Losses and Loss Adjustment Expenses (Tables) | 12 Months Ended |
Dec. 31, 2017 | Dec. 31, 2016 |
Insurance [Abstract] | | |
Total Losses and Loss Adjustment Expense Liabilities, and Reconciliation of Beginning and Ending Balances | The following table summarizes the liability for losses and LAE by segment as at December 31, 2017 and 2016 : 2017 2016 Non-life Run-off Atrium StarStone Total Non-life Atrium StarStone Total Outstanding losses $ 3,185,703 $ 78,363 $ 590,977 $ 3,855,043 $ 2,697,736 $ 67,379 $ 502,115 $ 3,267,230 IBNR 2,903,927 150,508 599,221 3,653,656 1,935,659 130,118 541,305 2,607,082 Fair value adjustments (125,998 ) 9,547 (555 ) (117,006 ) (135,368 ) 12,503 (863 ) (123,728 ) Fair value adjustments - fair value option (314,748 ) — — (314,748 ) — — — — ULAE 300,588 2,455 18,100 321,143 218,336 2,122 16,825 237,283 Total $ 5,949,472 $ 240,873 $ 1,207,743 $ 7,398,088 $ 4,716,363 $ 212,122 $ 1,059,382 $ 5,987,867 Reconciliation to Consolidated Balance Sheet: Losses and loss adjustment expenses $ 5,603,419 $ 5,987,867 Losses and loss adjustment expenses, at fair value 1,794,669 — Total $ 7,398,088 $ 5,987,867 The overall increase in the liability for losses and LAE between December 31, 2016 and December 31, 2017 was primarily attributable to the assumed reinsurance agreements with RSA and QBE in our Non-life Run-off segment, for which we have elected the fair value option, as described in Note 4 - "Significant New Business" . The table below provides a consolidated reconciliation of the beginning and ending liability for losses and LAE for the years ended December 31, 2017 , 2016 and 2015 : 2017 2016 2015 Balance as at January 1 $ 5,987,867 $ 5,720,149 $ 4,509,421 Less: reinsurance reserves recoverable 1,388,193 1,360,382 1,154,196 Less: deferred charges on retroactive reinsurance 94,551 255,911 — Net balance as at January 1 4,505,123 4,103,856 3,355,225 Net incurred losses and LAE: Current period 437,853 493,016 476,364 Prior periods (244,302 ) (318,917 ) (372,031 ) Total net incurred losses and LAE 193,551 174,099 104,333 Net paid losses: Current period (82,273 ) (79,579 ) (99,933 ) Prior periods (862,921 ) (753,478 ) (681,956 ) Total net paid losses (945,194 ) (833,057 ) (781,889 ) Effect of exchange rate movement 158,429 (46,903 ) (65,069 ) Acquired on purchase of subsidiaries 10,251 10,019 878,815 Assumed business 1,525,703 1,340,444 612,441 Ceded business — (243,335 ) — Net balance as at December 31 5,447,863 4,505,123 4,103,856 Plus: reinsurance reserves recoverable 1,870,033 1,388,193 1,360,382 Plus: deferred charges on retroactive reinsurance 80,192 94,551 255,911 Balance as at December 31 $ 7,398,088 $ 5,987,867 $ 5,720,149 The table below provides a reconciliation of the beginning and ending reserves for losses and LAE for the years ended December 31, 2017 , 2016 and 2015 for the Non-life Run-off segment: 2017 2016 2015 Balance as at January 1 $ 4,716,363 $ 4,585,454 $ 3,435,010 Less: reinsurance reserves recoverable 1,000,953 1,034,747 800,709 Less: deferred charges on retroactive reinsurance 94,551 255,911 — Net balance as at January 1 3,620,859 3,294,796 2,634,301 Net incurred losses and LAE: Current period 5,866 5,829 39,924 Prior periods (196,540 ) (291,710 ) (310,754 ) Total net incurred losses and LAE (190,674 ) (285,881 ) (270,830 ) Net paid losses: Current period (2,835 ) (3,869 ) (16,049 ) Prior periods (578,888 ) (529,937 ) (501,246 ) Total net paid losses (581,723 ) (533,806 ) (517,295 ) Effect of exchange rate movement 138,772 (27,478 ) (42,636 ) Acquired on purchase of subsidiaries 10,251 10,019 878,815 Assumed business 1,494,310 1,340,444 612,441 Ceded business — (177,235 ) — Net balance as at December 31 4,491,795 3,620,859 3,294,796 Plus: reinsurance reserves recoverable 1,377,485 1,000,953 1,034,747 Plus: deferred charges on retroactive reinsurance 80,192 94,551 255,911 Balance as at December 31 $ 5,949,472 $ 4,716,363 $ 4,585,454 The table below provides a reconciliation of the beginning and ending liability for losses and LAE for the years ended December 31, 2017 , 2016 and 2015 : 2017 2016 2015 Balance as at January 1 $ 212,122 $ 201,017 $ 212,611 Less: reinsurance reserves recoverable 30,009 25,852 28,278 Net balance as at January 1 182,113 175,165 184,333 Net incurred losses and LAE: Current period 90,359 71,358 69,400 Prior periods (20,940 ) (12,971 ) (21,921 ) Total net incurred losses and LAE 69,419 58,387 47,479 Net paid losses: Current period (24,571 ) (23,582 ) (21,145 ) Prior periods (31,107 ) (24,416 ) (30,890 ) Total net paid losses (55,678 ) (47,998 ) (52,035 ) Effect of exchange rate movement 4,488 (3,441 ) (4,612 ) Net balance as at December 31 200,342 182,113 175,165 Plus: reinsurance reserves recoverable 40,531 30,009 25,852 Balance as at December 31 $ 240,873 $ 212,122 $ 201,017 | |
Schedule of Incurred Losses | The tables below provide the components of net incurred losses and LAE by segment for the years ended December 31, 2017 , 2016 and 2015 : Year Ended December 31, 2017 Non-life Atrium StarStone Total Net losses paid $ 581,723 $ 55,678 $ 307,793 $ 945,194 Net change in case and LAE reserves (381,053 ) 8,338 31,685 (341,030 ) Net change in IBNR reserves (390,727 ) 7,679 (23,540 ) (406,588 ) Amortization of deferred charges 14,359 — — 14,359 Increase (reduction) in estimates of net ultimate losses (175,698 ) 71,695 315,938 211,935 Reduction in provisions for bad debt (1,536 ) 159 — (1,377 ) Increase (reduction) in provisions for unallocated LAE (53,810 ) 285 (187 ) (53,712 ) Amortization of fair value adjustments 10,114 (2,720 ) (945 ) 6,449 Changes in fair value - fair value option 30,256 — — 30,256 Net incurred losses and LAE $ (190,674 ) $ 69,419 $ 314,806 $ 193,551 Year Ended December 31, 2016 Non-life Run-off Atrium StarStone Total Net losses paid $ 533,806 $ 47,998 $ 251,253 $ 833,057 Net change in case and LAE reserves (608,785 ) (148 ) 73,049 (535,884 ) Net change in IBNR reserves (347,384 ) 13,700 75,643 (258,041 ) Amortization of deferred charges 168,827 — — 168,827 Increase (reduction) in estimates of net ultimate losses (253,536 ) 61,550 399,945 207,959 Reduction in provisions for bad debt (13,822 ) — — (13,822 ) Increase (reduction) in provisions for unallocated LAE (43,955 ) 145 3,543 (40,267 ) Amortization of fair value adjustments 25,432 (3,308 ) (1,895 ) 20,229 Net incurred losses and LAE $ (285,881 ) $ 58,387 $ 401,593 $ 174,099 Year Ended December 31, 2015 Non-life Atrium StarStone Total Net losses paid $ 517,295 $ 52,035 $ 212,559 $ 781,889 Net change in case and LAE reserves (355,335 ) (709 ) 77,219 (278,825 ) Net change in IBNR reserves (364,774 ) 2,844 37,904 (324,026 ) Amortization of deferred charges 15,265 — — 15,265 Increase (reduction) in estimates of net ultimate losses (187,549 ) 54,170 327,682 194,303 Increase in provisions for bad debt (25,271 ) — — (25,271 ) Reduction in provisions for unallocated LAE (62,653 ) (83 ) 3,537 (59,199 ) Amortization of fair value adjustments 4,643 (6,608 ) (3,535 ) (5,500 ) Net incurred losses and LAE $ (270,830 ) $ 47,479 $ 327,684 $ 104,333 Net incurred losses and LAE in the Non-life Run-off segment for the years ended December 31, 2017 , 2016 and 2015 were as follows: 2017 2016 2015 Prior Period Current Period Total Prior Period Current Period Total Prior Period Current Period Total Net losses paid $ 578,888 $ 2,835 $ 581,723 $ 529,937 $ 3,869 $ 533,806 $ 501,246 $ 16,049 $ 517,295 Net change in case and LAE reserves (381,450 ) 397 (381,053 ) (608,168 ) (617 ) (608,785 ) (366,262 ) 10,927 (355,335 ) Net change in IBNR reserves (393,100 ) 2,373 (390,727 ) (349,726 ) 2,342 (347,384 ) (377,722 ) 12,948 (364,774 ) Amortization of deferred charges 14,359 — 14,359 168,827 — 168,827 15,265 — 15,265 Increase (reduction) in estimates of net ultimate losses (181,303 ) 5,605 (175,698 ) (259,130 ) 5,594 (253,536 ) (227,473 ) 39,924 (187,549 ) Reduction in provisions for bad debt (1,536 ) — (1,536 ) (13,822 ) — (13,822 ) (25,271 ) — (25,271 ) Increase (reduction) in provisions for unallocated LAE (54,071 ) 261 (53,810 ) (44,190 ) 235 (43,955 ) (62,653 ) — (62,653 ) Amortization of fair value adjustments 10,114 — 10,114 25,432 — 25,432 4,643 — 4,643 Changes in fair value - fair value option 30,256 — 30,256 — — — — — — Net incurred losses and LAE $ (196,540 ) $ 5,866 $ (190,674 ) $ (291,710 ) $ 5,829 $ (285,881 ) $ (310,754 ) $ 39,924 $ (270,830 ) Net incurred losses and LAE in the Atrium segment for the years ended December 31, 2017 , 2016 and 2015 were as follows: 2017 2016 2015 Prior Period Current Period Total Prior Period Current Period Total Prior Period Current Period Total Net losses paid $ 31,107 $ 24,571 $ 55,678 $ 24,416 $ 23,582 $ 47,998 $ 30,890 $ 21,145 $ 52,035 Net change in case and LAE reserves (13,324 ) 21,662 8,338 (13,115 ) 12,967 (148 ) (18,213 ) 17,504 (709 ) Net change in IBNR reserves (35,650 ) 43,329 7,679 (20,543 ) 34,243 13,700 (27,382 ) 30,226 2,844 Increase (reduction) in estimates of net ultimate losses (17,867 ) 89,562 71,695 (9,242 ) 70,792 61,550 (14,705 ) 68,875 54,170 Reduction (increase) in provisions for bad debt 89 70 159 — — — — — — Increase (reduction) in provisions for unallocated LAE (442 ) 727 285 (421 ) 566 145 (608 ) 525 (83 ) Amortization of fair value adjustments (2,720 ) — (2,720 ) (3,308 ) — (3,308 ) (6,608 ) — (6,608 ) Net incurred losses and LAE $ (20,940 ) $ 90,359 $ 69,419 $ (12,971 ) $ 71,358 $ 58,387 (21,921 ) $ 69,400 $ 47,479 Net incurred losses and LAE for the years ended December 31, 2017 , 2016 and 2015 were as follows: 2017 2016 2015 Prior Current Total Prior Current Total Prior Current Total Net losses paid $ 252,926 $ 54,867 $ 307,793 $ 199,125 $ 52,128 $ 251,253 $ 149,820 $ 62,739 $ 212,559 Net change in case and LAE reserves (63,785 ) 95,470 31,685 (51,309 ) 124,358 73,049 15,772 61,447 77,219 Net change in IBNR reserves (208,244 ) 184,704 (23,540 ) (156,546 ) 232,189 75,643 (200,730 ) 238,634 37,904 Increase (reduction) in estimates of net ultimate losses (19,103 ) 335,041 315,938 (8,730 ) 408,675 399,945 (35,138 ) 362,820 327,682 Increase (reduction) in provisions for unallocated LAE (6,774 ) 6,587 (187 ) (3,611 ) 7,154 3,543 (683 ) 4,220 3,537 Amortization of fair value adjustments (945 ) — (945 ) (1,895 ) — (1,895 ) (3,535 ) — (3,535 ) Net incurred losses and LAE $ (26,822 ) $ 341,628 $ 314,806 $ (14,236 ) $ 415,829 $ 401,593 $ (39,356 ) $ 367,040 $ 327,684 | |
Schedule of Gross and Net Losses and LAE Reserves by Category | The following tables provides a breakdown of the gross and net losses and LAE reserves by line of business as at December 31, 2017 and 2016 : 2017 2017 Gross Net OLR IBNR Total OLR IBNR Total (in thousands of U.S. dollars) Asbestos $ 366,446 $ 1,434,598 $ 1,801,044 $ 341,355 $ 1,337,467 $ 1,678,822 Environmental 95,801 95,259 191,060 91,049 93,345 184,394 General casualty 344,425 266,526 610,951 276,791 194,747 471,538 Workers' compensation/personal accident 1,458,430 748,949 2,207,379 889,265 371,161 1,260,426 Marine, aviation and transit 109,102 56,284 165,386 90,101 51,904 142,005 Construction defect 28,701 135,608 164,309 27,406 122,307 149,713 Professional indemnity/Directors & Officers 214,803 40,265 255,068 181,027 39,591 220,618 Other 567,995 126,438 694,433 356,424 103,251 459,675 $ 3,185,703 $ 2,903,927 $ 6,089,630 $ 2,253,418 $ 2,313,773 $ 4,567,191 Fair value adjustments (125,998 ) (113,028 ) Fair value adjustments - fair value option (314,748 ) (182,764 ) Deferred charge on retroactive reinsurance — (80,192 ) $ 5,648,884 $ 4,191,207 ULAE 300,588 300,588 Total $ 5,949,472 $ 4,491,795 2016 2016 Gross Net OLR IBNR Total OLR IBNR Total (in thousands of U.S. dollars) Asbestos $ 265,144 $ 584,757 $ 849,901 $ 246,030 $ 569,736 $ 815,766 Environmental 100,128 71,722 171,850 94,311 69,740 164,051 General casualty 428,210 317,613 745,823 300,650 195,393 496,043 Workers' compensation/personal accident 1,389,097 701,616 2,090,713 1,007,528 484,863 1,492,391 Marine, aviation and transit 54,025 35,744 89,769 48,469 35,607 84,076 Construction defect 40,446 121,551 161,997 33,591 90,977 124,568 Professional indemnity/Directors & Officers 110,208 61,663 171,871 92,716 60,626 153,342 Other 310,478 40,993 351,471 253,154 35,166 288,320 $ 2,697,736 $ 1,935,659 $ 4,633,395 $ 2,076,449 $ 1,542,108 $ 3,618,557 Fair value adjustments (135,368 ) (121,483 ) Deferred charge on retroactive reinsurance — (94,551 ) $ 4,498,027 $ 3,402,523 ULAE 218,336 218,336 Total $ 4,716,363 $ 3,620,859 | |
Incurred and Paid Loss Development Information, and IBNR Liabilities and Cumulative Loss Frequency | Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, As of December 31, 2017 Accident Year 2008 (unaudited) 2009 (unaudited) 2010 (unaudited) 2011 (unaudited) 2012 (unaudited) 2013 (unaudited) 2014 (unaudited) 2015 (unaudited) 2016 (unaudited) 2017 IBNR (1) Cumulative Number of Claims 2008 $ 20,277 $ 24,456 $ 45,420 $ 51,927 $ 59,142 $ 63,437 $ 64,982 $ 69,784 $ 66,160 $ 84,811 $ 10,162 3,543 2009 20,081 27,612 48,009 66,202 84,596 86,618 92,084 94,550 112,799 10,570 3,497 2010 34,527 55,916 68,142 93,817 177,344 201,813 215,279 230,288 20,143 5,365 2011 40,109 42,977 68,439 83,854 87,625 86,727 92,802 16,825 3,864 2012 65,494 72,203 82,667 73,218 88,743 104,284 16,766 3,929 2013 60,121 76,526 50,524 53,597 72,586 13,387 2,529 2014 35,789 23,657 25,197 37,628 7,883 1,447 2015 9,478 9,891 14,003 5,500 516 2016 2,319 1,281 868 103 2017 141 115 26 Total $ 750,623 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance For The Years Ended December 31, Accident Year 2008 (unaudited) 2009 (unaudited) 2010 (unaudited) 2011 (unaudited) 2012 (unaudited) 2013 (unaudited) 2014 (unaudited) 2015 (unaudited) 2016 (unaudited) 2017 2008 $ 5,752 $ 12,512 $ 20,372 $ 30,193 $ 40,909 $ 45,447 $ 52,416 $ 54,510 $ 57,625 $ 62,930 2009 4,834 11,384 22,986 41,723 55,455 66,001 73,154 80,004 85,802 2010 6,108 14,462 26,943 41,340 97,854 150,681 179,633 195,858 2011 8,353 17,573 26,839 43,189 55,998 60,809 64,789 2012 12,435 17,787 31,031 42,991 58,717 71,372 2013 2,449 14,311 20,416 29,342 39,996 2014 1,740 5,070 10,300 19,672 2015 744 1,505 3,188 2016 81 147 2017 17 Total $ 543,771 All outstanding liabilities for unpaid losses and LAE prior to 2008, net of reinsurance 264,686 Total outstanding liabilities for unpaid losses and LAE, net of reinsurance $ 471,538 (1) Total of IBNR plus expected development on reported losses. Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, As of December 31, 2017 Accident Year 2008 (unaudited) 2009 (unaudited) 2010 (unaudited) 2011 (unaudited) 2012 (unaudited) 2013 (unaudited) 2014 (unaudited) 2015 (unaudited) 2016 (unaudited) 2017 IBNR (1) Cumulative Number of Claims 2008 $ 4,149 $ 23,865 $ 53,480 $ 58,806 $ 80,673 $ 86,120 $ 83,578 $ 77,421 $ 128,985 $ 128,410 $ 3,666 — 2009 1,205 14,027 25,782 48,547 54,345 58,429 62,705 59,906 57,076 2,238 — 2010 — — — — 793 463 454 485 (3 ) 520 2011 — — — 39,854 43,180 41,508 40,602 1,500 2,003 2012 — — 59,123 69,319 67,098 65,893 3,254 2,281 2013 — 47,164 62,259 57,983 61,785 8,724 1,922 2014 7,374 4,903 5,496 3,760 2,417 439 2015 198 4,925 8,789 2,216 26 2016 42 — — 1 2017 58 — 2 $ 366,858 (1) Total of IBNR plus expected development on reported losses. Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance For The Years Ended December 31, Accident Year 2008 (unaudited) 2009 (unaudited) 2010 (unaudited) 2011 (unaudited) 2012 (unaudited) 2013 (unaudited) 2014 (unaudited) 2015 (unaudited) 2016 (unaudited) 2017 2008 $ 179 $ 3,157 $ 11,350 $ 26,799 $ 33,932 $ 40,045 $ 44,913 $ 53,018 $ 107,854 $ 109,032 2009 88 2,604 7,784 17,040 26,023 33,246 37,708 41,053 46,209 2010 — — — — 462 463 456 490 2011 — — — 28,221 32,366 35,061 36,236 2012 — — 33,687 44,410 51,396 54,208 2013 — 18,678 31,063 35,219 44,337 2014 430 717 1,075 1,127 2015 29 198 1,821 2016 — — 2017 37 Total $ 293,497 All outstanding liabilities for unpaid losses and LAE prior to 2008, net of reinsurance 147,257 Total outstanding liabilities for unpaid losses and LAE, net of reinsurance $ 220,618 (1) Total of IBNR plus expected development on reported losses. The following table provides a breakdown of the liability for losses and LAE by line of business for the years ended December 31, 2017 and 2016 for the Atrium segment: 2017 2016 OLR IBNR Total OLR IBNR Total (in thousands of U.S. dollars) Marine, Aviation and Transit $ 24,581 $ 46,138 $ 70,719 $ 25,565 $ 49,369 $ 74,934 Binding Authorities 26,115 51,896 78,011 21,543 41,603 63,146 Reinsurance 14,381 34,489 48,870 11,485 22,178 33,663 Accident and Health 3,716 5,518 9,234 2,913 5,625 8,538 Non-Marine Direct and Facultative 9,570 12,467 22,037 5,873 11,343 17,216 Total $ 78,363 $ 150,508 $ 228,871 $ 67,379 $ 130,118 $ 197,497 Fair value adjustments 9,547 12,503 ULAE 2,455 2,122 Total $ 240,873 $ 212,122 The following tables set forth information about incurred and paid loss development information for the Atrium segment as at December 31, 2017 . The information related to incurred and paid loss development for the years ended December 31, 2008 through 2016 is presented as supplementary information and is therefore unaudited. Information about total IBNR reserves and cumulative loss frequency as at December 31, 2017 , including expected development on reported losses included within the net incurred losses and allocated LAE amounts for the Atrium segment, are set forth in the table below. Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, As of December 31, 2017 Accident Year 2008 (unaudited) 2009 (unaudited) 2010 (unaudited) 2011 (unaudited) 2012 (unaudited) 2013 (unaudited) 2014 (unaudited) 2015 (unaudited) 2016 (unaudited) 2017 IBNR (1) Cumulative Number of Claims 2008 $ 46,002 $ 60,309 $ 60,742 $ 73,128 $ 68,943 $ 67,201 $ 66,701 $ 65,311 $ 63,552 $ 63,081 $ 2,478 266 2009 28,071 40,847 57,959 52,744 51,888 50,246 47,715 46,929 46,542 1,705 294 2010 27,139 65,704 58,465 55,666 50,078 47,871 47,128 45,478 1,900 376 2011 87,325 85,580 78,981 75,384 72,380 70,537 69,341 2,642 561 2012 70,930 64,633 60,804 57,126 54,416 52,995 3,536 756 2013 69,241 71,302 62,166 57,415 53,632 3,985 1,132 2014 70,008 70,275 66,825 61,211 8,570 1,835 2015 70,336 72,234 64,178 15,047 3,070 2016 74,001 76,208 25,036 4,899 2017 91,129 56,376 5,197 Total $ 623,795 (1) Total of IBNR plus expected development on reported losses. Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance For The Years Ended December 31, Accident Year 2008 (unaudited) 2009 (unaudited) 2010 (unaudited) 2011 (unaudited) 2012 (unaudited) 2013 (unaudited) 2014 (unaudited) 2015 (unaudited) 2016 (unaudited) 2017 2008 $ 15,492 $ 37,939 $ 48,558 $ 53,307 $ 56,311 $ 58,193 $ 59,439 $ 60,018 $ 59,546 $ 59,738 2009 12,145 28,002 35,047 38,591 40,631 41,849 42,542 42,833 43,093 2010 11,599 25,421 32,600 36,968 39,486 40,526 41,137 41,713 2011 17,314 40,413 53,018 59,270 63,237 64,607 65,904 2012 11,357 31,762 38,324 42,499 44,807 45,710 2013 14,731 32,383 40,890 43,984 45,884 2014 17,754 34,763 42,114 47,441 2015 12,147 30,009 39,430 2016 13,878 34,988 2017 14,473 Total $ 438,374 All outstanding liabilities for unpaid losses and LAE prior to 2008, net of reinsurance 3,369 Total outstanding liabilities for unpaid losses and LAE, net of reinsurance $ 188,790 Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance For The Years Ended December 31, As of December 31, 2017 Accident Year 2014 (unaudited) 2015 (unaudited) 2016 (unaudited) 2017 IBNR (1) Cumulative Number of Claims 2008 $ — $ — $ — $ — $ — — 2009 — — — — — — 2010 — — — — — — 2011 — — — — — — 2012 — — — — — — 2013 — — — — — — 2014 15,607 17,199 18,291 15,662 2,129 1,061 2015 54,978 55,505 50,102 9,583 2,510 2016 54,630 46,866 12,550 2,468 2017 27,261 17,659 1,783 Total $ 139,891 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance For The Years Ended December 31, Accident Year 2014 (unaudited) 2015 (unaudited) 2016 (unaudited) 2017 2008 $ — $ — $ — $ — 2009 — — — — 2010 — — — — 2011 — — — — 2012 — — — — 2013 — — — — 2014 1,491 6,079 9,279 11,431 2015 6,361 20,194 30,439 2016 8,092 21,329 2017 3,560 Total $ 66,759 All outstanding liabilities for unpaid losses and LAE prior to 2008, net of reinsurance — Total outstanding liabilities for unpaid losses and LAE, net of reinsurance $ 73,132 (1) Total of IBNR plus expected development on reported losses Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance For The Years Ended December 31, As of December 31, 2017 Accident Year 2014 (unaudited) 2015 (unaudited) 2016 (unaudited) 2017 IBNR (1) Cumulative Number of Claims 2008 $ 7,114 $ 7,105 $ 7,112 $ 7,113 $ — 486 2009 10,653 10,554 10,526 10,539 — 657 2010 26,257 23,478 23,344 23,471 211 1,087 2011 25,459 23,838 23,503 23,631 243 2,082 2012 49,820 53,365 53,309 52,110 667 2,498 2013 63,366 56,191 54,163 55,122 249 2,318 2014 52,740 53,415 49,624 56,212 5,439 4,298 2015 73,237 71,311 81,587 7,131 5,868 2016 63,694 61,926 11,258 6,751 2017 87,925 44,629 5,487 Total $ 459,636 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance For The Years Ended December 31, Accident Year 2014 (unaudited) 2015 (unaudited) 2016 (unaudited) 2017 2008 $ 7,081 $ 7,092 $ 7,108 $ 7,108 2009 10,529 10,542 10,523 10,530 2010 20,427 22,482 22,562 22,530 2011 20,185 21,245 22,237 22,484 2012 39,975 44,127 46,028 46,820 2013 29,985 39,370 43,538 45,993 2014 11,146 25,533 33,311 37,794 2015 11,038 31,483 51,454 2016 11,102 34,452 2017 16,527 Total $ 295,692 All outstanding liabilities for unpaid losses and LAE prior to 2008, net of reinsurance — Total outstanding liabilities for unpaid losses and LAE, net of reinsurance $ 163,944 (1) Total of IBNR plus expected development on reported losses The following table provides a breakdown of the liability for losses and LAE reserves by line of business as at December 31, 2017 and 2016 : 2017 2016 OLR IBNR Total OLR IBNR Total (in thousands of U.S. dollars) Casualty $ 139,200 $ 282,789 $ 421,989 $ 101,897 $ 279,823 $ 381,720 Marine 130,962 118,375 249,337 102,957 94,396 197,353 Property 208,777 89,963 298,740 182,480 57,184 239,664 Aerospace 63,920 26,070 89,990 66,190 30,921 97,111 Workers' Compensation 48,118 82,024 130,142 48,591 78,981 127,572 Total $ 590,977 $ 599,221 $ 1,190,198 $ 502,115 $ 541,305 $ 1,043,420 Fair value adjustments (555 ) (863 ) ULAE 18,100 16,825 Total $ 1,207,743 $ 1,059,382 The following tables set forth information about incurred and paid loss development, total IBNR reserves and cumulative loss frequency related to all the individual lines of business within the StarStone segment as at December 31, 2017 . The information related to incurred and paid loss development for the years ended December 31, 2014 through 2016 is presented as supplementary information and is therefore unaudited. The information within the tables below is presented on a prospective basis from the date of our acquisition of StarStone on April 1, 2014 since providing pre-acquisition incurred and paid losses by accident year for years prior to 2014 was determined to be impracticable due to significant data limitations. Casualty Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance For The Years Ended December 31, As of December 31, 2017 Accident Year 2014 (unaudited) 2015 (unaudited) 2016 (unaudited) 2017 IBNR (1) Cumulative Number of Claims 2008 $ 7,759 $ 7,734 $ 7,740 $ 7,733 $ — 491 2009 21,096 21,158 21,158 21,162 — 496 2010 15,972 18,026 18,113 18,974 178 734 2011 20,964 23,948 24,665 25,211 713 2,043 2012 57,413 48,530 44,003 39,388 2,381 3,100 2013 74,312 69,537 79,689 78,573 7,002 4,952 2014 92,236 93,687 93,325 90,663 18,892 5,336 2015 108,762 112,430 111,582 36,723 3,950 2016 103,057 100,301 49,588 3,722 2017 96,294 73,042 3,594 Total $ 589,881 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance For The Years Ended December 31, Accident Year 2014 (unaudited) 2015 (unaudited) 2016 (unaudited) 2017 2008 $ 7,759 $ 7,734 $ 7,740 $ 7,733 2009 21,096 21,158 21,158 21,162 2010 15,809 18,026 18,113 18,796 2011 15,850 21,200 23,930 24,497 2012 18,514 29,613 32,805 34,074 2013 23,210 30,675 50,427 54,989 2014 5,803 22,041 37,793 51,012 2015 8,779 28,230 50,072 2016 4,856 34,214 2017 6,761 Total $ 303,310 All outstanding liabilities for unpaid losses and LAE prior to 2008, net of reinsurance 18 Total outstanding liabilities for unpaid losses and LAE, net of reinsurance $ 286,589 (1) Total of IBNR plus expected development on reported losses Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance For The Years Ended December 31, As of December 31, 2017 Accident Year 2014 (unaudited) 2015 (unaudited) 2016 (unaudited) 2017 IBNR (1) Cumulative Number of Claims 2008 $ 48,894 $ 49,135 $ 49,163 $ 49,158 $ — 740 2009 28,946 28,417 28,826 29,070 — 1,100 2010 75,670 74,491 73,332 73,395 — 1,698 2011 92,107 90,708 90,646 90,364 — 1,688 2012 65,529 62,398 61,594 62,332 284 1,574 2013 76,665 66,079 65,885 65,146 868 1,946 2014 63,673 44,317 44,955 45,382 1,927 2,114 2015 79,339 77,695 71,391 1,717 5,563 2016 74,134 80,379 3,698 6,525 2017 105,672 30,785 6,036 Total $ 672,289 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance For The Years Ended December 31, Accident Year 2014 (unaudited) 2015 (unaudited) 2016 (unaudited) 2017 2008 $ 48,894 $ 49,135 $ 49,163 $ 49,158 2009 28,382 28,420 28,829 29,070 2010 70,293 73,213 73,332 73,395 2011 88,327 89,561 90,103 90,364 2012 48,588 52,705 55,061 56,079 2013 31,433 46,983 51,915 54,040 2014 5,537 18,998 33,199 36,213 2015 10,467 29,060 55,956 2016 23,386 49,730 2017 24,715 Total $ 518,720 All outstanding liabilities for unpaid losses and LAE prior to 2008, net of reinsurance 858 Total outstanding liabilities for unpaid losses and LAE, net of reinsurance $ 154,427 (1) Total of IBNR plus expected development on reported losses Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance For The Years Ended December 31, As of December 31, 2017 Accident Year 2014 (unaudited) 2015 (unaudited) 2016 (unaudited) 2017 IBNR (1) Cumulative Number of Claims 2008 $ — $ — $ — $ — $ — — 2009 — — — — — — 2010 18,269 18,430 18,741 19,258 66 569 2011 58,954 57,436 57,833 58,268 192 2,173 2012 56,144 55,765 56,586 56,552 172 2,393 2013 72,762 70,535 70,820 75,228 348 2,324 2014 65,526 54,077 53,751 52,593 1,087 2,380 2015 66,078 69,843 73,125 2,642 2,252 2016 30,718 35,540 4,141 1,725 2017 19,036 8,407 882 Total $ 389,600 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance For The Years Ended December 31, Accident Year 2014 (unaudited) 2015 (unaudited) 2016 (unaudited) 2017 2008 $ — $ — $ — $ — 2009 — — — — 2010 15,743 16,890 17,497 18,566 2011 53,956 55,321 56,002 56,584 2012 46,219 49,665 52,502 53,982 2013 51,098 60,118 63,723 69,071 2014 17,375 31,309 38,605 40,865 2015 32,415 52,407 61,081 2016 10,193 24,904 2017 6,711 Total $ 331,764 All outstanding liabilities for unpaid losses and LAE prior to 2008, net of reinsurance — Total outstanding liabilities for unpaid losses and LAE, net of reinsurance $ 57,836 (1) Total of IBNR plus expected development on reported losses | |
Reconciliation of Incurred and Paid Loss Development to Liability for Unpaid Losses and LAE | The reconciliation of incurred and paid loss development to the liability for unpaid losses and LAE as presented in the tables above for the year ended December 31, 2017 is set forth below: December 31, 2017 Liabilities for unpaid losses and allocated LAE, net of reinsurance $ 1,260,426 Reinsurance recoverable on unpaid losses 946,953 Gross liability for unpaid losses and LAE before unallocated loss adjustment expenses and fair value adjustments $ 2,207,379 The reconciliation of incurred and paid loss development to the liability for unpaid losses and LAE as presented in the tables above for the year ended December 31, 2017 is set forth below: December 31, 2017 Liabilities for unpaid losses and allocated LAE, net of reinsurance $ 471,538 Reinsurance recoverable on unpaid losses 139,413 Gross liability for unpaid losses and LAE before unallocated loss adjustment expenses and fair value adjustments $ 610,951 The reconciliation of incurred and paid loss development to the liability for unpaid losses and LAE as presented in the tables above for the year ended December 31, 2017 is set forth below: December 31, Liabilities for unpaid losses and allocated LAE, net of reinsurance $ 220,618 Reinsurance recoverable on unpaid losses 34,450 Gross liability for unpaid losses and LAE before unallocated loss adjustment expenses and fair value adjustments $ 255,068 The reconciliation of incurred and paid loss development to the liability for unpaid losses and LAE as presented in the tables above for the Atrium segment for the year ended December 31, 2017 is set forth below: December 31, 2017 Liabilities for unpaid losses and allocated LAE, net of reinsurance $ 188,790 Reinsurance recoverable on unpaid losses 40,081 Gross liability for unpaid losses and LAE before unallocated loss adjustment expenses and fair value adjustments $ 228,871 The reconciliation of incurred and paid loss development to the liability for unpaid losses and LAE as presented in the tables above for the year ended December 31, 2017 is set forth below: December 31, 2017 Liabilities for unpaid losses and allocated LAE, net of reinsurance $ 286,589 Reinsurance recoverable on unpaid losses 135,400 Gross liability for unpaid losses and LAE before unallocated loss adjustment expenses and fair value adjustments $ 421,989 The reconciliation of incurred and paid loss development to the liability for unpaid losses and LAE as presented in the tables above for the year ended December 31, 2017 is set forth below: December 31, 2017 Liabilities for unpaid losses and allocated LAE, net of reinsurance $ 163,944 Reinsurance recoverable on unpaid losses 85,393 Gross liability for unpaid losses and LAE before unallocated loss adjustment expenses and fair value adjustments $ 249,337 The reconciliation of incurred and paid loss development to the liability for unpaid losses and LAE as presented in the tables above for the year ended December 31, 2017 is set forth below: December 31, 2017 Liabilities for unpaid losses and allocated LAE, net of reinsurance $ 73,132 Reinsurance recoverable on unpaid losses 57,010 Gross liability for unpaid losses and LAE before unallocated loss adjustment expenses and fair value adjustments $ 130,142 The reconciliation of incurred and paid loss development to the liability for unpaid losses and LAE as presented in the tables above for the year ended December 31, 2017 is set forth below: December 31, 2017 Liabilities for unpaid losses and allocated LAE, net of reinsurance $ 57,836 Reinsurance recoverable on unpaid losses 32,154 Gross liability for unpaid losses and LAE before unallocated loss adjustment expenses and fair value adjustments $ 89,990 The table below provides a reconciliation of the beginning and ending liability for losses and LAE for the years ended December 31, 2017 , 2016 and 2015: 2017 2016 2015 Balance as at January 1 $ 1,059,382 $ 933,678 $ 861,800 Less: reinsurance reserves recoverable 357,231 299,783 325,209 Net balance as at January 1 702,151 633,895 536,591 Net incurred losses and LAE: Current period 341,628 415,829 367,040 Prior periods (26,822 ) (14,236 ) (39,356 ) Total net incurred losses and LAE 314,806 401,593 327,684 Net paid losses: Current period (54,867 ) (52,128 ) (62,739 ) Prior periods (252,926 ) (199,125 ) (149,820 ) Total net paid losses (307,793 ) (251,253 ) (212,559 ) Effect of exchange rate movement 15,169 (15,984 ) (17,821 ) Acquired on purchase of subsidiaries — — — Assumed business 31,393 — — Ceded business — (66,100 ) — Net balance as at December 31 755,726 702,151 633,895 Plus: reinsurance reserves recoverable 452,017 357,231 299,783 Balance as at December 31 $ 1,207,743 $ 1,059,382 $ 933,678 The reconciliation of incurred and paid loss development to the liability for unpaid losses and LAE as presented in the tables above for the year ended December 31, 2017 is set forth below: December 31, 2017 Liabilities for unpaid losses and allocated LAE, net of reinsurance $ 154,427 Reinsurance recoverable on unpaid losses 144,313 Gross liability for unpaid losses and LAE before unallocated loss adjustment expenses and fair value adjustments $ 298,740 | |
Average Annual Duration of Claims | The following is unaudited supplementary information for average annual historical duration of claims: Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Professional indemnity/ Directors & Officers 15.1 % 4.1 % 12.7 % 10.5 % 11.4 % 5.7 % 4.8 % 6.4 % 9.0 % 0.9 % The following is unaudited supplementary information for average annual historical duration of claims: Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Workers' compensation 18.1 % 23.1 % 17.3 % 12.3 % 5.4 % 4.2 % 3.0 % 2.5 % 1.1 % 1.8 % The following is unaudited supplementary information for average annual historical duration of claims within the Atrium segment: Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Atrium 23.2 % 37.09 % 15.11 % 8.02 % 4.72 % 2.31 % 1.67 % 0.94 % 0.56 % 0.3 % The following is unaudited supplementary information for average annual historical duration of claims: Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Casualty 6.6 % 21.5 % 15.5 % 22.4 % 11.9 % 8.7 % 1.0 % 1.1 % 0.1 % — % The following is unaudited supplementary information for average annual historical duration of claims: Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Marine 16.8 % 29.5 % 18.4 % 7.8 % 4.2 % 4.8 % 0.5 % — % 0.1 % — % The following is unaudited supplementary information for average annual historical duration of claims: Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Property 22.4 % 29.5 % 30.9 % 6.9 % 2.8 % 2.1 % 0.2 % 0.7 % 0.4 % — % The following is unaudited supplementary information for average annual historical duration of claims: Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Aerospace 36.1 % 31.7 % 12.6 % 5.1 % 4.8 % 3.2 % 1.4 % 1.8 % — % — % The following is unaudited supplementary information for average annual historical duration of claims: Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Workers' compensation 14.3 % 28.4 % 13.6 % 4.6 % — % — % — % — % — % — % | The following is unaudited supplementary information for average annual historical duration of claims: Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 General casualty 6.64 % 8.29 % 10.25 % 14.39 % 15.49 % 10.99 % 7.85 % 5.2 % 4.41 % 6.26 % |
Carrying Amount of Liability and Aggregate Amount of Discount | The following table includes the carrying amount of the liability for unpaid losses and LAE, net of reinsurance reported at fair value, the discount rates used to discount the liabilities and the related aggregate amount of the discount as at December 31, 2017 and the interest accretion for the year ended December 31, 2017 , recorded within net incurred losses and LAE in our consolidated statements of earnings: As at December 31, 2017 For the Year Ended December 31, 2017 Line of business Carrying value Discount rate Aggregate amount of discount Interest Accretion Asbestos $ 712,890 2.3% $ 222,138 $ 18,637 Environmental 1,003 2.0% 122 10 General casualty 120,480 2.8% 28,233 3,751 Workers' compensation/personal accident 69,266 3.0% 19,497 4,142 Marine, aviation and transit 71,138 2.0% 9,520 799 Construction defect 38,819 2.9% 5,513 1,171 Other 145,013 2.0% 18,827 1,716 ULAE 93,836 3.0% 25,953 3,621 Total $ 1,252,445 $ 329,803 $ 33,847 | |