Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 31, 2020 | |
Document and Entity Information | ||
Entity Registrant Name | Sirius International Insurance Group, Ltd. | |
Entity Central Index Key | 0001744894 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2020 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 115,299,341 | |
Entity Interactive Data Current | Yes | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Fixed maturity investments, trading, at fair value (Amortized cost 2020: $1,877.7; 2019: $1,656.6) | $ 1,904.7 | $ 1,681 |
Short-term investments, at fair value (Amortized cost 2020: $1,044.5; 2019: $1,090.8) | 1,038.8 | 1,085.2 |
Equity securities, trading, at fair value (Cost 2020: $178.1; 2019: $379.2) | 149.9 | 405.2 |
Other long-term investments, at fair value (Cost 2020: $324.7; 2019: $315.4) | 368.1 | 346.8 |
Cash | 186.7 | 136.3 |
Restricted cash | 18 | 14.3 |
Total investments and cash | 3,666.2 | 3,668.8 |
Accrued investment income | 11 | 11.2 |
Insurance and reinsurance premiums receivable | 871.7 | 730.1 |
Reinsurance recoverable on unpaid losses | 442.2 | 410.3 |
Reinsurance recoverable on paid losses | 106.1 | 73.9 |
Funds held by ceding companies | 254.7 | 293.9 |
Ceded unearned insurance and reinsurance premiums | 201.9 | 162 |
Deferred acquisition costs | 159.1 | 148.2 |
Deferred tax asset | 179.7 | 166.7 |
Accounts receivable on unsettled investment sales | 34.4 | 6.7 |
Goodwill | 400.8 | 400.8 |
Intangible assets | 171.9 | 179.8 |
Other assets | 153.8 | 161.4 |
Assets held for sale | 10.5 | 0 |
Total assets | 6,664 | 6,413.8 |
Liabilities | ||
Loss and loss adjustment expense reserves | 2,515.1 | 2,331.5 |
Unearned insurance and reinsurance premiums | 874.5 | 708 |
Ceded reinsurance payable | 314.9 | 244.7 |
Funds held under reinsurance treaties | 145.3 | 169.1 |
Deferred tax liability | 207.9 | 205.9 |
Debt | 684.9 | 685.2 |
Accounts payable on unsettled investment purchases | 11.3 | 2.3 |
Other liabilities | 181.7 | 201.3 |
Total liabilities | 4,935.6 | 4,548 |
Commitments and contingencies (see Note 19) | ||
Mezzanine equity | ||
Series B preference shares | 206.2 | 223 |
Common shareholders' equity | ||
Common shares (shares issued and outstanding, 2020 & 2019: 115,299,341) | 1.2 | 1.2 |
Additional paid-in surplus | 1,102.4 | 1,098.2 |
Retained earnings | 660 | 778.5 |
Accumulated other comprehensive (loss) | (243.9) | (237.5) |
Total common shareholders' equity | 1,519.7 | 1,640.4 |
Non-controlling interests | 2.5 | 2.4 |
Total equity | 1,522.2 | 1,642.8 |
Total liabilities, mezzanine equity, and equity | $ 6,664 | $ 6,413.8 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Fixed maturity investments, trading, amortized cost | $ 1,877.7 | $ 1,656.6 |
Short-term investments, amortized cost | 1,044.5 | 1,090.8 |
Equity securities, at cost | 178.1 | 379.2 |
Other long-term investments, cost | $ 324.7 | $ 315.4 |
Shares issued (in shares) | 115,299,341 | 115,299,341 |
Shares outstanding (in shares) | 115,299,341 | 115,299,341 |
Consolidated Statements of (Los
Consolidated Statements of (Loss) Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenues | ||||
Net earned insurance and reinsurance premiums | $ 369.8 | $ 370.7 | $ 804.5 | $ 682.6 |
Net investment income | 14.8 | 24.4 | 28.3 | 44.5 |
Net realized investment gains | 7.1 | 15.6 | 27.4 | 24.6 |
Net unrealized investment gains (losses) | 8.7 | 15.5 | (35.1) | 89.5 |
Net foreign exchange (losses) gains | (16.1) | (0.6) | 2.4 | 4.5 |
Other revenue | 10.2 | 15.4 | 14.5 | 35 |
Total revenues | 394.5 | 441 | 842 | 880.7 |
Expenses | ||||
Loss and loss adjustment expenses | 240.3 | 278 | 667.4 | 461.9 |
Insurance and reinsurance acquisition expenses | 78.1 | 77 | 152.8 | 140.3 |
Other underwriting expenses | 36.3 | 35.5 | 74.3 | 70.8 |
General and administrative expenses | 23.9 | 28.2 | 56 | 52.6 |
Intangible asset amortization expenses | 4 | 4 | 7.9 | 7.9 |
Interest expense on debt | 7.9 | 8 | 15.7 | 15.6 |
Total expenses | 390.5 | 430.7 | 974.1 | 749.1 |
Pre-tax income (loss) | 4 | 10.3 | (132.1) | 131.6 |
Income tax (expense) benefit | (11.2) | (2.1) | 3.6 | (19.3) |
Net (loss) income | (7.2) | 8.2 | (128.5) | 112.3 |
Loss (income) attributable to non-controlling interests | 0.2 | (0.8) | 0 | (1.2) |
(Loss) income attributable to Sirius Group | (7) | 7.4 | (128.5) | 111.1 |
Change in carrying value of Series B preference shares | (6.6) | (0.8) | 16.8 | (9.2) |
Net (loss) income attributable to Sirius Group's common shareholders | $ (13.6) | $ 6.6 | $ (111.7) | $ 101.9 |
Net (loss) income per common share and common share equivalent | ||||
Basic earnings per common share and common share equivalent (in dollars per share) | $ (0.12) | $ 0.05 | $ (0.97) | $ 0.80 |
Diluted earnings per common share and common share equivalent (in dollars per share) | $ (0.12) | $ 0.05 | $ (1.01) | $ 0.80 |
Weighted average number of common shares and common share equivalents outstanding: | ||||
Basic weighted average number of common shares and common share equivalents outstanding (in shares) | 115,278,176 | 115,243,685 | 115,269,720 | 115,212,772 |
Diluted weighted average number of common shares and common share equivalents outstanding (in shares) | 115,278,176 | 115,796,367 | 127,171,390 | 127,542,402 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Comprehensive (loss) income | ||||
Net (loss) income | $ (7.2) | $ 8.2 | $ (128.5) | $ 112.3 |
Other comprehensive income (loss) | ||||
Change in foreign currency translation, net of tax | 57 | 1.1 | (6.4) | (26.7) |
Total other comprehensive income (loss) | 57 | 1.1 | (6.4) | (26.7) |
Comprehensive income (loss) | 49.8 | 9.3 | (134.9) | 85.6 |
Net loss (income) attributable to non-controlling interests | 0.2 | (0.8) | 0 | (1.2) |
Comprehensive income (loss) attributable to Sirius Group | $ 50 | $ 8.5 | $ (134.9) | $ 84.4 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions | Total | Common shares | Additional paid-in surplus | Retained earnings | Accumulated other comprehensive (loss) | Parent | Non-controlling interests | Cumulative effect, period of adoptionRetained earnings | Adjusted balanceRetained earnings |
Beginning balance at Dec. 31, 2018 | $ 1.2 | $ 1,089.1 | $ 816.6 | $ (202.4) | $ 0 | $ 816.6 | |||
Changes in common shareholders' equity | |||||||||
Share-based compensation | 4.5 | ||||||||
Other, net | (0.1) | ||||||||
Net (loss) income | $ 112.3 | 112.3 | |||||||
Loss (income) attributable to non-controlling interests | (1.2) | (1.2) | |||||||
Change in carrying value of Series B preference shares | (9.2) | ||||||||
Other, net | 0 | ||||||||
Net change in foreign currency translation | (26.7) | (26.7) | |||||||
Ending balance at Jun. 30, 2019 | 1,787.1 | 1,093.5 | 918.5 | (229.1) | $ 1,784.1 | $ 3 | |||
Beginning balance at Mar. 31, 2019 | 1.2 | 1,090.2 | 911.8 | (230.2) | 0 | 911.8 | |||
Changes in common shareholders' equity | |||||||||
Share-based compensation | 3.3 | ||||||||
Other, net | 0 | ||||||||
Net (loss) income | 8.2 | 8.2 | |||||||
Loss (income) attributable to non-controlling interests | (0.8) | (0.8) | |||||||
Change in carrying value of Series B preference shares | (0.8) | ||||||||
Other, net | 0.1 | ||||||||
Net change in foreign currency translation | 1.1 | 1.1 | |||||||
Ending balance at Jun. 30, 2019 | 1,787.1 | 1,093.5 | 918.5 | (229.1) | 1,784.1 | 3 | |||
Beginning balance at Dec. 31, 2019 | 1,642.8 | 1.2 | 1,098.2 | 778.5 | (237.5) | (6.8) | 771.7 | ||
Changes in common shareholders' equity | |||||||||
Share-based compensation | 4.2 | ||||||||
Other, net | 0 | ||||||||
Net (loss) income | (128.5) | (128.5) | |||||||
Loss (income) attributable to non-controlling interests | 0 | 0 | |||||||
Change in carrying value of Series B preference shares | 16.8 | ||||||||
Other, net | 0 | ||||||||
Net change in foreign currency translation | (6.4) | (6.4) | |||||||
Ending balance at Jun. 30, 2020 | 1,522.2 | 1,102.4 | 660 | (243.9) | 1,519.7 | 2.5 | |||
Beginning balance at Mar. 31, 2020 | $ 1.2 | 1,100.1 | 673.7 | (300.9) | $ 0 | $ 673.7 | |||
Changes in common shareholders' equity | |||||||||
Share-based compensation | 2.3 | ||||||||
Other, net | 0 | ||||||||
Net (loss) income | (7.2) | (7.2) | |||||||
Loss (income) attributable to non-controlling interests | 0.2 | 0.2 | |||||||
Change in carrying value of Series B preference shares | (6.6) | ||||||||
Other, net | (0.1) | ||||||||
Net change in foreign currency translation | 57 | 57 | |||||||
Ending balance at Jun. 30, 2020 | $ 1,522.2 | $ 1,102.4 | $ 660 | $ (243.9) | $ 1,519.7 | $ 2.5 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operations: | ||
Net (loss) income | $ (128.5) | $ 112.3 |
Adjustments to reconcile net income to net cash provided from operations: | ||
Net realized and unrealized investment losses (gains) | 7.7 | (114.1) |
Amortization of premium on fixed maturity investments | 2 | (3.2) |
Amortization of intangible assets | 7.9 | 7.9 |
Depreciation and other amortization | 3.3 | 4.3 |
Share-based compensation | 4.2 | 4.5 |
Revaluation of contingent consideration | 0.3 | 0 |
Other operating items: | ||
Net change in loss and loss adjustment expense reserves | 184 | 46.6 |
Net change in reinsurance recoverable on paid and unpaid losses | (64.4) | (36) |
Net change in funds held by ceding companies | 38.4 | (54.7) |
Net change in unearned insurance and reinsurance premiums | 162 | 252.6 |
Net change in ceded reinsurance payable | 61.8 | 50.4 |
Net change in ceded unearned insurance and reinsurance premiums | (37.3) | (35.8) |
Net change in insurance and reinsurance premiums receivable | (138.9) | (252) |
Net change in deferred acquisition costs | (11) | (20.2) |
Net change in funds held under reinsurance treaties | (23) | 18.4 |
Net change in current and deferred income taxes, net | (1.5) | 4.2 |
Net change in other assets and liabilities, net | 5.4 | 29.8 |
Net cash provided from operations | 72.4 | 15 |
Cash flows from investing activities: | ||
Net change in short-term investments | 61.7 | |
Net change in short-term investments | (160.2) | |
Sales of fixed maturities and convertible fixed maturity investments | 309.9 | 241.9 |
Maturities, calls, and paydowns of fixed maturity and convertible fixed maturity investments | 132.8 | 154.7 |
Sales of common equity securities | 663.7 | 152.2 |
Distributions, redemptions, and maturities of other long-term investments | 19.6 | 33.6 |
Return of principal on loan participations | 0.1 | 0 |
Contributions to other long-term investments | (26) | (41.3) |
Purchases of common equity securities | (473.4) | (125.8) |
Purchases of fixed maturities and convertible fixed maturity investments | (673.1) | (270.9) |
Purchases of loan participation | (7.4) | 0 |
Net change in unsettled investment purchases and sales | (19.7) | 2.4 |
Other, net | (1.6) | 0.6 |
Net cash (used for) investing activities | (13.4) | (12.8) |
Cash flows from financing activities: | ||
Payment of contingent consideration | (5.5) | 0 |
Change in collateral held on Interest Rate Cap | 0 | (0.1) |
Net cash (used for) financing activities | (5.5) | (0.1) |
Effect of exchange rate changes on cash | 0.8 | (3.8) |
Net increase (decrease) in cash during period | 54.3 | (1.7) |
Cash, restricted cash, and cash held for sale balance at beginning of period | 150.6 | 132.2 |
Cash, restricted cash, and cash held for sale balance at end of period | $ 204.9 | $ 130.5 |
General
General | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | General Sirius International Insurance Group, Ltd. ("the Company") is a Bermuda exempted company that provides multi-line insurance and reinsurance on a worldwide basis through its subsidiaries (collectively with the Company, "Sirius Group"). |
Summary of significant accounti
Summary of significant accounting policies | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | Summary of significant accounting policies Basis of presentation The accompanying Unaudited Consolidated Financial Statements at June 30, 2020 , have been prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP") and the rules and regulations of the U.S. Securities and Exchange Commission ("SEC") for interim financial information. The accompanying Unaudited Consolidated Financial Statements present the consolidated results of operations, financial condition, and cash flows of the Company and its subsidiaries and those entities in which the Company has control and a majority economic interest as well as those variable interest entities ("VIEs") that meet the requirements for consolidation. All significant intercompany transactions have been eliminated in consolidation. These Unaudited Consolidated Financial Statements do not include all disclosures normally included in annual financial statements prepared in accordance with GAAP and should be read in conjunction with the Audited Consolidated Financial Statements and the related notes for the year ended December 31, 2019 . The consolidated financial information as of December 31, 2019 included herein has been derived from the Audited Consolidated Financial Statements as of December 31, 2019 . Effective January 1, 2020, the Company changed its reportable segments. The change in reportable segments had no impact on the Company’s historical consolidated financial positions, results of operations or cash flows as previously reported. Where applicable, all prior periods presented have been revised to conform to this new presentation. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In the opinion of management, the accompanying Unaudited Consolidated Financial Statements reflect all adjustments (consisting of normally recurring accruals) necessary for a fair statement of results on an interim basis. Tabular dollar amounts are in millions, with the exception of share and per share amounts. All amounts are reported in U.S. dollars, except where noted otherwise. Recently adopted changes in accounting principles Credit losses Effective January 1, 2020, Sirius Group adopted Accounting Standards Update ("ASU") 2016-13, Measurement of Credit Losses on Financial Instruments (ASC 326), which establishes new guidance for the recognition of credit losses for financial assets measured at amortized cost ("current expected credit losses" or "CECL"). The guidance applies to financial assets that have the contractual right to receive cash, including reinsurance receivables and recoverables and requires reporting entities to estimate the credit losses expected over the life of a credit exposure using historical information, current information and reasonable and supportable forecasts that affect the collectability of the financial asset. The expected credit losses, and subsequent adjustments to such losses, are recorded through an allowance account that is 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. Sirius Group adopted the new guidance using a modified retrospective transition method through a cumulative-effect adjustment to retained earnings. As a result of the adoption of the new guidance, Sirius Group estimated a total CECL allowance of $ 14.9 million. The adoption of this guidance did not materially impact our results of operations or cash flows. Due to the adoption of the standard using the retrospective cumulative-effect adjustment method, the Company recorded $ (6.8) million cumulative-effect adjustment net of taxes to its opening retained earnings. (See Note 7 .) Fair Value Measurement Disclosures Effective January 1, 2020, Sirius Group adopted ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement , which modifies the disclosure requirements of fair value measurements. The adoption of this guidance did not have any impact on the consolidated financial statements but expanded disclosure of the ranges and weighted averages of significant unobservable inputs used in Level 3 fair values. (See Note 9 .) Simplifying the Accounting for Income Taxes Effective January 1, 2020, Sirius Group adopted ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which eliminates certain exceptions, and clarifies and simplifies certain aspects of accounting for income taxes. Sirius Group has fully adopted all provisions of the guidance with consideration of the various transition methods. Sirius Group adopted the removal of the exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. The removal of this exception allowed Sirius Group to record a benefit for a year-to-date loss in excess of its forecasted loss in certain jurisdictions. The removal of this exception was applied prospectively to the Income tax benefit (expense) line on the Consolidated Statements of (Loss) Income. Sirius Group adopted all other provisions in the guidance, including the requirement for an entity to recognize a franchise tax (or similar tax) that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based tax through a cumulative-effect adjustment to retained earnings. These provisions did not have a material impact on the Consolidated Financial Statements or were not applicable to Sirius Group. Significant accounting policies Long-Lived Assets Classified as Held for Sale A long-lived asset or a disposal group classified as held for sale (but not qualifying for presentation as a discontinued operation in the Consolidated Financial Statements) is presented separately in the Consolidated Balance Sheets and is measured at the lower of its carrying amount or fair value less cost to sell. The assets and liabilities of a disposal group classified as held for sale are presented separately in the asset and liability sections, respectively, of the Consolidated Balance Sheets and are not netted. The major classes of assets and liabilities classified as held for sale are separately disclosed in the notes to financial statements. (See Note 3 .) |
Significant transactions
Significant transactions | 6 Months Ended |
Jun. 30, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Significant transactions | Significant transactions Empire Insurance Company On July 7, 2020, Sirius Group sold 100% of the common shares of Empire Insurance Company (“Empire”) to Physicians' Reciprocal Insurers (the “Empire Transaction”). As of June 30, 2020, the assets related to Empire have been classified as held for sale in the Consolidated Balance Sheets. The following table summarizes the major categories of assets classified as held for sale related to the Empire Transaction as of June 30, 2020 and December 31, 2019 : (Millions) June 30, 2020 December 31, 2019 Short-term investments, at fair value $ 9.3 $ — Cash 0.2 — Accounts receivable on unsettled investment sales 1.0 — Total assets held for sale $ 10.5 $ — Loss portfolio transfer On January 23, 2020, Sirius Group consummated a loss portfolio transfer with Pacific Re, Inc. Under the agreement, Sirius Group received $ 69.7 million in cash and assumed net undiscounted loss and loss adjustment expenses ("LAE") reserves with the same value. In addition, Sirius Group recognized Gross written premium and Loss and loss adjustment expenses for $ 69.7 million. As part of closing on the loss portfolio transfer, an estimate of net paid losses was included. Sixty days after the closing, actual net paid losses were determined and Sirius Group paid back $0.4 million in cash to Pacific Re, Inc. and reduced assumed net undiscounted loss and LAE reserves by the same value. In addition, Sirius Group adjusted Gross written premium and Loss and loss adjustment expenses by $(0.4) million. |
Segment information
Segment information | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment information | Segment information On December 31, 2019, Sirius Group completed an internal reorganization and beginning on January 1, 2020, Sirius Group's reportable segments consist of four reportable segments – Global Reinsurance, Global Accident & Health ("Global A&H"), U.S. Specialty, and Runoff & Other. The accounting policies of the reportable segments are the same as those used for the preparation of the Company's consolidated financial statements. The Company's Global Reinsurance, Global A&H, U.S. Specialty, and Runoff & Other reportable segments each have managers who are responsible for the overall profitability of their respective segments and who are directly accountable to the Company's chief operating decision maker, the Chief Executive Officer ("CEO") of the Company. The CEO assesses segment operating performance, allocates capital, and makes resource allocation decisions based on Technical income (loss), Underwriting income (loss), and Underwriting profit (loss), including net service fee revenue. Segment results are shown prior to corporate eliminations. Corporate eliminations are shown to reconcile to consolidated Technical profit (loss), consolidated Underwriting income (loss) and consolidated Underwriting income (loss), including net service fee revenue. Sirius Group does not allocate its assets by segment, with the exception of goodwill and intangible assets, and, accordingly, investment income is not allocated to each segment. The internal reorganization had no impact to the allocation of goodwill and intangible assets to the Global A&H segment. Where applicable, all prior periods presented have been revised to conform to this new presentation. Global Reinsurance Global Reinsurance consists of Sirius Group's underwriting lines of business that offer Other Property, Property Catastrophe Excess Reinsurance, Agriculture Reinsurance, Aviation & Space, Marine & Energy, Trade Credit, Contingency, and Casualty Reinsurance: Other Property —Sirius Group participates in the broker market for property reinsurance treaties written on a proportional and excess of loss basis. For Sirius Group's international business, the book consists of treaty, written on both a proportional and excess of loss basis, facultative, and primary business, primarily in Europe, Asia and Latin America. In the United States, the book predominantly centers on significant participations on proportional and excess of loss treaties mostly in the excess and surplus lines segment of the market. Property Catastrophe Excess Reinsurance —Property catastrophe excess of loss reinsurance treaties cover losses from catastrophic events. Sirius Group writes a worldwide book with the largest concentration of exposure in Europe and the United States. The U.S. book written in Bermuda has a national account focus supporting principally the lower and/or middle layers of large capacity programs. Additionally, Stockholm writes a U.S. book mainly consisting of select small regional and standard lines carriers. The exposures written in the international book are diversified across many countries, regions, perils and layers. Agriculture Reinsurance —Sirius Group provides stop-loss reinsurance coverage to companies writing U.S. government-sponsored multi-peril crop insurance ("MPCI"). Sirius Group's participation is net of the government's stop-loss reinsurance protection. Sirius Group also provides coverage for crop-hail and certain named perils when bundled with MPCI business. Sirius Group also writes agriculture business outside of the United States. Aviation & Space —Sirius Group provides aviation insurance that covers loss of or damage to an aircraft and the aircraft operations' liability to passengers, cargo and hull as well as to third parties. Additionally, liability arising out of non-aircraft operations such as hangars, airports and aircraft products can be covered. Space insurance primarily covers loss of or damage to a satellite during launch and in orbit. The book consists of treaty, written on both a proportional and excess of loss basis, facultative, and primary business. Marine & Energy —Sirius Group provides marine & energy reinsurance, primarily written on an excess of loss and proportional basis. Coverage offered includes damage to ships and goods in transit, marine liability lines, and offshore energy industry insurance. Sirius Group also writes yacht business, both on reinsurance and a primary basis. The marine & energy portfolio is diversified across many countries and regions. Trade Credit —Sirius Group writes credit and bond reinsurance worldwide. The bulk of the business is traditional short-term commercial credit insurance, covering pre-agreed domestic and export sales of goods and services with typical coverage periods of 60 to 120 days . Losses under these policies are correlated to adverse changes in a respective country's gross national product. Contingency —Sirius Group underwrote a contingency insurance book primarily for event cancellation and non-appearance. Additionally, coverage for probability based risks with prize redemption was also offered. The contingency insurance business was exited in 2018; however, Sirius Group continues to offer this class on a treaty reinsurance basis on a selective basis for a few key clients. Casualty Reinsurance —Sirius Group underwrites a cross section of all casualty lines, including general liability, umbrella, auto, workers compensation, professional liability, and other specialty classes, written on a proportional and excess of loss basis. Global A&H Global A&H consists of Sirius Group’s insurance and reinsurance business, and the managing general underwriting (“MGU”) units (which include ArmadaCorp Capital, LLC ("Armada") and International Medical Group, Inc. ("IMG")). Armada’s products are offered in the United States while IMG and the insurance and reinsurance business write accident and health products on a worldwide basis: Accident and Health insurance and reinsurance —Sirius Group is an insurer of accident and health business in the United States and internationally, on either an admitted or surplus lines basis, as well as a reinsurer of medical expense, travel and personal accident on a treaty or facultative basis worldwide. The MGU unit writes health insurance business worldwide through IMG and within the United States via Armada. U.S. Specialty U.S. Specialty consists of Sirius Group's specialty insurance product offerings, which currently includes Environmental, Surety, and Workers’ Compensation. Environmental underwrites a pure environmental insurance book in the United States consisting of four core products that revolve around pollution coverage, which are premises pollution liability, contractor's pollution liability, contractor's pollution and professional liability. Surety underwrote commercial surety bonds, including non-construction contract bonds, in a broad range of business segments in the United States. In April 2020, the Company decided to exit the Surety business due to competitive market conditions in that business line and recent economic downturn which presented new risks and challenges for this line of business. Workers' Compensation , is a state-mandated insurance program that provides medical, disability, survivor, burial, and rehabilitation benefits to employees who are injured or killed due to a work-related injury or illness. Runoff & Other Runoff & Other includes the results of Sirius Global Solutions Holding Company ("Sirius Global Solutions"), which specializes in the acquisition and management of runoff liabilities for insurance and reinsurance companies, both in the United States and internationally, as well as asbestos risks, environmental risks and other long-tailed liability exposures. The following tables summarize the segment results for the three months ended June 30, 2020 and 2019 : For the three months ended June 30, 2020 (Expressed in millions of U.S. dollars) Global Reinsurance Global A&H U.S. Specialty Runoff & Other Corporate Eliminations Total Gross written premiums $ 213.5 $ 83.7 $ 25.5 $ (0.1 ) $ — $ 322.6 Net written premiums $ 220.5 $ 62.0 $ 23.8 $ (0.3 ) $ — $ 306.0 Net earned insurance and reinsurance premiums $ 240.9 $ 113.2 $ 15.2 $ 0.5 $ — $ 369.8 Loss and allocated LAE (1) (148.5 ) (69.6 ) (10.4 ) 0.5 — (228.0 ) Insurance and reinsurance acquisition expenses (53.7 ) (31.5 ) (3.4 ) 0.3 10.2 (78.1 ) Technical profit (loss) 38.7 12.1 1.4 1.3 10.2 63.7 Unallocated LAE (2) (5.2 ) (0.6 ) (0.1 ) (1.7 ) (4.7 ) (12.3 ) Other underwriting expenses (20.5 ) (6.7 ) (2.9 ) (1.5 ) (4.7 ) (36.3 ) Underwriting income (loss) 13.0 4.8 (1.6 ) (1.9 ) 0.8 15.1 Service fee revenue (3) — 23.1 — — (11.7 ) 11.4 Managing general underwriter unallocated LAE — (6.2 ) — — 6.2 — Managing general underwriter other underwriting expenses — (4.7 ) — — 4.7 — General and administrative expenses, MGU + Runoff & Other (4) — (11.0 ) — (1.4 ) — (12.4 ) Underwriting income (loss), including net service fee income 13.0 6.0 (1.6 ) (3.3 ) — 14.1 Net investment income 14.8 Net realized investment gains 7.1 Net unrealized investment gains 8.7 Net foreign exchange (losses) (16.1 ) Other revenue (5) (1.2 ) General and administrative expenses (6) (11.5 ) Intangible asset amortization expenses (4.0 ) Interest expense on debt (7.9 ) Pre-tax income $ 4.0 Underwriting Ratios (7) Loss ratio 63.8 % 62.0 % 69.1 % NM NM 65.0 % Acquisition expense ratio 22.3 % 27.8 % 22.4 % NM NM 21.1 % Other underwriting expense ratio 8.5 % 5.9 % 19.1 % NM NM 9.8 % Combined ratio (7) 94.6 % 95.7 % 110.6 % NM NM 95.9 % Goodwill and intangible assets (8) $ — $ 564.6 $ — $ 8.1 $ — $ 572.7 (1) Loss and allocated loss adjustment expenses ("LAE") are part of Loss and loss adjustment expenses on the Consolidated Statements of (Loss) Income (the sum of Loss and allocated LAE and Unallocated LAE is equal to Loss and loss adjustment expenses on the Consolidated Statements of (Loss) Income). (2) Unallocated LAE are part of Loss and loss adjustment expenses on the Consolidated Statements of (Loss) Income (the sum of Loss and allocated LAE and Unallocated LAE is equal to Loss and loss adjustment expenses on the Consolidated Statements of (Loss) Income). (3) Service fee revenue is part of Other revenue on the Consolidated Statements of (Loss) Income (the sum of Service fee revenue and Other revenue is equal to Other revenue on the Consolidated Statements of (Loss) Income). (4) General and administrative expenses, MGU + Runoff & Other is part of General and administrative expenses on the Consolidated Statements of (Loss) Income (the sum of General and administrative expenses, MGU + Runoff & Other and General and administrative expenses is equal to General and administrative expenses on the Consolidated Statements of (Loss) Income). (5) Other revenue is presented net of Service fee revenue and is comprised mainly of losses from derivatives (see Note 12 ) (the sum of Service fee revenue and Other revenue is equal to Other revenue on the Consolidated Statements of (Loss) Income). (6) General and administrative expenses are presented net of General and administrative expenses, MGU + Runoff & Other (the sum of General and administrative expenses, MGU + Runoff & Other and General and administrative expenses is equal to General and administrative expenses on the Consolidated Statements of (Loss) Income). (7) Ratios considered not meaningful ("NM") to Runoff & Other and Corporate Eliminations. (8) Sirius Group does not allocate its assets by segment, with the exception of goodwill and intangible assets. For the three months ended June 30, 2019 (Expressed in millions of U.S. dollars) Global Reinsurance Global A&H U.S. Specialty Runoff & Other Corporate Eliminations Total Gross written premiums $ 317.1 $ 152.8 $ 16.0 $ 1.2 $ — $ 487.1 Net written premiums $ 266.7 $ 120.6 $ 14.1 $ 0.3 $ — $ 401.7 Net earned insurance and reinsurance premiums $ 244.9 $ 118.8 $ 6.7 $ 0.3 $ — $ 370.7 Loss and allocated LAE (1) (188.5 ) (71.8 ) (4.1 ) (2.4 ) — (266.8 ) Insurance and reinsurance acquisition expenses (50.0 ) (36.0 ) (1.8 ) (1.8 ) 12.6 (77.0 ) Technical profit (loss) 6.4 11.0 0.8 (3.9 ) 12.6 26.9 Unallocated LAE (2) (4.7 ) (2.0 ) (0.1 ) (0.2 ) (4.2 ) (11.2 ) Other underwriting expenses (21.6 ) (5.9 ) (2.1 ) (1.1 ) (4.8 ) (35.5 ) Underwriting income (loss) (19.9 ) 3.1 (1.4 ) (5.2 ) 3.6 (19.8 ) Service fee revenue (3) — 30.3 — — (13.7 ) 16.6 Managing general underwriter unallocated LAE — (5.3 ) — — 5.3 — Managing general underwriter other underwriting expenses — (4.8 ) — — 4.8 — General and administrative expenses, MGU + Runoff & Other (4) — (15.0 ) — (1.0 ) — (16.0 ) Underwriting income (loss), including net service fee income (19.9 ) 8.3 (1.4 ) (6.2 ) — (19.2 ) Net investment income 24.4 Net realized investment gains 15.6 Net unrealized investment gains 15.5 Net foreign exchange (losses) (0.6 ) Other revenue (5) (1.2 ) General and administrative expenses (6) (12.2 ) Intangible asset amortization expenses (4.0 ) Interest expense on debt (8.0 ) Pre-tax income $ 10.3 Underwriting Ratios (7) Loss ratio 78.9 % 62.1 % 62.7 % NM NM 75.0 % Acquisition expense ratio 20.4 % 30.3 % 26.9 % NM NM 20.8 % Other underwriting expense ratio 8.8 % 5.0 % 31.3 % NM NM 9.6 % Combined ratio (7) 108.1 % 97.4 % 120.9 % NM NM 105.4 % Goodwill and intangible assets (8) $ — $ 580.2 $ — $ 8.1 $ — $ 588.3 (1) Loss and allocated loss adjustment expenses ("LAE") are part of Loss and loss adjustment expenses on the Consolidated Statements of (Loss) Income (the sum of Loss and allocated LAE and Unallocated LAE is equal to Loss and loss adjustment expenses on the Consolidated Statements of (Loss) Income). (2) Unallocated LAE are part of Loss and loss adjustment expenses on the Consolidated Statements of (Loss) Income (the sum of Loss and allocated LAE and Unallocated LAE is equal to Loss and loss adjustment expenses on the Consolidated Statements of (Loss) Income). (3) Service fee revenue is part of Other revenue on the Consolidated Statements of (Loss) Income (the sum of Service fee revenue and Other revenue is equal to Other revenue on the Consolidated Statements of (Loss) Income). (4) General and administrative expenses, MGU + Runoff & Other is part of General and administrative expenses on the Consolidated Statements of (Loss) Income (the sum of General and administrative expenses, MGU + Runoff & Other and General and administrative expenses is equal to General and administrative expenses on the Consolidated Statements of (Loss) Income). (5) Other revenue is presented net of Service fee revenue and is comprised mainly of a change in contingent consideration (see Note 9 ) and gains (losses) from derivatives (see Note 12 ) (the sum of Service fee revenue and Other revenue is equal to Other revenue on the Consolidated Statements of (Loss) Income). (6) General and administrative expenses are presented net of General and administrative expenses, MGU + Runoff & Other (the sum of General and administrative expenses, MGU + Runoff & Other and General and administrative expenses is equal to General and administrative expenses on the Consolidated Statements of (Loss) Income). (7) Ratios considered not meaningful ("NM") to Runoff & Other and Corporate Eliminations. (8) Sirius Group does not allocate its assets by segment, with the exception of goodwill and intangible assets. The following tables summarize the segment results for the six months ended June 30, 2020 and 2019 : For the six months ended June 30, 2020 (Expressed in millions of U.S. dollars) Global Reinsurance Global A&H U.S. Specialty Runoff & Other Corporate Eliminations Total Gross written premiums $ 678.8 $ 345.8 $ 46.3 $ 69.3 $ — $ 1,140.2 Net written premiums $ 565.9 $ 262.7 $ 39.0 $ 68.3 $ — $ 935.9 Net earned insurance and reinsurance premiums $ 475.9 $ 231.1 $ 28.0 $ 69.5 $ — $ 804.5 Loss and allocated LAE (1) (405.7 ) (149.9 ) (18.1 ) (68.4 ) — (642.1 ) Insurance and reinsurance acquisition expenses (104.6 ) (62.3 ) (6.4 ) (0.1 ) 20.6 (152.8 ) Technical profit (loss) (34.4 ) 18.9 3.5 1.0 20.6 9.6 Unallocated LAE (2) (10.2 ) (2.3 ) (0.2 ) (2.5 ) (10.1 ) (25.3 ) Other underwriting expenses (41.8 ) (12.3 ) (8.1 ) (2.4 ) (9.7 ) (74.3 ) Underwriting (loss) income (86.4 ) 4.3 (4.8 ) (3.9 ) 0.8 (90.0 ) Service fee revenue (3) — 59.0 — — (22.7 ) 36.3 Managing general underwriter unallocated LAE — (12.2 ) — — 12.2 — Managing general underwriter other underwriting expenses — (9.7 ) — — 9.7 — General and administrative expenses, MGU + Runoff & Other (4) — (25.2 ) — (2.9 ) — (28.1 ) Underwriting (loss) income, including net service fee income (86.4 ) 16.2 (4.8 ) (6.8 ) — (81.8 ) Net investment income 28.3 Net realized investment gains 27.4 Net unrealized investment (losses) (35.1 ) Net foreign exchange gains 2.4 Other revenue (5) (21.8 ) General and administrative expenses (6) (27.9 ) Intangible asset amortization expenses (7.9 ) Interest expense on debt (15.7 ) Pre-tax (loss) income $ (132.1 ) Underwriting Ratios (7) Loss ratio 87.4 % 65.9 % 65.4 % NM NM 83.0 % Acquisition expense ratio 22.0 % 27.0 % 22.9 % NM NM 19.0 % Other underwriting expense ratio 8.8 % 5.3 % 28.9 % NM NM 9.2 % Combined ratio (7) 118.2 % 98.2 % 117.2 % NM NM 111.2 % Goodwill and intangible assets (8) $ — $ 564.6 $ — $ 8.1 $ — $ 572.7 (1) Loss and allocated loss adjustment expenses ("LAE") are part of Loss and loss adjustment expenses on the Consolidated Statements of (Loss) Income (the sum of Loss and allocated LAE and Unallocated LAE is equal to Loss and loss adjustment expenses on the Consolidated Statements of (Loss) Income). (2) Unallocated LAE are part of Loss and loss adjustment expenses on the Consolidated Statements of (Loss) Income (the sum of Loss and allocated LAE and Unallocated LAE is equal to Loss and loss adjustment expenses on the Consolidated Statements of (Loss) Income). (3) Service fee revenue is part of Other revenue on the Consolidated Statements of (Loss) Income (the sum of Service fee revenue and Other revenue is equal to Other revenue on the Consolidated Statements of (Loss) Income). (4) General and administrative expenses, MGU + Runoff & Other is part of General and administrative expenses on the Consolidated Statements of (Loss) Income (the sum of General and administrative expenses, MGU + Runoff & Other and General and administrative expenses is equal to General and administrative expenses on the Consolidated Statements of (Loss) Income). (5) Other revenue is presented net of Service fee revenue and is comprised mainly of losses from derivatives (see Note 12 ) (the sum of Service fee revenue and Other revenue is equal to Other revenue on the Consolidated Statements of (Loss) Income). (6) General and administrative expenses are presented net of General and administrative expenses, MGU + Runoff & Other (the sum of General and administrative expenses, MGU + Runoff & Other and General and administrative expenses is equal to General and administrative expenses on the Consolidated Statements of (Loss) Income). (7) Ratios considered not meaningful ("NM") to Runoff & Other and Corporate Eliminations. (8) Sirius Group does not allocate its assets by segment, with the exception of goodwill and intangible assets. For the six months ended June 30, 2019 (Expressed in millions of U.S. dollars) Global Reinsurance Global A&H U.S. Specialty Runoff & Other Corporate Eliminations Total Gross written premiums $ 752.1 $ 322.1 $ 32.6 $ 2.6 $ — $ 1,109.4 Net written premiums $ 602.6 $ 255.5 $ 27.7 $ 0.7 $ — $ 886.5 Net earned insurance and reinsurance premiums $ 456.2 $ 214.9 $ 10.8 $ 0.7 $ — $ 682.6 Loss and allocated LAE (1) (296.3 ) (135.0 ) (6.5 ) (3.5 ) — (441.3 ) Insurance and reinsurance acquisition expenses (95.6 ) (62.6 ) (2.5 ) (2.5 ) 22.9 (140.3 ) Technical profit (loss) 64.3 17.3 1.8 (5.3 ) 22.9 101.0 Unallocated LAE (2) (8.7 ) (3.5 ) (0.1 ) (0.7 ) (7.6 ) (20.6 ) Other underwriting expenses (43.2 ) (12.0 ) (4.9 ) (3.2 ) (7.5 ) (70.8 ) Underwriting (loss) income 12.4 1.8 (3.2 ) (9.2 ) 7.8 9.6 Service fee revenue (3) — 66.6 — — (24.7 ) 41.9 Managing general underwriter unallocated LAE — (9.4 ) — — 9.4 — Managing general underwriter other underwriting expenses — (7.5 ) — — 7.5 — General and administrative expenses, MGU + Runoff & Other (4) — (31.2 ) — (1.8 ) — (33.0 ) Underwriting (loss) income, including net service fee income 12.4 20.3 (3.2 ) (11.0 ) — 18.5 Net investment income 44.5 Net realized investment gains 24.6 Net unrealized investment (losses) 89.5 Net foreign exchange gains 4.5 Other revenue (5) (6.9 ) General and administrative expenses (6) (19.6 ) Intangible asset amortization expenses (7.9 ) Interest expense on debt (15.6 ) Pre-tax (loss) income $ 131.6 Underwriting Ratios (7) Loss ratio 66.9 % 64.4 % 61.1 % NM NM 67.7 % Acquisition expense ratio 21.0 % 29.1 % 23.1 % NM NM 20.6 % Other underwriting expense ratio 9.5 % 5.6 % 45.4 % NM NM 10.4 % Combined ratio (7) 97.4 % 99.1 % 129.6 % NM NM 98.7 % Goodwill and intangible assets (8) $ — $ 580.2 $ — $ 8.1 $ — $ 588.3 (1) Loss and allocated loss adjustment expenses ("LAE") are part of Loss and loss adjustment expenses on the Consolidated Statements of (Loss) Income (the sum of Loss and allocated LAE and Unallocated LAE is equal to Loss and loss adjustment expenses on the Consolidated Statements of (Loss) Income). (2) Unallocated LAE are part of Loss and loss adjustment expenses on the Consolidated Statements of (Loss) Income (the sum of Loss and allocated LAE and Unallocated LAE is equal to Loss and loss adjustment expenses on the Consolidated Statements of (Loss) Income). (3) Service fee revenue is part of Other revenue on the Consolidated Statements of (Loss) Income (the sum of Service fee revenue and Other revenue is equal to Other revenue on the Consolidated Statements of (Loss) Income). (4) General and administrative expenses, MGU + Runoff & Other is part of General and administrative expenses on the Consolidated Statements of (Loss) Income (the sum of General and administrative expenses, MGU + Runoff & Other and General and administrative expenses is equal to General and administrative expenses on the Consolidated Statements of (Loss) Income). (5) Other revenue is presented net of Service fee revenue and is comprised mainly of a change in contingent consideration (see Note 9 ) and gains (losses) from derivatives (see Note 12 ) (the sum of Service fee revenue and Other revenue is equal to Other revenue on the Consolidated Statements of (Loss) Income). (6) General and administrative expenses are presented net of General and administrative expenses, MGU + Runoff & Other (the sum of General and administrative expenses, MGU + Runoff & Other and General and administrative expenses is equal to General and administrative expenses on the Consolidated Statements of (Loss) Income). (7) Ratios considered not meaningful ("NM") to Runoff & Other and Corporate Eliminations. (8) Sirius Group does not allocate its assets by segment, with the exception of goodwill and intangible assets. The following tables provide summary information regarding net premiums written by client location and underwriting location by reportable segment for the three months ended June 30, 2020 and 2019 : For the three months ended June 30, 2020 (Expressed in millions of U.S. dollars) Global Reinsurance Global A&H U.S. Specialty Runoff & Other Total Total net written premiums by client location: United States $ 106.9 $ 50.7 $ 23.8 $ (0.5 ) $ 180.9 Europe 42.7 5.2 — 0.1 48.0 Canada, the Caribbean, Bermuda and Latin America 18.9 1.3 — — 20.2 Asia and Other 52.0 4.8 — 0.1 56.9 Total net written premiums by client location for the three months ended June 30, 2020 $ 220.5 $ 62.0 $ 23.8 $ (0.3 ) $ 306.0 Total net written premiums by underwriting location: United States $ 83.2 $ 25.4 $ 23.8 $ (0.4 ) $ 132.0 Europe 83.2 36.5 — — 119.7 Canada, the Caribbean, Bermuda and Latin America 36.6 — — — 36.6 Asia and Other 17.5 0.1 — 0.1 17.7 Total net written premiums by underwriting location for the three months ended June 30, 2020 $ 220.5 $ 62.0 $ 23.8 $ (0.3 ) $ 306.0 For the three months ended June 30, 2019 (Expressed in millions of U.S. dollars) Global Reinsurance Global A&H U.S. Specialty Runoff & Other Total Total net written premiums by client location: United States $ 152.7 $ 102.5 $ 14.1 $ 0.2 $ 269.5 Europe 28.5 5.1 — — 33.6 Canada, the Caribbean, Bermuda and Latin America 16.7 2.0 — — 18.7 Asia and Other 68.8 11.0 — 0.1 79.9 Total net written premiums by client location for the three months ended June 30, 2019 $ 266.7 $ 120.6 $ 14.1 $ 0.3 $ 401.7 Total net written premiums by underwriting location: United States $ 104.9 $ 62.1 $ 14.1 $ 0.2 $ 181.3 Europe 102.6 58.4 — — 161.0 Canada, the Caribbean, Bermuda and Latin America 40.7 — — — 40.7 Asia and Other 18.5 0.1 — 0.1 18.7 Total net written premiums by underwriting location for the three months ended June 30, 2019 $ 266.7 $ 120.6 $ 14.1 $ 0.3 $ 401.7 The following tables provide summary information regarding net premiums written by client location and underwriting location by reportable segment for the six months ended June 30, 2020 and 2019 : For the six months ended June 30, 2020 (Expressed in millions of U.S. dollars) Global Reinsurance Global A&H U.S. Specialty Runoff & Other Total Total net written premiums by client location: United States $ 211.2 $ 231.4 $ 39.0 $ 67.6 $ 549.2 Europe 215.5 12.4 — 0.4 228.3 Canada, the Caribbean, Bermuda and Latin America 48.3 7.8 — — 56.1 Asia and Other 90.9 11.1 — 0.3 102.3 Total net written premiums by client location for the six months ended June 30, 2020 $ 565.9 $ 262.7 $ 39.0 $ 68.3 $ 935.9 Total net written premiums by underwriting location: United States $ 155.8 $ 156.6 $ 39.0 $ 67.6 $ 419.0 Europe 291.4 106.0 — 0.4 397.8 Canada, the Caribbean, Bermuda and Latin America 84.7 — — — 84.7 Asia and Other 34.0 0.1 — 0.3 34.4 Total net written premiums by underwriting location for the six months ended June 30, 2020 $ 565.9 $ 262.7 $ 39.0 $ 68.3 $ 935.9 For the six months ended June 30, 2019 (Expressed in millions of U.S. dollars) Global Reinsurance Global A&H U.S. Specialty Runoff & Other Total Total net written premiums by client location: United States $ 269.3 $ 213.6 $ 27.7 $ 0.4 $ 511.0 Europe 178.0 13.1 — 0.1 191.2 Canada, the Caribbean, Bermuda and Latin America 45.7 7.0 — — 52.7 Asia and Other 109.6 21.8 — 0.2 131.6 Total net written premiums by client location for the six months ended June 30, 2019 $ 602.6 $ 255.5 $ 27.7 $ 0.7 $ 886.5 Total net written premiums by underwriting location: United States $ 180.6 $ 133.1 $ 27.7 $ 0.4 $ 341.8 Europe 309.6 122.0 — 0.1 431.7 Canada, the Caribbean, Bermuda and Latin America 76.6 — — — 76.6 Asia and Other 35.8 0.4 — 0.2 36.4 Total net written premiums by underwriting location for the six months ended June 30, 2019 $ 602.6 $ 255.5 $ 27.7 $ 0.7 $ 886.5 |
Reserves for unpaid losses and
Reserves for unpaid losses and loss adjustment expenses | 6 Months Ended |
Jun. 30, 2020 | |
Insurance [Abstract] | |
Reserves for unpaid losses and loss adjustment expenses | Reserves for unpaid losses and loss adjustment expenses The following table summarizes the loss and LAE reserve activities of Sirius Group for the three and six months ended June 30, 2020 and 2019 : Three months ended June 30, Six months ended June 30, (Millions) 2020 2019 2020 2019 Gross beginning balance $ 2,519.6 $ 1,976.3 $ 2,331.5 $ 2,016.7 Less beginning reinsurance recoverable on unpaid losses (444.2 ) (349.3 ) (410.3 ) (350.2 ) Net loss and LAE reserve balance 2,075.4 1,627.0 1,921.2 1,666.5 Losses and LAE incurred relating to: Current year losses 239.1 214.1 662.0 381.4 Prior years losses 1.2 63.9 5.4 80.5 Total net incurred losses and LAE 240.3 278.0 667.4 461.9 Foreign currency translation adjustment to net loss and LAE reserves 13.2 3.4 (8.6 ) — Accretion of fair value adjustment to net loss and LAE reserves — 0.1 — 0.1 Loss and LAE paid relating to: Current year losses 24.5 120.9 67.6 157.1 Prior years losses 231.5 121.7 439.5 305.5 Total loss and LAE payments 256.0 242.6 507.1 462.6 Net ending balance 2,072.9 1,665.9 2,072.9 1,665.9 Plus ending reinsurance recoverable on unpaid losses 442.2 357.4 442.2 357.4 Gross ending balance $ 2,515.1 $ 2,023.3 $ 2,515.1 $ 2,023.3 Loss and LAE development - Three Months Ended June 30, 2020 For the three months ended June 30, 2020 , Sirius Group had net unfavorable loss reserve development of $1.2 million . Increases in loss reserve estimates for Global Reinsurance ($ 4.5 million) were partially offset by favorable loss reserve development in Global A&H ( $3.3 million). Within Global Reinsurance, unfavorable loss reserve development in Other Property ( $8.2 million ) and Casualty Reinsurance ( $4.8 million ) was partially offset by favorable loss reserve development in Property Catastrophe Excess Reinsurance ( $7.6 million ). The reduction in Property Catastrophe Excess Reinsurance was due to reductions in reserve estimates for prior year catastrophe events, mainly Typhoon Faxai and Typhoon Hagibis. Loss and LAE development - Three Months Ended June 30, 2019 For the three months ended June 30, 2019 , Sirius Group had net unfavorable loss reserve development of $ 63.9 million. Increases in loss reserve estimates were recorded in Global Reinsurance ($ 61.6 million) and Runoff & Other ($ 3.0 million).The unfavorable loss reserve development in Global Reinsurance was primarily attributable to higher prior year catastrophe events, including $46.4 million from Typhoon Jebi. Loss and LAE development - Six Months Ended June 30, 2020 For the six months ended June 30, 2020 , Sirius Group had net unfavorable loss reserve development of $5.4 million. Increases in loss reserve estimates for Global Reinsurance ( $13.6 million) were partially offset by favorable loss reserve development in Global A&H ( $7.5 million). Within Global Reinsurance, net unfavorable loss reserve development was recorded primarily in Aviation & Space ( $8.8 million ) and Casualty Reinsurance ( $5.6 million ). The unfavorable loss reserve development in Aviation & Space was mainly from a loss on the Lion Air crash. Loss and LAE development - Six Months Ended June 30, 2019 For the six months ended June 30, 2019 , Sirius Group had net unfavorable loss reserve development of $80.5 million. Increases in loss reserve estimates were recorded in Global Reinsurance ( $71.8 million), Global A&H ( $4.5 million ) and Runoff & Other ( $4.2 million). The unfavorable loss reserve development in Global Reinsurance was primarily attributable to higher prior year catastrophe events, including $46.4 million from Typhoon Jebi, $7.3 million from Hurricane Florence, $7.2 million from Hurricane Irma, and $6.3 million from Hurricane Michael. |
Third party reinsurance
Third party reinsurance | 6 Months Ended |
Jun. 30, 2020 | |
Insurance [Abstract] | |
Third party reinsurance | Third party reinsurance In the normal course of business, Sirius Group seeks to protect its businesses from losses due to concentration of risk and losses arising from catastrophic events by reinsuring with third-party reinsurers. Sirius Group remains liable for risks reinsured in the event that the reinsurer does not honor its obligations under reinsurance contracts. At June 30, 2020 , Sirius Group had Reinsurance recoverable on paid losses of $106.1 million and Reinsurance recoverable on unpaid losses of $442.2 million . At December 31, 2019 , Sirius Group had Reinsurance recoverable on paid losses of $73.9 million and Reinsurance recoverable on unpaid losses of $410.3 million . Because retrocessional reinsurance contracts do not relieve Sirius Group of its obligation to its insureds, the collectability of balances due from Sirius Group's reinsurers is important to its financial strength. Sirius Group monitors the financial strength and ratings of retrocessionaires on an ongoing basis. Uncollectible amounts historically have not been significant. (See Note 7 .) |
Allowance for expected credit l
Allowance for expected credit losses | 6 Months Ended |
Jun. 30, 2020 | |
Credit Loss [Abstract] | |
Allowance for expected credit losses | Allowance for expected credit losses Sirius Group is exposed to credit losses primarily through sales of its insurance and reinsurance products and services. The financial assets in scope of the current expected credit losses impairment model primarily include Sirius Group's premium receivables and reinsurance recoverables. Sirius Group pools the premium receivables and reinsurance recoverables by counterparty credit rating and applies a credit default rate that is determined based on the studies published by the rating agencies (e.g., A.M. Best, Standard & Poor's ("S&P")). In circumstances where ratings are unavailable, Sirius Group applies an internally developed default rate based on historical experience, reference data including research publications, and other relevant inputs. To estimate the allowance for expected credit losses, Sirius Group considered the current and expected future economic and market conditions surrounding the COVID-19 pandemic. To the extent the current environment continues beyond our expectations or deteriorates further, we may experience further increases to our allowance for credit losses related to COVID-19. As of June 30, 2020 , Sirius Group's allowance for expected credit losses is as follows: (in millions) Gross Assets in Scope Allowance for Expected Credit Losses Premiums receivable & Funds held by ceding companies $ 1,126.4 $ 10.6 Reinsurance recoverable on unpaid and paid loss 548.3 3.9 MGU Trade receivables (1) 22.8 0.4 Total as of June 30, 2020 $ 1,697.5 $ 14.9 (1) Included as part of Other assets on the Consolidated Balance Sheet Sirius Group recorded no changes to the allowance for expected credit losses during three and six months ended June 30, 2020 . Sirius Group monitors counterparty credit ratings and macroeconomic conditions, and considers the most current A.M. Best and S&P credit ratings to determine the allowance each quarter. Of the total gross assets in scope as of June 30, 2020 , approximately 63% were balances with counterparties rated by either A.M. Best or S&P. Of the total rated, 76% were rated A- or better. |
Investment securities
Investment securities | 6 Months Ended |
Jun. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment securities | Investment securities Sirius Group's invested assets consist of investment securities and other long-term investments held for general investment purposes. The portfolio of investment securities includes fixed maturity investments, short-term investments, equity securities, and other-long term investments which are all classified as trading securities. Realized and unrealized investment gains and losses on trading securities are reported in pre-tax revenues. Net Investment Income Sirius Group's net investment income is comprised primarily of interest income along with associated amortization of premium and accretion of discount on Sirius Group's fixed maturity investments, dividend income from its equity investments, and interest income from its short-term investments. Net investment income for the three and six months ended June 30, 2020 and 2019 consisted of the following: For the three months ended June 30, For the six months ended June 30, (Millions) 2020 2019 2020 2019 Fixed maturity investments $ 11.1 $ 13.1 $ 21.4 $ 27.2 Short-term investments 1.3 4.8 4.6 7.9 Equity securities 2.1 7.1 4.7 9.8 Other long-term investments 3.1 3.2 3.3 7.1 Total investment income 17.6 28.2 34.0 52.0 Investment expenses (2.8 ) (3.8 ) (5.7 ) (7.5 ) Net investment income $ 14.8 $ 24.4 $ 28.3 $ 44.5 Net Realized and Unrealized Investment Gains (Losses) Net realized and unrealized investment gains (losses) for the three and six months ended June 30, 2020 and 2019 consisted of the following: For the three months ended June 30, For the six months ended June 30, (Millions) 2020 2019 2020 2019 Gross realized gains $ 57.4 $ 26.9 $ 99.4 $ 41.0 Gross realized (losses) (50.3 ) (11.3 ) (72.0 ) (16.4 ) Net realized gains on investments (1)(2) 7.1 15.6 27.4 24.6 Net unrealized gains (losses) on investments (3)(4) 8.7 15.5 (35.1 ) 89.5 Net realized and unrealized gains (losses) on investments $ 15.8 $ 31.1 $ (7.7 ) $ 114.1 (1) Includes $5.4 and $9.7 of realized gains due to foreign currency for the three months ended June 30, 2020 and 2019 , respectively. (2) Includes $16.5 and $20.5 of realized gains due to foreign currency for the six months ended June 30, 2020 and 2019 , respectively. (3) Includes $(65.7) and $(7.2) of unrealized gains (losses) due to foreign currency for the three months ended June 30, 2020 and 2019 , respectively. (4) Includes $(13.1) and $17.8 of unrealized gains (losses) due to foreign currency for the six months ended June 30, 2020 and 2019 , respectively. Net realized investment gains Net realized investment gains for the three and six months ended June 30, 2020 and 2019 consisted of the following: For the three months ended June 30, For the six months ended June 30, (Millions) 2020 2019 2020 2019 Fixed maturity investments $ 9.9 $ 8.1 $ 17.7 $ 14.9 Equity securities (6.5 ) (1.2 ) (6.0 ) (1.8 ) Short-term investments 1.0 3.1 3.8 3.2 Derivative instruments 0.2 (0.2 ) 8.5 (0.8 ) Other long-term investments 2.5 5.8 3.4 9.1 Net realized investment gains $ 7.1 $ 15.6 $ 27.4 $ 24.6 Net unrealized investment gains (losses) Net unrealized investment gains (losses) for the three and six months ended June 30, 2020 and 2019 consisted of the following: For the three months ended June 30, For the six months ended June 30, (Millions) 2020 2019 2020 2019 Fixed maturity investments $ (3.7 ) $ 11.0 $ 3.2 $ 40.7 Equity securities 16.9 13.3 (52.2 ) 38.4 Short-term investments (15.8 ) (0.9 ) (0.1 ) 1.8 Derivative instruments 2.1 (0.1 ) 2.2 (0.7 ) Other long-term investments 9.2 (7.8 ) 11.8 9.3 Net unrealized investment gains (losses) $ 8.7 $ 15.5 $ (35.1 ) $ 89.5 The following table summarizes the amount of total gains (losses) included in earnings attributable to unrealized investment gains (losses) for Level 3 investments for the three and six months ended June 30, 2020 and 2019 : For the three months ended June 30, For the six months ended June 30, (Millions) 2020 2019 2020 2019 Fixed maturity investments $ — $ — $ 0.3 $ — Other long-term investments (4.2 ) — (5.1 ) 8.8 Total unrealized investment (losses) gains – Level 3 investments $ (4.2 ) $ — $ (4.8 ) $ 8.8 Investment Holdings Fixed maturity investments The cost or amortized cost, gross unrealized investment gains (losses), net foreign currency gains (losses), and fair value of Sirius Group's fixed maturity investments as of June 30, 2020 and December 31, 2019 , were as follows: June 30, 2020 (Millions) Cost or amortized cost Gross unrealized gains Gross unrealized (losses) Net foreign currency gains (losses) Fair value Corporate debt securities $ 468.2 $ 9.8 $ (0.8 ) $ 6.5 $ 483.7 Asset-backed securities 737.4 5.2 (18.5 ) (0.9 ) 723.2 Residential mortgage-backed securities 403.6 22.3 (0.8 ) 3.1 428.2 U.S. government and government agency 105.5 1.2 (0.1 ) (2.1 ) 104.5 Commercial mortgage-backed securities 96.2 2.5 (2.3 ) 0.1 96.5 Non-U.S. government and government agency 50.4 0.3 (0.2 ) (0.4 ) 50.1 Preferred stocks 14.8 2.3 (0.3 ) — 16.8 U.S. States, municipalities and political subdivision 1.6 0.1 — — 1.7 Total fixed maturity investments $ 1,877.7 $ 43.7 $ (23.0 ) $ 6.3 $ 1,904.7 December 31, 2019 (Millions) Cost or amortized cost Gross unrealized gains Gross unrealized (losses) Net foreign currency gains (losses) Fair value Corporate debt securities $ 458.6 $ 5.2 $ (1.2 ) $ 11.5 $ 474.1 Asset-backed securities 489.4 1.4 (3.9 ) (0.1 ) 486.8 Residential mortgage-backed securities 426.2 10.5 (1.4 ) 3.6 438.9 U.S. government and government agency 111.5 0.7 (0.4 ) (1.3 ) 110.5 Commercial mortgage-backed securities 88.5 0.9 (0.6 ) 0.2 89.0 Non-U.S. government and government agency 63.7 — (0.7 ) — 63.0 Preferred stocks 17.0 — — — 17.0 U.S. States, municipalities and political subdivision 1.7 — — — 1.7 Total fixed maturity investments $ 1,656.6 $ 18.7 $ (8.2 ) $ 13.9 $ 1,681.0 The weighted average duration of Sirius Group's fixed income portfolio as of June 30, 2020 was approximately 1 year , including short-term investments, and approximately 1.5 years excluding short-term investments. The cost or amortized cost and fair value of Sirius Group's fixed maturity investments as of June 30, 2020 and December 31, 2019 are presented below by contractual maturity. Actual maturities could differ from contractual maturities because borrowers may have the right to call or prepay certain obligations with or without call or prepayment penalties. June 30, 2020 December 31, 2019 (Millions) Cost or amortized cost Fair value Cost or amortized cost Fair value Due in one year or less $ 127.3 $ 131.4 $ 85.0 $ 88.4 Due after one year through five years 446.3 456.2 479.1 490.3 Due after five years through ten years 43.9 44.3 46.3 46.0 Due after ten years 8.2 8.1 25.1 24.6 Mortgage-backed and asset-backed securities 1,237.2 1,247.9 1,004.1 1,014.7 Preferred stocks 14.8 16.8 17.0 17.0 Total $ 1,877.7 $ 1,904.7 $ 1,656.6 $ 1,681.0 The following table summarizes the ratings and fair value of fixed maturity investments held in Sirius Group's investment portfolio as of June 30, 2020 and December 31, 2019 : (Millions) June 30, 2020 December 31, 2019 AAA $ 785.6 $ 559.8 AA 716.8 724.3 A 217.4 219.0 BBB 102.5 95.8 Other 82.4 82.1 Total fixed maturity investments (1) $ 1,904.7 $ 1,681.0 (1) Credit ratings are assigned based on the following hierarchy: 1) Standard & Poor's ("S&P") and 2) Moody's Investors Service ("Moody's"). At June 30, 2020 , the above totals included $41.2 million of sub-prime securities. Of this total, $ 21.8 million was rated AAA, $ 16.1 million rated AA, $ 3.2 million rated A and $ 0.1 million classified as Other. At December 31, 2019 , the above totals included $43.3 million of sub-prime securities. Of this total, $21.7 million was rated AAA, $18.4 million rated AA, $3.1 million rated A and $0.1 million classified as Other. Equity securities and Other long-term investments The cost or amortized cost, gross unrealized investment gains and losses, net foreign currency gains, and fair values of Sirius Group's equity securities and other long-term investments as of June 30, 2020 and December 31, 2019 , were as follows: June 30, 2020 (Millions) Cost or amortized cost Gross unrealized gains Gross unrealized (losses) Net foreign currency gains Fair value Equity securities $ 178.1 $ 40.1 $ (69.1 ) $ 0.8 $ 149.9 Other long-term investments $ 324.7 $ 61.3 $ (28.8 ) $ 10.9 $ 368.1 December 31, 2019 (Millions) Cost or amortized cost Gross unrealized gains Gross unrealized (losses) Net foreign currency gains Fair value Equity securities $ 379.2 $ 55.6 $ (37.3 ) $ 7.7 $ 405.2 Other long-term investments $ 315.4 $ 49.9 $ (29.3 ) $ 10.8 $ 346.8 Equity securities at fair value consisted of the following as of June 30, 2020 and December 31, 2019 : (Millions) June 30, 2020 December 31, 2019 Fixed income mutual funds $ 1.7 $ 175.3 Common stocks 161.5 228.1 Other equity securities (1) (13.3 ) 1.8 Total Equity securities $ 149.9 $ 405.2 (1) Sirius Group engaged in short selling of certain equity securities for which settlement was pending as of June 30, 2020. Other long-term investments at fair value consisted of the following as of June 30, 2020 and December 31, 2019 : (Millions) June 30, 2020 December 31, 2019 Hedge funds and private equity funds $ 289.9 $ 269.0 Limited liability companies and private equity securities 78.2 77.8 Total other long-term investments $ 368.1 $ 346.8 Hedge Funds and Private Equity Funds Sirius Group holds investments in hedge funds and private equity funds, which are included in Other long-term investments. The fair value of these investments has been estimated using the net asset value of the funds. As of June 30, 2020 , Sirius Group held investments in 9 hedge funds and 33 private equity funds. The largest investment in a single fund was $64.2 million as of June 30, 2020 and $51.6 million as of December 31, 2019 . The following table summarizes investments in hedge funds and private equity interests by investment objective and sector as of June 30, 2020 and December 31, 2019 : June 30, 2020 December 31, 2019 (Millions) Fair value Unfunded commitments Fair value Unfunded commitments Hedge funds: Long/short multi-sector $ 51.0 $ — $ 53.0 $ — Distressed mortgage credit 64.2 — 51.6 — Private credit 21.8 — 21.5 — Other 1.1 — 1.4 — Total hedge funds 138.1 — 127.5 — Private equity funds: Energy infrastructure & services 54.1 32.8 53.6 34.6 Multi-sector 16.2 7.8 8.7 7.8 Healthcare 28.4 6.3 25.9 10.4 Life settlement 22.8 — 23.9 — Manufacturing/Industrial 27.2 — 27.6 3.9 Private equity secondaries 0.6 0.8 0.6 0.8 Other 2.5 1.7 1.2 2.6 Total private equity funds 151.8 49.4 141.5 60.1 Total hedge and private equity funds included in Other long-term investments $ 289.9 $ 49.4 $ 269.0 $ 60.1 Redemption of investments in certain hedge funds is subject to restrictions including lock-up periods where no redemptions or withdrawals are allowed, restrictions on redemption frequency, and advance notice periods for redemptions. Amounts requested for redemptions remain subject to market fluctuations until the redemption effective date, which generally falls at the end of the defined redemption period. The following summarizes the June 30, 2020 fair value of hedge funds subject to restrictions on redemption frequency and advance notice period requirements for investments in active hedge funds: Notice Period Redemption Frequency 30-59 days notice 60-89 days notice 90-119 days notice 120+ days notice Total Monthly $ — $ 28.8 $ — $ — $ 28.8 Quarterly 0.6 22.2 64.2 — 87.0 Semi-annual — 0.2 — — 0.2 Annual — — 0.2 21.9 22.1 Total $ 0.6 $ 51.2 $ 64.4 $ 21.9 $ 138.1 Certain of the hedge fund and private equity fund investments in which Sirius Group is invested are no longer active and are in the process of disposing of their underlying investments. Distributions from such funds are remitted to investors as the fund's underlying investments are liquidated. As of June 30, 2020 , no distributions were outstanding from these investments. Investments in private equity funds are generally subject to a "lock-up" period during which investors may not request a redemption. Distributions prior to the expected termination date of the fund may be limited to dividends or proceeds arising from the liquidation of the fund's underlying investments. In addition, certain private equity funds provide an option to extend the lock-up period at either the sole discretion of the fund manager or upon agreement between the fund and the investors. As of June 30, 2020 , investments in private equity funds were subject to lock-up periods as follows: (Millions) 1 - 3 years 3 – 5 years 5 – 10 years Total Private Equity Funds – expected lock up period remaining $ 54.6 $ 1.8 $ 95.4 $ 151.8 Investments Held on Deposit or as Collateral As of June 30, 2020 and December 31, 2019 investments of $1,037.4 million and $1,309.5 million , respectively, were held in trusts required to be maintained in relation to various reinsurance agreements. Sirius Group's reinsurance operations are required to maintain deposits with certain insurance regulatory agencies in order to maintain their insurance licenses. The fair value of such deposits that are included within total investments totaled $1,057.2 million and $1,315.5 million as of June 30, 2020 and December 31, 2019 , respectively. As of June 30, 2020 , Sirius Group held $0.2 million of collateral in the form of short-term investments associated with Interest Rate Cap agreements. (See Note 12 .) Unsettled investment purchases and sales As of June 30, 2020 and December 31, 2019 Sirius Group reported $11.3 million and $2.3 million , respectively, in Accounts payable on unsettled investment purchases. As of June 30, 2020 and December 31, 2019 , Sirius Group reported $34.4 million and $6.7 million , respectively, in Accounts receivable on unsettled investment sales. |
Fair value measurements
Fair value measurements | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements | Fair value measurements Fair value measurements are categorized into a hierarchy that distinguishes between inputs based on market data from independent sources ("observable inputs") and a reporting entity's internal assumptions based upon the best information available when external market data is limited or unavailable ("unobservable inputs"). Quoted prices in active markets for identical assets or liabilities have the highest priority ("Level 1"), followed by observable inputs other than quoted prices, including prices for similar but not identical assets or liabilities ("Level 2"), and unobservable inputs, including the reporting entity's estimates of the assumptions that market participants would use, having the lowest priority ("Level 3"). The availability of observable inputs can vary from financial instrument to financial instrument and is affected by a wide variety factors including, for example, the type of financial instrument, whether the financial instrument is new and not yet established in the marketplace, and other characteristics particular to the instrument. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires significantly more judgment. Accordingly, the degree of judgment exercised by management in determining fair value is greatest for instruments categorized in Level 3. In periods of market dislocation, the observability of prices and inputs may be reduced for many instruments. This may lead the Company to change the selection of the valuation technique (for example, from market to cash flow approach) or to use multiple valuation techniques to estimate the fair value of a financial instrument. These circumstances could cause an instrument to be reclassified between levels within the fair value hierarchy. Investments valued using Level 1 inputs include fixed maturity investments, primarily investments in U.S. Treasuries Bills and Notes, equity securities, and short-term investments. Investments valued using Level 2 inputs are primarily comprised of fixed maturity investments, which have been disaggregated into classes, including U.S. government and government agency, corporate debt securities, mortgage-backed and asset-backed securities, non-U.S. government and government agency, U.S. state and municipalities and political subdivision and preferred stocks. Investments valued using Level 2 inputs also include certain exchange-traded funds that track U.S. stock indices such as the S&P 500 but are traded on foreign exchanges. Fair value estimates for investments that trade infrequently and have few or no observable market prices are classified as Level 3 measurements. Sirius Group determines when transfers between levels have occurred as of the beginning of the period. Valuation techniques Sirius Group uses outside pricing services to assist in determining fair values for its investments. For investments in active markets, Sirius Group uses the quoted market prices provided by outside pricing services to determine fair value. The outside pricing services Sirius Group uses have indicated that they will only provide prices where observable inputs are available. In circumstances where quoted market prices are unavailable or are not considered reasonable, Sirius Group estimates the fair value using industry standard pricing models and observable inputs such as benchmark yields, reported trades, broker-dealer quotes, issuer spreads, benchmark securities, bids, offers, prepayment speeds, reference data including research publications, and other relevant inputs. Given that many fixed maturity investments do not trade on a daily basis, the outside pricing services evaluate a wide range of fixed maturity investments by regularly drawing parallels from recent trades and quotes of comparable securities with similar features. The characteristics used to identify comparable fixed maturity investments vary by asset type and take into account market convention. The valuation process above is generally applicable to all of Sirius Group's fixed maturity investments. The techniques and inputs specific to asset classes within Sirius Group's fixed maturity investments for Level 2 securities that use observable inputs are as follows: U.S. government and government agency U.S. government and government agency securities consist primarily of debt securities issued by the U.S. Treasury and mortgage pass-through agencies such as the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation and the Government National Mortgage Association. Fixed maturity investments included in U.S. government and government agency securities are primarily priced by pricing services. When evaluating these securities, the pricing services gather information from market sources and integrate other observations from markets and sector news. Evaluations are updated by obtaining broker-dealer quotes and other market information including actual trade volumes, when available. The fair value of each security is individually computed using analytical models that incorporate option-adjusted spreads and other daily interest rate data. Non-U.S. government and government agency Non-U.S. government and government agency securities consist of debt securities issued by non-U.S. governments and their agencies along with supranational organizations (also known as sovereign debt securities). Securities held in these sectors are primarily priced by pricing services that employ proprietary discounted cash flow models to value the securities. Key quantitative inputs for these models are daily observed benchmark curves for treasury, swap, and high issuance credits. The pricing services then apply a credit spread for each security, which is developed by in-depth and real-time market analysis. For securities in which trade volume is low, the pricing services utilize data from more frequently traded securities with similar attributes. These models may also be supplemented by daily market and credit research for international markets. Corporate debt securities Corporate debt securities consist primarily of investment-grade debt of a wide variety of U.S. and non-U.S. corporate issuers and industries. The corporate fixed maturity investments are primarily priced by pricing services. When evaluating these securities, the pricing services gather information from market sources regarding the issuer of the security and obtain credit data, as well as other observations, from markets and sector news. Evaluations are updated by obtaining broker-dealer quotes and other market information including actual trade volumes, when available. The pricing services also consider the specific terms and conditions of the securities, including any specific features that may influence risk. Mortgage-backed and asset-backed securities The fair value of mortgage and asset-backed securities is primarily priced by pricing services using a pricing model that utilizes information from market sources and leveraging similar securities. Key inputs include benchmark yields, reported trades, underlying tranche cash flow data and collateral performance, plus new issue data, as well as broker-dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including issuer, vintage, loan type, collateral attributes, prepayment speeds, default rates, recovery rates, cash flow stress testing, credit quality ratings, and market research publications. U.S. states, municipalities and political subdivisions The U.S. states, municipalities and political subdivisions portfolio contains debt securities issued by U.S. domiciled state and municipal entities. These securities are generally priced by independent pricing services using the techniques described for U.S. government and government agency securities described above. Preferred stocks The fair value of preferred stocks is generally priced by independent pricing services using an evaluated pricing model that calculates the appropriate spread over a comparable security for each issue. Key inputs include exchange prices (underlying and common stock of the same issuer), benchmark yields, reported trades, broker-dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including sector, coupon, credit quality ratings, duration, credit enhancements, early redemption features, and market research publications. Level 3 Investments Level 3 valuations are generated from techniques that use assumptions not observable in the market. These unobservable assumptions reflect Sirius Group's assumptions about what market participants would use in valuing the investment. Generally, certain securities may start out as Level 3 when they are originally issued but, as observable inputs become available in the market, they may be reclassified to Level 2. Sirius Group employs a number of procedures to assess the reasonableness of the fair value measurements for its other long-term investments, including obtaining and reviewing the audited annual financial statements of hedge funds and private equity funds and periodically discussing each fund's pricing with the fund manager. However, since the fund managers do not provide sufficient information to evaluate the pricing inputs and methods for each underlying investment, the inputs are considered to be unobservable. The fair values of Sirius Group's investments in private equity securities and private debt instruments have been classified as Level 3 measurements. They are carried at fair value and are initially valued based on transaction price. Their valuation is subsequently estimated based on available evidence such as a market transaction in similar instruments and other financial information for the issuer. Investments measured using Net Asset Value The fair value of Sirius Group's investments in hedge funds and private equity funds has been determined using net asset value ("NAV"). The hedge fund's administrator provides quarterly updates of fair value in the form of Sirius Group's proportional interest in the underlying fund's NAV, which is deemed to approximate fair value, generally with a three month delay in valuation. The fair value of investment in hedge funds is measured using the NAV practical expedient and therefore has been not categorized within the fair value hierarchy. The private equity funds provide quarterly or semi-annual partnership capital statements with a three or six month delay which are used as a basis for valuation. These private equity investments vary in investment strategies and are not actively traded in any open markets. Due to a lag in reporting, some of the fund managers, fund administrators, or both, are unable to provide final fund valuations as of the Company's reporting date. In these circumstances, Sirius Group estimates the return of the current period and uses all credible information available. This includes utilizing preliminary estimates reported by its fund managers and using other information that is available to Sirius Group with respect to the underlying investments, as necessary. Fair Value Measurements by Level The following tables summarize Sirius Group's financial assets and liabilities measured at fair value as of June 30, 2020 and December 31, 2019 by level: June 30, 2020 (Millions) Fair Value Level 1 Inputs Level 2 Inputs Level 3 Inputs Assets measured at fair value Fixed maturity investments: U.S. Government and government agency $ 104.5 $ 103.5 $ 1.0 $ — Corporate debt securities 483.7 — 483.7 — Residential mortgage-backed securities 428.2 — 428.2 — Asset-backed securities 723.2 — 723.2 — Commercial mortgage-backed securities 96.5 — 96.5 — Non-U.S. government and government agency 50.1 28.5 21.6 — Preferred stocks 16.8 — 14.2 2.6 U.S. States, municipalities, and political subdivision 1.7 — 1.7 — Total fixed maturity investments 1,904.7 132.0 1,770.1 2.6 Equity securities: Fixed income mutual funds 1.7 1.7 — — Common stocks 161.5 161.5 — — Other equity securities (1) (13.3 ) (16.3 ) 3.0 — Total equity securities 149.9 146.9 3.0 — Short-term investments (2) 1,048.1 1,000.2 47.9 — Other long-term investments (3) 78.2 — — 78.2 Total investments $ 3,180.9 $ 1,279.1 $ 1,821.0 $ 80.8 Loan participation 27.3 — — 27.3 Derivative instruments 7.0 4.5 — 2.5 Total assets measured at fair value $ 3,215.2 $ 1,283.6 $ 1,821.0 $ 110.6 Liabilities measured at fair value Contingent consideration liabilities $ 22.9 $ — $ — $ 22.9 Derivative instruments 1.4 0.4 — 1.0 Total liabilities measured at fair value $ 24.3 $ 0.4 $ — $ 23.9 (1) Sirius Group engaged in short selling of certain equity securities for which settlement was pending as of June 30, 2020. (2) Balance includes $9.2 classified as held-for-sale as of June 30, 2020. (3) Excludes fair value of $289.9 associated with hedge funds and private equity funds which fair value is measured using NAV practical expedient. December 31, 2019 (Millions) Fair value Level 1 inputs Level 2 inputs Level 3 inputs Assets measured at fair value Fixed maturity investments: U.S. Government and government agency $ 110.5 $ 109.1 $ 1.4 $ — Corporate debt securities 474.1 — 474.1 — Asset-backed securities 486.8 — 486.8 — Residential mortgage-backed securities 438.9 — 438.9 — Commercial mortgage-backed securities 89.0 — 89.0 — Non-U.S. government and government agency 63.0 31.7 31.3 — Preferred stocks 17.0 — — 17.0 U.S. States, municipalities, and political subdivision 1.7 — 1.7 — Total fixed maturity investments 1,681.0 140.8 1,523.2 17.0 Equity securities: Fixed income mutual funds 175.3 175.3 — — Common stocks 228.1 228.1 — — Other equity securities 1.8 — 1.8 — Total equity securities 405.2 403.4 1.8 — Short-term investments 1,085.2 1,073.7 11.5 — Other long-term investments (1) 77.8 — — 77.8 Total investments $ 3,249.2 $ 1,617.9 $ 1,536.5 $ 94.8 Loan participation 20.0 — — 20.0 Derivative instruments 11.4 1.3 — 10.1 Total assets measured at fair value $ 3,280.6 $ 1,619.2 $ 1,536.5 $ 124.9 Liabilities measured at fair value Contingent consideration liabilities $ 28.2 $ — $ — $ 28.2 Derivative instruments 9.5 0.2 — 9.3 Total liabilities measured at fair value $ 37.7 $ 0.2 $ — $ 37.5 (1) Excludes fair value of $269.0 associated with hedge funds and private equity funds which fair value is measured using NAV practical expedient. Rollforward of Level 3 fair value measurements The following tables present changes in Level 3 for financial instruments measured at fair value for the three months ended June 30, 2020 and June 30, 2019 : For the three months ended June 30, 2020 (Millions) Fixed Maturities Other long-term investments (1) Loan Participation Derivative instruments assets & (liabilities) Contingent consideration (liabilities) Balance as of March 31, 2020 $ 2.6 $ 75.9 $ 19.9 $ (8.9 ) $ (28.3 ) Total realized and unrealized gains (losses) — (4.2 ) — (5.7 ) (0.1 ) Foreign currency gains (losses) through Other Comprehensive Income — 1.0 — — — Purchases — 5.5 7.4 — — Sales/Settlements — — — 16.1 5.5 Balance as of June 30, 2020 $ 2.6 $ 78.2 $ 27.3 $ 1.5 $ (22.9 ) (1) Excludes fair value of $289.9 associated with hedge funds and private equity funds which fair value is measured using NAV practical expedient. For the three months ended June 30, 2019 (Millions) Fixed Maturities Other long-term investments (1) Loan Participation Derivative instruments assets & (liabilities) Contingent consideration (liabilities) Balance as of March 31, 2019 $ — $ 88.0 $ — $ (4.8 ) $ (28.8 ) Total realized and unrealized gains (losses) — — — (0.6 ) (2.0 ) Foreign currency gains (losses) through Other Comprehensive Income — — — — — Purchases — — — — — Sales/Settlements — — — 1.8 — Balance as of June 30, 2019 $ — $ 88.0 $ — $ (3.6 ) $ (30.8 ) (1) Excludes fair value of $291.9 associated with hedge funds and private equity funds which fair value is measured using NAV practical expedient. The following tables present changes in Level 3 for financial instruments measured at fair value for the six months ended June 30, 2020 and June 30, 2019 : For the six months ended June 30, 2020 (Millions) Fixed Maturities Other long-term investments (1) Loan Participation Derivative instruments assets & (liabilities) Contingent consideration (liabilities) Balance as of January 1, 2020 $ 17.0 $ 77.8 $ 20.0 $ 0.8 $ (28.2 ) Total realized and unrealized gains (losses) 2.6 (5.1 ) — (19.0 ) (0.2 ) Foreign currency gains (losses) through Other Comprehensive Income — — — — — Purchases — 5.5 7.4 — — Sales/Settlements (17.0 ) — (0.1 ) 19.7 5.5 Balance as of June 30, 2020 $ 2.6 $ 78.2 $ 27.3 $ 1.5 $ (22.9 ) (1) Excludes fair value of $289.9 associated with hedge funds and private equity funds which fair value is measured using NAV practical expedient. For the six months ended June 30, 2019 (Millions) Fixed Maturities Other long-term investments (1) Loan Participation Derivative instruments assets & (liabilities) Contingent consideration (liabilities) Balance as of January 1, 2019 $ 5.4 $ 63.6 $ — $ (0.5 ) $ (28.8 ) Total realized and unrealized gains (losses) — 9.3 — (5.8 ) (2.0 ) Foreign currency gains (losses) through Other Comprehensive Income — (0.7 ) — — — Purchases — 15.8 — — — Sales/Settlements (5.4 ) — — 2.7 — Balance as of June 30, 2019 $ — $ 88.0 $ — $ (3.6 ) $ (30.8 ) (1) Excludes fair value of $291.9 associated with hedge funds and private equity funds which fair value is measured using NAV practical expedient. Fair value measurements – transfers between levels There were no transfers between Level 3 and Level 2 measurements during the three and six months ended June 30, 2020 and 2019 , respectively. Significant Unobservable Inputs The table below presents information about the significant unobservable inputs used for recurring fair value measurements for certain Level 3 instruments as of June 30, 2020 and December 31, 2019 , and includes only those instruments for which information about the inputs is reasonably available to Sirius Group, such as data from independent third-party valuation service providers and from internal valuation models. (Millions, except share prices) June 30, 2020 Description Valuation Technique(s) Fair value Unobservable input Private equity securities (1) Share price of recent transaction $ 32.5 Purchase share price 40.63 Loan participation (1) Purchase price of recent transaction $ 19.9 Comparable yields Range - 4.46% - 7.82% Preferred stock (1) Share price of recent transaction $ 19.9 Purchase price 7.74 Private equity securities (1) Multiple of GAAP book value $ 13.2 Book value multiple Range - 0.73x-0.91x Loan participation (1) Purchase price of recent transaction $ 7.4 Purchase price $ 7.4 Private debt instrument (1) Discounted cash flow $ 6.2 Discount yield Range - 11.87% - 12.32% Private equity securities (1) Purchase price of recent transaction $ 4.7 Purchase price 7.74 Preferred stock (1) Purchase price of recent transaction $ 1.9 Purchase price $ 1.9 Private convertible debt instrument (1) Unit price of recent transaction $ 1.4 Purchase price 7.74 Currency swaps (2) Third party appraisal $ 1.2 Broker quote $ 1.2 Currency forwards (2) Third party appraisal $ 0.7 Broker quote $ 0.7 Preferred stock (1) Purchase price of recent transaction $ 0.7 Purchase price $ 0.7 Equity warrants (2) Option pricing model $ 0.6 Strike price $ 0.2 Private equity securities (1) Purchase price of recent transaction $ 0.3 Purchase price $ 0.3 Weather derivatives (2) Third party appraisal $ (1.0 ) Broker quote $ (1.0 ) Contingent consideration External valuation model $ (22.9 ) Discounted future payments $ (22.9 ) (1) As of June 30, 2020 , each asset type consists of one security. (2) See Note 12 for discussion of derivative instruments. (Millions, except share prices) December 31, 2019 Description Valuation Technique(s) Fair value Unobservable input Private equity securities (1) Share price of recent transaction $ 32.5 Purchase share price $ 40.6 Loan participation (1) Purchase price of recent transaction $ 20.0 Purchase price 20.0 Preferred stock (1) Share price of recent transaction $ 17.5 Purchase price $ 7.74 Private equity securities (1) Multiple of GAAP book value $ 14.2 Book value multiple 0.9 Preferred stock (1) Purchase price of recent transaction $ 12.2 Purchase price $ 12.2 Private debt instrument (1) Purchase price of recent transaction $ 7.2 Purchase price $ 9.0 Weather derivatives (2) Third party appraisal $ 7.0 Broker quote $ 7.0 Private equity securities (1) Purchase price of recent transaction $ 5.1 Purchase price $ 7.74 Preferred stock (1) Purchase price of recent transaction $ 4.8 Purchase price $ 4.80 Currency forwards (2) Third party appraisal $ 2.7 Broker quote $ 2.7 Private equity securities (1) Purchase price of recent transaction $ 1.0 Purchase price $ 10.0 Equity warrants (2) Option pricing model $ 0.4 Strike price $ 0.2 Private equity securities (1) Purchase price of recent transaction $ 0.3 Purchase price $ 0.3 Currency swaps (2) Third party appraisal $ (3.6 ) Broker quote $ (3.6 ) Currency forwards (2) Third party appraisal $ (5.7 ) Broker quote $ (5.7 ) Contingent consideration External valuation model $ (28.2 ) Discounted future payments $ (28.2 ) (1) As of December 31, 2019 , each asset type consists of one security. (2) See Note 12 for discussion of derivative instruments. Financial instruments disclosed, but not carried at fair value Sirius Group uses various financial instruments in the normal course of its business. The carrying values of Cash, Accrued investment income, certain other assets, Accounts payable on unsettled investment purchases, certain other liabilities, and other financial instruments not included in the table below approximated their fair values at June 30, 2020 and December 31, 2019 , due to their respective short maturities. As these financial instruments are not actively traded, their respective fair values are classified within Level 3. The following table includes financial instruments for which the carrying value differs from the estimated fair values at June 30, 2020 and December 31, 2019 : June 30, 2020 December 31, 2019 (Millions) Fair Value (1) Carrying Value Fair Value (1) Carrying Value Liabilities, Mezzanine equity, and Non-controlling interest: 2017 SEK Subordinated Notes $ 268.7 $ 290.5 $ 294.5 $ 291.2 2016 SIG Senior Notes $ 367.4 $ 394.4 $ 394.5 $ 394.0 Series B preference shares $ 179.5 $ 206.2 $ 186.4 $ 223.0 (1) Fair value estimated by internal pricing and considered a Level 3 measurement. |
Debt and standby letters of cre
Debt and standby letters of credit facilities | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt and standby letters of credit facilities | Debt and standby letters of credit facilities Sirius Group's debt outstanding as of June 30, 2020 and December 31, 2019 consisted of the following: (Millions) June 30, 2020 Effective Rate (1) December 31, 2019 Effective Rate (1) 2017 SEK Subordinated Notes, at face value $ 294.2 4.4 % $ 295.0 4.0 % Unamortized issuance costs (3.7 ) (3.8 ) 2017 SEK Subordinated Notes, carrying value 290.5 291.2 2016 SIG Senior Notes, at face value 400.0 4.7 % 400.0 4.7 % Unamortized discount (2.2 ) (2.3 ) Unamortized issuance costs (3.4 ) (3.7 ) 2016 SIG Senior Notes, carrying value 394.4 394.0 Total debt $ 684.9 $ 685.2 (1) Effective rate considers the effect of the debt issuance costs. 2017 SEK Subordinated Notes On September 22, 2017, Sirius Group issued floating rate callable subordinated notes denominated in Swedish kronor ("SEK") in the amount of SEK 2,750.0 million (or $346.1 million on date of issuance) at a 100% issue price ("2017 SEK Subordinated Notes"). The 2017 SEK Subordinated Notes were issued in an offering that was exempt from the registration requirements of the Securities Act of 1933 (the "Securities Act"). The 2017 SEK Subordinated Notes bear interest on their principal amount at a floating rate equal to the applicable Stockholm Interbank Offered Rate ("STIBOR") for the relevant interest period plus an applicable margin, payable quarterly in arrears on March 22, June 22, September 22, and December 22 in each year commencing on December 22, 2017, until maturity in September 2047. Beginning on September 22, 2022, the 2017 SEK Subordinated Notes may be redeemed, in whole or in part, at Sirius Group's option. In addition, within 90 days following the occurrence of a Specified Event (as defined below), the 2017 SEK Subordinated Notes may be redeemed, in whole but not in part, at Sirius Group's option. "Specified Event" means (a) an "Additional Amounts Event" in connection with a change in laws, rules or regulations as a result of which Sirius Group is obligated to pay additional amounts on the notes in respect of any withholding or deduction for taxes, (b) a "Tax Event" in connection with a change in laws, rules or regulations as a result of which interest on the notes is no longer fully deductible by Sirius Group for income tax purposes in the applicable jurisdiction (to the extent that such interest was so deductible as of the time of such Tax Event), (c) a "Rating Methodology Event" in connection with a change in, or clarification to, the rating methodology of Standard & Poor's or Fitch that results in a materially unfavorable capital treatment of the notes, or (d) a "Regulatory Event" in connection with a change in, or clarification to, applicable supervisory regulations that results in the notes no longer qualifying as Tier 2 Capital. Sirius Group incurred $4.6 million in expenses related to the issuance of the 2017 SEK Subordinated Notes (including SEK 27.5 million , or $3.5 million , in underwriting fees), which have been deferred and are being recognized into interest expense over the life of the 2017 SEK Subordinated Notes. For the three months ended June 30, 2020 and 2019 , Sirius Group recognized $(19.8) million and $0.3 million , respectively, of foreign currency exchange (losses) gains on the remeasurement of the 2017 SEK Subordinated Notes into USD from SEK. For the six months ended June 30, 2020 and 2019 , Sirius Group recognized $0.8 million and $11.3 million, respectively, of foreign currency exchange gains on the remeasurement of the 2017 SEK Subordinated Notes into USD from SEK. Taking into effect the amortization of all underwriting and issuance expenses, and applicable STIBOR, the 2017 SEK Subordinated Notes yielded an effective rate of approximately 4.4% and 4.1% annualized for the three months ended June 30, 2020 and 2019 , respectively. The effective rate for the six months ended June 30, 2020 and 2019 were 4.3% and 3.9% annualized, respectively. Sirius Group recorded $3.1 million and $3.2 million of interest expense, inclusive of amortization of issuance costs on the 2017 SEK Subordinated Notes for the three months ended June 30, 2020 and 2019 , respectively. Sirius Group recorded $6.1 million and $6.0 million of interest expense, inclusive of amortization of issuance costs on the 2017 SEK Subordinated Notes for the six months ended June 30, 2020 and 2019 , respectively. 2016 SIG Senior Notes On November 1, 2016, Sirius Group issued $400.0 million face value of senior unsecured notes ("2016 SIG Senior Notes") at an issue price of 99.209% for net proceeds of $392.4 million after taking into effect both deferrable and non-deferrable issuance costs. The 2016 SIG Senior Notes were issued in an offering that was exempt from the registration requirements of the Securities Act. The 2016 SIG Senior Notes bear an annual interest rate of 4.6% , payable semi-annually in arrears on May 1, and November 1, in each year commencing on May 1, 2017, until maturity in November 2026. Sirius Group incurred $5.1 million in expenses related to the issuance of the 2016 SIG Senior Notes (including $3.4 million in underwriting fees), which have been deferred and are being recognized into interest expense over the life of the 2016 SIG Senior Notes. Taking into effect the amortization of the original issue discount and all underwriting and issuance expenses, the 2016 SIG Senior Notes yield an effective rate of approximately 4.7% per annum. Sirius Group recorded $4.8 million , inclusive of amortization of issuance costs on the 2016 SIG Senior Notes, for both three month periods ended June 30, 2020 and 2019 . Sirius Group recorded $9.6 million, inclusive of amortization of issuance costs on the 2016 SIG Senior Notes, for both six month periods ended June 30, 2020 and 2019 . Standby Letter of Credit Facilities On November 9, 2019, Sirius International Insurance Corporation ("Sirius International"), a wholly owned subsidiary of the Company, renewed two standby letter of credit facility agreements totaling $125 million to provide capital support for Lloyd's Syndicate 1945. The first letter of credit is a renewal of a $90 million facility with Nordea Bank Finland Abp, London Branch, which is issued on an unsecured basis. The second letter of credit is a $35 million facility with DNB Bank ASA, Sweden Branch, $25 million of which is issued on an unsecured basis. Each facility is renewable annually. The above referenced facilities are subject to various affirmative, negative and financial covenants that the Company considers to be customary for such borrowings, including certain minimum net worth and maximum debt to capitalization standards. Sirius International has other secured letter of credit and trust arrangements with various financial institutions to support its insurance operations. As of June 30, 2020 and December 31, 2019 , these secured letter of credit and trust arrangements were collateralized by pledged assets and assets in trust of SEK 3.5 billion and SEK 3.4 billion, respectively, or $369.1 million and $363.3 million , respectively (based on the June 30, 2020 and December 31, 2019 SEK to USD exchange rates). As of June 30, 2020 and December 31, 2019 , Sirius America Insurance Company's trust arrangements were collateralized by pledged assets and assets in trust of $47.6 million and $57.7 million , respectively. As of June 30, 2020 and December 31, 2019 , Sirius Bermuda's letters of credit and trust arrangements were collateralized by pledged assets and assets in trust of $518.1 million and $784.0 million , respectively. Revolving Credit Facility In February 2018, Sirius Group, through its indirectly wholly-owned subsidiary Sirius International Group, Ltd. entered into a three -year, $300 million senior unsecured revolving credit facility (the "Facility"). The Facility provides access to loans for working capital and general corporate purposes, and letters of credit to support obligations under insurance and reinsurance agreements and retrocessional agreements. The Facility is subject to various affirmative, negative and financial covenants that Sirius Group considers to be customary for such borrowings, including certain minimum net worth, maximum debt to capitalization, financial strength rating standards, and change in control provisions. As of June 30, 2020 , there were no outstanding borrowings under the Facility. Debt and Standby Letter of Credit Facility Covenants As of June 30, 2020 , Sirius Group was in compliance with all of the covenants under the 2017 SEK Subordinated Notes, the 2016 SIG Senior Notes, the Nordea Bank Finland Abp, London Branch facility, and the DNB Bank ASA, Sweden Branch facility. In addition, as of June 30, 2020 , Sirius Group was in compliance with all of the covenants under the Facility. Interest Total interest expense incurred by Sirius Group for its indebtedness for the three months ended June 30, 2020 and 2019 was $7.9 million and $8.0 million , respectively. Total interest expense incurred by Sirius Group for its indebtedness for the six months ended June 30, 2020 and 2019 was $15.7 million and $15.6 million, respectively. Total interest paid by Sirius Group for its indebtedness for the three months ended June 30, 2020 and 2019 was $12.4 million and $12.2 million , respectively. Total interest paid by Sirius Group for its indebtedness for the six months ended June 30, 2020 and 2019 was $15.2 million and $14.9 million, respectively. |
Income taxes
Income taxes | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes The Company and its Bermuda-domiciled subsidiaries are not subject to Bermuda income tax under current Bermuda law. In the event there is a change in the current law such that taxes are imposed, the Company and its Bermuda-domiciled subsidiaries would be exempt from such tax until March 31, 2035, pursuant to the Bermuda Exempted Undertakings Tax Protection Act of 1966. The Company has subsidiaries and branches that operate in various other jurisdictions around the world that are subject to tax in the jurisdictions in which they operate. The jurisdictions in which the Company's subsidiaries and branches are subject to tax are Australia, Belgium, Canada, Denmark, Germany, Gibraltar, Hong Kong (China), Ireland, Luxembourg, Malaysia, Shanghai (China), Singapore, Spain, Sweden, Switzerland, the United Kingdom, and the United States. For the three-month period ended June 30, 2020 , Sirius Group reported an income tax expense (benefit) of $11.2 million on pre-tax income (loss) of $4.0 million . The difference between the effective tax rate on income from continuing operations and the Swedish statutory tax rate of 21.4% (the rate at which the majority of Sirius Group's worldwide operations are taxed) is primarily attributable to the exclusion of jurisdictions in the calculation of the annual estimated effective tax rate if their inclusion would not provide a reliable estimate of such rate (more specifically, if small changes in the estimated annual income recognized in a jurisdiction would result in significant changes in the annual estimated effective tax rate). For the six-month period ended June 30, 2020 , Sirius Group reported an income tax expense (benefit) of $(3.6) million on pre-tax income (loss) of $(132.1) million. The difference between the effective tax rate for the six months ended June 30, 2020 and the Swedish statutory rate of 21.4% was primarily attributable to valuation allowance recorded against certain deferred tax assets, the exclusion of jurisdictions with pretax losses for which no tax benefit can be recognized, and the exclusion of jurisdictions if their inclusion would not provide a reliable estimate of such rate. For the three-month period ended June 30, 2019 , Sirius Group reported an income tax expense (benefit) of $2.1 million on pre-tax income (loss) of $10.3 million . The effective tax rate on income from continuing operations did not materially differ from the statutory tax rate of 21.4% . For the six-month period ended June 30, 2019 , Sirius Group reported an income tax expense (benefit) of $19.3 million on pre-tax income (loss) of $131.6 million. The effective tax rate for the six months ended June 30, 2019 was 14.5% , which was lower than the Swedish statutory rate of 21.4% primarily because of income recognized in jurisdictions with lower rates than Sweden. In arriving at the effective tax rate for the six months ended June 30, 2020 and 2019 , Sirius Group forecasted all income and expense items including the change in unrealized investment gains (losses) and realized investment gains (losses) for the years ending December 31, 2020 and 2019 . Jurisdictions with a projected loss for the full year where no tax benefit can be recognized are excluded from the calculation of the estimated annual effective tax rate. In addition, jurisdictions were excluded in the calculation of the annual estimated effective tax rate if their inclusion would not provide a reliable estimate of such rate (more specifically, if small changes in the estimated annual income recognized in a jurisdiction would result in significant changes in the annual estimated effective tax rate). The Tax Cuts and Jobs Act ("TCJA") includes a new Base Erosion and Anti-Abuse Minimum Tax ("BEAT") provision, which is essentially a minimum tax that is potentially applicable to certain otherwise deductible payments made by U.S. entities to non-U.S. affiliates, including cross-border interest payments and reinsurance premiums. The statutory BEAT rate is 10% in 2019-2025, and then rises to 12.5% in 2026 and thereafter. The TCJA also includes provisions for Global Intangible Low-Taxed Income ("GILTI") under which taxes on foreign income are imposed on the excess of a deemed return on tangible assets of certain foreign subsidiaries. Consistent with accounting guidance, Sirius Group will treat BEAT as an in period tax charge when incurred in future periods for which no deferred taxes need to be provided and has made an accounting policy election to treat GILTI taxes in a similar manner. No provision for income taxes related to BEAT or GILTI was recorded as of June 30, 2020 and December 31, 2019 . Sirius Group has capital and liquidity in many of its subsidiaries, some of which may reflect undistributed earnings. If such capital or liquidity were to be paid or distributed to the Company or Sirius Group's subsidiaries, as dividends or otherwise, they may be subject to income or withholding taxes. Sirius Group generally intends to operate, and manage its capital and liquidity, in a tax-efficient manner. However, the applicable tax laws in relevant countries are still evolving, including in response to guidance from the Organisation for Economic Cooperation and Development. Accordingly, such payments or earnings may be subject to income or withholding tax in jurisdictions where they are not currently taxed or at higher rates of tax than currently taxed, and the applicable tax authorities could attempt to apply income or withholding tax to past earnings or payments. In April 2020, the European Court of Justice (the “ECJ”) published a decision disallowing the eligibility of an unrelated Gibraltar company for a European Union directive providing relief from withholding taxes on cross-border dividends. More generally, as a result of Brexit, it is projected that Gibraltar companies will cease to be eligible for European Union tax directives from January 1, 2021. The Company has a subsidiary organized in Gibraltar which has been a party to cross-border transactions with affiliates. The Company has assessed the tax consequences of these developments and concluded that they should not materially impact the Company’s provision for income taxes. Deferred tax asset, net of valuation allowance Sirius Group's net deferred tax liability, net of the valuation allowance as of June 30, 2020 is $28.2 million . Of the $28.2 million , $25.9 million relates to net deferred tax assets in U.S. subsidiaries, $137.9 million relates to net deferred tax assets in Luxembourg subsidiaries, $207.9 million relates to net deferred tax liabilities in Sweden subsidiaries, and $15.9 million relates to other net deferred tax asset. Sirius Group records a valuation allowance against deferred tax assets if it becomes more likely than not that all or a portion of a deferred tax asset will not be realized. Changes in valuation allowances from period to period are included in income tax expense in the period of change. In determining whether or not a valuation allowance, or change therein, is warranted, Sirius Group considers factors such as prior earnings history, expected future earnings, carryback and carryforward periods and strategies that if executed would result in the realization of a deferred tax asset. It is possible that certain planning strategies or projected earnings in certain subsidiaries may not be feasible to utilize the entire deferred tax asset, which could result in material changes to Sirius Group's deferred tax assets and tax expense. Uncertain tax positions Recognition of the benefit of a given tax position is based upon whether a company determines that it is more likely than not that a tax position will be sustained upon examination based upon the technical merits of the position. In evaluating the more likely than not recognition threshold, Sirius Group must presume that the tax position will be subject to examination by a taxing authority with full knowledge of all relevant information. If the recognition threshold is met, then the tax position is measured at the largest amount of benefit that is more than 50% likely of being realized upon ultimate settlement. As of June 30, 2020 , the total reserve for unrecognized tax benefits is $45.9 million . If Sirius Group determines in the future that its reserves for unrecognized tax benefits on permanent differences and interest and penalties are not needed, the reversal of $45.7 million of such reserves as of June 30, 2020 would be recorded as an income tax benefit and would impact the effective tax rate. If Sirius Group determines in the future that its reserves for unrecognized tax benefits on temporary differences are not needed, the reversal of $0.2 million of such reserves as of June 30, 2020 would not impact the effective tax rate due to deferred tax accounting but would accelerate the payment of cash to the taxing authority. Most of Sirius Group's reserves for unrecognized tax benefits on permanent differences relate to interest deductions denied by the Swedish Tax Authority ("STA"), as described further below. The STA has denied deductions claimed by two of the Company's Swedish subsidiaries in certain tax years for interest paid on intra-group debt instruments. Sirius Group has challenged the STA's denial in court based on the technical merits. In October 2018, one of the Swedish subsidiaries received an adverse decision from Sweden's Administrative Court, which Sirius Group has appealed. Sirius Group has taken into account this and other relevant developments in applicable Swedish tax law and has established a reserve for this uncertain tax position. As of June 30, 2020 , the total amount of such reserve was $45.0 million . In connection with this matter, Sirius Group has also taken into account the Stock Purchase Agreement ("SPA") by which Sirius Group was sold to CMIG International Holding Pte. Ltd ("CMIG International") in 2016 and has recorded an indemnification asset. Pursuant to the SPA, the seller agreed to indemnify the buyer and Sirius Group for, among other things, (1) any additional tax liability in excess of Sirius Group's accounting for uncertain tax positions for tax periods prior to the sale of Sirius Group to CMIG International, and (2) an impairment in Sirius Group's net deferred tax assets resulting from a final determination by a tax authority. While Sirius Group intends to continue challenging the STA's denial based on the technical merits (including appealing the adverse court decision received in October 2018), the ultimate resolution of these tax disputes is uncertain and no assurance can be given that there will be no material changes to Sirius Group's operating results or balance sheet in connection with these uncertain tax positions or the related indemnification. With few exceptions, Sirius Group is no longer subject to U.S. federal, state or non-U.S. income tax examinations by tax authorities for years before 2015. |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives Interest Rate Cap Sirius Group entered into an interest rate swap ("Interest Rate Cap") with two financial institutions where it paid an upfront premium and in return receives a series of quarterly payments based on the 3-month London Interbank Offered Rate at the time of payment. The Interest Rate Cap does not qualify for hedge accounting. Changes in fair value are recognized as unrealized gains or losses and are presented within Other revenue. The fair value of the interest rate cap has been estimated using a single broker quote and, accordingly, has been classified as a Level 3 measurement as of June 30, 2020 and December 31, 2019 . Collateral held is recorded within short-term investments with an equal amount recognized as a liability to return collateral. Sirius Group's liability to return that collateral is based on the amounts provided by the counterparties and investment earnings thereon. As at June 30, 2020 and December 31, 2019 , Sirius Group held collateral balances of $0.2 million at the end of each period. Foreign Currency Risk Derivatives Sirius Group executes foreign currency forwards, call options, swaps, and futures to manage foreign currency exposure. The foreign currency risk derivatives are not designated or accounted for under hedge accounting. Changes in fair value are recognized as unrealized gains or losses and are presented within Net foreign exchange gains. The fair value of the swaps and forwards are estimated using a single broker quote and accordingly, classified as a Level 3 measurement. The fair value of the futures is widely available and have quoted prices in active markets and accordingly, were classified as a Level 1 measurement. Sirius Group did not provide or hold any collateral associated with the foreign currency risk derivatives. Weather Derivatives Sirius Group holds assets and assumes liabilities related to weather and weather contingent risk management products. Weather and weather contingent derivative contracts are entered into with the objective of generating profits in normal climatic conditions. Accordingly, Sirius Group's weather and weather contingent derivatives are not designed to meet the criteria for hedge accounting under GAAP. Sirius Group receives payment of premium at the contract inception in exchange for bearing the risk of variations in a quantifiable weather index. Changes in fair value are recognized as unrealized gains or losses and are presented within Other revenue. The fair value of the weather derivatives was estimated using a broker quote. Because of the significance of the unobservable inputs used to estimate the fair value of Sirius Group's weather risk contracts, the fair value measurements of the contracts are deemed to be Level 3 measurements in the fair value hierarchy as of June 30, 2020 and December 31, 2019 . Sirius Group does not provide or hold any collateral associated with the weather derivatives. Equity Contracts Sirius Group executes trades in equity futures contracts, call options, and put options to hedge against positions in Common equities. The equity contracts are not designated or accounted for under hedge accounting. Changes in fair value are presented within Net unrealized investment (losses) gains . The fair value of the equity contracts is widely available and have quoted prices in active markets and accordingly, were classified as a Level 1 measurement. Equity Warrants Sirius Group holds restricted equity warrants as part of its investment strategy. The equity warrants are not designated or accounted for under hedge accounting. Changes in fair value are presented within Net unrealized investment (losses) gains . The fair value of the equity warrants is estimated using a single broker quote and accordingly, classified as a Level 3 measurement. Sirius Group did not provide or hold any collateral associated with the equity warrants. The following tables summarize information on the classification and amount of the fair value of derivatives not designated as hedging instruments within the Company's Consolidated Balance Sheets as at June 30, 2020 and December 31, 2019 : (Millions) June 30, 2020 December 31, 2019 Derivatives not designated as hedging instruments Notional Value Asset derivative at fair value (1) Liability derivative at fair value (2) Notional Value Asset derivative at fair value (1) Liability derivative at fair value (2) Interest rate cap $ 250.0 $ — $ — $ 250.0 $ — $ — Foreign currency swaps $ 40.0 $ 1.2 $ — $ 90.0 $ — $ 3.6 Foreign currency forwards $ 215.2 $ 0.7 $ — $ (30.0 ) $ 2.7 $ 5.7 Weather derivatives $ 54.1 $ — $ 1.0 $ 110.7 $ 7.0 $ — Equity futures contracts $ (2.8 ) $ — $ — $ 34.5 $ — $ — Foreign currency futures contracts $ 21.5 $ — $ — $ — $ — $ — Equity call options $ 49.8 $ 3.2 $ — $ — $ — $ — Equity put options $ (2.4 ) $ — $ 0.4 $ 31.0 $ 1.3 $ 0.2 Foreign currency call options $ 50.6 $ 1.3 $ — $ — $ — $ — Equity warrants $ 0.6 $ 0.6 $ — $ 0.4 $ 0.4 $ — (1) Asset derivatives are classified within Other assets within the Company's Consolidated Balance Sheets at June 30, 2020 and December 31, 2019 . (2) Liability derivatives are classified within Other liabilities within the Company's Consolidated Balance Sheets at June 30, 2020 and December 31, 2019 . The following table summarizes information on the classification and net impact on earnings, recognized in the Company's Consolidated Statements of (Loss) Income relating to derivatives during the three and six months ended June 30, 2020 and 2019 : (Millions) For the three months ended June 30, For the six months ended June 30, Derivatives not designated as hedging instruments Classification of gains (losses) recognized in earnings 2020 2019 2020 2019 Interest rate cap Other revenues $ — $ (0.1 ) $ — $ (0.2 ) Foreign currency swaps Net foreign exchange (losses) gains $ (3.4 ) $ 1.6 $ 2.6 $ 2.4 Foreign currency forwards Net foreign exchange (losses) gains $ (1.0 ) $ (3.2 ) $ (0.5 ) $ (3.0 ) Weather derivatives Other revenues $ (1.0 ) $ 0.6 $ (21.4 ) $ (5.5 ) Equity futures contracts Net realized investment gains $ (0.3 ) $ (0.2 ) $ 2.6 $ (0.8 ) Equity futures contracts Net unrealized investment gains (losses) $ 1.5 $ — $ 0.5 $ (0.2 ) Foreign currency futures contracts Net foreign exchange (losses) gains $ (0.7 ) $ — $ (0.7 ) $ — Equity put options Net realized investment gains $ 0.4 $ — $ 5.9 $ — Equity put options Net unrealized investment gains (losses) $ 0.9 $ (0.1 ) $ 1.4 $ (0.5 ) Foreign currency call options Net foreign exchange (losses) gains $ (0.1 ) $ — $ (0.1 ) $ — Equity warrants Net unrealized investment gains (losses) $ (0.3 ) $ 0.4 $ 0.2 $ 0.4 |
Share-based compensation
Share-based compensation | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-based compensation | Share-based compensation Sirius Group's compensation plans include grants for various types of share-based and non-share-based compensation awards to key employees and directors of Sirius Group. As of June 30, 2020 , Sirius Group's share-based compensation awards consist of performance shares units ("PSUs"), restricted share units ("RSUs"), restricted stock and options. Sirius Group recognized $ 2.5 million and $3.4 million of compensation expense under the share-based awards during the three months ended June 30, 2020 and 2019 , respectively. Sirius Group recognized $ 3.6 million of compensation expense under the share-based awards during both the six months ended June 30, 2020 and 2019 . Sirius Group paid $ 0.3 million and $ 3.3 million to employees for share-based awards during the three and the six months ended June 30, 2020 and 2019 , respectively. The following tables present unrecognized compensation cost associated with unvested awards and weighted average period over which it is expected to be recognized: (Millions) June 30, 2020 PSUs - IPO Incentive Awards PSUs - 2019 Long Term Incentive (LTI) RSUs Stock Options 2018 Long Term Incentive Plan (LTIP) Unrecognized compensation cost related to unvested awards $ 2.1 $ 1.0 $ 8.0 $ 1.6 $ 0.2 Weighted average recognition period (years) 1.5 years 1.5 years 1.5 years 1.7 years 0.5 years As of June 30, 2019 , there were $ 31.8 million of unrecognized share-based compensation costs, which are expected to be recognized over two to three years . The following table summarizes outstanding and changes in share-settled awards for the three and six months ended June 30, 2020 : Number of Shares Three months ended June 30, 2020 PSUs - IPO Incentive Awards PSUs - 2019 LTI RSUs Stock Options 2018 Long Term Incentive Plan (LTIP) Unvested, beginning of period 543,196 382,327 1,320,837 1,374,945 856,099 Granted — — — — — Vested — — — — — Forfeited — 4,824 46,085 — 9,942 Unvested, end of period 543,196 377,503 1,274,752 1,374,945 846,157 Number of Shares Six months ended June 30, 2020 PSUs - IPO Incentive Awards PSUs - 2019 LTI RSUs Stock Options 2018 Long Term Incentive Plan (LTIP) Unvested, beginning of period 555,163 391,136 1,353,852 1,374,945 870,471 Granted — — — — — Vested — — — — — Forfeited 11,967 13,633 79,100 — 24,314 Unvested, end of period 543,196 377,503 1,274,752 1,374,945 846,157 For the three months ended June 30, 2019 , Sirius Group granted members of the Board of Directors of the Company 34,615 restricted shares. For the six months ended June 30, 2019 , Sirius Group granted 401,311 PSUs, 1,411,714 RSUs, 1,374,944 stock options and 34,615 restricted shares. For the three and six months ended June 30, 2019, Sirius Group's employees forfeited 14,335 PSUs and 46,052 RSUs. Cash-Settled Awards From time to time, the Company may issue cash-settled awards to its employees. In February 2020, Sirius Group awarded long-term incentive compensation to certain employees of the Company in the form of three -year, cliff-vested, phantom performance shares and phantom restricted shares that are payable in cash. Phantom performance shares compound through the end of the three-year award period based on the performance metrics during the period. The performance goals were determined by the Compensation Committee of the Board of Directors upon granting of awards. During the three and six months ended June 30, 2020 , the Company recognized an expense of $ 1.5 million and $ 3.1 million, respectively, related to this award. In addition, in November 2019, Sirius Group issued retention awards to certain key employees of the Company that vest and are paid in equal proportions on or prior to March 15, 2020 and on or prior to March 15, 2021, subject to continued employment on the applicable vesting date. In total the retention awards issued under this retention program were $13.8 million, of which, $6.9 million was paid on March 15, 2020. During the three and six months ended June 30, 2020 , the Company recognized an expense of $1.4 million and $ 7.7 million, respectively, in General and administrative expenses. |
Common shareholder's equity, me
Common shareholder's equity, mezzanine equity, and non-controlling interests | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Common shareholder's equity, mezzanine equity, and non-controlling interests | Common shareholder's equity, mezzanine equity, and non-controlling interests Common shareholder's equity The authorized share capital of the Company consists of 500,000,000 Common shares, $0.01 par value per share, and 100,000,000 Preference shares, $0.01 par value per share. The following table presents changes in the Company's issued and outstanding Common shares for the three and six months ended June 30, 2020 and 2019 , respectively: Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Common shares: Shares issued and outstanding, beginning of period 115,299,341 115,262,303 115,299,341 115,151,251 Issuance of shares to directors and employees — 34,615 — 145,667 Shares issued and outstanding, end of period 115,299,341 115,296,918 115,299,341 115,296,918 Dividends The Company did not pay dividends to common shareholders during the three and six months ended June 30, 2020 and 2019 . Mezzanine equity Series B Preference Shares Sirius Group has issued 11,901,670 of the 15,000,000 designated Series B preference shares, with a par value of $0.01 per share. The Series B preference shares rank senior to common shares with respect to dividend rights, rights of liquidation, winding-up, or dissolution of the Company and junior to all of the Company's existing and future policyholder obligations and debt obligations. Without the consent of the holders of the Series B preference shares, the Company may not issue any class or series of shares that rank senior or pari passu with the Series B preference shares as to the payment of dividends or as to distribution of assets upon any voluntary or involuntary liquidation, winding-up or dissolution of the Company, if the aggregate gross proceeds from the issuance of all such senior or pari passu shares equals or exceeds $100 million . The Company adjusts the carrying value of the Series B preference shares to equal the redemption value at the end of each reporting period. At June 30, 2020 and December 31, 2019 , the balance of the Series B preference shares was $ 206.2 million and $223.0 million , respectively. Non-controlling interests Non-controlling interests consist of the ownership interests of non-controlling shareholders in consolidated entities and are presented separately on the balance sheet. At June 30, 2020 and December 31, 2019 , Sirius Group's balance sheet included $2.5 million and $2.4 million , respectively, in non-controlling interests. The following tables show the change in non-controlling interest for the three and six months ended June 30, 2020 and 2019 : (Millions) For the three months ended June 30, 2020 For the three months ended June 30, 2019 Non-controlling interests, beginning of the period $ 2.6 $ 2.2 Net income (loss) attributable to non-controlling interests (0.2 ) 0.8 Other, net 0.1 — Non-controlling interests, end of the period $ 2.5 $ 3.0 (Millions) For the six months ended June 30, 2020 For the six months ended June 30, 2019 Non-controlling interests, beginning of the period $ 2.4 $ 1.7 Net income attributable to non-controlling interests — 1.2 Other, net 0.1 0.1 Non-controlling interests, end of the period $ 2.5 $ 3.0 Alstead Re As of both June 30, 2020 and December 31, 2019 , Sirius Group recorded non-controlling interest of $ 2.3 million in Alstead Re Insurance Company ("Alstead Re"). (See Note 17 .) |
Earnings per share
Earnings per share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings per share | Earnings per share Basic earnings per share is computed by dividing net income available to Sirius Group common shareholders by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income (loss) available to Sirius Group common shareholders on a diluted basis by the weighted-average number of common shares outstanding adjusted to give effect to potentially dilutive securities. The Series B preference shares qualify as participating securities, which requires the application of the two-class method to compute both basic and diluted earnings per share. The two-class method is an earnings allocation formula that treats participating securities as having rights to earnings that would otherwise have been available to common shareholders. The Series B preference shares have no obligation to absorb losses of the Company in periods of net loss. The following table sets forth the computation of basic and diluted earnings per common share for the three and six months ended June 30, 2020 and 2019 : For the three months ended June 30, For the six months ended June 30, (Millions, except share and per share information) 2020 2019 2020 2019 Basic earnings per share Numerator: Net income $ (7.2 ) $ 8.2 $ (128.5 ) $ 112.3 Less: Income attributable to non-controlling interests 0.2 (0.8 ) — (1.2 ) Less: Change in carrying value of Series B preference shares (6.6 ) (0.8 ) 16.8 (9.2 ) Net income available for dividends out of undistributed earnings $ (13.6 ) $ 6.6 $ (111.7 ) $ 101.9 Less: Earnings attributable to Series B preference shares — (0.6 ) — (9.5 ) Net income available to Sirius Group common shareholders $ (13.6 ) $ 6.0 $ (111.7 ) $ 92.4 Denominator: Weighted average shares outstanding for basic earnings per share 115,278,176 115,243,685 115,269,720 115,212,772 Basic earnings per share $ (0.12 ) $ 0.05 $ (0.97 ) $ 0.80 Diluted earnings per share Numerator: Net income available to Sirius Group common shareholders $ (13.6 ) $ 6.0 $ (111.7 ) $ 92.4 Add: Change in carrying value of Series B preference shares — — (16.8 ) 9.2 Net income available to Sirius Group common shareholders on a diluted basis $ (13.6 ) $ 6.0 $ (128.5 ) $ 101.6 Denominator: Weighted average shares outstanding for basic earnings per share 115,278,176 115,243,685 115,269,720 115,212,772 Add: Series B preference shares — — 11,901,670 11,901,670 Add: Unvested performance share units and restricted share units — 552,682 — 427,960 Weighted average shares outstanding for diluted earnings per share (1) 115,278,176 115,796,367 127,171,390 127,542,402 Diluted earnings per share $ (0.12 ) $ 0.05 $ (1.01 ) $ 0.80 (1) For the three months ended June 30, 2020 , there were a total of 27,825,191 potentially dilutive securities excluded from the calculation of Diluted earnings per share. For the three months ended June 30, 2019 , there were 30,933,781 potentially dilutive securities excluded from the calculation of Diluted earnings per share. For the six months ended June 30, 2020 , there were a total of 15,923,521 potentially dilutive securities excluded from the calculation of Diluted earnings per share. For the six months ended June 30, 2019 , there were 19,156,833 potentially dilutive securities excluded from the calculation of Diluted earnings per share. |
Investments in unconsolidated e
Investments in unconsolidated entities | 6 Months Ended |
Jun. 30, 2020 | |
Investments in unconsolidated entities | |
Investments in unconsolidated entities | Investments in unconsolidated entities Sirius Group's investments in unconsolidated entities are included within Other long-term investments and consist of investments in common equity securities or similar instruments, which give Sirius Group the ability to exert significant influence over the investee's operating and financial policies ("equity method eligible unconsolidated entities"). Such investments may be accounted for under either the equity method or, alternatively, Sirius Group may elect to account for them under the fair value option. The following table presents the components of Other long-term investments as of June 30, 2020 and December 31, 2019 : (Millions) June 30, 2020 December 31, 2019 Equity method eligible unconsolidated entities, at fair value $ 157.5 $ 151.9 Other unconsolidated investments, at fair value (1) 210.6 194.9 Total Other long-term investments (2) $ 368.1 $ 346.8 (1) Includes Other long-term investments that are not equity method eligible. (2) There were no investments accounted for using the equity method as of June 30, 2020 and December 31, 2019 . Equity method eligible unconsolidated entities, at fair value Sirius Group has elected the fair value option to account for its equity method eligible investments accounted for as part of Other long-term investments for consistency of presentation with the rest of its investment portfolio. The following table presents Sirius Group's investments in equity method eligible unconsolidated entities as of June 30, 2020 and December 31, 2019 : Ownership interest as of Investee June 30, 2020 December 31, 2019 Instrument Held BE Reinsurance Limited 24.9 % 24.9 % Common shares BioVentures Investors (Offshore) IV LP 73.0 % 73.0 % Units Camden Partners Strategic Fund V (Cayman), LP 39.4 % 39.4 % Units Diamond LS I LP 15.6 % 16.0 % Units Gateway Fund LP 22.9 % 15.0 % Units Monarch 12.8 % 12.8 % Units New Energy Capital Infrastructure Credit Fund LP 29.3 % 30.5 % Units New Energy Capital Infrastructure Offshore Credit Fund LP 29.3 % 30.5 % Units Pie Preferred Stock (1) 30.1 % 30.1 % Preferred shares Pie Series B Preferred Stock (1) 22.5 % 22.4 % Preferred shares Quintana Energy Partners 21.8 % 21.8 % Units Tuckerman Capital V LP 48.3 % 48.3 % Units Tuckerman Capital V Co-Investment I LP 48.2 % 48.1 % Units (1) Sirius Group holds investments in several financing instruments of Pie Insurance Holdings, Inc. |
Variable interest entities
Variable interest entities | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable interest entities | Variable interest entities Sirius Group consolidates the results of operations and financial position of every voting interest entity ("VOE") in which it has a controlling financial interest and VIEs in which it is considered to be the primary beneficiary. The consolidation assessment, including the determination as to whether an entity qualifies as a VOE or VIE, depends on the facts and circumstances surrounding each entity. Sirius Group has determined that Alstead Re is a VIE for which Sirius Group is the primary beneficiary and is required to consolidate it. The following table presents Alstead Re's assets and liabilities, as classified in the Consolidated Balance Sheets as of June 30, 2020 and December 31, 2019 : (Millions) June 30, 2020 December 31, 2019 Assets: Fixed maturity investments $ 3.7 $ 3.9 Short-term investments 0.5 0.5 Cash 1.0 0.1 Total investments 5.2 4.5 Insurance and reinsurance premiums receivable (0.6 ) (0.3 ) Funds held by ceding companies 2.3 3.4 Deferred acquisition costs — 0.3 Other assets — — Total assets $ 6.9 $ 7.9 Liabilities Loss and loss adjustment expense reserves $ 0.4 $ 0.5 Unearned insurance and reinsurance premiums — 0.6 Other liabilities 0.1 0.1 Total liabilities $ 0.5 $ 1.2 Sirius Group is a passive investor in certain third-party-managed hedge and private equity funds, some of which are VIEs. Sirius Group is not involved in the design or establishment of these VIEs, nor does it actively participate in the management of the VIEs. The exposure to loss from these investments is limited to the carrying value of the investments at the balance sheet date. Sirius Group calculates maximum exposure to loss to be (i) the amount invested in the debt or equity of the VIE, (ii) the notional amount of VIE assets or liabilities where Sirius Group has also provided credit protection to the VIE with the VIE as the referenced obligation, and (iii) other commitments and guarantees to the VIE. Sirius Group does not have any VIEs that it sponsors nor any VIEs where it has recourse to it or has provided a guarantee to the VIE interest holders. The following table presents total assets of unconsolidated VIEs in which Sirius Group holds a variable interest, as well as the maximum exposure to loss associated with these VIEs: Maximum Exposure to Loss (Millions) Total VIE Assets On-Balance Sheet Off-Balance Sheet Total June 30, 2020 Other long-term investments (1) $ 261.1 $ 107.8 $ 8.3 $ 116.1 Total at June 30, 2020 $ 261.1 $ 107.8 $ 8.3 $ 116.1 December 31, 2019 Other long-term investments (1) $ 257.8 $ 102.6 $ 16.3 $ 118.9 Total at December 31, 2019 $ 257.8 $ 102.6 $ 16.3 $ 118.9 (1) Comprised primarily of hedge funds and private equity funds. |
Transactions with related parti
Transactions with related parties | 6 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
Transactions with related parties | Transactions with related parties (Re)insurance contracts In the normal course of business, Sirius Group enters into insurance and reinsurance contracts with certain of its insurance and MGU affiliates, or their subsidiaries. During the three and six months ended June 30, 2020 , these contracts resulted in gross written premiums of $26.8 million and $68.1 million, respectively. During the three and six months ended June 30, 2019 , these contracts resulted in gross written premiums of $24.9 million and $49.0 million, respectively. As of June 30, 2020 and December 31, 2019 , Sirius Group had total receivables due from affiliates of $31.6 million and $16.1 million , respectively. As of both June 30, 2020 and December 31, 2019 , Sirius Group had total payables due to affiliates of $ 0.9 million. Transaction Matters Letter Agreement On August 10, 2020, the Company paid $1.9 million for certain legal expenses incurred by CM Bermuda Limited ("CM Bermuda"), a Bermuda exempted company and majority shareholder of Sirius Group and CMIG International Holding Pte. Ltd. (“CMIG International”) in connection with the Transaction Matters Letter Agreement entered into by Sirius Group, CM Bermuda and CMIG International on August 6, 2020. (See Note 20 .) Series B preference shareholders expense reimbursement agreement On March 27, 2020, the Company entered into an expense reimbursement agreement (the “Agreement”) with each of the holders of the Series B preference shares. Pursuant to the Agreement, the Company agreed to reimburse each of the holders of the Series B preference shares for all reasonable and documented out-of-pocket expenses incurred by them in connection with pursuing a potential negotiated transaction (a “Potential Transaction”) involving the Company or one or more of its subsidiaries on or after January 8, 2020 up to $250,000 for each holder of Series B preference shares together with its affiliates and $1,000,000 in the aggregate with any reimbursement above such amounts requiring the written consent of the Company (but excluding any expenses incurred in connection with the evaluation or enforcement of any rights or obligations of the holders of the Series B preference shares or the Company relating to the preference shares in the Company held by such Series B preference shareholders). In addition, the Company agreed to reimburse the holders of the Series B preference shares for any and all reasonable and documented out-of-pocket attorneys’ fees or other fees payable to third party advisors up to $500,000 in the aggregate to the extent arising out of any litigation, dispute, arbitration or other proceeding commencing after the date of the Agreement that is not brought or commenced by a holder of the Series B preference shares and involves the Company, such Series B preference shareholder's investment in the Company or a Potential Transaction. As of the end of the second quarter 2020, no payments have been requested or made under the Agreement. Other Meyer "Sandy" Frucher is the Company's Chairman of the Board of Directors and was also Vice Chairman of Nasdaq, Inc. ("Nasdaq") until December 2019. On January 1, 2020, Mr. Frucher concluded his tenure as Vice Chairman of Nasdaq and assumed the role of Strategic Advisor to Nasdaq. The Company is traded on the Nasdaq Global Select Market and has business transactions that are related to its listing on the exchange under the normal course of business. (See Note 3 .) |
Commitments and contingencies
Commitments and contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and contingencies Legal Proceedings Sirius Group, and the insurance and reinsurance industry in general, are routinely subject to claims related litigation and arbitration in the normal course of business, as well as litigation and arbitration that do not arise from, or are directly related to, claims activity. Sirius Group's estimates of the costs of settling matters routinely encountered in claims activity are reflected in the reserves for unpaid loss and LAE. (See Note 5 .) Sirius Group considers the requirements of ASC 450, Contingencies ("ASC 450"), when evaluating its exposure to non-claims related litigation and arbitration. ASC 450 requires that accruals be established for litigation and arbitration if it is probable that a loss has been incurred and it can be reasonably estimated. ASC 450 also requires that litigation and arbitration be disclosed if it is probable that a loss has been incurred or if there is a reasonable possibility that a loss may have been incurred. Management has considered all pending and/or threatened non-claims related litigation and has not identified any matters triggering disclosure under ASC 450. Leases Sirius Group leases office space and equipment under various noncancelable operating lease agreements. The average life of the office leases is 7 years and the equipment leases is 3 years . During the three and six months ended June 30, 2020 , Sirius Group recognized operating lease expense of $2.9 million and $6.0 million, respectively, including property taxes and routine maintenance expense as well as rental expenses related to short term leases. During the three and six months ended June 30, 2019 , Sirius Group recognized operating lease expense of $3.2 million and $5.8 million, respectively, including property taxes and routine maintenance expense as well as rental expenses related to short term leases. As of June 30, 2020 and December 31, 2019 , Sirius Group had $28.8 million and $27.4 million of operating lease right-of-use assets, respectively, included in Other assets. As of June 30, 2020 and December 31, 2019 , Sirius Group had $30.5 million and $29.3 million of operating lease liability, respectively, included in Other liabilities. The following table presents the lease balances within the Consolidated Balance Sheets as of June 30, 2020 and December 31, 2019 : (millions) Balance Sheet Classification June 30, 2020 December 31, 2019 Operating lease right-of-use assets Other assets $28.8 $27.4 Current lease liabilities Other liabilities $9.1 $8.3 Non-current lease liabilities Other liabilities $21.4 $21.0 The following table presents weighted average remaining lease term and weighted average discount rate as of June 30, 2020 : Weighted average lease term (years) as at June 30, 2020 Leased offices 7 years Leased equipment 3 years Weighted average discount rate: Leased offices 3.3 % Leased equipment 3.4 % The following table presents future annual minimum rental payments required under non-cancellable leases and the present value discount to arrive at total lease liability as of June 30, 2020 : (Millions) Future Payments 2020 $ 4.5 2021 9.6 2022 9.4 2023 5.6 2024 2.3 2025 and after 1.1 Total future annual minimum rental payments as of June 30, 2020 32.5 Less: present value discount (2.0 ) Total lease liability as of June 30, 2020 $ 30.5 As of June 30, 2020 , the Company's future operating lease obligations that have not yet commenced are immaterial. |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Events Merger Agreement with Third Point Reinsurance, Ltd. On August 6, 2020, the Company announced that it had entered into an Agreement and Plan of Merger (the “Merger Agreement”), by and among the Company, Third Point Reinsurance Ltd., a Bermuda exempted company (“TPRE”), and Yoga Merger Sub Limited, a Bermuda exempted company and a wholly owned subsidiary of TPRE (“Merger Sub”). The Merger Agreement provides, among other things, that, upon the terms and subject to the conditions set forth in the Merger Agreement and a Statutory Merger Agreement to be executed by the Company, TPRE and Merger Sub (the “Statutory Merger Agreement”), Merger Sub will merge with and into the Company, with the Company surviving as a wholly owned subsidiary of TPRE (the “Merger”). The Merger Agreement, the Statutory Merger Agreement, and the consummation of the transactions contemplated by the Merger Agreement and the Statutory Merger Agreement, including the Merger (the “Transactions”), have been unanimously approved by the board of directors of each of the Company and TPRE. The consummation of the Merger is expected to occur during the first quarter of 2021, subject to the satisfaction or waiver of applicable closing conditions. Under the terms of the Merger Agreement, as of the effective time of the Merger (the “Effective Time”), each issued and outstanding common share, par value $0.01 per share, of the Company (“Company Shares”) will be converted into the right to receive, at the election of the holder thereof, (i) $9.50 in cash (the “Cash Election”), or (ii) (A) 0.743 of a common share, par value $0.10 per share, of TPRE (“TPRE Shares”) and (B) one contractual contingent value right (each, a “CVR”), which will represent the right to receive a contingent cash payment, and which, taken together with the fraction of the TPRE Share received, guarantee that on the second anniversary of the closing date of the Merger, the electing shareholder will have received equity and cash with a value of at least $13.73 per share (the “Share & CVR Election”), or (iii) (A) $0.905 in cash, (B) a number of TPRE Shares equal to the Mixed Election Common Shares Exchange Ratio (as such term is defined in the Merger Agreement), (C) a number of newly issued Series A preference shares of TPRE (“TPRE Preference Shares”) equal to the Mixed Election Preference Shares Exchange Ratio (as such term is defined in the Merger Agreement), (D) 0.190 of a warrant issued by TPRE (each, a “Warrant”) and (E) $0.905 aggregate principal amount of a right (each, an “Upside Right”) issued by TPRE (the “Mixed Election”). Elections must be made no later than ten (10) Business Days (as defined in the Merger Agreement) prior to the closing of the Transactions. Pursuant to the Company Voting and Support Agreement (as defined below), CM Bermuda, whose parent company is CMIG International, has agreed to make the Mixed Election. Holders of Company Shares who do not make an election will be deemed to have made the Share & CVR Election. No fractional TPRE Shares or TPRE Preference Shares will be issued in the Merger, and holders of Company Shares will receive cash in lieu of any fractional TPRE Shares or TPRE Preference Shares. Dissenting Company shareholders will be entitled to exercise appraisal rights under Bermuda law. The consummation of the Merger is subject to the satisfaction or waiver of certain conditions, including, among others, (i) the affirmative vote in favor of the approval of the Merger Agreement, the Merger and the Statutory Merger Agreement by the holders of a majority of the voting power of the Company Shares and the Company’s Series B preference shares, voting together as a single class, that are present (in person or by proxy) at the Company shareholder meeting called for such purpose, (ii) the affirmative vote in favor of the approval of the issuance of TPRE Shares in the Merger as contemplated by the Merger Agreement (the “TPRE Share Issuance”) by the holders of at least a majority of the voting power of TPRE Shares that are present (in person or by proxy) at the TPRE shareholder meeting called for such purpose, (iii) the expiration or termination of any applicable waiting period (together with any extensions thereof) under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (the “HSR Act”) and any other applicable antitrust laws, (iv) the receipt of certain approvals under applicable insurance laws, (v) the absence of any effective order issued by any governmental authority or court of competent jurisdiction or other legal restraint prohibiting or preventing the consummation of the Merger, (vi) in the case of each party’s obligation to effect the Merger, the absence of a material adverse effect with respect to the other party and its subsidiaries, taken as a whole, since the date of the Merger Agreement, (vii) in the case of each party’s obligation to effect the Merger, subject to certain materiality exceptions, the accuracy of the representations and warranties made by the other party, and compliance by the other party in all material respects with such party’s respective obligations under the Merger Agreement and (viii) other customary closing conditions. The Merger Agreement did not impact the Company's consolidated financial statements as of and for the three and six months ended June 30, 2020. Transaction Matters Agreement On August 6, 2020, CM Bermuda, the Company, TPRE and CMIG International entered into a Transaction Matters Letter Agreement (the “Transaction Matters Agreement”), pursuant to which, among other things and subject to the terms and conditions thereof, the Company has agreed to pay for and reimburse CMIG International and CM Bermuda for certain legal expenses incurred by CMIG International and CM Bermuda in connection with the Transactions and the related sales process or other discussions between CMIG International, CM Bermuda and the Company occurring on or after March 6, 2020, and TPRE has agreed to assume such remaining payment obligations of the Company following the closing of the Merger. TPRE has also agreed to pay for the fees and expenses payable by CMIG International and CM Bermuda to its financial advisor, Goldman Sachs (Asia) L.L.C., relating to the Transactions. Under the terms of the Transaction Matters Agreement, the Company is not permitted to terminate or threaten to terminate the Merger Agreement following a change by the TPRE board of directors of its recommendation to TPRE’s shareholders in favor of the TPRE Share Issuance without the prior written consent of CM Bermuda and CMIG International. |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The accompanying Unaudited Consolidated Financial Statements at June 30, 2020 , have been prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP") and the rules and regulations of the U.S. Securities and Exchange Commission ("SEC") for interim financial information. The accompanying Unaudited Consolidated Financial Statements present the consolidated results of operations, financial condition, and cash flows of the Company and its subsidiaries and those entities in which the Company has control and a majority economic interest as well as those variable interest entities ("VIEs") that meet the requirements for consolidation. All significant intercompany transactions have been eliminated in consolidation. These Unaudited Consolidated Financial Statements do not include all disclosures normally included in annual financial statements prepared in accordance with GAAP and should be read in conjunction with the Audited Consolidated Financial Statements and the related notes for the year ended December 31, 2019 . The consolidated financial information as of December 31, 2019 included herein has been derived from the Audited Consolidated Financial Statements as of December 31, 2019 . Effective January 1, 2020, the Company changed its reportable segments. The change in reportable segments had no impact on the Company’s historical consolidated financial positions, results of operations or cash flows as previously reported. Where applicable, all prior periods presented have been revised to conform to this new presentation. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In the opinion of management, the accompanying Unaudited Consolidated Financial Statements reflect all adjustments (consisting of normally recurring accruals) necessary for a fair statement of results on an interim basis. Tabular dollar amounts are in millions, with the exception of share and per share amounts. All amounts are reported in U.S. dollars, except where noted otherwise. |
Recently adopted changes in accounting principles | Recently adopted changes in accounting principles Credit losses Effective January 1, 2020, Sirius Group adopted Accounting Standards Update ("ASU") 2016-13, Measurement of Credit Losses on Financial Instruments (ASC 326), which establishes new guidance for the recognition of credit losses for financial assets measured at amortized cost ("current expected credit losses" or "CECL"). The guidance applies to financial assets that have the contractual right to receive cash, including reinsurance receivables and recoverables and requires reporting entities to estimate the credit losses expected over the life of a credit exposure using historical information, current information and reasonable and supportable forecasts that affect the collectability of the financial asset. The expected credit losses, and subsequent adjustments to such losses, are recorded through an allowance account that is 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. Sirius Group adopted the new guidance using a modified retrospective transition method through a cumulative-effect adjustment to retained earnings. As a result of the adoption of the new guidance, Sirius Group estimated a total CECL allowance of $ 14.9 million. The adoption of this guidance did not materially impact our results of operations or cash flows. Due to the adoption of the standard using the retrospective cumulative-effect adjustment method, the Company recorded $ (6.8) million cumulative-effect adjustment net of taxes to its opening retained earnings. (See Note 7 .) Fair Value Measurement Disclosures Effective January 1, 2020, Sirius Group adopted ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement , which modifies the disclosure requirements of fair value measurements. The adoption of this guidance did not have any impact on the consolidated financial statements but expanded disclosure of the ranges and weighted averages of significant unobservable inputs used in Level 3 fair values. (See Note 9 .) Simplifying the Accounting for Income Taxes Effective January 1, 2020, Sirius Group adopted ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which eliminates certain exceptions, and clarifies and simplifies certain aspects of accounting for income taxes. Sirius Group has fully adopted all provisions of the guidance with consideration of the various transition methods. Sirius Group adopted the removal of the exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. The removal of this exception allowed Sirius Group to record a benefit for a year-to-date loss in excess of its forecasted loss in certain jurisdictions. The removal of this exception was applied prospectively to the Income tax benefit (expense) line on the Consolidated Statements of (Loss) Income. Sirius Group adopted all other provisions in the guidance, including the requirement for an entity to recognize a franchise tax (or similar tax) that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based tax through a cumulative-effect adjustment to retained earnings. These provisions did not have a material impact on the Consolidated Financial Statements or were not applicable to Sirius Group. |
Long-Lived Assets Classified as Held for Sale | Long-Lived Assets Classified as Held for Sale A long-lived asset or a disposal group classified as held for sale (but not qualifying for presentation as a discontinued operation in the Consolidated Financial Statements) is presented separately in the Consolidated Balance Sheets and is measured at the lower of its carrying amount or fair value less cost to sell. The assets and liabilities of a disposal group classified as held for sale are presented separately in the asset and liability sections, respectively, of the Consolidated Balance Sheets and are not netted. The major classes of assets and liabilities classified as held for sale are separately disclosed in the notes to financial statements. (See Note 3 .) |
Significant transactions Signif
Significant transactions Significant transactions - (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of asset held for sale | The following table summarizes the major categories of assets classified as held for sale related to the Empire Transaction as of June 30, 2020 and December 31, 2019 : (Millions) June 30, 2020 December 31, 2019 Short-term investments, at fair value $ 9.3 $ — Cash 0.2 — Accounts receivable on unsettled investment sales 1.0 — Total assets held for sale $ 10.5 $ — |
Segment information (Tables)
Segment information (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Summary of segment results | The following tables summarize the segment results for the three months ended June 30, 2020 and 2019 : For the three months ended June 30, 2020 (Expressed in millions of U.S. dollars) Global Reinsurance Global A&H U.S. Specialty Runoff & Other Corporate Eliminations Total Gross written premiums $ 213.5 $ 83.7 $ 25.5 $ (0.1 ) $ — $ 322.6 Net written premiums $ 220.5 $ 62.0 $ 23.8 $ (0.3 ) $ — $ 306.0 Net earned insurance and reinsurance premiums $ 240.9 $ 113.2 $ 15.2 $ 0.5 $ — $ 369.8 Loss and allocated LAE (1) (148.5 ) (69.6 ) (10.4 ) 0.5 — (228.0 ) Insurance and reinsurance acquisition expenses (53.7 ) (31.5 ) (3.4 ) 0.3 10.2 (78.1 ) Technical profit (loss) 38.7 12.1 1.4 1.3 10.2 63.7 Unallocated LAE (2) (5.2 ) (0.6 ) (0.1 ) (1.7 ) (4.7 ) (12.3 ) Other underwriting expenses (20.5 ) (6.7 ) (2.9 ) (1.5 ) (4.7 ) (36.3 ) Underwriting income (loss) 13.0 4.8 (1.6 ) (1.9 ) 0.8 15.1 Service fee revenue (3) — 23.1 — — (11.7 ) 11.4 Managing general underwriter unallocated LAE — (6.2 ) — — 6.2 — Managing general underwriter other underwriting expenses — (4.7 ) — — 4.7 — General and administrative expenses, MGU + Runoff & Other (4) — (11.0 ) — (1.4 ) — (12.4 ) Underwriting income (loss), including net service fee income 13.0 6.0 (1.6 ) (3.3 ) — 14.1 Net investment income 14.8 Net realized investment gains 7.1 Net unrealized investment gains 8.7 Net foreign exchange (losses) (16.1 ) Other revenue (5) (1.2 ) General and administrative expenses (6) (11.5 ) Intangible asset amortization expenses (4.0 ) Interest expense on debt (7.9 ) Pre-tax income $ 4.0 Underwriting Ratios (7) Loss ratio 63.8 % 62.0 % 69.1 % NM NM 65.0 % Acquisition expense ratio 22.3 % 27.8 % 22.4 % NM NM 21.1 % Other underwriting expense ratio 8.5 % 5.9 % 19.1 % NM NM 9.8 % Combined ratio (7) 94.6 % 95.7 % 110.6 % NM NM 95.9 % Goodwill and intangible assets (8) $ — $ 564.6 $ — $ 8.1 $ — $ 572.7 (1) Loss and allocated loss adjustment expenses ("LAE") are part of Loss and loss adjustment expenses on the Consolidated Statements of (Loss) Income (the sum of Loss and allocated LAE and Unallocated LAE is equal to Loss and loss adjustment expenses on the Consolidated Statements of (Loss) Income). (2) Unallocated LAE are part of Loss and loss adjustment expenses on the Consolidated Statements of (Loss) Income (the sum of Loss and allocated LAE and Unallocated LAE is equal to Loss and loss adjustment expenses on the Consolidated Statements of (Loss) Income). (3) Service fee revenue is part of Other revenue on the Consolidated Statements of (Loss) Income (the sum of Service fee revenue and Other revenue is equal to Other revenue on the Consolidated Statements of (Loss) Income). (4) General and administrative expenses, MGU + Runoff & Other is part of General and administrative expenses on the Consolidated Statements of (Loss) Income (the sum of General and administrative expenses, MGU + Runoff & Other and General and administrative expenses is equal to General and administrative expenses on the Consolidated Statements of (Loss) Income). (5) Other revenue is presented net of Service fee revenue and is comprised mainly of losses from derivatives (see Note 12 ) (the sum of Service fee revenue and Other revenue is equal to Other revenue on the Consolidated Statements of (Loss) Income). (6) General and administrative expenses are presented net of General and administrative expenses, MGU + Runoff & Other (the sum of General and administrative expenses, MGU + Runoff & Other and General and administrative expenses is equal to General and administrative expenses on the Consolidated Statements of (Loss) Income). (7) Ratios considered not meaningful ("NM") to Runoff & Other and Corporate Eliminations. (8) Sirius Group does not allocate its assets by segment, with the exception of goodwill and intangible assets. For the three months ended June 30, 2019 (Expressed in millions of U.S. dollars) Global Reinsurance Global A&H U.S. Specialty Runoff & Other Corporate Eliminations Total Gross written premiums $ 317.1 $ 152.8 $ 16.0 $ 1.2 $ — $ 487.1 Net written premiums $ 266.7 $ 120.6 $ 14.1 $ 0.3 $ — $ 401.7 Net earned insurance and reinsurance premiums $ 244.9 $ 118.8 $ 6.7 $ 0.3 $ — $ 370.7 Loss and allocated LAE (1) (188.5 ) (71.8 ) (4.1 ) (2.4 ) — (266.8 ) Insurance and reinsurance acquisition expenses (50.0 ) (36.0 ) (1.8 ) (1.8 ) 12.6 (77.0 ) Technical profit (loss) 6.4 11.0 0.8 (3.9 ) 12.6 26.9 Unallocated LAE (2) (4.7 ) (2.0 ) (0.1 ) (0.2 ) (4.2 ) (11.2 ) Other underwriting expenses (21.6 ) (5.9 ) (2.1 ) (1.1 ) (4.8 ) (35.5 ) Underwriting income (loss) (19.9 ) 3.1 (1.4 ) (5.2 ) 3.6 (19.8 ) Service fee revenue (3) — 30.3 — — (13.7 ) 16.6 Managing general underwriter unallocated LAE — (5.3 ) — — 5.3 — Managing general underwriter other underwriting expenses — (4.8 ) — — 4.8 — General and administrative expenses, MGU + Runoff & Other (4) — (15.0 ) — (1.0 ) — (16.0 ) Underwriting income (loss), including net service fee income (19.9 ) 8.3 (1.4 ) (6.2 ) — (19.2 ) Net investment income 24.4 Net realized investment gains 15.6 Net unrealized investment gains 15.5 Net foreign exchange (losses) (0.6 ) Other revenue (5) (1.2 ) General and administrative expenses (6) (12.2 ) Intangible asset amortization expenses (4.0 ) Interest expense on debt (8.0 ) Pre-tax income $ 10.3 Underwriting Ratios (7) Loss ratio 78.9 % 62.1 % 62.7 % NM NM 75.0 % Acquisition expense ratio 20.4 % 30.3 % 26.9 % NM NM 20.8 % Other underwriting expense ratio 8.8 % 5.0 % 31.3 % NM NM 9.6 % Combined ratio (7) 108.1 % 97.4 % 120.9 % NM NM 105.4 % Goodwill and intangible assets (8) $ — $ 580.2 $ — $ 8.1 $ — $ 588.3 (1) Loss and allocated loss adjustment expenses ("LAE") are part of Loss and loss adjustment expenses on the Consolidated Statements of (Loss) Income (the sum of Loss and allocated LAE and Unallocated LAE is equal to Loss and loss adjustment expenses on the Consolidated Statements of (Loss) Income). (2) Unallocated LAE are part of Loss and loss adjustment expenses on the Consolidated Statements of (Loss) Income (the sum of Loss and allocated LAE and Unallocated LAE is equal to Loss and loss adjustment expenses on the Consolidated Statements of (Loss) Income). (3) Service fee revenue is part of Other revenue on the Consolidated Statements of (Loss) Income (the sum of Service fee revenue and Other revenue is equal to Other revenue on the Consolidated Statements of (Loss) Income). (4) General and administrative expenses, MGU + Runoff & Other is part of General and administrative expenses on the Consolidated Statements of (Loss) Income (the sum of General and administrative expenses, MGU + Runoff & Other and General and administrative expenses is equal to General and administrative expenses on the Consolidated Statements of (Loss) Income). (5) Other revenue is presented net of Service fee revenue and is comprised mainly of a change in contingent consideration (see Note 9 ) and gains (losses) from derivatives (see Note 12 ) (the sum of Service fee revenue and Other revenue is equal to Other revenue on the Consolidated Statements of (Loss) Income). (6) General and administrative expenses are presented net of General and administrative expenses, MGU + Runoff & Other (the sum of General and administrative expenses, MGU + Runoff & Other and General and administrative expenses is equal to General and administrative expenses on the Consolidated Statements of (Loss) Income). (7) Ratios considered not meaningful ("NM") to Runoff & Other and Corporate Eliminations. (8) Sirius Group does not allocate its assets by segment, with the exception of goodwill and intangible assets. The following tables summarize the segment results for the six months ended June 30, 2020 and 2019 : For the six months ended June 30, 2020 (Expressed in millions of U.S. dollars) Global Reinsurance Global A&H U.S. Specialty Runoff & Other Corporate Eliminations Total Gross written premiums $ 678.8 $ 345.8 $ 46.3 $ 69.3 $ — $ 1,140.2 Net written premiums $ 565.9 $ 262.7 $ 39.0 $ 68.3 $ — $ 935.9 Net earned insurance and reinsurance premiums $ 475.9 $ 231.1 $ 28.0 $ 69.5 $ — $ 804.5 Loss and allocated LAE (1) (405.7 ) (149.9 ) (18.1 ) (68.4 ) — (642.1 ) Insurance and reinsurance acquisition expenses (104.6 ) (62.3 ) (6.4 ) (0.1 ) 20.6 (152.8 ) Technical profit (loss) (34.4 ) 18.9 3.5 1.0 20.6 9.6 Unallocated LAE (2) (10.2 ) (2.3 ) (0.2 ) (2.5 ) (10.1 ) (25.3 ) Other underwriting expenses (41.8 ) (12.3 ) (8.1 ) (2.4 ) (9.7 ) (74.3 ) Underwriting (loss) income (86.4 ) 4.3 (4.8 ) (3.9 ) 0.8 (90.0 ) Service fee revenue (3) — 59.0 — — (22.7 ) 36.3 Managing general underwriter unallocated LAE — (12.2 ) — — 12.2 — Managing general underwriter other underwriting expenses — (9.7 ) — — 9.7 — General and administrative expenses, MGU + Runoff & Other (4) — (25.2 ) — (2.9 ) — (28.1 ) Underwriting (loss) income, including net service fee income (86.4 ) 16.2 (4.8 ) (6.8 ) — (81.8 ) Net investment income 28.3 Net realized investment gains 27.4 Net unrealized investment (losses) (35.1 ) Net foreign exchange gains 2.4 Other revenue (5) (21.8 ) General and administrative expenses (6) (27.9 ) Intangible asset amortization expenses (7.9 ) Interest expense on debt (15.7 ) Pre-tax (loss) income $ (132.1 ) Underwriting Ratios (7) Loss ratio 87.4 % 65.9 % 65.4 % NM NM 83.0 % Acquisition expense ratio 22.0 % 27.0 % 22.9 % NM NM 19.0 % Other underwriting expense ratio 8.8 % 5.3 % 28.9 % NM NM 9.2 % Combined ratio (7) 118.2 % 98.2 % 117.2 % NM NM 111.2 % Goodwill and intangible assets (8) $ — $ 564.6 $ — $ 8.1 $ — $ 572.7 (1) Loss and allocated loss adjustment expenses ("LAE") are part of Loss and loss adjustment expenses on the Consolidated Statements of (Loss) Income (the sum of Loss and allocated LAE and Unallocated LAE is equal to Loss and loss adjustment expenses on the Consolidated Statements of (Loss) Income). (2) Unallocated LAE are part of Loss and loss adjustment expenses on the Consolidated Statements of (Loss) Income (the sum of Loss and allocated LAE and Unallocated LAE is equal to Loss and loss adjustment expenses on the Consolidated Statements of (Loss) Income). (3) Service fee revenue is part of Other revenue on the Consolidated Statements of (Loss) Income (the sum of Service fee revenue and Other revenue is equal to Other revenue on the Consolidated Statements of (Loss) Income). (4) General and administrative expenses, MGU + Runoff & Other is part of General and administrative expenses on the Consolidated Statements of (Loss) Income (the sum of General and administrative expenses, MGU + Runoff & Other and General and administrative expenses is equal to General and administrative expenses on the Consolidated Statements of (Loss) Income). (5) Other revenue is presented net of Service fee revenue and is comprised mainly of losses from derivatives (see Note 12 ) (the sum of Service fee revenue and Other revenue is equal to Other revenue on the Consolidated Statements of (Loss) Income). (6) General and administrative expenses are presented net of General and administrative expenses, MGU + Runoff & Other (the sum of General and administrative expenses, MGU + Runoff & Other and General and administrative expenses is equal to General and administrative expenses on the Consolidated Statements of (Loss) Income). (7) Ratios considered not meaningful ("NM") to Runoff & Other and Corporate Eliminations. (8) Sirius Group does not allocate its assets by segment, with the exception of goodwill and intangible assets. For the six months ended June 30, 2019 (Expressed in millions of U.S. dollars) Global Reinsurance Global A&H U.S. Specialty Runoff & Other Corporate Eliminations Total Gross written premiums $ 752.1 $ 322.1 $ 32.6 $ 2.6 $ — $ 1,109.4 Net written premiums $ 602.6 $ 255.5 $ 27.7 $ 0.7 $ — $ 886.5 Net earned insurance and reinsurance premiums $ 456.2 $ 214.9 $ 10.8 $ 0.7 $ — $ 682.6 Loss and allocated LAE (1) (296.3 ) (135.0 ) (6.5 ) (3.5 ) — (441.3 ) Insurance and reinsurance acquisition expenses (95.6 ) (62.6 ) (2.5 ) (2.5 ) 22.9 (140.3 ) Technical profit (loss) 64.3 17.3 1.8 (5.3 ) 22.9 101.0 Unallocated LAE (2) (8.7 ) (3.5 ) (0.1 ) (0.7 ) (7.6 ) (20.6 ) Other underwriting expenses (43.2 ) (12.0 ) (4.9 ) (3.2 ) (7.5 ) (70.8 ) Underwriting (loss) income 12.4 1.8 (3.2 ) (9.2 ) 7.8 9.6 Service fee revenue (3) — 66.6 — — (24.7 ) 41.9 Managing general underwriter unallocated LAE — (9.4 ) — — 9.4 — Managing general underwriter other underwriting expenses — (7.5 ) — — 7.5 — General and administrative expenses, MGU + Runoff & Other (4) — (31.2 ) — (1.8 ) — (33.0 ) Underwriting (loss) income, including net service fee income 12.4 20.3 (3.2 ) (11.0 ) — 18.5 Net investment income 44.5 Net realized investment gains 24.6 Net unrealized investment (losses) 89.5 Net foreign exchange gains 4.5 Other revenue (5) (6.9 ) General and administrative expenses (6) (19.6 ) Intangible asset amortization expenses (7.9 ) Interest expense on debt (15.6 ) Pre-tax (loss) income $ 131.6 Underwriting Ratios (7) Loss ratio 66.9 % 64.4 % 61.1 % NM NM 67.7 % Acquisition expense ratio 21.0 % 29.1 % 23.1 % NM NM 20.6 % Other underwriting expense ratio 9.5 % 5.6 % 45.4 % NM NM 10.4 % Combined ratio (7) 97.4 % 99.1 % 129.6 % NM NM 98.7 % Goodwill and intangible assets (8) $ — $ 580.2 $ — $ 8.1 $ — $ 588.3 (1) Loss and allocated loss adjustment expenses ("LAE") are part of Loss and loss adjustment expenses on the Consolidated Statements of (Loss) Income (the sum of Loss and allocated LAE and Unallocated LAE is equal to Loss and loss adjustment expenses on the Consolidated Statements of (Loss) Income). (2) Unallocated LAE are part of Loss and loss adjustment expenses on the Consolidated Statements of (Loss) Income (the sum of Loss and allocated LAE and Unallocated LAE is equal to Loss and loss adjustment expenses on the Consolidated Statements of (Loss) Income). (3) Service fee revenue is part of Other revenue on the Consolidated Statements of (Loss) Income (the sum of Service fee revenue and Other revenue is equal to Other revenue on the Consolidated Statements of (Loss) Income). (4) General and administrative expenses, MGU + Runoff & Other is part of General and administrative expenses on the Consolidated Statements of (Loss) Income (the sum of General and administrative expenses, MGU + Runoff & Other and General and administrative expenses is equal to General and administrative expenses on the Consolidated Statements of (Loss) Income). (5) Other revenue is presented net of Service fee revenue and is comprised mainly of a change in contingent consideration (see Note 9 ) and gains (losses) from derivatives (see Note 12 ) (the sum of Service fee revenue and Other revenue is equal to Other revenue on the Consolidated Statements of (Loss) Income). (6) General and administrative expenses are presented net of General and administrative expenses, MGU + Runoff & Other (the sum of General and administrative expenses, MGU + Runoff & Other and General and administrative expenses is equal to General and administrative expenses on the Consolidated Statements of (Loss) Income). (7) Ratios considered not meaningful ("NM") to Runoff & Other and Corporate Eliminations. (8) Sirius Group does not allocate its assets by segment, with the exception of goodwill and intangible assets. |
Summary information regarding net premiums written by client location and underwriting location by reportable segment | The following tables provide summary information regarding net premiums written by client location and underwriting location by reportable segment for the three months ended June 30, 2020 and 2019 : For the three months ended June 30, 2020 (Expressed in millions of U.S. dollars) Global Reinsurance Global A&H U.S. Specialty Runoff & Other Total Total net written premiums by client location: United States $ 106.9 $ 50.7 $ 23.8 $ (0.5 ) $ 180.9 Europe 42.7 5.2 — 0.1 48.0 Canada, the Caribbean, Bermuda and Latin America 18.9 1.3 — — 20.2 Asia and Other 52.0 4.8 — 0.1 56.9 Total net written premiums by client location for the three months ended June 30, 2020 $ 220.5 $ 62.0 $ 23.8 $ (0.3 ) $ 306.0 Total net written premiums by underwriting location: United States $ 83.2 $ 25.4 $ 23.8 $ (0.4 ) $ 132.0 Europe 83.2 36.5 — — 119.7 Canada, the Caribbean, Bermuda and Latin America 36.6 — — — 36.6 Asia and Other 17.5 0.1 — 0.1 17.7 Total net written premiums by underwriting location for the three months ended June 30, 2020 $ 220.5 $ 62.0 $ 23.8 $ (0.3 ) $ 306.0 For the three months ended June 30, 2019 (Expressed in millions of U.S. dollars) Global Reinsurance Global A&H U.S. Specialty Runoff & Other Total Total net written premiums by client location: United States $ 152.7 $ 102.5 $ 14.1 $ 0.2 $ 269.5 Europe 28.5 5.1 — — 33.6 Canada, the Caribbean, Bermuda and Latin America 16.7 2.0 — — 18.7 Asia and Other 68.8 11.0 — 0.1 79.9 Total net written premiums by client location for the three months ended June 30, 2019 $ 266.7 $ 120.6 $ 14.1 $ 0.3 $ 401.7 Total net written premiums by underwriting location: United States $ 104.9 $ 62.1 $ 14.1 $ 0.2 $ 181.3 Europe 102.6 58.4 — — 161.0 Canada, the Caribbean, Bermuda and Latin America 40.7 — — — 40.7 Asia and Other 18.5 0.1 — 0.1 18.7 Total net written premiums by underwriting location for the three months ended June 30, 2019 $ 266.7 $ 120.6 $ 14.1 $ 0.3 $ 401.7 The following tables provide summary information regarding net premiums written by client location and underwriting location by reportable segment for the six months ended June 30, 2020 and 2019 : For the six months ended June 30, 2020 (Expressed in millions of U.S. dollars) Global Reinsurance Global A&H U.S. Specialty Runoff & Other Total Total net written premiums by client location: United States $ 211.2 $ 231.4 $ 39.0 $ 67.6 $ 549.2 Europe 215.5 12.4 — 0.4 228.3 Canada, the Caribbean, Bermuda and Latin America 48.3 7.8 — — 56.1 Asia and Other 90.9 11.1 — 0.3 102.3 Total net written premiums by client location for the six months ended June 30, 2020 $ 565.9 $ 262.7 $ 39.0 $ 68.3 $ 935.9 Total net written premiums by underwriting location: United States $ 155.8 $ 156.6 $ 39.0 $ 67.6 $ 419.0 Europe 291.4 106.0 — 0.4 397.8 Canada, the Caribbean, Bermuda and Latin America 84.7 — — — 84.7 Asia and Other 34.0 0.1 — 0.3 34.4 Total net written premiums by underwriting location for the six months ended June 30, 2020 $ 565.9 $ 262.7 $ 39.0 $ 68.3 $ 935.9 For the six months ended June 30, 2019 (Expressed in millions of U.S. dollars) Global Reinsurance Global A&H U.S. Specialty Runoff & Other Total Total net written premiums by client location: United States $ 269.3 $ 213.6 $ 27.7 $ 0.4 $ 511.0 Europe 178.0 13.1 — 0.1 191.2 Canada, the Caribbean, Bermuda and Latin America 45.7 7.0 — — 52.7 Asia and Other 109.6 21.8 — 0.2 131.6 Total net written premiums by client location for the six months ended June 30, 2019 $ 602.6 $ 255.5 $ 27.7 $ 0.7 $ 886.5 Total net written premiums by underwriting location: United States $ 180.6 $ 133.1 $ 27.7 $ 0.4 $ 341.8 Europe 309.6 122.0 — 0.1 431.7 Canada, the Caribbean, Bermuda and Latin America 76.6 — — — 76.6 Asia and Other 35.8 0.4 — 0.2 36.4 Total net written premiums by underwriting location for the six months ended June 30, 2019 $ 602.6 $ 255.5 $ 27.7 $ 0.7 $ 886.5 |
Reserves for unpaid losses an_2
Reserves for unpaid losses and loss adjustment expenses (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Insurance [Abstract] | |
Summary of the loss and LAE reserve activities | The following table summarizes the loss and LAE reserve activities of Sirius Group for the three and six months ended June 30, 2020 and 2019 : Three months ended June 30, Six months ended June 30, (Millions) 2020 2019 2020 2019 Gross beginning balance $ 2,519.6 $ 1,976.3 $ 2,331.5 $ 2,016.7 Less beginning reinsurance recoverable on unpaid losses (444.2 ) (349.3 ) (410.3 ) (350.2 ) Net loss and LAE reserve balance 2,075.4 1,627.0 1,921.2 1,666.5 Losses and LAE incurred relating to: Current year losses 239.1 214.1 662.0 381.4 Prior years losses 1.2 63.9 5.4 80.5 Total net incurred losses and LAE 240.3 278.0 667.4 461.9 Foreign currency translation adjustment to net loss and LAE reserves 13.2 3.4 (8.6 ) — Accretion of fair value adjustment to net loss and LAE reserves — 0.1 — 0.1 Loss and LAE paid relating to: Current year losses 24.5 120.9 67.6 157.1 Prior years losses 231.5 121.7 439.5 305.5 Total loss and LAE payments 256.0 242.6 507.1 462.6 Net ending balance 2,072.9 1,665.9 2,072.9 1,665.9 Plus ending reinsurance recoverable on unpaid losses 442.2 357.4 442.2 357.4 Gross ending balance $ 2,515.1 $ 2,023.3 $ 2,515.1 $ 2,023.3 |
Allowance for expected credit_2
Allowance for expected credit losses (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Credit Loss [Abstract] | |
Summary of allowance for expected credit losses | As of June 30, 2020 , Sirius Group's allowance for expected credit losses is as follows: (in millions) Gross Assets in Scope Allowance for Expected Credit Losses Premiums receivable & Funds held by ceding companies $ 1,126.4 $ 10.6 Reinsurance recoverable on unpaid and paid loss 548.3 3.9 MGU Trade receivables (1) 22.8 0.4 Total as of June 30, 2020 $ 1,697.5 $ 14.9 (1) Included as part of Other assets on the Consolidated Balance Sheet |
Investment securities (Tables)
Investment securities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of net investment income | Net investment income for the three and six months ended June 30, 2020 and 2019 consisted of the following: For the three months ended June 30, For the six months ended June 30, (Millions) 2020 2019 2020 2019 Fixed maturity investments $ 11.1 $ 13.1 $ 21.4 $ 27.2 Short-term investments 1.3 4.8 4.6 7.9 Equity securities 2.1 7.1 4.7 9.8 Other long-term investments 3.1 3.2 3.3 7.1 Total investment income 17.6 28.2 34.0 52.0 Investment expenses (2.8 ) (3.8 ) (5.7 ) (7.5 ) Net investment income $ 14.8 $ 24.4 $ 28.3 $ 44.5 |
Schedule of net realized and unrealized investment gains (losses) | Net realized and unrealized investment gains (losses) for the three and six months ended June 30, 2020 and 2019 consisted of the following: For the three months ended June 30, For the six months ended June 30, (Millions) 2020 2019 2020 2019 Gross realized gains $ 57.4 $ 26.9 $ 99.4 $ 41.0 Gross realized (losses) (50.3 ) (11.3 ) (72.0 ) (16.4 ) Net realized gains on investments (1)(2) 7.1 15.6 27.4 24.6 Net unrealized gains (losses) on investments (3)(4) 8.7 15.5 (35.1 ) 89.5 Net realized and unrealized gains (losses) on investments $ 15.8 $ 31.1 $ (7.7 ) $ 114.1 (1) Includes $5.4 and $9.7 of realized gains due to foreign currency for the three months ended June 30, 2020 and 2019 , respectively. (2) Includes $16.5 and $20.5 of realized gains due to foreign currency for the six months ended June 30, 2020 and 2019 , respectively. (3) Includes $(65.7) and $(7.2) of unrealized gains (losses) due to foreign currency for the three months ended June 30, 2020 and 2019 , respectively. (4) Includes $(13.1) and $17.8 of unrealized gains (losses) due to foreign currency for the six months ended June 30, 2020 and 2019 , respectively. |
Schedule of net realized investment gains (losses) | Net realized investment gains for the three and six months ended June 30, 2020 and 2019 consisted of the following: For the three months ended June 30, For the six months ended June 30, (Millions) 2020 2019 2020 2019 Fixed maturity investments $ 9.9 $ 8.1 $ 17.7 $ 14.9 Equity securities (6.5 ) (1.2 ) (6.0 ) (1.8 ) Short-term investments 1.0 3.1 3.8 3.2 Derivative instruments 0.2 (0.2 ) 8.5 (0.8 ) Other long-term investments 2.5 5.8 3.4 9.1 Net realized investment gains $ 7.1 $ 15.6 $ 27.4 $ 24.6 |
Schedule of net unrealized investment gains (losses) | Net unrealized investment gains (losses) for the three and six months ended June 30, 2020 and 2019 consisted of the following: For the three months ended June 30, For the six months ended June 30, (Millions) 2020 2019 2020 2019 Fixed maturity investments $ (3.7 ) $ 11.0 $ 3.2 $ 40.7 Equity securities 16.9 13.3 (52.2 ) 38.4 Short-term investments (15.8 ) (0.9 ) (0.1 ) 1.8 Derivative instruments 2.1 (0.1 ) 2.2 (0.7 ) Other long-term investments 9.2 (7.8 ) 11.8 9.3 Net unrealized investment gains (losses) $ 8.7 $ 15.5 $ (35.1 ) $ 89.5 The following table summarizes the amount of total gains (losses) included in earnings attributable to unrealized investment gains (losses) for Level 3 investments for the three and six months ended June 30, 2020 and 2019 : For the three months ended June 30, For the six months ended June 30, (Millions) 2020 2019 2020 2019 Fixed maturity investments $ — $ — $ 0.3 $ — Other long-term investments (4.2 ) — (5.1 ) 8.8 Total unrealized investment (losses) gains – Level 3 investments $ (4.2 ) $ — $ (4.8 ) $ 8.8 |
Schedule of investment securities and other long-term investments | Equity securities at fair value consisted of the following as of June 30, 2020 and December 31, 2019 : (Millions) June 30, 2020 December 31, 2019 Fixed income mutual funds $ 1.7 $ 175.3 Common stocks 161.5 228.1 Other equity securities (1) (13.3 ) 1.8 Total Equity securities $ 149.9 $ 405.2 (1) Sirius Group engaged in short selling of certain equity securities for which settlement was pending as of June 30, 2020. The cost or amortized cost, gross unrealized investment gains (losses), net foreign currency gains (losses), and fair value of Sirius Group's fixed maturity investments as of June 30, 2020 and December 31, 2019 , were as follows: June 30, 2020 (Millions) Cost or amortized cost Gross unrealized gains Gross unrealized (losses) Net foreign currency gains (losses) Fair value Corporate debt securities $ 468.2 $ 9.8 $ (0.8 ) $ 6.5 $ 483.7 Asset-backed securities 737.4 5.2 (18.5 ) (0.9 ) 723.2 Residential mortgage-backed securities 403.6 22.3 (0.8 ) 3.1 428.2 U.S. government and government agency 105.5 1.2 (0.1 ) (2.1 ) 104.5 Commercial mortgage-backed securities 96.2 2.5 (2.3 ) 0.1 96.5 Non-U.S. government and government agency 50.4 0.3 (0.2 ) (0.4 ) 50.1 Preferred stocks 14.8 2.3 (0.3 ) — 16.8 U.S. States, municipalities and political subdivision 1.6 0.1 — — 1.7 Total fixed maturity investments $ 1,877.7 $ 43.7 $ (23.0 ) $ 6.3 $ 1,904.7 December 31, 2019 (Millions) Cost or amortized cost Gross unrealized gains Gross unrealized (losses) Net foreign currency gains (losses) Fair value Corporate debt securities $ 458.6 $ 5.2 $ (1.2 ) $ 11.5 $ 474.1 Asset-backed securities 489.4 1.4 (3.9 ) (0.1 ) 486.8 Residential mortgage-backed securities 426.2 10.5 (1.4 ) 3.6 438.9 U.S. government and government agency 111.5 0.7 (0.4 ) (1.3 ) 110.5 Commercial mortgage-backed securities 88.5 0.9 (0.6 ) 0.2 89.0 Non-U.S. government and government agency 63.7 — (0.7 ) — 63.0 Preferred stocks 17.0 — — — 17.0 U.S. States, municipalities and political subdivision 1.7 — — — 1.7 Total fixed maturity investments $ 1,656.6 $ 18.7 $ (8.2 ) $ 13.9 $ 1,681.0 The cost or amortized cost, gross unrealized investment gains and losses, net foreign currency gains, and fair values of Sirius Group's equity securities and other long-term investments as of June 30, 2020 and December 31, 2019 , were as follows: June 30, 2020 (Millions) Cost or amortized cost Gross unrealized gains Gross unrealized (losses) Net foreign currency gains Fair value Equity securities $ 178.1 $ 40.1 $ (69.1 ) $ 0.8 $ 149.9 Other long-term investments $ 324.7 $ 61.3 $ (28.8 ) $ 10.9 $ 368.1 December 31, 2019 (Millions) Cost or amortized cost Gross unrealized gains Gross unrealized (losses) Net foreign currency gains Fair value Equity securities $ 379.2 $ 55.6 $ (37.3 ) $ 7.7 $ 405.2 Other long-term investments $ 315.4 $ 49.9 $ (29.3 ) $ 10.8 $ 346.8 Other long-term investments at fair value consisted of the following as of June 30, 2020 and December 31, 2019 : (Millions) June 30, 2020 December 31, 2019 Hedge funds and private equity funds $ 289.9 $ 269.0 Limited liability companies and private equity securities 78.2 77.8 Total other long-term investments $ 368.1 $ 346.8 |
Schedule of fixed maturity investment by contractual maturity | The cost or amortized cost and fair value of Sirius Group's fixed maturity investments as of June 30, 2020 and December 31, 2019 are presented below by contractual maturity. Actual maturities could differ from contractual maturities because borrowers may have the right to call or prepay certain obligations with or without call or prepayment penalties. June 30, 2020 December 31, 2019 (Millions) Cost or amortized cost Fair value Cost or amortized cost Fair value Due in one year or less $ 127.3 $ 131.4 $ 85.0 $ 88.4 Due after one year through five years 446.3 456.2 479.1 490.3 Due after five years through ten years 43.9 44.3 46.3 46.0 Due after ten years 8.2 8.1 25.1 24.6 Mortgage-backed and asset-backed securities 1,237.2 1,247.9 1,004.1 1,014.7 Preferred stocks 14.8 16.8 17.0 17.0 Total $ 1,877.7 $ 1,904.7 $ 1,656.6 $ 1,681.0 |
Schedule of ratings and fair value of fixed maturity investments | The following table summarizes the ratings and fair value of fixed maturity investments held in Sirius Group's investment portfolio as of June 30, 2020 and December 31, 2019 : (Millions) June 30, 2020 December 31, 2019 AAA $ 785.6 $ 559.8 AA 716.8 724.3 A 217.4 219.0 BBB 102.5 95.8 Other 82.4 82.1 Total fixed maturity investments (1) $ 1,904.7 $ 1,681.0 (1) Credit ratings are assigned based on the following hierarchy: 1) Standard & Poor's ("S&P") and 2) Moody's Investors Service ("Moody's"). |
Summary of investment securities by investment objective and sector | The following table summarizes investments in hedge funds and private equity interests by investment objective and sector as of June 30, 2020 and December 31, 2019 : June 30, 2020 December 31, 2019 (Millions) Fair value Unfunded commitments Fair value Unfunded commitments Hedge funds: Long/short multi-sector $ 51.0 $ — $ 53.0 $ — Distressed mortgage credit 64.2 — 51.6 — Private credit 21.8 — 21.5 — Other 1.1 — 1.4 — Total hedge funds 138.1 — 127.5 — Private equity funds: Energy infrastructure & services 54.1 32.8 53.6 34.6 Multi-sector 16.2 7.8 8.7 7.8 Healthcare 28.4 6.3 25.9 10.4 Life settlement 22.8 — 23.9 — Manufacturing/Industrial 27.2 — 27.6 3.9 Private equity secondaries 0.6 0.8 0.6 0.8 Other 2.5 1.7 1.2 2.6 Total private equity funds 151.8 49.4 141.5 60.1 Total hedge and private equity funds included in Other long-term investments $ 289.9 $ 49.4 $ 269.0 $ 60.1 |
Schedule of redemption frequency and advance notice period requirements for investments | The following summarizes the June 30, 2020 fair value of hedge funds subject to restrictions on redemption frequency and advance notice period requirements for investments in active hedge funds: Notice Period Redemption Frequency 30-59 days notice 60-89 days notice 90-119 days notice 120+ days notice Total Monthly $ — $ 28.8 $ — $ — $ 28.8 Quarterly 0.6 22.2 64.2 — 87.0 Semi-annual — 0.2 — — 0.2 Annual — — 0.2 21.9 22.1 Total $ 0.6 $ 51.2 $ 64.4 $ 21.9 $ 138.1 |
Schedule of investment securities by lock-up period. | As of June 30, 2020 , investments in private equity funds were subject to lock-up periods as follows: (Millions) 1 - 3 years 3 – 5 years 5 – 10 years Total Private Equity Funds – expected lock up period remaining $ 54.6 $ 1.8 $ 95.4 $ 151.8 |
Fair value measurements (Tables
Fair value measurements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Summary of financial assets and liabilities measured at fair value | The following tables summarize Sirius Group's financial assets and liabilities measured at fair value as of June 30, 2020 and December 31, 2019 by level: June 30, 2020 (Millions) Fair Value Level 1 Inputs Level 2 Inputs Level 3 Inputs Assets measured at fair value Fixed maturity investments: U.S. Government and government agency $ 104.5 $ 103.5 $ 1.0 $ — Corporate debt securities 483.7 — 483.7 — Residential mortgage-backed securities 428.2 — 428.2 — Asset-backed securities 723.2 — 723.2 — Commercial mortgage-backed securities 96.5 — 96.5 — Non-U.S. government and government agency 50.1 28.5 21.6 — Preferred stocks 16.8 — 14.2 2.6 U.S. States, municipalities, and political subdivision 1.7 — 1.7 — Total fixed maturity investments 1,904.7 132.0 1,770.1 2.6 Equity securities: Fixed income mutual funds 1.7 1.7 — — Common stocks 161.5 161.5 — — Other equity securities (1) (13.3 ) (16.3 ) 3.0 — Total equity securities 149.9 146.9 3.0 — Short-term investments (2) 1,048.1 1,000.2 47.9 — Other long-term investments (3) 78.2 — — 78.2 Total investments $ 3,180.9 $ 1,279.1 $ 1,821.0 $ 80.8 Loan participation 27.3 — — 27.3 Derivative instruments 7.0 4.5 — 2.5 Total assets measured at fair value $ 3,215.2 $ 1,283.6 $ 1,821.0 $ 110.6 Liabilities measured at fair value Contingent consideration liabilities $ 22.9 $ — $ — $ 22.9 Derivative instruments 1.4 0.4 — 1.0 Total liabilities measured at fair value $ 24.3 $ 0.4 $ — $ 23.9 (1) Sirius Group engaged in short selling of certain equity securities for which settlement was pending as of June 30, 2020. (2) Balance includes $9.2 classified as held-for-sale as of June 30, 2020. (3) Excludes fair value of $289.9 associated with hedge funds and private equity funds which fair value is measured using NAV practical expedient. December 31, 2019 (Millions) Fair value Level 1 inputs Level 2 inputs Level 3 inputs Assets measured at fair value Fixed maturity investments: U.S. Government and government agency $ 110.5 $ 109.1 $ 1.4 $ — Corporate debt securities 474.1 — 474.1 — Asset-backed securities 486.8 — 486.8 — Residential mortgage-backed securities 438.9 — 438.9 — Commercial mortgage-backed securities 89.0 — 89.0 — Non-U.S. government and government agency 63.0 31.7 31.3 — Preferred stocks 17.0 — — 17.0 U.S. States, municipalities, and political subdivision 1.7 — 1.7 — Total fixed maturity investments 1,681.0 140.8 1,523.2 17.0 Equity securities: Fixed income mutual funds 175.3 175.3 — — Common stocks 228.1 228.1 — — Other equity securities 1.8 — 1.8 — Total equity securities 405.2 403.4 1.8 — Short-term investments 1,085.2 1,073.7 11.5 — Other long-term investments (1) 77.8 — — 77.8 Total investments $ 3,249.2 $ 1,617.9 $ 1,536.5 $ 94.8 Loan participation 20.0 — — 20.0 Derivative instruments 11.4 1.3 — 10.1 Total assets measured at fair value $ 3,280.6 $ 1,619.2 $ 1,536.5 $ 124.9 Liabilities measured at fair value Contingent consideration liabilities $ 28.2 $ — $ — $ 28.2 Derivative instruments 9.5 0.2 — 9.3 Total liabilities measured at fair value $ 37.7 $ 0.2 $ — $ 37.5 (1) Excludes fair value of $269.0 associated with hedge funds and private equity funds which fair value is measured using NAV practical expedient. |
Rollforward of Level 3 fair value measurements | The following tables present changes in Level 3 for financial instruments measured at fair value for the three months ended June 30, 2020 and June 30, 2019 : For the three months ended June 30, 2020 (Millions) Fixed Maturities Other long-term investments (1) Loan Participation Derivative instruments assets & (liabilities) Contingent consideration (liabilities) Balance as of March 31, 2020 $ 2.6 $ 75.9 $ 19.9 $ (8.9 ) $ (28.3 ) Total realized and unrealized gains (losses) — (4.2 ) — (5.7 ) (0.1 ) Foreign currency gains (losses) through Other Comprehensive Income — 1.0 — — — Purchases — 5.5 7.4 — — Sales/Settlements — — — 16.1 5.5 Balance as of June 30, 2020 $ 2.6 $ 78.2 $ 27.3 $ 1.5 $ (22.9 ) (1) Excludes fair value of $289.9 associated with hedge funds and private equity funds which fair value is measured using NAV practical expedient. For the three months ended June 30, 2019 (Millions) Fixed Maturities Other long-term investments (1) Loan Participation Derivative instruments assets & (liabilities) Contingent consideration (liabilities) Balance as of March 31, 2019 $ — $ 88.0 $ — $ (4.8 ) $ (28.8 ) Total realized and unrealized gains (losses) — — — (0.6 ) (2.0 ) Foreign currency gains (losses) through Other Comprehensive Income — — — — — Purchases — — — — — Sales/Settlements — — — 1.8 — Balance as of June 30, 2019 $ — $ 88.0 $ — $ (3.6 ) $ (30.8 ) (1) Excludes fair value of $291.9 associated with hedge funds and private equity funds which fair value is measured using NAV practical expedient. The following tables present changes in Level 3 for financial instruments measured at fair value for the six months ended June 30, 2020 and June 30, 2019 : For the six months ended June 30, 2020 (Millions) Fixed Maturities Other long-term investments (1) Loan Participation Derivative instruments assets & (liabilities) Contingent consideration (liabilities) Balance as of January 1, 2020 $ 17.0 $ 77.8 $ 20.0 $ 0.8 $ (28.2 ) Total realized and unrealized gains (losses) 2.6 (5.1 ) — (19.0 ) (0.2 ) Foreign currency gains (losses) through Other Comprehensive Income — — — — — Purchases — 5.5 7.4 — — Sales/Settlements (17.0 ) — (0.1 ) 19.7 5.5 Balance as of June 30, 2020 $ 2.6 $ 78.2 $ 27.3 $ 1.5 $ (22.9 ) (1) Excludes fair value of $289.9 associated with hedge funds and private equity funds which fair value is measured using NAV practical expedient. For the six months ended June 30, 2019 (Millions) Fixed Maturities Other long-term investments (1) Loan Participation Derivative instruments assets & (liabilities) Contingent consideration (liabilities) Balance as of January 1, 2019 $ 5.4 $ 63.6 $ — $ (0.5 ) $ (28.8 ) Total realized and unrealized gains (losses) — 9.3 — (5.8 ) (2.0 ) Foreign currency gains (losses) through Other Comprehensive Income — (0.7 ) — — — Purchases — 15.8 — — — Sales/Settlements (5.4 ) — — 2.7 — Balance as of June 30, 2019 $ — $ 88.0 $ — $ (3.6 ) $ (30.8 ) (1) Excludes fair value of $291.9 associated with hedge funds and private equity funds which fair value is measured using NAV practical expedient. |
Schedule of significant unobservable inputs used for recurring fair value measurements for Level 3 instruments | The table below presents information about the significant unobservable inputs used for recurring fair value measurements for certain Level 3 instruments as of June 30, 2020 and December 31, 2019 , and includes only those instruments for which information about the inputs is reasonably available to Sirius Group, such as data from independent third-party valuation service providers and from internal valuation models. (Millions, except share prices) June 30, 2020 Description Valuation Technique(s) Fair value Unobservable input Private equity securities (1) Share price of recent transaction $ 32.5 Purchase share price 40.63 Loan participation (1) Purchase price of recent transaction $ 19.9 Comparable yields Range - 4.46% - 7.82% Preferred stock (1) Share price of recent transaction $ 19.9 Purchase price 7.74 Private equity securities (1) Multiple of GAAP book value $ 13.2 Book value multiple Range - 0.73x-0.91x Loan participation (1) Purchase price of recent transaction $ 7.4 Purchase price $ 7.4 Private debt instrument (1) Discounted cash flow $ 6.2 Discount yield Range - 11.87% - 12.32% Private equity securities (1) Purchase price of recent transaction $ 4.7 Purchase price 7.74 Preferred stock (1) Purchase price of recent transaction $ 1.9 Purchase price $ 1.9 Private convertible debt instrument (1) Unit price of recent transaction $ 1.4 Purchase price 7.74 Currency swaps (2) Third party appraisal $ 1.2 Broker quote $ 1.2 Currency forwards (2) Third party appraisal $ 0.7 Broker quote $ 0.7 Preferred stock (1) Purchase price of recent transaction $ 0.7 Purchase price $ 0.7 Equity warrants (2) Option pricing model $ 0.6 Strike price $ 0.2 Private equity securities (1) Purchase price of recent transaction $ 0.3 Purchase price $ 0.3 Weather derivatives (2) Third party appraisal $ (1.0 ) Broker quote $ (1.0 ) Contingent consideration External valuation model $ (22.9 ) Discounted future payments $ (22.9 ) (1) As of June 30, 2020 , each asset type consists of one security. (2) See Note 12 for discussion of derivative instruments. (Millions, except share prices) December 31, 2019 Description Valuation Technique(s) Fair value Unobservable input Private equity securities (1) Share price of recent transaction $ 32.5 Purchase share price $ 40.6 Loan participation (1) Purchase price of recent transaction $ 20.0 Purchase price 20.0 Preferred stock (1) Share price of recent transaction $ 17.5 Purchase price $ 7.74 Private equity securities (1) Multiple of GAAP book value $ 14.2 Book value multiple 0.9 Preferred stock (1) Purchase price of recent transaction $ 12.2 Purchase price $ 12.2 Private debt instrument (1) Purchase price of recent transaction $ 7.2 Purchase price $ 9.0 Weather derivatives (2) Third party appraisal $ 7.0 Broker quote $ 7.0 Private equity securities (1) Purchase price of recent transaction $ 5.1 Purchase price $ 7.74 Preferred stock (1) Purchase price of recent transaction $ 4.8 Purchase price $ 4.80 Currency forwards (2) Third party appraisal $ 2.7 Broker quote $ 2.7 Private equity securities (1) Purchase price of recent transaction $ 1.0 Purchase price $ 10.0 Equity warrants (2) Option pricing model $ 0.4 Strike price $ 0.2 Private equity securities (1) Purchase price of recent transaction $ 0.3 Purchase price $ 0.3 Currency swaps (2) Third party appraisal $ (3.6 ) Broker quote $ (3.6 ) Currency forwards (2) Third party appraisal $ (5.7 ) Broker quote $ (5.7 ) Contingent consideration External valuation model $ (28.2 ) Discounted future payments $ (28.2 ) (1) As of December 31, 2019 , each asset type consists of one security. (2) See Note 12 for discussion of derivative instruments. |
Schedule of financial instruments disclosed, but not carried at fair value | The following table includes financial instruments for which the carrying value differs from the estimated fair values at June 30, 2020 and December 31, 2019 : June 30, 2020 December 31, 2019 (Millions) Fair Value (1) Carrying Value Fair Value (1) Carrying Value Liabilities, Mezzanine equity, and Non-controlling interest: 2017 SEK Subordinated Notes $ 268.7 $ 290.5 $ 294.5 $ 291.2 2016 SIG Senior Notes $ 367.4 $ 394.4 $ 394.5 $ 394.0 Series B preference shares $ 179.5 $ 206.2 $ 186.4 $ 223.0 (1) Fair value estimated by internal pricing and considered a Level 3 measurement. |
Debt and standby letters of c_2
Debt and standby letters of credit facilities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of debt outstanding | Sirius Group's debt outstanding as of June 30, 2020 and December 31, 2019 consisted of the following: (Millions) June 30, 2020 Effective Rate (1) December 31, 2019 Effective Rate (1) 2017 SEK Subordinated Notes, at face value $ 294.2 4.4 % $ 295.0 4.0 % Unamortized issuance costs (3.7 ) (3.8 ) 2017 SEK Subordinated Notes, carrying value 290.5 291.2 2016 SIG Senior Notes, at face value 400.0 4.7 % 400.0 4.7 % Unamortized discount (2.2 ) (2.3 ) Unamortized issuance costs (3.4 ) (3.7 ) 2016 SIG Senior Notes, carrying value 394.4 394.0 Total debt $ 684.9 $ 685.2 (1) Effective rate considers the effect of the debt issuance costs. |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of classification and amount of fair value of derivatives not designated as hedging instruments within consolidated balance sheets | The following tables summarize information on the classification and amount of the fair value of derivatives not designated as hedging instruments within the Company's Consolidated Balance Sheets as at June 30, 2020 and December 31, 2019 : (Millions) June 30, 2020 December 31, 2019 Derivatives not designated as hedging instruments Notional Value Asset derivative at fair value (1) Liability derivative at fair value (2) Notional Value Asset derivative at fair value (1) Liability derivative at fair value (2) Interest rate cap $ 250.0 $ — $ — $ 250.0 $ — $ — Foreign currency swaps $ 40.0 $ 1.2 $ — $ 90.0 $ — $ 3.6 Foreign currency forwards $ 215.2 $ 0.7 $ — $ (30.0 ) $ 2.7 $ 5.7 Weather derivatives $ 54.1 $ — $ 1.0 $ 110.7 $ 7.0 $ — Equity futures contracts $ (2.8 ) $ — $ — $ 34.5 $ — $ — Foreign currency futures contracts $ 21.5 $ — $ — $ — $ — $ — Equity call options $ 49.8 $ 3.2 $ — $ — $ — $ — Equity put options $ (2.4 ) $ — $ 0.4 $ 31.0 $ 1.3 $ 0.2 Foreign currency call options $ 50.6 $ 1.3 $ — $ — $ — $ — Equity warrants $ 0.6 $ 0.6 $ — $ 0.4 $ 0.4 $ — (1) Asset derivatives are classified within Other assets within the Company's Consolidated Balance Sheets at June 30, 2020 and December 31, 2019 . (2) Liability derivatives are classified within Other liabilities within the Company's Consolidated Balance Sheets at June 30, 2020 and December 31, 2019 . |
Schedule of classification and net impact on earnings, recognized in Consolidated Statements of Income relating to derivatives | The following table summarizes information on the classification and net impact on earnings, recognized in the Company's Consolidated Statements of (Loss) Income relating to derivatives during the three and six months ended June 30, 2020 and 2019 : (Millions) For the three months ended June 30, For the six months ended June 30, Derivatives not designated as hedging instruments Classification of gains (losses) recognized in earnings 2020 2019 2020 2019 Interest rate cap Other revenues $ — $ (0.1 ) $ — $ (0.2 ) Foreign currency swaps Net foreign exchange (losses) gains $ (3.4 ) $ 1.6 $ 2.6 $ 2.4 Foreign currency forwards Net foreign exchange (losses) gains $ (1.0 ) $ (3.2 ) $ (0.5 ) $ (3.0 ) Weather derivatives Other revenues $ (1.0 ) $ 0.6 $ (21.4 ) $ (5.5 ) Equity futures contracts Net realized investment gains $ (0.3 ) $ (0.2 ) $ 2.6 $ (0.8 ) Equity futures contracts Net unrealized investment gains (losses) $ 1.5 $ — $ 0.5 $ (0.2 ) Foreign currency futures contracts Net foreign exchange (losses) gains $ (0.7 ) $ — $ (0.7 ) $ — Equity put options Net realized investment gains $ 0.4 $ — $ 5.9 $ — Equity put options Net unrealized investment gains (losses) $ 0.9 $ (0.1 ) $ 1.4 $ (0.5 ) Foreign currency call options Net foreign exchange (losses) gains $ (0.1 ) $ — $ (0.1 ) $ — Equity warrants Net unrealized investment gains (losses) $ (0.3 ) $ 0.4 $ 0.2 $ 0.4 |
Share-based compensation (Table
Share-based compensation (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of unrecognized compensation cost associated with unvested awards and weighted average period over which it is expected to be recognized | The following tables present unrecognized compensation cost associated with unvested awards and weighted average period over which it is expected to be recognized: (Millions) June 30, 2020 PSUs - IPO Incentive Awards PSUs - 2019 Long Term Incentive (LTI) RSUs Stock Options 2018 Long Term Incentive Plan (LTIP) Unrecognized compensation cost related to unvested awards $ 2.1 $ 1.0 $ 8.0 $ 1.6 $ 0.2 Weighted average recognition period (years) 1.5 years 1.5 years 1.5 years 1.7 years 0.5 years |
Summary of outstanding share-settled awards | The following table summarizes outstanding and changes in share-settled awards for the three and six months ended June 30, 2020 : Number of Shares Three months ended June 30, 2020 PSUs - IPO Incentive Awards PSUs - 2019 LTI RSUs Stock Options 2018 Long Term Incentive Plan (LTIP) Unvested, beginning of period 543,196 382,327 1,320,837 1,374,945 856,099 Granted — — — — — Vested — — — — — Forfeited — 4,824 46,085 — 9,942 Unvested, end of period 543,196 377,503 1,274,752 1,374,945 846,157 |
Common shareholder's equity, _2
Common shareholder's equity, mezzanine equity, and non-controlling interests (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Schedule of changes in the company's issued and outstanding common shares | The following table presents changes in the Company's issued and outstanding Common shares for the three and six months ended June 30, 2020 and 2019 , respectively: Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Common shares: Shares issued and outstanding, beginning of period 115,299,341 115,262,303 115,299,341 115,151,251 Issuance of shares to directors and employees — 34,615 — 145,667 Shares issued and outstanding, end of period 115,299,341 115,296,918 115,299,341 115,296,918 |
Schedule of change in non-controlling interest | The following tables show the change in non-controlling interest for the three and six months ended June 30, 2020 and 2019 : (Millions) For the three months ended June 30, 2020 For the three months ended June 30, 2019 Non-controlling interests, beginning of the period $ 2.6 $ 2.2 Net income (loss) attributable to non-controlling interests (0.2 ) 0.8 Other, net 0.1 — Non-controlling interests, end of the period $ 2.5 $ 3.0 (Millions) For the six months ended June 30, 2020 For the six months ended June 30, 2019 Non-controlling interests, beginning of the period $ 2.4 $ 1.7 Net income attributable to non-controlling interests — 1.2 Other, net 0.1 0.1 Non-controlling interests, end of the period $ 2.5 $ 3.0 |
Earnings per share (Tables)
Earnings per share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of computation of basic and diluted earnings per common share | The following table sets forth the computation of basic and diluted earnings per common share for the three and six months ended June 30, 2020 and 2019 : For the three months ended June 30, For the six months ended June 30, (Millions, except share and per share information) 2020 2019 2020 2019 Basic earnings per share Numerator: Net income $ (7.2 ) $ 8.2 $ (128.5 ) $ 112.3 Less: Income attributable to non-controlling interests 0.2 (0.8 ) — (1.2 ) Less: Change in carrying value of Series B preference shares (6.6 ) (0.8 ) 16.8 (9.2 ) Net income available for dividends out of undistributed earnings $ (13.6 ) $ 6.6 $ (111.7 ) $ 101.9 Less: Earnings attributable to Series B preference shares — (0.6 ) — (9.5 ) Net income available to Sirius Group common shareholders $ (13.6 ) $ 6.0 $ (111.7 ) $ 92.4 Denominator: Weighted average shares outstanding for basic earnings per share 115,278,176 115,243,685 115,269,720 115,212,772 Basic earnings per share $ (0.12 ) $ 0.05 $ (0.97 ) $ 0.80 Diluted earnings per share Numerator: Net income available to Sirius Group common shareholders $ (13.6 ) $ 6.0 $ (111.7 ) $ 92.4 Add: Change in carrying value of Series B preference shares — — (16.8 ) 9.2 Net income available to Sirius Group common shareholders on a diluted basis $ (13.6 ) $ 6.0 $ (128.5 ) $ 101.6 Denominator: Weighted average shares outstanding for basic earnings per share 115,278,176 115,243,685 115,269,720 115,212,772 Add: Series B preference shares — — 11,901,670 11,901,670 Add: Unvested performance share units and restricted share units — 552,682 — 427,960 Weighted average shares outstanding for diluted earnings per share (1) 115,278,176 115,796,367 127,171,390 127,542,402 Diluted earnings per share $ (0.12 ) $ 0.05 $ (1.01 ) $ 0.80 (1) For the three months ended June 30, 2020 , there were a total of 27,825,191 potentially dilutive securities excluded from the calculation of Diluted earnings per share. For the three months ended June 30, 2019 , there were 30,933,781 potentially dilutive securities excluded from the calculation of Diluted earnings per share. For the six months ended June 30, 2020 , there were a total of 15,923,521 potentially dilutive securities excluded from the calculation of Diluted earnings per share. For the six months ended June 30, 2019 , there were 19,156,833 potentially dilutive securities excluded from the calculation of Diluted earnings per share. |
Investments in unconsolidated_2
Investments in unconsolidated entities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Investments in unconsolidated entities | |
Schedule of components of other long-term investments | The following table presents the components of Other long-term investments as of June 30, 2020 and December 31, 2019 : (Millions) June 30, 2020 December 31, 2019 Equity method eligible unconsolidated entities, at fair value $ 157.5 $ 151.9 Other unconsolidated investments, at fair value (1) 210.6 194.9 Total Other long-term investments (2) $ 368.1 $ 346.8 (1) Includes Other long-term investments that are not equity method eligible. (2) There were no investments accounted for using the equity method as of June 30, 2020 and December 31, 2019 . |
Schedule of investments in equity method eligible unconsolidated entities | The following table presents Sirius Group's investments in equity method eligible unconsolidated entities as of June 30, 2020 and December 31, 2019 : Ownership interest as of Investee June 30, 2020 December 31, 2019 Instrument Held BE Reinsurance Limited 24.9 % 24.9 % Common shares BioVentures Investors (Offshore) IV LP 73.0 % 73.0 % Units Camden Partners Strategic Fund V (Cayman), LP 39.4 % 39.4 % Units Diamond LS I LP 15.6 % 16.0 % Units Gateway Fund LP 22.9 % 15.0 % Units Monarch 12.8 % 12.8 % Units New Energy Capital Infrastructure Credit Fund LP 29.3 % 30.5 % Units New Energy Capital Infrastructure Offshore Credit Fund LP 29.3 % 30.5 % Units Pie Preferred Stock (1) 30.1 % 30.1 % Preferred shares Pie Series B Preferred Stock (1) 22.5 % 22.4 % Preferred shares Quintana Energy Partners 21.8 % 21.8 % Units Tuckerman Capital V LP 48.3 % 48.3 % Units Tuckerman Capital V Co-Investment I LP 48.2 % 48.1 % Units (1) Sirius Group holds investments in several financing instruments of Pie Insurance Holdings, Inc. |
Variable interest entities (Tab
Variable interest entities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of assets and liabilities related to the consolidated VIEs | The following table presents Alstead Re's assets and liabilities, as classified in the Consolidated Balance Sheets as of June 30, 2020 and December 31, 2019 : (Millions) June 30, 2020 December 31, 2019 Assets: Fixed maturity investments $ 3.7 $ 3.9 Short-term investments 0.5 0.5 Cash 1.0 0.1 Total investments 5.2 4.5 Insurance and reinsurance premiums receivable (0.6 ) (0.3 ) Funds held by ceding companies 2.3 3.4 Deferred acquisition costs — 0.3 Other assets — — Total assets $ 6.9 $ 7.9 Liabilities Loss and loss adjustment expense reserves $ 0.4 $ 0.5 Unearned insurance and reinsurance premiums — 0.6 Other liabilities 0.1 0.1 Total liabilities $ 0.5 $ 1.2 |
Schedule of total assets of unconsolidated VIEs | The following table presents total assets of unconsolidated VIEs in which Sirius Group holds a variable interest, as well as the maximum exposure to loss associated with these VIEs: Maximum Exposure to Loss (Millions) Total VIE Assets On-Balance Sheet Off-Balance Sheet Total June 30, 2020 Other long-term investments (1) $ 261.1 $ 107.8 $ 8.3 $ 116.1 Total at June 30, 2020 $ 261.1 $ 107.8 $ 8.3 $ 116.1 December 31, 2019 Other long-term investments (1) $ 257.8 $ 102.6 $ 16.3 $ 118.9 Total at December 31, 2019 $ 257.8 $ 102.6 $ 16.3 $ 118.9 (1) Comprised primarily of hedge funds and private equity funds. |
Commitments and contingencies (
Commitments and contingencies (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of lease balances within the consolidated balance sheets | The following table presents the lease balances within the Consolidated Balance Sheets as of June 30, 2020 and December 31, 2019 : (millions) Balance Sheet Classification June 30, 2020 December 31, 2019 Operating lease right-of-use assets Other assets $28.8 $27.4 Current lease liabilities Other liabilities $9.1 $8.3 Non-current lease liabilities Other liabilities $21.4 $21.0 |
Schedule of weighted average remaining lease term and weighted average discount rate | The following table presents weighted average remaining lease term and weighted average discount rate as of June 30, 2020 : Weighted average lease term (years) as at June 30, 2020 Leased offices 7 years Leased equipment 3 years Weighted average discount rate: Leased offices 3.3 % Leased equipment 3.4 % |
Schedule of future annual minimum rental payments required under non cancellable leases for office space | The following table presents future annual minimum rental payments required under non-cancellable leases and the present value discount to arrive at total lease liability as of June 30, 2020 : (Millions) Future Payments 2020 $ 4.5 2021 9.6 2022 9.4 2023 5.6 2024 2.3 2025 and after 1.1 Total future annual minimum rental payments as of June 30, 2020 32.5 Less: present value discount (2.0 ) Total lease liability as of June 30, 2020 $ 30.5 |
Summary of significant accoun_3
Summary of significant accounting policies - Recent adopted changes in accounting principle and Recent accounting pronouncements (Details) - USD ($) $ in Millions | 6 Months Ended | ||||||
Jun. 30, 2020 | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Summary of significant accounting policies | |||||||
Allowance for credit loss | $ 0.4 | ||||||
Cumulative effect of an accounting change | $ 1,522.2 | $ 1,642.8 | $ 1,787.1 | ||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | ||||||
Accounting Standards Update 2016-13 | |||||||
Summary of significant accounting policies | |||||||
Allowance for credit loss | $ 14.9 | ||||||
Retained earnings | |||||||
Summary of significant accounting policies | |||||||
Cumulative effect of an accounting change | $ 660 | $ 673.7 | 778.5 | $ 918.5 | $ 911.8 | $ 816.6 | |
Cumulative effect, period of adoption | Retained earnings | |||||||
Summary of significant accounting policies | |||||||
Cumulative effect of an accounting change | $ 0 | $ (6.8) | $ 0 | $ 0 |
Significant transactions - Loss
Significant transactions - Loss Portfolio Transfer (Details) - USD ($) $ in Millions | Jul. 07, 2020 | Jan. 23, 2020 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Cash received in loss portfolio transfer agreement | $ 69.7 | |
Cash paid in loss portfolio transfer agreement | $ 0.4 | |
Subsequent event | Empire Insurance Company | Runoff & Other | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Percentage of stock disposed of | 100.00% |
Significant transactions Sign_2
Significant transactions Significant transactions - Assets Classified as Held for SaleRelated to the Empire Transaction (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total assets held for sale | $ 10.5 | $ 0 |
Empire Insurance Company | Held-for-sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Short-term investments, at fair value | 9.3 | 0 |
Cash | 0.2 | 0 |
Accounts receivable on unsettled investment sales | 1 | 0 |
Total assets held for sale | $ 10.5 | $ 0 |
Segment information - Segment r
Segment information - Segment results (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)productsegment | Jun. 30, 2019USD ($) | |
Segment information | ||||
Number of reportable segments | segment | 4 | |||
Gross written premiums | $ 322.6 | $ 487.1 | $ 1,140.2 | $ 1,109.4 |
Net written premiums | 306 | 401.7 | 935.9 | 886.5 |
Net earned insurance and reinsurance premiums | 369.8 | 370.7 | 804.5 | 682.6 |
Loss and allocated LAE | (228) | (266.8) | (642.1) | (441.3) |
Insurance and reinsurance acquisition expenses | (78.1) | (77) | (152.8) | (140.3) |
Technical profit (loss) | 63.7 | 26.9 | 9.6 | 101 |
Unallocated LAE | (12.3) | (11.2) | (25.3) | (20.6) |
Other underwriting expenses | (36.3) | (35.5) | (74.3) | (70.8) |
Underwriting income (loss) | 15.1 | (19.8) | (90) | 9.6 |
Service fee revenue | 11.4 | 16.6 | 36.3 | 41.9 |
General and administrative expenses, MGU plus Runoff & Other | (23.9) | (28.2) | (56) | (52.6) |
Underwriting income (loss), including net service fee income | 14.1 | (19.2) | (81.8) | 18.5 |
Net investment income | 14.8 | 24.4 | 28.3 | 44.5 |
Net realized investment gains | 7.1 | 15.6 | 27.4 | 24.6 |
Net unrealized investment gains | 8.7 | 15.5 | (35.1) | 89.5 |
Net foreign exchange (losses) | (16.1) | (0.6) | 2.4 | 4.5 |
Other revenue | (1.2) | (1.2) | (21.8) | (6.9) |
General and administrative expenses | (11.5) | (12.2) | (27.9) | (19.6) |
Intangible asset amortization expenses | (4) | (4) | (7.9) | (7.9) |
Interest expense on debt | (7.9) | (8) | (15.7) | (15.6) |
Pre-tax income (loss) | $ 4 | $ 10.3 | $ (132.1) | $ 131.6 |
Underwriting Ratios | ||||
Loss ratio | 65.00% | 75.00% | 83.00% | 67.70% |
Acquisition expense ratio | 21.10% | 20.80% | 19.00% | 20.60% |
Other underwriting expense ratio | 9.80% | 9.60% | 9.20% | 10.40% |
Combined ratio | 95.90% | 105.40% | 111.20% | 98.70% |
Goodwill and intangible assets | $ 572.7 | $ 588.3 | $ 572.7 | $ 588.3 |
Managing general underwriters | ||||
Segment information | ||||
General and administrative expenses, MGU plus Runoff & Other | (12.4) | (16) | (28.1) | (33) |
Corporate Eliminations | ||||
Segment information | ||||
Insurance and reinsurance acquisition expenses | 10.2 | 12.6 | 20.6 | 22.9 |
Technical profit (loss) | 10.2 | 12.6 | 20.6 | 22.9 |
Unallocated LAE | (4.7) | (4.2) | (10.1) | (7.6) |
Other underwriting expenses | (4.7) | (4.8) | (9.7) | (7.5) |
Underwriting income (loss) | 0.8 | 3.6 | 0.8 | 7.8 |
Service fee revenue | (11.7) | (13.7) | (22.7) | (24.7) |
Corporate Eliminations | Managing general underwriters | ||||
Segment information | ||||
Unallocated LAE | 6.2 | 5.3 | 12.2 | 9.4 |
Other underwriting expenses | 4.7 | 4.8 | 9.7 | 7.5 |
Global Reinsurance | ||||
Segment information | ||||
Net written premiums | 220.5 | 266.7 | 565.9 | 602.6 |
Global Reinsurance | Reportable segments | ||||
Segment information | ||||
Gross written premiums | 213.5 | 317.1 | 678.8 | 752.1 |
Net written premiums | 220.5 | 266.7 | 565.9 | 602.6 |
Net earned insurance and reinsurance premiums | 240.9 | 244.9 | 475.9 | 456.2 |
Loss and allocated LAE | (148.5) | (188.5) | (405.7) | (296.3) |
Insurance and reinsurance acquisition expenses | (53.7) | (50) | (104.6) | (95.6) |
Technical profit (loss) | 38.7 | 6.4 | (34.4) | 64.3 |
Unallocated LAE | (5.2) | (4.7) | (10.2) | (8.7) |
Other underwriting expenses | (20.5) | (21.6) | (41.8) | (43.2) |
Underwriting income (loss) | 13 | (19.9) | (86.4) | 12.4 |
Underwriting income (loss), including net service fee income | $ 13 | $ (19.9) | $ (86.4) | $ 12.4 |
Underwriting Ratios | ||||
Loss ratio | 63.80% | 78.90% | 87.40% | 66.90% |
Acquisition expense ratio | 22.30% | 20.40% | 22.00% | 21.00% |
Other underwriting expense ratio | 8.50% | 8.80% | 8.80% | 9.50% |
Combined ratio | 94.60% | 108.10% | 118.20% | 97.40% |
Global A&H | ||||
Segment information | ||||
Net written premiums | $ 62 | $ 120.6 | $ 262.7 | $ 255.5 |
Global A&H | Reportable segments | ||||
Segment information | ||||
Gross written premiums | 83.7 | 152.8 | 345.8 | 322.1 |
Net written premiums | 62 | 120.6 | 262.7 | 255.5 |
Net earned insurance and reinsurance premiums | 113.2 | 118.8 | 231.1 | 214.9 |
Loss and allocated LAE | (69.6) | (71.8) | (149.9) | (135) |
Insurance and reinsurance acquisition expenses | (31.5) | (36) | (62.3) | (62.6) |
Technical profit (loss) | 12.1 | 11 | 18.9 | 17.3 |
Unallocated LAE | (0.6) | (2) | (2.3) | (3.5) |
Other underwriting expenses | (6.7) | (5.9) | (12.3) | (12) |
Underwriting income (loss) | 4.8 | 3.1 | 4.3 | 1.8 |
Service fee revenue | 23.1 | 30.3 | 59 | 66.6 |
Underwriting income (loss), including net service fee income | $ 6 | $ 8.3 | $ 16.2 | $ 20.3 |
Underwriting Ratios | ||||
Loss ratio | 62.00% | 62.10% | 65.90% | 64.40% |
Acquisition expense ratio | 27.80% | 30.30% | 27.00% | 29.10% |
Other underwriting expense ratio | 5.90% | 5.00% | 5.30% | 5.60% |
Combined ratio | 95.70% | 97.40% | 98.20% | 99.10% |
Goodwill and intangible assets | $ 564.6 | $ 580.2 | $ 564.6 | $ 580.2 |
Global A&H | Reportable segments | Managing general underwriters | ||||
Segment information | ||||
Unallocated LAE | (6.2) | (5.3) | (12.2) | (9.4) |
Other underwriting expenses | (4.7) | (4.8) | (9.7) | (7.5) |
General and administrative expenses, MGU plus Runoff & Other | (11) | (15) | $ (25.2) | (31.2) |
U.S. Specialty | ||||
Segment information | ||||
Number of core products | product | 4 | |||
Net written premiums | 23.8 | 14.1 | $ 39 | 27.7 |
U.S. Specialty | Reportable segments | ||||
Segment information | ||||
Gross written premiums | 25.5 | 16 | 46.3 | 32.6 |
Net written premiums | 23.8 | 14.1 | 39 | 27.7 |
Net earned insurance and reinsurance premiums | 15.2 | 6.7 | 28 | 10.8 |
Loss and allocated LAE | (10.4) | (4.1) | (18.1) | (6.5) |
Insurance and reinsurance acquisition expenses | (3.4) | (1.8) | (6.4) | (2.5) |
Technical profit (loss) | 1.4 | 0.8 | 3.5 | 1.8 |
Unallocated LAE | (0.1) | (0.1) | (0.2) | (0.1) |
Other underwriting expenses | (2.9) | (2.1) | (8.1) | (4.9) |
Underwriting income (loss) | (1.6) | (1.4) | (4.8) | (3.2) |
Underwriting income (loss), including net service fee income | $ (1.6) | $ (1.4) | $ (4.8) | $ (3.2) |
Underwriting Ratios | ||||
Loss ratio | 69.10% | 62.70% | 65.40% | 61.10% |
Acquisition expense ratio | 22.40% | 26.90% | 22.90% | 23.10% |
Other underwriting expense ratio | 19.10% | 31.30% | 28.90% | 45.40% |
Combined ratio | 110.60% | 120.90% | 117.20% | 129.60% |
U.S. Specialty | Reportable segments | Minimum | ||||
Segment information | ||||
Pre-agreed domestic and export sales of goods and services coverage period | 60 days | |||
U.S. Specialty | Reportable segments | Maximum | ||||
Segment information | ||||
Pre-agreed domestic and export sales of goods and services coverage period | 120 days | |||
Runoff & Other | ||||
Segment information | ||||
Net written premiums | $ (0.3) | $ 0.3 | $ 68.3 | $ 0.7 |
Runoff & Other | Reportable segments | ||||
Segment information | ||||
Gross written premiums | (0.1) | 1.2 | 69.3 | 2.6 |
Net written premiums | (0.3) | 0.3 | 68.3 | 0.7 |
Net earned insurance and reinsurance premiums | 0.5 | 0.3 | 69.5 | 0.7 |
Loss and allocated LAE | 0.5 | (2.4) | (68.4) | (3.5) |
Insurance and reinsurance acquisition expenses | 0.3 | (1.8) | (0.1) | (2.5) |
Technical profit (loss) | 1.3 | (3.9) | 1 | (5.3) |
Unallocated LAE | (1.7) | (0.2) | (2.5) | (0.7) |
Other underwriting expenses | (1.5) | (1.1) | (2.4) | (3.2) |
Underwriting income (loss) | (1.9) | (5.2) | (3.9) | (9.2) |
Underwriting income (loss), including net service fee income | (3.3) | (6.2) | (6.8) | (11) |
Underwriting Ratios | ||||
Goodwill and intangible assets | 8.1 | 8.1 | 8.1 | 8.1 |
Runoff & Other | Reportable segments | Managing general underwriters | ||||
Segment information | ||||
General and administrative expenses, MGU plus Runoff & Other | $ (1.4) | $ (1) | $ (2.9) | $ (1.8) |
Segment information - Net premi
Segment information - Net premiums written by client location and underwriting location by reportable segment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Net premiums written by client location and underwriting location by reportable segment | ||||
Net written premiums | $ 306 | $ 401.7 | $ 935.9 | $ 886.5 |
Client location: United States | ||||
Net premiums written by client location and underwriting location by reportable segment | ||||
Net written premiums | 180.9 | 269.5 | 549.2 | 511 |
Client location: Europe | ||||
Net premiums written by client location and underwriting location by reportable segment | ||||
Net written premiums | 48 | 33.6 | 228.3 | 191.2 |
Client location: Canada, the Caribbean, Bermuda and Latin America | ||||
Net premiums written by client location and underwriting location by reportable segment | ||||
Net written premiums | 20.2 | 18.7 | 56.1 | 52.7 |
Client location: Asia and Other | ||||
Net premiums written by client location and underwriting location by reportable segment | ||||
Net written premiums | 56.9 | 79.9 | 102.3 | 131.6 |
Underwriting location: United States | ||||
Net premiums written by client location and underwriting location by reportable segment | ||||
Net written premiums | 132 | 181.3 | 419 | 341.8 |
Underwriting location: Europe | ||||
Net premiums written by client location and underwriting location by reportable segment | ||||
Net written premiums | 119.7 | 161 | 397.8 | 431.7 |
Underwriting location: Canada, the Caribbean, Bermuda and Latin America | ||||
Net premiums written by client location and underwriting location by reportable segment | ||||
Net written premiums | 36.6 | 40.7 | 84.7 | 76.6 |
Underwriting location: Asia and Other | ||||
Net premiums written by client location and underwriting location by reportable segment | ||||
Net written premiums | 17.7 | 18.7 | 34.4 | 36.4 |
Global Reinsurance | ||||
Net premiums written by client location and underwriting location by reportable segment | ||||
Net written premiums | 220.5 | 266.7 | 565.9 | 602.6 |
Global Reinsurance | Client location: United States | ||||
Net premiums written by client location and underwriting location by reportable segment | ||||
Net written premiums | 106.9 | 152.7 | 211.2 | 269.3 |
Global Reinsurance | Client location: Europe | ||||
Net premiums written by client location and underwriting location by reportable segment | ||||
Net written premiums | 42.7 | 28.5 | 215.5 | 178 |
Global Reinsurance | Client location: Canada, the Caribbean, Bermuda and Latin America | ||||
Net premiums written by client location and underwriting location by reportable segment | ||||
Net written premiums | 18.9 | 16.7 | 48.3 | 45.7 |
Global Reinsurance | Client location: Asia and Other | ||||
Net premiums written by client location and underwriting location by reportable segment | ||||
Net written premiums | 52 | 68.8 | 90.9 | 109.6 |
Global Reinsurance | Underwriting location: United States | ||||
Net premiums written by client location and underwriting location by reportable segment | ||||
Net written premiums | 83.2 | 104.9 | 155.8 | 180.6 |
Global Reinsurance | Underwriting location: Europe | ||||
Net premiums written by client location and underwriting location by reportable segment | ||||
Net written premiums | 83.2 | 102.6 | 291.4 | 309.6 |
Global Reinsurance | Underwriting location: Canada, the Caribbean, Bermuda and Latin America | ||||
Net premiums written by client location and underwriting location by reportable segment | ||||
Net written premiums | 36.6 | 40.7 | 84.7 | 76.6 |
Global Reinsurance | Underwriting location: Asia and Other | ||||
Net premiums written by client location and underwriting location by reportable segment | ||||
Net written premiums | 17.5 | 18.5 | 34 | 35.8 |
Global A&H | ||||
Net premiums written by client location and underwriting location by reportable segment | ||||
Net written premiums | 62 | 120.6 | 262.7 | 255.5 |
Global A&H | Client location: United States | ||||
Net premiums written by client location and underwriting location by reportable segment | ||||
Net written premiums | 50.7 | 102.5 | 231.4 | 213.6 |
Global A&H | Client location: Europe | ||||
Net premiums written by client location and underwriting location by reportable segment | ||||
Net written premiums | 5.2 | 5.1 | 12.4 | 13.1 |
Global A&H | Client location: Canada, the Caribbean, Bermuda and Latin America | ||||
Net premiums written by client location and underwriting location by reportable segment | ||||
Net written premiums | 1.3 | 2 | 7.8 | 7 |
Global A&H | Client location: Asia and Other | ||||
Net premiums written by client location and underwriting location by reportable segment | ||||
Net written premiums | 4.8 | 11 | 11.1 | 21.8 |
Global A&H | Underwriting location: United States | ||||
Net premiums written by client location and underwriting location by reportable segment | ||||
Net written premiums | 25.4 | 62.1 | 156.6 | 133.1 |
Global A&H | Underwriting location: Europe | ||||
Net premiums written by client location and underwriting location by reportable segment | ||||
Net written premiums | 36.5 | 58.4 | 106 | 122 |
Global A&H | Underwriting location: Canada, the Caribbean, Bermuda and Latin America | ||||
Net premiums written by client location and underwriting location by reportable segment | ||||
Net written premiums | 0 | 0 | 0 | 0 |
Global A&H | Underwriting location: Asia and Other | ||||
Net premiums written by client location and underwriting location by reportable segment | ||||
Net written premiums | 0.1 | 0.1 | 0.1 | 0.4 |
U.S. Specialty | ||||
Net premiums written by client location and underwriting location by reportable segment | ||||
Net written premiums | 23.8 | 14.1 | 39 | 27.7 |
U.S. Specialty | Client location: United States | ||||
Net premiums written by client location and underwriting location by reportable segment | ||||
Net written premiums | 23.8 | 14.1 | 39 | 27.7 |
U.S. Specialty | Client location: Europe | ||||
Net premiums written by client location and underwriting location by reportable segment | ||||
Net written premiums | 0 | 0 | 0 | 0 |
U.S. Specialty | Client location: Canada, the Caribbean, Bermuda and Latin America | ||||
Net premiums written by client location and underwriting location by reportable segment | ||||
Net written premiums | 0 | 0 | 0 | 0 |
U.S. Specialty | Client location: Asia and Other | ||||
Net premiums written by client location and underwriting location by reportable segment | ||||
Net written premiums | 0 | 0 | 0 | 0 |
U.S. Specialty | Underwriting location: United States | ||||
Net premiums written by client location and underwriting location by reportable segment | ||||
Net written premiums | 23.8 | 14.1 | 39 | 27.7 |
U.S. Specialty | Underwriting location: Europe | ||||
Net premiums written by client location and underwriting location by reportable segment | ||||
Net written premiums | 0 | 0 | 0 | 0 |
U.S. Specialty | Underwriting location: Canada, the Caribbean, Bermuda and Latin America | ||||
Net premiums written by client location and underwriting location by reportable segment | ||||
Net written premiums | 0 | 0 | 0 | 0 |
U.S. Specialty | Underwriting location: Asia and Other | ||||
Net premiums written by client location and underwriting location by reportable segment | ||||
Net written premiums | 0 | 0 | 0 | 0 |
Runoff & Other | ||||
Net premiums written by client location and underwriting location by reportable segment | ||||
Net written premiums | (0.3) | 0.3 | 68.3 | 0.7 |
Runoff & Other | Client location: United States | ||||
Net premiums written by client location and underwriting location by reportable segment | ||||
Net written premiums | (0.5) | 0.2 | 67.6 | 0.4 |
Runoff & Other | Client location: Europe | ||||
Net premiums written by client location and underwriting location by reportable segment | ||||
Net written premiums | 0.1 | 0 | 0.4 | 0.1 |
Runoff & Other | Client location: Canada, the Caribbean, Bermuda and Latin America | ||||
Net premiums written by client location and underwriting location by reportable segment | ||||
Net written premiums | 0 | 0 | 0 | 0 |
Runoff & Other | Client location: Asia and Other | ||||
Net premiums written by client location and underwriting location by reportable segment | ||||
Net written premiums | 0.1 | 0.1 | 0.3 | 0.2 |
Runoff & Other | Underwriting location: United States | ||||
Net premiums written by client location and underwriting location by reportable segment | ||||
Net written premiums | (0.4) | 0.2 | 67.6 | 0.4 |
Runoff & Other | Underwriting location: Europe | ||||
Net premiums written by client location and underwriting location by reportable segment | ||||
Net written premiums | 0 | 0 | 0.4 | 0.1 |
Runoff & Other | Underwriting location: Canada, the Caribbean, Bermuda and Latin America | ||||
Net premiums written by client location and underwriting location by reportable segment | ||||
Net written premiums | 0 | 0 | 0 | 0 |
Runoff & Other | Underwriting location: Asia and Other | ||||
Net premiums written by client location and underwriting location by reportable segment | ||||
Net written premiums | $ 0.1 | $ 0.1 | $ 0.3 | $ 0.2 |
Reserves for unpaid losses an_3
Reserves for unpaid losses and loss adjustment expenses (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Summary of the loss and LAE reserve activities | ||||
Gross beginning balance | $ 2,519.6 | $ 1,976.3 | $ 2,331.5 | $ 2,016.7 |
Less beginning reinsurance recoverable on unpaid losses | (444.2) | (349.3) | (410.3) | (350.2) |
Net loss and LAE reserve balance | 2,075.4 | 1,627 | 1,921.2 | 1,666.5 |
Losses and LAE incurred relating to: | ||||
Current year losses | 239.1 | 214.1 | 662 | 381.4 |
Prior years losses | 1.2 | 63.9 | 5.4 | 80.5 |
Total net incurred losses and LAE | 240.3 | 278 | 667.4 | 461.9 |
Foreign currency translation adjustment to net loss and LAE reserves | 13.2 | 3.4 | (8.6) | 0 |
Accretion of fair value adjustment to net loss and LAE reserves | 0 | 0.1 | 0 | 0.1 |
Loss and LAE paid relating to: | ||||
Current year losses | 24.5 | 120.9 | 67.6 | 157.1 |
Prior years losses | 231.5 | 121.7 | 439.5 | 305.5 |
Total loss and LAE payments | 256 | 242.6 | 507.1 | 462.6 |
Net ending balance | 2,072.9 | 1,665.9 | 2,072.9 | 1,665.9 |
Plus ending reinsurance recoverable on unpaid losses | 442.2 | 357.4 | 442.2 | 357.4 |
Gross ending balance | $ 2,515.1 | $ 2,023.3 | $ 2,515.1 | $ 2,023.3 |
Reserves for unpaid losses an_4
Reserves for unpaid losses and loss adjustment expenses - By segment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Reserves for unpaid losses and loss adjustment expenses | ||||
Prior years losses | $ 1.2 | $ 63.9 | $ 5.4 | $ 80.5 |
Natural catastrophes | ||||
Reserves for unpaid losses and loss adjustment expenses | ||||
Prior years losses | 7.6 | 46.4 | 46.4 | |
Global Reinsurance | ||||
Reserves for unpaid losses and loss adjustment expenses | ||||
Prior years losses | 4.5 | 61.6 | 13.6 | 71.8 |
Global A&H | ||||
Reserves for unpaid losses and loss adjustment expenses | ||||
Prior years losses | 3.3 | 7.5 | 4.5 | |
Casualty Reinsurance | ||||
Reserves for unpaid losses and loss adjustment expenses | ||||
Prior years losses | 4.8 | 5.6 | ||
Runoff & Other | ||||
Reserves for unpaid losses and loss adjustment expenses | ||||
Prior years losses | $ 3 | 4.2 | ||
Aviation and Space | ||||
Reserves for unpaid losses and loss adjustment expenses | ||||
Prior years losses | $ 8.8 | |||
Typhoon Jebi | ||||
Reserves for unpaid losses and loss adjustment expenses | ||||
Prior years losses | 7.3 | |||
Hurricane Florence | ||||
Reserves for unpaid losses and loss adjustment expenses | ||||
Prior years losses | 7.2 | |||
Hurricane Irma | ||||
Reserves for unpaid losses and loss adjustment expenses | ||||
Prior years losses | $ 6.3 | |||
Other property | ||||
Reserves for unpaid losses and loss adjustment expenses | ||||
Prior years losses | $ 8.2 |
Third party reinsurance (Detail
Third party reinsurance (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Insurance [Abstract] | ||
Reinsurance recoverable on paid losses | $ 106.1 | $ 73.9 |
Reinsurance recoverable on unpaid losses | $ 442.2 | $ 410.3 |
Allowance for expected credit_3
Allowance for expected credit losses (Details) $ in Millions | Jun. 30, 2020USD ($) |
Ceded Credit Risk [Line Items] | |
Premiums receivable & Funds held by ceding companies | $ 1,126.4 |
Reinsurance recoverable on unpaid and paid loss | 548.3 |
MGU Trade receivables | 22.8 |
Total as of June 30, 2020 | 1,697.5 |
Premiums receivable & Funds held by ceding companies, allowance for credit losses | 10.6 |
Reinsurance recoverable on unpaid and paid loss, allowance for credit losses | 3.9 |
MGU trade receivable, allowance for credit losses | 0.4 |
Total allowance for credit losses | $ 14.9 |
Percent of the total reinsurance recoverables rated by either A.M. Best or S&P | 0.63 |
AM Best, A- Rating | Standard & Poor's, A- Rating | |
Ceded Credit Risk [Line Items] | |
Percent of the total reinsurance recoverables rated by either A.M. Best or S&P | 0.76 |
Investment securities - Net inv
Investment securities - Net investment income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Net Investment Income | ||||
Total investment income | $ 17.6 | $ 28.2 | $ 34 | $ 52 |
Investment expenses | (2.8) | (3.8) | (5.7) | (7.5) |
Net investment income | 14.8 | 24.4 | 28.3 | 44.5 |
Fixed maturity investments | ||||
Net Investment Income | ||||
Total investment income | 11.1 | 13.1 | 21.4 | 27.2 |
Short-term investments | ||||
Net Investment Income | ||||
Total investment income | 1.3 | 4.8 | 4.6 | 7.9 |
Equity securities | ||||
Net Investment Income | ||||
Total investment income | 2.1 | 7.1 | 4.7 | 9.8 |
Other long-term investments | ||||
Net Investment Income | ||||
Total investment income | $ 3.1 | $ 3.2 | $ 3.3 | $ 7.1 |
Investment securities - Net rea
Investment securities - Net realized and unrealized investment gains (losses) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Net realized and unrealized investment gains (losses) | ||||
Gross realized gains | $ 57.4 | $ 26.9 | $ 99.4 | $ 41 |
Gross realized (losses) | (50.3) | (11.3) | (72) | (16.4) |
Net realized gains on investments | 7.1 | 15.6 | 27.4 | 24.6 |
Net unrealized investment gains (losses) | 8.7 | 15.5 | (35.1) | 89.5 |
Net realized and unrealized gains (losses) on investments | 15.8 | 31.1 | (7.7) | 114.1 |
Realized gains due to foreign currency | 5.4 | 9.7 | 16.5 | 20.5 |
Unrealized (losses) gains due to foreign currency | (65.7) | (7.2) | (13.1) | 17.8 |
Total unrealized investment (losses) gains – Level 3 investments | (4.2) | 0 | (4.8) | 8.8 |
Fixed maturity investments | ||||
Net realized and unrealized investment gains (losses) | ||||
Net realized gains on investments | 9.9 | 8.1 | 17.7 | 14.9 |
Net unrealized investment gains (losses) | (3.7) | 11 | 3.2 | 40.7 |
Total unrealized investment (losses) gains – Level 3 investments | 0 | 0 | 0.3 | 0 |
Equity securities | ||||
Net realized and unrealized investment gains (losses) | ||||
Net realized gains on investments | (6.5) | (1.2) | (6) | (1.8) |
Net unrealized investment gains (losses) | 16.9 | 13.3 | (52.2) | 38.4 |
Short-term investments | ||||
Net realized and unrealized investment gains (losses) | ||||
Net realized gains on investments | 1 | 3.1 | 3.8 | 3.2 |
Net unrealized investment gains (losses) | (15.8) | (0.9) | (0.1) | 1.8 |
Derivative instruments | ||||
Net realized and unrealized investment gains (losses) | ||||
Net realized gains on investments | 0.2 | (0.2) | 8.5 | (0.8) |
Net unrealized investment gains (losses) | 2.1 | (0.1) | 2.2 | (0.7) |
Other long-term investments | ||||
Net realized and unrealized investment gains (losses) | ||||
Net realized gains on investments | 2.5 | 5.8 | 3.4 | 9.1 |
Net unrealized investment gains (losses) | 9.2 | (7.8) | 11.8 | 9.3 |
Total unrealized investment (losses) gains – Level 3 investments | $ (4.2) | $ 0 | $ (5.1) | $ 8.8 |
Investment securities - Fixed m
Investment securities - Fixed maturity investments (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Fixed maturity investments | ||
Cost or amortized cost | $ 1,877.7 | $ 1,656.6 |
Gross unrealized gains | 43.7 | 18.7 |
Gross unrealized (losses) | (23) | (8.2) |
Net foreign currency gains (losses) | 6.3 | 13.9 |
Fair value | $ 1,904.7 | 1,681 |
Weighted average duration of fixed income portfolio including short-term investments | 1 year | |
Weighted average duration of fixed income portfolio excluding short-term investments | 1 year 6 months | |
Cost or amortized cost | ||
Due in one year or less | $ 127.3 | 85 |
Due after one year through five years | 446.3 | 479.1 |
Due after five years through ten years | 43.9 | 46.3 |
Due after ten years | 8.2 | 25.1 |
Fair value | ||
Due in one year or less | 131.4 | 88.4 |
Due after one year through five years | 456.2 | 490.3 |
Due after five years through ten years | 44.3 | 46 |
Due after ten years | 8.1 | 24.6 |
Fixed maturity investments | ||
Fixed maturity investments | ||
Fair value | 1,904.7 | 1,681 |
Fixed maturity investments | AAA | ||
Fixed maturity investments | ||
Fair value | 785.6 | 559.8 |
Fixed maturity investments | AA | ||
Fixed maturity investments | ||
Fair value | 716.8 | 724.3 |
Fixed maturity investments | A | ||
Fixed maturity investments | ||
Fair value | 217.4 | 219 |
Fixed maturity investments | BBB | ||
Fixed maturity investments | ||
Fair value | 102.5 | 95.8 |
Fixed maturity investments | Other | ||
Fixed maturity investments | ||
Fair value | 82.4 | 82.1 |
Corporate debt securities | ||
Fixed maturity investments | ||
Cost or amortized cost | 468.2 | 458.6 |
Gross unrealized gains | 9.8 | 5.2 |
Gross unrealized (losses) | (0.8) | (1.2) |
Net foreign currency gains (losses) | 6.5 | 11.5 |
Fair value | 483.7 | 474.1 |
Asset-backed securities | ||
Fixed maturity investments | ||
Cost or amortized cost | 737.4 | 489.4 |
Gross unrealized gains | 5.2 | 1.4 |
Gross unrealized (losses) | (18.5) | (3.9) |
Net foreign currency gains (losses) | (0.9) | (0.1) |
Fair value | 723.2 | 486.8 |
Residential mortgage-backed securities | ||
Fixed maturity investments | ||
Cost or amortized cost | 403.6 | 426.2 |
Gross unrealized gains | 22.3 | 10.5 |
Gross unrealized (losses) | (0.8) | (1.4) |
Net foreign currency gains (losses) | 3.1 | 3.6 |
Fair value | 428.2 | 438.9 |
U.S. Government and government agency | ||
Fixed maturity investments | ||
Cost or amortized cost | 105.5 | 111.5 |
Gross unrealized gains | 1.2 | 0.7 |
Gross unrealized (losses) | (0.1) | (0.4) |
Net foreign currency gains (losses) | (2.1) | (1.3) |
Fair value | 104.5 | 110.5 |
Commercial mortgage-backed securities | ||
Fixed maturity investments | ||
Cost or amortized cost | 96.2 | 88.5 |
Gross unrealized gains | 2.5 | 0.9 |
Gross unrealized (losses) | (2.3) | (0.6) |
Net foreign currency gains (losses) | 0.1 | 0.2 |
Fair value | 96.5 | 89 |
Non-U.S. government and government agency | ||
Fixed maturity investments | ||
Cost or amortized cost | 50.4 | 63.7 |
Gross unrealized gains | 0.3 | 0 |
Gross unrealized (losses) | (0.2) | (0.7) |
Net foreign currency gains (losses) | (0.4) | 0 |
Fair value | 50.1 | 63 |
Preferred stocks | ||
Fixed maturity investments | ||
Cost or amortized cost | 14.8 | 17 |
Gross unrealized gains | 2.3 | 0 |
Gross unrealized (losses) | (0.3) | 0 |
Net foreign currency gains (losses) | 0 | 0 |
Fair value | 16.8 | 17 |
Cost or amortized cost | ||
Cost or amortized cost without single maturity date | 14.8 | 17 |
Fair value | ||
Fair value without single maturity date | 16.8 | 17 |
U.S. States, municipalities and political subdivision | ||
Fixed maturity investments | ||
Cost or amortized cost | 1.6 | 1.7 |
Gross unrealized gains | 0.1 | 0 |
Gross unrealized (losses) | 0 | 0 |
Net foreign currency gains (losses) | 0 | 0 |
Fair value | 1.7 | 1.7 |
Mortgage-backed and asset-backed securities | ||
Cost or amortized cost | ||
Cost or amortized cost without single maturity date | 1,237.2 | 1,004.1 |
Fair value | ||
Fair value without single maturity date | 1,247.9 | 1,014.7 |
Subprime | Fixed maturity investments | ||
Fixed maturity investments | ||
Fair value | 41.2 | 43.3 |
Subprime | Fixed maturity investments | AAA | ||
Fixed maturity investments | ||
Fair value | 21.8 | 21.7 |
Subprime | Fixed maturity investments | AA | ||
Fixed maturity investments | ||
Fair value | 16.1 | 18.4 |
Subprime | Fixed maturity investments | A | ||
Fixed maturity investments | ||
Fair value | 3.2 | 3.1 |
Subprime | Fixed maturity investments | Other | ||
Fixed maturity investments | ||
Fair value | $ 0.1 | $ 0.1 |
Investment securities - Equity
Investment securities - Equity securities and Other long-term investments (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Equity securities | ||
Equity securities and Other long-term investments | ||
Cost or amortized cost | $ 178.1 | $ 379.2 |
Gross unrealized gains | 40.1 | 55.6 |
Gross unrealized (losses) | (69.1) | (37.3) |
Net foreign currency gains | 0.8 | 7.7 |
Fair value | 149.9 | 405.2 |
Other long-term investments | ||
Equity securities and Other long-term investments | ||
Cost or amortized cost | 324.7 | 315.4 |
Gross unrealized gains | 61.3 | 49.9 |
Gross unrealized (losses) | (28.8) | (29.3) |
Net foreign currency gains | 10.9 | 10.8 |
Fair value | 368.1 | 346.8 |
Other long-term investments | Hedge funds and private equity funds | ||
Equity securities and Other long-term investments | ||
Fair value | 289.9 | 269 |
Other long-term investments | Limited liability companies and private equity securities | ||
Equity securities and Other long-term investments | ||
Fair value | 78.2 | 77.8 |
Fixed income mutual funds | ||
Equity securities and Other long-term investments | ||
Fair value | 1.7 | 175.3 |
Common shares | ||
Equity securities and Other long-term investments | ||
Fair value | 161.5 | 228.1 |
Other equity securities | ||
Equity securities and Other long-term investments | ||
Fair value | $ (13.3) | $ 1.8 |
Investment securities - Hedge f
Investment securities - Hedge funds and Private equity funds (Details) - Other long-term investments $ in Millions | 6 Months Ended | |
Jun. 30, 2020USD ($)fund | Dec. 31, 2019USD ($) | |
Equity securities and Other long-term investments | ||
Fair value | $ 368.1 | $ 346.8 |
Long/short multi-sector | ||
Equity securities and Other long-term investments | ||
Fair value | 51 | 53 |
Unfunded commitments | 0 | 0 |
Distressed mortgage credit | ||
Equity securities and Other long-term investments | ||
Fair value | 64.2 | 51.6 |
Unfunded commitments | 0 | 0 |
Private credit | ||
Equity securities and Other long-term investments | ||
Fair value | 21.8 | 21.5 |
Unfunded commitments | 0 | 0 |
Other | ||
Equity securities and Other long-term investments | ||
Fair value | 1.1 | 1.4 |
Unfunded commitments | $ 0 | 0 |
Hedge funds | ||
Equity securities and Other long-term investments | ||
Number of investment funds in which the investments are held | fund | 9 | |
Fair value | $ 138.1 | 127.5 |
Unfunded commitments | 0 | 0 |
Energy infrastructure & services | ||
Equity securities and Other long-term investments | ||
Fair value | 54.1 | 53.6 |
Unfunded commitments | 32.8 | 34.6 |
Multi-sector | ||
Equity securities and Other long-term investments | ||
Fair value | 16.2 | 8.7 |
Unfunded commitments | 7.8 | 7.8 |
Healthcare | ||
Equity securities and Other long-term investments | ||
Fair value | 28.4 | 25.9 |
Unfunded commitments | 6.3 | 10.4 |
Life settlement | ||
Equity securities and Other long-term investments | ||
Fair value | 22.8 | 23.9 |
Unfunded commitments | 0 | 0 |
Manufacturing/Industrial | ||
Equity securities and Other long-term investments | ||
Fair value | 27.2 | 27.6 |
Unfunded commitments | 0 | 3.9 |
Private equity secondaries | ||
Equity securities and Other long-term investments | ||
Fair value | 0.6 | 0.6 |
Unfunded commitments | 0.8 | 0.8 |
Other | ||
Equity securities and Other long-term investments | ||
Fair value | 2.5 | 1.2 |
Unfunded commitments | $ 1.7 | 2.6 |
Private equity funds | ||
Equity securities and Other long-term investments | ||
Number of investment funds in which the investments are held | fund | 33 | |
Fair value | $ 151.8 | 141.5 |
Unfunded commitments | 49.4 | 60.1 |
Hedge funds and private equity funds | ||
Equity securities and Other long-term investments | ||
Fair value | 289.9 | 269 |
Unfunded commitments | $ 49.4 | $ 60.1 |
Investment securities - Hedge_2
Investment securities - Hedge Funds redemption frequency and Private Equity Fund lock-up period (Details) - Other long-term investments - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Equity securities and Other long-term investments | ||
Fair value | $ 368.1 | $ 346.8 |
Hedge funds | ||
Equity securities and Other long-term investments | ||
Fair value | 138.1 | 127.5 |
Hedge funds | Monthly Redemption Frequency | ||
Equity securities and Other long-term investments | ||
Fair value | 28.8 | |
Hedge funds | Quarterly Redemption Frequency | ||
Equity securities and Other long-term investments | ||
Fair value | 87 | |
Hedge funds | Semi-annual Redemption Frequency | ||
Equity securities and Other long-term investments | ||
Fair value | 0.2 | |
Hedge funds | Annual Redemption Frequency | ||
Equity securities and Other long-term investments | ||
Fair value | 22.1 | |
Private equity funds | ||
Equity securities and Other long-term investments | ||
Fair value | 151.8 | $ 141.5 |
Private equity funds | Lock up period of 1 - 3 years | ||
Equity securities and Other long-term investments | ||
Fair value | 54.6 | |
Private equity funds | Lock up period of 3 - 5 years | ||
Equity securities and Other long-term investments | ||
Fair value | 1.8 | |
Private equity funds | Lock up period of 5 - 10 years | ||
Equity securities and Other long-term investments | ||
Fair value | 95.4 | |
30-59 days notice | Hedge funds | ||
Equity securities and Other long-term investments | ||
Fair value | 0.6 | |
30-59 days notice | Hedge funds | Monthly Redemption Frequency | ||
Equity securities and Other long-term investments | ||
Fair value | 0 | |
30-59 days notice | Hedge funds | Quarterly Redemption Frequency | ||
Equity securities and Other long-term investments | ||
Fair value | 0.6 | |
30-59 days notice | Hedge funds | Semi-annual Redemption Frequency | ||
Equity securities and Other long-term investments | ||
Fair value | 0 | |
30-59 days notice | Hedge funds | Annual Redemption Frequency | ||
Equity securities and Other long-term investments | ||
Fair value | 0 | |
60-89 days notice | Hedge funds | ||
Equity securities and Other long-term investments | ||
Fair value | 51.2 | |
60-89 days notice | Hedge funds | Monthly Redemption Frequency | ||
Equity securities and Other long-term investments | ||
Fair value | 28.8 | |
60-89 days notice | Hedge funds | Quarterly Redemption Frequency | ||
Equity securities and Other long-term investments | ||
Fair value | 22.2 | |
60-89 days notice | Hedge funds | Semi-annual Redemption Frequency | ||
Equity securities and Other long-term investments | ||
Fair value | 0.2 | |
60-89 days notice | Hedge funds | Annual Redemption Frequency | ||
Equity securities and Other long-term investments | ||
Fair value | 0 | |
90-119 days notice | Hedge funds | ||
Equity securities and Other long-term investments | ||
Fair value | 64.4 | |
90-119 days notice | Hedge funds | Monthly Redemption Frequency | ||
Equity securities and Other long-term investments | ||
Fair value | 0 | |
90-119 days notice | Hedge funds | Quarterly Redemption Frequency | ||
Equity securities and Other long-term investments | ||
Fair value | 64.2 | |
90-119 days notice | Hedge funds | Semi-annual Redemption Frequency | ||
Equity securities and Other long-term investments | ||
Fair value | 0 | |
90-119 days notice | Hedge funds | Annual Redemption Frequency | ||
Equity securities and Other long-term investments | ||
Fair value | 0.2 | |
120+ days notice | Hedge funds | ||
Equity securities and Other long-term investments | ||
Fair value | 21.9 | |
120+ days notice | Hedge funds | Monthly Redemption Frequency | ||
Equity securities and Other long-term investments | ||
Fair value | 0 | |
120+ days notice | Hedge funds | Quarterly Redemption Frequency | ||
Equity securities and Other long-term investments | ||
Fair value | 0 | |
120+ days notice | Hedge funds | Semi-annual Redemption Frequency | ||
Equity securities and Other long-term investments | ||
Fair value | 0 | |
120+ days notice | Hedge funds | Annual Redemption Frequency | ||
Equity securities and Other long-term investments | ||
Fair value | $ 21.9 |
Investment securities - Investm
Investment securities - Investments held on deposit or as collateral and Unsettled investment purchases and sales (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Marketable securities | ||
Investments held in trusts | $ 1,037.4 | $ 1,309.5 |
Investments held in trusts - fair value | 1,057.2 | 1,315.5 |
Accounts payable | ||
Marketable securities | ||
Unsettled investment purchases | 11.3 | 2.3 |
Accounts receivable | ||
Marketable securities | ||
Unsettled investment sales | 34.4 | 6.7 |
Interest rate cap | Derivatives not designated as hedging instruments | ||
Marketable securities | ||
Collateral balances held | $ 0.2 | $ 0.2 |
Fair value measurements - Fair
Fair value measurements - Fair value measurements by level (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Assets measured at fair value | |||
Fixed maturity investments | $ 1,904.7 | $ 1,681 | |
Equity securities | 149.9 | 405.2 | |
Short-term investments included assets held for sale | 1,048.1 | ||
Short-term investments | 1,038.8 | 1,085.2 | |
Other long-term investments | 78.2 | 77.8 | |
Total investments | 3,180.9 | 3,249.2 | |
Derivative instruments | 7 | 11.4 | |
Total assets measured at fair value | 3,215.2 | 3,280.6 | |
Liabilities measured at fair value | |||
Contingent consideration liabilities | 22.9 | 28.2 | |
Derivative instruments | 1.4 | 9.5 | |
Total liabilities measured at fair value | 24.3 | 37.7 | |
Assets held-for-sale | 9.2 | ||
U.S. Government and government agency | |||
Assets measured at fair value | |||
Fixed maturity investments | 104.5 | 110.5 | |
Corporate debt securities | |||
Assets measured at fair value | |||
Fixed maturity investments | 483.7 | 474.1 | |
Residential mortgage-backed securities | |||
Assets measured at fair value | |||
Fixed maturity investments | 428.2 | 438.9 | |
Asset-backed securities | |||
Assets measured at fair value | |||
Fixed maturity investments | 723.2 | 486.8 | |
Commercial mortgage-backed securities | |||
Assets measured at fair value | |||
Fixed maturity investments | 96.5 | 89 | |
Non-U.S. government and government agency | |||
Assets measured at fair value | |||
Fixed maturity investments | 50.1 | 63 | |
Preferred stocks | |||
Assets measured at fair value | |||
Fixed maturity investments | 16.8 | 17 | |
U.S. States, municipalities, and political subdivision | |||
Assets measured at fair value | |||
Fixed maturity investments | 1.7 | 1.7 | |
Fixed income mutual funds | |||
Assets measured at fair value | |||
Equity securities | 1.7 | 175.3 | |
Common shares | |||
Assets measured at fair value | |||
Equity securities | 161.5 | 228.1 | |
Other equity securities | |||
Assets measured at fair value | |||
Equity securities | 13.3 | 1.8 | |
Hedge funds and private equity funds | |||
Liabilities measured at fair value | |||
Fair value of hedges | 289.9 | 269 | $ 291.9 |
Level 1 Inputs | |||
Assets measured at fair value | |||
Fixed maturity investments | 132 | 140.8 | |
Equity securities | 146.9 | 403.4 | |
Short-term investments included assets held for sale | 1,000.2 | ||
Short-term investments | 1,073.7 | ||
Other long-term investments | 0 | 0 | |
Total investments | 1,279.1 | 1,617.9 | |
Derivative instruments | 4.5 | 1.3 | |
Total assets measured at fair value | 1,283.6 | 1,619.2 | |
Liabilities measured at fair value | |||
Contingent consideration liabilities | 0 | 0 | |
Derivative instruments | 0.4 | 0.2 | |
Total liabilities measured at fair value | 0.4 | 0.2 | |
Level 1 Inputs | U.S. Government and government agency | |||
Assets measured at fair value | |||
Fixed maturity investments | 103.5 | 109.1 | |
Level 1 Inputs | Corporate debt securities | |||
Assets measured at fair value | |||
Fixed maturity investments | 0 | 0 | |
Level 1 Inputs | Residential mortgage-backed securities | |||
Assets measured at fair value | |||
Fixed maturity investments | 0 | 0 | |
Level 1 Inputs | Asset-backed securities | |||
Assets measured at fair value | |||
Fixed maturity investments | 0 | 0 | |
Level 1 Inputs | Commercial mortgage-backed securities | |||
Assets measured at fair value | |||
Fixed maturity investments | 0 | 0 | |
Level 1 Inputs | Non-U.S. government and government agency | |||
Assets measured at fair value | |||
Fixed maturity investments | 28.5 | 31.7 | |
Level 1 Inputs | Preferred stocks | |||
Assets measured at fair value | |||
Fixed maturity investments | 0 | 0 | |
Level 1 Inputs | U.S. States, municipalities, and political subdivision | |||
Assets measured at fair value | |||
Fixed maturity investments | 0 | 0 | |
Level 1 Inputs | Fixed income mutual funds | |||
Assets measured at fair value | |||
Equity securities | 1.7 | 175.3 | |
Level 1 Inputs | Common shares | |||
Assets measured at fair value | |||
Equity securities | 161.5 | 228.1 | |
Level 1 Inputs | Other equity securities | |||
Assets measured at fair value | |||
Equity securities | 16.3 | 0 | |
Level 2 Inputs | |||
Assets measured at fair value | |||
Fixed maturity investments | 1,770.1 | 1,523.2 | |
Equity securities | 3 | 1.8 | |
Short-term investments included assets held for sale | 47.9 | ||
Short-term investments | 11.5 | ||
Other long-term investments | 0 | 0 | |
Total investments | 1,821 | 1,536.5 | |
Derivative instruments | 0 | 0 | |
Total assets measured at fair value | 1,821 | 1,536.5 | |
Liabilities measured at fair value | |||
Contingent consideration liabilities | 0 | 0 | |
Derivative instruments | 0 | 0 | |
Total liabilities measured at fair value | 0 | 0 | |
Level 2 Inputs | U.S. Government and government agency | |||
Assets measured at fair value | |||
Fixed maturity investments | 1 | 1.4 | |
Level 2 Inputs | Corporate debt securities | |||
Assets measured at fair value | |||
Fixed maturity investments | 483.7 | 474.1 | |
Level 2 Inputs | Residential mortgage-backed securities | |||
Assets measured at fair value | |||
Fixed maturity investments | 428.2 | 438.9 | |
Level 2 Inputs | Asset-backed securities | |||
Assets measured at fair value | |||
Fixed maturity investments | 723.2 | 486.8 | |
Level 2 Inputs | Commercial mortgage-backed securities | |||
Assets measured at fair value | |||
Fixed maturity investments | 96.5 | 89 | |
Level 2 Inputs | Non-U.S. government and government agency | |||
Assets measured at fair value | |||
Fixed maturity investments | 21.6 | 31.3 | |
Level 2 Inputs | Preferred stocks | |||
Assets measured at fair value | |||
Fixed maturity investments | 14.2 | 0 | |
Level 2 Inputs | U.S. States, municipalities, and political subdivision | |||
Assets measured at fair value | |||
Fixed maturity investments | 1.7 | 1.7 | |
Level 2 Inputs | Fixed income mutual funds | |||
Assets measured at fair value | |||
Equity securities | 0 | 0 | |
Level 2 Inputs | Common shares | |||
Assets measured at fair value | |||
Equity securities | 0 | 0 | |
Level 2 Inputs | Other equity securities | |||
Assets measured at fair value | |||
Equity securities | (3) | 1.8 | |
Level 3 Inputs | |||
Assets measured at fair value | |||
Fixed maturity investments | 2.6 | 17 | |
Equity securities | 0 | 0 | |
Short-term investments included assets held for sale | 0 | ||
Short-term investments | 0 | ||
Other long-term investments | 78.2 | 77.8 | |
Total investments | 80.8 | 94.8 | |
Derivative instruments | 2.5 | 10.1 | |
Total assets measured at fair value | 110.6 | 124.9 | |
Liabilities measured at fair value | |||
Contingent consideration liabilities | 22.9 | 28.2 | |
Derivative instruments | 1 | 9.3 | |
Total liabilities measured at fair value | 23.9 | 37.5 | |
Level 3 Inputs | U.S. Government and government agency | |||
Assets measured at fair value | |||
Fixed maturity investments | 0 | 0 | |
Level 3 Inputs | Corporate debt securities | |||
Assets measured at fair value | |||
Fixed maturity investments | 0 | 0 | |
Level 3 Inputs | Residential mortgage-backed securities | |||
Assets measured at fair value | |||
Fixed maturity investments | 0 | 0 | |
Level 3 Inputs | Asset-backed securities | |||
Assets measured at fair value | |||
Fixed maturity investments | 0 | 0 | |
Level 3 Inputs | Commercial mortgage-backed securities | |||
Assets measured at fair value | |||
Fixed maturity investments | 0 | 0 | |
Level 3 Inputs | Non-U.S. government and government agency | |||
Assets measured at fair value | |||
Fixed maturity investments | 0 | 0 | |
Level 3 Inputs | Preferred stocks | |||
Assets measured at fair value | |||
Fixed maturity investments | 2.6 | 17 | |
Level 3 Inputs | U.S. States, municipalities, and political subdivision | |||
Assets measured at fair value | |||
Fixed maturity investments | 0 | 0 | |
Level 3 Inputs | Fixed income mutual funds | |||
Assets measured at fair value | |||
Equity securities | 0 | 0 | |
Level 3 Inputs | Common shares | |||
Assets measured at fair value | |||
Equity securities | 0 | 0 | |
Level 3 Inputs | Other equity securities | |||
Assets measured at fair value | |||
Equity securities | 0 | 0 | |
Loan participation | |||
Assets measured at fair value | |||
Loan participation | 27.3 | 20 | |
Loan participation | Level 1 Inputs | |||
Assets measured at fair value | |||
Loan participation | 0 | 0 | |
Loan participation | Level 2 Inputs | |||
Assets measured at fair value | |||
Loan participation | 0 | 0 | |
Loan participation | Level 3 Inputs | |||
Assets measured at fair value | |||
Loan participation | $ 27.3 | $ 20 |
Fair value measurements - Rollf
Fair value measurements - Rollforward of level 3 fair value measurements (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Rollforward of Level 3, Derivative instruments assets & (liabilities) | |||||
Balance at beginning of the period | $ (8.9) | $ (4.8) | $ 0.8 | $ (0.5) | |
Total realized and unrealized gains (losses) | (5.7) | (0.6) | (19) | (5.8) | |
Purchases | 0 | 0 | 0 | 0 | |
Sales/Settlements | 16.1 | 1.8 | 19.7 | 2.7 | |
Balance at end of the period | 1.5 | (3.6) | 1.5 | (3.6) | |
Hedge funds and private equity funds | |||||
Rollforward of Level 3, (liabilities) | |||||
Fair value of hedges | 289.9 | 291.9 | 289.9 | 291.9 | $ 269 |
Fixed maturity investments | |||||
Rollforward of Level 3 Fair Value Measurements | |||||
Balance at beginning of the period | 2.6 | 0 | 17 | 5.4 | |
Total realized and unrealized gains (losses) | 0 | 0 | 2.6 | 0 | |
Purchases | 0 | 0 | 0 | 0 | |
Sales/Settlements | 0 | 0 | (17) | (5.4) | |
Balance at end of the period | 2.6 | 0 | 2.6 | 0 | |
Other long-term investments | |||||
Rollforward of Level 3 Fair Value Measurements | |||||
Balance at beginning of the period | 75.9 | 88 | 77.8 | 63.6 | |
Total realized and unrealized gains (losses) | (4.2) | 0 | (5.1) | 9.3 | |
Purchases | 5.5 | 0 | 5.5 | 15.8 | |
Sales/Settlements | 0 | 0 | 0 | 0 | |
Balance at end of the period | 78.2 | 88 | 78.2 | 88 | |
Loan participation | |||||
Rollforward of Level 3 Fair Value Measurements | |||||
Balance at beginning of the period | 19.9 | 0 | 20 | 0 | |
Total realized and unrealized gains (losses) | 0 | 0 | 0 | 0 | |
Purchases | 7.4 | 0 | 7.4 | 0 | |
Sales/Settlements | 0 | 0 | (0.1) | 0 | |
Balance at end of the period | 27.3 | 0 | 27.3 | 0 | |
Contingent consideration (liabilities) | |||||
Rollforward of Level 3, (liabilities) | |||||
Balance at beginning of the period | (28.3) | (28.8) | (28.2) | (28.8) | |
Total realized and unrealized gains (losses) | (0.1) | (2) | (0.2) | (2) | |
Foreign currency gains (losses) through Other Comprehensive Income | 0 | 0 | 0 | 0 | |
Purchases | 0 | 0 | 0 | 0 | |
Sales/Settlements | 5.5 | 0 | 5.5 | 0 | |
Balance at end of the period | (22.9) | (30.8) | (22.9) | (30.8) | |
Foreign currency gains (losses) through Other Comprehensive Income | |||||
Rollforward of Level 3, Derivative instruments assets & (liabilities) | |||||
Foreign currency gains (losses) through Other Comprehensive Income | 0 | 0 | 0 | 0 | |
Foreign currency gains (losses) through Other Comprehensive Income | Fixed maturity investments | |||||
Rollforward of Level 3 Fair Value Measurements | |||||
Foreign currency gains (losses) through Other Comprehensive Income | 0 | 0 | 0 | 0 | |
Foreign currency gains (losses) through Other Comprehensive Income | Other long-term investments | |||||
Rollforward of Level 3 Fair Value Measurements | |||||
Foreign currency gains (losses) through Other Comprehensive Income | 1 | 0 | 0 | (0.7) | |
Foreign currency gains (losses) through Other Comprehensive Income | Loan participation | |||||
Rollforward of Level 3 Fair Value Measurements | |||||
Foreign currency gains (losses) through Other Comprehensive Income | $ 0 | $ 0 | $ 0 | $ 0 |
Fair value measurements Fair va
Fair value measurements Fair value measurements - Transfers between levels (Details) | 3 Months Ended |
Jun. 30, 2020USD ($) | |
Fair Value Disclosures [Abstract] | |
Transfers between level 3 and level 2 | $ 0 |
Fair value measurements - Signi
Fair value measurements - Significant unobservable inputs (Details) | Jun. 30, 2020USD ($)$ / shares | Dec. 31, 2019USD ($)$ / shares |
Significant Unobservable Inputs | ||
Equity securities | $ 149,900,000 | $ 405,200,000 |
Derivative assets | 7,000,000 | 11,400,000 |
Derivative liabilities | (1,400,000) | (9,500,000) |
Contingent consideration | (22,900,000) | (28,200,000) |
Level 3 Inputs | ||
Significant Unobservable Inputs | ||
Equity securities | 0 | 0 |
Derivative assets | 2,500,000 | 10,100,000 |
Derivative liabilities | (1,000,000) | (9,300,000) |
Contingent consideration | (22,900,000) | (28,200,000) |
Level 3 Inputs | Private debt instrument | ||
Significant Unobservable Inputs | ||
Debt securities, trading | 6,200,000 | |
Level 3 Inputs | Share price of recent transaction | Private equity securities | ||
Significant Unobservable Inputs | ||
Equity securities | 32,500,000 | 32,500,000 |
Level 3 Inputs | Share price of recent transaction | Preferred stock | ||
Significant Unobservable Inputs | ||
Equity securities | $ 19,900,000 | $ 17,500,000 |
Level 3 Inputs | Share price of recent transaction | Purchase share price | Private equity securities | ||
Significant Unobservable Inputs | ||
Equity securities, measurement input (in dollars per share) | $ / shares | 40.63 | 40.6 |
Level 3 Inputs | Share price of recent transaction | Purchase price | Preferred stock | ||
Significant Unobservable Inputs | ||
Equity securities, measurement input (in dollars per share) | $ / shares | 7.74 | 7.74 |
Level 3 Inputs | Purchase price of recent transaction | Loan participation | ||
Significant Unobservable Inputs | ||
Equity securities | $ 19,900,000 | $ 20,000,000 |
Level 3 Inputs | Purchase price of recent transaction | Loan participation | ||
Significant Unobservable Inputs | ||
Equity securities | 7,400,000 | |
Level 3 Inputs | Purchase price of recent transaction | Preferred stock | ||
Significant Unobservable Inputs | ||
Equity securities | 1,900,000 | 12,200,000 |
Level 3 Inputs | Purchase price of recent transaction | Private debt instrument | ||
Significant Unobservable Inputs | ||
Debt securities, trading | 7,200,000 | |
Level 3 Inputs | Purchase price of recent transaction | Private equity securities | ||
Significant Unobservable Inputs | ||
Equity securities | 4,700,000 | 300,000 |
Level 3 Inputs | Purchase price of recent transaction | Private equity funds | ||
Significant Unobservable Inputs | ||
Equity securities | 5,100,000 | |
Level 3 Inputs | Purchase price of recent transaction | Preferred stock | ||
Significant Unobservable Inputs | ||
Equity securities | 700,000 | 4,800,000 |
Level 3 Inputs | Purchase price of recent transaction | Private equity securities | ||
Significant Unobservable Inputs | ||
Equity securities | $ 300,000 | |
Level 3 Inputs | Purchase price of recent transaction | Private equity securities | ||
Significant Unobservable Inputs | ||
Equity securities | $ 1,000,000 | |
Level 3 Inputs | Purchase price of recent transaction | Purchase price | Loan participation | ||
Significant Unobservable Inputs | ||
Equity securities, measurement input (in dollars per share) | $ / shares | 20,000,000 | |
Level 3 Inputs | Purchase price of recent transaction | Purchase price | Loan participation | ||
Significant Unobservable Inputs | ||
Equity securities, measurement input (in dollars per share) | $ / shares | 7,400,000 | |
Level 3 Inputs | Purchase price of recent transaction | Purchase price | Preferred stock | ||
Significant Unobservable Inputs | ||
Equity securities, measurement input, value | $ 1,900,000 | $ 12,200,000 |
Level 3 Inputs | Purchase price of recent transaction | Purchase price | Private debt instrument | ||
Significant Unobservable Inputs | ||
Private debt instrument, measurement input, value | 9,000,000 | |
Level 3 Inputs | Purchase price of recent transaction | Purchase price | Private equity securities | ||
Significant Unobservable Inputs | ||
Equity securities, measurement input (in dollars per share) | $ / shares | 7.74 | |
Equity securities, measurement input, value | $ 300,000 | |
Level 3 Inputs | Purchase price of recent transaction | Purchase price | Private equity funds | ||
Significant Unobservable Inputs | ||
Equity securities, measurement input (in dollars per share) | $ / shares | 7.74 | |
Level 3 Inputs | Purchase price of recent transaction | Purchase price | Preferred stock | ||
Significant Unobservable Inputs | ||
Equity securities, measurement input, value | $ 700,000 | $ 4,800,000 |
Level 3 Inputs | Purchase price of recent transaction | Purchase price | Private equity securities | ||
Significant Unobservable Inputs | ||
Equity securities, measurement input, value | 300,000 | |
Level 3 Inputs | Purchase price of recent transaction | Purchase price | Private equity securities | ||
Significant Unobservable Inputs | ||
Equity securities, measurement input (in dollars per share) | $ / shares | 10 | |
Level 3 Inputs | Multiple of GAAP book value | Private equity securities | ||
Significant Unobservable Inputs | ||
Equity securities | 13,200,000 | $ 14,200,000 |
Level 3 Inputs | Multiple of GAAP book value | Book value multiple | Private equity securities | ||
Significant Unobservable Inputs | ||
Equity securities, measurement input (in dollars per share) | $ / shares | 0.9 | |
Level 3 Inputs | Unit price of recent transaction | Private convertible debt instrument | ||
Significant Unobservable Inputs | ||
Derivative assets | 1,400,000 | |
Level 3 Inputs | Unit price of recent transaction | Purchase price | Private convertible debt instrument | ||
Significant Unobservable Inputs | ||
Derivative assets, measurement input, value | 7.74 | |
Level 3 Inputs | Third party appraisal | Foreign currency swaps | ||
Significant Unobservable Inputs | ||
Equity securities | 1,200,000 | |
Derivative liabilities | $ (3,600,000) | |
Level 3 Inputs | Third party appraisal | Currency forwards | ||
Significant Unobservable Inputs | ||
Derivative assets | 700,000 | 2,700,000 |
Level 3 Inputs | Third party appraisal | Weather derivatives | ||
Significant Unobservable Inputs | ||
Derivative assets | 7,000,000 | |
Derivative liabilities | (1,000,000) | |
Level 3 Inputs | Third party appraisal | Currency forwards | ||
Significant Unobservable Inputs | ||
Derivative liabilities | (5,700,000) | |
Level 3 Inputs | Third party appraisal | Broker quote | Foreign currency swaps | ||
Significant Unobservable Inputs | ||
Equity securities, measurement input, value | 1,200,000 | |
Derivative liabilities, measurement input, value | (3,600,000) | |
Level 3 Inputs | Third party appraisal | Broker quote | Currency forwards | ||
Significant Unobservable Inputs | ||
Derivative assets, measurement input, value | 700,000 | 2,700,000 |
Level 3 Inputs | Third party appraisal | Broker quote | Weather derivatives | ||
Significant Unobservable Inputs | ||
Derivative assets, measurement input, value | 7,000,000 | |
Derivative liabilities, measurement input, value | (1,000,000) | |
Level 3 Inputs | Third party appraisal | Broker quote | Currency forwards | ||
Significant Unobservable Inputs | ||
Derivative liabilities, measurement input, value | (5,700,000) | |
Level 3 Inputs | Option pricing model | Equity warrants | ||
Significant Unobservable Inputs | ||
Equity securities | 600,000 | 400,000 |
Level 3 Inputs | Option pricing model | Strike price | Equity warrants | ||
Significant Unobservable Inputs | ||
Equity securities, measurement input, value | 200,000 | 200,000 |
Level 3 Inputs | External valuation model | Contingent consideration | ||
Significant Unobservable Inputs | ||
Contingent consideration | (22,900,000) | (28,200,000) |
Level 3 Inputs | External valuation model | Discounted future payments | Contingent consideration | ||
Significant Unobservable Inputs | ||
Contingent consideration, measurement input, value | $ (22,900,000) | $ (28,200,000) |
Minimum | Level 3 Inputs | Purchase price of recent transaction | Comparable yields | Loan participation | ||
Significant Unobservable Inputs | ||
Equity securities, measurement input (in dollars per share) | 0.0446 | |
Minimum | Level 3 Inputs | Purchase price of recent transaction | Discount yield | Private debt instrument | ||
Significant Unobservable Inputs | ||
Debt securities, trading, measurement input | 0.1187 | |
Minimum | Level 3 Inputs | Multiple of GAAP book value | Book value multiple | Private equity securities | ||
Significant Unobservable Inputs | ||
Equity securities, measurement input (in dollars per share) | $ / shares | 0.73 | |
Maximum | Level 3 Inputs | Purchase price of recent transaction | Comparable yields | Loan participation | ||
Significant Unobservable Inputs | ||
Equity securities, measurement input (in dollars per share) | 0.0782 | |
Maximum | Level 3 Inputs | Purchase price of recent transaction | Discount yield | Private debt instrument | ||
Significant Unobservable Inputs | ||
Debt securities, trading, measurement input | 0.1232 | |
Maximum | Level 3 Inputs | Multiple of GAAP book value | Book value multiple | Private equity securities | ||
Significant Unobservable Inputs | ||
Equity securities, measurement input (in dollars per share) | $ / shares | 0.91 | |
Median | Level 3 Inputs | Purchase price of recent transaction | Comparable yields | Loan participation | ||
Significant Unobservable Inputs | ||
Equity securities, measurement input (in dollars per share) | 0.0558 | |
Median | Level 3 Inputs | Purchase price of recent transaction | Discount yield | Private debt instrument | ||
Significant Unobservable Inputs | ||
Debt securities, trading, measurement input | 0.1208 | |
Median | Level 3 Inputs | Multiple of GAAP book value | Book value multiple | Private equity securities | ||
Significant Unobservable Inputs | ||
Equity securities, measurement input (in dollars per share) | $ / shares | 0.82 |
Fair value measurements - Finan
Fair value measurements - Financial instruments disclosed, but not carried at fair value (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Financial instruments not carried at fair value | ||
Debt | $ 684.9 | $ 685.2 |
Carrying Value | Series B preference shares | ||
Financial instruments not carried at fair value | ||
Redeemable preference shares | 206.2 | 223 |
2017 SEK Subordinated Notes | ||
Financial instruments not carried at fair value | ||
Debt | 290.5 | 291.2 |
2017 SEK Subordinated Notes | Carrying Value | ||
Financial instruments not carried at fair value | ||
Debt | 290.5 | 291.2 |
2016 SIG Senior Notes | ||
Financial instruments not carried at fair value | ||
Debt | 394.4 | 394 |
2016 SIG Senior Notes | Carrying Value | ||
Financial instruments not carried at fair value | ||
Debt | 394.4 | 394 |
Level 3 Inputs | Fair Value | Series B preference shares | ||
Financial instruments not carried at fair value | ||
Redeemable preference shares | 179.5 | 186.4 |
Level 3 Inputs | 2017 SEK Subordinated Notes | Fair Value | ||
Financial instruments not carried at fair value | ||
Debt | 268.7 | 294.5 |
Level 3 Inputs | 2016 SIG Senior Notes | Fair Value | ||
Financial instruments not carried at fair value | ||
Debt | $ 367.4 | $ 394.5 |
Debt and standby letters of c_3
Debt and standby letters of credit facilities (Details) | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 22, 2017USD ($) | Sep. 22, 2017SEK (kr) | Nov. 01, 2016USD ($) |
Debt and standby letters of credit facilities | |||||
Long-term debt, total | $ 684,900,000 | $ 685,200,000 | |||
2017 SEK Subordinated Notes | |||||
Debt and standby letters of credit facilities | |||||
Debt, at face value | 294,200,000 | 295,000,000 | $ 346,100,000 | kr 2,750,000,000 | |
Unamortized issuance costs | (3,700,000) | (3,800,000) | |||
Long-term debt, total | $ 290,500,000 | $ 291,200,000 | |||
Effective rate | 4.40% | 4.00% | |||
2016 SIG Senior Notes | |||||
Debt and standby letters of credit facilities | |||||
Debt, at face value | $ 400,000,000 | $ 400,000,000 | $ 400,000,000 | ||
Unamortized issuance costs | (3,400,000) | (3,700,000) | |||
Unamortized discount | (2,200,000) | (2,300,000) | |||
Long-term debt, total | $ 394,400,000 | $ 394,000,000 | |||
Effective rate | 4.70% | 4.70% |
Debt and standby letters of c_4
Debt and standby letters of credit facilities - 2017 SEK Subordinated Notes and 2016 SIG Senior Notes (Details) | Sep. 22, 2017USD ($) | Sep. 22, 2017SEK (kr) | Nov. 01, 2016USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Sep. 22, 2017SEK (kr) |
Debt and standby letters of credit facilities | |||||||||
Interest expense on debt | $ 7,900,000 | $ 8,000,000 | $ 15,700,000 | $ 15,600,000 | |||||
2017 SEK Subordinated Notes | |||||||||
Debt and standby letters of credit facilities | |||||||||
Debt notes issued | $ 346,100,000 | 294,200,000 | 294,200,000 | $ 295,000,000 | kr 2,750,000,000 | ||||
Issue price (as a percent) | 100.00% | 100.00% | |||||||
Term of redemption following occurrence of Specified Event (in days) | 90 days | 90 days | |||||||
Debt issuance costs | $ 4,600,000 | ||||||||
Underwriting fees | $ 3,500,000 | kr 27,500,000 | |||||||
Foreign currency exchange (losses) gains on remeasurement of debt | $ (19,800,000) | $ 300,000 | $ 800,000 | $ 11,300,000 | |||||
Effective rate | 4.40% | 4.10% | 4.30% | 3.90% | |||||
Interest expense on debt | $ 3,100,000 | $ 3,200,000 | $ 6,100,000 | $ 6,000,000 | |||||
Effective rate | 4.40% | 4.40% | 4.00% | ||||||
2016 SIG Senior Notes | |||||||||
Debt and standby letters of credit facilities | |||||||||
Debt notes issued | $ 400,000,000 | $ 400,000,000 | $ 400,000,000 | $ 400,000,000 | |||||
Issue price (as a percent) | 99.209% | ||||||||
Debt issuance costs | $ 5,100,000 | ||||||||
Underwriting fees | 3,400,000 | ||||||||
Interest expense on debt | $ 4,800,000 | $ 4,800,000 | $ 9,600,000 | $ 0 | |||||
Net proceeds | $ 392,400,000 | ||||||||
Annual interest rate (as a percent) | 4.60% | ||||||||
Effective rate | 4.70% | 4.70% | 4.70% |
Debt and standby letters of c_5
Debt and standby letters of credit facilities - Standby Letter of Credit Facilities (Details) kr in Billions | Jun. 30, 2020USD ($) | Jun. 30, 2020SEK (kr) | Dec. 31, 2019USD ($) | Dec. 31, 2019SEK (kr) | Nov. 09, 2019USD ($)letter_of_credit |
Standby Letter of Credit Facilities | |||||
Number of standby letter of credit agreements renewed | letter_of_credit | 2 | ||||
Other secured letter of credit and trust arrangement | Sirius america insurance company | |||||
Standby Letter of Credit Facilities | |||||
Secured letter of credit and trust arrangements were collateralized by pledged assets and assets in trust | $ 47,600,000 | $ 57,700,000 | |||
Other secured letter of credit and trust arrangement | Sirius bermuda insurance company ltd. | |||||
Standby Letter of Credit Facilities | |||||
Secured letter of credit and trust arrangements were collateralized by pledged assets and assets in trust | 518,100,000 | 784,000,000 | |||
Sirius International | Nordea bank finland abp | |||||
Standby Letter of Credit Facilities | |||||
Borrowing capacity | $ 90,000,000 | ||||
Sirius International | DNB bank ASA london branch | |||||
Standby Letter of Credit Facilities | |||||
Borrowing capacity | 35,000,000 | ||||
Sirius International | Standby letters of credit | |||||
Standby Letter of Credit Facilities | |||||
Borrowing capacity | 125,000,000 | ||||
Sirius International | Unsecured standby letters of credit | DNB bank ASA london branch | |||||
Standby Letter of Credit Facilities | |||||
Borrowing capacity | $ 25,000,000 | ||||
Sirius International | Other secured letter of credit and trust arrangement | |||||
Standby Letter of Credit Facilities | |||||
Secured letter of credit and trust arrangements were collateralized by pledged assets and assets in trust | $ 369,100,000 | kr 3.5 | $ 363,300,000 | kr 3.4 |
Debt and standby letters of c_6
Debt and standby letters of credit facilities - Revolving Credit Facility (Details) - USD ($) | 1 Months Ended | |
Feb. 28, 2018 | Jun. 30, 2020 | |
Line of Credit Facility [Line Items] | ||
Outstanding amount | $ 0 | |
Revolving credit facility | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, term | 3 years | |
Borrowing capacity | $ 300,000,000 |
Debt and standby letters of c_7
Debt and standby letters of credit facilities - Interest (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Debt Disclosure [Abstract] | ||||
Interest expense on debt | $ 7.9 | $ 8 | $ 15.7 | $ 15.6 |
Total interest paid | $ 12.4 | $ 12.2 | $ 15.2 | $ 14.9 |
Income taxes (Details)
Income taxes (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||||
Income tax expense (benefit) | $ 11,200,000 | $ 2,100,000 | $ (3,600,000) | $ 19,300,000 | |
Pre-tax income (loss) | $ 4,000,000 | $ 10,300,000 | $ (132,100,000) | $ 131,600,000 | |
Effective tax rate (as a percent) | 14.50% | ||||
Tax Cuts and Jobs Act of 2017, BEAT tax rate, 2019-2025 (as a percent) | 10.00% | ||||
Tax Cuts and Jobs Act of 2017, BEAT tax rate, 2026 and thereafter (as a percent) | 12.50% | ||||
Provision for income taxes related to BEAT | $ 0 | $ 0 | |||
Provision for income taxes related to GILTI | $ 0 | $ 0 |
Income taxes - Deferred tax ass
Income taxes - Deferred tax asset, net of valuation allowance and Uncertain tax positions (Details) $ in Millions | Jun. 30, 2020USD ($) |
Income taxes | |
Net deferred tax liability, net of valuation allowance | $ 28.2 |
Other net deferred tax liabilities | 15.9 |
Uncertain tax positions | |
Total reserve for unrecognized tax benefits | 45.9 |
Reversal of reserves for unrecognized tax benefits on permanent differences and interest and penalties | 45.7 |
Reversal of reserves for unrecognized tax benefits on temporary differences | 0.2 |
U.S. subsidiaries | |
Income taxes | |
Net deferred tax assets | 25.9 |
Luxembourg subsidiaries | |
Income taxes | |
Net deferred tax assets | 137.9 |
Sweden subsidiaries | |
Income taxes | |
Net deferred tax assets | 207.9 |
Sweden subsidiaries | Swedish tax authority | |
Uncertain tax positions | |
Reserve attributable to uncertain tax positions | $ 45 |
Derivatives - Interest rate cap
Derivatives - Interest rate cap (Details) - Interest rate cap $ in Millions | 6 Months Ended | |
Jun. 30, 2020USD ($)financial_institution | Dec. 31, 2019USD ($) | |
Derivatives | ||
Number of financial institutions entered into derivative contracts | financial_institution | 2 | |
Derivatives not designated as hedging instruments | ||
Derivatives | ||
Collateral balances held | $ | $ 0.2 | $ 0.2 |
Derivatives - Classification an
Derivatives - Classification and fair value of derivatives in consolidated balance sheets (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Derivatives | ||
Derivative assets | $ 7 | $ 11.4 |
Derivative liabilities | 1.4 | 9.5 |
Interest rate cap | Derivatives not designated as hedging instruments | ||
Derivatives | ||
Notional Value | 250 | 250 |
Interest rate cap | Derivatives not designated as hedging instruments | Other assets | ||
Derivatives | ||
Derivative assets | 0 | 0 |
Interest rate cap | Derivatives not designated as hedging instruments | Other liabilities | ||
Derivatives | ||
Derivative liabilities | 0 | 0 |
Foreign currency swaps | Derivatives not designated as hedging instruments | ||
Derivatives | ||
Notional Value | 40 | 90 |
Foreign currency swaps | Derivatives not designated as hedging instruments | Other assets | ||
Derivatives | ||
Derivative assets | 1.2 | 0 |
Foreign currency swaps | Derivatives not designated as hedging instruments | Other liabilities | ||
Derivatives | ||
Derivative liabilities | 0 | 3.6 |
Foreign currency forwards | Derivatives not designated as hedging instruments | ||
Derivatives | ||
Notional Value | 215.2 | 30 |
Foreign currency forwards | Derivatives not designated as hedging instruments | Other assets | ||
Derivatives | ||
Derivative assets | 0.7 | 2.7 |
Foreign currency forwards | Derivatives not designated as hedging instruments | Other liabilities | ||
Derivatives | ||
Derivative liabilities | 0 | 5.7 |
Weather derivatives | Derivatives not designated as hedging instruments | ||
Derivatives | ||
Notional Value | 54.1 | 110.7 |
Weather derivatives | Derivatives not designated as hedging instruments | Other assets | ||
Derivatives | ||
Derivative assets | 0 | 7 |
Weather derivatives | Derivatives not designated as hedging instruments | Other liabilities | ||
Derivatives | ||
Derivative liabilities | 1 | 0 |
Equity futures contracts | Derivatives not designated as hedging instruments | ||
Derivatives | ||
Notional Value | 2.8 | 34.5 |
Equity futures contracts | Derivatives not designated as hedging instruments | Other assets | ||
Derivatives | ||
Derivative assets | 0 | 0 |
Equity futures contracts | Derivatives not designated as hedging instruments | Other liabilities | ||
Derivatives | ||
Derivative liabilities | 0 | 0 |
Foreign currency futures contracts | Derivatives not designated as hedging instruments | ||
Derivatives | ||
Notional Value | 21.5 | 0 |
Foreign currency futures contracts | Derivatives not designated as hedging instruments | Other assets | ||
Derivatives | ||
Derivative assets | 0 | 0 |
Foreign currency futures contracts | Derivatives not designated as hedging instruments | Other liabilities | ||
Derivatives | ||
Derivative liabilities | 0 | 0 |
Equity call options | Derivatives not designated as hedging instruments | ||
Derivatives | ||
Notional Value | 49.8 | 0 |
Equity call options | Derivatives not designated as hedging instruments | Other assets | ||
Derivatives | ||
Derivative assets | 3.2 | 0 |
Equity call options | Derivatives not designated as hedging instruments | Other liabilities | ||
Derivatives | ||
Derivative liabilities | 0 | 0 |
Equity put options | Derivatives not designated as hedging instruments | ||
Derivatives | ||
Notional Value | 2.4 | 31 |
Equity put options | Derivatives not designated as hedging instruments | Other assets | ||
Derivatives | ||
Derivative assets | 0 | 1.3 |
Equity put options | Derivatives not designated as hedging instruments | Other liabilities | ||
Derivatives | ||
Derivative liabilities | 0.4 | 0.2 |
Foreign currency call options | Derivatives not designated as hedging instruments | ||
Derivatives | ||
Notional Value | 50.6 | 0 |
Foreign currency call options | Derivatives not designated as hedging instruments | Other assets | ||
Derivatives | ||
Derivative assets | 1.3 | 0 |
Foreign currency call options | Derivatives not designated as hedging instruments | Other liabilities | ||
Derivatives | ||
Derivative liabilities | 0 | 0 |
Equity warrants | Derivatives not designated as hedging instruments | ||
Derivatives | ||
Notional Value | 0.6 | 0.4 |
Equity warrants | Derivatives not designated as hedging instruments | Other assets | ||
Derivatives | ||
Derivative assets | 0.6 | 0.4 |
Equity warrants | Derivatives not designated as hedging instruments | Other liabilities | ||
Derivatives | ||
Derivative liabilities | $ 0 | $ 0 |
Derivatives - Classification _2
Derivatives - Classification and fair value of derivatives in consolidated of (loss) income statements (Details) - Derivatives not designated as hedging instruments - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Interest rate cap | Other revenues | ||||
Derivatives | ||||
Gains (losses) recognized in earnings | $ 0 | $ (0.1) | $ 0 | $ (0.2) |
Foreign currency swaps | Net foreign exchange (losses) gains | ||||
Derivatives | ||||
Gains (losses) recognized in earnings | (3.4) | 1.6 | 2.6 | 2.4 |
Foreign currency forwards | Net foreign exchange (losses) gains | ||||
Derivatives | ||||
Gains (losses) recognized in earnings | (1) | (3.2) | (0.5) | (3) |
Weather derivatives | Other revenues | ||||
Derivatives | ||||
Gains (losses) recognized in earnings | (1) | 0.6 | (21.4) | (5.5) |
Equity futures contracts | Net realized investment gains | ||||
Derivatives | ||||
Gains (losses) recognized in earnings | (0.3) | (0.2) | 2.6 | (0.8) |
Equity futures contracts | Net unrealized investment gains (losses) | ||||
Derivatives | ||||
Gains (losses) recognized in earnings | 1.5 | 0 | 0.5 | (0.2) |
Foreign currency futures contracts | Net foreign exchange (losses) gains | ||||
Derivatives | ||||
Gains (losses) recognized in earnings | (0.7) | 0 | (0.7) | 0 |
Equity put options | Net realized investment gains | ||||
Derivatives | ||||
Gains (losses) recognized in earnings | 0.4 | 0 | 5.9 | 0 |
Equity put options | Net unrealized investment gains (losses) | ||||
Derivatives | ||||
Gains (losses) recognized in earnings | 0.9 | (0.1) | 1.4 | (0.5) |
Foreign currency call options | Net foreign exchange (losses) gains | ||||
Derivatives | ||||
Gains (losses) recognized in earnings | (0.1) | 0 | (0.1) | 0 |
Equity warrants | Net unrealized investment gains (losses) | ||||
Derivatives | ||||
Gains (losses) recognized in earnings | $ (0.3) | $ 0.4 | $ 0.2 | $ 0.4 |
Share-based compensation - Narr
Share-based compensation - Narrative (Details) - USD ($) $ in Millions | Mar. 15, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation expense | $ 2.5 | $ 3.4 | $ 3.6 | $ 0 | |
Amount paid to employees for share-based awards | $ 0.3 | 3.3 | $ 0.3 | 3.3 | |
Unrecognized share-based compensation costs | $ 31.8 | $ 31.8 | |||
Awards granted in the period (in shares) | 1,374,944 | ||||
Options granted in the period (in shares) | 0 | 0 | 34,615 | ||
Retention program expense | $ 1.4 | $ 7.7 | |||
Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted average recognition period (years) | 2 years | ||||
Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted average recognition period (years) | 3 years | ||||
Performance share units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Awards granted in the period (in shares) | 401,311 | ||||
Options granted in the period (in shares) | 14,335 | ||||
RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted average recognition period (years) | 1 year 5 months 24 days | ||||
Awards granted in the period (in shares) | 0 | 0 | 1,411,714 | ||
Options granted in the period (in shares) | 46,052 | ||||
Restricted stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Awards granted in the period (in shares) | 34,615 | ||||
Retention awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Awards granted under the retention program | $ 13.8 | ||||
Amount paid for retention awards | $ 6.9 | ||||
Long term incentive plan 2019 | Performance share units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted average recognition period (years) | 1 year 6 months | ||||
Awards granted in the period (in shares) | 0 | 0 | |||
Long term incentive plan 2020 | Performance share units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation expense | $ 1.5 | $ 3.1 | |||
Award vesting period | 3 years |
Share-based compensation - Unre
Share-based compensation - Unrecognized Compensation Cost and Period Of Recognition (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($) | |
RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost related to unvested awards | $ 8 |
Weighted average recognition period (years) | 1 year 5 months 24 days |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost related to unvested awards | $ 1.6 |
Weighted average recognition period (years) | 1 year 8 months 12 days |
IPO incentive awards | Performance share units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost related to unvested awards | $ 2.1 |
Weighted average recognition period (years) | 1 year 6 months |
Long term incentive plan 2019 | Performance share units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost related to unvested awards | $ 1 |
Weighted average recognition period (years) | 1 year 6 months |
2018 Long Term Incentive Plan (LTIP) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost related to unvested awards | $ 0.2 |
Weighted average recognition period (years) | 6 months |
Share-based compensation - Unve
Share-based compensation - Unvested Share-based Awards Activity (Details) - shares | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Granted (in shares) | 1,374,944 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Unvested, beginning of the year (in shares) | 1,374,945 | 1,374,945 | |
Granted (in shares) | 0 | 0 | 34,615 |
Vested (in shares) | 0 | 0 | |
Forfeited (in shares) | 0 | 0 | |
Unvested, end of the year (in shares) | 1,374,945 | 1,374,945 | |
Performance share units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Granted (in shares) | 401,311 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Granted (in shares) | 14,335 | ||
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Unvested, beginning of the year (in shares) | 1,320,837 | 1,353,852 | |
Granted (in shares) | 0 | 0 | 1,411,714 |
Vested (in shares) | 0 | 0 | |
Forfeited (in shares) | 46,085 | 79,100 | |
Unvested, end of the year (in shares) | 1,274,752 | 1,274,752 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Granted (in shares) | 46,052 | ||
IPO incentive awards | Performance share units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Unvested, beginning of the year (in shares) | 543,196 | 555,163 | |
Granted (in shares) | 0 | 0 | |
Vested (in shares) | 0 | 0 | |
Forfeited (in shares) | 0 | 11,967 | |
Unvested, end of the year (in shares) | 543,196 | 543,196 | |
Long term incentive plan 2019 | Performance share units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Unvested, beginning of the year (in shares) | 382,327 | 391,136 | |
Granted (in shares) | 0 | 0 | |
Vested (in shares) | 0 | 0 | |
Forfeited (in shares) | 4,824 | 13,633 | |
Unvested, end of the year (in shares) | 377,503 | 377,503 | |
2018 Long Term Incentive Plan (LTIP) | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Unvested, beginning of the year (in shares) | 856,099 | 870,471 | |
Granted (in shares) | 0 | 0 | |
Vested (in shares) | 0 | 0 | |
Forfeited (in shares) | 9,942 | 24,314 | |
Unvested, end of the year (in shares) | 846,157 | 846,157 |
Common shareholder's equity, _3
Common shareholder's equity, mezzanine equity, and non controlling interests - Common shareholder's equity (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Common shareholder's equity | ||||
Common shares authorized (in shares) | 500,000,000 | 500,000,000 | ||
Common shares par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
Preference shares authorized / designated ( in shares) | 100,000,000 | 100,000,000 | ||
Preference shares par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
Changes in common shareholders' equity | ||||
Shares issued, beginning of period (in shares) | 115,299,341 | 115,262,303 | 115,299,341 | 115,151,251 |
Shares outstanding, beginning of period (in shares) | 115,299,341 | 115,262,303 | 115,299,341 | 115,151,251 |
Issuance of shares to directors and employees (in shares) | 0 | 34,615 | 0 | 145,667 |
Shares issued, end of period (in shares) | 115,299,341 | 115,296,918 | 115,299,341 | 115,296,918 |
Shares outstanding, end of period (in shares) | 115,299,341 | 115,296,918 | 115,299,341 | 115,296,918 |
Common shareholder's equity, _4
Common shareholder's equity, mezzanine equity, and non controlling interests - Mezzanine equity (Details) - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | ||
Jun. 30, 2020 | Dec. 31, 2019 | Nov. 05, 2018 | |
Mezzanine equity | |||
Preference shares authorized / designated ( in shares) | 100,000,000 | ||
Preference shares par value (in dollars per share) | $ 0.01 | ||
Carrying value of preference shares | $ 206.2 | $ 223 | |
Series B preference shares | |||
Mezzanine equity | |||
Preference shares authorized / designated ( in shares) | 15,000,000 | ||
Preference shares par value (in dollars per share) | $ 0.01 | ||
Preferential rights, aggregate gross proceeds from the issuance of senior or pari passu shares | $ 100 | ||
Series B preference shares | Sirius group private placement | Preference share investors | |||
Mezzanine equity | |||
Share subscriptions (in shares) | 11,901,670 |
Common shareholder's equity, _5
Common shareholder's equity, mezzanine equity, and non controlling interests - Non-controlling interests (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Common shareholder's equity, mezzanine equity, and non-controlling interests | ||||
Non-controlling interests | $ 2.5 | $ 3 | $ 2.5 | $ 3 |
Change in non-controlling interest | ||||
Non-controlling interests, beginning of the period | 2.6 | 2.2 | 2.4 | 1.7 |
Net income (loss) attributable to non-controlling interests | (0.2) | 0.8 | 0 | 1.2 |
Other, net | 0.1 | 0 | 0.1 | 0.1 |
Non-controlling interests, end of the period | 2.5 | $ 3 | 2.5 | $ 3 |
Alstead Re | ||||
Common shareholder's equity, mezzanine equity, and non-controlling interests | ||||
Non-controlling interests | 2.3 | 2.3 | ||
Change in non-controlling interest | ||||
Non-controlling interests, beginning of the period | 2.3 | |||
Non-controlling interests, end of the period | $ 2.3 | $ 2.3 |
Earnings per share - Basic and
Earnings per share - Basic and Diluted earnings per share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Numerator: | ||||
Net (loss) income | $ (7.2) | $ 8.2 | $ (128.5) | $ 112.3 |
Less: Income attributable to non-controlling interests | 0.2 | (0.8) | 0 | (1.2) |
Less: Change in carrying value of Series B preference shares | (6.6) | (0.8) | 16.8 | (9.2) |
Net (loss) income attributable to Sirius Group's common shareholders | (13.6) | 6.6 | (111.7) | 101.9 |
Less: Earnings attributable to Series B preference shares | 0 | (0.6) | 0 | (9.5) |
Net income available to Sirius Group common shareholders | (13.6) | 6 | (111.7) | 92.4 |
Add: Change in carrying value of Series B preference shares | 0 | 0 | (16.8) | 9.2 |
Net income available to Sirius Group common shareholders on a diluted basis | $ (13.6) | $ 6 | $ (128.5) | $ 101.6 |
Denominator: | ||||
Weighted average shares outstanding for basic earnings per share (in shares) | 115,278,176 | 115,243,685 | 115,269,720 | 115,212,772 |
Add: Series B preference shares (in shares) | 0 | 0 | 11,901,670 | 11,901,670 |
Add: Unvested performance share units and restricted share units (in shares) | 0 | 552,682 | 0 | 427,960 |
Weighted average shares outstanding for diluted earnings per share (in shares) | 115,278,176 | 115,796,367 | 127,171,390 | 127,542,402 |
Earnings per share | ||||
Basic earnings per share (in dollars per share) | $ (0.12) | $ 0.05 | $ (0.97) | $ 0.80 |
Diluted earnings per share (in dollars per share) | $ (0.12) | $ 0.05 | $ (1.01) | $ 0.80 |
Potentially dilutive securities excluded from the calculation of diluted earnings per share (in shares) | 27,825,191 | 15,923,521 | 30,933,781 | 19,156,833 |
Investments in unconsolidated_3
Investments in unconsolidated entities - Other long-term investments (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Investments in unconsolidated entities | ||
Other long-term investments | $ 368,100,000 | $ 346,800,000 |
Equity method investments | 0 | 0 |
Investments in unconsolidated entities | ||
Investments in unconsolidated entities | ||
Other long-term investments | 368,100,000 | 346,800,000 |
Investments in unconsolidated entities | Equity method eligible investments | ||
Investments in unconsolidated entities | ||
Other long-term investments | 157,500,000 | 151,900,000 |
Investments in unconsolidated entities | Equity method ineligible investments | ||
Investments in unconsolidated entities | ||
Other long-term investments | $ 210,600,000 | $ 194,900,000 |
Investments in unconsolidated_4
Investments in unconsolidated entities - Equity method unconsolidated entities (Details) - Investments in unconsolidated entities - Equity method eligible investments | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
BE Reinsurance Limited | ||
Investments in unconsolidated entities | ||
Ownership interest | 24.90% | 24.90% |
BioVentures Investors (Offshore) IV LP | ||
Investments in unconsolidated entities | ||
Ownership interest | 73.00% | 73.00% |
Camden Partners Strategic Fund V (Cayman), LP | ||
Investments in unconsolidated entities | ||
Ownership interest | 39.40% | 39.40% |
Diamond LS I LP | ||
Investments in unconsolidated entities | ||
Ownership interest | 15.60% | 16.00% |
Gateway Fund LP | ||
Investments in unconsolidated entities | ||
Ownership interest | 22.90% | 15.00% |
Monarch | ||
Investments in unconsolidated entities | ||
Ownership interest | 12.80% | 12.80% |
New Energy Capital Infrastructure Credit Fund LP | ||
Investments in unconsolidated entities | ||
Ownership interest | 29.30% | 30.50% |
New Energy Capital Infrastructure Offshore Credit Fund LP | ||
Investments in unconsolidated entities | ||
Ownership interest | 29.30% | 30.50% |
Pie Preferred Stock | ||
Investments in unconsolidated entities | ||
Ownership interest | 30.10% | 30.10% |
Pie Series B Preferred Stock | ||
Investments in unconsolidated entities | ||
Ownership interest | 22.50% | 22.40% |
Quintana Energy Partners | ||
Investments in unconsolidated entities | ||
Ownership interest | 21.80% | 21.80% |
Tuckerman Capital V LP | ||
Investments in unconsolidated entities | ||
Ownership interest | 48.30% | 48.30% |
Tuckerman Capital V Co-Investment I LP | ||
Investments in unconsolidated entities | ||
Ownership interest | 48.20% | 48.10% |
Variable interest entities (Det
Variable interest entities (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Assets: | ||||||
Fixed maturity investments | $ 1,904.7 | $ 1,681 | ||||
Short-term investments | 1,038.8 | 1,085.2 | ||||
Cash | 186.7 | 136.3 | ||||
Insurance and reinsurance premiums receivable | 871.7 | 730.1 | ||||
Funds held by ceding companies | 254.7 | 293.9 | ||||
Deferred acquisition costs | 159.1 | 148.2 | ||||
Other assets | 153.8 | 161.4 | ||||
Total assets | 6,664 | 6,413.8 | ||||
Liabilities | ||||||
Loss and loss adjustment expense reserves | 2,515.1 | $ 2,519.6 | 2,331.5 | $ 2,023.3 | $ 1,976.3 | $ 2,016.7 |
Unearned insurance and reinsurance premiums | 874.5 | 708 | ||||
Other liabilities | 181.7 | 201.3 | ||||
Total liabilities | 4,935.6 | 4,548 | ||||
VIEs | ||||||
Assets: | ||||||
Fixed maturity investments | 3.7 | 3.9 | ||||
Short-term investments | 0.5 | 0.5 | ||||
Cash | 1 | 0.1 | ||||
Total investments | 5.2 | 4.5 | ||||
Insurance and reinsurance premiums receivable | (0.6) | (0.3) | ||||
Funds held by ceding companies | 2.3 | 3.4 | ||||
Deferred acquisition costs | 0 | 0.3 | ||||
Other assets | 0 | 0 | ||||
Total assets | 6.9 | 7.9 | ||||
Liabilities | ||||||
Loss and loss adjustment expense reserves | 0.4 | 0.5 | ||||
Unearned insurance and reinsurance premiums | 0 | 0.6 | ||||
Other liabilities | 0.1 | 0.1 | ||||
Total liabilities | $ 0.5 | $ 1.2 |
Variable interest entities - Un
Variable interest entities - Unconsolidated VIE (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Variable interest entities | ||
Other long-term investments | $ 368.1 | $ 346.8 |
Total assets | 6,664 | 6,413.8 |
Unconsolidated VIE | ||
Variable interest entities | ||
Other long-term investments | 261.1 | 257.8 |
Total assets | 261.1 | 257.8 |
On-Balance Sheet | ||
Variable interest entities | ||
Other long term investments | 107.8 | 102.6 |
Total assets | 107.8 | 102.6 |
Off-Balance Sheet | ||
Variable interest entities | ||
Other long term investments | 8.3 | 16.3 |
Total assets | 8.3 | 16.3 |
Other long-term investments | ||
Variable interest entities | ||
Other long term investments | 116.1 | 118.9 |
Total assets | $ 116.1 | $ 118.9 |
Transactions with related par_2
Transactions with related parties (Details) - USD ($) | Aug. 10, 2020 | Mar. 27, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 |
Transactions with related parties | |||||||
Gross written premiums | $ 322,600,000 | $ 487,100,000 | $ 1,140,200,000 | $ 1,109,400,000 | |||
Receivables due from affiliates | 31,600,000 | 31,600,000 | $ 16,100,000 | ||||
Payables due to affiliates | 900,000 | 900,000 | $ 900,000 | ||||
Insurance and MGU affiliates, or their subsidiaries | |||||||
Transactions with related parties | |||||||
Gross written premiums | $ 26,800,000 | $ 24,900,000 | $ 68,100,000 | $ 49,000,000 | |||
Expense Reimbursement | Holders of series B preference shares | |||||||
Transactions with related parties | |||||||
Amount of transaction | $ 250,000 | ||||||
Expense Reimbursement Requiring Written Consent | Holders of series B preference shares | |||||||
Transactions with related parties | |||||||
Amount of transaction | 1,000,000 | ||||||
Other Professional Fees Reimbursement | Holders of series B preference shares | |||||||
Transactions with related parties | |||||||
Amount of transaction | $ 500,000 | ||||||
Subsequent event | |||||||
Transactions with related parties | |||||||
Payments for litigation | $ 2,000,000 |
Commitments and contingencies -
Commitments and contingencies - Leases (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Leases | |||||
Operating lease expense | $ 2.9 | $ 3.2 | $ 6 | $ 5.8 | |
Operating lease right-of-use assets | 28.8 | 28.8 | $ 27.4 | ||
Lease liability | $ 30.5 | $ 30.5 | $ 29.3 | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssets | us-gaap:OtherAssets | us-gaap:OtherAssets | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilities | us-gaap:OtherLiabilities | us-gaap:OtherLiabilities | ||
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilities | us-gaap:OtherLiabilities | us-gaap:OtherLiabilities | ||
Leased offices | |||||
Leases | |||||
Weighted average lease term (years) | 7 years | 7 years | |||
Leased equipment | |||||
Leases | |||||
Weighted average lease term (years) | 3 years | 3 years |
Commitments and contingencies_2
Commitments and contingencies - Lease balances (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Commitments and Contingencies Disclosure [Abstract] | ||
Operating lease right-of-use assets | $ 28.8 | $ 27.4 |
Current lease liabilities | 9.1 | 8.3 |
Non-current lease liabilities | $ 21.4 | $ 21 |
Commitments and contingencies_3
Commitments and contingencies - Weighted average remaining lease term and weighted average discount rate (Details) | Jun. 30, 2020 |
Leased offices | |
Property, Plant and Equipment [Line Items] | |
Weighted average lease term (years) | 7 years |
Weighted average discount rate | 3.30% |
Leased equipment | |
Property, Plant and Equipment [Line Items] | |
Weighted average lease term (years) | 3 years |
Weighted average discount rate | 3.40% |
Commitments and contingencies_4
Commitments and contingencies - Future annual minimum rental payments (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Commitments and Contingencies Disclosure [Abstract] | ||
2020 | $ 4.5 | |
2021 | 9.6 | |
2022 | 9.4 | |
2023 | 5.6 | |
2024 | 2.3 | |
2025 and after | 1.1 | |
Total future annual minimum rental payments as at June 30, 2020 | 32.5 | |
Less: present value discount | (2) | |
Lease liability | $ 30.5 | $ 29.3 |
Subsequent Event (Details)
Subsequent Event (Details) | Aug. 06, 2020contingent_value_right$ / sharesshares | Jun. 30, 2020$ / shares |
Subsequent Event [Line Items] | ||
Common shares par value (in dollars per share) | $ 0.01 | |
Merger Agreement | Subsequent event | ||
Subsequent Event [Line Items] | ||
Right to receive in cash (in dollars per share) | $ 9.50 | |
TPRE Shares | Subsequent event | ||
Subsequent Event [Line Items] | ||
Right to receive in cash (in dollars per share) | $ 0.905 | |
Warrants issued (in shares) | shares | 0.190 | |
Value of warrants (in dollars per share) | $ 0.905 | |
TPRE Shares | Merger Agreement | Subsequent event | ||
Subsequent Event [Line Items] | ||
Common shares par value (in dollars per share) | $ 0.10 | |
Right to receive common stock (in shares) | shares | 0.743 | |
Number of CVRs | contingent_value_right | 1 | |
Right to receive cash and equity (in dollars per share) | $ 13.73 |