | $ (123) | |||||||||||||||||||||
[1] | The opening balances for retained earnings, cumulative foreign currency translation, and the net loss and change for the year on foreign cumulative translation adjustments have been corrected to account for the corrections mentioned on the pages of the consolidated balance sheet and the consolidated statement of operations and other comprehensive income. Refer to Note 26 in these consolidated financial statements, “Correction of Immaterial Errors” for further details. | |||||||||||||||||||||
[2] | Additional paid-in capital includes $775.0 million less issue costs of $21.5 million of share premium in relation to preference shares (December 31, 2020 and 2019 — $775.0 million less issue costs of $21.5 million) | |||||||||||||||||||||
[3] | Net earned premium has been corrected for immaterial errors in relation to gross written premium and reinsurance premium payables for periods 2020 and prior. Net realized and unrealized exchange gains/(losses) and change in foreign currency translation adjustment have been corrected to account for the correction of foreign exchange movements on underwriting premium receivables which should have been matched with an underwriting premium receivable payment for periods 2020 and prior. Income tax expense has been corrected for historic current and deferred income taxes on Aspen U.K’s branches due to the deficiency in the completeness and accuracy of branch data and associated application thereof in respect of local tax rules in various jurisdictions. Total revenues, net income/(loss) and other comprehensive income/(loss) before and after income taxes have been corrected as a result of the corrections mentioned above for periods 2020 and 2019. Refer to Note 26 in these consolidated financial statements, “Correction of Immaterial Errors” for further details. | |||||||||||||||||||||
[4] | Additional paid-in capital includes $775.0 million less issue costs of $21.5 million of share premium in relation to preference shares (December 31, 2020 and 2019 — $775.0 million less issue costs of $21.5 million) | |||||||||||||||||||||
[5] | As at December 31, 2020, underwriting premiums receivables, retained earnings and accumulated other comprehensive income have been corrected to account for the correction of foreign exchange movements on underwriting premium receivable which should have been matched with an underwriting premium receivable payment. Income taxes payable and deferred tax liabilities have been corrected for historic current and deferred income taxes on Aspen U.K’s branches due to the deficiency in the completeness and accuracy of branch data and associated application thereof in respect of local tax rules in various jurisdictions. Underwriting premium receivables and reinsurance premiums payable have been corrected for immaterial adjustments. Refer to Note 26 in these consolidated financial statements, “Correction of Immaterial Errors” for further details. | |||||||||||||||||||||
[6] | 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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Cash flows from/used in operating activities: | |||||
Net income/(loss) | $ 29.8 | $ (56.4) | [1] | $ (239.5) | [1] |
Proportion due to non-controlling interest | 0 | 0 | 1.2 | ||
Adjustments to reconcile net income to net cash flows from operating activities: | |||||
Depreciation and amortization | 53.3 | 45.8 | 39.8 | ||
Impairment of lease assets | 0.4 | 12.9 | 12.3 | ||
Amortization of right-of-use operating lease assets | 12 | 11.8 | 13.4 | ||
Interest on operating lease liabilities | 5.5 | 5.5 | 4.6 | ||
Realized and unrealized investment gains | (56.2) | (98.5) | (97.1) | ||
Realized and unrealized investment losses | 47.4 | 27.4 | 10.9 | ||
Deferred tax expense/(benefit) | (3.2) | (1) | [1] | 24.7 | [1] |
Change in fair value of loan notes issued by variable interest entities | 0 | 0 | 3.1 | ||
Net realized and unrealized investment foreign exchange (gains)/losses (1) | 13 | (25.3) | [1] | 27.9 | [1] |
Net change from current period hedged transactions | (6.2) | 0.3 | 4.8 | ||
Unrealized (gain)/loss on real estate fund in net investment income | (20.5) | 0 | 0 | ||
Insurance reserves: | |||||
Losses and loss adjustment expenses | 483.3 | 146.9 | (203) | ||
Unearned premiums | 310.2 | 68 | 18 | ||
Reinsurance recoverables: | |||||
Unpaid losses | 109.5 | 864.9 | 236.3 | ||
Ceded unearned premiums | (143.1) | (9.6) | 116 | ||
Other receivables | (19.4) | (17.4) | (0.4) | ||
Deferred policy acquisition costs | 13.2 | (13.3) | (41.1) | ||
Reinsurance premiums payable | 1.2 | 129.7 | [1] | 19.5 | [1] |
Funds withheld | (5.7) | (13) | [1] | 6.8 | [1] |
Premiums receivable | (142.9) | 79.9 | 142.8 | ||
Income tax payable | (7.6) | 7.6 | [1] | (1.2) | [1] |
Accrued expenses and other payable | 73.5 | 2.4 | (19.3) | ||
Fair value of derivatives and settlement of liabilities under derivatives | 13.6 | (87.5) | 73.8 | ||
Long-term debt and loan notes issued by variable interest entities | 0 | 0.1 | 0.1 | ||
Operating lease liabilities | (17.5) | (17.3) | (18) | ||
Other assets | 0.1 | (6.8) | (1.6) | ||
Net cash from/(used in) operating activities | 524.7 | (672.7) | (337.8) | ||
Cash flows from investing activities: | |||||
(Purchases) of fixed income securities — Available for sale | (2,217.3) | (1,632) | (1,650.7) | ||
(Purchases) of fixed income securities — Trading | (866.4) | (281.9) | (1,169.1) | ||
Proceeds from sales and maturities of fixed income securities — Available for sale | 1,538.1 | 2,415.8 | 2,105.3 | ||
Proceeds from sales and maturities of fixed income securities — Trading | 548.2 | 554.4 | 1,302.7 | ||
Net proceeds/(purchases) of catastrophe bonds — Trading | 14.3 | 9.8 | 7.5 | ||
(Purchases) of short-term investments — Available for sale | (17.2) | (216.1) | (182.7) | ||
Proceeds from sale of short-term investments — Available for sale | 99.6 | 246.1 | 159 | ||
(Purchases) of short-term investments — Trading | (26.8) | (58.3) | (193.6) | ||
Proceeds from sale of short-term investments — Trading | 60.8 | 103.8 | 141.1 | ||
(Purchases) of privately-held investments — Trading | (205.1) | (92.8) | (287.3) | ||
Proceeds from sale of privately-held investments — Trading | 182.1 | 64.9 | 9.8 | ||
Net change in (payable)/receivable for securities (purchased)/sold | 26.6 | 1.5 | (0.4) | ||
(Purchases) of other investments | (20) | 0 | 0 | ||
Net proceeds from sales of other investments | 0 | 71.1 | 0 | ||
(Net) purchases of equipment | (64.5) | (40.7) | (22.2) | ||
Investment in multiline reinsurer | (2.5) | (0.5) | 0 | ||
Net sales/(purchases) of investments, equity method | (0.2) | 6.1 | (1.1) | ||
Net cash (used in)/from investing activities | (950.3) | 1,151.2 | 218.3 | ||
Cash flows from financing activities: | |||||
Proceeds from the net issuance of ordinary shares, net of issuance costs | 0 | 0 | 1.4 | ||
Ordinary shares canceled | 0 | 0 | (0.1) | ||
Capital contribution | 45 | 268 | 0 | ||
Preference share (redemption) | 0 | 0 | (241.6) | ||
Buy-out of minority interest | 0 | 0 | (0.8) | ||
Repayment of long-term debt issued by Silverton | 0 | 0 | (7.7) | ||
Dividends paid on preference shares | (44.5) | (44.5) | (35.9) | ||
Long-term debt repayment | 0 | 0 | |||
Make-whole payment | 0 | 0 | |||
Cash paid for tax withholding purposes | 0 | 0 | (2.8) | ||
Net cash from financing activities | 0.5 | 223.5 | 65.2 | ||
Effect of exchange rate movements on cash and cash equivalents | (8.1) | 14.8 | 1.1 | ||
Increase (decrease) in cash and cash equivalents | (433.2) | 716.8 | (53.2) | ||
Cash and cash equivalents at beginning of period | 1,747.3 | 1,030.5 | 1,083.7 | ||
Cash and cash equivalents at end of period | 1,314.1 | 1,747.3 | 1,030.5 | ||
Supplemental disclosure of cash flow information: | |||||
Net cash paid/(received) during the period for income taxes | 15.7 | 15 | (4.7) | ||
Cash paid during the period for interest | $ 14 | $ 14 | $ 19 | ||
[1] | Net loss, deferred tax expense/(benefit), net realized and unrealized exchange gains/(losses), income tax payable and underwriting premium receivable have been corrected to account for the correction mentioned on the pages of the consolidated balance sheet and the consolidated statement of operations and other comprehensive income. These corrections have had no impact on the overall cashflow from operating, investing, or financing activities. |
History and Organization
History and Organization | 12 Months Ended |
Dec. 31, 2021 | |
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. (“ACML”) 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, 2021 | |
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 prepared on a going concern basis. (a) Use of Estimates Assumptions and estimates made by management have a significant effect on the amounts reported within the consolidated financial statements. The most significant of these relate to losses and loss adjustment expenses, reinsurance recoverables, gross written premiums and commissions which have not been reported to the Company such as those relating to proportional treaty reinsurance contracts, unrecognized tax benefits, recoverability of deferred tax assets, 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. 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. 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. Accounting for Retroactive Reinsurance Agreements. Retroactive reinsurance agreements are reinsurance agreements under which a reinsurer agrees to reimburse the Company as a result of past insurable events. For these agreements, the excess of the amounts ultimately collectible under the agreement over the consideration paid is recognized as a deferred gain liability which is amortized into income over the settlement period of the ceded reserves once the paid losses have exceeded the minimum retention. The amount of the deferral is recalculated each period based on actual loss payments and updated estimates of ultimate losses. If the consideration paid exceeds the ultimate losses collectible under the agreement, the net loss on the retroactive reinsurance agreement is recognized within income immediately. 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. 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. Commissions received related to reinsurance premiums ceded are netted against broker commissions in determining acquisition costs eligible for deferral. 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 and non-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 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 investments in real estate funds. 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 income also includes changes in fair value and income distribution from investments in real estate funds. 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 for each period, 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. (l) 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. (m) Accounting Pronouncements Accounting Pronouncements Adopted in 2021 On December 18, 2019, Financial Accounting Standards Board (the “FASB”) issued ASU 2019-12, “ Income Taxes (Topic 740) ” which makes amendments aimed at simplifying the accounting for income taxes. This ASU was 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 year. 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 was 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. On January 7, 2021, the FASB issued ASU 2021-01, “Reference Rate Reform (Topic 848)” which provides additional clarification on the scope of Topic 848 so that derivatives affected by the discounting transition are explicitly eligible for certain optional expedients and exceptions in Topic 848. Additionally, to clarify that a receive-variable-rate, pay-variable-rate cross-currency interest rate swap may be considered an eligible hedging instrument in a net investment hedge if both legs of the swap do not have the same repricing intervals and dates as a result of reference rate reform. This ASU was effective as of January 7, 2021. Adoption of this ASU did not have a material impact on the Company’s financial statements and disclosures. Accounting Pronouncements Not Yet Adopted Other accounting pronouncements were issued during the year ended December 31, 2021 which were either not relevant to the Company or did not impact the Company’s consolidated financial statements. (n) Correction of Immaterial Errors During the current year, management identified immaterial errors which resulted in a revision of the Company's historical financial statements, as further described below: Foreign exchange gains and losses. During the second quarter of 2021, the Company identified an error regarding incorrect treatment of foreign exchange gains and losses arising as a result of currency matching issues within Aspen U.K.’s underwriting premiums receivable. The error resulted in previous foreign exchange revaluation and translation amounts, which should have been matched with an underwriting premium receivable payment being carried over, and were incorrectly included in Aspen U.K.’s underwriting premiums receivable, thereby overstating the related asset value. Income tax expense. During the year, the Company identified an error regarding the completeness and accuracy of the information used in recognizing both current and deferred income taxes on Aspen U.K.’ branches and the associated application thereof in respect of local tax rules in the various jurisdiction. Net earned premium . During the year, the Company identified immaterial differences within gross written and re-insurance premium relating to prior year which have been corrected. The Company has concluded that these errors are immaterial to the prior period financial statements of Aspen Holdings and that correcting the income statement errors in the current period would likely materially misstate the current period financial statements. I |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company manages its underwriting operations as two distinct business segments, namely Aspen Re and Aspen Insurance. The Company has determined its reportable segments 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 income 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 income 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. 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 first party and specialty insurance, casualty and liability insurance and financial and professional lines insurance. Additionally, the insurance segment includes Aspen Underwriting Limited’s participation as a corporate member in Carbon Syndicate 4747 (“Carbon Syndicate”). 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: corporate expenses, net investment income, net realized and unrealized investment gains or losses, other 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. These income and expense items 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 does not allocate its assets by business segment as it evaluates underwriting income or loss of each business segment separately from the results of the Company’s investment portfolio. The following tables provide a summary of gross and net written and earned premiums, underwriting income or loss, ratios and reserves for each of the Company’s business segments for the twelve months ended December 31, 2021, 2020 and 2019: Twelve Months Ended December 31, 2021 Reinsurance Insurance Total ($ in millions) Underwriting Revenues Gross written premiums $ 1,597.0 $ 2,341.4 $ 3,938.4 Net written premiums 1,199.0 1,388.7 2,587.7 Gross earned premiums 1,479.2 2,139.1 3,618.3 Net earned premiums 1,118.8 1,291.7 2,410.5 Underwriting Expenses Losses and loss adjustment expenses 705.2 988.1 1,693.3 Amortization of deferred policy acquisition costs 221.6 192.5 414.1 General and administrative expenses 121.3 211.8 333.1 Underwriting income/(loss) 70.7 (100.7) (30.0) Corporate expenses (64.3) Non-operating expenses (20.6) (1) Net investment income 147.5 Realized and unrealized investment gains 56.2 Realized and unrealized investment losses (47.4) Change in fair value of derivatives (35.9) Interest expense on long term debt (14.3) Net realized and unrealized foreign exchange gains 40.0 Other income 14.7 Other expenses (10.8) Income before income taxes 35.1 Income tax (expense) (5.3) Net income $ 29.8 Net reserves for loss and loss adjustment expenses $ 2,148.4 $ 2,165.3 $ 4,313.7 Ratios Loss ratio 63.0 % 76.5 % 70.2 % Policy acquisition expense ratio 19.8 14.9 17.2 General and administrative expense ratio 10.8 16.4 13.8 Expense ratio 30.6 31.3 31.0 Combined ratio 93.6 % 107.8 % 101.2 % _______________ (1) Non-operating expenses includes $19.3 million of severance, consulting and professional services in relation to non-recurring projects and other costs, $0.4 million of impairment charges related to lease assets as a result of exiting certain office space and $0.9 million of amortization of intangible assets and other non-operating expenses. Twelve Months Ended December 31, 2020 Reinsurance Insurance Total ( $ in millions) Underwriting Revenues Gross written premiums $ 1,656.4 $ 2,042.1 $ 3,698.5 (2) Net written premiums 1,297.7 1,280.1 2,577.8 (2) Gross earned premiums 1,612.0 2,026.4 3,638.4 (2) Net earned premiums 1,287.7 1,239.8 2,527.5 (2) 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) (27.7) (59.3) (87.0) (2) 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) (13.8) (2) Other income 49.8 Other expenses (10.8) (Loss) before income taxes (38.0) (2) Income tax (expense) (18.4) (2) Net (loss) $ (56.4) (2) Net reserves for loss and loss adjustment expenses $ 2,095.7 $ 1,874.4 $ 3,970.1 Ratios Loss ratio 74.4 % 71.1 % 72.8 % Policy acquisition expense ratio 19.1 17.7 18.4 General and administrative expense ratio 8.6 15.9 12.2 Expense ratio 27.7 33.6 30.6 Combined ratio 102.1 % 104.7 % 103.4 % ________________ (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 $1.6 million of amortization of intangible assets and other non-operating expenses. (2) Net earned premium has been corrected for immaterial errors in relation to gross written premium and reinsurance premium payables for periods 2020 and prior. Net realized and unrealized exchange gains/(losses) and change in foreign currency translation adjustment have been corrected to account for the correction of foreign exchange movements on underwriting premium receivables which should have been matched with an underwriting premium receivable payment for periods 2020 and prior. Income tax expense has been corrected for historic current and deferred income tax on Aspen U.K’s branches due to the deficiency in the completeness and accuracy of branch data and associated application thereof in respect of local tax rules in various jurisdictions. Total revenues, net income/(loss) and other comprehensive income/(loss) before and after tax have been corrected as a result of the corrections mentioned above for periods 2020 and 2019. Refer to Note 26 in these consolidated financial statements, “Correction of Immaterial Errors” for further details. Twelve Months Ended December 31, 2019 Reinsurance Insurance Total ($ 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) (3) Interest expense on long term debt (20.2) Net realized and unrealized foreign exchange (losses) (9.6) (2) Other income 4.9 Other expenses (1.7) (Loss) before income taxes (216.6) (2) Income tax (expense) (22.9) Net (loss) $ (239.5) (2) 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 14.9 Expense ratio 30.0 36.3 32.9 Combined ratio 103.1 % 109.7 % 106.1 % _______________ (1) Non-operating expenses includes $103.4 million of expenses 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) Net realized and unrealized exchange gains/(losses) have been corrected to account for the correction of foreign exchange movements which should have been matched with an underwriting premium receivable payment for periods 2020 and prior, totaling a $2.2 million gain in 2019. Income/(loss) before and after tax figures have been corrected as a result of the correction to net realized and unrealized exchange gains and losses for the periods mentioned. (3) Change in fair value of derivatives includes a loss of $130.2 million in respect of interest rate swaps. Geographical Areas . The following summary presents the Company’s gross written premiums based on the location of the insured risk for the twelve months ended December 31, 2021, 2020 and 2019. For the Twelve Months Ended December 31, 2021 December 31, 2020 December 31, 2019 ($ in millions) Australia/Asia $ 275.8 $ 259.7 $ 215.9 Caribbean 12.9 6.0 9.3 Europe 140.6 92.5 82.8 United Kingdom 393.2 369.0 295.7 United States & Canada (1) 2,301.8 2,267.5 2,003.9 Worldwide excluding United States (2) 31.5 23.1 63.0 Worldwide including United States (3) 592.2 501.2 614.9 Others 190.4 179.5 156.9 Total $ 3,938.4 $ 3,698.5 $ 3,442.4 ______________ (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, 2021 | |
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, 2021, 2020 and 2019: For the Twelve Months Ended December 31, 2021 December 31, 2020 December 31, 2019 ($ in millions) Fixed income securities — Available for sale $ 87.2 $ 106.5 $ 128.2 Fixed income securities — Trading 30.2 32.8 42.0 Short-term investments — Available for sale 0.1 0.8 2.3 Short-term investments — Trading — 0.5 2.5 Fixed term deposits (included in cash and cash equivalents) 0.7 6.4 19.5 Catastrophe bonds — Trading 0.9 1.4 2.3 Privately-held investments — Trading 18.2 20.9 3.4 Other investments, at fair value (1) 21.9 (2.0) 8.9 Total 159.2 167.3 209.1 Investment expenses (11.7) (12.7) (11.8) Net investment income $ 147.5 $ 154.6 $ 197.3 _____________ (1) Other investments represents the Company’s investments in real estate funds. 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, 2021, 2020 and 2019: For the Twelve Months Ended December 31, 2021 December 31, 2020 December 31, 2019 ($ in millions) Available for sale: Fixed income securities — gross realized gains $ 22.7 $ 68.8 $ 14.4 Fixed income securities — gross realized (losses) (3.6) (1.8) (7.3) Cash and cash equivalents — gross realized gains 2.0 0.5 0.1 Cash and cash equivalents — gross realized (losses) (0.8) (0.4) (0.2) Net change in expected credit gains (2.5) 0.4 — Trading: Fixed income securities — gross realized gains 12.2 18.2 34.3 Fixed income securities — gross realized (losses) (2.0) (3.8) (2.6) Cash and cash equivalents — gross realized gains 0.1 0.2 — Cash and cash equivalents — gross realized (losses) (0.3) (0.3) (0.3) Privately-held investments — gross realized gains 0.6 — 0.2 Privately-held investments — gross realized (losses) (13.8) — (0.2) Privately-held investments — net unrealized gains/(losses) 18.1 (20.4) — Catastrophe bonds — net unrealized (losses)/gains (0.8) — 0.9 Net unrealized (losses)/gains (23.4) — 47.2 Investments — equity method: Gross realized and unrealized gain (loss) in MVI 0.1 (0.4) (0.1) Gross unrealized gain in Multi-Line Reinsurer 0.2 — — Gross realized and unrealized (loss) gain in Digital Risk — (0.3) (0.2) 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 recorded in the statement of operations $ 8.8 $ 71.1 $ 86.2 Change in available for sale net unrealized (losses)/gains: Fixed income securities (157.6) 108.5 164.9 Income tax expense (0.3) (0.5) (13.6) Total change in net unrealized (losses)/gains, net of taxes recorded in other comprehensive income $ (157.9) $ 108.0 $ 151.3 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, 2021 and December 31, 2020: As at December 31, 2021 Cost or Gross Gross Allowance for Credit Losses Fair Market ($ in millions) U.S. government $ 1,066.2 $ 24.0 $ (5.9) $ — $ 1,084.3 U.S. agency 20.7 0.8 — — 21.5 Municipal 81.2 2.0 (0.5) (0.1) 82.6 Corporate 2,176.1 47.5 (13.0) (2.3) 2,208.3 Non-U.S. government-backed corporate 138.5 0.2 (1.9) — 136.8 Non-U.S. government 250.8 1.4 (1.2) (0.3) 250.7 Asset-backed 0.5 — — — 0.5 Non-agency commercial mortgage-backed 6.6 0.3 — — 6.9 Agency mortgage-backed 1,082.9 19.1 (12.0) — 1,090.0 Total fixed income securities — Available for sale 4,823.5 95.3 (34.5) (2.7) 4,881.6 Total short-term investments — Available for sale 10.1 — — — 10.1 Total $ 4,833.6 $ 95.3 $ (34.5) $ (2.7) $ 4,891.7 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 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, 2021 and December 31, 2020: As at December 31, 2021 Cost or Gross Gross Fair Market ($ in millions) Fixed Income Securities — Trading U.S. government $ 115.9 $ 0.6 $ (0.2) $ 116.3 Municipal 3.9 0.1 — 4.0 Corporate 95.7 1.9 (0.8) 96.8 High yield loans 77.2 0.1 (0.4) 76.9 Non-U.S. government-backed corporate 13.3 — (0.2) 13.1 Non-U.S. government 34.9 — (0.4) 34.5 Asset-backed 784.3 3.3 (1.9) 785.7 Agency mortgage-backed 30.3 0.2 (0.3) 30.2 Total fixed income securities — Trading 1,155.5 6.2 (4.2) 1,157.5 Short-term investments — Trading 2.0 — — 2.0 Catastrophe bonds — Trading 5.3 — (1.9) 3.4 Privately-held investments — Trading Commercial mortgage loans $ 212.0 $ 0.4 $ (0.9) $ 211.5 Middle market loans 66.9 — (1.5) 65.4 Asset-backed securities 26.8 — (0.2) 26.6 Equity securities 3.5 0.1 — 3.6 Total privately-held investments — Trading 309.2 0.5 (2.6) 307.1 Total Investments — Trading $ 1,472.0 $ 6.7 $ (8.7) $ 1,470.0 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 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, 2021, the Company had a 2.0% position in real estate funds and a 3.6% position in MML and CML, representing in total 5.6% of our Managed Portfolio (December 31, 2020 — 5.1%). Catastrophe bonds. The Company has invested in catastrophe bonds with a total value of $3.4 million as at December 31, 2021 (December 31, 2020 — $18.8 million). The bonds are either zero-coupon notes or receive quarterly interest payments based on variable interest rates with scheduled maturities ranging from 2022 to 2025. 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 $211.5 million and middle market loans of $65.4 million as at December 31, 2021 (December 31, 2020 — commercial mortgage loans of $163.6 million; middle market loans of $112.1 million). Commercial Mortgage Loans . The commercial mortgage loans are related to investments in properties including apartments, hotels, office and retail buildings, other commercial properties and industrial properties. The commercial mortgage loan portfolio is diversified by property type, geographic region and issuer to reduce risks. As part of our investment process, we evaluate factors such as size, property type, and security to determine that properties are performing at a consistent and acceptable level to secure the related debt. The following table presents the type of commercial mortgage loans and geographic region as at December 31, 2021 and December 31, 2020: As at December 31, 2021 As at December 31, 2020 Net Carrying Value Percentage of Total Net Carrying Value Percentage of Total ($ millions) (%) ($ millions) (%) Property type Apartment 101.6 48.1 80.7 49.3 Hotels 68.8 32.5 20.4 12.5 Office building 33.9 16.0 33.9 20.7 Other commercial 7.2 3.4 28.6 17.5 Total commercial mortgage loans $ 211.5 100 % 163.6 100 % Geographic Region U.S. 183.7 86.9 122.7 75.0 International 27.8 13.1 40.9 25.0 Total commercial mortgage loans $ 211.5 100 % 163.6 100 % 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, 2021, none 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, 2021 and December 31, 2020: As at December 31, 2021 As at December 31, 2020 (in millions) Less than 50% $ — $ 14.9 50% to 60% 131.2 39.3 61% to 70% 80.3 99.5 71% to 80% — 9.9 Commercial mortgage loans $ 211.5 $ 163.6 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, 2021 and December 31, 2020: As at December 31, 2021 As at December 31, 2020 (in millions) Greater than 1.20x $ 66.3 $ 82.2 1.00 - 1.20x 62.4 14.9 Less than 1.00x 18.8 — Commercial mortgage loans (1) $ 147.5 $ 97.1 _______________ (1) As at December 31, 2021, we have non-performing loans of $Nil (December 31, 2020 — $0.7 million) and construction loans of $64.0 million (December 31, 2020 — $65.8 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 $211.5 million as at December 31, 2021, (December 31, 2020 — $163.6 million). Middle Market Loans . The middle market loans are investments in senior secured loan positions with full covenants, focused on the middle market in both U.S. and Europe. The middle market loan portfolio is diversified by industry type, geographic region and issuer to reduce risks. As part of our investment process, we evaluate factors such as size, industry and security to determine that loans are performing at a consistent and acceptable level to secure the related debt. The following table presents the type of middle market loans and geographic region as at December 31, 2021 and December 31, 2020: As at December 31, 2021 As at December 31, 2020 Net Carrying Value Percentage of Total Net Carrying Value Percentage of Total ($ millions) (%) ($ millions) (%) Industry type Materials 20.9 32.0 28.0 24.9 Financials 6.1 9.3 27.1 24.2 Industrials 18.7 28.5 17.3 15.5 Consumer discretionary 4.3 6.6 13.7 12.2 Health care — — 7.5 6.7 Energy 5.6 8.6 7.3 6.5 Consumer staples 4.9 7.5 6.4 5.7 Information technology 4.9 7.5 4.8 4.3 Total middle market mortgage loans $ 65.4 100 % $ 112.1 100 % Geographic Region U.S. 56.2 85.9 91.8 81.9 International 9.2 14.1 20.3 18.1 Total middle market loans $ 65.4 100 % $ 112.1 100 % 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, 2021, 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, 2021 and December 31, 2020: As at December 31, 2021 As at December 31, 2020 (in millions) Less than 50% $ 11.0 $ 59.8 50% to 60% 9.2 11.0 61% to 70% 15.8 6.4 71% to 80% 5.6 — 81% to 100% 12.0 17.2 Greater than 100% 11.8 17.7 Middle market loans $ 65.4 $ 112.1 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, 2021 and December 31, 2020 As at December 31, 2021 As at December 31, 2020 (in millions) Greater than 1.20x $ 25.8 $ 73.6 1.00 - 1.20x 22.8 — Less than 1.00x 16.8 38.5 Middle market loans $ 65.4 $ 112.1 Aspen has individually assessed each of the middle market loans with the loan-to-enterprise-value ratio of greater than 100% and fixed charge coverage ratio of less than 1.00x. These companies were impacted by COVID-19 and have only become fully operational half way through the year. However performance on these companies has exceeded pre-COVID-19 levels, tracking ahead of plan and therefore expect EBITDA to normalize around the historical levels and return the above ratios within acceptable levels. As a result we still determine all our middle market loans to be performing. 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 and paid $0.4 million in the period ending December 31, 2021. 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, realizing 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. During the period ending December 31, 2021, $2.5 million (December 31, 2020 $0.5 million) capital was invested in multi-line reinsurer. The table below shows the Company’s investments in MVI, Multi-Line Reinsurer, Bene, Digital Re and Crop Re for the twelve months ended December 31, 2021 and 2020: MVI Multi-Line Reinsurer Bene Digital Re Crop Re Total ($ in millions) Opening undistributed value of investment as at January 1, 2021 $ — $ 0.5 $ — $ 0.4 $ — $ 0.9 Investment in the period 0.4 2.5 — 0.3 — 3.2 Distribution received — — — (0.5) — (0.5) Unrealized gain for the twelve months to December 31, 2021 0.1 0.2 — — — 0.3 Closing value of investment as at December 31, 2021 0.5 3.2 — 0.2 — 3.9 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 investments at December 31, 2020 $ — $ 0.5 $ — $ 0.4 $ — $ 0.9 Other Investments. On December 20, 2017, the Company committed to, and during 2018 invested $100.0 million as a limited partner to a real estate fund, classified as other investments. As at December 31, 2021, the current fair value of the fund $129.9 million. On September 30, 2021, the Company committed and funded $20.0 million as a limited partner to a third party managed real estate fund. The Partnership was established to make equity and equity related investments in multifamily and other commercial real estate properties located in the United States and its territories, with the goal of generating superior risk-adjusted returns. The Partnership seeks to acquire commercial real estate assets including real estate assets (or interests therein) that may have management or operational problems and require improvements or lack sufficient capital, including mortgage loans and development or redevelopment properties. As at December 31, 2021, the current fair value of the fund is $21.4 million. As at December 31, 2021, the aggregate current fair value of the real estate funds investments described above is $151.3 million. For further information on the real estate funds, refer to Note 20(a) in these consolidated financial statements, “Commitments and Contingencies.” Fixed Income Securities. The scheduled maturity distribution of the Company’s available for sale fixed income securities as at December 31, 2021 and December 31, 2020 is set forth below. Actual maturities may differ from contractual maturities because issuers of securities may have the right to call or prepay obligations with or without call or prepayment penalties. As at December 31, 2021 Amortized Fair Market Average ($ in millions) Due one year or less $ 545.1 $ 549.0 AA- Due after one year through five years 2,057.2 2,087.5 AA- Due after five years through ten years 1,090.5 1,106.3 A+ Due after ten years 40.7 41.4 A- Total — Government and corporate 3,733.5 3,784.2 Non-agency commercial mortgage-backed 6.6 6.9 AA+ Agency mortgage-backed 1,082.9 1,090.0 AA+ Asset-backed 0.5 0.5 AAA Total fixed income securities — Available for sale $ 4,823.5 $ 4,881.6 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 Guaranteed Investments. As at December 31, 2021 and December 31, 2020, 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, 2021 and December 31, 2020: December 31, 2021 0-12 months Over 12 months Total Fair Gross Fair Gross Fair Gross Number of ($ in millions) U.S. government $ 309.1 $ (4.0) $ 29.3 $ (1.9) $ 338.4 $ (5.9) 51 U.S. agency 6.1 — — — 6.1 — 5 Municipal 29.7 (0.5) — — 29.7 (0.5) 20 Corporate 804.6 (11.7) 23.6 (1.3) 828.2 (13.0) 400 Non-U.S. government-backed corporate 114.4 (1.9) — — 114.4 (1.9) 10 Non-U.S. government 181.8 (1.2) 3.1 — 184.9 (1.2) 35 Agency mortgage-backed 564.5 (11.6) 16.0 (0.4) 580.5 (12.0) 116 Total fixed income securities — Available for sale 2,010.2 (30.9) 72.0 (3.6) 2,082.2 (34.5) 637 Total short-term investments — Available for sale 4.4 — — — 4.4 — 7 Total $ 2,014.6 $ (30.9) $ 72.0 $ (3.6) $ 2,086.6 $ (34.5) 644 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 The increase in gross unrealized losses is largely attributable to the impact of rising interest rates on our bond portfolio 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, 2021, there was an increase in the CECL allowance on available-for-sale investments of $2.5 million (December 31, 2020 — $0.4 million decrease). |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Variable Interest Entities | Variable Interest Entities As at December 31, 2021, the Company had investments in one (December 31, 2020 — 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, 2021, 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. . |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 and December 31, 2020: As at December 31, 2021 Level 1 Level 2 Level 3 Total ($ in millions) Available for sale financial assets, at fair value U.S. government $ 1,084.3 $ — $ — $ 1,084.3 U.S. agency — 21.5 — 21.5 Municipal — 82.6 — 82.6 Corporate — 2,208.3 — 2,208.3 Non-U.S. government-backed corporate — 136.8 — 136.8 Non-U.S. government 164.4 86.3 — 250.7 Asset-backed — 0.5 — 0.5 Non-agency commercial mortgage-backed — 6.9 — 6.9 Agency mortgage-backed — 1,090.0 — 1,090.0 Total fixed income securities available for sale, at fair value 1,248.7 3,632.9 — 4,881.6 Short-term investments available for sale, at fair value 6.5 3.6 — 10.1 Held for trading financial assets, at fair value U.S. government 116.3 — — 116.3 Municipal — 4.0 — 4.0 Corporate — 96.8 — 96.8 Non-U.S. government-backed corporate — 13.1 — 13.1 High yield loans — 76.9 — 76.9 Non-U.S. government 11.9 22.6 — 34.5 Asset-backed — 785.7 — 785.7 Agency mortgage-backed — 30.2 — 30.2 Total fixed income securities trading, at fair value 128.2 1,029.3 — 1,157.5 Short-term investments trading, at fair value 1.1 0.9 — 2.0 Privately-held investments trading, at fair value — — 307.1 307.1 Catastrophe bonds trading, at fair value — 3.4 — 3.4 Other investments (1) — — — 151.3 Other financial assets and liabilities, at fair value Derivatives at fair value — foreign exchange contracts — 12.9 — 12.9 Liabilities under derivative contracts — foreign exchange contracts — (13.3) — (13.3) Total 1,384.5 4,669.7 307.1 6,512.6 ______________ (1) Other investments represents our investments in real estate funds and are 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 funds are subject to restrictions as detailed in Note 20(a), “Commitments and Contingencies.” 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 — — 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 investments in real estate funds and are 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 funds are 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, 2021, $19.5 million ( December 31, 2020 — $8.3 million was transferred in to Level 3) was transferred from Level 3 to Level 2 due to publicly available market inputs within its valuation methodology. As at December 31, 2021, there were privately-held investments worth $307.1 million (December 31, 2020 — $299.3 million) classified as Level 3. As a result of loans sold by Aspen and loans repaid to Aspen by borrowers, a net settlement of $182.2 million occurred during the year. 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, 2021 and December 31, 2020: Twelve Months Ended December 31, 2021 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 $ 163.6 $ 169.9 $ — $ (122.5) $ 0.5 $ 211.5 $ (0.5) Middle market loans 112.1 5.6 — (56.1) 3.7 65.3 (1.5) Asset-backed securities 18.6 10.0 — (1.8) (0.1) 26.7 (0.2) Equity securities 5.0 0.1 — (1.6) 0.1 3.6 — Preference shares — 19.5 (19.5) — — — — Total Level 3 assets $ 299.3 $ 205.1 $ (19.5) $ (182.2) $ 4.2 $ 307.1 $ (2.2) Twelve Months Ended December 31, 2020 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) 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, 2021 and December 31, 2020, 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, 2021, the Company obtained an average of 3.0 quotes per fixed income investment compared to 2.6 quotes at December 31, 2020. 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, 2021: At December 31, 2021 Fair Value Valuation Techniques Unobservable (U) inputs Ranges Weighted Average ($ in millions) Privately-held investments — Trading Commercial mortgage loans $ 173.9 Discounted cash flow Discount rate 3.5% — 9.5% 5.8% Commercial mortgage loans 37.6 Transaction Value n/a n/a n/a n/a Commercial mortgage loans — Liquidation Method n/a n/a n/a n/a Middle market loans 65.3 Discounted cash flow Discount rate 6.2% — 15.5% 9.1% Middle market loans — Recovery Approach n/a n/a n/a n/a Asset-backed securities 26.7 Discounted cash flow Discount rate 3.0% — 7.3% 5.4% Equity securities 2.8 Discounted cash flow Discount rate 9.2% 9.2% 9.2% Equity securities 0.8 Transaction Value n/a n/a n/a n/a $ 307.1 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. Other investments. The Company’s other investments represent our investments in real estate funds. Adjustments to the fair values are made based on the net asset value of the investments. 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 include: the discounted cash flows method and the performance multiple approach, which uses a multiple derived from market data of 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, 2021 | |
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, 2021, 2020 and 2019 was as follows: Twelve Months Ended December 31, 2021 2020 2019 ($ in millions) Premiums written (1) : Direct $ 2,341.4 $ 2,042.1 $ 1,956.9 Assumed 1,597.0 1,656.4 1,485.5 Ceded (1,350.7) (1,120.7) (1,014.5) Net premiums written $ 2,587.7 $ 2,577.8 $ 2,427.9 Premiums earned (1) : Direct $ 2,139.1 $ 2,026.4 $ 1,927.5 Assumed 1,479.2 1,612.0 1,494.9 Ceded (1,207.8) (1,110.9) (1,129.1) Net premiums earned $ 2,410.5 $ 2,527.5 $ 2,293.3 Insurance losses and loss adjustment expenses: Direct $ 1,499.8 $ 1,479.6 $ 1,415.5 Assumed 1,000.6 1,134.5 1,147.9 Ceded (807.1) (773.3) (883.7) Net insurance losses and loss adjustment expenses $ 1,693.3 $ 1,840.8 $ 1,679.7 (1) For the period twelve months ended December 31, 2020 gross written premium and net premiums earned have been corrected downward by $5.1 million for immaterial errors. Refer to Note 26 in these consolidated financial statements, “Correction of Immaterial Errors” for further details On March 2, 2020, the Company entered into an adverse development cover reinsurance agreement (“ADC”) 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. As at December 31, 2021, the Company has recognized $68.1 million of recoverables on the ADC, of which $58.3 million has been recognized as a deferred gain on the balance sheet within reinsurance recoverables unpaid losses. The deferred gain on retroactive contracts is amortized into income over the settlement period of the ceded reserves. For the twelve months ended December 31, 2021, amortization of deferred gains totaling $9.8 million has been recognized as income within net insurance losses and loss adjustment expenses. Current expected loss model (“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 $3.8 million as a result of recognizing CECL through opening retained earnings for periods 2019 and prior. For the twelve months ended December 31, 2021 there was a decrease in the CECL allowance on reinsurance recoverables of $0.5 million (December 31, 2020 — $0.1 million increase). |
Derivative Contracts
Derivative Contracts | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Contracts | Derivative Contracts The following table summarizes information on the location and amounts of derivative fair values on the consolidated balance sheet as at December 31, 2021 and 2020: As at December 31, 2021 As at December 31, 2020 Derivatives Not Designated as Hedging Instruments Balance Sheet Location Notional Fair Notional Fair ($ in millions) ($ in millions) Foreign Exchange Contracts Derivatives at Fair Value $ 759.8 $ 12.9 (1) $ 803.1 $ 21.5 (1) Foreign Exchange Contracts Liabilities under Derivative Contracts $ 785.9 $ (12.4) $ 599.2 $ (13.6) ______________ (1) Net of $2.1 million of cash collateral (December 31, 2020 — $3.4 million). As at December 31, 2021 As at December 31, 2020 Derivatives Designated as Hedging Instruments Under ASC 815 Balance Sheet Location Notional Fair Notional Fair ($ in millions) ($ in millions) Foreign Exchange Contracts Derivatives at Fair Value $ — $ — $ 90.6 $ 5.3 Foreign Exchange Contracts Liabilities under Derivative Contracts $ 143.1 $ (0.9) $ — $ — 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, 2021 and 2020: Amount of (Loss)/Gain Recognized on Derivatives For the Twelve Months Ended Location of Gain/(Loss) December 31, 2021 December 31, 2020 Derivatives not designated as hedges ($ in millions) Foreign Exchange Contracts Change in Fair Value of Derivatives (35.9) 16.0 Interest Rate Swaps Change in Fair Value of Derivatives — (81.1) Derivatives designated as hedges Foreign Exchange Contracts General, administrative and corporate expenses (5.7) (3.2) Foreign Exchange Contracts Net change from current period hedged transactions (6.2) 0.3 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, 2021, the Company held foreign exchange contracts that were not designated as hedges under ASC 815 with an aggregate nominal amount of $1,545.7 million (2020 — $1,402.3 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, 2021, the impact of foreign exchange contracts on net income was a loss of $35.9 million (December 31, 2020 — gain of $16.0 million). As at December 31, 2021, the Company held foreign exchange contracts that were designated as hedges under ASC 815 with an aggregate nominal amount of $143.1 million (2020 — $90.6 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 effective and therefore the movement in other comprehensive income representing the effective portion for the twelve months ended December 31, 2021 was a loss of $6.2 million (December 31, 2020 —gain of $0.3 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, 2021, the amount recognized within general, administration and corporate expenses for settled foreign exchange contracts was a realized loss of $5.7 million (December 31, 2020 — loss of $3.2 million). Interest Rate Swaps. In the first quarter of 2019, the Company entered into fixed for floating interest rate swaps with a total notional 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 $1,250.0 million of our interest rate swaps. For the twelve months ended December 31, 2021, there was a loss of Nil (December 31, 2020 — $81.1 million). |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 12 Months Ended |
Dec. 31, 2021 | |
Insurance [Abstract] | |
Deferred Policy Acquisition Costs | Deferred Policy Acquisition Costs The following table represents a reconciliation of beginning and ending deferred policy acquisition costs for the twelve months ended December 31, 2021 and 2020: Twelve Months Ended December 31, 2021 Twelve Months Ended December 31, 2020 ($ in millions) Balance at the beginning of the period $ 306.6 $ 291.1 Acquisition costs deferred 398.3 481.2 Amortization of deferred policy acquisition costs (414.1) (465.7) Balance at the end of the period $ 290.8 $ 306.6 |
Reserves for Losses and Adjustm
Reserves for Losses and Adjustment Expenses | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021, 2020 and 2019: As at December 31, 2021 2020 2019 ($ in millions) Provision for losses and LAE at the start of the year $ 7,165.3 $ 6,951.8 $ 7,074.2 Less reinsurance recoverable (3,195.2) (2,319.8) (2,077.6) Net loss and LAE at the start of the year 3,970.1 4,632.0 4,996.6 Net loss and LAE expenses (disposed) (1) — (818.5) — Movement in net provision for losses and LAE for claims incurred: Current year 1,648.2 1,841.7 1,620.2 Prior years 45.1 (0.9) 59.5 Total incurred 1,693.3 1,840.8 1,679.7 Losses and LAE payments for claims incurred: Current year (729.1) (404.9) (428.5) Prior years (580.7) (1,359.7) (1,694.1) Total paid (1,309.8) (1,764.6) (2,122.6) Foreign exchange (gains)/losses (39.9) 80.4 78.3 Net losses and LAE reserves at the end of the year 4,313.7 3,970.1 4,632.0 Plus reinsurance recoverable on unpaid losses at the end of the year 3,298.1 3,195.2 2,319.8 Provision for losses and LAE at the end of the year $ 7,611.8 $ 7,165.3 $ 6,951.8 ______________ (1) Net loss and LAE expenses disposed in 2020 includes the ADC 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, 2021, there was an increase of $45.1 million in the Company’s estimate of the ultimate claims to be paid in respect of prior accident years compared to a decrease of $0.9 million for the twelve months ended December 31, 2020. Overall, prior year reserve strengthening totaled $45.1 million in 2021, compared with net favorable reserve development of $0.9 million in 2020. Prior year reserve strengthening excludes the full economic benefit of the recoveries from the ADC of $58.3 million which is currently within reinsurance recoverables on unpaid losses. Reserve releases in the reinsurance segment in 2021 were $134.4 million compared to $36.1 million in 2020 and came primarily from casualty reinsurance and specialty reinsurance. Net unfavorable reserve development in the insurance segment in 2021 was $179.5 million compared to net unfavorable reserve development of $35.2 million in 2020 and came primarily from casualty insurance lines and first party and specialty 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, 2021, 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, 2021. The Company has chosen to disaggregate the business in its Insurance segment, for the purposes of these loss development triangles as: Property, Casualty, Marine, Aviation and Energy, and Financial and Professional insurance lines. The Company considers that this presentation of its Insurance lines loss development triangles more precisely reflects meaningful trending information. Certain accident years have negative IBNR due to the allocation of the adverse development cover, which has been allocated in line with with the agreement and premiums paid. Property Insurance Lines Incurred Claims, IBNR and Loss Adjustment Expenses, Net of Reinsurance As at December 31, 2021 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 2021 $ (in millions) 2012 170.6 168.6 167.3 166.2 160.6 154.8 153.7 153.8 154.4 155.6 — 6,083 2013 130.8 117.9 117.5 113.3 114.3 112.3 112.6 112.8 110.7 0.3 5,764 2014 166.1 157.9 134.7 135.3 134.6 133.0 132.4 133.4 — 9,973 2015 241.8 207.4 201.8 204.2 204.6 201.5 202.2 2.0 11,598 2016 239.9 250.7 245.5 246.9 248.4 249.2 1.6 10,785 2017 297.5 260.3 253.5 254.9 254.1 10.3 9,693 2018 205.5 208.2 191.9 190.4 0.4 8,171 2019 128.5 132.1 122.6 — 6,812 2020 206.7 211.2 36.2 7,295 2021 $ 210.9 88.8 4978 Total $ 1,840.3 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 2021 ($ in millions) 2012 41.5 129.6 139.2 153.4 157.6 155.1 154.3 154.3 154.3 155.6 2013 39.2 76.4 89.7 101.7 106.4 109.1 110.9 111.2 110.0 2014 40.5 86.9 114.5 124.2 128.3 129.8 131.0 132.3 2015 57.5 144.1 172.1 181.3 198.0 196.4 197.8 2016 67.3 169.7 202.5 224.8 233.8 239.0 2017 97.0 189.9 223.2 244.1 248.4 2018 62.6 162.9 185.0 181.8 2019 49.6 92.6 103.4 2020 61.9 125.5 2021 59.2 Total $ 1,553.0 All outstanding liabilities for 2012 and subsequent years, net of reinsurance $ 287.3 All outstanding liabilities before 2012, net of reinsurance 2.0 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 289.3 Casualty Insurance Lines As at December 31, 2021 Incurred Claims, IBNR and Loss Adjustment Expenses, Net of Reinsurance 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 2021 $ (in millions) 2012 78.6 63.4 70.6 61.7 69.6 67.2 69.2 71.1 71.5 69.3 3.4 3,130 2013 134.0 117.4 115.8 121.3 104.3 105.4 105.7 104.3 100.9 7.2 3,367 2014 146.2 128.4 140.3 130.5 137.7 141.8 138.8 130.4 5.7 3,865 2015 205.1 225.1 187.6 205.5 238.4 236.7 227.7 13.5 4,736 2016 218.9 190.0 185.3 192.0 203.1 233.8 54.1 4,753 2017 182.9 176.3 180.4 199.3 201.6 18.9 5,416 2018 124.0 126.8 137.9 135.5 22.7 5,419 2019 126.5 148.8 127.9 4.7 5,104 2020 134.9 133.9 94.3 3,570 2021 176.5 150.5 2,707 Total 1,537.5 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 2021 ($ in millions) 2012 1.3 6.7 14.3 30.0 41.3 49.7 50.6 55.2 59.9 65.0 2013 2.3 26.0 39.8 53.4 69.0 81.5 85.8 87.8 88.0 2014 2.7 13.5 33.1 60.4 74.0 98.4 111.4 110.1 2015 3.2 17.2 57.0 93.5 139.7 169.2 181.4 2016 4.2 23.1 40.7 83.5 111.0 134.8 2017 3.6 23.2 53.4 98.4 116.8 2018 3.2 28.2 44.1 69.7 2019 6.4 18.6 70.4 2020 — 3.2 2021 9.5 Total $ 848.9 All outstanding liabilities for 2012 and subsequent years, net of reinsurance $ 688.6 All outstanding liabilities before 2012, net of reinsurance 37.0 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 725.6 Marine, Aviation and Energy Insurance Lines Incurred Claims, IBNR and Loss Adjustment Expenses, Net of Reinsurance As at December 31, 2021 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 2021 $ (in millions) 2012 268.8 306.2 325.8 346.4 332.1 328.2 316.5 311.2 306.1 308.8 (6.1) 3,823 2013 321.0 333.8 342.5 325.9 333.0 346.6 345.2 340.2 343.3 2.8 4,178 2014 309.8 314.0 298.9 310.5 306.0 313.0 302.2 312.5 (5.9) 4,043 2015 297.1 300.2 282.6 286.8 310.4 313.0 321.4 (4.6) 4,074 2016 260.8 230.8 229.4 229.6 219.4 221.7 0.2 4,429 2017 210.7 201.1 207.4 214.9 209.8 37.9 6,041 2018 171.4 208.5 209.4 219.9 (2.4) 5,178 2019 146.5 154.1 146.0 3.0 3,575 2020 111.0 111.8 12.0 4,128 2021 94.0 44.7 2,108 Total 2,289.2 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 2021 ($ in millions) 2012 51.5 132.4 174.9 211.2 240.0 250.9 273.8 274.7 276.9 284.8 2013 41.5 131.7 205.0 235.4 264.8 284.5 300.6 310.8 311.0 2014 53.6 116.9 189.3 210.0 232.7 250.9 263.1 275.6 2015 44.9 123.4 174.6 194.5 222.5 257.9 280.6 2016 30.9 82.7 142.8 164.3 191.2 199.0 2017 40.3 97.8 140.6 168.8 156.9 2018 26.9 105.1 133.4 155.7 2019 33.6 72.8 118.1 2020 28.5 66.7 2021 23.5 Total $ 1,871.9 All outstanding liabilities for 2012 and subsequent years, net of reinsurance $ 417.3 All outstanding liabilities before 2012, net of reinsurance 10.6 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 427.9 Financial and Professional Insurance Lines Incurred Claims, IBNR and Loss Adjustment Expenses, Net of Reinsurance As at December 31, 2021 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 2021 $ (in millions) 2012 88.5 89.9 93.6 97.0 94.0 89.6 101.7 96.5 103.4 104.5 (4.4) 579 2013 106.1 100.6 105.0 101.7 100.8 91.9 90.9 97.6 102.8 2.2 586 2014 135.7 131.6 130.2 120.6 131.9 120.9 121.7 123.7 (2.7) 800 2015 175.0 176.3 186.4 190.6 191.9 186.7 185.9 (0.4) 1,080 2016 191.9 212.6 217.4 203.1 186.3 185.7 13.5 1,255 2017 207.7 184.1 188.9 189.4 188.6 12.8 1,739 2018 158.5 174.6 156.9 152.7 6.0 4,617 2019 250.5 263.8 236.0 52.8 23,894 2020 351.0 352.0 181.7 105,317 2021 289.6 221.5 31,311 Total $ 1,921.5 Financial and Professional Insurance Lines Cumulative Paid Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Unaudited Prior Years Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 ($ in millions) 2012 22.8 39.6 50.8 59.4 65.4 70.6 80.3 85.3 91.3 92.8 2013 8.1 21.2 31.3 65.6 64.1 72.8 75.0 78.3 81.8 2014 3.0 30.9 53.8 72.5 80.0 85.9 92.6 104.2 2015 13.8 43.6 70.3 89.7 110.4 139.6 146.2 2016 15.2 71.4 102.5 130.6 126.6 136.0 2017 27.2 51.4 83.6 117.5 137.2 2018 21.0 75.7 101.6 117.1 2019 27.4 87.3 138.4 2020 48.0 121.9 2021 43.7 Total $ 1,119.3 All outstanding liabilities for 2012 and subsequent years, net of reinsurance $ 802.2 All outstanding liabilities before 2012, net of reinsurance 6.5 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 808.7 Property Catastrophe and Other Property Reinsurance Incurred Claims, IBNR and Loss Adjustment Expenses, Net of Reinsurance As at December 31, 2021 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 2021 $ (in millions) 2012 280.2 303.1 286.2 278.8 282.2 279.2 271.7 261.6 264.9 248.6 (3.1) 679 2013 217.4 199.9 189.7 178.5 177.1 173.8 171.0 168.2 164.7 0.6 832 2014 189.9 176.8 160.9 149.5 149.8 144.9 144.9 143.9 0.8 900 2015 214.6 187.3 177.2 156.6 171.8 171.9 179.8 11.7 1,051 2016 272.6 272.7 271.0 249.2 244.9 230.4 (15.2) 1,308 2017 557.7 534.5 516.2 505.0 481.2 (3.8) 1,956 2018 343.1 394.2 389.5 403.5 22.2 1,808 2019 262.8 272.3 270.6 3.6 1,395 2020 322.9 366.9 20.1 1,333 2021 461.5 198.6 1,005 Total $ 2,951.1 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 2021 ($ in millions) 2012 35.6 135.7 188.8 208.9 216.4 227.6 232.1 242.2 247.9 248.6 2013 34.5 98.8 146.9 159.0 163.7 165.2 166.8 161.2 161.2 2014 37.4 100.7 127.1 137.0 140.9 139.6 141.3 141.5 2015 35.8 95.0 127.1 139.2 156.2 158.6 162.2 2016 57.2 164.7 206.0 217.1 230.4 236.7 2017 123.2 357.4 416.6 440.8 437.6 2018 122.8 311.6 325.7 345.4 2019 28.2 153.0 205.6 2020 42.4 169.2 2021 75.6 Total $ 2,183.6 All outstanding liabilities for 2012 and subsequent years, net of reinsurance 767.5 All outstanding liabilities before 2012, net of reinsurance 17.4 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 784.9 Casualty Reinsurance Incurred Claims, IBNR and Loss Adjustment Expenses, Net of Reinsurance As at December 31, 2021 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 2021 $ (in millions) 2012 235.1 233.3 244.6 236.0 232.8 233.7 242.6 245.1 240.0 196.2 (27.1) 1,813 2013 215.6 230.8 226.3 223.6 206.6 201.7 204.4 201.6 165.8 (6.8) 1,691 2014 206.2 209.0 217.6 211.1 204.5 207.1 202.9 160.5 (14.8) 1,805 2015 195.4 202.2 211.7 214.2 212.0 208.0 160.6 (13.6) 1,964 2016 234.7 247.3 247.0 257.2 264.7 213.5 (2.1) 2,056 2017 246.6 244.0 254.9 254.1 194.2 3.4 2,005 2018 230.1 259.8 267.0 190.6 24.7 1,766 2019 236.2 256.6 179.2 52.3 1,300 2020 256.4 237.6 177.8 753 2021 209.0 177.0 355 Total $ 1,907.2 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 2021 ($ in millions) 2012 2.2 17.8 42.1 65.5 96.6 117.8 134.7 144.4 162.2 165.4 2013 3.4 15.9 42.8 65.1 93.1 115.0 127.8 139.9 146.3 2014 2.5 13.8 37.8 60.3 86.7 107.7 125.7 135.7 2015 3.5 18.0 38.5 65.7 89.7 109.0 123.3 2016 9.3 33.7 64.5 96.7 127.0 148.0 2017 8.9 30.7 59.2 97.9 117.3 2018 7.2 33.7 73.7 104.9 2019 9.2 36.5 61.4 2020 9.2 28.0 2021 7.9 Total $ 1,038.2 All outstanding liabilities for 2012 and subsequent years, net of reinsurance 869.0 All outstanding liabilities before 2012, net of reinsurance 106.3 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 975.3 Specialty Reinsurance Incurred Claims, IBNR and Loss Adjustment Expenses, Net of Reinsurance As at December 31, 2021 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 2021 $ (in millions) 2012 176.2 199.5 188.8 173.3 171.7 172.4 169.1 166.6 165.6 156.3 (3.9) 641 2013 144.4 139.6 131.3 119.4 118.6 114.8 114.4 111.0 104.8 (0.5) 577 2014 152.4 140.1 132.1 122.9 125.8 124.3 120.1 114.9 0.6 619 2015 165.9 170.0 164.5 159.0 157.3 152.8 149.0 4.7 777 2016 238.8 239.9 237.7 230.0 225.0 214.7 (5.4) 937 2017 379.7 392.4 376.0 364.4 343.2 (6.1) 1,328 2018 397.4 396.4 394.3 391.1 13.0 1,399 2019 476.1 498.9 495.4 49.2 1,519 2020 415.6 382.4 66.7 1,400 2021 155.8 106.1 1,020 Total $ 2,507.6 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 2021 ($ in millions) 2012 24.6 93.0 128.1 138.2 143.5 148.8 150.1 152.9 153.4 156.1 2013 25.0 70.9 86.9 94.0 101.0 101.0 101.9 101.7 100.7 2014 16.6 56.5 81.3 89.3 99.7 102.6 104.2 106.2 2015 17.7 56.4 104.1 122.0 130.9 134.0 134.0 2016 58.7 150.9 165.5 183.6 193.8 203.8 2017 94.6 238.8 271.0 306.3 317.1 2018 27.2 280.8 314.6 331.1 2019 274.3 382.7 402.1 2020 213.1 270.4 2021 28.4 Total $ 2,049.9 All outstanding liabilities for 2012 and subsequent years, net of reinsurance 457.7 All outstanding liabilities before 2012, net of reinsurance 14.6 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 472.3 Reconciliation of Incurred and Paid Claims Development to total Provision for Losses and LAE Twelve Months Ended December 31, 2021 Twelve Months Ended December 31, 2020 ($ in millions) Net outstanding liabilities: Insurance lines - Property insurance lines 289.3 226.8 - Casualty insurance lines 725.6 618.7 - Marine, aviation and energy insurance lines 427.9 431.4 - Financial and professional insurance lines 808.7 738.5 Total insurance lines 2,251.5 2,015.4 Reinsurance lines - Property catastrophe and other property reinsurance 784.9 631.0 - Casualty reinsurance 975.3 1,084.2 - Specialty reinsurance 472.3 535.4 Total reinsurance lines 2,232.5 2,250.6 Net loss and LAE 4,484.0 4,266.0 Reinsurance recoverable on unpaid losses: Insurance lines 2,117.4 2,140.3 Reinsurance lines 1,180.7 1,054.9 Total reinsurance recoverable on unpaid losses 3,298.1 3,195.2 Deferred gain on retroactive contracts 58.3 — Unallocated claims incurred 56.6 50.3 Other reinsurance balances recoverable (1) (286.4) (346.7) Carbon syndicate reserves 1.0 — Other 0.2 0.5 (170.3) (295.9) Provision for losses and LAE at the end of the year 7,611.8 7,165.3 ____________________ Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years 1 2 3 4 5 6 7 8 9 10 Insurance 16.1 % 25.7 % 17.2 % 11.9 % 7.4 % 6.7 % 4.5 % 2.5 % 1.3 % 2.5 % Reinsurance 18.1 % 30.9 % 15.3 % 9.7 % 8.3 % 5.6 % 4.0 % 2.7 % 2.6 % 1.1 % |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
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 assurance from the Bermuda Minister of Finance that such entities will be exempt from those taxes until March 31, 2035. During the current year, management identified immaterial errors which resulted in revising the Company's historical financial statements, as further described below: Income tax: During the year, the Company identified an error regarding the completeness and accuracy of the information used in recognizing both current and deferred income taxes on Aspen U.K.’s branches and the associated application thereof in respect of local tax rules in the various jurisdictions. Consequential impacts have been recorded in the income tax reconciliation and the breakdown of the net deferred tax liabilities. The Company has concluded that the error is immaterial to the prior period financial statements of Aspen Holdings and that correcting the error in the current period would likely materially misstate the current period financial statements. In accordance with U.S. GAAP, we have, therefore, corrected the error in the comparatives of the 2021 financial statements of Aspen Holdings by adjusting 2020 and 2019 prior period information and adding disclosure of the error. Refer to Note 26 in these consolidated financial statements, “Correction of Immaterial Errors” for further details. 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 were taxed at the U.K. corporate tax rate of 19% . Total income tax (benefit)/expense for the twelve months ended December 31, 2021, 2020 and 2019 was allocated as follows: Twelve Months Ended December 31, 2021 2020 2019 ($ in millions) Income tax expense/(benefit) allocated to net income $ 5.3 $ 18.4 $ 22.9 Income tax expense allocated to other comprehensive income 0.3 0.5 11.2 Total income tax expense/(benefit) $ 5.6 $ 18.9 $ 34.1 (Loss)/income from operations before income taxes and income tax expense/(benefit) attributable to that (loss)/income for the twelve months ended December 31, 2021, 2020 and 2019 is provided in the tables below: Twelve Months Ended December 31, 2021 (Loss)/income Current tax Deferred tax Total income tax ($ in millions) Bermuda $ 22.9 $ — $ — $ — U.S. (1) 5.0 5.8 — 5.8 U.K. 75.1 — (0.3) (0.3) Other (2) (67.9) 2.7 (2.9) (0.2) Total $ 35.1 $ 8.5 $ (3.2) $ 5.3 Twelve Months Ended December 31, 2020 (Loss) Current tax Deferred tax Total income tax ($ in millions) Bermuda $ (81.5) $ — $ — $ — U.S. (3) 19.7 8.9 — 8.9 U.K. 11.0 0.1 — 0.1 Other (4) 12.8 10.3 (0.9) 9.4 Total $ (38.0) $ 19.3 $ (0.9) $ 18.4 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. (43.5) (6.7) 17.3 10.6 Other (5.5) 4.0 0.9 4.9 Total $ (216.6) $ (1.7) $ 24.7 $ 22.9 ________________ (1) The U.S. current tax expense of $5.8 million is mainly Base Erosion and Anti-abuse Tax. (2) Current tax expense and deferred tax (benefit) in “Other” is made up of taxation paid in respect of branches of U.K. and Bermudian operating subsidiaries and withholding taxes payable in Australia. (3) The 2020 U.S. deferred tax expense has been corrected from $5.7 million credit to $0.0 million. This removes an invalid intraperiod tax allocation between the statement of operations and unrealized gains on investments in other comprehensive income. (4) The 2020 other territories’ tax expense in “other” has been corrected from $5.3 million to $9.4 million to correct the income tax calculation in the Swiss and Australian branches of the U.K. operating companies. As noted above, the tax rate in Bermuda, the Company’s country of domicile, is zero. Application of the statutory income tax rate for operations in other jurisdictions produces a differential to the expected income tax (benefit)/expense as shown in the table below. The reconciliation between the income tax (benefit)/expense and the amount that would result from applying the statutory rate for the Company for the twelve months ended December 31, 2021, 2020 and 2019 is provided in the table below: Twelve Months Ended December 31, 2021 2020 2019 Income Tax Reconciliation ($ in millions) Income tax benefit at statutory tax rate of zero percent $ — $ — $ — Overseas statutory tax rates differential (0.9) (3.8) (21.2) Base erosion and anti-abuse tax (BEAT) expense 6.1 4.3 0.3 Prior year adjustments (1) 0.5 (25.0) (1.7) Change in valuation allowance (2) 9.6 40.8 42.6 Impact of unrecognized tax benefits (3) — — — Restricted foreign tax credits (4) — — 1.5 Australian non-resident withholding tax 0.6 1.0 1.0 Share-based payments — — (0.6) Foreign exchange (1.5) 0.2 — Non-deductible expenses 2.4 4.7 — Non-taxable items — — (0.1) Impact of changes in statutory tax rates (5) (11.5) (3.8) 1.1 Total income tax expense/(benefit) $ 5.3 $ 18.4 $ 22.9 ________________ (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 income 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, 2021 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, 2020 and 2019 predominantly relate to the determination of results in the U.K. These items can only be ultimately determined after this report is filed. (2) The 2021 valuation allowance movement includes $5.5 million increase relating to U.K deferred tax assets in U.K. operating subsidiaries, $9.1 million increase relating to deferred tax assets in the branches of the U.K. and Bermuda operating subsidiaries, and $5.0 million decrease from U.S. operations, which includes $15.5 million decrease due to utilization of existing net operating losses. The U.K. tax rate change effect on the valuation allowance is $11.3 million. (3) In 2021, the company did not have any unrecognized tax benefits. Income tax returns that have been filed by the Company’s U.S. operating subsidiaries are subject to examination for 2016 and later tax years. The Company’s U.K. operating subsidiaries’ income tax returns are subject to examination for 2020 and later tax years. (4) Restricted foreign tax credits are taxes paid by branches of U.K. operating subsidiaries that are not creditable against U.K. taxes. (5) The U.K. tax rate will change from April 1, 2023 from 19% to 25%, which resulted in an increase in the deferred tax assets and an offsetting increase in the valuation allowance. The tax effects of temporary differences and carryforwards that give rise to deferred tax assets and deferred tax liabilities are presented in the following table as at December 31, 2021 and 2020: As at December 31, 2021 2020 ($ in millions) Deferred tax assets: Operating loss carryforwards 170.2 147.8 Insurance reserves: Losses and loss adjustment expenses 16.7 12.2 Accrued expenses 4.6 6.4 Foreign tax credit carryforwards 20.2 16.7 Insurance reserves: Unearned premiums 28.3 24.5 Office properties and equipment 15.1 12.7 Operating lease liabilities 19.2 17.9 Other temporary differences 3.2 2.5 Total deferred tax assets 277.5 240.7 Less valuation allowance (225.9) (187.1) Deferred tax assets, net of valuation allowance $ 51.6 $ 53.6 Deferred tax liabilities: Investments (2.5) (8.4) Intangible assets (2.8) (2.7) Deferred policy acquisition costs (28.6) (33.3) Right-of-use operating lease assets (10.6) (12.5) Insurance reserves: Losses and loss adjustment expenses (8.3) — Other temporary differences (1.6) (1.9) Total deferred tax (liabilities) (54.4) (58.8) Net deferred tax (liabilities) $ (2.8) $ (5.2) Deferred tax liabilities and assets represent the tax effect of carryforwards and 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. The 2020 deferred tax liabilities and assets have been corrected. Deferred tax assets of $48.1 million relating to foreign tax credit carryforwards and foreign branch net operating losses for the U.K. operating companies, that were not previously recognized, have now been recognized. A valuation allowance has been recognized against these assets as management believes that it is more likely than not that a tax benefit will not be realized. Deferred tax liabilities of $5.4 million in the Swiss branches of the U.K. operating companies that had not previously been recognized have now been recognized. 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, 2021, the Company has net operating losses carryforwards for U.S. federal income tax purposes of $443.1 million (2020 — $526.4 million), net operating losses carryforwards for U.K. corporate tax purposes of $168.9 million (2020 — $101.8 million), deferred syndicate losses of $66.2 million (2020 — $57.9 million), and losses in other jurisdictions of $103.9 million (2020 — $46.8 million). Of the $443.1 million that are available to offset future U.S. federal taxable income, all $443.1 million will expire between 2031 and 2039. The amount of pre-merger net operating losses carryforwards that can be used each year is limited by section 382 to $6.5 million per year for Aspen U.K.’s U.S. branch and $20.8 million per year for the U.S. operating subsidiaries. The net operating losses in the U.K. and other jurisdictions are available to offset future corporate income in those jurisdictions over an indefinite period. For U.S. federal income tax purposes, the Company also has charitable contribution carryforwards of $0.1 million (2020 — $1.0 million) expiring in 2026. 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, and foreign tax credit carryforwards of $20.2 million (2020 — $16.7 million) which are available to offset future U.K. corporate tax arising on the same foreign source of income over an indefinite period. A valuation allowance of $119.7 million (2020 — $119.2 million) on U.S. deferred tax assets (which includes these loss carryforwards) has been recognized at December 31, 2021 as management believes that it is more likely than not that a tax benefit will not be realized. A valuation allowance of $88.7 million (2020 — $58.6 million) has been established against U.K. deferred tax assets. |
Capital Structure
Capital Structure | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 and 2020: As at December 31, 2021 At December 31, 2020 Number $ in Number $ in Authorized share capital: Ordinary Shares $0.01 per share ( 2020 — $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 ( 2020 — $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, 2021 and 2020 was 60,395,839. The Company did not acquire any ordinary shares for the twelve months ended December 31, 2021. (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, 2021 | |
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. 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, 2021, Aspen U.K. had an accumulated balance of retained losses of approximately $306.3 million and AUL had an accumulated balance of retained losses of approximately £122.1 million. Aspen U.K. held a capital contribution reserve of $655.0 million as at December 31, 2021 which, under certain circumstances, could be distributable. Aspen Bermuda must comply with the provisions of the Companies Act and the Insurance Act regulating the payment of dividends and distributions. 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 of payment. As at December 31, 2021, 25% of Aspen Bermuda’s statutory capital and surplus amounted to $326.4 million. Aspen Bermuda must also obtain the prior approval of the BMA before reducing its total statutory capital as set out in its previous year’s financial statements by 15% or more. Under both North Dakota and Texas law, insurance companies may only pay dividends out of earned surplus as distinguished from contributed surplus. As such, Aspen Specialty and AAIC could not pay a dividend as at December 31, 2021 without prior regulatory approval. Actual and required statutory capital and surplus for the principal operating subsidiaries of the Company, excluding its Lloyd’s syndicate, as at December 31, 2021 and December 31, 2020 were estimated as follows: As at December 31, 2021 U.S. Bermuda U.K. ($ in millions) Required statutory capital and surplus $ 561.2 $ 683.7 $ 800.7 Actual statutory capital and surplus $ 889.7 $ 1,141.0 $ 963.6 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 the sole corporate member of our Lloyd’s Syndicate, AUL was required to hold capital at Lloyd’s of $752.0 million as at December 31, 2021, adjusting funding to meet this level on an annual basis in the following Q2 and not holding less than 90% of this amount at any time. As at December 31, 2021, AUL had capital at Lloyd’s of $704.0 million of which $531.2 million was provided as Funds at Lloyd’s 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 |
Dividends
Dividends | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Dividends | Dividends. On March 4, 2022, 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, 2022 March 15, 2022 5.625%Preference Shares (AHL PRD) $ 0.3516 April 1, 2022 March 15, 2022 5.625%Preference Shares, represented by depositary shares (AHL PRE) (1) $ 351.56 April 1, 2022 March 15, 2022 ______________ (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, 2021 | |
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. Total contributions by the Company to the retirement plans were $13.5 million in the twelve months ended December 31, 2021 (2020 — $12.1 million, 2019 — $12.9 million). |
Share-Based Payments and Long-T
Share-Based Payments and Long-Term Incentive Plan | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 was $0.5 million (December 31, 2020 — $2.1 million), which primarily related to a charge of $0.5 million (December 31, 2020 — $1.3 million) in relation to Performance Units, $Nil (December 31, 2020 — $0.5 million) in relation to previously awarded deferred cash awards and Nil (December 31, 2020 — $0.3 million) in relation to other share-based compensation expense. The income tax effect of this is not considered to be material. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | Intangible Assets and Goodwill The following table provides a summary of the Company’s intangible assets for the twelve months ended December 31, 2021 and 2020: Twelve Months Ended December 31, 2021 Beginning of the Year Additions/(Disposals) Amortization Impairment End of the Year ($ in millions) Intangible Assets Trademarks $ 1.6 $ — $ (0.3) $ — $ 1.3 Agency Relationships 0.6 — (0.6) — — Non-compete Agreements — — — — — Insurance Licenses 16.7 — — — 16.7 Goodwill 3.9 — — — 3.9 Total $ 22.8 $ — $ (0.9) $ — $ 21.9 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 Renewal Rights — — — — — 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 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 $1.3 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, 2021 and December 31, 2020, the Company performed its annual qualitative assessment and determined that it was more likely than not that these were not impaired. |
Operating Leases (Notes)
Operating Leases (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Lessee, Operating Leases | Operating Leases As at December 31, 2021, the Company has recognized right-of-use operating lease assets of $83.4 million, net of impairment and operating lease liabilities of $115.2 million. Right-of-use operating lease assets comprise primarily of leased office real estate globally and other assets. For all office real estate leases, rent incentives, including reduced-rent and rent free periods and contractually agreed rent increases during the lease term, have been included when determining the present value of future cash flows. As part of the Company’s operating effectiveness and efficiency program, we are consolidating our office space. Where negotiations are either in advanced stages of discussion and it is probable that the sub-lease transactions will be completed, or we have agreed terms to sub-lease our office space, we have assessed our right-of-use lease assets for impairment and have recognized a $0.4 million (2020 — $12.9 million) charge within the period. The Company believes its office space is sufficient to conduct its operations for the foreseeable future in these locations. The Company has no lease transactions between related parties. Operating lease charge. The following table summarizes the operating lease charge for the twelve months ended December 31, 2021 and 2020: For the Twelve Months Ended December 31, 2021 December 31, 2020 ($ in millions) Amortization charge on right-of-use operating leased assets $ 12.0 $ 11.8 Interest on operating lease liabilities 5.5 5.5 Operating lease charge $ 17.5 $ 17.3 Lease Liabilities. The following table summarizes the maturity of lease liabilities under non-cancellable leases as of December 31, 2021 and 2020: December 31, 2021 December 31, 2020 ($ in millions) Operating leases — maturities 2021 $ — $ 17.2 2022 17.0 14.2 2023 17.0 13.5 2024 16.5 12.6 2025 16.1 12.2 2026 15.3 12.0 Later years 61.8 51.4 Total minimum lease payments $ 143.7 $ 133.1 Less imputed interest (28.5) (27.1) Total lease liabilities $ 115.2 $ 106.0 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021, the Company recognized IMA fees of $5.8 million (2020 — $5.3 million), of which $3.2 million (2020 — $2.1 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, 2021, the Company recognized Management Consulting fees of $5.0 million (2020 — $5.0 million), of which none remains payable to AMH at year end (2020 — $0.0 million). Other Payables to Related Parties |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingent Liabilities (a) Restricted assets The Company’s subsidiaries are obliged by the terms of its contractual obligations to U.S. policyholders and by obligations to certain regulatory authorities to facilitate issue of letters of credit or maintain certain balances in trust funds for the benefit of policyholders. The following table details the forms and value of Company’s material restricted assets as at December 31, 2021 and 2020: As at December 31, 2021 At December 31, 2020 ($ in millions, except percentages) Regulatory trusts and deposits: Affiliated transactions $ 891.3 $ 1,027.9 Third party 3,099.7 2,762.2 Letters of credit / guarantees (1) 539.8 516.8 Total restricted assets (excluding illiquid assets) 4,530.8 4,306.9 Other investments — real estate funds (illiquid assets) 151.3 109.4 Total restricted assets and illiquid assets $ 4,682.1 $ 4,416.3 Total as percent of cash and invested assets (2) 59.7 % 58.6 % (1) As at December 31, 2021, the Company had pledged funds of $539.8 million (December 31, 2020 — $516.8 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 and paid $0.4 million in the period ending December 31, 2021. Real Estate Funds. We invest in real estate funds which, as is typical for this type of investment, have lock-up periods. A lock-up period is the initial amount of time an investor is contractually required to remain invested before having the ability to redeem. As at December 31, 2021, the lock-up periods across these funds range from one quarter to several years. Thereafter these funds could also be redeemed on a pro-rata basis depending on the liquidity position of the fund. 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. Commercial Mortgage Loans . 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. During the period ending December 31, 2021, $2.5 million (December 31, 2020 $0.5 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, 2021 and 2020, these funds amounted to approximately 59.7% of the $7.8 billion and approximately 58.6% of the $7.5 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, 2021 in the amount of $565.8 million (2020 — $541.4 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, 2021 was £0.4 million (December 31, 2020 — £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 $1,470.5 million as at December 31, 2021 and $1,455.3 million as at December 31, 2020. As at December 31, 2021, the balance (including applicable letter of credit facilities) held in the trust was $1,581.9 million (2020 — $1,478.0 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 $450.4 million and $382.8 million as at December 31, 2021 and 2020, respectively. As at December 31, 2021, the balance held in the U.S. trust fund and other Aspen Bermuda trusts was $519.7 million (2020 — $572.3 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, 2021 was $216.0 million (2020 — $208.0 million). U.S. Regulatory Deposits. As at December 31, 2021, Aspen Specialty had a total of $6.9 million (2020 — $6.7 million) on deposit with six U.S. states in order to satisfy state regulations for writing business in those states. AAIC had a further $6.4 million (2020 — $6.1 million) on deposit with twelve U.S. states. Canadian Trust Fund. Aspen U.K. has established a Canadian trust fund with a Canadian bank to secure a Canadian insurance license. As at December 31, 2021, the balance held in trust was CAD$196.8 million (2020 — CAD$156.8 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, 2021, the balance held in trust was AUD A$226.6 (2020 — AUD$256.6 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, 2021, the balance held in trust was CHF8.0 million (2020 — CHF8.0 million). Singapore Fund. Aspen U.K. has established a segregated Singaporean bank account to secure policyholder liabilities and as a condition for maintaining a Singaporean insurance license and meet local solvency requirements. As at December 31, 2021, the balance in the account was SGD S$178.0 (2020 — SGD$148.9 million). (b) Variable interest entities As at December 31, 2021, the Company had investments in one (December 31, 2020 — 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, 2021, 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, 2021 | |
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, 2021 was $3,298.1 million (2020 — $3,195.2 million) of which $1,981.4 million was uncollateralized (2020 — $2,010.0 million). As at December 31, 2021, of the Company’s uncollateralized reinsurance recoverables 10.8% (2020 — 11.0%) were with Munich Re which is rated A+ by A.M. Best and AA- by S&P, 15.9% (2020 —13.4% ) were with Everest Re which is rated A+ by A.M Best and A+ by S&P, and 9.3% (2020 — 9.2%) 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 $3.8 million. For the twelve months ended December 31, 2021 there was a decrease in the CECL allowance on reinsurance recoverables of $0.5 million (December 31, 2020 — $0.1 million increase). Underwriting premium receivables The total underwriting premium receivable by the Company as at December 31, 2021 was $1,304.6 million (2020 — $1,185.0 million). As at December 31, 2021, $35.4 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 $30.2 million as at December 31, 2021 (2020 — $34.0 million) for underwriting premiums unlikely to be collected. Investments and cash and cash equivalents The Company’s investment policies include specific provisions that limit the allowable holdings of a single issue and issuer. As at December 31, 2021, there were no investments in any single issuer, other than the U.S. government, U.S. government agencies, U.S. government sponsored enterprises, the Canadian government and the U.K. government in excess of 2% of the aggregate investment portfolio. Balances owed by brokers The Company underwrites a significant amount of its business through brokers and a credit risk exists should any of these brokers be unable to fulfill their contractual obligations in respect of insurance or reinsurance balances due to the Company. The following table shows the largest brokers that the Company transacted business within the three years ended December 31, 2021 and the proportion of gross written premiums from each of those brokers. Twelve Months Ended December 31, 2021 2020 2019 (in percentages) Aon Corporation 17.3 % 15.8 % 13.4 % Marsh & McLennan Companies, Inc. 17.5 15.4 13.6 Willis Group Holdings, Ltd. 9.6 10.4 10.3 Other brokers/non-broker sources (1) 55.6 58.4 62.7 Total 100.0 % 100.0 % 100.0 % Gross written premiums ($ millions) $ 3,938.4 $ 3,698.5 $ 3,442.4 ______________ |
Reclassifications from Accumula
Reclassifications from Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 and 2020: Amount Reclassified from AOCI Details about the AOCI Components Twelve Months Ended December 31, 2021 Twelve Months Ended December 31, 2020 Affected Line Item in the ($ in millions) Available for sale securities: Realized (gains) on sale of securities $ (24.8) $ (69.3) Realized and unrealized investment gains Realized losses on sale of securities 4.4 2.2 Realized and unrealized investment losses (20.4) (67.1) Income/(loss) from operations before income tax Tax on net realized gains of securities — — Income tax (expense)/benefit $ (20.4) $ (67.1) Net income/(loss) Realized derivatives: Net realized gains on settled derivatives (6.2) 0.3 General, administrative and corporate expenses Tax on settled derivatives — — Income tax (expense)/benefit $ (6.2) $ 0.3 Net income/(loss) Total reclassifications from AOCI to the statement of operations, net of income tax $ (26.6) $ (66.8) Net income/(loss) |
Credit Facility and Long-term D
Credit Facility and Long-term Debt | 12 Months Ended |
Dec. 31, 2021 | |
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 financing through secured and unsecured credit facilities. Credit Agreement. On December 1, 2021, Aspen Holdings and certain of its direct or indirect subsidiaries (collectively, the “Borrowers”) entered into a Third 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 and the Second Amended and Restated Credit Agreement, dated as of March 27, 2017, among Aspen Holdings, certain subsidiaries thereof, various lenders and Barclays Bank plc, as administrative agent. The Credit Agreement will be used by the Borrowers to finance the working capital needs of the Aspen Holdings and its subsidiaries, for letters of credit in connection with the insurance and reinsurance businesses of the Company and its subsidiaries and borrowings for other general corporate purposes. Initial availability under the Credit Agreement is $300,000,000 and the Company has the right to request (subject to the terms and conditions of the Credit Agreement) an increase to the credit facility by up to $100,000,000. The Credit Agreement will expire on December 1, 2026. As at December 31, 2021, $100,000,000 in 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, non-credit enhanced debt rating of the Company, as determined 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 as at the last day of each fiscal quarter of the Company to be less than the sum of (i) $2,019,600,000, (ii) 25% of consolidated net income during the period from January 1, 2021 to and including such last day of such fiscal quarter (if positive) and (iii) 25% of the aggregate net cash proceeds of all issuances by the Company of shares of its capital stock during the period from January 1, 2021 to and including such last day of such fiscal quarter, (b) the ratio of its total consolidated debt to the sum of such debt plus our consolidated tangible net worth to exceed 35% as at the last day of any fiscal quarter of the Company 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 June 26, 2020, Aspen Bermuda and Citibank Europe plc (“Citi Europe”) amended the committed letter of credit facility, dated July 30, 2012, as amended with effect on June 30, 2014, June 30, 2016, June 30, 2018 and September 20, 2019 (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 December 18, 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, 2021, we had $452.4 million of outstanding collateralized letters of credit under the LOC Facility (December 31, 2020 — $444.2 million). (ii) On February 7, 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 1, 2021, AUL and Aspen Holdings (acting as guarantor of AUL), entered into a letter of credit facility agreement for the account of AUL, pursuant to which a syndicate of lenders issued a several letter of credit in an aggregate amount of $195,000,000, for the benefit of Lloyd’s, to support AUL’s Funds at Lloyd’s requirements in connection with the 2022 year of account at Lloyd’s. This replaced the letter of credit facility agreement, dated November 3, 2020, entered into between AUL, Aspen Holdings (acting as guarantor of AUL) and various lenders, for the account of AUL, pursuant to which a lender provided a maximum aggregate amount of $95,000,000 to support AUL’s Funds at Lloyd’s requirements in connection with the 2021 year of account at Lloyd’s, as amended on May 7, 2021. This letter of credit facility was subsequently increased to $235,000,000 on May 6, 2022 in connection with the 2022 year of account mid-year capital coming-into-line process. (iv) On November 30, 2021, AUL and Aspen Holdings (acting as guarantor of AUL) amended a Funds at Lloyd’s Facility Agreement dated November 25, 2020, for the account of AUL. This facility provides that a maximum aggregate amount of up to $80 million of acceptable securities may be deposited with, and for the benefit of, Lloyd’s on behalf of AUL to support AUL’s Funds at Lloyd’s requirements in connection with the 2022 year of account at Lloyd’s. (v) On November 30, 2021, AUL and Aspen Bermuda (acting as AUL’s guarantor) amended a Funds at Lloyd’s Facility Agreement dated November 30, 2021, for the account of AUL. This facility terminates on November 30, 2022 and provides that a maximum aggregate amount of up to $150 million of acceptable securities may be deposited with, and for the benefit of, Lloyd’s on behalf of AUL to support AUL’s Funds at Lloyd’s requirements in connection with the 2022 year of account at Lloyd’s. As at December 31, 2021, $150 million in securities were pledged on behalf of AUL under this facility. (vi) On November 5, 2021, Aspen Bermuda entered into an uncommitted Continuing Agreement for Standby Letters of Credit and Demand Guarantees, where Aspen Bermuda has the ability to request letters of credit to be used in support of policyholder obligations with the consent of the lender. The fee associated with this facility is a facility fee based on the aggregate face amount of outstanding letters of credit. As at December 31, 2021 we had $90 million of outstanding collateralized letters of credit under this facility. (vii) On April 1, 2021, the Company’s subsidiaries, AAIC and Aspen Specialty, each established a secured line of credit at Federal Home Loan Bank of Boston (“FHLBB”). Advances may be used to support general corporate purposes. The maximum amount available under these facilities will vary based on the borrower’s net admitted assets and the lender’s underwriting criteria. Aspen Specialty’s maximum borrowing capacity available from the FHLBB is approximately $182 million. Under Texas state insurance law, without the prior consent of the Texas Department of Insurance, the amount of assets AAIC may pledge to secure debt obligations is limited to 10% of its reserve assets, resulting in a maximum borrowing capacity for AAIC under its FHLBB facility of approximately $123 million. Neither AAIC nor Aspen Specialty expects to draw on these facilities in the near future. (viii) On November 5, 2021, Aspen Holdings entered into a letter of credit facility agreement. The letter of credit issued under this facility is the for the benefit of Aspen Bermuda, as beneficiary, and has been applied towards the eligible capital of Aspen Bermuda, and classified as ancillary Tier 3 capital of such entity, in accordance with applicable Bermuda laws and regulations. The total commitment under the facility is $100,000,000. (ix) On December 29, 2021, Aspen Holdings entered into a committed letter of credit facility agreement. The letter of credit issued under this facility is for the benefit of Aspen Bermuda, as beneficiary, and has been applied towards the eligible capital of Aspen Bermuda, and classified as ancillary Tier 3 capital of such entity, in accordance with applicable Bermuda laws and regulations. The total commitment under the facility is $75,000,000. 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, with such financial covenants largely consistent with these set forth in the Credit Agreement. 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 $50.0 million. The following table summarizes our contractual obligations under long-term debt as at December 31, 2021. Payments Due By Period Contractual Basis Less than 1-3 years 3-5 years More than 5 years Total ($ in millions) Long-term Debt Obligations $ — $ 300.0 $ — $ — $ 300.0 The Senior Notes obligation disclosed above does not include the $14.0 million annual interest payable associated with the Senior Notes. |
Credit Losses
Credit Losses | 12 Months Ended |
Dec. 31, 2021 | |
Credit Loss [Abstract] | |
Allowance for Expected Credit Losses | Allowance for Expected Credit Losses The following tables summarize the Company’s allowance for expected credit losses for the twelve months ended December 31, 2021 in investments, reinsurance recoverables and receivables following the adoption of ASU 2016-13 Financial Instruments - Credit Losses (Topic 326) ”: Twelve Months Ended December 31, 2021 ($ in millions) Investments Reinsurance Recoverables Receivables Total Opening value as at January 1, 2021 $ 0.2 $ 3.8 $ 34.0 $ 38.0 Movement of the allowance for credit losses during the year 2.5 (0.5) (3.8) (1.8) Closing value as at December 31, 2021 $ 2.7 $ 3.3 $ 30.2 $ 36.2 Twelve Months Ended December 31, 2020 ($ in millions) Investments Reinsurance Recoverables Receivables Total Opening value as at January 1, 2020 $ 0.6 $ 3.7 $ 23.0 $ 27.3 Movement of the allowance for credit losses during the year (0.4) 0.1 11.0 10.7 Closing value as at December 31, 2020 $ 0.2 $ 3.8 $ 34.0 $ 38.0 |
Accounting Changes and Error Co
Accounting Changes and Error Corrections | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
Prior Year Restatement | Correction of Immaterial Errors During the current year, management identified immaterial errors which resulted in the revision of the Company's comparative financial statements, as further described below: Foreign exchange gains and losses. During the second quarter of 2021, the Company identified an error regarding incorrect treatment of foreign exchange gains and losses arising as a result of currency matching issues within Aspen U.K.’s underwriting premiums receivable. The error resulted in previous foreign exchange revaluation and translation amounts, which should have been matched with an underwriting premium receivable payment being carried over, and were incorrectly included in Aspen U.K.’s underwriting premiums receivable, thereby overstating the related asset value. As a result underwriting premiums receivable, retained earnings and accumulated other comprehensive income were corrected downward by $89.7 million, $2.1 million and $87.6 million, respectively as at December 31, 2020. Income tax expense. During the year, the Company identified an error regarding the completeness and accuracy of the information used in recognizing both current and deferred income taxes on Aspen U.K.’s branches and the associated application thereof in respect of local tax rules in the various jurisdiction. As a result, tax liability increased by $10.3 million, retained earnings were corrected downward by $16.0 million and accumulated other comprehensive income being corrected upward by $5.7 million, respectively as at and for the period December 31, 2020. Net earned premium . During the year, the Company identified immaterial differences within gross written and re-insurance premium relating to prior year which have been corrected. As a result gross written premium and underwriting premium receivable were corrected downward by $5.1 million, retained earnings were corrected downward by $5.3 million and reinsurance premiums payables increased by $5.3 million, respectively as at December 31, 2020. The Company has concluded that these errors are immaterial to the prior period financial statements of Aspen Holdings and correcting the income statement errors in the current period would likely materially misstate the current period financial statements. In accordance with U.S. GAAP, we have, therefore, corrected the errors in the comparatives of the 2021 financial statements of Aspen Holdings by adjusting 2020 and 2019 prior period information and adding disclosure of the errors. The tables below sets out the impact of these corrections to the twelve months ended December 31, 2020 and 2019 relating to these immaterial errors: For the Twelve Months Ended December 31, 2020 ($ in millions) As Previously Reported Corrections As Currently Reported CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME Gross written premium $ 3,703.6 $ (5.1) $ 3,698.5 Net realized and unrealized exchange gains/(losses) (12.4) (1.4) (13.8) Income tax expense (8.6) (9.8) (18.4) Net Loss $ (40.1) $ (16.3) $ (56.4) As at December 31, 2020 ($ in millions) As Previously Reported Corrections As Currently Reported CONSOLIDATED BALANCE SHEET Assets Underwriting premium receivables $ 1,279.8 $ (94.8) $ 1,185.0 Liabilities Reinsurance premiums payables $ 567.5 $ 5.3 $ 572.8 Income taxes payable $ 3.7 $ 5.1 $ 8.8 Deferred tax liability $ — $ 5.2 $ 5.2 Equity Opening retained earnings $ 1,514.6 $ (12.2) $ 1,502.4 Net (loss) for the year $ (40.1) $ (16.3) $ (56.4) Accumulated Other Comprehensive Income Cumulative foreign currency translation Opening balance $ (80.2) $ (85.3) $ (165.5) Changes for the period $ (9.6) $ (2.3) $ (11.9) Unrealized appreciation/(depreciation) on investments, net of taxes Changes for the period $ 102.3 $ 5.7 $ 108.5 As at December 31, 2020 ($ in millions) As Previously Reported Corrections As Currently Reported CONSOLIDATED STATEMENTS OF CASH FLOWS Cash flows from/(used in) operating activities: Net (loss) $ (40.1) $ (16.3) $ (56.4) Deferred tax (benefit) $ (5.7) $ 4.7 $ (1.0) Net realized and unrealized investment foreign exchange (gains) $ (23.1) $ (2.2) $ (25.3) Changes in: Premiums receivable $ 71.2 $ 8.7 $ 79.9 Income tax payable $ 2.5 $ 5.1 $ 7.6 Net cash from (used in) operating activities $ (672.7) $ — $ (672.7) As at December 31, 2019 ($ in millions) As Previously Reported Corrections As Currently Reported CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME Net realized and unrealized exchange gains/(losses) $ (11.8) $ 2.2 $ (9.6) Net (loss) $ (241.7) $ 2.2 $ (239.5) |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Australian Coverholder and Service Company. Effective January 1, 2022, Aspen Australia Service Company is acting as a coverholder to place business on AMAL, in respect of reinsurance business written via Australia. Loss Portfolio Transfer Agreement. On January 10, 2022, Aspen Holdings and certain of its subsidiaries (“Aspen”) entered into an Amended and Restated Reinsurance Agreement with a subsidiary of Enstar Group Limited (the “Agreement”), which amends and restates the Adverse Development Cover Agreement, dated as of March 2, 2020 (the “Original Agreement”), previously entered into between the parties. Under the terms of the Agreement, Enstar’s subsidiary will reinsure net losses incurred on or prior to December 31, 2019 on all of Aspen’s net loss reserves of $3.12 billion as of September 30, 2021. The Agreement provides for a limit of $3.57 billion in consideration for a premium of $3.16 billion. The amount of net loss reserves ceded, as well as the premium and limit amounts provided under the Agreement, will be adjusted for claims paid between October 1, 2021 and the closing date of the transaction. The premium includes $770.0 million of premium previously paid with respect to reserves ceded under the Original Agreement, which will continue to be held in trust accounts to secure the Enstar subsidiary’s obligations under the Agreement. The incremental new premium will initially be held in funds withheld accounts maintained by Aspen but will be released to the trust accounts maintained by the Enstar subsidiary no later than September 30, 2025. The funds withheld by Aspen will be credited with interest at an annual rate of 1.75% plus, for periods after October 1, 2022, an additional amount equal to 50% of the amount by which the total return on Aspen’s investments and cash and cash equivalents exceeds 1.75%. Under the Agreement, the Enstar subsidiary will assume claims control upon closing and entrance into an administrative services agreement. The Agreement includes customary representations and warranties, indemnification obligations, covenants and termination rights of the parties. Completion of the transaction is subject to regulatory approvals and satisfaction of various other closing conditions. The transaction is expected to close in the first half of 2022. If the transaction cannot be completed, the Original Agreement would remain in effect. |
Schedule I - Investments
Schedule I - Investments | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Abstract] | |
Schedule I - Investments | SCHEDULE I - INVESTMENTS For the Twelve Months Ended December 31, 2021, 2020 and 2019 |
Schedule II - Condensed Financi
Schedule II - Condensed Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule II - Condensed Financial Information of Registrant | SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT BALANCE SHEETS As at December 31, 2021 and 2020 As at December 31, 2021 As at December 31, 2020 ($ in millions, except per share amounts) ASSETS Fixed income maturities (trading) 42.6 — Cash and cash equivalents 45.0 92.4 Investments in subsidiaries (1) (2) 3,142.0 3,215.2 Intercompany funds due from affiliates 1.3 0.7 Right-of-use operating lease assets 2.5 1.0 Other assets 8.0 6.4 Total assets $ 3,241.4 $ 3,315.7 LIABILITIES Accrued expenses and other payables 25.5 24.3 Intercompany funds due to affiliates 139.0 103.4 Long-term debt 299.9 299.9 Operating lease liabilities 2.2 0.9 Total liabilities $ 466.6 $ 428.5 SHAREHOLDERS’ EQUITY Ordinary Shares: 60,395,839 shares of par value $0.01 each (December 31, 2020 — 60,395,839) $ 0.6 $ 0.6 Additional paid in capital 1,514.7 1,469.7 Retained earnings (2) 1,382.5 1,397.2 Accumulated other comprehensive income, net of taxes: Unrealized gains on investments 34.6 192.5 (Loss)/gain on derivatives (1.6) 4.6 Gains on foreign currency translation (2) (156.0) (177.4) Total accumulated other comprehensive (loss)/income (123.0) 19.7 Total shareholders’ equity (2) 2,774.8 2,887.2 Total liabilities and shareholders’ equity $ 3,241.4 $ 3,315.7 ____________________ (1) The Company’s investment in subsidiaries are accounted for under the equity method and adjustments to the carrying value of these investments are made based on the Company’s share of capital, including share of income and expenses. Changes in the value were recognized in realized and unrealized investment gains and losses in the statement of operations. (2) Prior period information for the periods ended December 31, 2020 have been restated to account for the corrections identified in Note 26 in these consolidated financial statements, “Correction of Immaterial Errors” as follows: • Investment in subsidiaries has been restated downward by $110.4 million as at December 31, 2020 • Total shareholders’ equity has been restated downward by $110.4 million as at December 31, 2020, split between retained earnings and accumulated other comprehensive income totaling $28.5 million and $81.9 million, respectively. ASPEN INSURANCE HOLDINGS LIMITED SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT - Continued STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME For the Twelve Months Ended December 31, 2021, 2020 and 2019 Twelve Months Ended December 31, 2021 Twelve Months Ended December 31, 2020 Twelve Months Ended December 31, 2019 ($ in millions) Operating Activities: Equity in net earnings/(losses) of subsidiaries and other investments, equity method (1) $ (90.5) $ (108.4) $ (412.9) Dividend income 193.0 141.5 270.0 Net realized and unrealized investment gains/(losses) (0.5) 2.5 2.6 Total revenues 102.0 35.6 (140.3) Expenses: General, administrative and corporate expenses (54.6) (74.6) (70.2) Interest expense (14.3) (14.3) (25.7) Other expense (3.3) (3.1) (3.3) Income/(loss) from operations before income taxes 29.8 (56.4) (239.5) Income tax expense — — — Net income /(loss) (1) 29.8 (56.4) (239.5) Amount attributable to non-controlling interest — — 1.2 Net income/(loss) attributable to Aspen Insurance Holdings Limited ordinary shareholders 29.8 (56.4) (238.3) Other comprehensive (loss)/income, net of taxes: Change in unrealized (losses)/gains on investments (1) (158.6) 108.0 151.3 Net change from current period hedged transactions (6.2) 0.3 4.0 Change in foreign currency translation adjustment (1) 21.4 (11.9) (25.0) Other comprehensive (loss)/income, net of tax (143.4) 96.4 130.3 Comprehensive (Loss) / Income $ (113.6) $ 40.0 $ (108.0) _________________ (1) Equity in net earnings/(losses) of subsidiaries and other investments, Net income/ (loss) and accumulated other comprehensive (loss)/income have been restated to account for the corrections of immaterial errors identified in Note 26 in these consolidated financial statements, “Correction of Immaterial Errors” as follows: • Equity in net earnings/(losses) of subsidiaries and other investments, equity method, has been restated and increased losses by $16.3 million for the twelve months ended, December 31, 2020. (decreased losses by $2.2 million for the twelve months ended, December 31, 2019). • Change in unrealized (losses)/gains on investments has been restated upward by $5.7 million for the twelve months ended, December 31, 2020. • Change in foreign currency translation adjustment has been restated downward by $2.3 million and $0.2 million for the twelve months ended, December 31, 2020 and 2019. ASPEN INSURANCE HOLDINGS LIMITED SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT - Continued STATEMENTS OF CASH FLOWS For the Twelve Months Ended December 31, 2021, 2020 and 2019 Twelve Months Ended December 31, 2021 Twelve Months Ended December 31, 2020 Twelve Months Ended December 31, 2019 ($ in millions) Cash Flows From/(Used In) Operating Activities: Net income (1) (excluding equity in net earnings of subsidiaries) $ 120.3 $ 52.0 $ 174.6 Adjustments: Realized and unrealized (gains)/losses (6.7) 1.5 9.6 Loss/(gain) on derivative contracts 6.2 (0.3) (4.0) Amortization of right-to-use operating lease assets 0.5 0.4 0.3 Interest on operating lease liabilities 0.1 (0.4) 0.2 Change in other assets (1.6) 0.5 2.1 Change in accrued expenses and other payables 1.4 15.9 (51.2) Change in intercompany activities 35.0 41.6 (59.0) Change in right-of use assets (2.0) — — Change in operating lease liabilities 1.5 — (0.5) Net cash generated by operating activities 154.7 111.2 72.1 Cash Flows (Used in)/From Investing Activities: (Purchases)/proceeds of fixed income securities (42.6) 75.6 (75.6) Investment in subsidiaries (115.0) (87.3) (82.7) Net cash (used in) investing activities (157.6) (11.7) (158.3) Cash Flows (Used in)/From Financing Activities: Proceeds from issuance of ordinary shares, net of issuance costs — — 1.4 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) (44.5) (35.9) Repayment of long-term debt issued by Silverton — — (7.7) Make-whole payment — — (5.5) Minority interest buy-out — — (0.8) Long-term debt redeemed — — (125.0) Net cash (used in)/from financing activities (44.5) (44.5) 68.0 (Decrease)/increase in cash and cash equivalents (47.4) 55.0 (18.2) Cash and cash equivalents — beginning of period 92.4 37.4 55.6 Cash and cash equivalents — end of period $ 45.0 $ 92.4 $ 37.4 _________ (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, 2021 | |
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, 2021, 2020 and 2019 Supplementary Information ($ in millions) Year Ended December 31, 2021 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 $ 205.2 $ 2,148.4 $ 688.6 $ 1,118.8 $ 705.2 $ 221.6 $ 1,199.0 $ 121.3 Insurance 85.6 2,165.3 827.6 1,291.7 988.1 192.5 1,388.7 211.8 Total $ 290.8 $ 4,313.7 $ 1,516.2 $ 2,410.5 $ 147.5 $ 1,693.3 $ 414.1 $ 2,587.7 $ 333.1 Year to date December 31, 2020 Deferred Policy Acquisition Costs Net Reserves for Losses and LAE Net Net Premiums Earned (1) Net Investment Income Losses and LAE Expenses Policy Acquisition Expenses Net Premium Written (1) General and Administrative Expenses Reinsurance $ 206.8 $ 2,095.7 $ 617.6 $ 1,287.7 $ 958.6 $ 246.0 $ 1,297.7 $ 110.8 Insurance 99.8 1,874.4 746.1 1,239.8 882.2 219.7 1,280.1 197.2 Total $ 306.6 $ 3,970.1 $ 1,363.7 $ 2,527.5 $ 154.6 $ 1,840.8 $ 465.7 $ 2,577.8 $ 308.0 Year to date December 31, 2019 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 $ 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 |
Schedule IV - Reinsurance
Schedule IV - Reinsurance | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |
Schedule IV - Reinsurance | SCHEDULE IV - REINSURANCE For the Twelve Months Ended December 31, 2021, 2020 and 2019 Premiums Written Direct Assumed Ceded Net Amount ($ in millions) 2021 $ 2,341.4 $ 1,597.0 $ (1,350.7) $ 2,587.7 2020 (1) $ 2,042.1 $ 1,656.4 $ (1,120.7) $ 2,577.8 2019 $ 1,956.9 $ 1,485.5 $ (1,014.5) $ 2,427.9 Premiums Earned Gross Amount Assumed From Ceded to Other Companies Net Amount Percentage of Amount Assumed to Net ($ in millions, except for percentages) 2021 $ 2,139.1 $ 1,479.2 $ (1,207.8) $ 2,410.5 61.4 % 2020 (1) $ 2,026.4 $ 1,612.0 $ (1,110.9) $ 2,527.5 63.8 % 2019 $ 1,927.5 $ 1,494.9 $ (1,129.1) $ 2,293.3 65.2 % (1) For the period twelve months ended December 31, 2020 net premiums written and net premiums earned have been corrected downward by $5.1 million for immaterial errors. Refer to Note 26 in these consolidated financial statements, “Correction of Immaterial Errors” for further details |
Schedule V - Valuation and Qual
Schedule V - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule V - Valuation and Qualifying Accounts | SCHEDULE V - VALUATION AND QUALIFYING ACCOUNTS For the Twelve Months Ended December 31, 2021, 2020 and 2019 The following table shows the movement in the Company’s bad debt provision during the twelve months ended December 31, 2021, 2020 and 2019: Balance at Charged to Costs and Expenses Charged to Other Accounts Deductions Balance at Provisions for Bad Debt ($ in millions) 2021 Premiums receivable from underwriting activities $ 34.0 $ (3.8) $ — $ — $ 30.2 Reinsurance $ — $ — $ — $ — $ — 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 $ — $ — $ — $ — $ — |
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, 2021 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates Assumptions and estimates made by management have a significant effect on the amounts reported within the consolidated financial statements. The most significant of these relate to losses and loss adjustment expenses, reinsurance recoverables, gross written premiums and commissions which have not been reported to the Company such as those relating to proportional treaty reinsurance contracts, unrecognized tax benefits, recoverability of deferred tax assets, 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. 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. 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. Accounting for Retroactive Reinsurance Agreements. Retroactive reinsurance agreements are reinsurance agreements under which a reinsurer agrees to reimburse the Company as a result of past insurable events. For these agreements, the excess of the amounts ultimately collectible under the agreement over the consideration paid is recognized as a deferred gain liability which is amortized into income over the settlement period of the ceded reserves once the paid losses have exceeded the minimum retention. The amount of the deferral is recalculated each period based on actual loss payments and updated estimates of ultimate losses. If the consideration paid exceeds the ultimate losses collectible under the agreement, the net loss on the retroactive reinsurance agreement is recognized within income immediately. 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. 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. Commissions received related to reinsurance premiums ceded are netted against broker commissions in determining acquisition costs eligible for deferral. 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 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 investments in real estate funds. 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 |
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 for each period, 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. |
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. |
Accounting for Long-term Debt Issued by Variable Interest Entities | |
Accounting Pronouncements | Accounting Pronouncements Accounting Pronouncements Adopted in 2021 On December 18, 2019, Financial Accounting Standards Board (the “FASB”) issued ASU 2019-12, “ Income Taxes (Topic 740) ” which makes amendments aimed at simplifying the accounting for income taxes. This ASU was 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 year. 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 was 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. On January 7, 2021, the FASB issued ASU 2021-01, “Reference Rate Reform (Topic 848)” which provides additional clarification on the scope of Topic 848 so that derivatives affected by the discounting transition are explicitly eligible for certain optional expedients and exceptions in Topic 848. Additionally, to clarify that a receive-variable-rate, pay-variable-rate cross-currency interest rate swap may be considered an eligible hedging instrument in a net investment hedge if both legs of the swap do not have the same repricing intervals and dates as a result of reference rate reform. This ASU was effective as of January 7, 2021. Adoption of this ASU did not have a material impact on the Company’s financial statements and disclosures. Accounting Pronouncements Not Yet Adopted Other accounting pronouncements were issued during the year ended December 31, 2021 which were either not relevant to the Company or did not impact the Company’s consolidated financial statements. (n) Correction of Immaterial Errors During the current year, management identified immaterial errors which resulted in a revision of the Company's historical financial statements, as further described below: Foreign exchange gains and losses. During the second quarter of 2021, the Company identified an error regarding incorrect treatment of foreign exchange gains and losses arising as a result of currency matching issues within Aspen U.K.’s underwriting premiums receivable. The error resulted in previous foreign exchange revaluation and translation amounts, which should have been matched with an underwriting premium receivable payment being carried over, and were incorrectly included in Aspen U.K.’s underwriting premiums receivable, thereby overstating the related asset value. Income tax expense. During the year, the Company identified an error regarding the completeness and accuracy of the information used in recognizing both current and deferred income taxes on Aspen U.K.’ branches and the associated application thereof in respect of local tax rules in the various jurisdiction. Net earned premium . During the year, the Company identified immaterial differences within gross written and re-insurance premium relating to prior year which have been corrected. The Company has concluded that these errors are immaterial to the prior period financial statements of Aspen Holdings and that correcting the income statement errors in the current period would likely materially misstate the current period financial statements. In accordance with U.S. GAAP, we have, therefore, corrected the errors in the comparatives of the 2021 financial statements of Aspen Holdings by adjusting 2020 and 2019 prior period information and adding disclosure of the errors. Refer to Item 18, Note 26, “Correction of Immaterial Errors” of our consolidated financial statements for additional information. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 income or loss, ratios and reserves for each of the Company’s business segments for the twelve months ended December 31, 2021, 2020 and 2019: Twelve Months Ended December 31, 2021 Reinsurance Insurance Total ($ in millions) Underwriting Revenues Gross written premiums $ 1,597.0 $ 2,341.4 $ 3,938.4 Net written premiums 1,199.0 1,388.7 2,587.7 Gross earned premiums 1,479.2 2,139.1 3,618.3 Net earned premiums 1,118.8 1,291.7 2,410.5 Underwriting Expenses Losses and loss adjustment expenses 705.2 988.1 1,693.3 Amortization of deferred policy acquisition costs 221.6 192.5 414.1 General and administrative expenses 121.3 211.8 333.1 Underwriting income/(loss) 70.7 (100.7) (30.0) Corporate expenses (64.3) Non-operating expenses (20.6) (1) Net investment income 147.5 Realized and unrealized investment gains 56.2 Realized and unrealized investment losses (47.4) Change in fair value of derivatives (35.9) Interest expense on long term debt (14.3) Net realized and unrealized foreign exchange gains 40.0 Other income 14.7 Other expenses (10.8) Income before income taxes 35.1 Income tax (expense) (5.3) Net income $ 29.8 Net reserves for loss and loss adjustment expenses $ 2,148.4 $ 2,165.3 $ 4,313.7 Ratios Loss ratio 63.0 % 76.5 % 70.2 % Policy acquisition expense ratio 19.8 14.9 17.2 General and administrative expense ratio 10.8 16.4 13.8 Expense ratio 30.6 31.3 31.0 Combined ratio 93.6 % 107.8 % 101.2 % _______________ (1) Non-operating expenses includes $19.3 million of severance, consulting and professional services in relation to non-recurring projects and other costs, $0.4 million of impairment charges related to lease assets as a result of exiting certain office space and $0.9 million of amortization of intangible assets and other non-operating expenses. Twelve Months Ended December 31, 2020 Reinsurance Insurance Total ( $ in millions) Underwriting Revenues Gross written premiums $ 1,656.4 $ 2,042.1 $ 3,698.5 (2) Net written premiums 1,297.7 1,280.1 2,577.8 (2) Gross earned premiums 1,612.0 2,026.4 3,638.4 (2) Net earned premiums 1,287.7 1,239.8 2,527.5 (2) 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) (27.7) (59.3) (87.0) (2) 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) (13.8) (2) Other income 49.8 Other expenses (10.8) (Loss) before income taxes (38.0) (2) Income tax (expense) (18.4) (2) Net (loss) $ (56.4) (2) Net reserves for loss and loss adjustment expenses $ 2,095.7 $ 1,874.4 $ 3,970.1 Ratios Loss ratio 74.4 % 71.1 % 72.8 % Policy acquisition expense ratio 19.1 17.7 18.4 General and administrative expense ratio 8.6 15.9 12.2 Expense ratio 27.7 33.6 30.6 Combined ratio 102.1 % 104.7 % 103.4 % ________________ (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 $1.6 million of amortization of intangible assets and other non-operating expenses. (2) Net earned premium has been corrected for immaterial errors in relation to gross written premium and reinsurance premium payables for periods 2020 and prior. Net realized and unrealized exchange gains/(losses) and change in foreign currency translation adjustment have been corrected to account for the correction of foreign exchange movements on underwriting premium receivables which should have been matched with an underwriting premium receivable payment for periods 2020 and prior. Income tax expense has been corrected for historic current and deferred income tax on Aspen U.K’s branches due to the deficiency in the completeness and accuracy of branch data and associated application thereof in respect of local tax rules in various jurisdictions. Total revenues, net income/(loss) and other comprehensive income/(loss) before and after tax have been corrected as a result of the corrections mentioned above for periods 2020 and 2019. Refer to Note 26 in these consolidated financial statements, “Correction of Immaterial Errors” for further details. Twelve Months Ended December 31, 2019 Reinsurance Insurance Total ($ 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) (3) Interest expense on long term debt (20.2) Net realized and unrealized foreign exchange (losses) (9.6) (2) Other income 4.9 Other expenses (1.7) (Loss) before income taxes (216.6) (2) Income tax (expense) (22.9) Net (loss) $ (239.5) (2) 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 14.9 Expense ratio 30.0 36.3 32.9 Combined ratio 103.1 % 109.7 % 106.1 % _______________ (1) Non-operating expenses includes $103.4 million of expenses 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) Net realized and unrealized exchange gains/(losses) have been corrected to account for the correction of foreign exchange movements which should have been matched with an underwriting premium receivable payment for periods 2020 and prior, totaling a $2.2 million gain in 2019. Income/(loss) before and after tax figures have been corrected as a result of the correction to net realized and unrealized exchange gains and losses for the periods mentioned. |
Schedule of gross written premiums based on geographical areas | Geographical Areas . The following summary presents the Company’s gross written premiums based on the location of the insured risk for the twelve months ended December 31, 2021, 2020 and 2019. For the Twelve Months Ended December 31, 2021 December 31, 2020 December 31, 2019 ($ in millions) Australia/Asia $ 275.8 $ 259.7 $ 215.9 Caribbean 12.9 6.0 9.3 Europe 140.6 92.5 82.8 United Kingdom 393.2 369.0 295.7 United States & Canada (1) 2,301.8 2,267.5 2,003.9 Worldwide excluding United States (2) 31.5 23.1 63.0 Worldwide including United States (3) 592.2 501.2 614.9 Others 190.4 179.5 156.9 Total $ 3,938.4 $ 3,698.5 $ 3,442.4 ______________ (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, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Investment Income | The following table summarizes investment income for the twelve months ended December 31, 2021, 2020 and 2019: For the Twelve Months Ended December 31, 2021 December 31, 2020 December 31, 2019 ($ in millions) Fixed income securities — Available for sale $ 87.2 $ 106.5 $ 128.2 Fixed income securities — Trading 30.2 32.8 42.0 Short-term investments — Available for sale 0.1 0.8 2.3 Short-term investments — Trading — 0.5 2.5 Fixed term deposits (included in cash and cash equivalents) 0.7 6.4 19.5 Catastrophe bonds — Trading 0.9 1.4 2.3 Privately-held investments — Trading 18.2 20.9 3.4 Other investments, at fair value (1) 21.9 (2.0) 8.9 Total 159.2 167.3 209.1 Investment expenses (11.7) (12.7) (11.8) Net investment income $ 147.5 $ 154.6 $ 197.3 _____________ |
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, 2021, 2020 and 2019: For the Twelve Months Ended December 31, 2021 December 31, 2020 December 31, 2019 ($ in millions) Available for sale: Fixed income securities — gross realized gains $ 22.7 $ 68.8 $ 14.4 Fixed income securities — gross realized (losses) (3.6) (1.8) (7.3) Cash and cash equivalents — gross realized gains 2.0 0.5 0.1 Cash and cash equivalents — gross realized (losses) (0.8) (0.4) (0.2) Net change in expected credit gains (2.5) 0.4 — Trading: Fixed income securities — gross realized gains 12.2 18.2 34.3 Fixed income securities — gross realized (losses) (2.0) (3.8) (2.6) Cash and cash equivalents — gross realized gains 0.1 0.2 — Cash and cash equivalents — gross realized (losses) (0.3) (0.3) (0.3) Privately-held investments — gross realized gains 0.6 — 0.2 Privately-held investments — gross realized (losses) (13.8) — (0.2) Privately-held investments — net unrealized gains/(losses) 18.1 (20.4) — Catastrophe bonds — net unrealized (losses)/gains (0.8) — 0.9 Net unrealized (losses)/gains (23.4) — 47.2 Investments — equity method: Gross realized and unrealized gain (loss) in MVI 0.1 (0.4) (0.1) Gross unrealized gain in Multi-Line Reinsurer 0.2 — — Gross realized and unrealized (loss) gain in Digital Risk — (0.3) (0.2) 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 recorded in the statement of operations $ 8.8 $ 71.1 $ 86.2 Change in available for sale net unrealized (losses)/gains: Fixed income securities (157.6) 108.5 164.9 Income tax expense (0.3) (0.5) (13.6) Total change in net unrealized (losses)/gains, net of taxes recorded in other comprehensive income $ (157.9) $ 108.0 $ 151.3 |
Cost or Amortized Cost, Unrealized and Realized Gains and Losses and Estimated Fair Value of Available for Sale 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, 2021 and December 31, 2020: As at December 31, 2021 Cost or Gross Gross Allowance for Credit Losses Fair Market ($ in millions) U.S. government $ 1,066.2 $ 24.0 $ (5.9) $ — $ 1,084.3 U.S. agency 20.7 0.8 — — 21.5 Municipal 81.2 2.0 (0.5) (0.1) 82.6 Corporate 2,176.1 47.5 (13.0) (2.3) 2,208.3 Non-U.S. government-backed corporate 138.5 0.2 (1.9) — 136.8 Non-U.S. government 250.8 1.4 (1.2) (0.3) 250.7 Asset-backed 0.5 — — — 0.5 Non-agency commercial mortgage-backed 6.6 0.3 — — 6.9 Agency mortgage-backed 1,082.9 19.1 (12.0) — 1,090.0 Total fixed income securities — Available for sale 4,823.5 95.3 (34.5) (2.7) 4,881.6 Total short-term investments — Available for sale 10.1 — — — 10.1 Total $ 4,833.6 $ 95.3 $ (34.5) $ (2.7) $ 4,891.7 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 |
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, 2021 and December 31, 2020: As at December 31, 2021 Cost or Gross Gross Fair Market ($ in millions) Fixed Income Securities — Trading U.S. government $ 115.9 $ 0.6 $ (0.2) $ 116.3 Municipal 3.9 0.1 — 4.0 Corporate 95.7 1.9 (0.8) 96.8 High yield loans 77.2 0.1 (0.4) 76.9 Non-U.S. government-backed corporate 13.3 — (0.2) 13.1 Non-U.S. government 34.9 — (0.4) 34.5 Asset-backed 784.3 3.3 (1.9) 785.7 Agency mortgage-backed 30.3 0.2 (0.3) 30.2 Total fixed income securities — Trading 1,155.5 6.2 (4.2) 1,157.5 Short-term investments — Trading 2.0 — — 2.0 Catastrophe bonds — Trading 5.3 — (1.9) 3.4 Privately-held investments — Trading Commercial mortgage loans $ 212.0 $ 0.4 $ (0.9) $ 211.5 Middle market loans 66.9 — (1.5) 65.4 Asset-backed securities 26.8 — (0.2) 26.6 Equity securities 3.5 0.1 — 3.6 Total privately-held investments — Trading 309.2 0.5 (2.6) 307.1 Total Investments — Trading $ 1,472.0 $ 6.7 $ (8.7) $ 1,470.0 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 |
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, 2021 and December 31, 2020: As at December 31, 2021 As at December 31, 2020 Net Carrying Value Percentage of Total Net Carrying Value Percentage of Total ($ millions) (%) ($ millions) (%) Property type Apartment 101.6 48.1 80.7 49.3 Hotels 68.8 32.5 20.4 12.5 Office building 33.9 16.0 33.9 20.7 Other commercial 7.2 3.4 28.6 17.5 Total commercial mortgage loans $ 211.5 100 % 163.6 100 % Geographic Region U.S. 183.7 86.9 122.7 75.0 International 27.8 13.1 40.9 25.0 Total commercial mortgage loans $ 211.5 100 % 163.6 100 % As at December 31, 2021 As at December 31, 2020 Net Carrying Value Percentage of Total Net Carrying Value Percentage of Total ($ millions) (%) ($ millions) (%) Industry type Materials 20.9 32.0 28.0 24.9 Financials 6.1 9.3 27.1 24.2 Industrials 18.7 28.5 17.3 15.5 Consumer discretionary 4.3 6.6 13.7 12.2 Health care — — 7.5 6.7 Energy 5.6 8.6 7.3 6.5 Consumer staples 4.9 7.5 6.4 5.7 Information technology 4.9 7.5 4.8 4.3 Total middle market mortgage loans $ 65.4 100 % $ 112.1 100 % Geographic Region U.S. 56.2 85.9 91.8 81.9 International 9.2 14.1 20.3 18.1 Total middle market loans $ 65.4 100 % $ 112.1 100 % |
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, 2021 and December 31, 2020: As at December 31, 2021 As at December 31, 2020 (in millions) Less than 50% $ — $ 14.9 50% to 60% 131.2 39.3 61% to 70% 80.3 99.5 71% to 80% — 9.9 Commercial mortgage loans $ 211.5 $ 163.6 As at December 31, 2021 As at December 31, 2020 (in millions) Less than 50% $ 11.0 $ 59.8 50% to 60% 9.2 11.0 61% to 70% 15.8 6.4 71% to 80% 5.6 — 81% to 100% 12.0 17.2 Greater than 100% 11.8 17.7 Middle market loans $ 65.4 $ 112.1 |
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, 2021 and December 31, 2020: As at December 31, 2021 As at December 31, 2020 (in millions) Greater than 1.20x $ 66.3 $ 82.2 1.00 - 1.20x 62.4 14.9 Less than 1.00x 18.8 — Commercial mortgage loans (1) $ 147.5 $ 97.1 _______________ (1) As at December 31, 2021, we have non-performing loans of $Nil (December 31, 2020 — $0.7 million) and construction loans of $64.0 million (December 31, 2020 — $65.8 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 $211.5 million as at December 31, 2021, (December 31, 2020 — $163.6 million). As at December 31, 2021 As at December 31, 2020 (in millions) Greater than 1.20x $ 25.8 $ 73.6 1.00 - 1.20x 22.8 — Less than 1.00x 16.8 38.5 Middle market loans $ 65.4 $ 112.1 |
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, 2021 and 2020: MVI Multi-Line Reinsurer Bene Digital Re Crop Re Total ($ in millions) Opening undistributed value of investment as at January 1, 2021 $ — $ 0.5 $ — $ 0.4 $ — $ 0.9 Investment in the period 0.4 2.5 — 0.3 — 3.2 Distribution received — — — (0.5) — (0.5) Unrealized gain for the twelve months to December 31, 2021 0.1 0.2 — — — 0.3 Closing value of investment as at December 31, 2021 0.5 3.2 — 0.2 — 3.9 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 investments at December 31, 2020 $ — $ 0.5 $ — $ 0.4 $ — $ 0.9 |
Summary of Fixed Maturities | The scheduled maturity distribution of the Company’s available for sale fixed income securities as at December 31, 2021 and December 31, 2020 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, 2021 Amortized Fair Market Average ($ in millions) Due one year or less $ 545.1 $ 549.0 AA- Due after one year through five years 2,057.2 2,087.5 AA- Due after five years through ten years 1,090.5 1,106.3 A+ Due after ten years 40.7 41.4 A- Total — Government and corporate 3,733.5 3,784.2 Non-agency commercial mortgage-backed 6.6 6.9 AA+ Agency mortgage-backed 1,082.9 1,090.0 AA+ Asset-backed 0.5 0.5 AAA Total fixed income securities — Available for sale $ 4,823.5 $ 4,881.6 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 |
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, 2021 and December 31, 2020: December 31, 2021 0-12 months Over 12 months Total Fair Gross Fair Gross Fair Gross Number of ($ in millions) U.S. government $ 309.1 $ (4.0) $ 29.3 $ (1.9) $ 338.4 $ (5.9) 51 U.S. agency 6.1 — — — 6.1 — 5 Municipal 29.7 (0.5) — — 29.7 (0.5) 20 Corporate 804.6 (11.7) 23.6 (1.3) 828.2 (13.0) 400 Non-U.S. government-backed corporate 114.4 (1.9) — — 114.4 (1.9) 10 Non-U.S. government 181.8 (1.2) 3.1 — 184.9 (1.2) 35 Agency mortgage-backed 564.5 (11.6) 16.0 (0.4) 580.5 (12.0) 116 Total fixed income securities — Available for sale 2,010.2 (30.9) 72.0 (3.6) 2,082.2 (34.5) 637 Total short-term investments — Available for sale 4.4 — — — 4.4 — 7 Total $ 2,014.6 $ (30.9) $ 72.0 $ (3.6) $ 2,086.6 $ (34.5) 644 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 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 and December 31, 2020: As at December 31, 2021 Level 1 Level 2 Level 3 Total ($ in millions) Available for sale financial assets, at fair value U.S. government $ 1,084.3 $ — $ — $ 1,084.3 U.S. agency — 21.5 — 21.5 Municipal — 82.6 — 82.6 Corporate — 2,208.3 — 2,208.3 Non-U.S. government-backed corporate — 136.8 — 136.8 Non-U.S. government 164.4 86.3 — 250.7 Asset-backed — 0.5 — 0.5 Non-agency commercial mortgage-backed — 6.9 — 6.9 Agency mortgage-backed — 1,090.0 — 1,090.0 Total fixed income securities available for sale, at fair value 1,248.7 3,632.9 — 4,881.6 Short-term investments available for sale, at fair value 6.5 3.6 — 10.1 Held for trading financial assets, at fair value U.S. government 116.3 — — 116.3 Municipal — 4.0 — 4.0 Corporate — 96.8 — 96.8 Non-U.S. government-backed corporate — 13.1 — 13.1 High yield loans — 76.9 — 76.9 Non-U.S. government 11.9 22.6 — 34.5 Asset-backed — 785.7 — 785.7 Agency mortgage-backed — 30.2 — 30.2 Total fixed income securities trading, at fair value 128.2 1,029.3 — 1,157.5 Short-term investments trading, at fair value 1.1 0.9 — 2.0 Privately-held investments trading, at fair value — — 307.1 307.1 Catastrophe bonds trading, at fair value — 3.4 — 3.4 Other investments (1) — — — 151.3 Other financial assets and liabilities, at fair value Derivatives at fair value — foreign exchange contracts — 12.9 — 12.9 Liabilities under derivative contracts — foreign exchange contracts — (13.3) — (13.3) Total 1,384.5 4,669.7 307.1 6,512.6 ______________ (1) Other investments represents our investments in real estate funds and are 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 funds are subject to restrictions as detailed in Note 20(a), “Commitments and Contingencies.” 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 — — 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 investments in real estate funds and are 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 funds are 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, 2021 and December 31, 2020: Twelve Months Ended December 31, 2021 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 $ 163.6 $ 169.9 $ — $ (122.5) $ 0.5 $ 211.5 $ (0.5) Middle market loans 112.1 5.6 — (56.1) 3.7 65.3 (1.5) Asset-backed securities 18.6 10.0 — (1.8) (0.1) 26.7 (0.2) Equity securities 5.0 0.1 — (1.6) 0.1 3.6 — Preference shares — 19.5 (19.5) — — — — Total Level 3 assets $ 299.3 $ 205.1 $ (19.5) $ (182.2) $ 4.2 $ 307.1 $ (2.2) Twelve Months Ended December 31, 2020 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) |
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, 2021: At December 31, 2021 Fair Value Valuation Techniques Unobservable (U) inputs Ranges Weighted Average ($ in millions) Privately-held investments — Trading Commercial mortgage loans $ 173.9 Discounted cash flow Discount rate 3.5% — 9.5% 5.8% Commercial mortgage loans 37.6 Transaction Value n/a n/a n/a n/a Commercial mortgage loans — Liquidation Method n/a n/a n/a n/a Middle market loans 65.3 Discounted cash flow Discount rate 6.2% — 15.5% 9.1% Middle market loans — Recovery Approach n/a n/a n/a n/a Asset-backed securities 26.7 Discounted cash flow Discount rate 3.0% — 7.3% 5.4% Equity securities 2.8 Discounted cash flow Discount rate 9.2% 9.2% 9.2% Equity securities 0.8 Transaction Value n/a n/a n/a n/a $ 307.1 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021, 2020 and 2019 was as follows: Twelve Months Ended December 31, 2021 2020 2019 ($ in millions) Premiums written (1) : Direct $ 2,341.4 $ 2,042.1 $ 1,956.9 Assumed 1,597.0 1,656.4 1,485.5 Ceded (1,350.7) (1,120.7) (1,014.5) Net premiums written $ 2,587.7 $ 2,577.8 $ 2,427.9 Premiums earned (1) : Direct $ 2,139.1 $ 2,026.4 $ 1,927.5 Assumed 1,479.2 1,612.0 1,494.9 Ceded (1,207.8) (1,110.9) (1,129.1) Net premiums earned $ 2,410.5 $ 2,527.5 $ 2,293.3 Insurance losses and loss adjustment expenses: Direct $ 1,499.8 $ 1,479.6 $ 1,415.5 Assumed 1,000.6 1,134.5 1,147.9 Ceded (807.1) (773.3) (883.7) Net insurance losses and loss adjustment expenses $ 1,693.3 $ 1,840.8 $ 1,679.7 |
Derivative Contracts (Tables)
Derivative Contracts (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 and 2020: As at December 31, 2021 As at December 31, 2020 Derivatives Not Designated as Hedging Instruments Balance Sheet Location Notional Fair Notional Fair ($ in millions) ($ in millions) Foreign Exchange Contracts Derivatives at Fair Value $ 759.8 $ 12.9 (1) $ 803.1 $ 21.5 (1) Foreign Exchange Contracts Liabilities under Derivative Contracts $ 785.9 $ (12.4) $ 599.2 $ (13.6) ______________ (1) Net of $2.1 million of cash collateral (December 31, 2020 — $3.4 million). As at December 31, 2021 As at December 31, 2020 Derivatives Designated as Hedging Instruments Under ASC 815 Balance Sheet Location Notional Fair Notional Fair ($ in millions) ($ in millions) Foreign Exchange Contracts Derivatives at Fair Value $ — $ — $ 90.6 $ 5.3 Foreign Exchange Contracts Liabilities under Derivative Contracts $ 143.1 $ (0.9) $ — $ — |
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, 2021 and 2020: Amount of (Loss)/Gain Recognized on Derivatives For the Twelve Months Ended Location of Gain/(Loss) December 31, 2021 December 31, 2020 Derivatives not designated as hedges ($ in millions) Foreign Exchange Contracts Change in Fair Value of Derivatives (35.9) 16.0 Interest Rate Swaps Change in Fair Value of Derivatives — (81.1) Derivatives designated as hedges Foreign Exchange Contracts General, administrative and corporate expenses (5.7) (3.2) Foreign Exchange Contracts Net change from current period hedged transactions (6.2) 0.3 |
Deferred Policy Acquisition C_2
Deferred Policy Acquisition Costs (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 and 2020: Twelve Months Ended December 31, 2021 Twelve Months Ended December 31, 2020 ($ in millions) Balance at the beginning of the period $ 306.6 $ 291.1 Acquisition costs deferred 398.3 481.2 Amortization of deferred policy acquisition costs (414.1) (465.7) Balance at the end of the period $ 290.8 $ 306.6 |
Reserves for Losses and Adjus_2
Reserves for Losses and Adjustment Expenses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021, 2020 and 2019: As at December 31, 2021 2020 2019 ($ in millions) Provision for losses and LAE at the start of the year $ 7,165.3 $ 6,951.8 $ 7,074.2 Less reinsurance recoverable (3,195.2) (2,319.8) (2,077.6) Net loss and LAE at the start of the year 3,970.1 4,632.0 4,996.6 Net loss and LAE expenses (disposed) (1) — (818.5) — Movement in net provision for losses and LAE for claims incurred: Current year 1,648.2 1,841.7 1,620.2 Prior years 45.1 (0.9) 59.5 Total incurred 1,693.3 1,840.8 1,679.7 Losses and LAE payments for claims incurred: Current year (729.1) (404.9) (428.5) Prior years (580.7) (1,359.7) (1,694.1) Total paid (1,309.8) (1,764.6) (2,122.6) Foreign exchange (gains)/losses (39.9) 80.4 78.3 Net losses and LAE reserves at the end of the year 4,313.7 3,970.1 4,632.0 Plus reinsurance recoverable on unpaid losses at the end of the year 3,298.1 3,195.2 2,319.8 Provision for losses and LAE at the end of the year $ 7,611.8 $ 7,165.3 $ 6,951.8 |
Reconciliation of Reinsurance Recoverables on Unpaid Losses | The following table provides a reconciliation of reinsurance recoverables on unpaid losses as at December 31, 2021, 2020 and 2019, including reserves associated with the adverse development cover reinsurance agreements. As at December 31, 2021 2020 2019 (in millions) Reinsurance recoverable excluding adverse development cover $ 2,518.3 $ 2,425.2 $ 2,319.8 Adverse development cover reinsurance agreement cover 770.0 770.0 — Movement in reinsurance recoverables excess of attachment point 68.1 — — Less unamortized deferred gain on retroactive contracts (58.3) — — Reinsurance recoverable on unpaid losses $ 3,298.1 $ 3,195.2 $ 2,319.8 |
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, 2021, 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, 2021. The Company has chosen to disaggregate the business in its Insurance segment, for the purposes of these loss development triangles as: Property, Casualty, Marine, Aviation and Energy, and Financial and Professional insurance lines. The Company considers that this presentation of its Insurance lines loss development triangles more precisely reflects meaningful trending information. Certain accident years have negative IBNR due to the allocation of the adverse development cover, which has been allocated in line with with the agreement and premiums paid. Property Insurance Lines Incurred Claims, IBNR and Loss Adjustment Expenses, Net of Reinsurance As at December 31, 2021 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 2021 $ (in millions) 2012 170.6 168.6 167.3 166.2 160.6 154.8 153.7 153.8 154.4 155.6 — 6,083 2013 130.8 117.9 117.5 113.3 114.3 112.3 112.6 112.8 110.7 0.3 5,764 2014 166.1 157.9 134.7 135.3 134.6 133.0 132.4 133.4 — 9,973 2015 241.8 207.4 201.8 204.2 204.6 201.5 202.2 2.0 11,598 2016 239.9 250.7 245.5 246.9 248.4 249.2 1.6 10,785 2017 297.5 260.3 253.5 254.9 254.1 10.3 9,693 2018 205.5 208.2 191.9 190.4 0.4 8,171 2019 128.5 132.1 122.6 — 6,812 2020 206.7 211.2 36.2 7,295 2021 $ 210.9 88.8 4978 Total $ 1,840.3 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 2021 ($ in millions) 2012 41.5 129.6 139.2 153.4 157.6 155.1 154.3 154.3 154.3 155.6 2013 39.2 76.4 89.7 101.7 106.4 109.1 110.9 111.2 110.0 2014 40.5 86.9 114.5 124.2 128.3 129.8 131.0 132.3 2015 57.5 144.1 172.1 181.3 198.0 196.4 197.8 2016 67.3 169.7 202.5 224.8 233.8 239.0 2017 97.0 189.9 223.2 244.1 248.4 2018 62.6 162.9 185.0 181.8 2019 49.6 92.6 103.4 2020 61.9 125.5 2021 59.2 Total $ 1,553.0 All outstanding liabilities for 2012 and subsequent years, net of reinsurance $ 287.3 All outstanding liabilities before 2012, net of reinsurance 2.0 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 289.3 Casualty Insurance Lines As at December 31, 2021 Incurred Claims, IBNR and Loss Adjustment Expenses, Net of Reinsurance 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 2021 $ (in millions) 2012 78.6 63.4 70.6 61.7 69.6 67.2 69.2 71.1 71.5 69.3 3.4 3,130 2013 134.0 117.4 115.8 121.3 104.3 105.4 105.7 104.3 100.9 7.2 3,367 2014 146.2 128.4 140.3 130.5 137.7 141.8 138.8 130.4 5.7 3,865 2015 205.1 225.1 187.6 205.5 238.4 236.7 227.7 13.5 4,736 2016 218.9 190.0 185.3 192.0 203.1 233.8 54.1 4,753 2017 182.9 176.3 180.4 199.3 201.6 18.9 5,416 2018 124.0 126.8 137.9 135.5 22.7 5,419 2019 126.5 148.8 127.9 4.7 5,104 2020 134.9 133.9 94.3 3,570 2021 176.5 150.5 2,707 Total 1,537.5 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 2021 ($ in millions) 2012 1.3 6.7 14.3 30.0 41.3 49.7 50.6 55.2 59.9 65.0 2013 2.3 26.0 39.8 53.4 69.0 81.5 85.8 87.8 88.0 2014 2.7 13.5 33.1 60.4 74.0 98.4 111.4 110.1 2015 3.2 17.2 57.0 93.5 139.7 169.2 181.4 2016 4.2 23.1 40.7 83.5 111.0 134.8 2017 3.6 23.2 53.4 98.4 116.8 2018 3.2 28.2 44.1 69.7 2019 6.4 18.6 70.4 2020 — 3.2 2021 9.5 Total $ 848.9 All outstanding liabilities for 2012 and subsequent years, net of reinsurance $ 688.6 All outstanding liabilities before 2012, net of reinsurance 37.0 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 725.6 Marine, Aviation and Energy Insurance Lines Incurred Claims, IBNR and Loss Adjustment Expenses, Net of Reinsurance As at December 31, 2021 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 2021 $ (in millions) 2012 268.8 306.2 325.8 346.4 332.1 328.2 316.5 311.2 306.1 308.8 (6.1) 3,823 2013 321.0 333.8 342.5 325.9 333.0 346.6 345.2 340.2 343.3 2.8 4,178 2014 309.8 314.0 298.9 310.5 306.0 313.0 302.2 312.5 (5.9) 4,043 2015 297.1 300.2 282.6 286.8 310.4 313.0 321.4 (4.6) 4,074 2016 260.8 230.8 229.4 229.6 219.4 221.7 0.2 4,429 2017 210.7 201.1 207.4 214.9 209.8 37.9 6,041 2018 171.4 208.5 209.4 219.9 (2.4) 5,178 2019 146.5 154.1 146.0 3.0 3,575 2020 111.0 111.8 12.0 4,128 2021 94.0 44.7 2,108 Total 2,289.2 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 2021 ($ in millions) 2012 51.5 132.4 174.9 211.2 240.0 250.9 273.8 274.7 276.9 284.8 2013 41.5 131.7 205.0 235.4 264.8 284.5 300.6 310.8 311.0 2014 53.6 116.9 189.3 210.0 232.7 250.9 263.1 275.6 2015 44.9 123.4 174.6 194.5 222.5 257.9 280.6 2016 30.9 82.7 142.8 164.3 191.2 199.0 2017 40.3 97.8 140.6 168.8 156.9 2018 26.9 105.1 133.4 155.7 2019 33.6 72.8 118.1 2020 28.5 66.7 2021 23.5 Total $ 1,871.9 All outstanding liabilities for 2012 and subsequent years, net of reinsurance $ 417.3 All outstanding liabilities before 2012, net of reinsurance 10.6 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 427.9 Financial and Professional Insurance Lines Incurred Claims, IBNR and Loss Adjustment Expenses, Net of Reinsurance As at December 31, 2021 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 2021 $ (in millions) 2012 88.5 89.9 93.6 97.0 94.0 89.6 101.7 96.5 103.4 104.5 (4.4) 579 2013 106.1 100.6 105.0 101.7 100.8 91.9 90.9 97.6 102.8 2.2 586 2014 135.7 131.6 130.2 120.6 131.9 120.9 121.7 123.7 (2.7) 800 2015 175.0 176.3 186.4 190.6 191.9 186.7 185.9 (0.4) 1,080 2016 191.9 212.6 217.4 203.1 186.3 185.7 13.5 1,255 2017 207.7 184.1 188.9 189.4 188.6 12.8 1,739 2018 158.5 174.6 156.9 152.7 6.0 4,617 2019 250.5 263.8 236.0 52.8 23,894 2020 351.0 352.0 181.7 105,317 2021 289.6 221.5 31,311 Total $ 1,921.5 Financial and Professional Insurance Lines Cumulative Paid Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Unaudited Prior Years Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 ($ in millions) 2012 22.8 39.6 50.8 59.4 65.4 70.6 80.3 85.3 91.3 92.8 2013 8.1 21.2 31.3 65.6 64.1 72.8 75.0 78.3 81.8 2014 3.0 30.9 53.8 72.5 80.0 85.9 92.6 104.2 2015 13.8 43.6 70.3 89.7 110.4 139.6 146.2 2016 15.2 71.4 102.5 130.6 126.6 136.0 2017 27.2 51.4 83.6 117.5 137.2 2018 21.0 75.7 101.6 117.1 2019 27.4 87.3 138.4 2020 48.0 121.9 2021 43.7 Total $ 1,119.3 All outstanding liabilities for 2012 and subsequent years, net of reinsurance $ 802.2 All outstanding liabilities before 2012, net of reinsurance 6.5 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 808.7 Property Catastrophe and Other Property Reinsurance Incurred Claims, IBNR and Loss Adjustment Expenses, Net of Reinsurance As at December 31, 2021 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 2021 $ (in millions) 2012 280.2 303.1 286.2 278.8 282.2 279.2 271.7 261.6 264.9 248.6 (3.1) 679 2013 217.4 199.9 189.7 178.5 177.1 173.8 171.0 168.2 164.7 0.6 832 2014 189.9 176.8 160.9 149.5 149.8 144.9 144.9 143.9 0.8 900 2015 214.6 187.3 177.2 156.6 171.8 171.9 179.8 11.7 1,051 2016 272.6 272.7 271.0 249.2 244.9 230.4 (15.2) 1,308 2017 557.7 534.5 516.2 505.0 481.2 (3.8) 1,956 2018 343.1 394.2 389.5 403.5 22.2 1,808 2019 262.8 272.3 270.6 3.6 1,395 2020 322.9 366.9 20.1 1,333 2021 461.5 198.6 1,005 Total $ 2,951.1 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 2021 ($ in millions) 2012 35.6 135.7 188.8 208.9 216.4 227.6 232.1 242.2 247.9 248.6 2013 34.5 98.8 146.9 159.0 163.7 165.2 166.8 161.2 161.2 2014 37.4 100.7 127.1 137.0 140.9 139.6 141.3 141.5 2015 35.8 95.0 127.1 139.2 156.2 158.6 162.2 2016 57.2 164.7 206.0 217.1 230.4 236.7 2017 123.2 357.4 416.6 440.8 437.6 2018 122.8 311.6 325.7 345.4 2019 28.2 153.0 205.6 2020 42.4 169.2 2021 75.6 Total $ 2,183.6 All outstanding liabilities for 2012 and subsequent years, net of reinsurance 767.5 All outstanding liabilities before 2012, net of reinsurance 17.4 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 784.9 Casualty Reinsurance Incurred Claims, IBNR and Loss Adjustment Expenses, Net of Reinsurance As at December 31, 2021 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 2021 $ (in millions) 2012 235.1 233.3 244.6 236.0 232.8 233.7 242.6 245.1 240.0 196.2 (27.1) 1,813 2013 215.6 230.8 226.3 223.6 206.6 201.7 204.4 201.6 165.8 (6.8) 1,691 2014 206.2 209.0 217.6 211.1 204.5 207.1 202.9 160.5 (14.8) 1,805 2015 195.4 202.2 211.7 214.2 212.0 208.0 160.6 (13.6) 1,964 2016 234.7 247.3 247.0 257.2 264.7 213.5 (2.1) 2,056 2017 246.6 244.0 254.9 254.1 194.2 3.4 2,005 2018 230.1 259.8 267.0 190.6 24.7 1,766 2019 236.2 256.6 179.2 52.3 1,300 2020 256.4 237.6 177.8 753 2021 209.0 177.0 355 Total $ 1,907.2 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 2021 ($ in millions) 2012 2.2 17.8 42.1 65.5 96.6 117.8 134.7 144.4 162.2 165.4 2013 3.4 15.9 42.8 65.1 93.1 115.0 127.8 139.9 146.3 2014 2.5 13.8 37.8 60.3 86.7 107.7 125.7 135.7 2015 3.5 18.0 38.5 65.7 89.7 109.0 123.3 2016 9.3 33.7 64.5 96.7 127.0 148.0 2017 8.9 30.7 59.2 97.9 117.3 2018 7.2 33.7 73.7 104.9 2019 9.2 36.5 61.4 2020 9.2 28.0 2021 7.9 Total $ 1,038.2 All outstanding liabilities for 2012 and subsequent years, net of reinsurance 869.0 All outstanding liabilities before 2012, net of reinsurance 106.3 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 975.3 Specialty Reinsurance Incurred Claims, IBNR and Loss Adjustment Expenses, Net of Reinsurance As at December 31, 2021 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 2021 $ (in millions) 2012 176.2 199.5 188.8 173.3 171.7 172.4 169.1 166.6 165.6 156.3 (3.9) 641 2013 144.4 139.6 131.3 119.4 118.6 114.8 114.4 111.0 104.8 (0.5) 577 2014 152.4 140.1 132.1 122.9 125.8 124.3 120.1 114.9 0.6 619 2015 165.9 170.0 164.5 159.0 157.3 152.8 149.0 4.7 777 2016 238.8 239.9 237.7 230.0 225.0 214.7 (5.4) 937 2017 379.7 392.4 376.0 364.4 343.2 (6.1) 1,328 2018 397.4 396.4 394.3 391.1 13.0 1,399 2019 476.1 498.9 495.4 49.2 1,519 2020 415.6 382.4 66.7 1,400 2021 155.8 106.1 1,020 Total $ 2,507.6 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 2021 ($ in millions) 2012 24.6 93.0 128.1 138.2 143.5 148.8 150.1 152.9 153.4 156.1 2013 25.0 70.9 86.9 94.0 101.0 101.0 101.9 101.7 100.7 2014 16.6 56.5 81.3 89.3 99.7 102.6 104.2 106.2 2015 17.7 56.4 104.1 122.0 130.9 134.0 134.0 2016 58.7 150.9 165.5 183.6 193.8 203.8 2017 94.6 238.8 271.0 306.3 317.1 2018 27.2 280.8 314.6 331.1 2019 274.3 382.7 402.1 2020 213.1 270.4 2021 28.4 Total $ 2,049.9 All outstanding liabilities for 2012 and subsequent years, net of reinsurance 457.7 All outstanding liabilities before 2012, net of reinsurance 14.6 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 472.3 |
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, 2021 Twelve Months Ended December 31, 2020 ($ in millions) Net outstanding liabilities: Insurance lines - Property insurance lines 289.3 226.8 - Casualty insurance lines 725.6 618.7 - Marine, aviation and energy insurance lines 427.9 431.4 - Financial and professional insurance lines 808.7 738.5 Total insurance lines 2,251.5 2,015.4 Reinsurance lines - Property catastrophe and other property reinsurance 784.9 631.0 - Casualty reinsurance 975.3 1,084.2 - Specialty reinsurance 472.3 535.4 Total reinsurance lines 2,232.5 2,250.6 Net loss and LAE 4,484.0 4,266.0 Reinsurance recoverable on unpaid losses: Insurance lines 2,117.4 2,140.3 Reinsurance lines 1,180.7 1,054.9 Total reinsurance recoverable on unpaid losses 3,298.1 3,195.2 Deferred gain on retroactive contracts 58.3 — Unallocated claims incurred 56.6 50.3 Other reinsurance balances recoverable (1) (286.4) (346.7) Carbon syndicate reserves 1.0 — Other 0.2 0.5 (170.3) (295.9) Provision for losses and LAE at the end of the year 7,611.8 7,165.3 ____________________ |
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 10 Insurance 16.1 % 25.7 % 17.2 % 11.9 % 7.4 % 6.7 % 4.5 % 2.5 % 1.3 % 2.5 % Reinsurance 18.1 % 30.9 % 15.3 % 9.7 % 8.3 % 5.6 % 4.0 % 2.7 % 2.6 % 1.1 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Summary of Total Income Tax | Total income tax (benefit)/expense for the twelve months ended December 31, 2021, 2020 and 2019 was allocated as follows: Twelve Months Ended December 31, 2021 2020 2019 ($ in millions) Income tax expense/(benefit) allocated to net income $ 5.3 $ 18.4 $ 22.9 Income tax expense allocated to other comprehensive income 0.3 0.5 11.2 Total income tax expense/(benefit) $ 5.6 $ 18.9 $ 34.1 |
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, 2021, 2020 and 2019 is provided in the tables below: Twelve Months Ended December 31, 2021 (Loss)/income Current tax Deferred tax Total income tax ($ in millions) Bermuda $ 22.9 $ — $ — $ — U.S. (1) 5.0 5.8 — 5.8 U.K. 75.1 — (0.3) (0.3) Other (2) (67.9) 2.7 (2.9) (0.2) Total $ 35.1 $ 8.5 $ (3.2) $ 5.3 Twelve Months Ended December 31, 2020 (Loss) Current tax Deferred tax Total income tax ($ in millions) Bermuda $ (81.5) $ — $ — $ — U.S. (3) 19.7 8.9 — 8.9 U.K. 11.0 0.1 — 0.1 Other (4) 12.8 10.3 (0.9) 9.4 Total $ (38.0) $ 19.3 $ (0.9) $ 18.4 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. (43.5) (6.7) 17.3 10.6 Other (5.5) 4.0 0.9 4.9 Total $ (216.6) $ (1.7) $ 24.7 $ 22.9 ________________ (1) The U.S. current tax expense of $5.8 million is mainly Base Erosion and Anti-abuse Tax. (2) Current tax expense and deferred tax (benefit) in “Other” is made up of taxation paid in respect of branches of U.K. and Bermudian operating subsidiaries and withholding taxes payable in Australia. (3) The 2020 U.S. deferred tax expense has been corrected from $5.7 million credit to $0.0 million. This removes an invalid intraperiod tax allocation between the statement of operations and unrealized gains on investments in other comprehensive income. (4) The 2020 other territories’ tax expense in “other” has been corrected from $5.3 million to $9.4 million to correct the income tax calculation in the Swiss and Australian branches of the U.K. operating companies. |
Income Tax Reconciliation | The reconciliation between the income tax (benefit)/expense and the amount that would result from applying the statutory rate for the Company for the twelve months ended December 31, 2021, 2020 and 2019 is provided in the table below: Twelve Months Ended December 31, 2021 2020 2019 Income Tax Reconciliation ($ in millions) Income tax benefit at statutory tax rate of zero percent $ — $ — $ — Overseas statutory tax rates differential (0.9) (3.8) (21.2) Base erosion and anti-abuse tax (BEAT) expense 6.1 4.3 0.3 Prior year adjustments (1) 0.5 (25.0) (1.7) Change in valuation allowance (2) 9.6 40.8 42.6 Impact of unrecognized tax benefits (3) — — — Restricted foreign tax credits (4) — — 1.5 Australian non-resident withholding tax 0.6 1.0 1.0 Share-based payments — — (0.6) Foreign exchange (1.5) 0.2 — Non-deductible expenses 2.4 4.7 — Non-taxable items — — (0.1) Impact of changes in statutory tax rates (5) (11.5) (3.8) 1.1 Total income tax expense/(benefit) $ 5.3 $ 18.4 $ 22.9 ________________ (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 income 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, 2021 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, 2020 and 2019 predominantly relate to the determination of results in the U.K. These items can only be ultimately determined after this report is filed. (2) The 2021 valuation allowance movement includes $5.5 million increase relating to U.K deferred tax assets in U.K. operating subsidiaries, $9.1 million increase relating to deferred tax assets in the branches of the U.K. and Bermuda operating subsidiaries, and $5.0 million decrease from U.S. operations, which includes $15.5 million decrease due to utilization of existing net operating losses. The U.K. tax rate change effect on the valuation allowance is $11.3 million. (3) In 2021, the company did not have any unrecognized tax benefits. Income tax returns that have been filed by the Company’s U.S. operating subsidiaries are subject to examination for 2016 and later tax years. The Company’s U.K. operating subsidiaries’ income tax returns are subject to examination for 2020 and later tax years. (4) Restricted foreign tax credits are taxes paid by branches of U.K. operating subsidiaries that are not creditable against U.K. taxes. (5) The U.K. tax rate will change from April 1, 2023 from 19% to 25%, which resulted in an increase in the deferred tax assets and an offsetting increase in the valuation allowance. |
Tax Effects of Deferred Tax Assets and Deferred Tax Liabilities | The tax effects of temporary differences and carryforwards that give rise to deferred tax assets and deferred tax liabilities are presented in the following table as at December 31, 2021 and 2020: As at December 31, 2021 2020 ($ in millions) Deferred tax assets: Operating loss carryforwards 170.2 147.8 Insurance reserves: Losses and loss adjustment expenses 16.7 12.2 Accrued expenses 4.6 6.4 Foreign tax credit carryforwards 20.2 16.7 Insurance reserves: Unearned premiums 28.3 24.5 Office properties and equipment 15.1 12.7 Operating lease liabilities 19.2 17.9 Other temporary differences 3.2 2.5 Total deferred tax assets 277.5 240.7 Less valuation allowance (225.9) (187.1) Deferred tax assets, net of valuation allowance $ 51.6 $ 53.6 Deferred tax liabilities: Investments (2.5) (8.4) Intangible assets (2.8) (2.7) Deferred policy acquisition costs (28.6) (33.3) Right-of-use operating lease assets (10.6) (12.5) Insurance reserves: Losses and loss adjustment expenses (8.3) — Other temporary differences (1.6) (1.9) Total deferred tax (liabilities) (54.4) (58.8) Net deferred tax (liabilities) $ (2.8) $ (5.2) |
Capital Structure (Tables)
Capital Structure (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 and 2020: As at December 31, 2021 At December 31, 2020 Number $ in Number $ in Authorized share capital: Ordinary Shares $0.01 per share ( 2020 — $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 ( 2020 — $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 $25 per share (1) 10,000 — 10,000 — Total issued share capital 636 636 ______________ (1) Each depositary share represents a 1/1000 th interest in a share of the 5.625% preference shares. |
Statutory Requirements and Di_2
Statutory Requirements and Dividends Restrictions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Statutory Requirements And Dividends Restrictions Summary Of Statutory Requirements And Dividends Restrictions [Abstract] | |
Summary of Statutory Requirements and Dividends Restrictions | Actual and required statutory capital and surplus for the principal operating subsidiaries of the Company, excluding its Lloyd’s syndicate, as at December 31, 2021 and December 31, 2020 were estimated as follows: As at December 31, 2021 U.S. Bermuda U.K. ($ in millions) Required statutory capital and surplus $ 561.2 $ 683.7 $ 800.7 Actual statutory capital and surplus $ 889.7 $ 1,141.0 $ 963.6 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 |
Dividends (Tables)
Dividends (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Summary of Declared Dividends | Dividends. On March 4, 2022, 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, 2022 March 15, 2022 5.625%Preference Shares (AHL PRD) $ 0.3516 April 1, 2022 March 15, 2022 5.625%Preference Shares, represented by depositary shares (AHL PRE) (1) $ 351.56 April 1, 2022 March 15, 2022 ______________ (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, 2021 | |
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, 2021 and 2020: Twelve Months Ended December 31, 2021 Beginning of the Year Additions/(Disposals) Amortization Impairment End of the Year ($ in millions) Intangible Assets Trademarks $ 1.6 $ — $ (0.3) $ — $ 1.3 Agency Relationships 0.6 — (0.6) — — Non-compete Agreements — — — — — Insurance Licenses 16.7 — — — 16.7 Goodwill 3.9 — — — 3.9 Total $ 22.8 $ — $ (0.9) $ — $ 21.9 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 Renewal Rights — — — — — 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 |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Lease, Cost | Operating lease charge. The following table summarizes the operating lease charge for the twelve months ended December 31, 2021 and 2020: For the Twelve Months Ended December 31, 2021 December 31, 2020 ($ in millions) Amortization charge on right-of-use operating leased assets $ 12.0 $ 11.8 Interest on operating lease liabilities 5.5 5.5 Operating lease charge $ 17.5 $ 17.3 |
Lessee, Operating Lease, Liability | Lease Liabilities. The following table summarizes the maturity of lease liabilities under non-cancellable leases as of December 31, 2021 and 2020: December 31, 2021 December 31, 2020 ($ in millions) Operating leases — maturities 2021 $ — $ 17.2 2022 17.0 14.2 2023 17.0 13.5 2024 16.5 12.6 2025 16.1 12.2 2026 15.3 12.0 Later years 61.8 51.4 Total minimum lease payments $ 143.7 $ 133.1 Less imputed interest (28.5) (27.1) Total lease liabilities $ 115.2 $ 106.0 |
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, 2021 and 2020, and other supplemental information: For the Twelve Months Ended December 31, 2021 December 31, 2020 ($ in millions) Cash paid for amounts included in the measurement of lease liabilities - Operating cash outflow from operating leases $ (17.5) $ (17.3) Right-of-use assets obtained in exchange for lease obligations - Operating leases $ 23.9 $ 5.0 Reduction to Right-of-use assets resulting from reductions to lease obligations - Operating leases $ 2.3 $ 13.0 Weighted Averages - Operating leases, remaining lease terms (years) 8.8 9.1 - Operating leases, average discount rate 5.0 % 5.0 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 and 2020: As at December 31, 2021 At December 31, 2020 ($ in millions, except percentages) Regulatory trusts and deposits: Affiliated transactions $ 891.3 $ 1,027.9 Third party 3,099.7 2,762.2 Letters of credit / guarantees (1) 539.8 516.8 Total restricted assets (excluding illiquid assets) 4,530.8 4,306.9 Other investments — real estate funds (illiquid assets) 151.3 109.4 Total restricted assets and illiquid assets $ 4,682.1 $ 4,416.3 Total as percent of cash and invested assets (2) 59.7 % 58.6 % (1) As at December 31, 2021, the Company had pledged funds of $539.8 million (December 31, 2020 — $516.8 million) as collateral for the secured letters of credit. (2) Investable assets comprise total investments, cash and cash equivalents, accrued interest, receivables for securities sold and payables for securities purchased. |
Concentration of Credit Risk (T
Concentration of Credit Risk (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Risks and Uncertainties [Abstract] | |
Schedule Of Gross Written Premium From Major Brokers | The following table shows the largest brokers that the Company transacted business within the three years ended December 31, 2021 and the proportion of gross written premiums from each of those brokers. Twelve Months Ended December 31, 2021 2020 2019 (in percentages) Aon Corporation 17.3 % 15.8 % 13.4 % Marsh & McLennan Companies, Inc. 17.5 15.4 13.6 Willis Group Holdings, Ltd. 9.6 10.4 10.3 Other brokers/non-broker sources (1) 55.6 58.4 62.7 Total 100.0 % 100.0 % 100.0 % Gross written premiums ($ millions) $ 3,938.4 $ 3,698.5 $ 3,442.4 ______________ |
Reclassifications from Accumu_2
Reclassifications from Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 and 2020: Amount Reclassified from AOCI Details about the AOCI Components Twelve Months Ended December 31, 2021 Twelve Months Ended December 31, 2020 Affected Line Item in the ($ in millions) Available for sale securities: Realized (gains) on sale of securities $ (24.8) $ (69.3) Realized and unrealized investment gains Realized losses on sale of securities 4.4 2.2 Realized and unrealized investment losses (20.4) (67.1) Income/(loss) from operations before income tax Tax on net realized gains of securities — — Income tax (expense)/benefit $ (20.4) $ (67.1) Net income/(loss) Realized derivatives: Net realized gains on settled derivatives (6.2) 0.3 General, administrative and corporate expenses Tax on settled derivatives — — Income tax (expense)/benefit $ (6.2) $ 0.3 Net income/(loss) Total reclassifications from AOCI to the statement of operations, net of income tax $ (26.6) $ (66.8) Net income/(loss) |
Credit Facility and Long-term_2
Credit Facility and Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021. 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, 2021 | |
Credit Loss [Abstract] | |
Reinsurance Recoverable, Allowance for Credit Loss | The following tables summarize the Company’s allowance for expected credit losses for the twelve months ended December 31, 2021 in investments, reinsurance recoverables and receivables following the adoption of ASU 2016-13 Financial Instruments - Credit Losses (Topic 326) ”: Twelve Months Ended December 31, 2021 ($ in millions) Investments Reinsurance Recoverables Receivables Total Opening value as at January 1, 2021 $ 0.2 $ 3.8 $ 34.0 $ 38.0 Movement of the allowance for credit losses during the year 2.5 (0.5) (3.8) (1.8) Closing value as at December 31, 2021 $ 2.7 $ 3.3 $ 30.2 $ 36.2 Twelve Months Ended December 31, 2020 ($ in millions) Investments Reinsurance Recoverables Receivables Total Opening value as at January 1, 2020 $ 0.6 $ 3.7 $ 23.0 $ 27.3 Movement of the allowance for credit losses during the year (0.4) 0.1 11.0 10.7 Closing value as at December 31, 2020 $ 0.2 $ 3.8 $ 34.0 $ 38.0 |
Accounting Changes and Error _2
Accounting Changes and Error Corrections (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Prior Period Adjustments | The tables below sets out the impact of these corrections to the twelve months ended December 31, 2020 and 2019 relating to these immaterial errors: For the Twelve Months Ended December 31, 2020 ($ in millions) As Previously Reported Corrections As Currently Reported CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME Gross written premium $ 3,703.6 $ (5.1) $ 3,698.5 Net realized and unrealized exchange gains/(losses) (12.4) (1.4) (13.8) Income tax expense (8.6) (9.8) (18.4) Net Loss $ (40.1) $ (16.3) $ (56.4) As at December 31, 2020 ($ in millions) As Previously Reported Corrections As Currently Reported CONSOLIDATED BALANCE SHEET Assets Underwriting premium receivables $ 1,279.8 $ (94.8) $ 1,185.0 Liabilities Reinsurance premiums payables $ 567.5 $ 5.3 $ 572.8 Income taxes payable $ 3.7 $ 5.1 $ 8.8 Deferred tax liability $ — $ 5.2 $ 5.2 Equity Opening retained earnings $ 1,514.6 $ (12.2) $ 1,502.4 Net (loss) for the year $ (40.1) $ (16.3) $ (56.4) Accumulated Other Comprehensive Income Cumulative foreign currency translation Opening balance $ (80.2) $ (85.3) $ (165.5) Changes for the period $ (9.6) $ (2.3) $ (11.9) Unrealized appreciation/(depreciation) on investments, net of taxes Changes for the period $ 102.3 $ 5.7 $ 108.5 As at December 31, 2020 ($ in millions) As Previously Reported Corrections As Currently Reported CONSOLIDATED STATEMENTS OF CASH FLOWS Cash flows from/(used in) operating activities: Net (loss) $ (40.1) $ (16.3) $ (56.4) Deferred tax (benefit) $ (5.7) $ 4.7 $ (1.0) Net realized and unrealized investment foreign exchange (gains) $ (23.1) $ (2.2) $ (25.3) Changes in: Premiums receivable $ 71.2 $ 8.7 $ 79.9 Income tax payable $ 2.5 $ 5.1 $ 7.6 Net cash from (used in) operating activities $ (672.7) $ — $ (672.7) As at December 31, 2019 ($ in millions) As Previously Reported Corrections As Currently Reported CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME Net realized and unrealized exchange gains/(losses) $ (11.8) $ 2.2 $ (9.6) Net (loss) $ (241.7) $ 2.2 $ (239.5) As at December 31, 2019 ($ in millions) As Previously Reported Corrections As Currently Reported CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY Equity Opening retained earnings $ 1,791.0 $ (14.4) $ 1,776.6 Net (loss) for the year $ (241.7) $ 2.2 $ (239.5) Accumulated Other Comprehensive Income Cumulative foreign currency translation Opening balance $ (55.4) $ (85.1) $ (140.5) Changes for the period $ (24.8) $ (0.2) $ (25.0) As at December 31, 2019 ($ in millions) As Previously Reported Corrections As Currently Reported CONSOLIDATED STATEMENTS OF CASH FLOWS Cash flows from/(used in) operating activities: Net (loss) $ (241.7) $ 2.2 $ (239.5) Net realized and unrealized investment foreign exchange (gains)/losses $ 28.1 $ (0.2) $ 27.9 Changes in: Premiums receivable $ 144.8 $ (2.0) $ 142.8 Net cash from (used in) operating activities $ (337.8) $ — $ (337.8) |
Basis of Preparation and Sign_3
Basis of Preparation and Significant Accounting Policies - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2021period | |
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 | 6 |
Computer Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Computer Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Furniture and Fixtures | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 4 years |
Leasehold Improvements | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 15 years |
Fixed maturities | |
Property, Plant and Equipment [Line Items] | |
Percentage of Value Decline in Securities to be considered Other than Temporary Impairment | 20.00% |
Segment Reporting - Additional
Segment Reporting - Additional Information - Narrative (Details) | 12 Months Ended |
Dec. 31, 2021segement | |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Segment Reporting Information [Line Items] | ||||||
Gross written premiums | $ 3,938.4 | $ 3,698.5 | $ 3,442.4 | |||
Net written premiums | 2,587.7 | 2,577.8 | 2,427.9 | |||
Gross earned premiums | 3,618.3 | 3,638.4 | 3,422.4 | |||
Net earned premiums | 2,410.5 | 2,527.5 | [1] | 2,293.3 | [1] | |
Losses and loss adjustment expenses | 1,693.3 | 1,840.8 | 1,679.7 | |||
Amortization of deferred policy acquisition costs | 414.1 | 465.7 | 412.7 | |||
General and administrative expenses | 333.1 | 308 | 341.5 | |||
Underwriting income (loss) | (30) | (87) | (140.6) | |||
Corporate Expenses | (64.3) | (70.2) | (54.5) | |||
Non-operating expenses | (20.6) | (32.7) | (125.6) | |||
Net investment income | 147.5 | 154.6 | 197.3 | |||
Net realized and unrealized investment gains | 56.2 | 98.5 | 97.1 | |||
Realized and unrealized investment losses | (47.4) | (27.4) | (10.9) | |||
Realized loss on debt extinguishment | 0 | 0 | (5.5) | |||
Change in fair value of loan notes issued by variable interest entities | 0 | 0 | (3.1) | |||
Change in fair value of derivatives | (35.9) | (65.1) | (144.2) | |||
Interest Expense, Debt | (14.3) | (33.9) | (20.2) | |||
Net realized and unrealized foreign exchange gains | 40 | (13.8) | [1] | (9.6) | [1] | |
Other income | 14.7 | 49.8 | 4.9 | |||
Other expenses | 10.8 | 10.8 | 1.7 | |||
Income (loss) from operations before income taxes | 35.1 | (38) | [1] | (216.6) | [1] | |
Income Tax Expense (Benefit) | (5.3) | (18.4) | [1] | (22.9) | [1] | |
Net income/(loss) | 29.8 | (56.4) | [1],[2] | (239.5) | [1],[2] | |
Losses and loss adjustment expenses | 7,611.8 | 7,165.3 | 6,951.8 | $ 7,074.2 | ||
Liability for Unpaid Claims and Claims Adjustment Expense, Net, Total | $ 4,313.7 | $ 3,970.1 | $ 4,632 | $ 4,996.6 | ||
Ratios | ||||||
Loss ratio | 70.20% | 72.80% | 73.20% | |||
Policy acquisition expense ratio | 17.20% | 18.40% | 18.00% | |||
General and administrative expense ratio | 13.80% | 12.20% | 14.90% | |||
Expense ratio | 31.00% | 30.60% | 32.90% | |||
Combined ratio | 101.20% | 103.40% | 106.10% | |||
Non-operating expenses related to severance, retention awards and other non-recurring costs | $ 19.3 | |||||
Non-operating expenses related to impairment charges on lease assets | 0.4 | $ 12.9 | $ 12.3 | |||
Non-operating expenses related to Merger Agreement | 103.4 | |||||
Non-operating expenses related to other non-recurring expenses | 0.9 | 1.6 | ||||
Non-operating expenses related to Effectiveness And Efficiency Program | 18.2 | 22.2 | ||||
Interest rate swap | Not Designated as Hedging Instrument | Gain (loss) on derivative instruments | ||||||
Ratios | ||||||
Gain (loss) to net income from derivative instruments | 0 | (81.1) | (130.2) | |||
Reinsurance | ||||||
Segment Reporting Information [Line Items] | ||||||
Net written premiums | 1,199 | 1,297.7 | 1,251.1 | |||
Net earned premiums | 1,118.8 | 1,287.7 | 1,255.2 | |||
Losses and loss adjustment expenses | 2,148.4 | 2,095.7 | 2,605.9 | |||
Liability for Unpaid Claims and Claims Adjustment Expense, Net, Total | $ 2,148.4 | $ 2,095.7 | $ 2,605.9 | |||
Ratios | ||||||
Loss ratio | 63.00% | 74.40% | 73.10% | |||
Policy acquisition expense ratio | 19.80% | 19.10% | 21.10% | |||
General and administrative expense ratio | 10.80% | 8.60% | 8.90% | |||
Expense ratio | 30.60% | 27.70% | 30.00% | |||
Combined ratio | 93.60% | 102.10% | 103.10% | |||
Insurance | ||||||
Segment Reporting Information [Line Items] | ||||||
Net written premiums | $ 1,388.7 | $ 1,280.1 | $ 1,176.8 | |||
Net earned premiums | 1,291.7 | 1,239.8 | 1,038.1 | |||
Losses and loss adjustment expenses | 2,165.3 | 1,874.4 | 2,026.1 | |||
Liability for Unpaid Claims and Claims Adjustment Expense, Net, Total | $ 2,165.3 | $ 1,874.4 | $ 2,026.1 | |||
Ratios | ||||||
Loss ratio | 76.50% | 71.10% | 73.40% | |||
Policy acquisition expense ratio | 14.90% | 17.70% | 14.20% | |||
General and administrative expense ratio | 16.40% | 15.90% | 22.10% | |||
Expense ratio | 31.30% | 33.60% | 36.30% | |||
Combined ratio | 107.80% | 104.70% | 109.70% | |||
Operating Segments | Reinsurance | ||||||
Segment Reporting Information [Line Items] | ||||||
Gross written premiums | $ 1,597 | $ 1,656.4 | $ 1,485.5 | |||
Net written premiums | 1,199 | 1,297.7 | 1,251.1 | |||
Gross earned premiums | 1,479.2 | 1,612 | 1,494.9 | |||
Net earned premiums | 1,118.8 | 1,287.7 | 1,255.2 | |||
Losses and loss adjustment expenses | 705.2 | 958.6 | 917.9 | |||
Amortization of deferred policy acquisition costs | 221.6 | 246 | 264.9 | |||
General and administrative expenses | 121.3 | 110.8 | 111.7 | |||
Underwriting income (loss) | 70.7 | (27.7) | (39.3) | |||
Operating Segments | Insurance | ||||||
Segment Reporting Information [Line Items] | ||||||
Gross written premiums | 2,341.4 | 2,042.1 | 1,956.9 | |||
Net written premiums | 1,388.7 | 1,280.1 | 1,176.8 | |||
Gross earned premiums | 2,139.1 | 2,026.4 | 1,927.5 | |||
Net earned premiums | 1,291.7 | 1,239.8 | 1,038.1 | |||
Losses and loss adjustment expenses | 988.1 | 882.2 | 761.8 | |||
Amortization of deferred policy acquisition costs | 192.5 | 219.7 | 147.8 | |||
General and administrative expenses | 211.8 | 197.2 | 229.8 | |||
Underwriting income (loss) | $ (100.7) | $ (59.3) | $ (101.3) | |||
[1] | Net earned premium has been corrected for immaterial errors in relation to gross written premium and reinsurance premium payables for periods 2020 and prior. Net realized and unrealized exchange gains/(losses) and change in foreign currency translation adjustment have been corrected to account for the correction of foreign exchange movements on underwriting premium receivables which should have been matched with an underwriting premium receivable payment for periods 2020 and prior. Income tax expense has been corrected for historic current and deferred income taxes on Aspen U.K’s branches due to the deficiency in the completeness and accuracy of branch data and associated application thereof in respect of local tax rules in various jurisdictions. Total revenues, net income/(loss) and other comprehensive income/(loss) before and after income taxes have been corrected as a result of the corrections mentioned above for periods 2020 and 2019. Refer to Note 26 in these consolidated financial statements, “Correction of Immaterial Errors” for further details. | |||||
[2] | The opening balances for retained earnings, cumulative foreign currency translation, and the net loss and change for the year on foreign cumulative translation adjustments have been corrected to account for the corrections mentioned on the pages of the consolidated balance sheet and the consolidated statement of operations and other comprehensive income. Refer to Note 26 in these consolidated financial statements, “Correction of Immaterial Errors” for further details. |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Gross written premiums | $ 3,938.4 | $ 3,698.5 | $ 3,442.4 |
Australia/Asia | |||
Segment Reporting Information [Line Items] | |||
Gross written premiums | 275.8 | 259.7 | 215.9 |
Caribbean | |||
Segment Reporting Information [Line Items] | |||
Gross written premiums | 12.9 | 6 | 9.3 |
Europe | |||
Segment Reporting Information [Line Items] | |||
Gross written premiums | 140.6 | 92.5 | 82.8 |
United Kingdom | |||
Segment Reporting Information [Line Items] | |||
Gross written premiums | 393.2 | 369 | 295.7 |
United States & Canada | |||
Segment Reporting Information [Line Items] | |||
Gross written premiums | 2,301.8 | 2,267.5 | 2,003.9 |
Worldwide excluding United States | |||
Segment Reporting Information [Line Items] | |||
Gross written premiums | 31.5 | 23.1 | 63 |
Worldwide including United States | |||
Segment Reporting Information [Line Items] | |||
Gross written premiums | 592.2 | 501.2 | 614.9 |
Others | |||
Segment Reporting Information [Line Items] | |||
Gross written premiums | $ 190.4 | $ 179.5 | $ 156.9 |
Investments - Summary of Invest
Investments - Summary of Investment Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | $ (159.2) | $ (167.3) | $ (209.1) |
Investment expenses | (11.7) | (12.7) | (11.8) |
Net investment income | 147.5 | 154.6 | 197.3 |
Fixed income securities | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | (87.2) | (106.5) | (128.2) |
Short-term investments | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | (0.1) | (0.8) | (2.3) |
Short-term investment, Trading | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 0 | (0.5) | (2.5) |
Fixed term deposits (included in cash and cash equivalents) | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | (0.7) | (6.4) | (19.5) |
Catastrophe bonds — Trading | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | (0.9) | (1.4) | (2.3) |
Privately-held investments — Trading | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | (18.2) | (20.9) | (3.4) |
Other investments, at fair value | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | (21.9) | (2) | (8.9) |
Fixed Income Securities | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | $ (30.2) | $ (32.8) | $ (42) |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Fixed income securities - gross realized gains | $ 22.7 | $ 68.8 | $ 14.4 |
Fixed income securities - gross realizes (losses) | (3.6) | (1.8) | (7.3) |
Net change in expected credit gains (losses) | (2.5) | 0.4 | 0 |
Fixed income securities, trading - gross realized gains | 12.2 | 18.2 | 34.3 |
Fixed income securities, trading, gross realizes (losses) | (2) | (3.8) | (2.6) |
Privately-held investments net unrealized gains/(losses) | (23.4) | 0 | 47.2 |
Catastrophe bonds | (0.8) | 0 | 0.9 |
Total net realized and unrealized investment gains recorded in the statement of operations | 8.8 | 71.1 | 86.2 |
Change in available for sale net unrealized (losses)/gains: | |||
Fixed income securities | (157.6) | 108.5 | 164.9 |
Income tax expense | (0.3) | (0.5) | (13.6) |
Total change in net unrealized (losses)/gains, net of taxes recorded in other comprehensive income | (157.9) | 108 | 151.3 |
Cash and cash equivalents | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Fixed income securities - gross realized gains | 2 | 0.5 | 0.1 |
Fixed income securities - gross realizes (losses) | (0.8) | (0.4) | (0.2) |
Fixed income securities, trading - gross realized gains | 0.1 | 0.2 | 0 |
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 | 0.6 | 0 | 0.2 |
Fixed income securities, trading, gross realizes (losses) | (13.8) | 0 | (0.2) |
Privately-held investments net unrealized gains/(losses) | (18.1) | 20.4 | 0 |
MVI | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Income/(loss) from equity method investment | 0.1 | (0.4) | (0.1) |
Chaspark | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Income/(loss) from equity method investment | 0.2 | 0 | 0 |
Digital Re | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Income/(loss) from equity method investment | 0 | (0.3) | (0.2) |
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 | 0 | 8.6 | 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 | $ 0 | $ 1.8 | $ 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, 2021 | Dec. 31, 2020 |
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Fair market value | $ 4,881.6 | $ 4,348.1 |
Gross unrealized gains | 95.3 | 222.4 |
Gross unrealized losses | (34.5) | (0.8) |
Allowance for credit loss | (2.7) | 0.2 |
Fixed income securities, available for sale amortized cost | 4,823.5 | 4,126.7 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 3.6 | 0.2 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 34.5 | 1 |
0-12 months, Fair Market Value | 2,014.6 | 147.8 |
Total short-term investments — Available for sale | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Fair market value | 10.1 | 87.8 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | (0.2) |
Allowance for credit loss | 0 | 0 |
Fixed income securities, available for sale amortized cost | 10.1 | 88 |
Total fixed income securities — Available for sale | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Fair market value | 4,891.7 | 4,435.9 |
Gross unrealized gains | 95.3 | 222.4 |
Gross unrealized losses | (34.5) | (1) |
Allowance for credit loss | (2.7) | 0.2 |
Fixed income securities, available for sale amortized cost | 4,833.6 | 4,214.7 |
Fixed income securities — Available for sale | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 3.6 | 0 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 34.5 | 0.8 |
0-12 months, Fair Market Value | 2,010.2 | 139.1 |
Short-term investments | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0.2 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 0 | 0.2 |
0-12 months, Fair Market Value | 4.4 | 8.7 |
U.S. government | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Fair market value | 1,084.3 | 1,101.2 |
Gross unrealized gains | 24 | 60.5 |
Gross unrealized losses | (5.9) | (0.6) |
Allowance for credit loss | 0 | 0 |
Fixed income securities, available for sale amortized cost | 1,066.2 | 1,041.3 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 1.9 | 0 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 5.9 | 0.6 |
0-12 months, Fair Market Value | 309.1 | 58.7 |
U.S. agency | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Fair market value | 21.5 | 34.3 |
Gross unrealized gains | 0.8 | 1.5 |
Gross unrealized losses | 0 | 0 |
Allowance for credit loss | 0 | 0 |
Fixed income securities, available for sale amortized cost | 20.7 | 32.8 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 0 | |
0-12 months, Fair Market Value | 6.1 | |
Municipal | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Fair market value | 82.6 | 67.1 |
Gross unrealized gains | 2 | 5.5 |
Gross unrealized losses | (0.5) | 0 |
Allowance for credit loss | (0.1) | 0 |
Fixed income securities, available for sale amortized cost | 81.2 | 61.6 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 0.5 | |
0-12 months, Fair Market Value | 29.7 | |
Corporate | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Fair market value | 2,208.3 | 1,826.2 |
Gross unrealized gains | 47.5 | 112 |
Gross unrealized losses | (13) | (0.1) |
Allowance for credit loss | (2.3) | 0.2 |
Fixed income securities, available for sale amortized cost | 2,176.1 | 1,714.5 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 1.3 | 0 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 13 | 0.1 |
0-12 months, Fair Market Value | 804.6 | 39.6 |
Non-U.S. government-backed corporate | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Fair market value | 136.8 | 63.4 |
Gross unrealized gains | 0.2 | 0.7 |
Gross unrealized losses | (1.9) | 0 |
Allowance for credit loss | 0 | 0 |
Fixed income securities, available for sale amortized cost | 138.5 | 62.7 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 1.9 | |
0-12 months, Fair Market Value | 114.4 | |
Non-U.S government | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Fair market value | 250.7 | 273.1 |
Gross unrealized gains | 1.4 | 4.3 |
Gross unrealized losses | (1.2) | 0 |
Allowance for credit loss | (0.3) | 0 |
Fixed income securities, available for sale amortized cost | 250.8 | 268.8 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 1.2 | 0 |
0-12 months, Fair Market Value | 181.8 | 7.5 |
Asset-backed | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Fair market value | 0.5 | 2.3 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Allowance for credit loss | 0 | 0 |
Fixed income securities, available for sale amortized cost | 0.5 | 2.3 |
Non-agency commercial mortgage-backed securities | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Fair market value | 6.9 | 7.4 |
Gross unrealized gains | 0.3 | 0.7 |
Gross unrealized losses | 0 | 0 |
Allowance for credit loss | 0 | 0 |
Fixed income securities, available for sale amortized cost | 6.6 | 6.7 |
Agency mortgage-backed | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Fair market value | 1,090 | 973.1 |
Gross unrealized gains | 19.1 | 37.2 |
Gross unrealized losses | (12) | (0.1) |
Allowance for credit loss | 0 | 0 |
Fixed income securities, available for sale amortized cost | 1,082.9 | 936 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0.4 | 0 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 12 | 0.1 |
0-12 months, Fair Market Value | $ 564.5 | $ 33.3 |
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, 2021 | Dec. 31, 2020 |
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Debt Securities, Trading, Amortized Cost | $ 1,155.5 | $ 844.8 |
High yield loans | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross Unrealized Gains | 0.1 | 0 |
Gross Unrealized Losses | (0.4) | (0.2) |
Fair market value, trading | 76.9 | 9.8 |
Debt Securities, Trading, Amortized Cost | 77.2 | 10 |
Fixed income securities - trading | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross Unrealized Gains | 6.2 | 16.8 |
Gross Unrealized Losses | (4.2) | (6) |
Fair market value, trading | 1,157.5 | 855.6 |
Debt Securities, Trading, Amortized Cost | 1,155.5 | 844.8 |
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 | 2 | 35.4 |
Debt Securities, Trading, Amortized Cost | 2 | 35.4 |
Equity securities — Trading | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross Unrealized Gains | 0.1 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair market value, trading | 3.6 | 5 |
Debt Securities, Trading, Amortized Cost | 3.5 | 5 |
Catastrophe Bonds | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (1.9) | 0 |
Fair market value, trading | 3.4 | 18.8 |
Debt Securities, Trading, Amortized Cost | 5.3 | 18.8 |
Commercial mortgage loans | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross Unrealized Gains | 0.4 | 0.1 |
Gross Unrealized Losses | (0.9) | (15.1) |
Fair market value, trading | 211.5 | 163.6 |
Debt Securities, Trading, Amortized Cost | 212 | 178.6 |
Middle market loans | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross Unrealized Gains | 0 | 0.2 |
Gross Unrealized Losses | (1.5) | (5.5) |
Fair market value, trading | 65.4 | 112.1 |
Debt Securities, Trading, Amortized Cost | 66.9 | 117.4 |
Securities, asset-backed | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (0.2) | (0.1) |
Fair market value, trading | 26.6 | 18.6 |
Debt Securities, Trading, Amortized Cost | 26.8 | 18.7 |
Privately-held investments | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross Unrealized Gains | 0.5 | 0.3 |
Gross Unrealized Losses | (2.6) | (20.7) |
Fair market value, trading | 307.1 | 299.3 |
Debt Securities, Trading, Amortized Cost | 309.2 | 319.7 |
Total - Trading | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross Unrealized Gains | 6.7 | 17.1 |
Gross Unrealized Losses | (8.7) | (26.7) |
Fair market value, trading | 1,470 | 1,209.1 |
Debt Securities, Trading, Amortized Cost | 1,472 | 1,218.7 |
U.S. government | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross Unrealized Gains | 0.6 | 2.7 |
Gross Unrealized Losses | (0.2) | (0.1) |
Fair market value, trading | 116.3 | 120.5 |
Debt Securities, Trading, Amortized Cost | 115.9 | 117.9 |
Municipal | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross Unrealized Gains | 0.1 | 0.3 |
Gross Unrealized Losses | 0 | 0 |
Fair market value, trading | 4 | 3.5 |
Debt Securities, Trading, Amortized Cost | 3.9 | 3.2 |
Corporate | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross Unrealized Gains | 1.9 | 9.1 |
Gross Unrealized Losses | (0.8) | 0 |
Fair market value, trading | 96.8 | 103.5 |
Debt Securities, Trading, Amortized Cost | 95.7 | 94.4 |
Non-U.S government | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross Unrealized Gains | 0 | 0.1 |
Gross Unrealized Losses | (0.4) | 0 |
Fair market value, trading | 34.5 | 41.6 |
Debt Securities, Trading, Amortized Cost | 34.9 | 41.5 |
Asset-backed | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross Unrealized Gains | 3.3 | 3.1 |
Gross Unrealized Losses | (1.9) | (5.7) |
Fair market value, trading | 785.7 | 539.1 |
Debt Securities, Trading, Amortized Cost | 784.3 | 541.7 |
Agency mortgage-backed | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross Unrealized Gains | 0.2 | 1.5 |
Gross Unrealized Losses | (0.3) | 0 |
Fair market value, trading | 30.2 | 37.6 |
Debt Securities, Trading, Amortized Cost | 30.3 | $ 36.1 |
Non-U.S. government-backed corporate | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (0.2) | |
Fair market value, trading | 13.1 | |
Debt Securities, Trading, Amortized Cost | $ 13.3 |
Investments Investments - Distr
Investments Investments - Distribution of Commercial Mortgage and Middle Market Loans (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Commercial mortgage loans | ||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||
Fair market value, trading | $ 211.5 | $ 163.6 |
Middle market loans | ||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||
Fair market value, trading | $ 65.4 | $ 112.1 |
Investment, Net Carrying Value | Commercial mortgage loans | Product Concentration Risk | ||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||
Concentration risk percentage | 100.00% | 100.00% |
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 | $ 101.6 | $ 80.7 |
Concentration risk percentage | 48.10% | 49.30% |
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 | $ 68.8 | $ 20.4 |
Concentration risk percentage | 32.50% | 12.50% |
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 | $ 33.9 |
Concentration risk percentage | 16.00% | 20.70% |
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 | $ 7.2 | $ 28.6 |
Concentration risk percentage | 3.40% | 17.50% |
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] | ||
Concentration risk percentage | 100.00% | 100.00% |
Investment, Net Carrying Value | Middle market loans | Product Concentration Risk | ||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||
Concentration risk percentage | 100.00% | 100.00% |
Investment, Net Carrying Value | Middle market loans | Product Concentration Risk | Materials | ||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||
Fair market value, trading | $ 20.9 | $ 28 |
Concentration risk percentage | 32.00% | 24.90% |
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 | $ 6.1 | $ 27.1 |
Concentration risk percentage | 9.30% | 24.20% |
Investment, Net Carrying Value | Middle market loans | Product Concentration Risk | Industrials | ||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||
Fair market value, trading | $ 18.7 | $ 17.3 |
Concentration risk percentage | 28.50% | 15.50% |
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 | $ 4.3 | $ 13.7 |
Concentration risk percentage | 6.60% | 12.20% |
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 | $ 0 | $ 7.5 |
Concentration risk percentage | 0.00% | 6.70% |
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 | $ 5.6 | $ 7.3 |
Concentration risk percentage | 8.60% | 6.50% |
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 | $ 4.9 | $ 6.4 |
Concentration risk percentage | 7.50% | 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 | $ 4.9 | $ 4.8 |
Concentration risk percentage | 7.50% | 4.30% |
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] | ||
Concentration risk percentage | 100.00% | 100.00% |
U.S. | Investment, Net Carrying Value | Commercial mortgage loans | Geographic Concentration Risk | ||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||
Fair market value, trading | $ 183.7 | $ 122.7 |
Concentration risk percentage | 86.90% | 75.00% |
U.S. | Investment, Net Carrying Value | Middle market loans | Geographic Concentration Risk | ||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||
Fair market value, trading | $ 56.2 | $ 91.8 |
Concentration risk percentage | 85.90% | 81.90% |
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 | $ 27.8 | $ 40.9 |
Concentration risk percentage | 13.10% | 25.00% |
International | Investment, Net Carrying Value | Middle market loans | Geographic Concentration Risk | ||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||
Fair market value, trading | $ 9.2 | $ 20.3 |
Concentration risk percentage | 14.10% | 18.10% |
Investments Investments - Loan-
Investments Investments - Loan-to-Value Ratios (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Middle market loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Fair market value, trading | $ 65.4 | $ 112.1 |
Middle market loans | Less than 50 Percent | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Fair market value, trading | 11 | 59.8 |
Middle market loans | 50 to 60 Percent | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Fair market value, trading | 9.2 | 11 |
Middle market loans | 61 to 70 Percent | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Fair market value, trading | 15.8 | 6.4 |
Middle market loans | 71 to 80 Percent | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Fair market value, trading | 5.6 | 0 |
Middle market loans | 80 to 100 Percent | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Fair market value, trading | 12 | 17.2 |
Middle market loans | Greater than 100% | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Fair market value, trading | 11.8 | 17.7 |
Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Fair market value, trading | 211.5 | 163.6 |
Commercial mortgage loans | Less than 50 Percent | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Fair market value, trading | 0 | 14.9 |
Commercial mortgage loans | 50 to 60 Percent | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Fair market value, trading | 131.2 | 39.3 |
Commercial mortgage loans | 61 to 70 Percent | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Fair market value, trading | 80.3 | 99.5 |
Commercial mortgage loans | 71 to 80 Percent | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Fair market value, trading | $ 0 | $ 9.9 |
Investments Investments - Debt
Investments Investments - Debt Service and Fixed Charge Coverage Ratios (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Commercial mortgage loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Fair market value, trading | $ 211.5 | $ 163.6 |
Commercial mortgage loans | 147.5 | 97.1 |
Delinquent amount of loans at end of period | 64 | 65.8 |
Commercial mortgage loans | Nonperforming loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Fair market value, trading | 0 | 0.7 |
Commercial mortgage loans | Less than 50 Percent | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Fair market value, trading | 0 | 14.9 |
Commercial mortgage loans | 50 to 60 Percent | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Fair market value, trading | 131.2 | 39.3 |
Commercial mortgage loans | 61 to 70 Percent | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Fair market value, trading | 80.3 | 99.5 |
Commercial mortgage loans | 71 to 80 Percent | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Fair market value, trading | 0 | 9.9 |
Middle market loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Fair market value, trading | 65.4 | 112.1 |
Middle market loans | Less than 50 Percent | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Fair market value, trading | 11 | 59.8 |
Middle market loans | 50 to 60 Percent | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Fair market value, trading | 9.2 | 11 |
Middle market loans | 61 to 70 Percent | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Fair market value, trading | 15.8 | 6.4 |
Middle market loans | 71 to 80 Percent | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Fair market value, trading | 5.6 | 0 |
Middle market loans | 80 to 100 Percent | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Fair market value, trading | 12 | 17.2 |
Greater than 1.20x | Commercial mortgage loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Fair market value, trading | 66.3 | 82.2 |
Greater than 1.20x | Middle market loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Fair market value, trading | 25.8 | 73.6 |
1.00 - 1.20x | Commercial mortgage loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Fair market value, trading | 62.4 | 14.9 |
1.00 - 1.20x | Middle market loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Fair market value, trading | 22.8 | 0 |
Less than 1.00x | Commercial mortgage loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Fair market value, trading | 18.8 | 0 |
Less than 1.00x | Middle market loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Fair market value, trading | $ 16.8 | $ 38.5 |
Investments - Other Investments
Investments - Other Investments (Details) - USD ($) $ in Millions | Dec. 14, 2020 | Jul. 26, 2016 | Mar. 31, 2021 | Jan. 31, 2015 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Equity Method Investment, Aggregate Cost [Roll Forward] | ||||||||
Opening undistributed value of investment, beginning balance | $ 0.9 | $ 67.9 | ||||||
Investment in the period | 3.2 | 0.5 | ||||||
Equity method investment, realized gain (loss) on disposal | 10.4 | |||||||
Proceeds from Sale of Equity Method Investments | 3.9 | |||||||
Closing value of investment, ending balance | 0.9 | $ 67.9 | ||||||
Equity Method Investment, Nonconsolidated Investee, Other | ||||||||
Equity Method Investment, Aggregate Cost [Roll Forward] | ||||||||
Unrealized Gain (Loss) on Investments | 0.3 | (0.7) | ||||||
Proceeds from Sale of Equity Method Investments | (0.5) | (77.2) | ||||||
MVI | ||||||||
Equity Method Investment, Aggregate Cost [Roll Forward] | ||||||||
Opening undistributed value of investment, beginning balance | 0 | 0.4 | ||||||
Investment in the period | $ 0.8 | $ 0.8 | 0.4 | 0 | 0.2 | $ 0.1 | ||
Equity method investment, realized gain (loss) on disposal | 0 | |||||||
Proceeds from Sale of Equity Method Investments | 0.5 | |||||||
Closing value of investment, ending balance | 0 | 0.4 | ||||||
MVI | Equity Method Investment, Nonconsolidated Investee, Other | ||||||||
Equity Method Investment, Aggregate Cost [Roll Forward] | ||||||||
Unrealized Gain (Loss) on Investments | 0.1 | (0.4) | ||||||
Proceeds from Sale of Equity Method Investments | 0 | 0 | ||||||
Multi-Line Insurer | ||||||||
Equity Method Investment, Aggregate Cost [Roll Forward] | ||||||||
Opening undistributed value of investment, beginning balance | 0.5 | 0 | ||||||
Investment in the period | 2.5 | 0.5 | ||||||
Equity method investment, realized gain (loss) on disposal | 0 | |||||||
Proceeds from Sale of Equity Method Investments | 3.2 | |||||||
Closing value of investment, ending balance | 0.5 | 0 | ||||||
Multi-Line Insurer | Equity Method Investment, Nonconsolidated Investee, Other | ||||||||
Equity Method Investment, Aggregate Cost [Roll Forward] | ||||||||
Unrealized Gain (Loss) on Investments | 0.2 | 0 | ||||||
Proceeds from Sale of Equity Method Investments | 0 | 0 | ||||||
Bene | ||||||||
Equity Method Investment, Aggregate Cost [Roll Forward] | ||||||||
Opening undistributed value of investment, beginning balance | 0 | 4.3 | ||||||
Investment in the period | $ 3.3 | |||||||
Equity method investment, cash payment | 0 | 0 | 1.1 | $ 1.2 | ||||
Equity method investment, realized gain (loss) on disposal | 1.8 | |||||||
Proceeds from Sale of Equity Method Investments | 0 | |||||||
Closing value of investment, ending balance | 0 | 4.3 | ||||||
Bene | Equity Method Investment, Nonconsolidated Investee, Other | ||||||||
Equity Method Investment, Aggregate Cost [Roll Forward] | ||||||||
Unrealized Gain (Loss) on Investments | 0 | 0 | ||||||
Proceeds from Sale of Equity Method Investments | 0 | (6.1) | ||||||
Digital Re | ||||||||
Equity Method Investment, Aggregate Cost [Roll Forward] | ||||||||
Opening undistributed value of investment, beginning balance | 0.4 | 0.7 | ||||||
Investment in the period | 0.3 | 0 | ||||||
Equity method investment, realized gain (loss) on disposal | 0 | |||||||
Proceeds from Sale of Equity Method Investments | 0.2 | |||||||
Closing value of investment, ending balance | 0.4 | 0.7 | ||||||
Digital Re | Equity Method Investment, Nonconsolidated Investee, Other | ||||||||
Equity Method Investment, Aggregate Cost [Roll Forward] | ||||||||
Unrealized Gain (Loss) on Investments | 0 | (0.3) | ||||||
Proceeds from Sale of Equity Method Investments | (0.5) | 0 | ||||||
Crop Re | ||||||||
Equity Method Investment, Aggregate Cost [Roll Forward] | ||||||||
Opening undistributed value of investment, beginning balance | 0 | 62.5 | ||||||
Investment in the period | 0 | 0 | ||||||
Equity method investment, realized gain (loss) on disposal | $ 71.1 | 8.6 | ||||||
Proceeds from Sale of Equity Method Investments | 0 | |||||||
Closing value of investment, ending balance | 0 | $ 62.5 | ||||||
Crop Re | Equity Method Investment, Nonconsolidated Investee, Other | ||||||||
Equity Method Investment, Aggregate Cost [Roll Forward] | ||||||||
Unrealized Gain (Loss) on Investments | 0 | 0 | ||||||
Proceeds from Sale of Equity Method Investments | $ 0 | $ (71.1) |
Investments - Summary of Fixed
Investments - Summary of Fixed Maturities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Securities, Available-for-sale [Line Items] | ||
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | $ 4,823.5 | $ 4,126.7 |
Available for sale investments in fixed income maturities, Fair Market Value | 4,881.6 | 4,348.1 |
Total fixed income securities — Available for sale | ||
Debt Securities, Available-for-sale [Line Items] | ||
Due one year or less, Cost or Amortized Cost | 545.1 | 498.6 |
Due after one year through five years, Cost or Amortized Cost | 2,057.2 | 1,833.6 |
Due after five years through ten years, Cost or Amortized Cost | 1,090.5 | 741.9 |
Due after ten years, Cost or Amortized Cost | 40.7 | 107.6 |
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | 3,733.5 | 3,181.7 |
Due one year or less, Fair Market Value | $ 549 | $ 501.3 |
Available For Sale Securities Debt Maturities Within One Year Average Ratings By Maturity | AA- | AA |
Due after one year through five years, Fair Market Value | $ 2,087.5 | $ 1,925.9 |
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 | $ 1,106.3 | $ 806.5 |
Available For Sale Securities Debt Maturities After Five Through Ten Years Average Ratings By Maturity | A+ | AA- |
Due after ten years, Fair Market Value | $ 41.4 | $ 131.6 |
Available For Sale Securities Debt Maturities After Ten Years Average Ratings By Maturity | A- | AA- |
Available for sale investments in fixed income maturities, Fair Market Value | $ 3,784.2 | $ 3,365.3 |
Agency mortgage-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | 1,082.9 | 936 |
Available for sale investments in fixed income maturities, Fair Market Value | $ 1,090 | $ 973.1 |
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 | $ 6.6 | $ 6.7 |
Available for sale investments in fixed income maturities, Fair Market Value | $ 6.9 | $ 7.4 |
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 | $ 0.5 | $ 2.3 |
Available for sale investments in fixed income maturities, Fair Market Value | $ 0.5 | $ 2.3 |
Available For Sale Securities Average Ratings By Maturity | AAA | AAA |
Fixed maturities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | $ 4,823.5 | $ 4,126.7 |
Available for sale investments in fixed income maturities, Fair Market Value | $ 4,881.6 | $ 4,348.1 |
Investments - Aggregate Fair Va
Investments - Aggregate Fair Value and Gross Unrealized Loss by Type of Security (Details) $ in Millions | Dec. 31, 2021USD ($)securitySecurity | Dec. 31, 2020USD ($)securitySecurity |
Debt Securities, Available-for-sale [Line Items] | ||
0-12 months, Fair Market Value | $ 2,014.6 | $ 147.8 |
Gross unrealized losses, less than twelve months | (30.9) | (0.8) |
Over 12 months, Fair Market Value | 72 | 2.1 |
Over 12 months, Gross Unrealized Losses | (3.6) | (0.2) |
Total, Fair Market Value | 2,086.6 | 149.9 |
Total, Gross Unrealized Losses | $ (34.5) | $ (1) |
Number of Securities | security | 644 | 64 |
Fixed income securities — Available for sale | ||
Debt Securities, Available-for-sale [Line Items] | ||
0-12 months, Fair Market Value | $ 2,010.2 | $ 139.1 |
Gross unrealized losses, less than twelve months | (30.9) | (0.8) |
Over 12 months, Fair Market Value | 72 | 2.1 |
Over 12 months, Gross Unrealized Losses | (3.6) | 0 |
Total, Fair Market Value | 2,082.2 | 141.2 |
Total, Gross Unrealized Losses | $ (34.5) | $ (0.8) |
Number of Securities | Security | 637 | 49 |
Short-term investments | ||
Debt Securities, Available-for-sale [Line Items] | ||
0-12 months, Fair Market Value | $ 4.4 | $ 8.7 |
Gross unrealized losses, less than twelve months | 0 | 0 |
Over 12 months, Fair Market Value | 0 | 0 |
Over 12 months, Gross Unrealized Losses | 0 | (0.2) |
Total, Fair Market Value | 4.4 | 8.7 |
Total, Gross Unrealized Losses | $ 0 | $ (0.2) |
Number of Securities | 7 | 15 |
U.S. government | ||
Debt Securities, Available-for-sale [Line Items] | ||
0-12 months, Fair Market Value | $ 309.1 | $ 58.7 |
Gross unrealized losses, less than twelve months | (4) | (0.6) |
Over 12 months, Fair Market Value | 29.3 | 0 |
Over 12 months, Gross Unrealized Losses | (1.9) | 0 |
Total, Fair Market Value | 338.4 | 58.7 |
Total, Gross Unrealized Losses | $ (5.9) | $ (0.6) |
Number of Securities | security | 51 | 10 |
U.S. agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
0-12 months, Fair Market Value | $ 6.1 | |
Gross unrealized losses, less than twelve months | 0 | |
Over 12 months, Fair Market Value | 0 | |
Over 12 months, Gross Unrealized Losses | 0 | |
Total, Fair Market Value | 6.1 | |
Total, Gross Unrealized Losses | $ 0 | |
Number of Securities | security | 5 | |
Municipal | ||
Debt Securities, Available-for-sale [Line Items] | ||
0-12 months, Fair Market Value | $ 29.7 | |
Gross unrealized losses, less than twelve months | (0.5) | |
Over 12 months, Fair Market Value | 0 | |
Over 12 months, Gross Unrealized Losses | 0 | |
Total, Fair Market Value | 29.7 | |
Total, Gross Unrealized Losses | $ (0.5) | |
Number of Securities | security | 20 | |
Corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
0-12 months, Fair Market Value | $ 804.6 | $ 39.6 |
Gross unrealized losses, less than twelve months | (11.7) | (0.1) |
Over 12 months, Fair Market Value | 23.6 | 0 |
Over 12 months, Gross Unrealized Losses | (1.3) | 0 |
Total, Fair Market Value | 828.2 | 39.6 |
Total, Gross Unrealized Losses | $ (13) | $ (0.1) |
Number of Securities | security | 400 | 16 |
Non-U.S. government-backed corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
0-12 months, Fair Market Value | $ 114.4 | |
Gross unrealized losses, less than twelve months | (1.9) | |
Over 12 months, Fair Market Value | 0 | |
Over 12 months, Gross Unrealized Losses | 0 | |
Total, Fair Market Value | 114.4 | |
Total, Gross Unrealized Losses | $ (1.9) | |
Number of Securities | security | 10 | |
Non-U.S government | ||
Debt Securities, Available-for-sale [Line Items] | ||
0-12 months, Fair Market Value | $ 181.8 | $ 7.5 |
Gross unrealized losses, less than twelve months | (1.2) | 0 |
Over 12 months, Fair Market Value | 3.1 | 0 |
Over 12 months, Gross Unrealized Losses | 0 | 0 |
Total, Fair Market Value | 184.9 | 7.5 |
Total, Gross Unrealized Losses | $ (1.2) | $ 0 |
Number of Securities | security | 35 | 4 |
Agency mortgage-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
0-12 months, Fair Market Value | $ 564.5 | $ 33.3 |
Gross unrealized losses, less than twelve months | (11.6) | (0.1) |
Over 12 months, Fair Market Value | 16 | 2.1 |
Over 12 months, Gross Unrealized Losses | (0.4) | 0 |
Total, Fair Market Value | 580.5 | 35.4 |
Total, Gross Unrealized Losses | $ (12) | $ (0.1) |
Number of Securities | security | 116 | 19 |
Investments - Additional Inform
Investments - Additional Information (Narrative) (Details) - USD ($) $ in Millions | Dec. 14, 2020 | Jul. 26, 2016 | Mar. 31, 2021 | Jan. 31, 2015 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2021 | Dec. 23, 2019 | Dec. 20, 2017 | Jan. 01, 2017 |
Gain (Loss) on Securities [Line Items] | ||||||||||||
Catastrophe bonds, trading, cost | $ 3.4 | $ 18.8 | ||||||||||
Investment in the period | 3.2 | 0.5 | ||||||||||
Investment in Multiline reinsurer | 3.9 | |||||||||||
Equity method investment, aggregate cost | 0.9 | $ 67.9 | ||||||||||
Equity method investment, realized gain (loss) on disposal | 10.4 | |||||||||||
Other investments, at fair value | 151.3 | 109.4 | ||||||||||
Investment funded | 0 | |||||||||||
Available-for-sale investment, allowance for credit loss, increase (decrease) | $ 2.5 | (0.4) | ||||||||||
Accounting Standards Update 2016-13 | ||||||||||||
Gain (Loss) on Securities [Line Items] | ||||||||||||
Available-for-sale investment, allowance for credit loss, increase (decrease) | 0.6 | |||||||||||
Real estate fund | ||||||||||||
Gain (Loss) on Securities [Line Items] | ||||||||||||
Percentage of investment | 2.00% | |||||||||||
Real estate fund | Fair Value, Recurring [Member] | ||||||||||||
Gain (Loss) on Securities [Line Items] | ||||||||||||
Investments, fair value | $ 151.3 | $ 109.4 | ||||||||||
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 | 5.60% | 5.10% | ||||||||||
Commercial mortgage loans | ||||||||||||
Gain (Loss) on Securities [Line Items] | ||||||||||||
Fair market value, trading | $ 211.5 | $ 163.6 | ||||||||||
Middle market loans | ||||||||||||
Gain (Loss) on Securities [Line Items] | ||||||||||||
Fair market value, trading | 65.4 | 112.1 | ||||||||||
Privately-held investments | ||||||||||||
Gain (Loss) on Securities [Line Items] | ||||||||||||
Fair market value, trading | 307.1 | 299.3 | ||||||||||
Real estate fund (Dec 2017) | Fair Value, Recurring [Member] | ||||||||||||
Gain (Loss) on Securities [Line Items] | ||||||||||||
Investments, fair value | 129.9 | |||||||||||
Real estate fund (Sept 2021) | Fair Value, Recurring [Member] | ||||||||||||
Gain (Loss) on Securities [Line Items] | ||||||||||||
Investments, fair value | 21.4 | |||||||||||
Bene | ||||||||||||
Gain (Loss) on Securities [Line Items] | ||||||||||||
Investment in the period | $ 3.3 | |||||||||||
Investment in Multiline reinsurer | 0 | |||||||||||
Equity method investment, ownership percentage | 20.00% | |||||||||||
Equity method investment, aggregate cost | 0 | 4.3 | ||||||||||
Equity method investment, cash payment | 0 | 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 | $ 0.8 | 0.4 | 0 | 0.2 | $ 0.1 | ||||||
Gross realized and unrealized gains (loss) | 0.1 | (0.4) | (0.1) | |||||||||
Investment in Multiline reinsurer | 0.5 | |||||||||||
Equity method investment, aggregate cost | 0 | 0.4 | ||||||||||
Equity method investment, realized gain (loss) on disposal | 0 | |||||||||||
Digital Re | ||||||||||||
Gain (Loss) on Securities [Line Items] | ||||||||||||
Investment in the period | 0.3 | 0 | ||||||||||
Gross realized and unrealized gains (loss) | 0 | (0.3) | (0.2) | |||||||||
Investment in Multiline reinsurer | 0.2 | |||||||||||
Equity method investment, ownership percentage | 49.00% | |||||||||||
Equity method investment, aggregate cost | 0.4 | 0.7 | $ 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 | 0 | |||||||||||
Equity method investment, ownership percentage | 23.20% | |||||||||||
Equity method investment, aggregate cost | 0 | 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 | 2.5 | 0.5 | ||||||||||
Investment in Multiline reinsurer | 3.2 | |||||||||||
Equity method investment, aggregate cost | 0.5 | $ 0 | ||||||||||
Equity method investment, realized gain (loss) on disposal | 0 | |||||||||||
Other investments, at fair value | $ 5 | |||||||||||
Limited Partner | Real estate fund | ||||||||||||
Gain (Loss) on Securities [Line Items] | ||||||||||||
Restricted assets | $ 20 | $ 100 | ||||||||||
Other investments, at fair value | $ 151.3 | $ 109.4 |
Variable Interest Entities - Na
Variable Interest Entities - Narrative (Details) - Investment | Dec. 31, 2021 | Dec. 31, 2020 |
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, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Catastrophe Bonds, Fair Value Disclosure | $ 5.3 | $ 18.8 |
Derivatives at fair value | 12.9 | 26.8 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 6,512.6 | 5,767.6 |
Recurring | Derivatives at fair value | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives at fair value | 12.9 | 26.8 |
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 | (13.3) | (13.6) |
Recurring | Total fixed income securities — Available for sale | Non-agency commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 6.9 | |
Recurring | Fixed income securities — Available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 4,881.6 | 4,348.1 |
Recurring | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 10.1 | 87.8 |
Recurring | Held for trading financial assets, at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 1,157.5 | 855.6 |
Privately-held Investments, at fair value | 307.1 | 299.3 |
Catastrophe Bonds, Fair Value Disclosure | 3.4 | 18.8 |
Recurring | Short-term investments trading at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 2 | 35.4 |
Recurring | Real estate fund | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 151.3 | 109.4 |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 1,384.5 | 1,563.5 |
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 | 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 | 1,248.7 | 1,285.4 |
Recurring | Level 1 | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 6.5 | 81 |
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 | 128.2 | 161.7 |
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 | 1.1 | 35.4 |
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] | ||
Total | 4,669.7 | 3,795.4 |
Recurring | Level 2 | Derivatives at fair value | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives at fair value | 12.9 | 26.8 |
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 | (13.3) | (13.6) |
Recurring | Level 2 | Total fixed income securities — Available for sale | Non-agency commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 6.9 | |
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 | 3,632.9 | 3,062.7 |
Recurring | Level 2 | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 3.6 | 6.8 |
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 | 1,029.3 | 693.9 |
Privately-held Investments, at fair value | 0 | 0 |
Catastrophe Bonds, Fair Value Disclosure | 3.4 | 18.8 |
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 | 0.9 | 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] | ||
Total | 307.1 | 299.3 |
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 | 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 | 307.1 | 299.3 |
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 | 1,084.3 | 1,101.2 |
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 | 116.3 | 120.5 |
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 | 1,084.3 | 1,101.2 |
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 | 116.3 | 120.5 |
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 | 21.5 | 34.3 |
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 | 21.5 | 34.3 |
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 | 82.6 | 67.1 |
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 | 4 | 3.5 |
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 | 82.6 | 67.1 |
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 | 4 | 3.5 |
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 | 2,208.3 | 273.1 |
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 | 96.8 | 103.5 |
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 | 184.2 |
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 | 2,208.3 | 88.9 |
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 | 96.8 | 103.5 |
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 | 136.8 | 63.4 |
Non-U.S. government-backed corporate | Recurring | Held for trading financial assets, at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 13.1 | |
Non-U.S. government-backed corporate | Recurring | Level 1 | Total fixed income securities — Available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Non-U.S. government-backed corporate | Recurring | Level 1 | Held for trading financial assets, at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | |
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 | 136.8 | 63.4 |
Non-U.S. government-backed corporate | Recurring | Level 2 | Held for trading financial assets, at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 13.1 | |
Non-U.S. government-backed corporate | Recurring | Level 3 | Total fixed income securities — Available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Non-U.S. government-backed corporate | Recurring | Level 3 | Held for trading financial assets, at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | |
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 | 250.7 | 7.4 |
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 | 34.5 | 41.6 |
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 | 164.4 | 0 |
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 | 11.9 | 41.2 |
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 | 86.3 | 7.4 |
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 | 22.6 | 0.4 |
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 | 0.5 | 973.1 |
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 | 785.7 | 539.1 |
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 | 0.5 | 973.1 |
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 | 785.7 | 539.1 |
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 | 2.3 | |
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 | 2.3 | |
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 | 1,090 | 1,826.2 |
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 | 30.2 | 37.6 |
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 | 1,090 | 1,826.2 |
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 | 30.2 | 37.6 |
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 | 76.9 | 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 | 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 | 76.9 | 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 | $ 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, 2021 | Dec. 31, 2020 | |
Commercial mortgage loans | ||
Fair Value, Assets Measured on Recurring Basis, Calculation [Roll Forward] | ||
Balance at the beginning of the year | $ 163.6 | |
Balance at the end of the year | 211.5 | $ 163.6 |
Middle market loans | ||
Fair Value, Assets Measured on Recurring Basis, Calculation [Roll Forward] | ||
Balance at the beginning of the year | 112.1 | |
Balance at the end of the year | 65.4 | 112.1 |
Equity securities | ||
Fair Value, Assets Measured on Recurring Basis, Calculation [Roll Forward] | ||
Balance at the beginning of the year | 5 | |
Balance at the end of the year | 3.6 | 5 |
Recurring | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Change in unrealized investment gains (losses) | (2.2) | (5.2) |
Fair Value, Assets Measured on Recurring Basis, Calculation [Roll Forward] | ||
Balance at the beginning of the year | 299.3 | |
Balance at the end of the year | 307.1 | 299.3 |
Recurring | Commercial mortgage loans | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Change in unrealized investment gains (losses) | (0.5) | 0.1 |
Fair Value, Assets Measured on Recurring Basis, Calculation [Roll Forward] | ||
Balance at the beginning of the year | 163.6 | |
Balance at the end of the year | 211.5 | 163.6 |
Recurring | Middle market loans | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Change in unrealized investment gains (losses) | (1.5) | (5.3) |
Fair Value, Assets Measured on Recurring Basis, Calculation [Roll Forward] | ||
Balance at the beginning of the year | 112.1 | |
Balance at the end of the year | 65.3 | 112.1 |
Recurring | Asset-backed | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Change in unrealized investment gains (losses) | (0.2) | 0 |
Fair Value, Assets Measured on Recurring Basis, Calculation [Roll Forward] | ||
Balance at the beginning of the year | 18.6 | |
Balance at the end of the year | 26.7 | 18.6 |
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 | 5 | |
Balance at the end of the year | 3.6 | 5 |
Recurring | Preference shares | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Change in unrealized investment gains (losses) | 0 | |
Fair Value, Assets Measured on Recurring Basis, Calculation [Roll Forward] | ||
Balance at the end of the year | 0 | |
Assets | Recurring | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Calculation [Roll Forward] | ||
Balance at the beginning of the year | 299.3 | 279.5 |
Purchases and issuances | 205.1 | 93 |
Settlements and sales | (182.2) | (64.3) |
Increase (decrease) in fair value included in net income | 4.2 | (17.2) |
Balance at the end of the year | 299.3 | |
Transfers in/(out) | (19.5) | 8.3 |
Assets | Recurring | Commercial mortgage loans | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Calculation [Roll Forward] | ||
Balance at the beginning of the year | 163.6 | 156.4 |
Purchases and issuances | 169.9 | 79.7 |
Settlements and sales | (122.5) | (59.4) |
Increase (decrease) in fair value included in net income | 0.5 | (13.1) |
Balance at the end of the year | 163.6 | |
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 | 112.1 | 111.7 |
Purchases and issuances | 5.6 | 0.9 |
Settlements and sales | (56.1) | (4.8) |
Increase (decrease) in fair value included in net income | 3.7 | (4) |
Balance at the end of the year | 112.1 | |
Transfers in/(out) | 0 | 8.3 |
Assets | Recurring | Asset-backed | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Calculation [Roll Forward] | ||
Balance at the beginning of the year | 18.6 | 8.7 |
Purchases and issuances | 10 | 10 |
Settlements and sales | (1.8) | 0 |
Increase (decrease) in fair value included in net income | (0.1) | (0.1) |
Balance at the end of the year | 18.6 | |
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 | 5 | 2.7 |
Purchases and issuances | 0.1 | 2.4 |
Settlements and sales | (1.6) | (0.1) |
Increase (decrease) in fair value included in net income | 0.1 | 0 |
Balance at the end of the year | 5 | |
Transfers in/(out) | 0 | 0 |
Assets | Recurring | Preference shares | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Calculation [Roll Forward] | ||
Balance at the beginning of the year | 0 | |
Purchases and issuances | 19.5 | |
Settlements and sales | 0 | |
Increase (decrease) in fair value included in net income | 0 | |
Balance at the end of the year | $ 0 | |
Transfers in/(out) | $ (19.5) |
Fair Value Measurements - Input
Fair Value Measurements - Inputs Used (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gross written premiums | $ 3,938.4 | $ 3,698.5 | $ 3,442.4 |
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 | 307.1 | 299.3 | |
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 | $ 307.1 | $ 299.3 | |
Discounted cash flow | Commercial mortgage loans | Minimum | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Measurement inputs | 0.035 | ||
Discounted cash flow | Commercial mortgage loans | Maximum | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Measurement inputs | 0.095 | ||
Discounted cash flow | Commercial mortgage loans | Weighted Average | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Measurement inputs | 0.058 | ||
Discounted cash flow | Commercial mortgage loans | Recurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Privately-held Investments, at fair value | $ 173.9 | ||
Discounted cash flow | Middle market loans | Minimum | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Measurement inputs | 0.062 | ||
Discounted cash flow | Middle market loans | Maximum | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Measurement inputs | 0.155 | ||
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 | 0.091 | ||
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 | $ 65.3 | ||
Discounted cash flow | Asset-backed | Minimum | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Measurement inputs | 0.030 | ||
Discounted cash flow | Asset-backed | Maximum | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Measurement inputs | 0.073 | ||
Discounted cash flow | Asset-backed | Weighted Average | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Measurement inputs | 0.054 | ||
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 | $ 26.7 | ||
Discounted cash flow | Equity securities — Trading | Minimum | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Measurement inputs | 0.092 | ||
Discounted cash flow | Equity securities — Trading | Maximum | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Measurement inputs | 0.092 | ||
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 | 0.092 | ||
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 | $ 2.8 | ||
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 | 37.6 | ||
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 | 0.8 | ||
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 | ||
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 | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information - Narrative (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2021USD ($)quotesPerInvestment | Dec. 31, 2020USD ($)quotesPerInvestment | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Quotes per fixed income investment | quotesPerInvestment | 3 | 2.6 |
Assets | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Transfers in/(out) | $ (19.5) | $ 8.3 |
Settlements and sales | (182.2) | (64.3) |
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 | 307.1 | 299.3 |
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 | $ 307.1 | $ 299.3 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Premiums written(1): | |||||
Direct | $ 2,341.4 | $ 2,042.1 | $ 1,956.9 | ||
Assumed | 1,597 | 1,656.4 | 1,485.5 | ||
Ceded | (1,350.7) | (1,120.7) | (1,014.5) | ||
Net premiums written | 2,587.7 | 2,577.8 | 2,427.9 | ||
Premiums earned(1): | |||||
Direct | 2,139.1 | 2,026.4 | 1,927.5 | ||
Assumed | 1,479.2 | 1,612 | 1,494.9 | ||
Ceded | (1,207.8) | (1,110.9) | (1,129.1) | ||
Net premiums earned | 2,410.5 | 2,527.5 | [1] | 2,293.3 | [1] |
Insurance losses and loss adjustment expenses: | |||||
Direct | 1,499.8 | 1,479.6 | 1,415.5 | ||
Assumed | 1,000.6 | 1,134.5 | 1,147.9 | ||
Ceded | (807.1) | (773.3) | (883.7) | ||
Net insurance losses and loss adjustment expenses | 1,693.3 | 1,840.8 | 1,679.7 | ||
Insurance | |||||
Premiums written(1): | |||||
Net premiums written | 1,388.7 | 1,280.1 | 1,176.8 | ||
Premiums earned(1): | |||||
Net premiums earned | $ 1,291.7 | $ 1,239.8 | $ 1,038.1 | ||
[1] | Net earned premium has been corrected for immaterial errors in relation to gross written premium and reinsurance premium payables for periods 2020 and prior. Net realized and unrealized exchange gains/(losses) and change in foreign currency translation adjustment have been corrected to account for the correction of foreign exchange movements on underwriting premium receivables which should have been matched with an underwriting premium receivable payment for periods 2020 and prior. Income tax expense has been corrected for historic current and deferred income taxes on Aspen U.K’s branches due to the deficiency in the completeness and accuracy of branch data and associated application thereof in respect of local tax rules in various jurisdictions. Total revenues, net income/(loss) and other comprehensive income/(loss) before and after income taxes have been corrected as a result of the corrections mentioned above for periods 2020 and 2019. Refer to Note 26 in these consolidated financial statements, “Correction of Immaterial Errors” for further details. |
Reinsurance - Additional Inform
Reinsurance - Additional Information (Details) - USD ($) $ in Millions | Mar. 02, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||||
Plus reinsurance recoverable on unpaid losses at the end of the year | $ 3,298.1 | $ 3,195.2 | $ 2,319.8 | ||
Deferred Gain on Reinsurance | 58.3 | 0 | 0 | ||
Amortization of deferred gains on reinsurance | 9.8 | ||||
Reinsurance Recoverable, Allowance for Credit Loss | 3.3 | 3.8 | 3.7 | ||
Reinsurance Recoverable, Allowance for Credit Loss, Period Increase (Decrease) | (0.5) | 0.1 | |||
ADC | |||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||||
Plus reinsurance recoverable on unpaid losses at the end of the year | 2,518.3 | 2,425.2 | $ 2,319.8 | ||
Reinsurance recoverables, premium paid and recognized | $ 68.1 | $ 0 | $ 0 | ||
Enstar | |||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||||
Plus reinsurance recoverable on unpaid losses at the end of the year | $ 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 |
Derivative Contracts - Fair Val
Derivative Contracts - Fair Value of Derivative Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Mar. 31, 2020 |
Not Designated as Hedging Instrument | Foreign exchange contracts | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative, Notional Amount | $ 1,545.7 | $ 1,402.3 | ||
Cash collateral | 2.1 | 3.4 | ||
Not Designated as Hedging Instrument | Derivatives at Fair Value | Foreign exchange contracts | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair Value | 12.9 | 21.5 | ||
Derivative, Notional Amount | 759.8 | 803.1 | ||
Not Designated as Hedging Instrument | Liabilities Under Derivative Contracts | Foreign exchange contracts | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair Value | (12.4) | (13.6) | ||
Derivative, Notional Amount | 785.9 | 599.2 | ||
Not Designated as Hedging Instrument | Liabilities Under Derivative Contracts | Interest rate swap | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative, Notional Amount | $ 1,250 | $ 3,138 | ||
Designated as Hedging Instrument | Derivatives at Fair Value | Foreign exchange contracts | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair Value | 0 | 5.3 | ||
Derivative, Notional Amount | 0 | 90.6 | ||
Designated as Hedging Instrument | Liabilities Under Derivative Contracts | Foreign exchange contracts | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair Value | (0.9) | 0 | ||
Derivative, Notional Amount | $ 143.1 | $ 0 |
Derivative Contracts - Gain_(Lo
Derivative Contracts - Gain/(Loss) Recognized in Income on Derivative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | 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 | $ (35.9) | $ 16 | |
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 | 0 | (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 | (5.7) | (3.2) | |
Designated as Hedging Instrument | Foreign exchange contracts | Net change from current period hedged transactions | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on foreign currency fair value hedge derivatives | $ (6.2) | $ 0.3 |
Derivative Contracts - Addition
Derivative Contracts - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2020 | Mar. 31, 2020 | |
Foreign exchange contracts | Not Designated as Hedging Instrument | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Purchase of US and foreign exchange | $ 1,545.7 | $ 1,402.3 | |||
Foreign exchange contracts | Not Designated as Hedging Instrument | Derivative At Fair Value | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Purchase of US and foreign exchange | 759.8 | 803.1 | |||
Foreign exchange contracts | Not Designated as Hedging Instrument | Liabilities Under Derivative Contracts | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Purchase of US and foreign exchange | 785.9 | 599.2 | |||
Foreign exchange contracts | Designated as Hedging Instrument | Derivative At Fair Value | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Purchase of US and foreign exchange | 0 | 90.6 | |||
Foreign exchange contracts | Designated as Hedging Instrument | Liabilities Under Derivative Contracts | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Purchase of US and foreign exchange | 143.1 | 0 | |||
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 | (6.2) | 0.3 | |||
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 | (5.7) | (3.2) | |||
Foreign exchange contracts | Gain (loss) on derivative instruments | Not Designated as Hedging Instrument | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (loss) to net income from derivative instruments | (35.9) | 16 | |||
Interest rate swap | Not Designated as Hedging Instrument | Liabilities Under Derivative Contracts | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Purchase of US and foreign exchange | $ 1,250 | $ 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 | $ 0 | $ (81.1) | $ (130.2) |
Deferred Policy Acquisition C_3
Deferred Policy Acquisition Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Balance at the beginning of the period | $ 306.6 | $ 291.1 | |
Acquisition costs deferred | 398.3 | 481.2 | |
Amortization of deferred policy acquisition costs | (414.1) | (465.7) | $ (412.7) |
Balance at the end of the period | $ 290.8 | $ 306.6 | $ 291.1 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 02, 2020 | Dec. 31, 2018 | |
Insurance [Abstract] | |||||
Provision for losses and LAE, beginning balance | $ 7,165.3 | $ 6,951.8 | $ 7,074.2 | ||
Less reinsurance recoverable | (3,195.2) | (2,319.8) | $ (2,077.6) | ||
Net losses and LAE reserves, beginning balance | 3,970.1 | 4,632 | 4,996.6 | ||
Net loss and LAE expenses (disposed) (1) | 0 | (818.5) | 0 | ||
Movement in net provision for losses and LAE for claims incurred: | |||||
Current year | 1,648.2 | 1,841.7 | 1,620.2 | ||
Prior years | 45.1 | (0.9) | 59.5 | ||
Total incurred | 1,693.3 | 1,840.8 | 1,679.7 | ||
Losses and LAE payments for claims incurred: | |||||
Current year | (729.1) | (404.9) | (428.5) | ||
Prior years | (580.7) | (1,359.7) | (1,694.1) | ||
Total paid | (1,309.8) | (1,764.6) | (2,122.6) | ||
Foreign exchange (gains)/losses | (39.9) | 80.4 | 78.3 | ||
Net losses and LAE reserves, ending balance | 4,313.7 | 3,970.1 | 4,632 | ||
Plus reinsurance recoverable on unpaid losses at the end of the year | 3,298.1 | 3,195.2 | 2,319.8 | ||
Provision for losses and LAE at the end of the year | 7,611.8 | 7,165.3 | 6,951.8 | ||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||||
Net loss and LAE expenses (disposed) (1) | 0 | (818.5) | 0 | ||
Insurance | |||||
Insurance [Abstract] | |||||
Provision for losses and LAE, beginning balance | 1,874.4 | 2,026.1 | |||
Net losses and LAE reserves, beginning balance | 1,874.4 | 2,026.1 | |||
Movement in net provision for losses and LAE for claims incurred: | |||||
Prior years | (179.5) | (35.2) | |||
Losses and LAE payments for claims incurred: | |||||
Net losses and LAE reserves, ending balance | 2,165.3 | 1,874.4 | 2,026.1 | ||
Provision for losses and LAE at the end of the year | 2,165.3 | 1,874.4 | 2,026.1 | ||
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 | 770 | 0 | ||
Losses and LAE payments for claims incurred: | |||||
Plus reinsurance recoverable on unpaid losses at the end of the year | $ 770 | ||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||||
Net loss and LAE expenses (disposed) (1) | $ 770 | $ 770 | $ 0 |
Reserves for Losses and Adjus_4
Reserves for Losses and Adjustment Expenses - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Insurance [Abstract] | |||
Provision for losses and LAE for claims incurred | $ 45.1 | $ (0.9) | $ 59.5 |
Prior years | 45.1 | (0.9) | 59.5 |
Financial Guarantee Insurance Contracts, Premium Received over Contract Period [Line Items] | |||
Prior years | 45.1 | (0.9) | $ 59.5 |
Reinsurance | |||
Insurance [Abstract] | |||
Provision for losses and LAE for claims incurred | 134.4 | 36.1 | |
Prior years | 134.4 | 36.1 | |
Financial Guarantee Insurance Contracts, Premium Received over Contract Period [Line Items] | |||
Prior years | 134.4 | 36.1 | |
Insurance | |||
Insurance [Abstract] | |||
Provision for losses and LAE for claims incurred | (179.5) | (35.2) | |
Prior years | (179.5) | (35.2) | |
Financial Guarantee Insurance Contracts, Premium Received over Contract Period [Line Items] | |||
Prior years | (179.5) | $ (35.2) | |
Crop Re | |||
Insurance [Abstract] | |||
Provision for losses and LAE for claims incurred | (45.1) | ||
Prior years | (45.1) | ||
Financial Guarantee Insurance Contracts, Premium Received over Contract Period [Line Items] | |||
Prior years | $ (45.1) |
Reserves for Losses and Adjus_5
Reserves for Losses and Adjustment Expenses - Reconciliation of Reinsurance Recoverables on Unpaid Losses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Insurance [Abstract] | |||
Adverse development cover reinsurance agreement cover | $ 0 | $ (818.5) | $ 0 |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Reinsurance recoverables on unpaid losses, start of period | 3,195.2 | 2,319.8 | |
Reinsurance recoverables on unpaid losses, end of period | 3,298.1 | 3,195.2 | 2,319.8 |
Deferred Gain on Reinsurance | (58.3) | 0 | 0 |
ADC | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Reinsurance recoverables on unpaid losses, start of period | 2,518.3 | 2,425.2 | 2,319.8 |
Reinsurance recoverables on unpaid losses, end of period | 2,518.3 | 2,425.2 | |
Reinsurance recoverables, premium paid and recognized | 68.1 | 0 | 0 |
Enstar | |||
Insurance [Abstract] | |||
Adverse development cover reinsurance agreement cover | $ 770 | $ 770 | $ 0 |
Reserves for Losses and Adjus_6
Reserves for Losses and Adjustment Expenses Short-duration Insurance Contracts, Claims by Accident Year (Details) | Dec. 31, 2021USD ($)Integer | Dec. 31, 2020USD ($) | 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 | $ 4,484,000,000 | $ 4,266,000,000 | ||||||||
Property Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 1,840,300,000 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | 1,553,000,000 | |||||||||
All outstanding liabilities for 2012 and subsequent years, net of reinsurance | 287,300,000 | |||||||||
All outstanding liabilities before 2012, net of reinsurance | 2,000,000 | |||||||||
Liability for claims and claim adjustment expenses, net of reinsurance | 289,300,000 | 226,800,000 | ||||||||
Casualty Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 1,537,500,000 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | 848,900,000 | |||||||||
All outstanding liabilities for 2012 and subsequent years, net of reinsurance | 688,600,000 | |||||||||
All outstanding liabilities before 2012, net of reinsurance | 37,000,000 | |||||||||
Liability for claims and claim adjustment expenses, net of reinsurance | 725,600,000 | 618,700,000 | ||||||||
Marine, Aviation and Energy Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 2,289,200,000 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | 1,871,900,000 | |||||||||
All outstanding liabilities for 2012 and subsequent years, net of reinsurance | 417,300,000 | |||||||||
All outstanding liabilities before 2012, net of reinsurance | 10,600,000 | |||||||||
Liability for claims and claim adjustment expenses, net of reinsurance | 427,900,000 | 431,400,000 | ||||||||
Financial and Professional Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 1,921,500,000 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | 1,119,300,000 | |||||||||
All outstanding liabilities for 2012 and subsequent years, net of reinsurance | 802,200,000 | |||||||||
All outstanding liabilities before 2012, net of reinsurance | 6,500,000 | |||||||||
Liability for claims and claim adjustment expenses, net of reinsurance | 808,700,000 | 738,500,000 | ||||||||
Property Catastrophe and Other Property Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 2,951,100,000 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | 2,183,600,000 | |||||||||
All outstanding liabilities for 2012 and subsequent years, net of reinsurance | 767,500,000 | |||||||||
All outstanding liabilities before 2012, net of reinsurance | 17,400,000 | |||||||||
Liability for claims and claim adjustment expenses, net of reinsurance | 784,900,000 | 631,000,000 | ||||||||
Casualty Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 1,907,200,000 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | 1,038,200,000 | |||||||||
All outstanding liabilities for 2012 and subsequent years, net of reinsurance | 869,000,000 | |||||||||
All outstanding liabilities before 2012, net of reinsurance | 106,300,000 | |||||||||
Liability for claims and claim adjustment expenses, net of reinsurance | 975,300,000 | 1,084,200,000 | ||||||||
Specialty Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 2,507,600,000 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | 2,049,900,000 | |||||||||
All outstanding liabilities for 2012 and subsequent years, net of reinsurance | 457,700,000 | |||||||||
All outstanding liabilities before 2012, net of reinsurance | 14,600,000 | |||||||||
Liability for claims and claim adjustment expenses, net of reinsurance | 472,300,000 | 535,400,000 | ||||||||
Accident Year 2012 | Property Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 155,600,000 | 154,400,000 | $ 153,800,000 | $ 153,700,000 | $ 154,800,000 | $ 160,600,000 | $ 166,200,000 | $ 167,300,000 | $ 168,600,000 | $ 170,600,000 |
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 0 | |||||||||
Number of Reported Claims | Integer | 6,083 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 155,600,000 | 154,300,000 | 154,300,000 | 154,300,000 | 155,100,000 | 157,600,000 | 153,400,000 | 139,200,000 | 129,600,000 | 41,500,000 |
Accident Year 2012 | Casualty Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 69,300,000 | 71,500,000 | 71,100,000 | 69,200,000 | 67,200,000 | 69,600,000 | 61,700,000 | 70,600,000 | 63,400,000 | 78,600,000 |
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 3,400,000 | |||||||||
Number of Reported Claims | Integer | 3,130 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 65,000,000 | 59,900,000 | 55,200,000 | 50,600,000 | 49,700,000 | 41,300,000 | 30,000,000 | 14,300,000 | 6,700,000 | 1,300,000 |
Accident Year 2012 | Marine, Aviation and Energy Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 308,800,000 | 306,100,000 | 311,200,000 | 316,500,000 | 328,200,000 | 332,100,000 | 346,400,000 | 325,800,000 | 306,200,000 | 268,800,000 |
Incurred but Not Reported (IBNR) Claims Liability, Net | $ (6,100,000) | |||||||||
Number of Reported Claims | Integer | 3,823 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 284,800,000 | 276,900,000 | 274,700,000 | 273,800,000 | 250,900,000 | 240,000,000 | 211,200,000 | 174,900,000 | 132,400,000 | 51,500,000 |
Accident Year 2012 | Financial and Professional Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 104,500,000 | 103,400,000 | 96,500,000 | 101,700,000 | 89,600,000 | 94,000,000 | 97,000,000 | 93,600,000 | 89,900,000 | 88,500,000 |
Incurred but Not Reported (IBNR) Claims Liability, Net | $ (4,400,000) | |||||||||
Number of Reported Claims | Integer | 579 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 92,800,000 | 91,300,000 | 85,300,000 | 80,300,000 | 70,600,000 | 65,400,000 | 59,400,000 | 50,800,000 | 39,600,000 | 22,800,000 |
Accident Year 2012 | Property Catastrophe and Other Property Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 248,600,000 | 264,900,000 | 261,600,000 | 271,700,000 | 279,200,000 | 282,200,000 | 278,800,000 | 286,200,000 | 303,100,000 | 280,200,000 |
Incurred but Not Reported (IBNR) Claims Liability, Net | $ (3,100,000) | |||||||||
Number of Reported Claims | Integer | 679 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 248,600,000 | 247,900,000 | 242,200,000 | 232,100,000 | 227,600,000 | 216,400,000 | 208,900,000 | 188,800,000 | 135,700,000 | 35,600,000 |
Accident Year 2012 | Casualty Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 196,200,000 | 240,000,000 | 245,100,000 | 242,600,000 | 233,700,000 | 232,800,000 | 236,000,000 | 244,600,000 | 233,300,000 | 235,100,000 |
Incurred but Not Reported (IBNR) Claims Liability, Net | $ (27,100,000) | |||||||||
Number of Reported Claims | Integer | 1,813 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 165,400,000 | 162,200,000 | 144,400,000 | 134,700,000 | 117,800,000 | 96,600,000 | 65,500,000 | 42,100,000 | 17,800,000 | 2,200,000 |
Accident Year 2012 | Specialty Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 156,300,000 | 165,600,000 | 166,600,000 | 169,100,000 | 172,400,000 | 171,700,000 | 173,300,000 | 188,800,000 | 199,500,000 | 176,200,000 |
Incurred but Not Reported (IBNR) Claims Liability, Net | $ (3,900,000) | |||||||||
Number of Reported Claims | Integer | 641 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 156,100,000 | 153,400,000 | 152,900,000 | 150,100,000 | 148,800,000 | 143,500,000 | 138,200,000 | 128,100,000 | 93,000,000 | $ 24,600,000 |
Accident Year 2013 | Property Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 110,700,000 | 112,800,000 | 112,600,000 | 112,300,000 | 114,300,000 | 113,300,000 | 117,500,000 | 117,900,000 | 130,800,000 | |
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 300,000 | |||||||||
Number of Reported Claims | Integer | 5,764 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 110,000,000 | 111,200,000 | 110,900,000 | 109,100,000 | 106,400,000 | 101,700,000 | 89,700,000 | 76,400,000 | 39,200,000 | |
Accident Year 2013 | Casualty Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 100,900,000 | 104,300,000 | 105,700,000 | 105,400,000 | 104,300,000 | 121,300,000 | 115,800,000 | 117,400,000 | 134,000,000 | |
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 7,200,000 | |||||||||
Number of Reported Claims | Integer | 3,367 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 88,000,000 | 87,800,000 | 85,800,000 | 81,500,000 | 69,000,000 | 53,400,000 | 39,800,000 | 26,000,000 | 2,300,000 | |
Accident Year 2013 | Marine, Aviation and Energy Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 343,300,000 | 340,200,000 | 345,200,000 | 346,600,000 | 333,000,000 | 325,900,000 | 342,500,000 | 333,800,000 | 321,000,000 | |
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 2,800,000 | |||||||||
Number of Reported Claims | Integer | 4,178 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 311,000,000 | 310,800,000 | 300,600,000 | 284,500,000 | 264,800,000 | 235,400,000 | 205,000,000 | 131,700,000 | 41,500,000 | |
Accident Year 2013 | Financial and Professional Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 102,800,000 | 97,600,000 | 90,900,000 | 91,900,000 | 100,800,000 | 101,700,000 | 105,000,000 | 100,600,000 | 106,100,000 | |
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 2,200,000 | |||||||||
Number of Reported Claims | Integer | 586 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 81,800,000 | 78,300,000 | 75,000,000 | 72,800,000 | 64,100,000 | 65,600,000 | 31,300,000 | 21,200,000 | 8,100,000 | |
Accident Year 2013 | Property Catastrophe and Other Property Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 164,700,000 | 168,200,000 | 171,000,000 | 173,800,000 | 177,100,000 | 178,500,000 | 189,700,000 | 199,900,000 | 217,400,000 | |
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 600,000 | |||||||||
Number of Reported Claims | Integer | 832 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 161,200,000 | 161,200,000 | 166,800,000 | 165,200,000 | 163,700,000 | 159,000,000 | 146,900,000 | 98,800,000 | 34,500,000 | |
Accident Year 2013 | Casualty Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 165,800,000 | 201,600,000 | 204,400,000 | 201,700,000 | 206,600,000 | 223,600,000 | 226,300,000 | 230,800,000 | 215,600,000 | |
Incurred but Not Reported (IBNR) Claims Liability, Net | $ (6,800,000) | |||||||||
Number of Reported Claims | Integer | 1,691 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 146,300,000 | 139,900,000 | 127,800,000 | 115,000,000 | 93,100,000 | 65,100,000 | 42,800,000 | 15,900,000 | 3,400,000 | |
Accident Year 2013 | Specialty Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 104,800,000 | 111,000,000 | 114,400,000 | 114,800,000 | 118,600,000 | 119,400,000 | 131,300,000 | 139,600,000 | 144,400,000 | |
Incurred but Not Reported (IBNR) Claims Liability, Net | $ (500,000) | |||||||||
Number of Reported Claims | Integer | 577 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 100,700,000 | 101,700,000 | 101,900,000 | 101,000,000 | 101,000,000 | 94,000,000 | 86,900,000 | 70,900,000 | $ 25,000,000 | |
Accident Year 2014 | Property Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 133,400,000 | 132,400,000 | 133,000,000 | 134,600,000 | 135,300,000 | 134,700,000 | 157,900,000 | 166,100,000 | ||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 0 | |||||||||
Number of Reported Claims | Integer | 9,973 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 132,300,000 | 131,000,000 | 129,800,000 | 128,300,000 | 124,200,000 | 114,500,000 | 86,900,000 | 40,500,000 | ||
Accident Year 2014 | Casualty Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 130,400,000 | 138,800,000 | 141,800,000 | 137,700,000 | 130,500,000 | 140,300,000 | 128,400,000 | 146,200,000 | ||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 5,700,000 | |||||||||
Number of Reported Claims | Integer | 3,865 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 110,100,000 | 111,400,000 | 98,400,000 | 74,000,000 | 60,400,000 | 33,100,000 | 13,500,000 | 2,700,000 | ||
Accident Year 2014 | Marine, Aviation and Energy Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 312,500,000 | 302,200,000 | 313,000,000 | 306,000,000 | 310,500,000 | 298,900,000 | 314,000,000 | 309,800,000 | ||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ (5,900,000) | |||||||||
Number of Reported Claims | Integer | 4,043 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 275,600,000 | 263,100,000 | 250,900,000 | 232,700,000 | 210,000,000 | 189,300,000 | 116,900,000 | 53,600,000 | ||
Accident Year 2014 | Financial and Professional Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 123,700,000 | 121,700,000 | 120,900,000 | 131,900,000 | 120,600,000 | 130,200,000 | 131,600,000 | 135,700,000 | ||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ (2,700,000) | |||||||||
Number of Reported Claims | Integer | 800 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 104,200,000 | 92,600,000 | 85,900,000 | 80,000,000 | 72,500,000 | 53,800,000 | 30,900,000 | 3,000,000 | ||
Accident Year 2014 | Property Catastrophe and Other Property Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 143,900,000 | 144,900,000 | 144,900,000 | 149,800,000 | 149,500,000 | 160,900,000 | 176,800,000 | 189,900,000 | ||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 800,000 | |||||||||
Number of Reported Claims | Integer | 900 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 141,500,000 | 141,300,000 | 139,600,000 | 140,900,000 | 137,000,000 | 127,100,000 | 100,700,000 | 37,400,000 | ||
Accident Year 2014 | Casualty Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 160,500,000 | 202,900,000 | 207,100,000 | 204,500,000 | 211,100,000 | 217,600,000 | 209,000,000 | 206,200,000 | ||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ (14,800,000) | |||||||||
Number of Reported Claims | Integer | 1,805 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 135,700,000 | 125,700,000 | 107,700,000 | 86,700,000 | 60,300,000 | 37,800,000 | 13,800,000 | 2,500,000 | ||
Accident Year 2014 | Specialty Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 114,900,000 | 120,100,000 | 124,300,000 | 125,800,000 | 122,900,000 | 132,100,000 | 140,100,000 | 152,400,000 | ||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 600,000 | |||||||||
Number of Reported Claims | Integer | 619 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 106,200,000 | 104,200,000 | 102,600,000 | 99,700,000 | 89,300,000 | 81,300,000 | 56,500,000 | $ 16,600,000 | ||
Accident Year 2015 | Property Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 202,200,000 | 201,500,000 | 204,600,000 | 204,200,000 | 201,800,000 | 207,400,000 | 241,800,000 | |||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 2,000,000 | |||||||||
Number of Reported Claims | Integer | 11,598 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 197,800,000 | 196,400,000 | 198,000,000 | 181,300,000 | 172,100,000 | 144,100,000 | 57,500,000 | |||
Accident Year 2015 | Casualty Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 227,700,000 | 236,700,000 | 238,400,000 | 205,500,000 | 187,600,000 | 225,100,000 | 205,100,000 | |||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 13,500,000 | |||||||||
Number of Reported Claims | Integer | 4,736 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 181,400,000 | 169,200,000 | 139,700,000 | 93,500,000 | 57,000,000 | 17,200,000 | 3,200,000 | |||
Accident Year 2015 | Marine, Aviation and Energy Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 321,400,000 | 313,000,000 | 310,400,000 | 286,800,000 | 282,600,000 | 300,200,000 | 297,100,000 | |||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ (4,600,000) | |||||||||
Number of Reported Claims | Integer | 4,074 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 280,600,000 | 257,900,000 | 222,500,000 | 194,500,000 | 174,600,000 | 123,400,000 | 44,900,000 | |||
Accident Year 2015 | Financial and Professional Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 185,900,000 | 186,700,000 | 191,900,000 | 190,600,000 | 186,400,000 | 176,300,000 | 175,000,000 | |||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ (400,000) | |||||||||
Number of Reported Claims | Integer | 1,080 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 146,200,000 | 139,600,000 | 110,400,000 | 89,700,000 | 70,300,000 | 43,600,000 | 13,800,000 | |||
Accident Year 2015 | Property Catastrophe and Other Property Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 179,800,000 | 171,900,000 | 171,800,000 | 156,600,000 | 177,200,000 | 187,300,000 | 214,600,000 | |||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 11,700,000 | |||||||||
Number of Reported Claims | Integer | 1,051 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 162,200,000 | 158,600,000 | 156,200,000 | 139,200,000 | 127,100,000 | 95,000,000 | 35,800,000 | |||
Accident Year 2015 | Casualty Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 160,600,000 | 208,000,000 | 212,000,000 | 214,200,000 | 211,700,000 | 202,200,000 | 195,400,000 | |||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ (13,600,000) | |||||||||
Number of Reported Claims | Integer | 1,964 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 123,300,000 | 109,000,000 | 89,700,000 | 65,700,000 | 38,500,000 | 18,000,000 | 3,500,000 | |||
Accident Year 2015 | Specialty Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 149,000,000 | 152,800,000 | 157,300,000 | 159,000,000 | 164,500,000 | 170,000,000 | 165,900,000 | |||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 4,700,000 | |||||||||
Number of Reported Claims | Integer | 777 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 134,000,000 | 134,000,000 | 130,900,000 | 122,000,000 | 104,100,000 | 56,400,000 | $ 17,700,000 | |||
Accident Year 2016 | Property Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 249,200,000 | 248,400,000 | 246,900,000 | 245,500,000 | 250,700,000 | 239,900,000 | ||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 1,600,000 | |||||||||
Number of Reported Claims | Integer | 10,785 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 239,000,000 | 233,800,000 | 224,800,000 | 202,500,000 | 169,700,000 | 67,300,000 | ||||
Accident Year 2016 | Casualty Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 233,800,000 | 203,100,000 | 192,000,000 | 185,300,000 | 190,000,000 | 218,900,000 | ||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 54,100,000 | |||||||||
Number of Reported Claims | Integer | 4,753 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 134,800,000 | 111,000,000 | 83,500,000 | 40,700,000 | 23,100,000 | 4,200,000 | ||||
Accident Year 2016 | Marine, Aviation and Energy Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 221,700,000 | 219,400,000 | 229,600,000 | 229,400,000 | 230,800,000 | 260,800,000 | ||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 200,000 | |||||||||
Number of Reported Claims | Integer | 4,429 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 199,000,000 | 191,200,000 | 164,300,000 | 142,800,000 | 82,700,000 | 30,900,000 | ||||
Accident Year 2016 | Financial and Professional Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 185,700,000 | 186,300,000 | 203,100,000 | 217,400,000 | 212,600,000 | 191,900,000 | ||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 13,500,000 | |||||||||
Number of Reported Claims | Integer | 1,255 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 136,000,000 | 126,600,000 | 130,600,000 | 102,500,000 | 71,400,000 | 15,200,000 | ||||
Accident Year 2016 | Property Catastrophe and Other Property Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 230,400,000 | 244,900,000 | 249,200,000 | 271,000,000 | 272,700,000 | 272,600,000 | ||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ (15,200,000) | |||||||||
Number of Reported Claims | Integer | 1,308 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 236,700,000 | 230,400,000 | 217,100,000 | 206,000,000 | 164,700,000 | 57,200,000 | ||||
Accident Year 2016 | Casualty Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 213,500,000 | 264,700,000 | 257,200,000 | 247,000,000 | 247,300,000 | 234,700,000 | ||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ (2,100,000) | |||||||||
Number of Reported Claims | Integer | 2,056 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 148,000,000 | 127,000,000 | 96,700,000 | 64,500,000 | 33,700,000 | 9,300,000 | ||||
Accident Year 2016 | Specialty Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 214,700,000 | 225,000,000 | 230,000,000 | 237,700,000 | 239,900,000 | 238,800,000 | ||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ (5,400,000) | |||||||||
Number of Reported Claims | Integer | 937 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 203,800,000 | 193,800,000 | 183,600,000 | 165,500,000 | 150,900,000 | $ 58,700,000 | ||||
Accident Year 2017 | Property Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 254,100,000 | 254,900,000 | 253,500,000 | 260,300,000 | 297,500,000 | |||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 10,300,000 | |||||||||
Number of Reported Claims | Integer | 9,693 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 248,400,000 | 244,100,000 | 223,200,000 | 189,900,000 | 97,000,000 | |||||
Accident Year 2017 | Casualty Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 201,600,000 | 199,300,000 | 180,400,000 | 176,300,000 | 182,900,000 | |||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 18,900,000 | |||||||||
Number of Reported Claims | Integer | 5,416 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 116,800,000 | 98,400,000 | 53,400,000 | 23,200,000 | 3,600,000 | |||||
Accident Year 2017 | Marine, Aviation and Energy Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 209,800,000 | 214,900,000 | 207,400,000 | 201,100,000 | 210,700,000 | |||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 37,900,000 | |||||||||
Number of Reported Claims | Integer | 6,041 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 156,900,000 | 168,800,000 | 140,600,000 | 97,800,000 | 40,300,000 | |||||
Accident Year 2017 | Financial and Professional Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 188,600,000 | 189,400,000 | 188,900,000 | 184,100,000 | 207,700,000 | |||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 12,800,000 | |||||||||
Number of Reported Claims | Integer | 1,739 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 137,200,000 | 117,500,000 | 83,600,000 | 51,400,000 | 27,200,000 | |||||
Accident Year 2017 | Property Catastrophe and Other Property Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 481,200,000 | 505,000,000 | 516,200,000 | 534,500,000 | 557,700,000 | |||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ (3,800,000) | |||||||||
Number of Reported Claims | Integer | 1,956 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 437,600,000 | 440,800,000 | 416,600,000 | 357,400,000 | 123,200,000 | |||||
Accident Year 2017 | Casualty Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 194,200,000 | 254,100,000 | 254,900,000 | 244,000,000 | 246,600,000 | |||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 3,400,000 | |||||||||
Number of Reported Claims | Integer | 2,005 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 117,300,000 | 97,900,000 | 59,200,000 | 30,700,000 | 8,900,000 | |||||
Accident Year 2017 | Specialty Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 343,200,000 | 364,400,000 | 376,000,000 | 392,400,000 | 379,700,000 | |||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ (6,100,000) | |||||||||
Number of Reported Claims | Integer | 1,328 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 317,100,000 | 306,300,000 | 271,000,000 | 238,800,000 | $ 94,600,000 | |||||
Accident Year 2018 | Property Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 190,400,000 | 191,900,000 | 208,200,000 | 205,500,000 | ||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 400,000 | |||||||||
Number of Reported Claims | Integer | 8,171 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 181,800,000 | 185,000,000 | 162,900,000 | 62,600,000 | ||||||
Accident Year 2018 | Casualty Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 135,500,000 | 137,900,000 | 126,800,000 | 124,000,000 | ||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 22,700,000 | |||||||||
Number of Reported Claims | Integer | 5,419 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 69,700,000 | 44,100,000 | 28,200,000 | 3,200,000 | ||||||
Accident Year 2018 | Marine, Aviation and Energy Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 219,900,000 | 209,400,000 | 208,500,000 | 171,400,000 | ||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ (2,400,000) | |||||||||
Number of Reported Claims | Integer | 5,178 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 155,700,000 | 133,400,000 | 105,100,000 | 26,900,000 | ||||||
Accident Year 2018 | Financial and Professional Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 152,700,000 | 156,900,000 | 174,600,000 | 158,500,000 | ||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 6,000,000 | |||||||||
Number of Reported Claims | Integer | 4,617 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 117,100,000 | 101,600,000 | 75,700,000 | 21,000,000 | ||||||
Accident Year 2018 | Property Catastrophe and Other Property Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 403,500,000 | 389,500,000 | 394,200,000 | 343,100,000 | ||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 22,200,000 | |||||||||
Number of Reported Claims | Integer | 1,808 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 345,400,000 | 325,700,000 | 311,600,000 | 122,800,000 | ||||||
Accident Year 2018 | Casualty Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 190,600,000 | 267,000,000 | 259,800,000 | 230,100,000 | ||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 24,700,000 | |||||||||
Number of Reported Claims | Integer | 1,766 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 104,900,000 | 73,700,000 | 33,700,000 | 7,200,000 | ||||||
Accident Year 2018 | Specialty Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 391,100,000 | 394,300,000 | 396,400,000 | 397,400,000 | ||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 13,000,000 | |||||||||
Number of Reported Claims | Integer | 1,399 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 331,100,000 | 314,600,000 | 280,800,000 | $ 27,200,000 | ||||||
Accident Year 2019 | Property Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 122,600,000 | 132,100,000 | 128,500,000 | |||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 0 | |||||||||
Number of Reported Claims | Integer | 6,812 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 103,400,000 | 92,600,000 | 49,600,000 | |||||||
Accident Year 2019 | Casualty Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 127,900,000 | 148,800,000 | 126,500,000 | |||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 4,700,000 | |||||||||
Number of Reported Claims | Integer | 5,104 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 70,400,000 | 18,600,000 | 6,400,000 | |||||||
Accident Year 2019 | Marine, Aviation and Energy Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 146,000,000 | 154,100,000 | 146,500,000 | |||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 3,000,000 | |||||||||
Number of Reported Claims | Integer | 3,575 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 118,100,000 | 72,800,000 | 33,600,000 | |||||||
Accident Year 2019 | Financial and Professional Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 236,000,000 | 263,800,000 | 250,500,000 | |||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 52,800,000 | |||||||||
Number of Reported Claims | Integer | 23,894 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 138,400,000 | 87,300,000 | 27,400,000 | |||||||
Accident Year 2019 | Property Catastrophe and Other Property Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 270,600,000 | 272,300,000 | 262,800,000 | |||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 3,600,000 | |||||||||
Number of Reported Claims | Integer | 1,395 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 205,600,000 | 153,000,000 | 28,200,000 | |||||||
Accident Year 2019 | Casualty Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 179,200,000 | 256,600,000 | 236,200,000 | |||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 52,300,000 | |||||||||
Number of Reported Claims | Integer | 1,300 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 61,400,000 | 36,500,000 | 9,200,000 | |||||||
Accident Year 2019 | Specialty Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 495,400,000 | 498,900,000 | 476,100,000 | |||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 49,200,000 | |||||||||
Number of Reported Claims | Integer | 1,519 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 402,100,000 | 382,700,000 | $ 274,300,000 | |||||||
Accident Year 2020 | Property Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 211,200,000 | 206,700,000 | ||||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 36,200,000 | |||||||||
Number of Reported Claims | 7,295 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 125,500,000 | 61,900,000 | ||||||||
Accident Year 2020 | Casualty Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 133,900,000 | 134,900,000 | ||||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 94,300,000 | |||||||||
Number of Reported Claims | 3,570 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 3,200,000 | 0 | ||||||||
Accident Year 2020 | Marine, Aviation and Energy Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 111,800,000 | 111,000,000 | ||||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 12,000,000 | |||||||||
Number of Reported Claims | Integer | 4,128 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 66,700,000 | 28,500,000 | ||||||||
Accident Year 2020 | Financial and Professional Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 352,000,000 | 351,000,000 | ||||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 181,700,000 | |||||||||
Number of Reported Claims | Integer | 105,317 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 121,900,000 | 48,000,000 | ||||||||
Accident Year 2020 | Property Catastrophe and Other Property Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 366,900,000 | 322,900,000 | ||||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 20,100,000 | |||||||||
Number of Reported Claims | Integer | 1,333 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 169,200,000 | 42,400,000 | ||||||||
Accident Year 2020 | Casualty Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 237,600,000 | 256,400,000 | ||||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 177,800,000 | |||||||||
Number of Reported Claims | Integer | 753 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 28,000,000 | 9,200,000 | ||||||||
Accident Year 2020 | Specialty Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 382,400,000 | 415,600,000 | ||||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 66,700,000 | |||||||||
Number of Reported Claims | Integer | 1,400 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 270,400,000 | $ 213,100,000 | ||||||||
Accident Year 2021 | Property Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 210,900,000 | |||||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 88,800,000 | |||||||||
Number of Reported Claims | 4,978 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 59,200,000 | |||||||||
Accident Year 2021 | Casualty Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 176,500,000 | |||||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 150,500,000 | |||||||||
Number of Reported Claims | 2,707 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 9,500,000 | |||||||||
Accident Year 2021 | Marine, Aviation and Energy Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 94,000,000 | |||||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 44,700,000 | |||||||||
Number of Reported Claims | Integer | 2,108 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 23,500,000 | |||||||||
Accident Year 2021 | Financial and Professional Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 289,600,000 | |||||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 221,500,000 | |||||||||
Number of Reported Claims | Integer | 31,311 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 43,700,000 | |||||||||
Accident Year 2021 | Property Catastrophe and Other Property Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 461,500,000 | |||||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 198,600,000 | |||||||||
Number of Reported Claims | Integer | 1,005 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 75,600,000 | |||||||||
Accident Year 2021 | Casualty Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 209,000,000 | |||||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 177,000,000 | |||||||||
Number of Reported Claims | Integer | 355 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 7,900,000 | |||||||||
Accident Year 2021 | Specialty Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 155,800,000 | |||||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 106,100,000 | |||||||||
Number of Reported Claims | Integer | 1,020 | |||||||||
Cumulative paid claims and allocated claim adjustment expense, Net | $ 28,400,000 |
Reserves for Losses and Adjus_7
Reserves for Losses and Adjustment Expenses Short-duration insurance contracts - Reconciliation of Claims Development (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liability for claims and claim adjustment expenses, net of reinsurance | $ 4,484 | $ 4,266 | ||
Reinsurance recoverable on unpaid losses | 3,298.1 | 3,195.2 | ||
Unallocated claims incurred | 56.6 | 50.3 | ||
Carbon syndicate reserves | 1 | 0 | ||
Other | 0.2 | 0.5 | ||
Liability for unpaid claims and claim adjustment expense, aggregate reconciling items | (170.3) | (295.9) | ||
Losses and loss adjustment expenses | 7,611.8 | 7,165.3 | $ 6,951.8 | $ 7,074.2 |
Property Insurance | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liability for claims and claim adjustment expenses, net of reinsurance | 289.3 | 226.8 | ||
Casualty Insurance | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liability for claims and claim adjustment expenses, net of reinsurance | 725.6 | 618.7 | ||
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 | 427.9 | 431.4 | ||
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 | 808.7 | 738.5 | ||
Insurance lines | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liability for claims and claim adjustment expenses, net of reinsurance | 2,251.5 | 2,015.4 | ||
Reinsurance recoverable on unpaid losses | 2,117.4 | 2,140.3 | ||
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 | 784.9 | 631 | ||
Casualty Reinsurance | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liability for claims and claim adjustment expenses, net of reinsurance | 975.3 | 1,084.2 | ||
Specialty Reinsurance | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liability for claims and claim adjustment expenses, net of reinsurance | 472.3 | 535.4 | ||
Reinsurance lines | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liability for claims and claim adjustment expenses, net of reinsurance | 2,232.5 | 2,250.6 | ||
Reinsurance recoverable on unpaid losses | 1,180.7 | 1,054.9 | ||
Insurance lines other than short-duration | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Other reinsurance balances recoverable | (286.4) | (346.7) | ||
Losses and loss adjustment expenses | $ 58.3 | $ 0 |
Reserves for Losses and Adjus_8
Reserves for Losses and Adjustment Expenses Short-duration Contracts - Historical Claims Duration (Details) | Dec. 31, 2021 |
Insurance | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Average Annual Percentage Payout of Incurred Claims, Net of Reinsurance, Year One | 16.10% |
Average Annual Percentage Payout of Incurred Claims, Net of Reinsurance, Year Two | 25.70% |
Average Annual Percentage Payout of Incurred Claims, Net of Reinsurance, Year Three | 17.20% |
Average Annual Percentage Payout of Incurred Claims, Net of Reinsurance, Year Four | 11.90% |
Average Annual Percentage Payout of Incurred Claims, Net of Reinsurance, Year Five | 7.40% |
Average Annual Percentage Payout of Incurred Claims, Net of Reinsurance, Year Six | 6.70% |
Average Annual Percentage Payout of Incurred Claims, Net of Reinsurance, Year Seven | 4.50% |
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 | 1.30% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year Ten | 2.50% |
Reinsurance | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Average Annual Percentage Payout of Incurred Claims, Net of Reinsurance, Year One | 18.10% |
Average Annual Percentage Payout of Incurred Claims, Net of Reinsurance, Year Two | 30.90% |
Average Annual Percentage Payout of Incurred Claims, Net of Reinsurance, Year Three | 15.30% |
Average Annual Percentage Payout of Incurred Claims, Net of Reinsurance, Year Four | 9.70% |
Average Annual Percentage Payout of Incurred Claims, Net of Reinsurance, Year Five | 8.30% |
Average Annual Percentage Payout of Incurred Claims, Net of Reinsurance, Year Six | 5.60% |
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 | 2.70% |
Average Annual Percentage Payout of Incurred Claims, Net of Reinsurance, Year Nine | 2.60% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year Ten | 1.10% |
Income Taxes - Summary of Total
Income Taxes - Summary of Total Income Tax (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Income Tax Disclosure [Abstract] | |||||
Income tax expense/(benefit) allocated to net income | $ 5.3 | $ 18.4 | [1] | $ 22.9 | [1] |
Income tax expense allocated to other comprehensive income | 0.3 | 0.5 | 11.2 | ||
Total income tax expense/(benefit) | $ 5.6 | $ 18.9 | $ 34.1 | ||
[1] | Net earned premium has been corrected for immaterial errors in relation to gross written premium and reinsurance premium payables for periods 2020 and prior. Net realized and unrealized exchange gains/(losses) and change in foreign currency translation adjustment have been corrected to account for the correction of foreign exchange movements on underwriting premium receivables which should have been matched with an underwriting premium receivable payment for periods 2020 and prior. Income tax expense has been corrected for historic current and deferred income taxes on Aspen U.K’s branches due to the deficiency in the completeness and accuracy of branch data and associated application thereof in respect of local tax rules in various jurisdictions. Total revenues, net income/(loss) and other comprehensive income/(loss) before and after income taxes have been corrected as a result of the corrections mentioned above for periods 2020 and 2019. Refer to Note 26 in these consolidated financial statements, “Correction of Immaterial Errors” for further details. |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Income Tax Examination [Line Items] | |||||
(Loss) before tax, Non-U.S. | $ (67.9) | $ 12.8 | $ (5.5) | ||
(Loss) before tax, U.S. | 5 | 19.7 | (60) | ||
Income (loss) from operations before income taxes | 35.1 | (38) | [1] | (216.6) | [1] |
Current tax (benefit)/expense, Non-U.S. | 2.7 | 10.3 | 4 | ||
Current tax (benefit)/expense, U.S. | 5.8 | 8.9 | 1 | ||
Current tax (benefit)/expense, Total | 8.5 | 19.3 | (1.7) | ||
Deferred tax (benefit), Non-U.S. | (2.9) | (0.9) | 0.9 | ||
Deferred tax (benefit), U.S. | 0 | 0 | 6.5 | ||
Deferred tax, Total | (3.2) | (0.9) | 24.7 | ||
Total tax expense/(benefit), Non-U.S. | (0.2) | 9.4 | 4.9 | ||
Total tax expense/(benefit), U.S. | 5.8 | 8.9 | 7.4 | ||
Total tax expense/(benefit) | 5.3 | 18.4 | [1] | 22.9 | [1] |
Current tax expenses (benefit) related to prior year | 5.8 | ||||
Deferred tax benefit, unrealized gain on investments | 0 | ||||
Previously Reported | |||||
Income Tax Examination [Line Items] | |||||
Total tax expense/(benefit), Non-U.S. | 5.3 | ||||
Total tax expense/(benefit) | 8.6 | ||||
Deferred tax benefit, unrealized gain on investments | (5.7) | ||||
Bermuda | |||||
Income Tax Examination [Line Items] | |||||
(Loss) before tax, Non-U.S. | 22.9 | (81.5) | (107.6) | ||
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. | 75.1 | 11 | (43.5) | ||
Current tax (benefit)/expense, Non-U.S. | 0 | 0.1 | (6.7) | ||
Deferred tax (benefit), Non-U.S. | (0.3) | 0 | 17.3 | ||
Total tax expense/(benefit), Non-U.S. | $ (0.3) | $ 0.1 | $ 10.6 | ||
[1] | Net earned premium has been corrected for immaterial errors in relation to gross written premium and reinsurance premium payables for periods 2020 and prior. Net realized and unrealized exchange gains/(losses) and change in foreign currency translation adjustment have been corrected to account for the correction of foreign exchange movements on underwriting premium receivables which should have been matched with an underwriting premium receivable payment for periods 2020 and prior. Income tax expense has been corrected for historic current and deferred income taxes on Aspen U.K’s branches due to the deficiency in the completeness and accuracy of branch data and associated application thereof in respect of local tax rules in various jurisdictions. Total revenues, net income/(loss) and other comprehensive income/(loss) before and after income taxes have been corrected as a result of the corrections mentioned above for periods 2020 and 2019. Refer to Note 26 in these consolidated financial statements, “Correction of Immaterial Errors” for further details. |
Income Taxes - Income Tax Recon
Income Taxes - Income Tax Reconciliation (Details) - USD ($) $ in Millions | Apr. 01, 2023 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Operating Loss Carryforwards [Line Items] | ||||||
Income tax benefit at statutory tax rate of zero percent | $ 0 | $ 0 | $ 0 | |||
Overseas statutory tax rates differential | (0.9) | (3.8) | (21.2) | |||
Base erosion and anti-abuse tax (BEAT) expense | 6.1 | 4.3 | 0.3 | |||
Prior year adjustments | 0.5 | (25) | (1.7) | |||
Change in valuation allowance (2) | 9.6 | 40.8 | 42.6 | |||
Impact of unrecognized tax benefits | 0 | 0 | 0 | |||
Restricted foreign tax credits | 0 | 0 | 1.5 | |||
Australian non-resident withholding tax | 0.6 | 1 | 1 | |||
Share-based payments | 0 | 0 | (0.6) | |||
Foreign exchange | (1.5) | 0.2 | 0 | |||
Non-deductible expenses | 2.4 | 4.7 | 0 | |||
Non-taxable items | 0 | 0 | (0.1) | |||
Impact of changes in statutory tax rates (5) | (11.5) | (3.8) | 1.1 | |||
Total tax expense/(benefit) | 5.3 | $ 18.4 | [1] | $ 22.9 | [1] | |
U.K. | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
U.K. tax change effect | $ 11.3 | |||||
U. K. corporate tax rate | 19.00% | |||||
U.K. | Forecast | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
U. K. corporate tax rate | 25.00% | |||||
Lloyd's syndicate | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Valuation allowance, associated losses | $ 5.5 | |||||
Lloyd's and ABL | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Valuation allowance, associated losses | 9.1 | |||||
U.S. operations | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Valuation allowance, associated losses | (5) | |||||
Valuation allowance, use of existing net operating losses | $ 15.5 | |||||
[1] | Net earned premium has been corrected for immaterial errors in relation to gross written premium and reinsurance premium payables for periods 2020 and prior. Net realized and unrealized exchange gains/(losses) and change in foreign currency translation adjustment have been corrected to account for the correction of foreign exchange movements on underwriting premium receivables which should have been matched with an underwriting premium receivable payment for periods 2020 and prior. Income tax expense has been corrected for historic current and deferred income taxes on Aspen U.K’s branches due to the deficiency in the completeness and accuracy of branch data and associated application thereof in respect of local tax rules in various jurisdictions. Total revenues, net income/(loss) and other comprehensive income/(loss) before and after income taxes have been corrected as a result of the corrections mentioned above for periods 2020 and 2019. Refer to Note 26 in these consolidated financial statements, “Correction of Immaterial Errors” for further details. |
Income Taxes - Tax Effects of D
Income Taxes - Tax Effects of Deferred Tax Assets and Deferred Tax Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax Disclosure [Abstract] | ||
Operating loss carryforwards | $ 170.2 | $ 147.8 |
Insurance reserves: Losses and loss adjustment expenses | 16.7 | 12.2 |
Accrued expenses | 4.6 | 6.4 |
Foreign tax credit carryforwards | 20.2 | 16.7 |
Unearned premiums | 28.3 | 24.5 |
Office properties and equipment | 15.1 | 12.7 |
Operating lease liability | 19.2 | 17.9 |
Other temporary differences | 3.2 | 2.5 |
Total deferred tax assets | 277.5 | 240.7 |
Less valuation allowance | (225.9) | (187.1) |
Deferred tax assets, net of valuation allowance | 51.6 | 53.6 |
Unrealized (gains) on investments | (2.5) | (8.4) |
Intangible assets | (2.8) | (2.7) |
Deferred policy acquisition costs | (28.6) | (33.3) |
Operating lease assets | (10.6) | (12.5) |
Deferred Tax Liabilities, GAAP differences | 8.3 | 0 |
Other temporary differences | (1.6) | (1.9) |
Total deferred tax (liabilities) | (54.4) | (58.8) |
Deferred tax liabilities, net | $ (2.8) | $ (5.2) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes [Line Items] | ||
United States corporate tax at a rate | 21.00% | |
Increase (decrease) in valuation allowance | $ 38.8 | $ 37.9 |
Less valuation allowance | 225.9 | 187.1 |
Deferred Tax Liabilities, Net | 2.8 | 5.2 |
Deferred Tax Assets, Gross | 277.5 | 240.7 |
Lloyd's | U.K. | ||
Income Taxes [Line Items] | ||
Deferred tax losses, operating loss carryforward | 66.2 | 57.9 |
Other juridictions | U.K. | ||
Income Taxes [Line Items] | ||
Deferred tax losses, operating loss carryforward | 103.9 | 46.8 |
U.K. operating companies | ||
Income Taxes [Line Items] | ||
Deferred tax liabilities and assets | 48.1 | |
Swiss branches of the UK operating companies | ||
Income Taxes [Line Items] | ||
Deferred Tax Liabilities, Net | 5.4 | |
Other Comprehensive Income | U.K. | ||
Income Taxes [Line Items] | ||
Less valuation allowance | 27.5 | 4.8 |
Internal Revenue Service (IRS) | ||
Income Taxes [Line Items] | ||
Net operating loss carryforwards | 443.1 | 526.4 |
Operating loss carryforwards, remaining | 443.1 | |
Operating loss carryforwards, subject to expiration date | 443.1 | |
Charitable contribution carryforwards | 0.1 | 1 |
Less valuation allowance | 119.7 | 119.2 |
Internal Revenue Service (IRS) | Aspen U.K. | ||
Income Taxes [Line Items] | ||
Operating loss carryforwards, subject to s382 limitation | 6.5 | |
Internal Revenue Service (IRS) | U.S. operating subsidiaries | ||
Income Taxes [Line Items] | ||
Operating loss carryforwards, subject to s382 limitation | $ 20.8 | |
Internal Revenue Service (IRS) | Minimum | ||
Income Taxes [Line Items] | ||
Operating loss carryforwards, date of expiration | 2031 | |
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 | 19.00% | |
Net operating loss carryforwards | $ 168.9 | 101.8 |
Operating loss carryforwards, remaining | 20.2 | 16.7 |
Capital loss carryforwards | 3.8 | |
Less valuation allowance | $ 88.7 | 58.6 |
Bermuda | ||
Income Taxes [Line Items] | ||
Bermuda tax rate | 0.00% | |
Valuation Allowance, Operating Loss Carryforwards | U.K. | ||
Income Taxes [Line Items] | ||
Less valuation allowance | $ 9.6 | 40.8 |
Foreign Exchange | U.K. | ||
Income Taxes [Line Items] | ||
Less valuation allowance | $ 1.7 | $ 1.9 |
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, 2021 | Dec. 31, 2020 | 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 | ||||
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 (Details)(Phantom) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 | 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 | ||||
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | May 02, 2013 |
Class of Stock [Line Items] | |||||||
Additional paid in capital | $ 1,514,700 | $ 1,469,700 | |||||
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 | $ 45,000 | $ 268,000 | $ 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 | ||||||
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 | $ 0 | $ 241,600 |
Statutory Requirements and Di_3
Statutory Requirements and Dividends Restrictions - Summary of Statutory Requirements and Dividends Restrictions (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
U.S. | ||
Required statutory capital and surplus | $ 561.2 | $ 504.8 |
Actual statutory capital and surplus | 889.7 | 606.2 |
Bermuda | ||
Required statutory capital and surplus | 683.7 | 632.5 |
Actual statutory capital and surplus | 1,141 | 1,147.5 |
U.K. | ||
Required statutory capital and surplus | 800.7 | 786 |
Actual statutory capital and surplus | $ 963.6 | $ 969.5 |
Statutory Requirements and Di_4
Statutory Requirements and Dividends Restrictions - Additional Information (Details) - 12 months ended Dec. 31, 2021 £ in Millions, $ in Millions | USD ($) | GBP (£) |
AUL | ||
Statutory Accounting Practices [Line Items] | ||
Syndicate to maintain funds at Lloyd | $ 752 | |
Total funds held by AUL | 704 | |
U.K. | ||
Statutory Accounting Practices [Line Items] | ||
Dividend payment made without regulatory approval | (306.3) | £ (122.1) |
Capital contributions reserves | 655 | |
Bermuda | ||
Statutory Accounting Practices [Line Items] | ||
Dividend payment made without regulatory approval | $ (326.4) | |
Statutory capital and surplus, percent | 25.00% | |
Statutory capital and surplus, percent reduction requiring approval | 15.00% | |
Percent warning level of amount of enhanced capital required from statutory capital and surplus | 120.00% | |
Bermuda | AUL | ||
Statutory Accounting Practices [Line Items] | ||
Total funds held by AUL | $ 531.2 |
Dividends - Summary of Declared
Dividends - Summary of Declared Dividends (Details) - $ / shares | Apr. 01, 2022 | Mar. 15, 2022 | Mar. 04, 2022 | Aug. 13, 2019 | Sep. 20, 2016 | Dec. 31, 2021 | Dec. 31, 2020 |
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, 2022 | ||||||
Record Date | Mar. 15, 2022 | ||||||
Depositary share dividend | $ 0.35156 | ||||||
Depositary share interest of 1/1000th in each 5.625% | 0.001% | ||||||
Preferred Stock, Dividend Rate, Percentage | 5.625% | ||||||
Subsequent Event | 5.950% Preference Shares (AHL PRC) | |||||||
Dividends Payable [Line Items] | |||||||
Dividend, in usd per share | $ 0.3719 | ||||||
Payable Date | Apr. 1, 2022 | ||||||
Record Date | Mar. 15, 2022 | ||||||
Preferred Stock, Dividend Rate, Percentage | 5.95% | ||||||
Subsequent Event | 5.625% Preference Shares (AHL PRD) | |||||||
Dividends Payable [Line Items] | |||||||
Dividend, in usd per share | $ 0.3516 | ||||||
Payable Date | Apr. 1, 2022 | ||||||
Record Date | Mar. 15, 2022 | ||||||
Preferred Stock, Dividend Rate, Percentage | 5.625% |
Retirement Plans (Details)
Retirement Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |||
Total contributions by the Company to the retirement plan | $ 13.5 | $ 12.1 | $ 12.9 |
Share-Based Payments and Long_2
Share-Based Payments and Long-term Incentive Plan - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based payment and LTIP expense | $ 0.5 | $ 2.1 |
Other share-based arrangements, expense | 0 | 0.3 |
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated share-based compensation expense | 0.5 | 1.3 |
Deferred cash awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated share-based compensation expense | $ 0 | $ 0.5 |
Intangible Assets - Summary of
Intangible Assets - Summary of Changes in Intangible Assets (Details) - USD ($) $ in Millions | Dec. 18, 2017 | Dec. 31, 2021 | Dec. 31, 2020 |
Finite and Indefinite Lived Intangible Assets [Roll Forward] | |||
Amortization | $ (0.9) | $ (1.1) | |
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 | 22.8 | 23.9 | |
Intangible Assets and Goodwill, Additions (Disposals) | 0 | 0 | |
Goodwill and Intangible Asset Impairment | 0 | 0 | |
Intangible Assets and goodwill, End of the period | 21.9 | 22.8 | |
Trademarks | |||
Finite and Indefinite Lived Intangible Assets [Roll Forward] | |||
Intangible Assets, Beginning of the period | 1.6 | 1.9 | |
Intangible Assets acquired (disposed) | $ 0 | 0 | |
Amortization | (0.3) | (0.3) | |
Impairment of intangible assets (excluding goodwill) | 0 | 0 | |
Intangible Assets, End of the period | 1.3 | 1.6 | |
Agency Relationships | |||
Finite and Indefinite Lived Intangible Assets [Roll Forward] | |||
Intangible Assets, Beginning of the period | 0.6 | 1.2 | |
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 | 0.6 | |
Renewal Rights | |||
Finite and Indefinite Lived Intangible Assets [Roll Forward] | |||
Intangible Assets, Beginning of the period | 0 | 0 | |
Intangible Assets acquired (disposed) | 0 | ||
Amortization | 0 | ||
Impairment of intangible assets (excluding goodwill) | 0 | ||
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 | 0.2 | |
Intangible Assets acquired (disposed) | $ 0 | 0 | |
Amortization | 0 | (0.2) | |
Impairment of intangible assets (excluding goodwill) | 0 | 0 | |
Intangible Assets, End of the period | 0 | 0 | |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Blue Waters | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill, acquired | $ 2.1 | ||||
Trademarks | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Value of the asset | $ 1.3 | $ 1.6 | $ 1.9 | ||
Trademarks | Blue Waters | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Value of the asset | 0 | ||||
Aspen trademark | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Value of the asset | $ 1.3 | ||||
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 | $ 0 | |||
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Amortization of right-of-use operating lease assets | $ 12 | $ 11.8 | $ 13.4 |
Interest on operating lease liability | 5.5 | 5.5 | |
Operating lease charge | $ 17.5 | $ 17.3 | $ 18 |
Operating Leases - Schedule o_2
Operating Leases - Schedule of Operating Lease Liability, Maturity (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Liability, Payments, Due prior year | $ 0 | $ 17.2 |
Liability, Payments, Next twelve months | 17 | 14.2 |
Liability, Payments, Due year two | 17 | 13.5 |
Liability, Payments, Due year three | 16.5 | 12.6 |
Liability, Payments, Due year four | 16.1 | 12.2 |
Liability, Payments, Due year five | 15.3 | 12 |
Liability, Payments, Due after year five | 61.8 | 51.4 |
Total minimum lease payments | 143.7 | 133.1 |
Less imputed interest | (28.5) | (27.1) |
Operating lease liabilities | $ 115.2 | $ 106 |
Operating Leases - Schedule o_3
Operating Leases - Schedule of Operating Leases Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Operating lease liabilities | $ (17.5) | $ (17.3) | $ (18) |
Asset obtained in exchange for operating lease liability | 23.9 | 5 | |
Reduction of right-of use assets resulting from reductions to lease obligations | $ 2.3 | $ 13 | |
Operating lease, weighted average remaining lease term (years( | 8 years 9 months 18 days | 9 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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Right-of-use operating lease assets | $ 83.4 | $ 74.1 | |
Operating lease liabilities | 115.2 | 106 | |
Non-operating expenses related to impairment charges on lease assets | $ 0.4 | $ 12.9 | $ 12.3 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
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 | $ 5.8 | $ 5.3 |
Related party fees still due | 3.2 | 2.1 |
Management Consulting Agreement | ||
Related Party Transaction [Line Items] | ||
Related party fees | 5 | 5 |
Related party fees still due | 0 | 0 |
Beneficial owner | ||
Related Party Transaction [Line Items] | ||
Intercompany balance payable | $ 0.6 | $ 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, 2021 | Dec. 31, 2020 | Sep. 30, 2021 | Dec. 20, 2017 | |
Fair Value, Separate Account Investment [Line Items] | ||||
Restricted assets, excluding illiquid assets | $ 4,530.8 | $ 4,306.9 | ||
Other investments, at fair value | 151.3 | 109.4 | ||
Total restricted assets | $ 4,682.1 | $ 4,416.3 | ||
Total as percent of investable assets | 59.70% | 58.60% | ||
Securities and cash as collateral secured letters of credit | $ 539.8 | $ 516.8 | ||
Affiliated transactions | ||||
Fair Value, Separate Account Investment [Line Items] | ||||
Restricted Assets | 891.3 | 1,027.9 | ||
Third party | ||||
Fair Value, Separate Account Investment [Line Items] | ||||
Restricted Assets | 3,099.7 | 2,762.2 | ||
Letters of credit / guarantees | ||||
Fair Value, Separate Account Investment [Line Items] | ||||
Restricted Assets | 539.8 | 516.8 | ||
Limited Partner | Real estate fund | ||||
Fair Value, Separate Account Investment [Line Items] | ||||
Restricted Assets | $ 20 | $ 100 | ||
Other investments, at fair value | $ 151.3 | $ 109.4 |
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, 2021USD ($)Investment | Dec. 31, 2020USD ($)Investment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2021GBP (£)Investment | Dec. 31, 2021CAD ($)Investment | Dec. 31, 2021AUD ($)Investment | Dec. 31, 2021CHF (SFr)Investment | Dec. 31, 2021SGD ($)Investment | Sep. 30, 2021USD ($) | Dec. 31, 2020GBP (£)Investment | Dec. 31, 2020CAD ($)Investment | Dec. 31, 2020AUD ($)Investment | Dec. 31, 2020CHF (SFr)Investment | Dec. 31, 2020SGD ($)Investment | Dec. 23, 2019USD ($) | Dec. 20, 2017USD ($) | |
Restricted Cash And Collateral [Line Items] | |||||||||||||||||||
Other investments (equity method) | $ 151.3 | $ 109.4 | |||||||||||||||||
Total as percent of investable assets | 59.70% | 58.60% | |||||||||||||||||
Investment in the period | $ 3.2 | $ 0.5 | |||||||||||||||||
Commitment to invest in private assets | 205.1 | 92.8 | $ 287.3 | ||||||||||||||||
Investable assets held by the Company | 7,800 | 7,500 | |||||||||||||||||
Investable assets held by insurance regulators | $ 565.8 | 541.4 | |||||||||||||||||
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 | $ 1,470.5 | 1,455.3 | |||||||||||||||||
Assets held-in-trust | 1,581.9 | 1,478 | |||||||||||||||||
Regulatory deposits | 6.9 | 6.7 | |||||||||||||||||
Deposit with states | $ 6.4 | $ 6.1 | |||||||||||||||||
Number of investments | Investment | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | |||||||
MVI | |||||||||||||||||||
Restricted Cash And Collateral [Line Items] | |||||||||||||||||||
Investment in the period | $ 0.8 | $ 0.8 | $ 0.4 | $ 0 | $ 0.2 | $ 0.1 | |||||||||||||
Multi-Line Insurer | |||||||||||||||||||
Restricted Cash And Collateral [Line Items] | |||||||||||||||||||
Other investments (equity method) | $ 5 | ||||||||||||||||||
Investment in the period | 2.5 | 0.5 | |||||||||||||||||
Us Multi Beneficiary Trust Fund | |||||||||||||||||||
Restricted Cash And Collateral [Line Items] | |||||||||||||||||||
Minimum trust fund | 20 | ||||||||||||||||||
Assets held-in-trust | 519.7 | 572.3 | |||||||||||||||||
Us Surplus Lines Trust Fund | |||||||||||||||||||
Restricted Cash And Collateral [Line Items] | |||||||||||||||||||
Assets held-in-trust | $ 216 | 208 | |||||||||||||||||
Canadian Trust Fund | |||||||||||||||||||
Restricted Cash And Collateral [Line Items] | |||||||||||||||||||
Assets held-in-trust | $ 196.8 | $ 156.8 | |||||||||||||||||
Australian Trust Fund | |||||||||||||||||||
Restricted Cash And Collateral [Line Items] | |||||||||||||||||||
Assets held-in-trust | $ 226.6 | $ 256.6 | |||||||||||||||||
Swiss Trust Fund | |||||||||||||||||||
Restricted Cash And Collateral [Line Items] | |||||||||||||||||||
Assets held-in-trust | SFr | SFr 8 | SFr 8 | |||||||||||||||||
Singapore Trust Fund | |||||||||||||||||||
Restricted Cash And Collateral [Line Items] | |||||||||||||||||||
Assets held-in-trust | $ 178 | $ 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 | $ 450.4 | 382.8 | |||||||||||||||||
Limited Partner | Real estate fund | |||||||||||||||||||
Restricted Cash And Collateral [Line Items] | |||||||||||||||||||
Restricted assets | $ 20 | $ 100 | |||||||||||||||||
Other investments (equity method) | $ 151.3 | $ 109.4 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Investment Holdings [Line Items] | |||
Gross written premiums, percentage | 100.00% | 100.00% | 100.00% |
Gross written premiums | $ 3,938.4 | $ 3,698.5 | $ 3,442.4 |
Aon Corporation | |||
Investment Holdings [Line Items] | |||
Gross written premiums, percentage | 17.30% | 15.80% | 13.40% |
Marsh & McLennan Companies, Inc. | |||
Investment Holdings [Line Items] | |||
Gross written premiums, percentage | 17.50% | 15.40% | 13.60% |
Willis Group Holdings, Ltd. | |||
Investment Holdings [Line Items] | |||
Gross written premiums, percentage | 9.60% | 10.40% | 10.30% |
Others | |||
Investment Holdings [Line Items] | |||
Gross written premiums, percentage | 55.60% | 58.40% | 62.70% |
Concentration of Credit Risk _2
Concentration of Credit Risk - Additional Information (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | ||
Concentration Risk [Line Items] | ||||
Unpaid losses | $ 3,298.1 | $ 3,195.2 | $ 2,319.8 | |
Reinsurance Recoverables, Uncollateralized | 1,981.4 | 2,010 | ||
Underwriting premiums receivables (net of allowance for expected credit losses of 2021:$30.2 — 2020: $34.0) (1) | 1,304.6 | 1,185 | [1] | |
Due for settlement | 35.4 | |||
Premium Receivable, Allowance for Credit Loss | $ 30.2 | 34 | ||
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 | $ 3.3 | $ 3.8 | $ 3.7 | |
AM Best, A plus Rating | Standard & Poor's, A plus Rating | Everest Re | ||||
Concentration Risk [Line Items] | ||||
Concentration risk | 0.159 | 0.134 | ||
AM Best, A plus Rating | Standard & Poor's, AA- Rating | Munich Re | ||||
Concentration Risk [Line Items] | ||||
Concentration risk | 0.108 | 0.110 | ||
AM Best, A Rating | Standard & Poor's, A plus Rating | Lloyd's | ||||
Concentration Risk [Line Items] | ||||
Concentration risk | 0.093 | 0.092 | ||
[1] | As at December 31, 2020, underwriting premiums receivables, retained earnings and accumulated other comprehensive income have been corrected to account for the correction of foreign exchange movements on underwriting premium receivable which should have been matched with an underwriting premium receivable payment. Income taxes payable and deferred tax liabilities have been corrected for historic current and deferred income taxes on Aspen U.K’s branches due to the deficiency in the completeness and accuracy of branch data and associated application thereof in respect of local tax rules in various jurisdictions. Underwriting premium receivables and reinsurance premiums payable have been corrected for immaterial adjustments. Refer to Note 26 in these consolidated financial statements, “Correction of Immaterial Errors” for further details. |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Income (loss) from operations before income taxes | $ 35.1 | $ (38) | [1] | $ (216.6) | [1] |
Income tax (expense)/benefit | (5.3) | (18.4) | [1] | (22.9) | [1] |
General, administrative and corporate expenses | (418) | (410.9) | (521.6) | ||
Net income/(loss) | 29.8 | (56.4) | [2] | (239.5) | [2] |
Net (loss) | 29.8 | (56.4) | [1],[3] | $ (239.5) | [1],[3] |
Reclassification out of Accumulated Other Comprehensive Income | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Net income/(loss) | (26.6) | (66.8) | |||
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 (losses) | (24.8) | (69.3) | |||
Realized losses on sale of securities | 4.4 | 2.2 | |||
Income (loss) from operations before income taxes | (20.4) | (67.1) | |||
Income tax (expense)/benefit | 0 | 0 | |||
Net (loss) | (20.4) | (67.1) | |||
Realized derivatives | Reclassification out of Accumulated Other Comprehensive Income | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Income tax (expense)/benefit | 0 | 0 | |||
General, administrative and corporate expenses | (6.2) | 0.3 | |||
Net income/(loss) | $ (6.2) | $ 0.3 | |||
[1] | Net earned premium has been corrected for immaterial errors in relation to gross written premium and reinsurance premium payables for periods 2020 and prior. Net realized and unrealized exchange gains/(losses) and change in foreign currency translation adjustment have been corrected to account for the correction of foreign exchange movements on underwriting premium receivables which should have been matched with an underwriting premium receivable payment for periods 2020 and prior. Income tax expense has been corrected for historic current and deferred income taxes on Aspen U.K’s branches due to the deficiency in the completeness and accuracy of branch data and associated application thereof in respect of local tax rules in various jurisdictions. Total revenues, net income/(loss) and other comprehensive income/(loss) before and after income taxes have been corrected as a result of the corrections mentioned above for periods 2020 and 2019. Refer to Note 26 in these consolidated financial statements, “Correction of Immaterial Errors” for further details. | ||||
[2] | Net loss, deferred tax expense/(benefit), net realized and unrealized exchange gains/(losses), income tax payable and underwriting premium receivable have been corrected to account for the correction mentioned on the pages of the consolidated balance sheet and the consolidated statement of operations and other comprehensive income. These corrections have had no impact on the overall cashflow from operating, investing, or financing activities. | ||||
[3] | The opening balances for retained earnings, cumulative foreign currency translation, and the net loss and change for the year on foreign cumulative translation adjustments have been corrected to account for the corrections mentioned on the pages of the consolidated balance sheet and the consolidated statement of operations and other comprehensive income. Refer to Note 26 in these consolidated financial statements, “Correction of Immaterial Errors” for further details. |
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, 2021USD ($) |
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 ($) | Dec. 01, 2021 | Sep. 30, 2019 | Jun. 18, 2018 | Nov. 13, 2013 | Dec. 15, 2010 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 29, 2021 | Nov. 30, 2021 | Nov. 05, 2021 | Nov. 01, 2021 | Apr. 01, 2021 | Nov. 30, 2020 | Nov. 03, 2020 | Feb. 11, 2019 | Jun. 30, 2018 |
Line of Credit Facility [Line Items] | ||||||||||||||||
Revolving credit facility, credit agreement maximum limit | $ 300,000,000 | |||||||||||||||
Line of credit facility Increasable capacity | $ 100,000,000 | |||||||||||||||
Line of credit facility borrowings outstanding | $ 100,000,000 | |||||||||||||||
Minimum consolidated tangible net worth under credit facility | $ 2,019,600,000 | |||||||||||||||
Percentage of consolidated net income | 25.00% | |||||||||||||||
Percentage of aggregate net cash proceeds from the issuance of capital stock | 25.00% | |||||||||||||||
Percentage of consolidated leverage ratio permitted | 35.00% | |||||||||||||||
Payment for extinguishment of debt | $ 5,500,000 | $ 8,600,000 | $ 0 | $ 0 | ||||||||||||
Repayments of Other Long-term Debt | $ 125,000,000 | $ 125,000,000 | 0 | 0 | ||||||||||||
AUL | Lloyd's | ||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||
Letter of Credit to Support Funds at Lloyd's | $ 195,000,000 | $ 95,000,000 | ||||||||||||||
Funds at Lloyd's Facility Agreement | 150,000,000 | $ 80,000,000 | $ 150,000,000 | |||||||||||||
Bermuda | Natixis | ||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||
Revolving credit facility, credit agreement maximum limit | $ 100,000,000 | |||||||||||||||
Bermuda | HSBC Bank USA, National Association | ||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||
Revolving credit facility, credit agreement maximum limit | $ 75,000,000 | |||||||||||||||
Aspen Specialty | Federal Home Loan Bank of Boston | ||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||
Revolving credit facility, credit agreement maximum limit | $ 182,000,000 | |||||||||||||||
AAIC | Federal Home Loan Bank of Boston | ||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||
Revolving credit facility, credit agreement maximum limit | $ 123,000,000 | |||||||||||||||
Percentage limit of pledged assets permitted to secure debt obligations | 10.00% | |||||||||||||||
Citibank Europe | ||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||
Outstanding collateralized letters of credit facility | 452,400,000 | $ 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 | |||||||||||||||
Standby Letters of Credit | Bermuda | ||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||
Line of Credit Facility, Commitment Fee Amount | $ 90,000,000 | |||||||||||||||
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] | ||||||||||||||||
Loans issued | $ 300,000,000 | $ 250,000,000 | ||||||||||||||
Debt stated interest rate | 4.65% | 6.00% | ||||||||||||||
Net proceeds from senior notes | $ 299,700,000 | $ 247,500,000 | ||||||||||||||
Amount of indebtedness subject to default in payment | $ 50,000,000 | |||||||||||||||
Annual interest payable | $ 14,000,000 |
Credit Losses (Details)
Credit Losses (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Credit Loss [Abstract] | ||
Reinsurance Recoverable, Allowance for Credit Loss, Beginning Balance | $ 3.8 | $ 3.7 |
Reinsurance Recoverable, Allowance for Credit Loss, Period Increase (Decrease) | (0.5) | 0.1 |
Reinsurance Recoverable, Allowance for Credit Loss, Ending Balance | 3.3 | 3.8 |
Accounts Receivable, Allowance for Credit Loss, Beginning Balance | 34 | 23 |
Accounts Receivable, Allowance for Credit Loss, Period Increase (Decrease) | (3.8) | 11 |
Accounts Receivable, Allowance for Credit Loss, Ending Balance | 30.2 | 34 |
Available-for-sale Investments, Allowance for Credit Loss, Beginning Balance | 0.2 | 0.6 |
Available-for-sale investment, allowance for credit loss, increase (decrease) | 2.5 | (0.4) |
Available-for-sale Investments, Allowance for Credit Loss, Current | 2.7 | 0.2 |
Total, Allowance for Credit Loss, Beginning Balance | 38 | 27.3 |
Total allowance for credit losses increase (decrease) | (1.8) | 10.7 |
Total, Allowance for Credit Loss, Ending Balance | $ 36.2 | $ 38 |
Accounting Changes and Error _3
Accounting Changes and Error Corrections (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Gross written premiums | $ 3,938.4 | $ 3,698.5 | $ 3,442.4 | ||||
Underwriting Income (Loss) | (30) | (87) | (140.6) | ||||
Net realized and unrealized foreign exchange gains | (40) | 13.8 | [1] | 9.6 | [1] | ||
Income Tax Expense (Benefit) | (5.3) | (18.4) | [1] | (22.9) | [1] | ||
Net (loss) | 29.8 | (56.4) | [1],[2] | (239.5) | [1],[2] | ||
Premiums Receivable, Net | 1,304.6 | 1,185 | [3] | ||||
Reinsurance Payable | 575.7 | 572.8 | [3] | ||||
Income taxes payable | 4.4 | 8.8 | [3] | ||||
Deferred income tax liabilities, net | 2.8 | 5.2 | [3] | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 2,774.8 | 2,887.2 | [3] | 2,628 | |||
Fixed income securities | (157.6) | 108.5 | 164.9 | ||||
Net income/(loss) | 29.8 | (56.4) | [4] | (239.5) | [4] | ||
Deferred tax expense/(benefit) | (3.2) | (1) | [4] | 24.7 | [4] | ||
Gains (Losses) On Investment And Foreign Exchange | 13 | (25.3) | [4] | 27.9 | [4] | ||
Increase (Decrease) in Premiums Receivable | (142.9) | 79.9 | 142.8 | ||||
Increase (Decrease) in Income Taxes Payable | (7.6) | 7.6 | [4] | (1.2) | [4] | ||
Net Cash Provided by (Used in) Operating Activities | 524.7 | (672.7) | (337.8) | ||||
Previously Reported | |||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Gross written premiums | 3,703.6 | ||||||
Net realized and unrealized foreign exchange gains | 12.4 | 11.8 | |||||
Income Tax Expense (Benefit) | (8.6) | ||||||
Net (loss) | (40.1) | (241.7) | |||||
Premiums Receivable, Net | 1,279.8 | ||||||
Reinsurance Payable | 567.5 | ||||||
Income taxes payable | 3.7 | ||||||
Deferred income tax liabilities, net | 0 | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1,514.6 | ||||||
Fixed income securities | 102.3 | ||||||
Net income/(loss) | (40.1) | ||||||
Deferred tax expense/(benefit) | (5.7) | ||||||
Gains (Losses) On Investment And Foreign Exchange | (23.1) | 28.1 | |||||
Increase (Decrease) in Premiums Receivable | 71.2 | 144.8 | |||||
Increase (Decrease) in Income Taxes Payable | 2.5 | ||||||
Net Cash Provided by (Used in) Operating Activities | (672.7) | (337.8) | |||||
Restatement Adjustment | |||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Gross written premiums | (5.1) | ||||||
Net realized and unrealized foreign exchange gains | (1.4) | 2.2 | |||||
Income Tax Expense (Benefit) | (9.8) | ||||||
Net (loss) | (16.3) | 2.2 | |||||
Premiums Receivable, Net | (94.8) | ||||||
Reinsurance Payable | 5.3 | ||||||
Income taxes payable | 5.1 | ||||||
Deferred income tax liabilities, net | 5.2 | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (12.2) | ||||||
Fixed income securities | 5.7 | ||||||
Retained earnings, corrected | (5.3) | ||||||
Underwriting premiums receivable, corrected | (89.7) | ||||||
Reinsurance premiums payable, corrected | (5.3) | ||||||
Retained earnings, corrected | 2.1 | ||||||
AOCI corrected | 87.6 | ||||||
Tax liability, corrected | (10.3) | ||||||
Retained earnings, corrected in relation to branch taxes | (16) | ||||||
AOCI corrected in relation to branch taxes | 5.7 | ||||||
Net income/(loss) | (16.3) | ||||||
Deferred tax expense/(benefit) | 4.7 | ||||||
Gains (Losses) On Investment And Foreign Exchange | (2.2) | (0.2) | |||||
Increase (Decrease) in Premiums Receivable | 8.7 | (2) | |||||
Increase (Decrease) in Income Taxes Payable | 5.1 | ||||||
Net Cash Provided by (Used in) Operating Activities | 0 | 0 | |||||
Retained earnings | |||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1,382.5 | 1,397.2 | 1,502.4 | [2] | $ 1,776.6 | [2] | |
Retained earnings | Previously Reported | |||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1,791 | ||||||
Retained earnings | Restatement Adjustment | |||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (14.4) | ||||||
Cumulative foreign currency translation adjustments: | |||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (156) | (177.4) | [2] | (165.5) | [2] | (140.5) | [2] |
Changes for the period | $ 21.4 | (11.9) | [2] | (25) | [2] | ||
Cumulative foreign currency translation adjustments: | Previously Reported | |||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (80.2) | $ (55.4) | |||||
Changes for the period | (9.6) | (24.8) | |||||
Cumulative foreign currency translation adjustments: | Restatement Adjustment | |||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (85.3) | (85.1) | |||||
Changes for the period | $ (2.3) | $ (0.2) | |||||
[1] | Net earned premium has been corrected for immaterial errors in relation to gross written premium and reinsurance premium payables for periods 2020 and prior. Net realized and unrealized exchange gains/(losses) and change in foreign currency translation adjustment have been corrected to account for the correction of foreign exchange movements on underwriting premium receivables which should have been matched with an underwriting premium receivable payment for periods 2020 and prior. Income tax expense has been corrected for historic current and deferred income taxes on Aspen U.K’s branches due to the deficiency in the completeness and accuracy of branch data and associated application thereof in respect of local tax rules in various jurisdictions. Total revenues, net income/(loss) and other comprehensive income/(loss) before and after income taxes have been corrected as a result of the corrections mentioned above for periods 2020 and 2019. Refer to Note 26 in these consolidated financial statements, “Correction of Immaterial Errors” for further details. | ||||||
[2] | The opening balances for retained earnings, cumulative foreign currency translation, and the net loss and change for the year on foreign cumulative translation adjustments have been corrected to account for the corrections mentioned on the pages of the consolidated balance sheet and the consolidated statement of operations and other comprehensive income. Refer to Note 26 in these consolidated financial statements, “Correction of Immaterial Errors” for further details. | ||||||
[3] | As at December 31, 2020, underwriting premiums receivables, retained earnings and accumulated other comprehensive income have been corrected to account for the correction of foreign exchange movements on underwriting premium receivable which should have been matched with an underwriting premium receivable payment. Income taxes payable and deferred tax liabilities have been corrected for historic current and deferred income taxes on Aspen U.K’s branches due to the deficiency in the completeness and accuracy of branch data and associated application thereof in respect of local tax rules in various jurisdictions. Underwriting premium receivables and reinsurance premiums payable have been corrected for immaterial adjustments. Refer to Note 26 in these consolidated financial statements, “Correction of Immaterial Errors” for further details. | ||||||
[4] | Net loss, deferred tax expense/(benefit), net realized and unrealized exchange gains/(losses), income tax payable and underwriting premium receivable have been corrected to account for the correction mentioned on the pages of the consolidated balance sheet and the consolidated statement of operations and other comprehensive income. These corrections have had no impact on the overall cashflow from operating, investing, or financing activities. |
Subsequent Events - Narrative (
Subsequent Events - Narrative (Details) $ in Millions | Oct. 01, 2022 | Jan. 10, 2022USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Subsequent Event [Line Items] | |||||
Adverse development cover reinsurance agreement cover | $ 0 | $ (818.5) | $ 0 | ||
Subsequent Event | LPT | |||||
Subsequent Event [Line Items] | |||||
Reinsurance Retention Policy, Excess Retention, Amount Reinsured | $ 3,120 | ||||
Reinsurance retention policy, amount retained | 3,570 | ||||
Reinsurance Recoverables for Unpaid Claims and Claims Adjustment, Ceded Claims Gross | $ 3,160 | ||||
Annual rate of interest | 0.0175 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | May 02, 2013 | |||
ASSETS | ||||||||||
Cash and cash equivalents (including cash within consolidated variable interest entities of — $75.2 and $69.9) | [1] | $ 1,314,100 | $ 1,747,300 | |||||||
Other investments (equity method) | 151,300 | 109,400 | ||||||||
Right-of-use operating lease assets | 83,400 | 74,100 | ||||||||
Other assets | 8,300 | 8,400 | ||||||||
Total assets | 13,844,100 | 13,090,600 | ||||||||
LIABILITIES | ||||||||||
Accrued expenses and other payables | 289,300 | 214,400 | ||||||||
Long-term debt | 299,900 | 299,900 | ||||||||
Operating lease liabilities | 115,200 | 106,000 | ||||||||
Total liabilities | 11,069,300 | 10,203,400 | ||||||||
SHAREHOLDERS’ EQUITY | ||||||||||
60,395,839 ordinary shares of par value $0.01 each (December 31, 2020 — 60,395,839 shares) | 604 | 604 | ||||||||
Additional paid in capital | 1,514,700 | 1,469,700 | ||||||||
Retained earnings | 1,382,500 | 1,397,200 | [2] | |||||||
Unrealized gains on investments | (137,200) | 175,600 | $ 171,700 | |||||||
Total accumulated other comprehensive (loss)/income | (123,000) | 19,700 | [2],[3] | (76,700) | [3] | |||||
Total liabilities and shareholders’ equity | $ 13,844,100 | $ 13,090,600 | ||||||||
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, 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, 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, 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) | $ 42,600 | $ 0 | ||||||||
Cash and cash equivalents (including cash within consolidated variable interest entities of — $75.2 and $69.9) | 45,000 | 92,400 | $ 37,400 | $ 55,600 | ||||||
Investments in subsidiaries (1) (2) | 3,142,000 | 3,215,200 | ||||||||
Intercompany funds due from affiliates | 1,300 | 700 | ||||||||
Right-of-use operating lease assets | 2,500 | 1,000 | ||||||||
Other assets | 8,000 | 6,400 | ||||||||
Total assets | 3,241,400 | 3,315,700 | ||||||||
LIABILITIES | ||||||||||
Accrued expenses and other payables | 25,500 | 24,300 | ||||||||
Intercompany funds due to affiliates | 139,000 | 103,400 | ||||||||
Long-term debt | 299,900 | 299,900 | ||||||||
Operating lease liabilities | 2,200 | 900 | ||||||||
Total liabilities | 466,600 | 428,500 | ||||||||
SHAREHOLDERS’ EQUITY | ||||||||||
60,395,839 ordinary shares of par value $0.01 each (December 31, 2020 — 60,395,839 shares) | 600 | 600 | ||||||||
Additional paid in capital | 1,514,700 | 1,469,700 | ||||||||
Retained earnings | 1,382,500 | 1,397,200 | ||||||||
Unrealized gains on investments | 34,600 | 192,500 | ||||||||
Gains on foreign currency translation (start of period) | (177,400) | |||||||||
(Loss)/gain on derivatives | (1,600) | 4,600 | ||||||||
Gains on foreign currency translation (end of period) | (156,000) | (177,400) | ||||||||
Total accumulated other comprehensive (loss)/income | (123,000) | 19,700 | ||||||||
Total shareholders’ equity (2) | 2,774,800 | 2,887,200 | ||||||||
Total liabilities and shareholders’ equity | $ 3,241,400 | $ 3,315,700 | ||||||||
Ordinary shares, issued | 60,395,839 | 60,395,839 | ||||||||
Ordinary shares, par value | $ 0.0001 | $ 0.0001 | ||||||||
[1] | includes restricted cash of $364.9 million (2020 — $296.0 million) | |||||||||
[2] | As at December 31, 2020, underwriting premiums receivables, retained earnings and accumulated other comprehensive income have been corrected to account for the correction of foreign exchange movements on underwriting premium receivable which should have been matched with an underwriting premium receivable payment. Income taxes payable and deferred tax liabilities have been corrected for historic current and deferred income taxes on Aspen U.K’s branches due to the deficiency in the completeness and accuracy of branch data and associated application thereof in respect of local tax rules in various jurisdictions. Underwriting premium receivables and reinsurance premiums payable have been corrected for immaterial adjustments. Refer to Note 26 in these consolidated financial statements, “Correction of Immaterial Errors” for further details. | |||||||||
[3] | The opening balances for retained earnings, cumulative foreign currency translation, and the net loss and change for the year on foreign cumulative translation adjustments have been corrected to account for the corrections mentioned on the pages of the consolidated balance sheet and the consolidated statement of operations and other comprehensive income. Refer to Note 26 in these consolidated financial statements, “Correction of Immaterial Errors” for further details. |
Schedule II - Condensed Finan_3
Schedule II - Condensed Financial Information of Registrant Statements of Operations and Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Condensed Financial Statements, Captions [Line Items] | |||||
Dividend income | $ 159.2 | $ 167.3 | $ 209.1 | ||
Other income | 14.7 | 49.8 | 4.9 | ||
Total revenues | 2,628.9 | 2,830.4 | [1] | 2,592.6 | [1] |
Expenses | |||||
General, administrative and corporate expenses | (418) | (410.9) | (521.6) | ||
Other expenses | (10.8) | (10.8) | (1.7) | ||
Income (loss) from operations before income taxes | 35.1 | (38) | [1] | (216.6) | [1] |
Income tax (expense) | (5.3) | (18.4) | [1] | (22.9) | [1] |
Net income/(loss) | 29.8 | (56.4) | [1],[2] | (239.5) | [1],[2] |
Proportion due to non-controlling interest | 0 | 0 | 1.2 | ||
Net (loss)/income attributable to Aspen Insurance Holdings Limited’s ordinary shareholders | 29.8 | (56.4) | [1] | (238.3) | [1] |
Other Comprehensive Income: | |||||
Change in unrealized (losses)/gains on investments(1) | (157.9) | 108 | 151.3 | ||
Other comprehensive (loss)/income, net of tax | (142.7) | 96.4 | [1] | 130.3 | [1] |
Total comprehensive (loss)/income attributable to Aspen Insurance Holdings Limited's ordinary shareholders | (112.9) | 40 | [1] | (108) | [1] |
Parent Company | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Equity in net earnings/(losses) of subsidiaries and other investments, equity method (1) | (90.5) | (108.4) | (412.9) | ||
Dividend income | 193 | 141.5 | 270 | ||
Net realized and unrealized investment gains/(losses) | (0.5) | 2.5 | 2.6 | ||
Total revenues | 102 | 35.6 | (140.3) | ||
Expenses | |||||
General, administrative and corporate expenses | (54.6) | (74.6) | (70.2) | ||
Interest expense | (14.3) | (14.3) | (25.7) | ||
Other expenses | (3.3) | (3.1) | (3.3) | ||
Income (loss) from operations before income taxes | 29.8 | (56.4) | (239.5) | ||
Income tax (expense) | 0 | 0 | 0 | ||
Net income/(loss) | 29.8 | (56.4) | (239.5) | ||
Proportion due to non-controlling interest | 0 | 0 | 1.2 | ||
Net (loss)/income attributable to Aspen Insurance Holdings Limited’s ordinary shareholders | 29.8 | (56.4) | (238.3) | ||
Other Comprehensive Income: | |||||
Change in unrealized (losses)/gains on investments(1) | (158.6) | 108 | 151.3 | ||
Net change from current period hedged transactions | (6.2) | 0.3 | 4 | ||
Change in foreign currency translation adjustment (1) | 21.4 | (11.9) | (25) | ||
Other comprehensive (loss)/income, net of tax | (143.4) | 96.4 | 130.3 | ||
Total comprehensive (loss)/income attributable to Aspen Insurance Holdings Limited's ordinary shareholders | $ (113.6) | $ 40 | $ (108) | ||
[1] | Net earned premium has been corrected for immaterial errors in relation to gross written premium and reinsurance premium payables for periods 2020 and prior. Net realized and unrealized exchange gains/(losses) and change in foreign currency translation adjustment have been corrected to account for the correction of foreign exchange movements on underwriting premium receivables which should have been matched with an underwriting premium receivable payment for periods 2020 and prior. Income tax expense has been corrected for historic current and deferred income taxes on Aspen U.K’s branches due to the deficiency in the completeness and accuracy of branch data and associated application thereof in respect of local tax rules in various jurisdictions. Total revenues, net income/(loss) and other comprehensive income/(loss) before and after income taxes have been corrected as a result of the corrections mentioned above for periods 2020 and 2019. Refer to Note 26 in these consolidated financial statements, “Correction of Immaterial Errors” for further details. | ||||
[2] | The opening balances for retained earnings, cumulative foreign currency translation, and the net loss and change for the year on foreign cumulative translation adjustments have been corrected to account for the corrections mentioned on the pages of the consolidated balance sheet and the consolidated statement of operations and other comprehensive income. Refer to Note 26 in these consolidated financial statements, “Correction of Immaterial Errors” for further details. |
Schedule II - Condensed Finan_4
Schedule II - Condensed Financial Information of Registrant Statements of Cash Flows (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jun. 18, 2018 | Mar. 31, 2021 | Jan. 31, 2015 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from/used in operating activities: | |||||||||
Amortization of right-of-use operating lease assets | $ 12 | $ 11.8 | $ 13.4 | ||||||
Interest on operating lease liability | (5.5) | (5.5) | |||||||
Change in right of lease assets | 0.4 | 12.9 | 12.3 | ||||||
Change in operating lease liabilities | (17.5) | (17.3) | (18) | ||||||
Net cash from/(used in) operating activities | 524.7 | (672.7) | (337.8) | ||||||
Cash flows from investing activities: | |||||||||
Proceeds/(purchases) of short term investments | (26.8) | (58.3) | (193.6) | ||||||
Repayment of loan notes issued by Silverton | $ (125) | $ (125) | 0 | 0 | |||||
Payments for acquisitions and investments, net of cash acquired | (3.2) | (0.5) | |||||||
(Purchases) of other investments | (20) | 0 | 0 | ||||||
Net cash (used in)/from investing activities | (950.3) | 1,151.2 | 218.3 | ||||||
Cash flows from financing activities: | |||||||||
Proceeds from the net issuance of ordinary shares, net of issuance costs | 0 | 0 | 1.4 | ||||||
Ordinary share repurchase | 0 | 0 | (0.1) | ||||||
Buy-out of minority interest | 0 | 0 | (0.8) | ||||||
Cash paid for tax withholding purposes | 0 | 0 | (2.8) | ||||||
Net cash from financing activities | 0.5 | 223.5 | 65.2 | ||||||
Cash and cash equivalents at beginning of period | [1] | 1,747.3 | |||||||
Cash and cash equivalents at end of period | [1] | 1,314.1 | 1,747.3 | ||||||
Parent Company | |||||||||
Cash flows from/used in operating activities: | |||||||||
Net income (1) (excluding equity in net earnings of subsidiaries) | 120.3 | 52 | 174.6 | ||||||
Realized and unrealized (gains)/losses | (6.7) | 1.5 | 9.6 | ||||||
Loss/(gain) on derivative contracts | 6.2 | (0.3) | (4) | ||||||
Amortization of right-of-use operating lease assets | 0.5 | 0.4 | 0.3 | ||||||
Interest on operating lease liability | 0.1 | (0.4) | 0.2 | ||||||
Change in other assets | (1.6) | 0.5 | 2.1 | ||||||
Change in right of lease assets | (2) | 0 | 0 | ||||||
Change in accrued expenses and other payables | 1.4 | 15.9 | (51.2) | ||||||
Change in intercompany activities | 35 | 41.6 | (59) | ||||||
Change in operating lease liabilities | 1.5 | 0 | (0.5) | ||||||
Net cash from/(used in) operating activities | 154.7 | 111.2 | 72.1 | ||||||
Cash flows from investing activities: | |||||||||
(Purchases) of fixed income securities | (42.6) | 75.6 | (75.6) | ||||||
Investment in subsidiaries | (115) | (87.3) | (82.7) | ||||||
Net cash (used in)/from investing activities | (157.6) | (11.7) | (158.3) | ||||||
Cash flows from financing activities: | |||||||||
Proceeds from the net issuance of ordinary shares, net of issuance costs | 0 | 0 | 1.4 | ||||||
Capital contribution | 0 | 0 | 241.6 | ||||||
Ordinary share repurchase | 0 | 0 | (0.1) | ||||||
Ordinary and preference share dividends paid | (44.5) | (44.5) | (35.9) | ||||||
Repayment of long-term debt issued by Silverton | 0 | 0 | 7.7 | ||||||
Realized loss on debt extinguishment | 0 | 0 | (5.5) | ||||||
Cash and Cash Equivalents, Period Increase (Decrease) | (47.4) | 55 | (18.2) | ||||||
Net cash from financing activities | (44.5) | (44.5) | 68 | ||||||
Cash and cash equivalents at beginning of period | 92.4 | 37.4 | 55.6 | ||||||
Cash and cash equivalents at end of period | 45 | 92.4 | 37.4 | $ 55.6 | |||||
MVI | |||||||||
Cash flows from investing activities: | |||||||||
Payments for acquisitions and investments, net of cash acquired | $ (0.8) | $ (0.8) | (0.4) | 0 | (0.2) | $ (0.1) | |||
Parent | |||||||||
Cash flows from financing activities: | |||||||||
Buy-out of minority interest | 0 | 0 | (0.8) | ||||||
Parent | Parent Company | |||||||||
Cash flows from financing activities: | |||||||||
Long-term debt repayment | $ 0 | $ 0 | $ (125) | ||||||
[1] | includes restricted cash of $364.9 million (2020 — $296.0 million) |
Schedule III - Supplementary _2
Schedule III - Supplementary Insurance Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Deferred Policy Acquisition Costs | $ 290.8 | $ 306.6 | $ 291.1 | |||
Net Reserves for Losses and LAE | 4,313.7 | 3,970.1 | 4,632 | $ 4,996.6 | ||
Net Reserves for Unearned Premiums | 1,516.2 | 1,363.7 | 1,294 | |||
Net earned premiums | 2,410.5 | 2,527.5 | [1] | 2,293.3 | [1] | |
Net Investment Income | 147.5 | 154.6 | 197.3 | |||
Losses and LAE Expenses | 1,693.3 | 1,840.8 | 1,679.7 | |||
Policy Acquisition Expenses | 414.1 | 465.7 | 412.7 | |||
Net written premiums | 2,587.7 | 2,577.8 | 2,427.9 | |||
General and Administrative Expenses | 333.1 | 308 | 341.5 | |||
Reinsurance | ||||||
Deferred Policy Acquisition Costs | 205.2 | 206.8 | 210.3 | |||
Net Reserves for Losses and LAE | 2,148.4 | 2,095.7 | 2,605.9 | |||
Net Reserves for Unearned Premiums | 688.6 | 617.6 | 599.9 | |||
Net earned premiums | 1,118.8 | 1,287.7 | 1,255.2 | |||
Losses and LAE Expenses | 705.2 | 958.6 | 917.9 | |||
Policy Acquisition Expenses | 221.6 | 246 | 264.9 | |||
Net written premiums | 1,199 | 1,297.7 | 1,251.1 | |||
General and Administrative Expenses | 121.3 | 110.8 | 111.7 | |||
Insurance | ||||||
Deferred Policy Acquisition Costs | 85.6 | 99.8 | 80.8 | |||
Net Reserves for Losses and LAE | 2,165.3 | 1,874.4 | 2,026.1 | |||
Net Reserves for Unearned Premiums | 827.6 | 746.1 | 694.1 | |||
Net earned premiums | 1,291.7 | 1,239.8 | 1,038.1 | |||
Losses and LAE Expenses | 988.1 | 882.2 | 761.8 | |||
Policy Acquisition Expenses | 192.5 | 219.7 | 147.8 | |||
Net written premiums | 1,388.7 | 1,280.1 | 1,176.8 | |||
General and Administrative Expenses | $ 211.8 | $ 197.2 | $ 229.8 | |||
[1] | Net earned premium has been corrected for immaterial errors in relation to gross written premium and reinsurance premium payables for periods 2020 and prior. Net realized and unrealized exchange gains/(losses) and change in foreign currency translation adjustment have been corrected to account for the correction of foreign exchange movements on underwriting premium receivables which should have been matched with an underwriting premium receivable payment for periods 2020 and prior. Income tax expense has been corrected for historic current and deferred income taxes on Aspen U.K’s branches due to the deficiency in the completeness and accuracy of branch data and associated application thereof in respect of local tax rules in various jurisdictions. Total revenues, net income/(loss) and other comprehensive income/(loss) before and after income taxes have been corrected as a result of the corrections mentioned above for periods 2020 and 2019. Refer to Note 26 in these consolidated financial statements, “Correction of Immaterial Errors” for further details. |
Schedule IV - Reinsurance Premi
Schedule IV - Reinsurance Premiums Written and Premiums Earned (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |||||
Direct | $ 2,341.4 | $ 2,042.1 | $ 1,956.9 | ||
Assumed | 1,597 | 1,656.4 | 1,485.5 | ||
Ceded | (1,350.7) | (1,120.7) | (1,014.5) | ||
Net written premiums | 2,587.7 | 2,577.8 | 2,427.9 | ||
Gross Amount | 2,139.1 | 2,026.4 | 1,927.5 | ||
Assumed From Other Companies | 1,479.2 | 1,612 | 1,494.9 | ||
Ceded | (1,207.8) | (1,110.9) | (1,129.1) | ||
Net premiums earned | $ 2,410.5 | $ 2,527.5 | [1] | $ 2,293.3 | [1] |
Percentage of Amount Assumed to Net | 61.40% | 63.80% | 65.20% | ||
Gross written premiums | $ 3,938.4 | $ 3,698.5 | $ 3,442.4 | ||
[1] | Net earned premium has been corrected for immaterial errors in relation to gross written premium and reinsurance premium payables for periods 2020 and prior. Net realized and unrealized exchange gains/(losses) and change in foreign currency translation adjustment have been corrected to account for the correction of foreign exchange movements on underwriting premium receivables which should have been matched with an underwriting premium receivable payment for periods 2020 and prior. Income tax expense has been corrected for historic current and deferred income taxes on Aspen U.K’s branches due to the deficiency in the completeness and accuracy of branch data and associated application thereof in respect of local tax rules in various jurisdictions. Total revenues, net income/(loss) and other comprehensive income/(loss) before and after income taxes have been corrected as a result of the corrections mentioned above for periods 2020 and 2019. Refer to Note 26 in these consolidated financial statements, “Correction of Immaterial Errors” for further details. |
Schedule V - Valuation and Qu_2
Schedule V - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Premiums receivable from underwriting activities | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 34 | $ 23 | $ 16.2 |
Charged to Costs and Expenses | (3.8) | 11 | 6.8 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 0 | 0 | 0 |
Balance at End of Year | 30.2 | 34 | 23 |
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 |