Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 09, 2020 | Jun. 30, 2019 | |
Cover [Abstract] | |||
Amendment Flag | false | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | ALLEGHANY CORP /DE | ||
Entity Central Index Key | 0000775368 | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 14,350,883 | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Title of 12(b) Security | Common Stock, $1.00 par value | ||
Security Exchange Name | NYSE | ||
Trading Symbol | Y | ||
Entity File Number | 1-9371 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 51-0283071 | ||
Entity Address, Address Line One | 1411 Broadway, 34th Floor | ||
Entity Address, City or Town | New York | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 10018 | ||
City Area Code | 212 | ||
Local Phone Number | 752-1356 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Public Float | $ 9,902,910,301 | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | Yes | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the registrant’s definitive proxy statement relating to the Annual Meeting of Stockholders of Alleghany Corporation to be held on April 24, 2020 to be filed with the Securities and Exchange Commission pursuant to Regulation 14A are incorporated by reference into Part III of this Annual Report on Form 10-K. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | ||
Investments: | ||||
Equity securities | $ 2,505,496 | $ 3,572,790 | ||
Debt securities | 14,211,745 | 11,823,968 | ||
Short-term investments | 914,776 | 893,776 | ||
Marketable Securities, Total | 17,632,017 | 16,290,534 | ||
Commercial mortgage loans | 686,206 | 676,532 | ||
Other invested assets | 573,605 | 555,972 | ||
Total investments | 18,891,828 | 17,523,038 | ||
Cash | 1,179,098 | 1,038,763 | ||
Accrued investment income | 96,516 | 91,913 | ||
Premium balances receivable | 948,010 | 842,642 | ||
Reinsurance recoverables | 1,681,962 | 1,921,278 | ||
Ceded unearned premiums | 248,153 | 221,232 | ||
Deferred acquisition costs | 522,577 | 464,546 | ||
Property and equipment at cost, net of accumulated depreciation and amortization | 205,397 | 195,243 | ||
Goodwill | [1] | 523,021 | 455,142 | |
Intangible assets, net of amortization | [1] | 685,953 | 553,136 | |
Current taxes receivable | 4,081 | 116,637 | ||
Net deferred tax assets | 5,860 | 164,890 | ||
Funds held under reinsurance agreements | 755,515 | 744,057 | ||
Other assets | 1,183,633 | 1,012,379 | ||
Total assets | 26,931,604 | 25,344,896 | ||
Liabilities, Redeemable Noncontrolling Interests and Stockholders’ Equity | ||||
Loss and loss adjustment expenses | 11,928,359 | [2] | 12,250,294 | |
Unearned premiums | 2,566,170 | 2,267,078 | ||
Senior Notes and other debt | 1,751,113 | 1,669,039 | ||
Reinsurance payable | 188,399 | 168,667 | ||
Other liabilities | 1,516,076 | 1,127,346 | ||
Total liabilities | 17,950,117 | 17,482,424 | ||
Redeemable noncontrolling interests | 204,753 | 169,762 | ||
Common stock | 17,460 | 17,460 | ||
Contributed capital | 3,608,638 | 3,612,830 | ||
Accumulated other comprehensive income (loss) | 171,350 | (202,003) | ||
Treasury stock | (1,455,877) | (1,312,939) | ||
Retained earnings | 6,435,163 | 5,577,362 | ||
Total stockholders’ equity attributable to Alleghany stockholders | 8,776,734 | 7,692,710 | ||
Total liabilities, redeemable noncontrolling interests and stockholders’ equity | $ 26,931,604 | $ 25,344,896 | ||
[1] | Goodwill and intangible assets have been reduced by amounts written-down in prior periods, as applicable. | |||
[2] | Includes unallocated LAE, which aggregate to 1.1 percent of gross loss and LAE reserves as of December 31, 2019. Net loss and LAE reserves by component are shown in the preceding tables, and consolidated gross loss and LAE reserves is presented in the consolidated balance sheets. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Equity securities, cost | $ 1,625,256 | $ 2,904,496 |
Debt securities, amortized cost | $ 13,798,576 | $ 11,895,850 |
Common stock, Shares authorized | 22,000,000 | 22,000,000 |
Common stock, Shares issued | 17,459,961 | 17,459,961 |
Treasury stock, shares | 3,095,333 | 2,883,452 |
Consolidated Statements of Earn
Consolidated Statements of Earnings and Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Revenues | ||||
Net premiums earned | $ 5,478,143 | $ 4,976,190 | $ 4,954,990 | |
Net investment income | 550,241 | 500,534 | 451,016 | |
Change in the fair value of equity securities | 709,695 | (228,994) | ||
Net realized capital gains | (6,551) | (3,241) | 107,222 | |
Other than temporary impairment losses | (19,660) | (1,328) | ||
Other than temporary impairment losses | (16,871) | |||
Noninsurance revenue | 2,328,848 | 1,643,999 | 928,298 | |
Total revenues | 9,040,716 | 6,887,160 | 6,424,655 | |
Costs and Expenses | ||||
Net loss and loss adjustment expenses | 3,686,435 | 3,520,431 | 3,620,197 | |
Commissions, brokerage and other underwriting expenses | [1] | 1,758,698 | 1,617,333 | 1,651,177 |
Other operating expenses | 2,263,326 | 1,579,309 | 967,104 | |
Corporate administration | 74,830 | 15,732 | 46,998 | |
Amortization of intangible assets | 33,834 | 24,039 | 19,419 | |
Interest expense | 99,957 | 90,724 | 83,070 | |
Total costs and expenses | 7,917,080 | 6,847,568 | 6,387,965 | |
Earnings (losses) before income taxes | 1,123,636 | 39,592 | 36,690 | |
Income taxes | 233,435 | (15,062) | (63,802) | |
Net earnings | 890,201 | 54,654 | 100,492 | |
Net earnings attributable to noncontrolling interests | 32,400 | 15,115 | 10,359 | |
Net earnings attributable to Alleghany stockholders | 857,801 | 39,539 | 90,133 | |
Net earnings | 890,201 | 54,654 | 100,492 | |
Other comprehensive income (loss): | ||||
Change in unrealized gains (losses), net of deferred taxes | 402,957 | (212,539) | 520,976 | |
Less: reclassification for net realized capital gains and other than temporary impairments, net of taxes | (20,384) | 11,757 | (47,925) | |
Change in unrealized currency translation adjustment, net of deferred taxes | 2,933 | (21,902) | 26,639 | |
Retirement plans | (12,153) | 3,071 | (3,755) | |
Comprehensive income (loss) | 1,263,554 | (164,959) | 596,427 | |
Comprehensive income attributable to noncontrolling interests | 32,400 | 15,115 | 10,359 | |
Comprehensive income (loss) attributable to Alleghany stockholders | $ 1,231,154 | $ (180,074) | $ 586,068 | |
Basic earnings per share attributable to Alleghany stockholders | $ 59.44 | $ 2.62 | $ 5.85 | |
Diluted earnings per share attributable to Alleghany stockholders | $ 59.39 | $ 2.62 | $ 5.85 | |
[1] | Includes amortization associated with deferred acquisition costs of $1,392.8 million, $1,271.4 million and $1,261.7 million for the years ended December 31, 2019, 2018 and 2017, respectively. |
Consolidated Statements of Ea_2
Consolidated Statements of Earnings and Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Change in unrealized gains (losses), deferred taxes | $ 107,115 | $ (56,498) | $ 280,526 |
Reclassification for net realized capital gains and other than temporary impairments,taxes | (5,419) | 3,125 | (25,806) |
Change in unrealized currency translation adjustment, deferred taxes | $ 780 | $ (5,822) | $ 14,344 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Contributed Capital | Accumulated Other Comprehensive Income (loss) | Treasury Stock | Retained Earnings | |
Beginning Balance at Dec. 31, 2016 | $ 7,939,945 | $ 17,460 | $ 3,611,993 | $ 109,284 | $ (812,840) | $ 5,014,048 | |
Cumulative effect of adoption of new accounting pronouncements at Dec. 31, 2016 | 12,899 | (12,899) | |||||
Net earnings (losses) | 90,133 | 90,133 | |||||
Other comprehensive income (loss), net of tax: | |||||||
Retirement plans | (3,755) | (3,755) | |||||
Change in unrealized appreciation of investments, net | 473,051 | 473,051 | |||||
Change in unrealized currency translation adjustment, net | 26,639 | 26,639 | |||||
Comprehensive income (loss) attributable to Alleghany stockholders | 586,068 | 495,935 | 90,133 | ||||
Treasury stock repurchase | (16,048) | (16,048) | |||||
Other, net | 4,098 | 116 | 3,982 | ||||
Ending Balance at Dec. 31, 2017 | 8,514,063 | 17,460 | 3,612,109 | 618,118 | (824,906) | 5,091,282 | |
Redeemable noncontrolling interests balance at Dec. 31, 2016 | 74,720 | ||||||
Redeemable Non-controlling Interests | |||||||
Net earnings attributable to redeemable noncontrolling interests | 10,359 | ||||||
Comprehensive income (loss) attributable to noncontrolling interests | 10,359 | ||||||
Other net changes to redeemable noncontrolling interests | 21,451 | ||||||
Redeemable noncontrolling interests balance at Dec. 31, 2017 | 106,530 | ||||||
Cumulative effect of adoption of new accounting pronouncements at Dec. 31, 2017 | (600,508) | [1] | 600,508 | ||||
Net earnings (losses) | 39,539 | 39,539 | |||||
Other comprehensive income (loss), net of tax: | |||||||
Retirement plans | 3,071 | 3,071 | |||||
Change in unrealized appreciation of investments, net | (200,782) | (200,782) | |||||
Change in unrealized currency translation adjustment, net | (21,902) | (21,902) | |||||
Comprehensive income (loss) attributable to Alleghany stockholders | (180,074) | (219,613) | 39,539 | ||||
Dividends paid | (153,967) | (153,967) | |||||
Treasury stock repurchase | (491,633) | (491,633) | |||||
Other, net | 4,321 | 721 | 3,600 | ||||
Ending Balance at Dec. 31, 2018 | 7,692,710 | 17,460 | 3,612,830 | (202,003) | (1,312,939) | 5,577,362 | |
Redeemable Non-controlling Interests | |||||||
Net earnings attributable to redeemable noncontrolling interests | 15,115 | ||||||
Comprehensive income (loss) attributable to noncontrolling interests | 15,115 | ||||||
Other net changes to redeemable noncontrolling interests | 48,117 | ||||||
Redeemable noncontrolling interests balance at Dec. 31, 2018 | 169,762 | ||||||
Net earnings (losses) | 857,801 | 857,801 | |||||
Other comprehensive income (loss), net of tax: | |||||||
Retirement plans | (12,153) | (12,153) | |||||
Change in unrealized appreciation of investments, net | 382,573 | 382,573 | |||||
Change in unrealized currency translation adjustment, net | 2,933 | 2,933 | |||||
Comprehensive income (loss) attributable to Alleghany stockholders | 1,231,154 | 373,353 | 857,801 | ||||
Treasury stock repurchase | (144,422) | (144,422) | |||||
Other, net | (2,708) | (4,192) | 1,484 | ||||
Ending Balance at Dec. 31, 2019 | 8,776,734 | $ 17,460 | $ 3,608,638 | $ 171,350 | $ (1,455,877) | $ 6,435,163 | |
Redeemable Non-controlling Interests | |||||||
Net earnings attributable to redeemable noncontrolling interests | 32,400 | ||||||
Comprehensive income (loss) attributable to noncontrolling interests | 32,400 | ||||||
Other net changes to redeemable noncontrolling interests | 2,591 | ||||||
Redeemable noncontrolling interests balance at Dec. 31, 2019 | $ 204,753 | ||||||
[1] | See Note 1(r) for additional information regarding Alleghany’s adoption of new investment accounting guidance and new guidance on certain tax effects caused by the Tax Act. |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - shares | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Statement Of Stockholders Equity [Abstract] | ||||
Common stock, Shares issued | 17,459,961 | 17,459,961 | 17,459,961 | 17,459,961 |
Treasury stock, shares | 3,095,333 | 2,883,452 | 2,069,461 | 2,049,797 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities | |||
Net earnings | $ 890,201 | $ 54,654 | $ 100,492 |
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 119,513 | 127,374 | 135,029 |
Change in the fair value of equity securities | (709,695) | 228,994 | |
Net realized capital (gains) losses | 6,551 | 3,241 | (107,222) |
Other than temporary impairment losses | 19,660 | 1,328 | |
Other than temporary impairment losses | 16,871 | ||
(Increase) decrease in reinsurance recoverables, net of reinsurance payable | 259,048 | (162,499) | (408,552) |
(Increase) decrease in premium balances receivable | (105,368) | (45,296) | (53,654) |
(Increase) decrease in ceded unearned premiums | (26,921) | (30,980) | 10,771 |
(Increase) decrease in deferred acquisition costs | (58,031) | (11,200) | (4,712) |
(Increase) decrease in funds held under reinsurance agreements | (11,458) | (38,015) | (114,440) |
Increase (decrease) in unearned premiums | 299,092 | 84,784 | 6,796 |
Increase (decrease) in loss and loss adjustment expenses | (321,935) | 379,044 | 784,051 |
Change in unrealized foreign currency exchange rate losses (gains) | (18,033) | 84,089 | (143,878) |
Other, net | 371,781 | (273,095) | 224,183 |
Net adjustments | (175,796) | 347,769 | 345,243 |
Net cash provided by (used in) operating activities | 714,405 | 402,423 | 445,735 |
Cash flows from investing activities | |||
Purchases of debt securities | (6,726,809) | (4,716,070) | (5,805,364) |
Purchases of equity securities | (520,961) | (1,041,887) | |
Purchases of equity securities | (4,574,415) | ||
Sales of debt securities | 3,645,307 | 3,647,156 | 3,986,259 |
Maturities and redemptions of debt securities | 1,166,841 | 1,526,060 | 1,943,263 |
Sales of equity securities | 2,296,371 | 1,609,647 | |
Sales of equity securities | 4,315,408 | ||
Net (purchases) sales of short-term investments | (21,564) | (316,366) | 145,237 |
Net (purchases) sales and maturities of commercial mortgage loans | (9,674) | (18,168) | (63,486) |
(Purchases) sales of property and equipment | (47,572) | (23,286) | 6,775 |
Purchases of affiliates and subsidiaries, net of cash acquired | (218,260) | (235,176) | (244,311) |
Sale of Subsidiaries | 158,192 | ||
Other, net | (40,218) | (86,478) | (22,678) |
Net cash provided by (used in) investing activities | (476,539) | 345,432 | (155,120) |
Cash flows from financing activities | |||
Treasury stock acquisitions | (144,422) | (491,633) | (16,048) |
Increase (decrease) in other debt | 81,738 | 104,404 | (28,924) |
Cash dividends paid | (153,967) | ||
Other, net | (40,530) | 4,512 | (19,400) |
Net cash provided by (used in) financing activities | (103,214) | (536,684) | (64,372) |
Effect of foreign exchange rate changes on cash | 5,683 | (10,783) | 18,041 |
Net increase (decrease) in cash | 140,335 | 200,388 | 244,284 |
Cash at beginning of period | 1,038,763 | 838,375 | 594,091 |
Cash at end of period | 1,179,098 | 1,038,763 | 838,375 |
Supplemental disclosures of cash flow information | |||
Interest paid | 97,016 | 88,345 | 83,171 |
Income taxes paid (refund received) | $ 61,786 | $ 33,677 | $ 8,863 |
Summary of Significant Accounti
Summary of Significant Accounting Principles | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Principles | 1. Summary of Significant Accounting Principles (a) Principles of Financial Statement Presentation Alleghany Corporation (“Alleghany”), a Delaware corporation, owns and supports certain operating subsidiaries and manages investments, anchored by a core position in property and casualty reinsurance and insurance. Through its subsidiary Transatlantic Holdings, Inc. (“TransRe”), an Alleghany subsidiary since March 2012, Alleghany is engaged in the property and casualty reinsurance business. Through its wholly-owned subsidiary Alleghany Insurance Holdings LLC (“AIHL”), Alleghany is engaged in the property and casualty insurance business. AIHL’s insurance operations are principally conducted by its subsidiaries RSUI Group, Inc. (“RSUI”) and CapSpecialty, Inc. (“CapSpecialty”). RSUI and CapSpecialty have been subsidiaries of AIHL since July 2003 and January 2002, respectively. AIHL Re LLC (“AIHL Re”), a captive reinsurance company which provides reinsurance to Alleghany’s current and former insurance operating subsidiaries and affiliates, has been a subsidiary of AIHL since its formation in May 2006. Prior to December 31, 2017, AIHL’s insurance operations also included Pacific Compensation Corporation (“PacificComp”). On December 31, 2017, AIHL sold PacificComp to CopperPoint Mutual Insurance Company (“CopperPoint”) for total cash consideration of approximately $158 million, at which time: (i) approximately $442 million of PacificComp assets, consisting primarily of debt securities, and approximately $316 million of PacificComp liabilities, consisting primarily of loss and loss adjustment expenses (“LAE”) reserves, were transferred to CopperPoint; and (ii) AIHL recorded an after-tax gain of approximately $16 million, which included a tax benefit. In connection with the transaction, AIHL Re provides adverse development reinsurance coverage on PacificComp’s pre-acquisition claims, subject to certain terms and conditions. AIHL Re’s obligations, which are guaranteed by Alleghany, are subject to an aggregate limit of $150.0 million and a final commutation and settlement as of December 31, 2024. Although Alleghany’s primary sources of revenues and earnings are its reinsurance and insurance operations and investments, Alleghany also generates revenues and expenses from a diverse portfolio of middle-market businesses that are owned and managed through its wholly-owned subsidiary Alleghany Capital Corporation (“Alleghany Capital”). Alleghany Capital’s businesses include: • Precision Cutting Technologies, Inc. (“PCT”), a holding company headquartered in Rockford, Illinois, with three operating businesses: (i) Bourn & Koch, Inc., a provider of precision automated machine tool solutions; (ii) Diamond Technology Innovations, Inc., a manufacturer of waterjet orifices and nozzles and a provider of related services; and (iii) Coastal Industrial Distributors, LLC, a provider of high-performance solid carbide end mills; • R.C. Tway Company, LLC (“Kentucky Trailer”), a manufacturer of custom trailers and truck bodies for the moving and storage industry and other markets, headquartered in Louisville, Kentucky; • IPS-Integrated Project Services, LLC (“IPS”), a design, engineering, procurement, construction management, and validation service provider focused on the global pharmaceutical and biotechnology industries, headquartered in Blue Bell, Pennsylvania; • Jazwares, LLC (together with its affiliates, “Jazwares”), a global toy, entertainment and musical instrument company, headquartered in Sunrise, Florida; • WWSC Holdings, LLC (“W&W|AFCO Steel”), a structural steel fabricator and erector, headquartered in Oklahoma City, Oklahoma; • CHECO Holdings, LLC (“Concord”), a hotel management and development company, headquartered in Raleigh, North Carolina; and • a 45 percent equity interest in Wilbert Funeral Services, Inc. (“Wilbert”), a provider of products and services for the funeral and cemetery industries and precast concrete markets, headquartered in Overland Park, Kansas. The results of Concord have been included in Alleghany’s consolidated results beginning with its acquisition by Alleghany Capital on October 1, 2018. Wilbert is accounted for under the equity method of accounting and is included in other invested assets. The results of Wilbert have been included in Alleghany’s consolidated results beginning with its acquisition by Alleghany Capital on August 1, 2017. In addition, Alleghany owns certain other holding-company investments. Alleghany’s wholly-owned subsidiary, Stranded Oil Resources Corporation (“SORC”) is an exploration and production company focused on enhanced oil recovery, headquartered in Golden, Colorado. Alleghany’s wholly-owned subsidiary, Alleghany Properties Holdings LLC (“Alleghany Properties”) owns and manages certain properties in the Sacramento, California region. Alleghany’s public equity investments are managed primarily through Alleghany’s wholly-owned subsidiary Roundwood Asset Management LLC. Unless the context otherwise requires, references to “Alleghany” include Alleghany together with its subsidiaries. The accompanying consolidated financial statements include the results of Alleghany and its wholly-owned and majority-owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”). All material inter-company balances and transactions have been eliminated in consolidation. The portion of stockholders’ equity, net earnings and comprehensive income that is not attributable to Alleghany stockholders is presented on the consolidated balance sheets, the consolidated statements of earnings and comprehensive income and the consolidated statements of changes in stockholders’ equity as noncontrolling interests. Because all noncontrolling interests have the option to sell their ownership interests to Alleghany in the future (generally through 2024), the portion of stockholders’ equity that is not attributable to Alleghany stockholders is presented on the consolidated balance sheets and the consolidated statements of changes in stockholders’ equity as redeemable noncontrolling interests for all periods presented. In addition, Alleghany accretes the redeemable noncontrolling interests up to its future estimated redemption value over the period from the date of issuance to the earliest redemption date. The redemption value of the equity interests is generally based on the respective subsidiary’s earnings in specified periods preceding the redemption date, calculated based on either a specified formula or an independent fair market valuation. During 2019, the noncontrolling interests outstanding were approximately as follows: Kentucky Trailer - 23 percent; IPS - 15 percent; W&W|AFCO Steel - 20 percent; and Concord - 15 percent. In connection with an acquisition on October 1, 2019, the noncontrolling interests of Jazwares were increased from approximately 23 percent to approximately 25 percent. Effective April 1, 2019, all noncontrolling interest holders of PCT have exercised their repurchase options and sold their ownership interests to PCT. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Alleghany relies on historical experience and on various other assumptions that it believes to be reasonable under the circumstances to make judgments about the carrying value of assets and liabilities and reported revenues and expenses that are not readily apparent from other sources. Actual results may differ materially from those reported results to the extent that those estimates and assumptions prove to be inaccurate. Changes in estimates are reflected in the consolidated statements of earnings and comprehensive income in the period in which the changes are made. (b) Investments Investments consist of debt securities, equity securities, short-term investments, commercial mortgage loans and other invested assets. Alleghany considers all of its marketable debt securities and short-term investments as available-for-sale (“AFS”). Debt securities consist of securities with an initial fixed maturity of more than one year. Debt securities typically take the form of bonds and redeemable preferred stock. Equity securities generally consist of securities that represent ownership interests in an enterprise. Equity securities typically take the form of common stock or perpetual preferred stock. Mutual funds and exchange-traded securities are also classified as equity securities, including those that invest mostly in debt securities. Commencing January 1, 2018, all marketable equity securities are measured at fair value with changes in fair value recognized in net earnings, and prior to that date, were considered AFS. Short-term investments include commercial paper, certificates of deposit, money market instruments and any fixed maturity investment with an initial maturity of one year or less. AFS securities are recorded at fair value. Unrealized gains and losses during the year, net of the related tax effect, for AFS securities, as well as partnership investments that Alleghany accounts for as AFS, are excluded from earnings and reflected in comprehensive income, and the cumulative effect is reported as a separate component of stockholders’ equity until realized. If a decline in fair value is deemed to be other than temporary, the investment is written down to its fair value and the amount of the write-down is recorded as an other than temporary impairment (“OTTI”) loss on the statement of earnings. In addition, any portion of such decline related to debt securities that is believed to arise from factors other than credit is recorded as a component of other comprehensive income rather than against earnings. Commercial mortgage loans are carried at unpaid principal balance, less allowance for loan losses. The allowance for loan losses is a valuation allowance for incurred credit losses when management believes the uncollectibility of a loan balance is probable. Subsequent recoveries, if any, are credited to the allowance. Interest income on loans is accrued as earned. Other invested assets include invested assets not identified above, primarily related to: (i) equity investments in operating companies where Alleghany has significant influence (an aggregate common stock position held at or above 20 percent is presumed to convey significant influence); (ii) partnership investments (including hedge funds and private equity funds); and (iii) non-marketable equity investments. Equity investments in operating companies where Alleghany has significant influence are accounted for using the equity method. Partnership investments are accounted for at fair value, with changes in fair value recognized in net earnings, or using the equity method where Alleghany has significant influence. Non-marketable equity investments are accounted for at fair value, with changes in fair value recognized in net earnings. Net realized gains and losses on investments are determined in accordance with the specific identification method. Net investment income consists primarily of: (i) interest income from debt securities, short-term investments, commercial mortgage loans, funds withheld by cedants and cash, including any premium amortization or discount accretion; (ii) dividend income from equity securities; and (iii) investment income from other invested assets, which includes results arising from partnership investments, whether accounted for under the equity method or at fair value. Interest income is accrued when earned. Premiums and discounts arising from the purchase of certain debt securities are treated as a yield adjustment over the estimated useful life of the securities, adjusted for anticipated prepayments using the retrospective interest method. Under this method, the effective yield on a security is estimated. Such estimates are based on the prepayment terms of the security, past actual cash flows and assumptions as to future expected cash flow. The future expected cash flow assumptions consider various prepayment assumptions based on historical experience, as well as current market conditions. Periodically, the effective yield is re-estimated to reflect actual prepayments and updated future expected cash flow assumptions. Upon a re-estimation, a security’s book value is restated at the most recently calculated effective yield, assuming that yield had been in effect since the security was purchased. This treatment results in an increase or decrease to net investment income (accretion of premium or amortization of discount) at the new measurement date. With respect to callable debt securities purchased at a premium to par value, the amortization period for that premium is the earliest call date. See Note 4 for additional information regarding investments. (c) Fair value Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between willing, able and knowledgeable market participants at the measurement date. Fair value measurements are not adjusted for transaction costs. In addition, a three-tiered hierarchy for inputs is used in management’s determination of fair value of financial instruments that emphasizes the use of observable inputs over the use of unobservable inputs by requiring that the observable inputs be used when available. Observable inputs are market participant assumptions based on market data obtained from sources independent of the reporting entity. Unobservable inputs are the reporting entity’s own assumptions about market participant assumptions based on the best information available under the circumstances. In assessing the appropriateness of using observable inputs in making its fair value determinations, Alleghany considers whether the market for a particular security is “active” or “inactive” based on all the relevant facts and circumstances. A market may be considered to be inactive if there are relatively few recent transactions or if there is a significant decrease in market volume. Furthermore, Alleghany considers whether observable transactions are “orderly” or not. Alleghany does not consider a transaction to be orderly if there is evidence of a forced liquidation or other distressed condition; as such, little or no weight is given to that transaction as an indicator of fair value. Although Alleghany is responsible for the determination of the fair value of its financial assets and the supporting methodologies and assumptions, it employs third-party valuation service providers to gather, analyze and interpret market information and derive fair values based upon relevant methodologies and assumptions for individual instruments. When those providers are unable to obtain sufficient market observable information upon which to estimate the fair value for a particular security, fair value is determined either by requesting a quote, which is generally non-binding, from brokers who are knowledgeable about these securities or by employing widely accepted valuation models. Valuation service providers typically obtain data about market transactions and other key valuation model inputs from multiple sources and, through the use of widely accepted valuation models, provide a single fair value measurement for individual securities for which a fair value has been requested under the terms of service agreements. The inputs used by the valuation service providers include, but are not limited to, market prices from recently completed transactions and transactions of comparable securities, interest rate yield curves, credit spreads, currency rates and other market observable information, as applicable. The valuation models take into account, among other things, market observable information as of the measurement date as well as the specific attributes of the security being valued including its term, interest rate, credit rating, industry sector and, when applicable, collateral quality and other issue or issuer specific information. When market transactions or other market observable data is limited, the extent to which judgment is applied in determining fair value is greatly increased. The three-tiered hierarchy used in management’s determination of fair value is broken down into three levels based on the reliability and observability of inputs as follows: • Level 1: Valuations are based on unadjusted quoted prices in active markets that Alleghany has the ability to access for identical, unrestricted assets and do not involve any meaningful degree of judgment. An active market is defined as a market where transactions for the financial instrument occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Alleghany’s Level 1 assets include publicly traded common stocks and mutual funds (which are included on the consolidated balance sheet in equity securities) where Alleghany’s valuations are based on quoted market prices. • Level 2: Valuations are based on direct and indirect observable inputs other than quoted market prices included in Level 1. Level 2 inputs include quoted prices for similar assets in active markets and inputs other than quoted prices that are observable for the asset, such as the terms of the security and market-based inputs. Terms of the security include coupon, maturity date and any special provisions that may, for example, enable the investor, at its election, to redeem the security prior to its scheduled maturity date (such provisions may apply to all debt securities except U.S. Government obligations). Market-based inputs include interest rates and yield curves that are observable at commonly quoted intervals and current credit rating(s) of the security. Market-based inputs may also include credit spreads of all debt securities except U.S. Government obligations, and currency rates for certain foreign government obligations and foreign corporate bonds denominated in foreign currencies. Fair values are determined using a market approach that relies on the securities’ relationships to quoted prices for similar assets in active markets, as well as the other inputs described above. In determining the fair values for the vast majority of commercial mortgage-backed securities (“CMBS”) and other asset- backed securities, as well as a small portion of residential mortgage-backed securities (“RMBS”), an income approach is used to corroborate and further support the fair values determined by the market approach. The income approach primarily involves developing a discounted cash flow model using the future projected cash flows of the underlying collateral, and the terms of the security. Level 2 assets generally include short-term investments and most debt securities. Alleghany’s Level 2 liabilities consist of the Senior Notes, as defined in Note 1(n). • Level 3: Valuations are based on techniques that use significant inputs that are unobservable. The valuation of Level 3 assets requires the greatest degree of judgment. These measurements may be made under circumstances in which there is little, if any, market activity for the asset. Alleghany’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment. In making the assessment, Alleghany considers factors specific to the asset. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement is classified is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Assets classified as Level 3 principally include other asset-backed securities (primarily, collateralized loan obligations) and, to a lesser extent, U.S. and foreign corporate bonds (including privately issued securities), CMBS and commercial mortgage loans. Mortgage-backed and asset-backed securities are initially valued at the transaction price. Subsequently, Alleghany uses widely accepted valuation practices that produce a fair value measurement. The vast majority of fair values are determined using an income approach. The income approach primarily involves developing a discounted cash flow model using the future projected cash flows of the underlying collateral, as well as other inputs described below. A few Level 3 valuations are based entirely on non-binding broker quotes. These securities consist primarily of mortgage-backed and asset-backed securities where reliable pool and loan level collateral information cannot be reasonably obtained, and as such, an income approach is not feasible. Since Level 3 valuations are based on techniques that use significant inputs that are unobservable with little or no market activity, the fair values under the market approach for Level 3 securities are less credible than under the income approach; however, the market approach, where feasible, is used to corroborate the fair values determined by the income approach. The market approach primarily relies on the securities’ relationships to quoted transaction prices for similarly structured instruments. To the extent that transaction prices for similarly structured instruments are not available for a particular security, other market approaches are used to corroborate the fair values determined by the income approach, including option adjusted spread analyses. Unobservable inputs, significant to the measurement and valuation of mortgage-backed and asset-backed securities, are generally used in the income approach, and include assumptions about prepayment speed and collateral performance, including default, delinquency and loss severity rates. Significant changes to any one of these inputs, or combination of inputs, could significantly change the fair value measurement for these securities. The impact of prepayment speeds on fair value is dependent on a number of variables including whether the securities were purchased at a premium or discount. A decrease in interest rates generally increases the assumed rate of prepayments, and an increase in interest rates generally decreases the assumed speed of prepayments. Increased prepayments increase the yield on securities purchased at a discount and reduce the yield on securities purchased at a premium. In a decreasing prepayment environment, yields on securities purchased at a discount are reduced but are increased for securities purchased at a premium. Changes in default assumptions on underlying collateral are generally accompanied by directionally similar changes in other collateral performance factors, but generally result in a directionally opposite change in prepayment assumptions. Alleghany’s Level 3 liabilities consist of the debt of Alleghany Capital’s operating subsidiaries. Alleghany employs specific control processes to determine the reasonableness of the fair values of its financial assets and liabilities. Alleghany’s processes are designed to ensure that the values received or internally estimated are accurately recorded and that the data inputs and the valuation techniques used are appropriate, consistently applied and that the assumptions are reasonable and consistent with the objective of determining fair value. Alleghany assesses the reasonableness of individual security values received from valuation service providers through various analytical techniques. In addition, Alleghany validates the reasonableness of fair values by comparing information obtained from Alleghany’s valuation service providers to other third-party valuation sources for selected securities. Alleghany also validates prices obtained from brokers for selected securities through reviews by those who have relevant expertise and who are independent of those charged with executing investing transactions. In addition to such procedures, Alleghany reviews the reasonableness of its classification of securities within the three-tiered hierarchy to ensure that the classification is consistent with GAAP. See Note 3 for additional information regarding fair value. (d) Cash Cash includes all deposit balances with a bank that are available for immediate withdrawal, whether interest-bearing or non-interest bearing. (e) Premiums and Unearned Premiums Premiums are recognized as revenue on a pro rata basis over the term of an insurance policy. Assumed reinsurance premiums written and earned are based on reports received from ceding companies for pro rata treaty contracts and are generally recorded as written based on contract terms for excess-of-loss treaty contracts. Premiums are earned ratably over the terms of the related coverages. Unearned premiums and ceded unearned premiums represent the portion of gross premiums written and ceded premiums written, respectively, related to the unexpired periods of such coverages. Assumed reinsurance premiums written and earned, along with related costs, for which data has not been reported by the ceding companies, are estimated based on historical patterns and other relevant factors. These estimates may change when actual data for such estimated items becomes available. Premium balances receivable are reported net of an allowance for estimated uncollectible premium amounts. Such allowance is based upon an ongoing review of amounts outstanding, length of collection periods, the creditworthiness of the insured and other relevant factors. Amounts deemed to be uncollectible are written off against the allowance. (f) Reinsurance Ceded Reinsurance is used to mitigate the exposure to losses, manage capacity and protect capital resources. Reinsuring loss exposures does not relieve a ceding entity from its obligations to policyholders and cedants. Reinsurance recoverables (including amounts related to incurred but not reported (“IBNR”) claims) and ceded unearned premiums are reported as assets. To minimize exposure to losses related to a reinsurer’s inability to pay, the financial condition of such reinsurer is evaluated initially upon placement of the reinsurance and periodically thereafter. In addition to considering the financial condition of a reinsurer, the collectability of the reinsurance recoverables is evaluated (and where appropriate, whether an allowance for estimated uncollectible reinsurance recoverables is to be established) based upon a number of other factors. Such factors include the amounts outstanding, length of collection periods, disputes, any collateral or letters of credit held and other relevant factors. To the extent that an allowance for uncollectible reinsurance recoverable is established, amounts deemed to be uncollectible are written off against the allowance for estimated uncollectible reinsurance recoverables. Alleghany currently has no allowance for uncollectible reinsurance recoverables. Ceded premiums written are recorded in accordance with the applicable terms of the various reinsurance contracts and ceded premiums earned are charged against revenue over the period of the various reinsurance contracts. This also generally applies to reinstatement premiums paid to a reinsurer, which arise when contractually-specified ceded loss triggers have been breached. Ceded commissions reduce commissions, brokerage and other underwriting expenses and ceded losses incurred reduce net loss and LAE incurred over the applicable periods of the various reinsurance contracts with third-party reinsurers. If premiums or commissions are subject to adjustment (for example, retrospectively-rated or experience-rated), the estimated ultimate premium or commission is recognized over the period of the contract. Amounts recoverable from reinsurers are estimated in a manner consistent with the claim liability associated with the reinsured business and consistent with the terms of the underlying reinsurance contract. See Note 5 for additional information on reinsurance ceded and reinsurance recoverables. (g) Deferred Acquisition Costs Acquisition costs related to unearned premiums that vary with, and are directly related to, the production of such premiums are deferred. Furthermore, such deferred costs: (i) represent only incremental, direct costs associated with the successful acquisition of a new or renewal insurance or reinsurance contract; (ii) are essential to the contract transaction; (iii) would not have been incurred had the contract transaction not occurred; and (iv) are related directly to the acquisition activities involving underwriting, policy issuance and processing. Acquisition costs principally relate to commissions. To a lesser extent, acquisition costs can include premium taxes and certain qualifying underwriting expenses. For insurance policies written, acquisition costs are generally incurred directly and include commissions, premium taxes and certain qualifying underwriting expenses. For reinsurance contracts written, acquisition costs are generally incurred through brokerage commissions and indirectly through ceding commissions, which are deferred. Deferred acquisition costs are amortized to expense as the related premiums are earned, generally over a period of one year. Deferred acquisition costs are reviewed at least annually to determine their recoverability from future income, including investment income. If any such costs are determined not to be recoverable they are charged to expense. Anticipated net loss and LAE and estimated remaining costs of servicing the contracts are considered when evaluating recoverability of deferred acquisition costs. (h) Property and Equipment Property and equipment is carried at cost, net of accumulated depreciation and amortization. Depreciation of buildings and equipment is principally calculated using the straight-line method over the estimated useful life of the respective assets. Estimated useful lives for such assets range from three to 20 years. Amortization of leasehold improvements is principally calculated using the straight-line method over the estimated useful life of the leasehold improvement or the life of the lease, whichever is less. Rental expense on operating leases is recorded on a straight-line basis over the term of the lease, regardless of the timing of actual lease payments. Commencing January 1, 2019, all leases with terms of more than one year are recorded as lease liabilities and corresponding right-of-use assets, and are recorded as a component of other liabilities and other assets, respectively. See Note 12(b) for further information on Alleghany’s leases. (i) Goodwill and Other Intangible Assets Goodwill and other intangible assets, net of amortization, are recorded as a consequence of business acquisitions. Goodwill represents the excess, if any, of the amount paid to acquire subsidiaries and other businesses over the fair value of their net assets as of the date of acquisition. Other intangible assets are recorded at their fair value as of the acquisition date. A significant amount of judgment is needed to determine the fair value as of the date of acquisition of other intangible assets and the net assets acquired in a business acquisition. The determination of the fair value of other intangible assets and net assets often involves the use of valuation models and other estimates, which involve many assumptions and variables and are inherently subjective. The fair value estimates may include the use of financial projections and discount rates. Other intangible assets that are not deemed to have an indefinite useful life are amortized over their estimated useful lives. Goodwill and intangible assets that have an indefinite useful life are not subject to amortization. Goodwill and other intangible assets deemed to have an indefinite useful life are tested annually for impairment in the fourth quarter. Goodwill and other intangible assets are also tested whenever events and changes in circumstances suggest that the carrying amount may not be recoverable. A significant amount of judgment is required in performing goodwill and other intangible asset impairment tests. These tests may include estimating the fair value of Alleghany’s operating subsidiaries, which include Alleghany Capital’s operating subsidiaries, and other intangible assets. The fair value estimates may include the use of financial projections and discount rates. If it is determined that an ass |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 2. Goodwill and Intangible Assets On October 1, 2019, Jazwares acquired the outstanding equity of Wicked Cool Toys, LLC (“WCT”), a global toy company based in Bristol, Pennsylvania, for $159.0 million. Jazwares funded the acquisition with $135.5 million of incremental debt and the issuance of certain noncontrolling interests in Jazwares, which were valued at $23.5 million and which increased the aggregate noncontrolling interests in Jazwares from approximately 23 percent to approximately 25 percent. In connection with the acquisition, Alleghany recorded $39.1 million of goodwill, $83.9 million of finite-lived intangible assets related to license agreements and $24.9 million of other finite-lived intangible assets related primarily to customer relationships. The acquisition-date consideration transferred and purchase price allocation to the acquired assets and assumed liabilities of WCT were based on estimated fair values that have not been finalized. As a result, the fair value recorded for these items is a provisional estimate and may be subject to further adjustment. Once completed, any adjustment resulting from the valuations may impact the individual amounts recorded for acquired assets and assumed liabilities, as well as the residual goodwill. The acquisition accounting for WCT is expected to be finalized later in 2020. On October 1, 2018, Alleghany Capital acquired approximately 85 percent of the equity in Concord for $136.6 million, consisting of $68.6 million in cash paid upon consummation of the transaction, $38.2 million of potential contingent consideration based on future profitability and $29.8 million of incremental debt. In connection with the acquisition, Alleghany recorded $83.0 million of goodwill and $70.8 million of finite-lived intangible assets related primarily to customer relationships. On February 7, 2018, W&W|AFCO Steel acquired the outstanding equity of Hirschfeld Holdings, LP (“Hirschfeld”), a fabricator of steel bridges and structural steel for stadiums, airports and other large commercial and industrial projects, for $109.1 million, consisting of $94.4 million in cash and $14.7 million of incremental debt. The $94.4 million paid by W&W|AFCO Steel was funded by capital contributions from Alleghany and noncontrolling interests of $75.5 million and $18.9 million, respectively. In connection with the acquisition, Alleghany completed the process of determining the fair value of acquired assets and liabilities in the fourth quarter of 2018, and recorded $3.0 million of goodwill and $9.4 million of finite-lived intangible assets related primarily to customer relationships. On April 28, 2017, Alleghany Capital acquired approximately 80 percent of the equity in W&W|AFCO Steel for $164.5 million, consisting of $163.9 million in cash paid on May 1, 2017 and $0.6 million of estimated purchase price adjustments. In connection with the acquisition, Alleghany recorded $41.1 million, $25.3 million and $70.0 million of goodwill, indefinite-lived intangible assets and finite-lived intangible assets, respectively. Indefinite-lived intangible assets relate to trade name and finite-lived intangible assets relate to customer relationships. In addition to W&W|AFCO Steel’s acquisition of Hirschfeld and Jazwares’ acquisition of WCT, several other subsidiaries of Alleghany Capital have made other acquisitions, including: • Acquisitions made by Kentucky Trailer in 2014, 2015, 2018 and 2019, including two acquisitions of controlling interests in manufacturers of aluminum feed transportation equipment. Specifically, Kentucky Trailer acquired a company based in Cedar Rapids, Iowa in December 2018 and a company based in Birmingham, Alabama in July 2019; • Acquisitions made by Jazwares in 2016 and 2018; • Acquisitions made by PCT of a manufacturer of waterjet orifices and nozzles and a provider of related services in October 2016 and a provider of high-performance solid carbide end mills in June 2019; and • An acquisition made by IPS in May 2019. The following table presents the amount of goodwill and intangible assets, net of accumulated amortization expense, reported on Alleghany’s consolidated balance sheets as of December 31, 2019 and 2018: December 31, 2019 December 31, 2018 Gross Carrying Value Accumulated Amortization Net Carrying Value (1) Gross Carrying Value Accumulated Amortization Net Carrying Value (1) ($ in millions) Insurance Segment (2) $ 49.0 $ — $ 49.0 $ 49.0 $ — $ 49.0 Insurance Segment - Intangible assets: Agency relationships 16.6 12.4 4.2 18.4 11.4 7.0 State insurance licenses 25.1 — 25.1 25.1 — 25.1 Trade name 35.5 — 35.5 35.5 — 35.5 Brokerage and reinsurance relationships 33.8 33.8 — 33.8 33.8 — Renewal rights 25.1 24.5 0.6 25.1 24.1 1.0 Other 4.1 4.1 — 4.1 4.1 — Total insurance segment intangibles 140.2 74.8 65.4 142.0 73.4 68.6 Total insurance segment goodwill and other intangibles $ 189.2 $ 74.8 $ 114.4 $ 191.0 $ 73.4 $ 117.6 Reinsurance Segment (2) $ 8.8 $ — $ 8.8 $ 8.8 $ — $ 8.8 Reinsurance Segment - Intangible assets: Value of business in-force 291.4 291.4 — 291.4 291.4 — Loss and LAE reserves (98.8 ) (85.7 ) (13.1 ) (98.8 ) (82.6 ) (16.2 ) State and foreign insurance licenses 19.0 — 19.0 19.0 — 19.0 Trade name 50.0 — 50.0 50.0 — 50.0 Renewal rights 53.0 30.7 22.3 51.5 26.0 25.5 Leases (25.8 ) (21.6 ) (4.2 ) (28.1 ) (19.5 ) (8.6 ) Other 15.1 10.9 4.2 14.6 10.0 4.6 Total reinsurance segment intangibles 303.9 225.7 78.2 299.6 225.3 74.3 Total reinsurance segment goodwill and other intangibles $ 312.7 $ 225.7 $ 87.0 $ 308.4 $ 225.3 $ 83.1 Alleghany Capital (2)(3) $ 465.2 $ — $ 465.2 $ 397.3 $ — $ 397.3 Alleghany Capital (3) Trade name 171.8 0.6 171.2 176.9 0.1 176.8 License agreements 152.1 32.6 119.5 68.2 22.6 45.6 Customer relationships 296.4 47.5 248.9 215.1 27.7 187.4 Other 25.8 23.0 2.8 21.2 20.8 0.4 Total Alleghany Capital intangibles 646.1 103.7 542.4 481.4 71.2 410.2 Total Alleghany Capital goodwill and other intangibles $ 1,111.3 $ 103.7 $ 1,007.6 $ 878.7 $ 71.2 $ 807.5 Alleghany consolidated: Goodwill $ 523.0 $ — $ 523.0 $ 455.1 $ — $ 455.1 Intangible assets 1,090.2 404.2 686.0 923.0 369.9 553.1 Goodwill and other intangibles assets $ 1,613.2 $ 404.2 $ 1,209.0 $ 1,378.1 $ 369.9 $ 1,008.2 (1) Goodwill and intangible assets have been reduced by amounts written-down in prior periods, as applicable. (2) See Note 13 for additional information on Alleghany’s segments of business. (3) Represents goodwill and other intangible assets related to the acquisition of: (i) Jazwares on April 15, 2016 and its subsequent acquisitions; (ii) W&W|AFCO Steel on April 28, 2017 and its subsequent acquisition; (iii) Concord on October 1, 2018; (iv) PCT on April 26, 2012 and its subsequent acquisitions; (v) IPS on October 31, 2015 and its subsequent acquisition; and (vi) Kentucky Trailer on August 30, 2013 and its subsequent acquisitions. Balances as of December 31, 2019 also reflect the finalization of provisional estimates that existed as of December 31, 2018. In most instances, trade names and state and foreign insurance licenses have an indefinite useful life. The economic useful lives of significant intangible assets in the reinsurance and insurance segments are as follows: agency relationships — 15 years; brokerage and reinsurance relationships — 15 years; renewal rights — between 3 and 14 years; loss and LAE reserves — 15 years; a nd leases — 10 years . The economic useful life of license agreements is 8 years and of customer relationships is between 5 and 10 years . |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 3. Fair Value of Financial Instruments The following table presents the carrying value and estimated fair value of Alleghany’s consolidated financial instruments as of December 31, 2019 and 2018: December 31, 2019 December 31, 2018 Carrying Value Fair Value Carrying Value Fair Value ($ in millions) Assets Investments (excluding equity method investments and loans) (1) $ 17,632.3 $ 17,632.3 $ 16,291.3 $ 16,291.3 Liabilities Senior Notes and other debt (2) $ 1,751.1 $ 1,962.7 $ 1,669.0 $ 1,795.5 (1) This table includes debt and equity securities, as well as partnership and non-marketable equity investments carried at fair value that are included in other invested assets. This table excludes investments accounted for using the equity method and commercial mortgage loans that are carried at unpaid principal balance. The fair value of short-term investments approximates amortized cost. The fair value of all other categories of investments is discussed below. (2) See Note 8 for additional information on the Senior Notes and other debt. The following tables present Alleghany’s financial instruments measured at fair value and the level of the fair value hierarchy of inputs used as of December 31, 2019 and 2018: Level 1 Level 2 Level 3 Total ($ in millions) As of December 31, 2019 Equity securities: Common stock $ 2,498.1 $ 3.3 $ — $ 2,501.4 Preferred stock — 2.1 2.0 4.1 Total equity securities 2,498.1 5.4 2.0 2,505.5 Debt securities: U.S. Government obligations — 1,215.0 — 1,215.0 Municipal bonds — 2,307.9 — 2,307.9 Foreign government obligations — 690.7 — 690.7 U.S. corporate bonds — 2,754.0 605.0 3,359.0 Foreign corporate bonds — 1,208.7 168.7 1,377.4 Mortgage and asset-backed securities: RMBS (1) — 1,838.5 1.9 1,840.4 CMBS — 865.9 5.8 871.7 Other asset-backed securities (2) — 1,692.9 856.7 2,549.6 Total debt securities — 12,573.6 1,638.1 14,211.7 Short-term investments — 914.8 — 914.8 Other invested assets (3) — — 0.3 0.3 Total investments (excluding equity method investments and loans) $ 2,498.1 $ 13,493.8 $ 1,640.4 $ 17,632.3 Senior Notes and other debt $ — $ 1,595.6 $ 367.1 $ 1,962.7 Level 1 Level 2 Level 3 Total ($ in millions) As of December 31, 2018 Equity securities: Common stock $ 3,563.9 $ 3.5 $ — $ 3,567.4 Preferred stock — — 5.4 5.4 Total equity securities 3,563.9 3.5 5.4 3,572.8 Debt securities: U.S. Government obligations — 1,022.4 — 1,022.4 Municipal bonds — 2,214.7 — 2,214.7 Foreign government obligations — 947.9 — 947.9 U.S. corporate bonds — 1,959.6 425.7 2,385.3 Foreign corporate bonds — 1,226.4 126.9 1,353.3 Mortgage and asset-backed securities: RMBS (1) — 1,387.9 — 1,387.9 CMBS — 533.3 — 533.3 Other asset-backed securities (2) — 712.3 1,266.9 1,979.2 Total debt securities — 10,004.5 1,819.5 11,824.0 Short-term investments — 893.8 — 893.8 Other invested assets (3) — — 0.7 0.7 Total investments (excluding equity method investments and loans) $ 3,563.9 $ 10,901.8 $ 1,825.6 $ 16,291.3 Senior Notes and other debt $ — $ 1,510.5 $ 285.0 $ 1,795.5 (1) Primarily includes government agency pass-through securities guaranteed by a government agency or government sponsored enterprise, among other types of RMBS. (2) Includes $834.2 million and $1,266.9 million of collateralized loan obligations as of December 31, 2019 and 2018, respectively. (3) Includes partnership and non-marketable equity investments accounted for at fair value and excludes investments accounted for using the equity method. In 2019, Alleghany transferred into Level 3 $21.8 million of financial instruments, principally due to a decrease in observable inputs related to the valuation of such assets. Specifically, during 2019, there was an increase in the weight given to non-binding broker quotes and, as a result, there was a corresponding decrease in quoted prices for similar assets in active markets. Of the $21.8 million of transfers, $14.7 million related to foreign corporate bonds, with the remainder related to other types of debt securities. In 2019, Alleghany transferred out of Level 3 $25.4 million of financial instruments, principally due to an increase in observable inputs related to the valuation of such assets. Specifically, during 2019, there was a decrease in the weight given to non-binding broker quotes and, as a result, there was a corresponding increase in quoted prices for similar assets in active markets. Of the $25.4 million of transfers, $18.9 million related to other asset-backed securities, with the remainder related to other types of debt securities. There were no other material transfers between Levels 1, 2 or 3 in 2019. As further described in Note 4(i), on March 15, 2018, most of AIHL’s limited partnership interests in certain subsidiaries of Ares Management LLC (“Ares”) were converted into Ares common units. As a result of the conversion, as of March 15, 2018, $208.2 million of Ares common units, classified as equity securities, was transferred into Level 1, and $58.7 million of Ares limited partnership interests, classified as other invested assets, was transferred into Level 3. On September 24, 2018, AIHL’s remaining $56.9 million of Ares limited partnership interests was converted into Ares common units and, as a result, was transferred out of Level 3 and into Level 1. In addition to the $58.7 million of Ares-related other invested assets transferred into Level 3, in 2018, Alleghany transferred into Level 3 $6.3 million of financial instruments, principally due to a decrease in observable inputs related to the valuation of such assets and, specifically, a decrease in non-binding broker quotes. Of the $6.3 million of transfers, $4.3 million related to preferred stock, $1.9 million related to corporate bonds and $0.1 million related to other invested assets. Other than the $56.9 million of Ares-related other invested assets transferred out of Level 3, in 2018, Alleghany transferred out of Level 3 $164.7 million of financial instruments, principally due to an increase in observable inputs related to the valuation of such assets. Specifically, during 2018, there was a decrease in the weight given to non-binding broker quotes, and as a result, there was a corresponding increase in quoted prices for similar assets in active markets. Of the $164.7 million of transfers, $150.6 million related to RMBS, $11.0 million related to other asset-backed securities and $3.1 million related to several other types of securities. There were no other material transfers between Levels 1, 2 or 3 in 2018. The following tables present reconciliations of the changes during 2019 and 2018 in Level 3 assets measured at fair value: Debt Securities Mortgage and asset - backed Year Ended December 31, 2019 Preferred Stock U.S. Corporate Bonds Foreign Corporate Bonds RMBS CMBS Other Asset- backed Securities Other Invested Assets (1) Total ($ in millions) Balance as of January 1, 2019 $ 5.4 $ 425.7 $ 126.9 $ — $ — $ 1,266.9 $ 0.7 $ 1,825.6 Net realized/unrealized gains (losses) included in: Net earnings (2) (1.7 ) (6.5 ) (5.9 ) — — (1.1 ) (0.1 ) (15.3 ) Other comprehensive income (loss) — 39.4 7.5 0.1 — 16.7 (0.3 ) 63.4 Purchases 0.3 184.8 42.7 1.8 6.0 82.3 0.1 318.0 Sales — — (5.6 ) — — (378.3 ) (0.1 ) (384.0 ) Issuances — — — — — — — — Settlements — (37.0 ) (10.0 ) — — (116.7 ) — (163.7 ) Transfers into Level 3 — 1.3 14.7 — — 5.8 — 21.8 Transfers out of Level 3 (2.0 ) (2.7 ) (1.6 ) — (0.2 ) (18.9 ) — (25.4 ) Balance as of December 31, 2019 $ 2.0 $ 605.0 $ 168.7 $ 1.9 $ 5.8 $ 856.7 $ 0.3 $ 1,640.4 Debt Securities Mortgage and asset-backed Year Ended December 31, 2018 Preferred Stock U.S. Corporate Bonds Foreign Corporate Bonds RMBS CMBS Other Asset- backed Securities Other Invested Assets (1) Total ($ in millions) Balance as of January 1, 2018 $ 1.9 $ 260.0 $ 75.2 $ 161.8 $ 1.6 $ 1,101.3 $ 7.5 $ 1,609.3 Net realized/unrealized gains (losses) included in: Net earnings (2) — (0.9 ) (0.1 ) (0.3 ) — 1.6 1.2 1.5 Other comprehensive income (loss) (2.7 ) (11.5 ) (2.9 ) (5.3 ) — (42.3 ) (4.2 ) (68.9 ) Purchases 2.0 182.3 58.9 — — 846.3 — 1,089.5 Sales (0.1 ) — — — — (65.0 ) (5.7 ) (70.8 ) Issuances — — — — — — — — Settlements — (4.8 ) (4.0 ) (5.6 ) — (564.0 ) — (578.4 ) Transfers into Level 3 4.3 1.9 — — — — 58.8 65.0 Transfers out of Level 3 — (1.3 ) (0.2 ) (150.6 ) (1.6 ) (11.0 ) (56.9 ) (221.6 ) Balance as of December 31, 2018 $ 5.4 $ 425.7 $ 126.9 $ — $ — $ 1,266.9 $ 0.7 $ 1,825.6 (1) Includes partnership and non-marketable equity investments accounted for at fair value. (2) There were no OTTI losses recorded in net earnings related to Level 3 instruments still held as of December 31, 2019 and 2018. Net unrealized losses related to Level 3 assets as of December 31, 2019 and 2018 were not material. The increase in Senior Notes and other debt included in Level 3 for 2019 primarily reflects increased borrowings at Jazwares to fund its acquisition of WCT and, to a lesser extent, increased borrowings at Kentucky Trailer, IPS and PCT to fund acquisitions and support working capital needs. See Note 1(c) for Alleghany’s accounting policy on fair value. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2019 | |
Investments [Abstract] | |
Investments | 4. Investments (a) Unrealized Gains and Losses The following tables present the amortized cost or cost and the fair value of AFS securities as of December 31, 2019 and 2018: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value ($ in millions) As of December 31, 2019 Debt securities: U.S. Government obligations $ 1,198.5 $ 19.3 $ (2.8 ) $ 1,215.0 Municipal bonds 2,190.5 118.7 (1.3 ) 2,307.9 Foreign government obligations 675.9 16.4 (1.6 ) 690.7 U.S. corporate bonds 3,206.2 155.1 (2.3 ) 3,359.0 Foreign corporate bonds 1,348.1 32.2 (2.9 ) 1,377.4 Mortgage and asset-backed securities: RMBS 1,785.1 56.1 (0.8 ) 1,840.4 CMBS 849.9 23.2 (1.4 ) 871.7 Other asset-backed securities (1) 2,544.5 24.8 (19.7 ) 2,549.6 Total debt securities 13,798.7 445.8 (32.8 ) 14,211.7 Short-term investments 914.8 — — 914.8 Total investments $ 14,713.5 $ 445.8 $ (32.8 ) $ 15,126.5 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value ($ in millions) As of December 31, 2018 Debt securities: U.S. Government obligations $ 1,042.4 $ 2.4 $ (22.4 ) $ 1,022.4 Municipal bonds 2,177.5 44.4 (7.2 ) 2,214.7 Foreign government obligations 939.0 12.3 (3.4 ) 947.9 U.S. corporate bonds 2,431.4 13.2 (59.3 ) 2,385.3 Foreign corporate bonds 1,363.0 9.1 (18.8 ) 1,353.3 Mortgage and asset-backed securities: RMBS 1,392.4 10.3 (14.8 ) 1,387.9 CMBS 536.9 2.8 (6.4 ) 533.3 Other asset-backed securities (1) 2,013.3 4.4 (38.5 ) 1,979.2 Total debt securities 11,895.9 98.9 (170.8 ) 11,824.0 Short-term investments 893.8 — — 893.8 Total investments $ 12,789.7 $ 98.9 $ (170.8 ) $ 12,717.8 (1) Includes $834.2 million and $1,266.9 million of collateralized loan obligations as of December 31, 2019 and 2018, respectively. (b) Contractual Maturity The following table presents the amortized cost or cost and estimated fair value of debt securities by contractual maturity as of December 31, 2019. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Cost Fair Value ($ in millions) As of December 31, 2019 Short-term investments due in one year or less $ 914.8 $ 914.8 Mortgage and asset-backed securities (1) 5,179.5 5,261.7 Debt securities with maturity dates: One year or less 597.2 598.9 Over one through five years 3,416.0 3,489.9 Over five through ten years 2,592.4 2,705.1 Over ten years 2,013.6 2,156.1 Total debt securities $ 13,798.7 $ 14,211.7 (1) Mortgage and asset-backed securities by their nature do not generally have single maturity dates. (c) Net Investment Income The following table presents net investment income for 2019, 2018 and 2017: Year Ended December 31, 2019 2018 2017 ($ in millions) Interest income $ 499.5 $ 420.8 $ 412.1 Dividend income 37.9 78.5 47.4 Investment expenses (28.9 ) (31.5 ) (28.1 ) Pillar Investments (1) 15.0 (6.5 ) (1.7 ) Limited partnership interests in certain subsidiaries of Ares (1) — 20.2 3.3 Other investment results 26.7 19.0 18.0 Total $ 550.2 $ 500.5 $ 451.0 (1) See Note 4(i) for discussion of the Pillar Investments, as defined therein, and limited partnership interests in certain subsidiaries of Ares. As of December 31, 2019, non-income producing invested assets were insignificant. (d) Change in the Fair Value of Equity Securities In the first quarter of 2018, Alleghany adopted new investment accounting guidance, which requires changes in the fair value of equity securities, except those accounted for under the equity method, to be recognized in net earnings. In earlier periods, equity securities were considered to be AFS and were included in the analysis of OTTI. See Note 1(r) for additional information regarding Alleghany’s adoption of this new guidance. The following table presents increases (decreases) in the fair value of equity securities for 2019 and 2018: Year Ended December 31, 2019 2018 ($ in millions) Change in the fair value of equity securities sold during the period $ 59.1 $ (175.6 ) Change in the fair value of equity securities held at the end of the period 650.6 (53.4 ) Change in the fair value of equity securities $ 709.7 $ (229.0 ) (e) Realized Gains and Losses The proceeds from sales of debt and equity securities were $5.9 billion, $5.3 billion and $8.3 billion for 2019, 2018 and 2017, respectively. On July 18, 2019, AIHL purchased an exchange-traded equity derivative index put option (the “Put Option”) for $38.4 million to hedge the downside equity market risk on approximately $1.0 billion of Alleghany’s equity portfolio. The Put Option did not qualify for hedge accounting. The Put Option expired worthless on December 31, 2019, and the resulting $38.4 million decline in value of the Put Option was recorded as a reduction to net realized capital gains. Net realized capital losses in 2019 primarily reflect the $38.4 million decline in value of the Put Option and a $13.6 million loss from the December 2019 sale of a privately held investment accounted for under the equity method, partially offset by net realized capital gains from the sale of debt securities. Net realized capital losses in 2018 primarily reflect a $35.4 million capital loss due to an impairment charge from the write-down of certain SORC assets in 2018 arising from a decline in energy prices as of December 31, 2018, as well as losses on the sale of debt securities, partially offset by a $45.7 million gain on AIHL’s conversion of its limited partnership interests in certain subsidiaries of Ares into Ares common units in 2018. See Note 4(i) for additional information on this conversion. Net realized capital gains in 2017 primarily reflect sales of certain exchange-traded funds, sales of certain equity securities resulting from a partial restructuring of the equity portfolio, an $8.4 million pre-tax gain realized on the sale of PacificComp on December 31, 2017 and a $20.9 million realized gain on a bulk settlement of certain contingent consideration liabilities by Alleghany Capital, partially offset by a $4.8 million loss realized on the from the sale of a SORC legacy oil field on December 29, 2017 and a $7.9 million write-down of certain reinsurance segment assets. The following table presents the amounts of gross realized capital gains and gross realized capital losses for 2019, 2018 and 2017: Year Ended December 31, 2019 2018 2017 ($ in millions) Gross realized capital gains $ 62.4 $ 86.9 $ 236.7 Gross realized capital losses (68.9 ) (90.1 ) (129.5 ) Net realized capital gains $ (6.5 ) $ (3.2 ) $ 107.2 Gross realized loss amounts exclude OTTI losses, as discussed below. (f) OTTI losses Alleghany holds its debt securities as AFS and, as such, these securities are recorded at fair value. Alleghany continually monitors the difference between amortized cost and the estimated fair value of its debt investments, which involves uncertainty as to whether declines in value are temporary in nature. The analysis of a security’s decline in value is performed in its functional currency. If the decline is deemed temporary, Alleghany records the decline as an unrealized loss in stockholders’ equity. If the decline is deemed to be other than temporary, Alleghany writes its amortized cost basis down to the fair value of the security and records an OTTI loss on its statement of earnings. In addition, any portion of such decline related to a debt security that is believed to arise from factors other than credit is recorded as a component of other comprehensive income rather than charged against earnings. Debt securities in an unrealized loss position are evaluated for OTTI if they meet any of the following criteria: (i) they are trading at a discount of at least 20 percent to amortized cost for an extended period of time (nine consecutive months or more); (ii) there has been a negative credit or news event with respect to the issuer that could indicate the existence of an OTTI; or (iii) Alleghany intends to sell, or it is more likely than not that Alleghany will sell, the debt security before recovery of its amortized cost basis. If Alleghany intends to sell, or it is more likely than not that Alleghany will sell, a debt security before recovery of its amortized cost basis, the total amount of the unrealized loss position is recognized as an OTTI loss in earnings. To the extent that a debt security that is in an unrealized loss position is not impaired based on the preceding, Alleghany will consider a debt security to be impaired when it believes it to be probable that Alleghany will not be able to collect the entire amortized cost basis. For debt securities in an unrealized loss position as of the end of each quarter, Alleghany develops a best estimate of the present value of expected cash flows. If the results of the cash flow analysis indicate that Alleghany will not recover the full amount of its amortized cost basis in the debt security, Alleghany records an OTTI loss in earnings equal to the difference between the present value of expected cash flows and the amortized cost basis of the debt security. If applicable, the difference between the total unrealized loss position on the debt security and the OTTI loss recognized in earnings is the non-credit related portion, which is recorded as a component of other comprehensive income. In developing the cash flow analyses for debt securities, Alleghany considers various factors for the different categories of debt securities. For municipal bonds, Alleghany takes into account the taxing power of the issuer, source of revenue, credit risk and enhancements and pre-refunding. For mortgage and asset-backed securities, Alleghany discounts its best estimate of future cash flows at an effective rate equal to the original effective yield of the security or, in the case of floating rate securities, at the current coupon. Alleghany’s models include assumptions about prepayment speeds, default and delinquency rates, underlying collateral (if any), credit ratings, credit enhancements and other observable market data. For corporate bonds, Alleghany reviews business prospects, credit ratings and available information from asset managers and rating agencies for individual securities. OTTI losses in 2019 reflect $19.7 million of unrealized losses on debt securities, primarily related to the energy sector, that were deemed to be other than temporary and, as such, were required to be charged against earnings. The determination that unrealized losses on these debt securities were other than temporary was primarily due to the deterioration of creditworthiness of the issuers in the domestic energy sector. OTTI losses in 2018 reflect $1.3 million of unrealized losses on debt securities, primarily in the energy and industrial sectors, that were deemed to be other than temporary and, as such, were required to be charged against earnings. The determination that unrealized losses on debt securities were other than temporary was primarily due to the deterioration of creditworthiness of the issuer. OTTI losses in 2017 reflect $16.9 million of unrealized losses that were deemed to be other than temporary and, as such, were required to be charged against earnings. Of the $16.9 million of OTTI losses, $15.1 million related to equity securities, primarily in the retail sector, and $1.8 million related to debt securities. The determination that unrealized losses on equity and debt securities were other than temporary was primarily due to the duration of the decline in the fair value of equity and debt securities relative to their costs. Upon the ultimate disposition of the securities for which OTTI losses have been recorded, a portion of the loss may be recoverable depending on market conditions at the time of disposition. After adjusting the amortized cost basis of securities for the recognition of OTTI losses, the remaining gross unrealized investment losses for debt securities as of December 31, 2019 were deemed to be temporary, based on, among other factors: (i) the duration of time and the relative magnitude to which the fair value of these investments had been below cost were not indicative of an OTTI loss; (ii) the absence of compelling evidence that would cause Alleghany to call into question the financial condition or near-term business prospects of the issuer of the security; and (iii) Alleghany’s ability and intent to hold the security for a period of time sufficient to allow for any anticipated recovery. Alleghany may ultimately record a realized loss after having originally concluded that the decline in value was temporary. Risks and uncertainties are inherent in the methodology. Alleghany’s methodology for assessing other than temporary declines in value contains inherent risks and uncertainties which could include, but are not limited to, incorrect assumptions about financial condition, liquidity or future prospects, inadequacy of any underlying collateral and unfavorable changes in economic conditions or social trends, interest rates or credit ratings. (g) Aging of Gross Unrealized Losses The following tables present gross unrealized losses and related fair values for Alleghany’s AFS securities, grouped by duration of time in a continuous unrealized loss position, as of December 31, 2019 and 2018: Less Than 12 Months 12 Months or More Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses ($ in millions) As of December 31, 2019 Debt securities: U.S. Government obligations $ 120.3 $ 2.0 $ 99.7 $ 0.8 $ 220.0 $ 2.8 Municipal bonds 90.2 1.3 4.3 — 94.5 1.3 Foreign government obligations 198.5 1.2 33.8 0.4 232.3 1.6 U.S. corporate bonds 113.8 1.6 27.6 0.7 141.4 2.3 Foreign corporate bonds 212.0 2.3 66.9 0.6 278.9 2.9 Mortgage and asset-backed securities: RMBS 48.7 0.3 48.6 0.5 97.3 0.8 CMBS 126.8 1.4 1.2 — 128.0 1.4 Other asset-backed securities 422.9 2.7 715.9 17.0 1,138.8 19.7 Total temporarily impaired securities $ 1,333.2 $ 12.8 $ 998.0 $ 20.0 $ 2,331.2 $ 32.8 Less Than 12 Months 12 Months or More Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses ($ in millions) As of December 31, 2018 Debt securities: U.S. Government obligations $ 78.5 $ 0.9 $ 690.5 $ 21.5 $ 769.0 $ 22.4 Municipal bonds 312.4 2.5 202.5 4.7 514.9 7.2 Foreign government obligations 60.7 0.1 186.7 3.3 247.4 3.4 U.S. corporate bonds 1,187.9 39.4 379.7 19.9 1,567.6 59.3 Foreign corporate bonds 501.5 9.7 349.1 9.1 850.6 18.8 Mortgage and asset-backed securities: RMBS 397.7 6.4 225.9 8.4 623.6 14.8 CMBS 199.1 1.3 109.5 5.1 308.6 6.4 Other asset-backed securities 1,442.8 36.7 121.6 1.8 1,564.4 38.5 Total temporarily impaired securities $ 4,180.6 $ 97.0 $ 2,265.5 $ 73.8 $ 6,446.1 $ 170.8 As of December 31, 2019, Alleghany held a total of 860 debt securities that were in an unrealized loss position, of which 280 securities were in an unrealized loss position continuously for 12 months or more. The unrealized losses associated with these debt securities consisted of losses related primarily to other asset-backed securities, U.S. corporate bonds, U.S. Government obligations and RMBS. As of December 31, 2019, the vast majority of Alleghany’s debt securities were rated investment grade, with 3.6 percent of debt securities having issuer credit ratings that were below investment grade or not rated, compared with 4.4 percent as of December 31, 2018. (h) Statutory Deposits Investments with fair values of approximately $2.3 billion as of December 31, 2019, the substantial majority of which were debt securities and equity securities, were deposited with governmental authorities as required by law. (i) Investments in Certain Other Invested Assets In December 2012, TransRe obtained an ownership interest in Pillar Capital Holdings Limited (“Pillar Holdings”), a Bermuda- based insurance asset manager focused on collateralized reinsurance and catastrophe insurance-linked securities. Additionally, TransRe invested $175.0 million and AIHL invested $25.0 million in limited partnership funds managed by Pillar Holdings (the “Funds”). The objective of the Funds is to create portfolios with attractive risk-reward characteristics and low correlation with other asset classes, using the extensive reinsurance and capital market experience of the principals of Pillar Holdings. Alleghany has concluded that both Pillar Holdings and the Funds (collectively, the “Pillar Investments”) represent variable interest entities and that Alleghany is not the primary beneficiary, as it does not have the ability to direct the activities that most significantly impact each entity’s economic performance. Therefore, the Pillar Investments are not consolidated and are accounted for under the equity method of accounting. Alleghany’s potential maximum loss in the Pillar Investments is limited to its cumulative net investment. As of December 31, 2019, Alleghany’s carrying value in the Pillar Investments, as determined under the equity method of accounting, was $205.5 million, which is net of returns of capital received from the Pillar Investments. In July 2013, AIHL invested $250.0 million in Ares, an asset manager, in exchange for a 6.25 percent equity stake in Ares, with an agreement to engage Ares to manage up to $1.0 billion in certain investment strategies. In May 2014, Ares completed an initial public offering of its common units. Upon completion of the initial public offering, Alleghany’s equity investment in Ares converted into limited partnership interests in certain Ares subsidiaries that were convertible into Ares common units. On March 15, 2018, most of AIHL’s limited partnership interests were converted into Ares common units. As a result of the conversion and with respect to the limited partnership interests that were converted into Ares common units, AIHL: (i) reclassified its converted interests from other invested assets to equity securities; (ii) increased its carrying value to $208.2 million to reflect the fair value of Ares common units; and (iii) recorded the $45.7 million increase in carrying value as a realized capital gain as of March 15, 2018. As a result of the conversion and with respect to the unconverted limited partnership interests, AIHL: (i) changed its accounting method from the equity method to fair value; (ii) increased its carrying value to $58.7 million to reflect the fair value of Ares limited partnership interests; and (iii) recorded the $12.9 million increase in carrying value as a component of net investment income as of March 15, 2018. On September 24, 2018, AIHL’s remaining Ares limited partnership interests were converted into Ares common units and, as a result, AIHL reclassified the remaining $56.9 million of its converted interests from other invested assets to equity securities. In the second quarter of 2019, AIHL sold all of its remaining holdings of Ares common units. (j) Investments in Commercial Mortgage Loans As of December 31, 2019, the carrying value of Alleghany’s commercial mortgage loan portfolio was $686.2 million, representing the unpaid principal balance on the loans. As of December 31, 2019, there was no allowance for loan losses. The commercial mortgage loan portfolio consists primarily of first mortgages on commercial properties in major metropolitan areas in the U.S. The loans earn interest at fixed- and floating-rates, mature in two to ten years from loan origination and the principal amounts of the loans were no more than approximately two-thirds of the property’s appraised value at the time the loans were made. The estimated fair value of the commercial mortgage loan portfolio approximated carrying value as of December 31, 2019 and 2018. |
Reinsurance Ceded
Reinsurance Ceded | 12 Months Ended |
Dec. 31, 2019 | |
Insurance [Abstract] | |
Reinsurance Ceded | 5 . (a) Overview Alleghany’s reinsurance and insurance subsidiaries reinsure portions of the risks they underwrite in order to reduce the effect of individual or aggregate exposure to losses, manage capacity, protect capital resources, reduce volatility in specific lines of business, improve risk-adjusted portfolio returns and enable them to increase gross premium writings and risk capacity without requiring additional capital. Alleghany’s reinsurance and insurance subsidiaries generally purchase reinsurance and retrocessional coverages from highly-rated, third-party reinsurers. If the assuming reinsurers are unable or unwilling to meet the obligations assumed under the applicable reinsurance agreements, Alleghany’s reinsurance and insurance subsidiaries would remain liable for such reinsurance portion not paid by these reinsurers. As such, funds, trust agreements and letters of credit are held to collateralize a portion of Alleghany’s reinsurance recoverables and Alleghany’s reinsurance and insurance subsidiaries reinsure portions of the risks they underwrite or assume with multiple reinsurance programs. (b) Reinsurance Recoverables Amounts recoverable from reinsurers are recognized in a manner consistent with the claims liabilities associated with the reinsurance placement and presented on the balance sheet as reinsurance recoverables. Such balances as of December 31, 2019 and 2018 are presented in the table below: As of December 31, 2019 2018 ($ in millions) Reinsurance recoverables on paid losses $ 98.1 $ 63.9 Ceded outstanding loss and LAE 1,583.9 1,857.4 Total $ 1,682.0 $ 1,921.3 The following table presents information regarding concentration of Alleghany’s reinsurance recoverables and the ratings profile of its reinsurers as of December 31, 2019: Reinsurer (1) Rating (2) Amount Percentage ($ in millions) Syndicates at Lloyd's of London A (Excellent) $ 134.7 8.0 % Kane SAC Ltd, Rondout Segregated Account (3) not rated 134.6 8.0 % PartnerRe Ltd A (Excellent) 95.1 5.7 % Swiss Reinsurance Company A+ (Superior) 91.7 5.5 % Fairfax Financial Holdings Ltd A (Excellent) 89.6 5.3 % Kane SAC Ltd, Bowery Segregated Account (3) not rated 86.4 5.1 % Third Point Reinsurance Group A- (Excellent) 81.1 4.8 % RenaissanceRe Holdings Ltd A+ (Superior) 79.8 4.8 % W.R. Berkley Corporation A+ (Superior) 68.4 4.1 % Liberty Mutual A (Excellent) 60.7 3.6 % All other reinsurers 759.9 45.1 % Total reinsurance recoverables (4) $ 1,682.0 100.0 % Secured reinsurance recoverables (3) $ 680.5 40.5 % (1) Reinsurance recoverables reflect amounts due from one or more reinsurance subsidiaries of the listed company. (2) Represents the A.M. Best Company, Inc. financial strength rating for the applicable reinsurance subsidiary or subsidiaries from which the reinsurance recoverable is due. (3) Represents reinsurance recoverables secured by funds held, trust agreements or letters of credit. (4) Approximately 66 percent of Alleghany’s reinsurance recoverables balance as of December 31, 2019 was due from reinsurers having an A.M. Best Company, Inc. financial strength rating of A (Excellent) or higher, with a majority of the other reinsurance recoverables being secured by funds held, trust agreements or letters of credit. Alleghany had no allowance for uncollectible reinsurance as of December 31, 201 9 and 201 8 . Reinsured loss and LAE ceded included in Alleghany’s consolidated statements of earnings were $407.7 million, $628.2 million and $777.4 million for 2019, 2018 and 2017, respectively. (c) Premiums Written and Earned The following table presents property and casualty premiums written and earned for 2019, 2018 and 2017: Year Ended December 31, 2019 2018 2017 ($ in millions) Gross premiums written – direct $ 1,800.3 $ 1,537.8 $ 1,528.7 Gross premiums written – assumed 4,856.1 4,357.8 4,168.2 Ceded premiums written (904.7 ) (847.2 ) (731.0 ) Net premiums written $ 5,751.7 $ 5,048.4 $ 4,965.9 Gross premiums earned – direct $ 2,114.1 $ 1,935.3 $ 1,932.0 Gross premiums earned – assumed 4,268.8 3,881.4 3,790.3 Ceded premiums earned (904.8 ) (840.5 ) (767.3 ) Net premiums earned $ 5,478.1 $ 4,976.2 $ 4,955.0 (d) Significant Reinsurance Contracts Alleghany’s reinsurance and insurance subsidiaries reinsure portions of the risks they underwrite or assume with multiple reinsurance programs. A summary of the more significant programs follows. TransRe enters into various retrocession arrangements, including property catastrophe retrocession contracts, to manage the effects of individual or aggregate exposure to losses, reduce volatility in specific lines of business, improve risk-adjusted portfolio returns, strengthen its market position and enhance capital efficiency. These include excess-of-loss and quota share treaties in traditional rated form as well as catastrophe bonds and other collateralized insurance-linked structures. TransRe’s retrocession protections generally have a one-year term and renewal dates occur throughout the year, with the majority renewing at January 1 and June 1. The catastrophe bonds, however, have a four-year term, with maturities in 2022 and 2023. RSUI reinsures its property lines of business through a program consisting of surplus share treaties, facultative placements, and per risk and catastrophe excess-of-loss treaties. RSUI’s catastrophe reinsurance program and property per risk reinsurance program each run on an annual basis from May 1 to the following April 30 and portions expired on April 30, 2019. Both programs were renewed on May 1, 2019 with substantially similar terms as the expired programs. (e) Significant Intercompany Reinsurance Contracts AIHL Re and CapSpecialty entered into an intercompany reinsurance contract, effective July 1, 2015, pursuant to which AIHL Re provides CapSpecialty with coverage primarily for adverse development on certain net loss and allocated LAE in excess of its carried reserves at June 30, 2015. AIHL Re’s commitments are intended to cover the statutory collateral requirements at CapSpecialty, if and when necessary, and AIHL Re’s obligations are subject to an aggregate limit of $50.0 million. In connection with such intercompany reinsurance agreement, Alleghany and AIHL Re entered into a contract whereby Alleghany will guarantee the recoverable balances owed to CapSpecialty from AIHL Re up to $50.0 million. The above agreements had no impact on Alleghany’s consolidated results of operations and financial condition. |
Liability for Loss and LAE
Liability for Loss and LAE | 12 Months Ended |
Dec. 31, 2019 | |
Insurance [Abstract] | |
Liability for Loss and LAE | 6. Liability for Loss and LAE (a) Liability Rollforward The following table presents the activity in the liability for loss and LAE in 2019, 2018 and 2017: Year Ended December 31, 2019 2018 2017 ($ in millions) Reserves as of January 1 $ 12,250.3 $ 11,871.3 $ 11,087.2 Less: reinsurance recoverables (1) 1,857.4 1,650.1 1,236.2 Net reserves as of January 1 10,392.9 10,221.2 9,851.0 Other adjustments (2.3 ) 0.9 (293.7 ) (2) Incurred loss and LAE, net of reinsurance, related to: Current year 3,871.1 3,849.4 3,918.8 Prior years (184.7 ) (329.0 ) (298.6 ) Total incurred loss and LAE, net of reinsurance 3,686.4 3,520.4 3,620.2 Paid loss and LAE, net of reinsurance, related to: (3) Current year 884.6 838.9 853.2 Prior years 2,839.9 2,419.0 2,225.2 Total paid loss and LAE, net of reinsurance 3,724.5 3,257.9 3,078.4 Foreign currency exchange rate effect (8.0 ) (91.7 ) 122.1 Net reserves as of December 31 10,344.5 10,392.9 10,221.2 Reinsurance recoverables as of December 31 (1) 1,583.9 1,857.4 1,650.1 Reserves as of December 31 $ 11,928.4 $ 12,250.3 $ 11,871.3 (1) Reinsurance recoverables in this table include only ceded loss and LAE reserves. (2) Primarily represents the impact on net reserves arising from the sale of PacificComp. (3) Includes paid loss and LAE, net of reinsurance, related to commutations. Gross loss and LAE reserves as of December 31, 2019 decreased from December 31, 2018, primarily reflecting payments on catastrophe losses incurred in 2017 and 2018 and favorable prior accident year loss reserve development, partially offset by the impact of growing net premiums earned and catastrophe losses incurred in 2019. The 2019 catastrophe losses, net of reinsurance, include $183.7 million related to Typhoon Hagibis, $95.4 million related to Typhoon Faxai, $22.3 million related to civil unrest in Chile and $13.6 million related to Hurricane Dorian. Gross loss and LAE reserves as of December 31, 2018 increased from December 31, 2017, primarily reflecting catastrophe losses in 2018, partially offset by payments on catastrophe losses incurred in 2017 and favorable prior accident year loss reserve development. The 2018 catastrophe losses, net of reinsurance, include $183.4 million related to Typhoon Jebi, $182.0 million related to wildfires in California, $135.2 million related to Hurricane Michael, $70.4 million related to Hurricane Florence and $33.7 million related to Typhoon Trami. (b) Liability Development The following table presents the (favorable) unfavorable prior accident year loss reserve development for 2019, 2018 and 2017: Year Ended December, 2019 2018 2017 ($ in millions) Reinsurance Segment Property: Catastrophe events $ (6.8 ) (1) $ (20.2 ) (2) $ (22.2 ) (3) Non-catastrophe (39.4 ) (4) (64.7 ) (5) (72.3 ) (6) Total (46.2 ) (84.9 ) (94.5 ) Casualty & other: Malpractice Treaties (7) (1.4 ) (3.4 ) (5.0 ) Ogden rate impact (8) — — 24.4 Other (148.2 ) (9) (177.8 ) (10) (174.4 ) (11) Total (149.6 ) (181.2 ) (155.0 ) Total Reinsurance Segment (195.8 ) (266.1 ) (249.5 ) Insurance Segment RSUI: Casualty (16.3 ) (12) (27.8 ) (13) (38.9 ) (14) Property and other (1.2 ) (15) (30.9 ) (16) (4.3 ) (17) Total (17.5 ) (58.7 ) (43.2 ) CapSpecialty: Ongoing lines of business 26.1 (18) (4.2 ) (19) (3.4 ) (20) Terminated Program (21) 3.0 — — Asbestos-related illness and environmental impairment liability (0.5 ) — — Total 28.6 (4.2 ) (3.4 ) PacificComp — — (2.5 ) (22) Total incurred related to prior years $ (184.7 ) $ (329.0 ) $ (298.6 ) (1) Primarily reflects favorable prior accident year loss reserve development related to wildfires in California in the 2018 accident year, partially offset by unfavorable prior accident year loss reserve development related to Typhoon Jebi in the 2018 accident year and Hurricane Irma in 2017 accident year. (2) Primarily reflects favorable prior accident year loss reserve development related to Hurricane Harvey in the 2017 accident year and catastrophes in the 2016 accident year, partially offset by unfavorable prior accident year loss reserve development related to Hurricanes Maria and Irma in the 2017 accident year. (3) Reflects favorable prior accident year loss reserve development related to several catastrophes primarily in the 2016 accident year. (4) Primarily reflects favorable prior accident year loss reserve development in the 2016 and 2017 accident years, partially offset by unfavorable prior accident year loss reserve development in the 2018 accident year. (5) Primarily reflects favorable prior accident year loss reserve development in the 2015 and 2016 accident years, partially offset by unfavorable prior accident year loss reserve development in the 2017 accident year. (6) Reflects favorable prior accident year loss reserve development primarily in the 2011 through 2016 accident years. (7) Represents certain medical malpractice treaties pursuant to which the increased underwriting profits created by the favorable prior accident year loss reserve development are largely retained by the cedants. As a result, the favorable prior accident year loss reserve development is largely offset by an increase in profit commission expense incurred when such favorable prior accident year loss reserve development occurs. (8) Represents unfavorable prior accident year loss reserve development related to the U.K. Ministry of Justice’s reduction in the discount rate used to calculate lump-sum bodily injury payouts in personal injury insurance claims in the U.K to negative 0.75 percent as of March 20, 2017 from 2.50 percent. (9) Primarily reflects favorable prior accident year loss reserve development in the longer-tailed casualty lines of business in the 2014 and prior accident years and, to a lesser extent, shorter-tailed lines of business in the 2014 and prior accident years, partially offset by unfavorable prior accident year loss reserve development in the marine and aviation lines of business in the 2018 accident year. (10) Primarily reflects favorable prior accident year loss reserve development in the longer-tailed casualty lines of business in the 2002 through 2010 accident years and in the shorter-tailed casualty lines of business (specifically, ocean marine, automobile liability and accident & health) in the 2017 accident year, partially offset by unfavorable prior accident year loss reserve development in the professional liability lines of business in the 2015 accident year. (11) Primarily reflects favorable prior accident year loss reserve development in: (i) longer-tailed professional liability and general liability lines of business in the 2003 through 2012 accident years; and (ii) shorter-tailed casualty lines of business in the 2010 through 2014 accident years; partially offset by unfavorable prior accident year loss reserve development in shorter-tailed casualty lines of business in the 2015 and 2016 accident years. (12) Primarily reflects favorable prior accident year loss reserve development in the directors’ and officers’ liability and umbrella/excess lines of business in the 2011 through 2015 accident years, partially offset by unfavorable prior accident year loss reserve development in the professional liability lines of business in the 2016 through 2018 accident years. (13) Primarily reflects favorable prior accident year loss reserve development in the umbrella/excess lines of business in the 2005 through 2012 accident years, partially offset by unfavorable prior accident year loss reserve development in the directors’ and officers’ liability lines of business in the 2009, 2012 and 2016 accident years. (14) Primarily reflects favorable prior accident year loss reserve development in the umbrella/excess lines of business in the 2005 through 2011 accident years. (15) Primarily reflects favorable prior accident year loss reserve development related to Superstorm Sandy in the 2012 accident year, Hurricanes Florence and Michael in the 2018 accident year and Hurricanes Harvey and Maria in the 2017 accident year, partially offset by assumed property reinsurance lines of business from both catastrophe and non-catastrophe losses in the 2018 accident year. (16) Primarily reflects favorable prior accident year loss reserve development related to Hurricane Irma in the 2017 accident year and, to a lesser extent, Hurricane Matthew in the 2016 accident year, as well as various other losses not classified as catastrophes in recent accident years. (17) Primarily reflects favorable prior accident year catastrophe loss reserve development in the 2016 accident year, partially offset by unfavorable prior accident year property loss reserve development in the binding authority lines of business primarily in the 2015 and 2016 accident years. (18) Primarily reflects unfavorable prior accident year loss reserves development related to the professional liability and other casualty lines of business in the 2015 through 2018 accident years. ( 19 ) Primarily reflects favorable prior accident year loss reserve development in the surety lines of business in the 2016 and 2017 accident years. (20 ) Primarily reflects favorable prior accident year loss reserve development in the casualty lines of business in the 2010, 2014, 2015 and 2016 accident years. (21 ) Represents certain specialty lines of business written through a program administrator in connection with a terminated program in the 2010 and 2009 accident years and reflects favorable loss emergence compared with loss emergence patterns assumed in earlier periods for such business. (22) Primarily reflects favorable prior accident year loss reserve development in the 2013 and prior accident years. (c) Information on Incurred and Paid Loss and LAE Development The following is information about incurred and paid loss and LAE development, net of reinsurance. The information for 2010 through 2018 is unaudited and is provided as supplementary information. Information is also included for the portion of unpaid loss and LAE, net of reinsurance recoverables, that relate to IBNR and, for the insurance segment, the cumulative number of reported insurance claims. For the reinsurance segment, reported insurance claim information is generally not received from the cedants, and such information is therefore impracticable to disclose. Reinsurance Segment Property Incurred Loss and LAE, Net of Reinsurance As of Year Ended December 31, December 31, 2019 Accident Year 2010 (unaudited) 2011 (unaudited) 2012 (unaudited) 2013 (unaudited) 2014 (unaudited) 2015 (unaudited) 2016 (unaudited) 2017 (unaudited) 2018 (unaudited) 2019 IBNR ($ in millions) 2010 $ 615.6 $ 527.1 $ 528.0 $ 540.4 $ 581.2 $ 606.0 $ 609.9 $ 613.0 $ 605.3 $ 601.3 $ 8.8 2011 1,351.2 1,342.3 1,269.4 1,240.7 1,235.2 1,217.1 1,210.9 1,209.6 1,207.7 0.8 2012 697.2 579.1 530.3 495.6 478.1 469.4 462.5 460.3 4.0 2013 501.2 470.6 444.6 422.1 406.8 403.6 398.1 2.4 2014 496.4 464.8 451.3 435.2 429.8 425.1 6.0 2015 368.8 332.0 320.6 306.3 301.9 3.6 2016 684.1 647.2 596.7 587.9 19.2 2017 1,174.6 1,179.5 1,148.3 30.2 2018 1,152.7 1,169.4 137.0 2019 988.7 355.4 Total Incurred Loss and LAE for the 2010 through 2019 accident years $ 7,288.7 Paid Loss and LAE, Net of Reinsurance Year Ended December 31, Accident Year 2010 (unaudited) 2011 (unaudited) 2012 (unaudited) 2013 (unaudited) 2014 (unaudited) 2015 (unaudited) 2016 (unaudited) 2017 (unaudited) 2018 (unaudited) 2019 ($ in millions) 2010 $ 169.3 $ 349.0 $ 418.9 $ 472.3 $ 513.5 $ 540.1 $ 563.7 $ 571.5 $ 575.1 $ 581.9 2011 407.8 796.4 1,014.3 1,129.2 1,171.0 1,187.2 1,195.0 1,199.7 1,195.3 2012 90.3 268.9 377.8 416.7 438.0 448.0 451.2 460.1 2013 113.1 277.4 361.0 389.8 396.7 399.7 401.4 2014 109.4 297.6 360.0 382.9 394.0 397.3 2015 96.0 217.7 278.3 303.1 307.6 2016 210.5 429.8 504.8 535.1 2017 324.5 818.5 977.9 2018 309.5 811.8 2019 265.1 Cumulative Paid Loss and LAE for the 2010 through 2019 accident years $ 5,933.5 Total incurred loss and LAE for the 2010 through 2019 accident years $ 7,288.7 Cumulative paid loss and LAE for the 2010 through 2019 accident years 5,933.5 Unpaid loss and LAE, net of reinsurance recoverables, for accident years prior to 2010 6.0 Unpaid loss and LAE, net of reinsurance recoverables, as of December 31, 2019 $ 1,361.2 Reinsurance Segment Casualty & other – Longer-Tailed Lines of Business (1) Incurred Loss and LAE, Net of Reinsurance As of Year Ended December 31, December 31, 2019 Accident Year 2010 (unaudited) 2011 (unaudited) 2012 (unaudited) 2013 (unaudited) 2014 (unaudited) 2015 (unaudited) 2016 (unaudited) 2017 (unaudited) 2018 (unaudited) 2019 IBNR ($ in millions) 2010 $ 1,098.6 $ 1,101.9 $ 1,090.7 $ 1,063.5 $ 1,015.5 $ 999.3 $ 977.6 $ 962.9 $ 959.7 $ 951.3 $ 102.0 2011 996.0 1,009.6 994.6 974.6 959.1 949.9 942.6 925.5 920.6 116.5 2012 877.5 877.5 875.9 860.8 833.1 829.8 832.4 826.4 121.3 2013 798.6 802.2 799.2 777.5 776.7 783.0 767.4 184.0 2014 801.8 791.1 794.3 793.9 790.3 784.8 205.2 2015 794.8 799.0 797.0 793.7 799.1 226.4 2016 776.7 776.8 787.4 807.8 268.0 2017 764.4 765.7 783.4 385.8 2018 727.3 741.6 510.4 2019 759.7 672.5 Total Incurred Loss and LAE for the 2010 through 2019 accident years $ 8,142.1 Paid Loss and LAE, Net of Reinsurance Year Ended December 31, Accident Year 2010 (unaudited) 2011 (unaudited) 2012 (unaudited) 2013 (unaudited) 2014 (unaudited) 2015 (unaudited) 2016 (unaudited) 2017 (unaudited) 2018 (unaudited) 2019 ($ in millions) 2010 $ 33.8 $ 108.4 $ 208.5 $ 322.3 $ 438.7 $ 573.9 $ 644.3 $ 688.9 $ 735.8 $ 770.2 2011 29.6 89.4 206.4 373.4 501.8 595.1 663.0 709.1 748.2 2012 46.9 106.8 201.1 316.6 435.7 521.3 587.0 624.4 2013 22.2 85.1 176.6 296.4 378.0 452.7 494.6 2014 29.8 107.5 229.6 342.9 444.7 522.7 2015 32.2 100.4 205.0 325.8 455.8 2016 34.8 121.8 242.9 370.0 2017 34.0 110.6 221.8 2018 33.0 104.6 2019 29.0 Cumulative Paid Loss and LAE for the 2010 through 2019 accident years $ 4,341.3 Total incurred loss and LAE for the 2010 through 2019 accident years $ 8,142.1 Cumulative paid loss and LAE for the 2010 through 2019 accident years 4,341.3 Unpaid loss and LAE, net of reinsurance recoverables, for accident years prior to 2010 776.5 Unpaid loss and LAE, net of reinsurance recoverables, as of December 31, 2019 $ 4,577.3 (1) Represents the following reinsurance lines of business: directors’ and officers’ liability; errors and omissions liability; general liability; and medical malpractice. Reinsurance Segment Casualty & other – Shorter-Tailed Lines of Business (1) Incurred Loss and LAE, Net of Reinsurance As of Year Ended December 31, December 31, 2019 Accident Year 2010 (unaudited) 2011 (unaudited) 2012 (unaudited) 2013 (unaudited) 2014 (unaudited) 2015 (unaudited) 2016 (unaudited) 2017 (unaudited) 2018 (unaudited) 2019 IBNR ($ in millions) 2010 $ 1,024.5 $ 1,007.0 $ 985.9 $ 978.3 $ 967.2 $ 954.0 $ 950.3 $ 943.4 $ 927.7 $ 924.2 $ 9.1 2011 1,031.2 1,023.6 1,007.6 992.8 973.0 963.7 959.8 976.0 972.9 15.9 2012 1,022.3 1,059.9 1,056.8 1,005.5 983.9 958.9 948.4 941.4 19.8 2013 850.8 868.8 838.4 823.4 804.1 790.3 780.7 28.8 2014 850.4 833.0 808.8 784.3 772.4 755.0 38.7 2015 763.4 768.6 784.0 798.4 776.7 46.1 2016 1,118.0 1,124.4 1,111.6 1,100.3 80.0 2017 1,095.9 1,046.3 1,026.9 169.7 2018 1,255.4 1,266.1 288.7 2019 1,408.6 689.4 Total Incurred Loss and LAE for the 2010 through 2019 accident years $ 9,952.8 Paid Loss and LAE, Net of Reinsurance Year Ended December 31, Accident Year 2010 (unaudited) 2011 (unaudited) 2012 (unaudited) 2013 (unaudited) 2014 (unaudited) 2015 (unaudited) 2016 (unaudited) 2017 (unaudited) 2018 (unaudited) 2019 ($ in millions) 2010 $ 404.9 $ 671.3 $ 776.5 $ 832.7 $ 866.7 $ 884.8 $ 897.5 $ 903.7 $ 909.6 $ 916.0 2011 376.5 606.4 752.7 820.9 858.8 880.2 894.5 906.1 915.1 2012 354.8 614.5 740.0 792.7 828.3 846.5 860.2 871.4 2013 265.4 523.5 613.3 663.0 685.5 704.9 717.5 2014 251.2 421.1 523.3 572.9 604.6 627.8 2015 218.5 409.1 518.7 577.7 629.1 2016 367.2 685.6 828.7 921.3 2017 342.8 639.1 793.5 2018 397.9 774.4 2019 462.0 Cumulative Paid Loss and LAE for the 2010 through 2019 accident years $ 7,628.1 Total incurred loss and LAE for the 2010 through 2019 accident years $ 9,952.8 Cumulative paid loss and LAE for the 2010 through 2019 accident years 7,628.1 Unpaid loss and LAE, net of reinsurance recoverables, for accident years prior to 2010 153.1 Unpaid loss and LAE, net of reinsurance recoverables, as of December 31, 2019 $ 2,477.8 (1) Primarily represents the following reinsurance lines of business: ocean marine and aviation; auto liability; accident & health; mortgage reinsurance; surety; and credit. Insurance Segment RSUI - Property As of December 31, 2019 Incurred Loss and LAE, Net of Reinsurance Cumulative Year Ended December 31, Number of Accident Year 2010 (unaudited) 2011 (unaudited) 2012 (unaudited) 2013 (unaudited) 2014 (unaudited) 2015 (unaudited) 2016 (unaudited) 2017 (unaudited) 2018 (unaudited) 2019 IBNR Reported Claims (2) ($ in millions) 2010 $ 110.2 $ 101.7 $ 101.8 $ 105.7 $ 104.2 $ 109.8 $ 109.9 $ 109.6 $ 101.7 $ 101.7 $ 0.8 1,631 2011 168.8 162.0 160.5 159.9 159.0 159.3 159.3 159.9 160.2 1.0 2,207 2012 270.9 262.5 258.6 256.1 235.1 236.1 235.5 228.3 1.1 2,311 2013 157.3 157.2 150.4 152.1 152.4 152.5 154.3 1.6 2,394 2014 170.7 166.2 155.9 153.7 153.8 153.6 1.9 3,091 2015 140.5 136.1 142.6 141.3 140.1 2.6 3,004 2016 181.4 170.5 172.9 173.9 3.3 3,365 2017 330.7 306.5 304.1 23.1 3,668 2018 259.9 265.7 42.9 2,992 2019 204.3 57.2 2,888 Total Incurred Loss and LAE for the 2010 through 2019 accident years $ 1,886.2 Paid Loss and LAE, Net of Reinsurance Year Ended December 31, Accident Year 2010 (unaudited) 2011 (unaudited) 2012 (unaudited) 2013 (unaudited) 2014 (unaudited) 2015 (unaudited) 2016 (unaudited) 2017 (unaudited) 2018 (unaudited) 2019 ($ in millions) 2010 $ 53.0 $ 83.6 $ 92.4 $ 98.6 $ 100.6 $ 101.1 $ 101.5 $ 101.3 $ 100.8 $ 100.9 2011 61.0 118.4 144.0 154.3 156.1 157.2 157.6 158.6 158.8 2012 62.0 157.5 181.9 193.5 202.4 216.2 216.7 219.2 2013 72.7 118.7 134.0 141.1 144.0 148.7 151.5 2014 93.2 133.8 145.0 148.8 150.3 151.3 2015 70.8 106.9 120.0 129.8 136.5 2016 72.0 127.1 147.1 161.2 2017 88.6 213.3 253.3 2018 62.3 175.1 2019 79.8 Cumulative Paid Loss and LAE for the 2010 through 2019 accident years $ 1,587.6 Total incurred loss and LAE for the 2010 through 2019 accident years $ 1,886.2 Cumulative paid loss and LAE for the 2010 through 2019 accident years 1,587.6 Unpaid loss and LAE, net of reinsurance recoverables, for accident years prior to 2010 3.7 Unpaid loss and LAE, net of reinsurance recoverables, as of December 31, 2019 $ 302.3 (1) Represents claims reported by insured claimants. Insurance Segment RSUI - Casualty As of December 31, 2019 Incurred Loss and LAE, Net of Reinsurance Cumulative Year Ended December 31, Number of Accident Year 2010 (unaudited) 2011 (unaudited) 2012 (unaudited) 2013 (unaudited) 2014 (unaudited) 2015 (unaudited) 2016 (unaudited) 2017 (unaudited) 2018 (unaudited) 2019 IBNR Reported Claims (2) ($ in millions) 2010 $ 204.1 $ 204.1 $ 204.1 $ 203.4 $ 194.6 $ 178.6 $ 177.0 $ 171.0 $ 168.0 $ 166.7 $ 7.5 6,986 2011 205.9 205.9 208.3 212.1 211.6 206.8 202.0 189.7 184.9 13.3 7,551 2012 226.3 226.3 230.3 242.8 238.9 233.8 231.9 221.8 31.9 7,681 2013 264.8 264.8 277.6 280.1 279.0 273.5 269.6 44.4 8,731 2014 292.0 322.7 321.1 322.4 320.3 310.9 56.8 10,242 2015 300.2 300.2 304.2 302.2 291.4 83.6 9,375 2016 290.7 293.7 301.3 312.0 83.0 8,917 2017 282.5 286.4 299.1 121.6 8,716 2018 290.0 301.5 185.6 8,730 2019 316.9 267.7 7,267 Total Incurred Loss and LAE for the 2010 through 2019 accident years $ 2,674.8 Paid Loss and LAE, Net of Reinsurance Year Ended December 31, Accident Year 2010 (unaudited) 2011 (unaudited) 2012 (unaudited) 2013 (unaudited) 2014 (unaudited) 2015 (unaudited) 2016 (unaudited) 2017 (unaudited) 2018 (unaudited) 2019 ($ in millions) 2010 $ 4.7 $ 30.9 $ 70.1 $ 90.1 $ 122.6 $ 128.6 $ 132.9 $ 149.2 $ 152.3 $ 158.1 2011 6.5 31.9 66.7 100.3 118.4 138.5 150.0 153.6 156.4 2012 6.8 38.4 96.0 125.5 144.0 159.3 166.7 176.1 2013 10.1 50.0 103.4 146.2 176.6 191.3 203.9 2014 13.0 69.5 130.1 179.1 206.5 234.6 2015 9.0 47.3 96.6 129.2 176.5 2016 13.7 69.2 123.6 197.8 2017 9.4 63.6 115.6 2018 13.0 70.4 2019 12.9 Cumulative Paid Loss and LAE for the 2010 through 2019 accident years $ 1,502.3 Total incurred loss and LAE for the 2010 through 2019 accident years $ 2,674.8 Cumulative paid loss and LAE for the 2010 through 2019 accident years 1,502.3 Unpaid loss and LAE, net of reinsurance recoverables, for accident years prior to 2010 64.4 Unpaid loss and LAE, net of reinsurance recoverables, as of December 31, 2019 $ 1,236.9 (1) Represents claims reported by insured claimants. Insurance Segment CapSpecialty (1) As of December 31, 2019 Incurred Loss and LAE, Net of Reinsurance Cumulative Year Ended December 31, Number of Accident Year 2010 (unaudited) 2011 (unaudited) 2012 (unaudited) 2013 (unaudited) 2014 (unaudited) 2015 (unaudited) 2016 (unaudited) 2017 (unaudited) 2018 (unaudited) 2019 IBNR Reported Claims (1) ($ in millions) 2010 $ 93.2 $ 110.8 $ 117.9 $ 134.8 $ 134.5 $ 129.8 $ 129.5 $ 127.7 $ 127.2 $ 129.6 $ 3.8 8,212 2011 74.0 71.2 74.4 76.9 79.4 78.4 78.2 77.7 77.6 0.5 5,695 2012 72.7 71.8 66.2 69.3 69.7 68.7 68.8 69.1 0.4 5,265 2013 78.7 81.4 85.2 84.4 87.2 88.6 87.4 1.1 5,166 2014 102.8 102.7 101.0 100.2 98.6 97.6 2.4 5,952 2015 111.0 111.8 109.2 109.7 112.4 4.2 5,551 2016 129.4 132.4 132.7 135.0 14.5 6,131 2017 147.3 143.7 157.6 31.5 6,318 2018 164.1 173.3 66.9 6,319 2019 193.0 134.1 4,955 Total Incurred Loss and LAE for the 2010 through 2019 accident years $ 1,232.6 Paid Loss and LAE, Net of Reinsurance Year Ended December 31, Accident Year 2010 (unaudited) 2011 (unaudited) 2012 (unaudited) 2013 (unaudited) 2014 (unaudited) 2015 (unaudited) 2016 (unaudited) 2017 (unaudited) 2018 (unaudited) 2019 ($ in millions) 2010 $ 22.0 $ 56.2 $ 78.4 $ 98.1 $ 111.0 $ 119.2 $ 121.6 $ 123.9 $ 124.4 $ 124.7 2011 16.3 31.9 44.7 57.7 67.3 69.8 73.8 75.7 76.0 2012 18.6 38.6 46.9 57.2 63.3 65.0 66.5 67.7 2013 23.4 48.0 62.0 69.6 78.6 84.5 85.3 2014 34.0 56.3 71.9 83.1 89.8 93.1 2015 30.9 57.4 73.5 88.8 101.1 2016 30.3 64.0 86.6 106.1 2017 30.1 65.6 95.1 2018 31.7 72.4 2019 29.8 Cumulative Paid Loss and LAE for the 2010 through 2019 accident years $ 851.3 Total incurred loss and LAE for the 2010 through 2019 accident years $ 1,232.6 Cumulative paid loss and LAE for the 2010 through 2019 accident years 851.3 Unpaid loss and LAE, net of reinsurance recoverables, for accident years prior to 2010 7.7 Unpaid loss and LAE, net of reinsurance recoverables, as of December 31, 2019 $ 389.0 (1) The vast majority of the CapSpecialty’s loss and LAE reserves relate to its casualty lines of business. (2) Represents claims reported by insured claimants. Loss and LAE Reserve Summary and Reconciliation to Consolidated Balance Sheet Unpaid loss and LAE as of December 31, 2019 (1) Gross Loss and LAE Reserves Reinsurance Recoverables on Unpaid Losses Net Loss and LAE Reserves ($ in millions) Reinsurance Segment: Property $ 1,965.5 604.3 $ 1,361.2 Casualty & other - Longer-Tailed Lines of Business 4,691.7 114.4 4,577.3 Casualty & other - Shorter-Tailed Lines of Business 2,666.6 188.8 2,477.8 9,323.8 907.5 8,416.3 Insurance Segment: RSUI - Property 444.6 142.3 302.3 RSUI - Casualty 1,801.0 564.1 1,236.9 RSUI 2,245.6 706.4 1,539.2 CapSpecialty 424.7 35.7 389.0 2,670.3 742.1 1,928.2 Eliminations (65.7 ) (65.7 ) — Total $ 11,928.4 $ 1,583.9 $ 10,344.5 (1) Includes unallocated LAE, which aggregate to 1.1 percent of gross loss and LAE reserves as of December 31, 2019. Net loss and LAE reserves by component are shown in the preceding tables, and consolidated gross loss and LAE reserves is presented in the consolidated balance sheets. (d) Supplementary Information on Historical Loss and LAE Duration (Unaudited) The following table presents supplemental information about average historical loss and LAE duration, net of reinsurance, as of December 31, 2019. Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance As of December 31, 2019 Years 1 2 3 4 5 6 7 8 9 10 Reinsurance Segment: Property 28.5 % 38.9 % 17.0 % 7.5 % 3.5 % 1.9 % 1.4 % 1.2 % 0.1 % 1.1 % Casualty & other - Longer-Tailed Lines of Business 4.0 % 8.7 % 13.0 % 15.0 % 13.4 % 10.9 % 7.0 % 4.7 % 4.6 % 3.6 % Casualty & other - Shorter-Tailed Lines of Business 34.7 % 27.5 % 13.4 % 6.8 % 4.2 % 2.3 % 1.5 % 1.0 % 0.8 % 0.7 % Insurance Segment: RSUI - Property 40.8 % 33.7 % 10.8 % 5.7 % 2.4 % 2.2 % 0.7 % 0.5 % 0.2 % 0.1 % RSUI - Casualty 3.6 % 16.0 % 19.6 % 15.4 % 12.1 % 7.0 % 4.1 % 5.3 % 1.7 % 3.5 % CapSpecialty 21.7 % 24.4 % 16.3 % 13.6 % 9.9 % 4.7 % 2.4 % 1.9 % 0.4 % 0.2 % |
Credit Agreements
Credit Agreements | 12 Months Ended |
Dec. 31, 2019 | |
Credit Agreement [Abstract] | |
Credit Agreements | 7. Credit Agreements On July 31, 2017, Alleghany entered into a five-year The Credit Agreement replaced Alleghany’s previous four-year credit agreement (the “Prior Credit Agreement”), which provided for an unsecured revolving credit facility in an aggregate principal amount of up to $200.0 million. The Prior Credit Agreement was terminated on July 31, 2017 in advance of its scheduled October 15, 2017 expiration date. There were no borrowings under the Credit Agreement in 2019, 2018 and 2017 and there were no outstanding borrowings under the Credit Agreement as of December 31, 2019. There were no borrowings under the Prior Credit Agreement in 2017. In addition to the Credit Agreement, several of Alleghany Capital’s subsidiaries have credit agreements with third-party financial institutions. Any borrowings under such agreements are not guaranteed by Alleghany or Alleghany Capital. See Note 8(c) for information on the borrowings arising from these credit agreements. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | 8. Debt (a) Alleghany Senior Notes On September 9, 2014, Alleghany completed a public offering of $300.0 million aggregate principal amount of its 4.90% senior notes due on September 15, 2044 (the “2044 Senior Notes”). The 2044 Senior Notes are unsecured and unsubordinated general obligations of Alleghany. Interest on the 2044 Senior Notes is payable semi-annually on March 15 and September 15 of each year. The terms of the 2044 Senior Notes permit redemption prior to their maturity. The indenture under which the 2044 Senior Notes were issued contains covenants that impose conditions on Alleghany’s ability to create liens on, or engage in sales of, the capital stock of AIHL, TransRe or RSUI. The 2044 Senior Notes were issued at approximately 99.3 percent of par, resulting in proceeds after underwriting discount, commissions and other expenses of $294.3 million and an effective yield of approximately 5.0 percent. On June 26, 2012, Alleghany completed a public offering of $400.0 million aggregate principal amount of its 4.95% senior notes due on June 27, 2022 (the “2022 Senior Notes”). The 2022 Senior Notes are unsecured and unsubordinated general obligations of Alleghany. Interest on the 2022 Senior Notes is payable semi-annually on June 27 and December 27 of each year. The terms of the 2022 Senior Notes permit redemption prior to their maturity. The indenture under which the 2022 Senior Notes were issued contains covenants that impose conditions on Alleghany’s ability to create liens on, or engage in sales of, the capital stock of AIHL, TransRe or RSUI. The 2022 Senior Notes were issued at approximately 99.9 percent of par, resulting in proceeds after underwriting discount, commissions and other expenses of $396.0 million and an effective yield of approximately 5.05 percent. On September 20, 2010, Alleghany completed a public offering of $300.0 million aggregate principal amount of its 5.625% senior notes due on September 15, 2020 (the “2020 Senior Notes”). The 2020 Senior Notes are unsecured and unsubordinated general obligations of Alleghany. Interest on the 2020 Senior Notes is payable semi-annually on March 15 and September 15 of each year. The terms of the 2020 Senior Notes permit redemption prior to their maturity. The indenture under which the 2020 Senior Notes were issued contains covenants that impose conditions on Alleghany’s ability to create liens on, or engage in sales of, the capital stock of AIHL or RSUI. The 2020 Senior Notes were issued at approximately 99.6 percent of par, resulting in proceeds after underwriting discount, commissions and other expenses of $298.9 million and an effective yield of approximately 5.67 percent. On January 15, 2020, Alleghany redeemed all of its outstanding 2020 Senior Notes for $312.7 million, consisting of the $300.0 million aggregate principal amount redeemed, $7.1 million of redemption premium and $5.6 million of accrued and unpaid interest on the principal amount being redeemed to the date of redemption. As a result of this early extinguishment of debt, Alleghany will record a realized loss, before tax, of $7.1 million in the first quarter of 2020. (b) TransRe Senior Notes On November 23, 2009, TransRe completed a public offering of $350.0 million aggregate principal amount of its 8.00% senior notes due on November 30, 2039 (the “2039 Senior Notes”). The 2039 Senior Notes are unsecured and unsubordinated general obligations of TransRe and are not guaranteed by Alleghany. Interest on the 2039 Senior Notes is payable semi-annually. The terms of the 2039 Senior Notes permit redemption prior to their maturity. The indentures under which the 2039 Senior Notes were issued contain covenants that impose conditions on TransRe’s ability to create liens on, or engage in sales of, the capital stock of certain of its subsidiaries, including Transatlantic Reinsurance Company, TransRe Europe S.A. or Fair American Insurance and Reinsurance Company. (c) Alleghany Capital Operating Subsidiaries The debt associated with Alleghany Capital’s operating subsidiaries totaled $367.1 million and $284.5 million as of December 31, 2019 and 2018, respectively. As of December 31, 2019, the $367.1 million includes: • $177.7 million of borrowings by Jazwares under its available credit facility and borrowings incurred and assumed from its acquisition of WCT; • $59.5 million of term loans at Kentucky Trailer primarily related to borrowings to finance small acquisitions, including its acquisitions of a controlling interest in two manufacturers of aluminum feed transportation equipment in December 2018 and July 2019, and borrowings under its available credit facilities; • $57.3 million of borrowings by W&W|AFCO Steel under its available credit facilities and term loans, including borrowings incurred and assumed from its acquisition of Hirschfeld; • $40.2 million of borrowings by IPS under its available credit facility and term loans, in part to finance a small acquisition in May 2019; and • $32.4 million of term loans at PCT primarily related to borrowings to finance the acquisition of a waterjet orifice and nozzle manufacturer in 2016 and the acquisition of a consumable cutting tool manufacturer in June 2019; None of the above liabilities are guaranteed by Alleghany or Alleghany Capital. In December 2019, third-party, floating-rate term loans at Concord were repaid and replaced with $33.3 million of intercompany floating-rate debt funded by the Alleghany parent company. The intercompany debt and related interest expenses are eliminated at the Alleghany consolidated level. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9. Income Taxes The following table presents income tax expense (benefit) for 2019, 2018 and 2017: Federal State Foreign Total ($ in millions) Year ended December 31, 2019 Current $ 87.9 $ 12.0 $ 70.8 $ 170.7 Deferred 62.9 0.5 (0.7 ) 62.7 $ 150.8 $ 12.5 $ 70.1 $ 233.4 Year ended December 31, 2018 Current $ (83.3 ) $ 5.6 $ 32.0 $ (45.7 ) Deferred 29.9 0.9 (0.1 ) 30.7 $ (53.4 ) $ 6.5 $ 31.9 $ (15.0 ) Year ended December 31, 2017 Current $ (41.3 ) $ 2.7 $ 41.0 $ 2.4 Deferred (66.6 ) 0.6 (0.2 ) (66.2 ) $ (107.9 ) $ 3.3 $ 40.8 $ (63.8 ) Earnings (losses) before income taxes from domestic operations were $952.4 million, ($46.4) million and ($132.7) million in 2019, 2018 and 2017, respectively. Earnings before income taxes from foreign operations were $171.2 million, $86.0 million and $169.4 million in 2019, 2018 and 2017, respectively. Foreign tax expense was primarily attributable to the U.K., Canada, Switzerland and France. The following table presents the difference between the federal income tax rate and the effective income tax rate: Year Ended December 31, 2019 2018 2017 Federal income tax rate 21.0 % 21.0 % 35.0 % Foreign tax credits 0.4 (0.3 ) (6.4 ) Income subject to dividends-received deduction (0.3 ) (18.3 ) (25.5 ) Tax-exempt interest (1.0 ) (36.0 ) (94.1 ) State taxes, net of federal tax benefit 0.9 13.8 6.5 Prior period adjustment 0.2 (0.1 ) (3.3 ) Tax benefit from sale of subsidiary — — (54.1 ) Other, net (0.4 ) (18.1 ) (32.0 ) Effective tax rate 20.8 % (38.0 )% (173.9 )% The Tax Act was signed into law on December 22, 2017. Among other provisions, the Tax Act reduced the corporate federal income tax rate from 35.0 percent to 21.0 percent, effective January 1, 2018, for the 2018 and subsequent tax years. As a result, the value of Alleghany’s deferred tax assets and liabilities as of December 31, 2017 was reduced. Alleghany has reflected the impact of the Tax Act in its financial statements. The net impact of this reduction to Alleghany’s consolidated 2017 tax expense was not material. The increase in effective tax rate in 2019 compared with 2018 primarily reflects the impact of higher earnings before income taxes and, to a lesser extent, lower tax-exempt interest income arising from municipal bond securities and lower dividends-received deductions, partially offset by higher state income taxes. The decrease in the effective tax rate in 2018 from 2017 primarily reflects the decrease in the U.S. corporate federal income tax rate due to the Tax Act, as well as new limitations on certain deductions as a result of the Tax Act and a tax benefit associated with the sale of PacificComp. The following table presents the tax effects of temporary differences that give rise to the deferred tax assets and deferred tax liabilities as of December 31, 2019 and 2018: As of December 31, 2019 2018 ($ in millions) Deferred tax assets: Loss and LAE reserves $ 118.9 $ 122.9 Minimum tax credit carry forward — 68.8 Compensation accruals 94.1 88.1 Unearned premiums 97.4 85.9 OTTI losses 6.5 5.4 State net operating loss carry forward 22.8 23.5 Other 134.9 89.8 Gross deferred tax assets before valuation allowance 474.6 484.4 Valuation allowance (22.8 ) (23.5 ) Gross deferred tax assets 451.8 460.9 Deferred tax liabilities: Net unrealized gains on investments 274.8 127.2 Deferred acquisition costs 113.4 101.1 Purchase accounting adjustments 11.7 11.3 Other 46.0 56.4 Gross deferred tax liabilities 445.9 296.0 Net deferred tax assets $ 5.9 $ 164.9 Other deferred tax assets include significant amounts of foreign tax credit carry forwards, which begin to expire in 2028. A valuation allowance is provided against deferred tax assets when, in the opinion of management, it is more likely than not that a portion of the deferred tax asset will not be realized. As of December 31, 2019 and 2018, Alleghany recognized $22.8 million and $ 23.5 million, respectively, of deferred tax assets for certain state net operating and capital loss carryovers, and a valuation allowance of $ 22.8 million and $ 23.5 million, respectively, has been established against these deferred tax assets as Alleghany does not currently anticipate it will generate sufficient income in these states to absorb such loss carryovers. Alleghany’s income tax return is currently under examination by the Internal Revenue Service for the 2015, 2016 and 2017 tax years. The following table presents the tax years of Alleghany and TransRe tax returns that remain subject to examination by major tax jurisdictions as of December 31, 2019. Major Tax Jurisdiction Open Tax Years Australia 2015-2019 Canada 2015-2019 France 2017-2019 Germany 2013-2019 Hong Kong 2013-2019 Japan 2019 Singapore 2016-2019 Switzerland 2017-2019 U.K. 2017-2019 U.S. 2015-2019 Alleghany believes that, as of December 31, 2019, it had no material uncertain tax positions. Interest and penalties related to unrecognized tax expenses (benefits) are recognized in income tax expense, when applicable. There were no material liabilities for interest or penalties accrued as of December 31, 2019. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders Equity Note [Abstract] | |
Stockholders' Equity | 10. Stockholders’ Equity (a) Common Stock Repurchases In November 2015, the Alleghany Board of Directors authorized the repurchase of shares of Common Stock at such times and at prices as management determines to be advisable, up to an aggregate of $400.0 million. In June 2018, the Alleghany Board of Directors authorized, upon the completion of the program authorized in 2015, the repurchase of additional shares of Common Stock at such times and at prices as management determines to be advisable, up to an aggregate of $400.0 million. In September 2019, the Alleghany Board of Directors authorized, upon the completion of the program authorized in 2018, the repurchase of additional shares of Common Stock at such times and at prices as management determines to be advisable, up to an aggregate of $500.0 million. As of December 31, 2019, Alleghany had $627.1 million remaining in the aggregate under its share repurchase authorizations. The following table presents the shares of Common Stock that Alleghany repurchased in 2019, 2018 and 2017: Year Ended December 31, 2019 2018 2017 Shares repurchased 215,091 822,849 29,704 Cost of shares repurchased (in millions) $ 144.4 $ 491.6 $ 16.0 Average price per share repurchased $ 671.44 $ 597.48 $ 540.25 (b) Accumulated Other Comprehensive Income (Loss) The following table presents a reconciliation of the changes during 2019 and 2018 in accumulated other comprehensive income attributable to Alleghany stockholders: Unrealized Appreciation of Investments Unrealized Currency Translation Adjustment Retirement Plans Total ($ in millions) Balance as of January 1, 2019 $ (61.6 ) $ (124.7 ) $ (15.7 ) $ (202.0 ) Other comprehensive income (loss), net of tax: Other comprehensive income (loss) before reclassifications 403.0 2.9 (12.2 ) 393.7 Reclassifications from accumulated other comprehensive income (20.4 ) — — (20.4 ) Total 382.6 2.9 (12.2 ) 373.3 Balance as of December 31, 2019 $ 321.0 $ (121.8 ) $ (27.9 ) $ 171.3 Unrealized Appreciation of Investments Unrealized Currency Translation Adjustment Retirement Plans Total ($ in millions) Balance as of January 1, 2018 $ 718.2 $ (84.6 ) $ (15.5 ) $ 618.1 Cumulative effect of adoption of new accounting pronouncements (1) Reclassification of net unrealized gains on equity securities, net of tax (735.6 ) — — (735.6 ) Reclassification of stranded taxes 156.6 (18.2 ) (3.3 ) 135.1 Total (579.0 ) (18.2 ) (3.3 ) (600.5 ) Other comprehensive income (loss), net of tax: Other comprehensive income (loss) before reclassifications (212.5 ) (21.9 ) 3.1 (231.3 ) Reclassifications from accumulated other comprehensive income 11.7 — — 11.7 Total (200.8 ) (21.9 ) 3.1 (219.6 ) Balance as of December 31, 2018 $ (61.6 ) $ (124.7 ) $ (15.7 ) $ (202.0 ) (1) See Note 1(r) for additional information regarding Alleghany’s adoption of new investment accounting guidance and new guidance on certain tax effects caused by the Tax Act. The following table presents reclassifications out of accumulated other comprehensive income attributable to Alleghany stockholders during 2019 and 2018: Accumulated Other Year Ended December 31, Comprehensive Income Component Line in Consolidated Statement of Earnings 2019 2018 ($ in millions) Unrealized appreciation of investments: Net realized capital gains (1) $ (45.5 ) $ 13.5 Other than temporary impairment losses 19.7 1.3 Income taxes 5.4 (3.1 ) Total reclassifications: Net earnings $ (20.4 ) $ 11.7 (1) For 2019, excludes a $38.4 million pre-tax loss on the Put Option and a $13.6 million pre-tax loss from the December 2019 sale of a privately held investment accounted for under the equity method. For 2018, excludes a $45.7 million pre-tax gain from AIHL’s conversion of its limited partnership interests in certain subsidiaries of Ares into Ares common units, and a $35.4 million capital loss due to an impairment charge from the write-down of certain SORC assets arising from a decline in energy prices as of December 31, 2018. See Note 4 for additional information. (c) Regulations and Dividend Restrictions As of December 31, 2019, approximately $6.9 billion of Alleghany’s total equity of $8.8 billion was unavailable for dividends or advances to Alleghany from its subsidiaries. The remaining $1.9 billion was available for dividends or advances to Alleghany from its subsidiaries, or was retained at the Alleghany parent company-level and, as such, was available to pay dividends to Alleghany’s stockholders as of December 31, 2019. The ability of Alleghany’s reinsurance and insurance subsidiaries to pay dividends or other distributions is subject to the laws and regulations applicable to each subsidiary, as well as each subsidiary’s need to maintain capital requirements adequate to maintain its operations and financial strength ratings issued by independent rating agencies. In the U.S., Alleghany’s reinsurance and insurance subsidiaries are subject to insurance laws and regulations that restrict the amount and timing of dividends they may pay without the prior approval of regulatory authorities. Under the insurance holding company laws and regulations, Alleghany’s reinsurance and insurance subsidiaries may not pay an “extraordinary” dividend or distribution without the approval of state insurance regulators. In general, an “extraordinary” dividend or distribution is defined as a dividend or distribution that, together with other dividends and distributions made within the preceding 12 months, exceeds the lesser (or, in some jurisdictions, the greater) of (i) 10 percent of the statutory surplus of the reinsurer or insurer as of the end of the prior calendar year (or, in certain states, as of the end of the prior quarter) and (ii) the net income during the prior calendar year (or, in certain states, the adjusted statutory net investment income). In addition, certain states where Alleghany’s reinsurance and insurance subsidiaries are domiciled prohibit a domestic insurance company from paying dividends except out of earned surplus. TransRe’s operations are also regulated in various foreign jurisdictions with respect to currency, amount and type of security deposits, amount and type of reserves and amount and type of local investment. Regulations governing constitution of technical reserves and remittance balances in some countries may hinder remittance of profits and repatriation of assets. International operations and assets held abroad may also be adversely affected by political and other developments in foreign countries, including possible tax changes, nationalization and changes in regulatory policy, as well as by consequences of hostilities and unrest. The risks of such occurrences and their overall effect upon TransRe vary from country to country and cannot easily be predicted. The following table presents the dividends paid to Alleghany by its reinsurance and insurance subsidiaries in 2019, 2018 and 2017: As of December 31, 2019 (1) 2018 2017 (2) ($ in millions) TransRe (3) $ 301.0 $ 300.0 $ 225.0 RSUI (4) 100.0 100.0 75.0 Total $ 401.0 $ 400.0 $ 300.0 ( 1 ) Includes $101.0 million representing the July 1, 2019 carrying value of TransRe’s ownership interest in CapSpecialty, which was transferred to Alleghany. (2) Dividends to Alleghany were reduced as a consequence of significant TransRe and RSUI catastrophe losses in the third quarter of 2017. (3) In 2019, 2018 and 2017, TRC paid cash dividends of $220.0 million, $280.0 million and $270.0 million, respectively, to the TransRe holding company. In addition, TRC transferred its ownership interest in CapSpecialty to the TransRe holding company, and consequently, the TransRe holding company recorded a dividend from TRC in the amount of $101.0 million. (4) Alleghany received an extraordinary dividend from RSUI in January 2020. As of December 31, 2019, a maximum amount of $41.5 million was available for dividends by TRC without prior approval of the applicable regulatory authorities. Aside from Alleghany’s reinsurance and insurance subsidiaries, dividends are regularly paid to Alleghany from the subsidiaries of Alleghany Capital, where there are generally no regulatory restrictions on dividends being paid from retained earnings. The statutory net income of Alleghany’s reinsurance and insurance subsidiaries was $690.9 million and $263.6 million for the years ended December 31, 2019 and 2018, respectively. As of December 31, 2019 and 2018, the combined statutory capital and surplus of Alleghany’s reinsurance and insurance subsidiaries was $7.0 billion and $6.5 billion, respectively. As of December 31, 2019, the amount of statutory capital and surplus necessary to satisfy regulatory requirements was not significant in relation to the actual statutory capital and surplus of Alleghany’s reinsurance and insurance companies in the U.S. (d) Special Dividends In February 2018, the Alleghany Board of Directors declared a special dividend of $10.00 per share for stockholders of record on March 5, 2018. On March 15, 2018, Alleghany paid dividends to stockholders totaling $154.0 million. In February 2020, the Alleghany Board of Directors declared a special dividend of $15.00 per share for stockholders of record on March 5, 2020 payable on March 16, 2020. |
Earnings Per Share of Common St
Earnings Per Share of Common Stock | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share of Common Stock | 11. Earnings Per Share of Common Stock The following table presents a reconciliation of the earnings and share data used in the basic and diluted earnings per share computations for 2019, 2018 and 2017: Year Ended December 31, 2019 2018 2017 ($ in millions, except share amounts) Net earnings available to Alleghany stockholders $ 857.8 $ 39.5 $ 90.1 Effect of dilutive securities — — — Income available to common stockholders for diluted earnings per share $ 857.8 $ 39.5 $ 90.1 Weighted average common shares outstanding applicable to basic earnings per share 14,431,892 15,062,567 15,410,034 Effect of dilutive securities 11,584 — — Adjusted weighted average common shares outstanding applicable to diluted earnings per share 14,443,476 15,062,567 15,410,034 Contingently issuable shares (1) 48,468 23,947 78,345 (1) Contingently issuable shares were potentially available in the periods presented, but were not included in the diluted earnings per share computations because the impact was anti-dilutive to the earnings per share calculation. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. Commitments and Contingencies (a) Legal Proceedings Certain of Alleghany’s subsidiaries are parties to pending litigation and claims in connection with the ordinary course of their businesses. Each such subsidiary makes provisions for estimated losses to be incurred in such litigation and claims, including legal costs. In the opinion of management, such provisions are adequate, and management does not believe that any pending litigation will have a material adverse effect on Alleghany’s consolidated results of operations, financial position or cash flows. (b) Leases Alleghany and its subsidiaries lease certain facilities, land, furniture and equipment under long-term, non-cancellable lease agreements that expire at various dates through 2038. Most of Alleghany’s leases relate to office facilities. Alleghany’s lease agreements do not contain any material restrictive covenants and substantially all are considered to be operating leases. Lease expense was $40.0 million, $38.8 million and $37.0 million in 2019, 2018 and 2017, respectively. The following table presents Alleghany’s consolidated lease liabilities and right-of-use lease assets related to operating leases as of December 31, 2019: As of December 31, 2019 Maturity of lease payments, by year ($ in millions) 1 year or less $ 39.0 More than 1 year to 2 years 36.5 More than 2 years to 3 years 28.9 More than 3 years to 4 years 27.2 More than 4 years to 5 years 24.8 More than 5 years 145.2 Total lease payments (1) 301.6 Less: interest (2) (60.5 ) Lease liabilities (3) $ 241.1 Right-of-use lease assets (4) $ 209.7 Prepaid lease assets, net of lease allowances and incentives 31.4 $ 241.1 (1) As of December 31, 2019, the weighted average lease term was approximately 12 years. (2) As of December 31, 2019, the weighted average discount rate was approximately 5 percent. (3) Represents the present value of lease liabilities and is reported as a component of other liabilities on Alleghany’s consolidated balance sheet. (4) Reported as a component of other assets on Alleghany’s consolidated balance sheet. (c) Asbestos-Related Illness and Environmental Impairment Exposure Loss and LAE include amounts for risks related to asbestos-related illness and environmental impairment. The following table presents such gross and net reserves as of December 31, 2019 and 2018: December 31, 2019 December 31, 2018 Gross Net Gross Net ($ in millions) TransRe $ 113.0 $ 108.3 $ 128.1 $ 124.6 CapSpecialty 4.8 4.8 5.6 5.6 Total $ 117.8 $ 113.1 $ 133.7 $ 130.2 The reserves carried for such claims, including the IBNR portion, are based upon known facts and current law at the respective balance sheet dates. However, significant uncertainty exists in determining the amount of ultimate liability for asbestos-related illness and environmental impairment losses. This uncertainty is due to, among other reasons, inconsistent and changing court resolutions and judicial interpretations with respect to underlying policy intent and coverage and uncertainties as to the allocation of responsibility for resultant damages, among other reasons. Further, possible future changes in statutes, laws, regulations, theories of liability and other factors could have a material effect on these liabilities and, accordingly, future earnings. (d) Energy Holdings As of December 31, 2019, Alleghany had holdings in energy sector businesses of $530.9 million, comprised of $329.2 million of debt securities, $115.0 million of equity securities and $86.7 million of Alleghany’s equity attributable to SORC. |
Segments of Business
Segments of Business | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segments of Business | 13. Segments of Business (a) Overview Alleghany’s segments are reported in a manner consistent with the way management evaluates the businesses. As such, Alleghany classifies its businesses into three reportable segments – reinsurance, insurance and Alleghany Capital. Alleghany determined that Alleghany Capital qualified as a reportable segment in the first quarter of 2018, reflecting the increased significance of Alleghany Capital’s business to Alleghany and corporate activities. Reinsurance and insurance underwriting activities are evaluated separately from investment and other activities. Segment accounting policies are described in Note 1. The reinsurance segment consists of property and casualty reinsurance operations conducted by TransRe’s reinsurance operating subsidiaries and is further reported through two major product lines – property and casualty & other. TransRe provides property and casualty reinsurance to insurers and other reinsurers through brokers and on a direct basis to ceding companies. TransRe writes a modest amount of property and casualty insurance business, which is included in the reinsurance segment. A significant portion of the premiums earned by TransRe’s operations are generated by offices located in Canada, Europe, Asia, Australia, Africa and those serving Latin America and the Caribbean. Although the majority of the premiums earned by these offices typically relate to the regions where they are located, a significant portion may be derived from other regions of the world, including the U.S. In addition, although a significant portion of the assets and liabilities of these foreign offices generally relate to the countries where the ceding companies and reinsurers are located, most investments are located in the country of domicile of these offices. The insurance segment consists of property and casualty insurance operations conducted in the U.S. by AIHL through its insurance operating subsidiaries RSUI, CapSpecialty and, prior to its sale on December 31, 2017, PacificComp. RSUI also writes a modest amount of assumed reinsurance business, which is included in the insurance segment. The Alleghany Capital segment consists of industrial operations, non-industrial operations and corporate operations at the Alleghany Capital level. Industrial operations are conducted through PCT, Kentucky Trailer, W&W|AFCO Steel, and a 45 percent equity interest in Wilbert. Non-industrial operations are conducted through IPS, Jazwares and Concord. Corporate activities are not classified as a segment. The primary components of corporate activities are Alleghany Properties, SORC and activities at the Alleghany parent company. In addition, corporate activities include interest expense associated with the senior notes issued by Alleghany, whereas interest expense associated with senior notes issued by TransRe is included in “Total Segments” and interest expense associated with other debt is included in Alleghany Capital. Information related to the senior notes and other debt can be found in Note 8. (b) Results The following tables present segment results for Alleghany’s three reportable segments and for corporate activities for 2019, 2018 and 2017: Reinsurance Segment Insurance Segment Year Ended December 31, 2019 Property Casualty & other (1) Total RSUI Cap Specialty Total Subtotal Alleghany Capital (2) Total Segments Corporate Activities (3) Consolidated ($ in millions) Gross premiums written $ 1,700.3 $ 3,245.4 $ 4,945.7 $ 1,366.6 $ 371.8 $ 1,738.4 $ 6,684.1 $ — $ 6,684.1 $ (27.7 ) $ 6,656.4 Net premiums written 1,328.8 3,166.2 4,495.0 912.0 344.7 1,256.7 5,751.7 — 5,751.7 — 5,751.7 Net premiums earned 1,280.1 3,046.9 4,327.0 824.2 326.9 1,151.1 5,478.1 — 5,478.1 — 5,478.1 Net loss and LAE 942.6 2,018.5 2,961.1 503.7 221.6 725.3 3,686.4 — 3,686.4 — 3,686.4 Commissions, brokerage and other underwriting expenses (4) 424.2 982.6 1,406.8 219.2 132.7 351.9 1,758.7 — 1,758.7 — 1,758.7 Underwriting (loss) profit (5) $ (86.7 ) $ 45.8 $ (40.9 ) $ 101.3 $ (27.4 ) $ 73.9 33.0 — 33.0 — 33.0 Net investment income 533.2 6.3 539.5 10.7 550.2 Change in the fair value of equity securities 705.8 — 705.8 3.9 709.7 Net realized capital gains 6.0 1.0 7.0 (13.5 ) (6.5 ) Other than temporary impairment losses (19.7 ) — (19.7 ) — (19.7 ) Noninsurance revenue 27.0 2,289.3 2,316.3 12.5 2,328.8 Other operating expenses 103.1 2,132.9 2,236.0 27.3 2,263.3 Corporate administration 4.1 — 4.1 70.7 74.8 Amortization of intangible assets 1.3 32.5 33.8 — 33.8 Interest expense 27.1 20.1 47.2 52.8 100.0 Earnings (losses) before income taxes $ 1,149.7 $ 111.1 $ 1,260.8 $ (137.2 ) $ 1,123.6 Reinsurance Segment Insurance Segment Year Ended December 31, 2018 Property Casualty & other (1) Total RSUI Cap Specialty Total Subtotal Alleghany Capital (2) Total Segments Corporate Activities (3) Consolidated ($ in millions) Gross premiums written $ 1,532.7 $ 2,918.3 $ 4,451.0 $ 1,142.0 $ 328.8 $ 1,470.8 $ 5,921.8 $ — $ 5,921.8 $ (26.2 ) $ 5,895.6 Net premiums written 1,169.4 2,799.7 3,969.1 773.3 306.0 1,079.3 5,048.4 — 5,048.4 — 5,048.4 Net premiums earned 1,177.3 2,761.7 3,939.0 747.3 289.9 1,037.2 4,976.2 — 4,976.2 — 4,976.2 Net loss and LAE 1,067.8 1,801.5 2,869.3 491.2 159.9 651.1 3,520.4 — 3,520.4 — 3,520.4 Commissions, brokerage and other underwriting expenses (4) 384.9 897.4 1,282.3 211.9 123.1 335.0 1,617.3 — 1,617.3 — 1,617.3 Underwriting (loss) profit (5) $ (275.4 ) $ 62.8 $ (212.6 ) $ 44.2 $ 6.9 $ 51.1 (161.5 ) — (161.5 ) — (161.5 ) Net investment income 480.9 4.8 485.7 14.8 500.5 Change in the fair value of equity securities (184.2 ) — (184.2 ) (44.8 ) (229.0 ) Net realized capital gains 31.6 0.9 32.5 (35.7 ) (3.2 ) Other than temporary impairment losses (1.3 ) — (1.3 ) — (1.3 ) Noninsurance revenue 22.0 1,574.6 1,596.6 47.4 1,644.0 Other operating expenses 59.8 1,485.6 1,545.4 33.9 1,579.3 Corporate administration (1.7 ) — (1.7 ) 17.6 15.9 Amortization of intangible assets (0.4 ) 24.4 24.0 — 24.0 Interest expense 27.1 10.5 37.6 53.1 90.7 Earnings (losses) before income taxes $ 102.7 $ 59.8 $ 162.5 $ (122.9 ) $ 39.6 Reinsurance Segment Insurance Segment Year Ended December 31, 2017 Property Casualty & other (1) Total RSUI Cap Specialty Pacific Comp Total Subtotal Alleghany Capital (2) Total Segments Corporate Activities (3) Consolidated ($ in millions) Gross premiums written $ 1,557.8 $ 2,652.8 $ 4,210.6 $ 1,056.8 $ 290.2 $ 162.6 $ 1,509.6 $ 5,720.2 $ — $ 5,720.2 $ (23.3 ) $ 5,696.9 Net premiums written 1,233.1 2,577.0 3,810.1 724.4 271.2 160.2 1,155.8 4,965.9 — 4,965.9 — 4,965.9 Net premiums earned 1,181.9 2,626.8 3,808.7 721.7 260.9 163.7 1,146.3 4,955.0 — 4,955.0 — 4,955.0 Net loss and LAE 1,080.1 1,705.3 2,785.4 569.9 143.9 121.0 834.8 3,620.2 — 3,620.2 — 3,620.2 Commissions, brokerage and other underwriting expenses (4) 383.4 903.3 1,286.7 208.9 112.7 42.9 364.5 1,651.2 — 1,651.2 — 1,651.2 Underwriting (loss) profit (5) $ (281.6 ) $ 18.2 $ (263.4 ) $ (57.1 ) $ 4.3 $ (0.2 ) $ (53.0 ) (316.4 ) — (316.4 ) — (316.4 ) Net investment income 434.6 2.1 436.7 14.3 451.0 Change in the fair value of equity securities — — — — — Net realized capital gains 85.7 23.0 108.7 (1.5 ) 107.2 Other than temporary impairment losses (16.9 ) — (16.9 ) — (16.9 ) Noninsurance revenue 15.5 896.9 912.4 15.9 928.3 Other operating expenses 82.8 844.9 927.7 39.4 967.1 Corporate administration 1.7 — 1.7 45.3 47.0 Amortization of intangible assets (1.5 ) 20.9 19.4 — 19.4 Interest expense 26.9 4.0 30.9 52.1 83.0 Earnings (losses) before income taxes $ 92.6 $ 52.2 $ 144.8 $ (108.1 ) $ 36.7 (1) Primarily consists of the following reinsurance lines of business: directors’ and officers’ liability; errors and omissions liability; general liability; medical malpractice; ocean marine and aviation; auto liability; accident & health; mortgage reinsurance; surety; and credit. (2) Excludes certain minor, legacy investments that were previously reflected in Alleghany Capital in 2018 and prior periods, to align with management’s view of reportable segments. (3) Includes elimination of minor reinsurance activity between segments. Also, includes certain minor, legacy investments that were previously reflected in Alleghany Capital in 2018 and prior periods. (4) Includes amortization associated with deferred acquisition costs of $1,392.8 million, $1,271.4 million and $1,261.7 million for the years ended December 31, 2019, 2018 and 2017, respectively. (5) Underwriting profit represents net premiums earned less net loss and LAE and commissions, brokerage and other underwriting expenses, all as determined in accordance with GAAP, and does not include net investment income, change in the fair value of equity securities, net realized capital gains, OTTI losses, noninsurance revenue, other operating expenses, corporate administration, amortization of intangible assets or interest expense. Underwriting profit does not replace earnings before income taxes determined in accordance with GAAP as a measure of profitability. Rather, Alleghany believes that underwriting profit enhances the understanding of its reinsurance and insurance segments’ operating results by highlighting net earnings attributable to their underwriting performance. Earnings before income taxes (a GAAP measure) may show a profit despite an underlying underwriting loss. Where underwriting losses persist over extended periods, a reinsurance or an insurance company’s ability to continue as an ongoing concern may be at risk. Therefore, Alleghany views underwriting profit as an important measure in the overall evaluation of performance. (c) Foreign operations Information associated with Alleghany’s foreign operations in its reinsurance segment (representing the vast majority of Alleghany’s foreign operations), is as follows: • Foreign gross premiums written in 2019, 2018 and 2017 were approximately $1.7 billion, $1.6 billion and $1.5 billion, respectively. • Foreign net premiums earned in 201 9 , 201 8 and 201 7 were approximately $ 1.5 billion, $ 1.4 billion and $ 1.4 billion , respectively . The foreign country in which Alleghany generates the largest amount of premium revenues is the U.K. Net premiums earned by operations in the U.K. in 201 9 , 201 8 and 201 7 were $ 615.6 mi llion, $ 583.8 million and $ 612.1 million, respectively . (d) Identifiable assets and equity The following table presents identifiable assets, the portion of identifiable assets related to cash and invested assets, and equity attributable to Alleghany, for Alleghany’s reportable segments and for corporate activities as of December 31, 2019: Identifiable Assets Invested Assets and Cash Equity Attributable to Alleghany ($ in millions) Reinsurance segment $ 17,158.2 $ 13,803.9 $ 5,243.3 Insurance segment 7,230.6 5,641.8 3,173.0 Subtotal 24,388.8 19,445.7 8,416.3 Alleghany Capital 2,048.3 219.1 900.9 Total segments 26,437.1 19,664.8 9,317.2 Corporate activities 494.5 406.1 (540.5 ) Consolidated $ 26,931.6 $ 20,070.9 $ 8,776.7 (e) Alleghany Capital Noninsurance Revenue For Alleghany Capital’s industrial and non-industrial operations, noninsurance revenue consists of the sale of manufactured goods and services. The following table presents noninsurance revenue for the Alleghany Capital segment for 2019, 2018 and 2017: Year Ended December 31, 2019 2018 2017 ($ in millions) Industrial (1) $ 1,105.6 $ 917.1 $ 393.7 Non-Industrial (2) 1,183.7 657.5 502.4 Corporate & other — — 0.8 Alleghany Capital $ 2,289.3 $ 1,574.6 $ 896.9 (1) For 2019 and 2018, the vast majority of industrial noninsurance revenues were recognized as goods and services transferred to customers over time. For 2017, approximately 72 percent of noninsurance revenues that were recognized as services were transferred to customers over time, with the remainder recognized as goods transferred at a point in time. See Note 1(r) additional information regarding Alleghany’s adoption of new revenue recognition accounting guidance effective in the first quarter of 2018. (2) For 2019, 2018 and 2017, approximately 70 percent, 63 percent and 66 percent, respectively, of non-industrial noninsurance revenues were recognized as services transferred to customers over time, with the remainder recognized as goods transferred at a point in time. See Note 1(r) for additional information on Alleghany’s adoption of new revenue recognition accounting guidance effective in the first quarter of 2018. (f) Concentration Significant portions of the reinsurance segment’s gross premiums written are produced by a limited number of brokers. Gross premiums written produced by the reinsurance segment’s three largest brokers were approximately 26 percent, 17 percent and 16 percent in 2019, 26 percent, 18 percent and 15 percent in 2018 and 24 percent, 19 percent, and 16 percent in 2017. A large whole account quota share treaty accounted for approximately 14 percent in 2019, 17 percent in 2018 and 19 percent in 2017 of gross premiums written in the reinsurance segment. |
Long-Term Compensation Plans
Long-Term Compensation Plans | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Long-Term Compensation Plans | 14. Long-Term Compensation Plans (a) Alleghany Parent Company-Level As of December 31, 2019, Alleghany had long-term compensation plans for parent company-level employees and directors. Alleghany parent company-level long-term compensation awards to current employees do not include stock options but consist only of restricted stock awards, including restricted stock units and performance share awards of Common Stock. Alleghany parent company-level, long-term compensation awards to non-employee directors consist of annual grants of restricted shares and restricted stock units of Common Stock. were $ 38.7 million, ($12.0) million and $ 17.1 million in 201 9 , 201 8 and 201 7 , respectively. The negative expense for 2018 reflects a reversal of certain long-term incentive compensation expense accruals, driven primarily by the impacts of depreciation in the value of Alleghany’s consolidated debt and equity securities portfolio, as well as significant catastrophe losses incurred at Alleghany’s reinsurance and insurance subsidiaries in 2018. The amount of related income tax (expenses) benefit in the consolidated statements of earnings and comprehensive income with respect to these p lans was $ 8.1 million, ($2.5) million and $ 3.6 million in 201 9 , 201 8 and 201 7 , respectively. In 201 9 , 201 8 and 201 7 , $ 2.4 million, $ 4.3 million and $ 7.1 million of Common Stock at fair market value, respectively, and $ 2.2 million, $17.1 million and $ 19.3 million of cash, respectively, was paid by Alleghany under these plans for Alleghany parent company-level employees and non-employee directors. As noted above, as of December 31, 201 9 and 201 8 , all outstanding awards were accounted for under the fair-value-based method of accounting . The following is a summary of the Alleghany parent company-level, long-term compensation plans. Director Restricted Stock Plan The annual grant to each non-employee director consists of either restricted shares or restricted stock units of Common Stock, at the director’s election. Awards granted to non-employee directors were not material to Alleghany’s results of operations, financial condition or cash flows for the three years ended December 31, 2019. Alleghany Long-Term Incentive Plans Awards under Alleghany’s long-term compensation plans may include, but are not limited to, cash and/or shares of Common Stock, rights to receive cash and/or shares of Common Stock and options to purchase shares of Common Stock, including options intended to qualify as incentive stock options under the Internal Revenue Code, and options not intended to so qualify. The following types of awards were outstanding as of December 31, 2019: • Performance Share Awards — Participants are entitled, at the end of a multi-year award period, to a maximum amount equal to the value of one and one-half shares of Common Stock for each performance share issued to them based on market value on the payment date. Payouts are made provided defined levels of performance are achieved. Expenses are recorded based on changes in the fair value of the awards. The fair value is calculated based primarily on the value of Common Stock as of the balance sheet date, the degree to which performance targets have been achieved and the time elapsed with respect to each award period. • Restricted Share Awards — From time to time, Alleghany has awarded to management employees restricted shares or restricted stock units of Common Stock. These awards entitle the participants to a specified maximum amount equal to the value of one share of Common Stock for each restricted share or restricted stock unit issued to them based on the market value on the grant date, subject to certain conditions. The expense is recognized ratably over the performance period, which can be extended under certain circumstances. (b) TransRe Plans TransRe has a Book Value Unit Plan and a Mid-Term Incentive Plan (collectively, the “TransRe Plans”) for the purpose of providing incentives to key employees of TransRe. Under the TransRe Plans, book value units (“BVUs”) and mid-term incentive plan (“MTIP”) awards are issued. BVUs and MTIP awards may only be settled in cash. The fair value of each BVU is calculated as the stockholder’s equity of TransRe, adjusted for certain capital transactions, divided by the adjusted number of BVUs outstanding. BVUs have vesting dates of up to approximately the fourth anniversary of the date of grant. The fair value of MTIP awards is calculated based on underwriting results compared to specified targets or based on overall results as determined by TransRe’s board of directors. MTIP awards have vesting dates of approximately the second or third anniversary of the date of grant. The BVUs and MTIP awards contain certain restrictions, related to, among other things, forfeiture in the event of termination of employment and transferability. In 2019, 2018 and 2017, TransRe recorded $48.7 million, $35.6 million and $46.6 million, respectively, in compensation expense and a deferred tax benefit of $10.2 million, $7.5 million and $9.8 million, respectively, related to the TransRe Plans. (c) RSUI Plans RSUI has a Restricted Stock Unit Plan (the “RSU Plan”) and a Book Value Unit Plan (the “BVU Plan”) (collectively the “RSUI Plans”) for the purpose of providing equity-like incentives to key employees of RSUI. Under the RSU Plan, restricted stock units (“RSUs”) were issued. Additional RSUs, defined as the “Deferred Equity Pool,” were issued in 2018 and 2017. RSUs may only be settled in cash. The fair value of each unit is calculated as the stockholder’s equity of RSUI, adjusted for certain capital transactions and accumulated compensation expense recognized under the RSU Plan, divided by the sum of RSUI common stock outstanding and the original units available under the RSU Plan. The units vest on the fourth anniversary of the date of grant and contain certain restrictions, related to, among other things, forfeiture in the event of termination of employment and transferability. Effective July 1, 2019, no additional units will be awarded from the RSU Plan. The BVU Plan was initiated on July 1, 2019. Under the BVU Plan, BVUs are issued. The BVUs may only be settled in cash. The fair value of each BVU is calculated as the stockholder’s equity of RSUI, adjusted for certain capital transactions, divided by the BVUs outstanding. The units vest on the fourth anniversary of the date of grant and contain certain restrictions, related to, among other things, forfeiture in the event of termination of employment and transferability. In 2019, 2018 and 2017, RSUI recorded $37.4 million, $11.7 million and $26.3 million, respectively, in compensation expense related to the RSUI Plans. During the same periods, a deferred tax benefit of $7.8 million, $2.4 million and $5.5 million, respectively, related to the compensation expense were recorded. (d) Other Subsidiary Plans Long-term incentive plans exist at certain other subsidiaries for the purpose of providing equity-like incentives to key employees. The awards under such plans were not material to Alleghany’s results of operations, financial condition or cash flows for the three years ended December 31, 2019. |
Employee Retirement Benefit Pla
Employee Retirement Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Retirement Benefit Plans | 15. Employee Retirement Benefit Plans (a) Overview Alleghany and certain of its subsidiaries provide a variety of retirement benefits. Alleghany provides supplemental retirement benefits through deferred compensation programs and profit sharing plans for certain of its Alleghany parent company-level officers and employees. In addition, Alleghany’s subsidiaries sponsor both qualified, defined contribution retirement plans for substantially all employees, including executives, and non-qualified plans only for executives, some of which provide for voluntary salary reduction contributions by employees and matching contributions by each respective subsidiary, subject to specified limitations. Alleghany has endorsement split-dollar life insurance policies for its Alleghany parent company-level officers that are effective during employment, as well as retirement. Premiums are paid by Alleghany and death benefits are split between Alleghany and the beneficiaries of the officers. Death benefits for current employees that inure to the beneficiaries are generally equal to four times the annual salary at the time of an officer’s death. After retirement, death benefits that inure to the beneficiaries are generally equal to the annual salary of the officer as of the date of retirement. In addition, Alleghany and TransRe have defined benefit pensions plans for certain of their employees, as further described below. These employee retirement plans are not material to Alleghany’s results of operations, financial condition or cash flows for the three years ended December 31, 2019. Alleghany recognizes on its balance sheet an asset for a plan’s overfunded status or a liability for a plan’s underfunded status, with changes in funded status reported in other comprehensive income, net of tax. In December 2019, the Alleghany Board of Directors authorized the termination of the executive retirement plans at both the Alleghany Parent company-level and at TransRe, effective December 24, 2019. The final payments will be made in December 2020 to Alleghany Parent company-level and TransRe retirement plan participants, at which time the remaining other comprehensive loss balances will be reclassified to corporate administration expense and commissions, brokerage and other underwriting expenses, respectively. Alleghany estimates that approximately $57 million of total payments will be made to all executive retirement participants in 2020 and that approximately $21 million of other comprehensive losses attributable to retirement plans, before tax, as of December 31, 2019 will be reclassified to expenses in 2020. Due in large part to this authorization for termination of these plans, other comprehensive losses attributable to retirement plans, before tax, were $15.4 million in 2019. (b) Alleghany Parent Company-Level Alleghany has an unfunded, noncontributory defined benefit pension plan for Alleghany parent company-level executives, which was frozen as of December 31, 2013 and terminated in December 2019, and a funded, noncontributory defined benefit pension plan for Alleghany parent company-level employees. The projected benefit obligations of the defined benefit pension plans as of December 31, 2019 and 2018 was $44.1 million and $32.3 million, respectively, and the related fair value of plan assets was $3.5 million and $3.3 million, respectively. (c) TransRe TransRe has an unfunded, noncontributory defined benefit plan and a funded noncontributory defined benefit plan for certain of its employees in the U.S. Benefits under TransRe’s defined benefit plans were frozen as of December 31, 2009 and the unfunded, noncontributory defined benefit plan was terminated in December 2019. As of December 31, 2019 and 2018, the projected benefit obligation was $79.0 million and $65.5 million, respectively, and the related fair value of plan assets was $56.9 million and $49.1 million, respectively. (d) W&W | W&W|AFCO Steel had a funded noncontributory defined benefit plan for certain of its employees. Benefits under W&W|AFCO Steel’s defined benefit plans were frozen as of April 1, 2003. During 2018, W&W|AFCO Steel initiated a plan termination, whereby the obligations related to plan participants currently receiving benefits were annuitized through the purchase of annuity contracts from a third-party life insurance company. During 2019, the termination plan was completed. As of December 31, 2018 the projected benefit obligation was $10.0 million and the related fair value of plan assets was $11.7 million. |
Quarterly Results of Operations
Quarterly Results of Operations (unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (unaudited) | 16. Quarterly Results of Operations (unaudited) Selected quarterly financial data for 2019 and 2018 are presented below: Quarter Ended March 31 June 30 September 30 December 31 ($ in millions, except per share data) 2019 Revenues $ 2,321.2 $ 2,258.7 $ 2,159.9 $ 2,300.8 Net earnings (losses) (1) 440.2 295.5 90.4 31.7 Basic earnings (losses) per share of common stock (1)(2) 30.40 20.46 6.27 2.20 2018 Revenues $ 1,585.0 $ 1,897.7 $ 2,177.4 $ 1,227.1 Net earnings (losses) (1) 171.6 295.1 284.9 (712.1 ) Basic earnings (losses) per share of common stock (1)(2) 11.15 19.44 19.07 (48.30 ) (1) Attributable to Alleghany stockholders. (2) Earnings per share by quarter may not equal the amount for the full year due to the timing of repurchases of Common Stock, as well as rounding. |
Summary of Investments - Other
Summary of Investments - Other Than Investments in Related Parties | 12 Months Ended |
Dec. 31, 2019 | |
Summary Of Investments Other Than Investments In Related Parties [Abstract] | |
Summary of Investments – Other Than Investments in Related Parties | Schedule I – Summary of Investments – Other Than Investments in Related Parties ALLEGHANY CORPORATION AND SUBSIDIARIES December 31, 2019 Type of Investment Cost Fair Value Amount at which shown in the Balance Sheet ($ in millions) Fixed maturities: Bonds: U.S. Government obligations $ 1,198.5 $ 1,215.0 $ 1,215.0 Municipal bonds 2,190.5 2,307.9 2,307.9 Foreign government obligations 675.9 690.7 690.7 U.S. corporate bonds 3,206.2 3,359.0 3,359.0 Foreign corporate bonds 1,348.1 1,377.4 1,377.4 Mortgage and asset-backed securities: RMBS 1,785.1 1,840.4 1,840.4 CMBS 849.9 871.7 871.7 Other asset-backed securities 2,544.5 2,549.6 2,549.6 Fixed maturities 13,798.7 14,211.7 14,211.7 Equity securities: Common stocks: Public utilities — — — Banks, trust and insurance companies 272.0 390.9 390.9 Industrial, miscellaneous and all other 1,345.4 2,110.5 2,110.5 Nonredeemable preferred stocks 7.8 4.1 4.1 Equity securities 1,625.2 2,505.5 2,505.5 Commercial mortgage loans 686.2 686.2 686.2 Other invested assets 573.6 573.6 573.6 Short-term investments 914.8 914.8 914.8 Total investments $ 17,598.5 $ 18,891.8 $ 18,891.8 |
Condensed Financial Information
Condensed Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Information of Registrant | Schedule II – Condensed Financial Information of Registrant Condensed Balance Sheets ALLEGHANY CORPORATION December 31, 2019 and 2018 2019 2018 ($ in thousands) Assets Equity securities (cost: 2019 – $1,708; 2018 – $47,546) $ 4,042 $ 64,121 Debt securities (amortized cost: 2019 – $179,747; 2018 – $90) 182,490 90 Short-term investments 125,412 287,573 Other invested assets 81,728 79,266 Cash 684 331 Property and equipment at cost, net of accumulated depreciation and amortization 4,201 4,588 Other assets 57,415 8,303 Net deferred tax assets 30,118 13,956 Investment in subsidiaries 9,638,153 8,491,404 Total assets $ 10,124,243 $ 8,949,632 Liabilities, Redeemable Noncontrolling Interests and Stockholders’ Equity Senior notes $ 994,241 $ 993,286 Other liabilities 144,382 87,489 Current taxes payable 4,133 6,385 Total liabilities 1,142,756 1,087,160 Redeemable noncontrolling interest 204,753 169,762 Stockholders' equity attributable to Alleghany stockholders 8,776,734 7,692,710 Total liabilities, redeemable noncontrolling interest and stockholders’ equity $ 10,124,243 $ 8,949,632 See accompanying Notes to Condensed Financial Statements Condensed Statements of Earnings ALLEGHANY CORPORATION Year ended December 31, 2019 2018 2017 ($ in thousands) Revenues Net investment income $ 10,790 $ 16,548 $ 13,659 Change in the fair value of equity securities 3,937 (44,780 ) — Net realized capital gains (13,497 ) (265 ) 3,326 Other than temporary impairment losses — — — Noninsurance revenue 85 64 683 Total revenues 1,315 (28,433 ) 17,668 Costs and Expenses Interest expense 52,908 53,121 52,103 Corporate administration 70,692 17,565 45,308 Total costs and expenses 123,600 70,686 97,411 (Losses) before equity in earnings of consolidated subsidiaries and income taxes (122,285 ) (99,119 ) (79,743 ) Equity in earnings of consolidated subsidiaries 1,245,921 138,711 116,433 Earnings before income taxes 1,123,636 39,592 36,690 Income taxes 233,435 (15,062 ) (63,802 ) Net earnings 890,201 54,654 100,492 Net earnings attributable to noncontrolling interest 32,400 15,115 10,359 Net earnings attributable to Alleghany stockholders $ 857,801 $ 39,539 $ 90,133 See accompanying Notes to Condensed Financial Statements Condensed Statements of Cash Flows ALLEGHANY CORPORATION Year ended December 31, 2019 2018 2017 ($ in thousands) Cash flows from operating activities Net earnings $ 890,201 $ 54,654 $ 100,492 Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: Equity in undistributed net (earnings) losses of consolidated subsidiaries (989,486 ) (130,050 ) (154,577 ) Depreciation and amortization 2,249 1,750 1,916 Change in the fair value of equity securities (3,937 ) 44,780 — Net realized capital (gains) losses 13,497 265 (3,326 ) Other than temporary impairment losses — — — Increase (decrease) in other liabilities and taxes payable 24,593 (84,803 ) 25,040 Net adjustments (953,084 ) (168,058 ) (130,947 ) Net cash (used in) provided by operating activities (62,883 ) (113,404 ) (30,455 ) Cash flows from investing activities Purchases of equity securities — (31,125 ) (1,427,194 ) Purchases of debt securities (194,706 ) (3,418 ) — Sales of debt securities 1,186 29,189 4,909 Maturities and redemptions of debt securities 13,344 53 73 Sales of equity securities 64,016 360,579 1,213,974 Net (purchase) sale of short-term investments 162,161 (195,983 ) 143,920 Purchases of property and equipment (124 ) — (76 ) Other, net (33,245 ) (4,926 ) (35,182 ) Net cash (used in) provided by investing activities 12,632 154,369 (99,576 ) Cash flows from financing activities Treasury stock acquisitions (144,422 ) (491,633 ) (16,048 ) Cash dividends paid — (153,967 ) — Capital contributions to consolidated subsidiaries (15,267 ) (175,653 ) (245,000 ) Distributions from consolidated subsidiaries 215,000 751,471 405,000 Other, net (4,707 ) 7,868 1,220 Net cash provided by (used in) financing activities 50,604 (61,914 ) 145,172 Net (decrease) increase in cash 353 (20,949 ) 15,141 Cash at beginning of period 331 21,280 6,139 Cash at end of period $ 684 $ 331 $ 21,280 Supplemental disclosures of cash flow information Cash paid during the period for: Interest paid $ 51,375 $ 51,375 $ 51,375 Income taxes paid (refunds received) (4,189 ) (8,338 ) 8,140 See accompanying Notes to Condensed Financial Statements Notes to Condensed Financial Statements ALLEGHANY CORPORATION 1. Investment in Consolidated Subsidiaries. Reference is made to Note 1 to the Consolidated Financial Statements set forth in Part II, Item 8, “Financial Statements and Supplementary Data” of this Form 10-K. 2. Adoption of New Accounting Guidance. Reference is made to Note 1 to the Consolidated Financial Statements set forth in Part II, Item 8, “Financial Statements and Supplementary Data” of this Form 10-K. 3. Income Taxes. Reference is made to Note 9 to the Consolidated Financial Statements set forth in Part II, Item 8, “Financial Statements and Supplementary Data” of this Form 10-K. 4. Commitments and Contingencies. Reference is made to Note 12 to the Consolidated Financial Statements set forth in Part II, Item 8, “Financial Statements and Supplementary Data” of this Form 10-K. 5. Stockholders’ Equity. Reference is made to Note 10 to the Consolidated Financial Statements set forth in Part II, Item 8, “Financial Statements and Supplementary Data” of this Form 10-K with respect to stockholders’ equity and surplus available for dividend payments to Alleghany from its subsidiaries. 6. Senior Notes. Reference is made to Note 8 to the Consolidated Financial Statements set forth in Part II, Item 8, “Financial Statements and Supplementary Data” of this Form 10-K. 7. Credit Agreement. Reference is made to Note 7 to the Consolidated Financial Statements set forth in Part II, Item 8, “Financial Statements and Supplementary Data” of this Form 10-K. 8. Long-Term Compensation Plans. Reference is made to Note 14 to the Consolidated Financial Statements set forth in Part II, Item 8, “Financial Statements and Supplementary Data” of this Form 10-K. 9. Employee Retirement Benefit Plans. Reference is made to Note 15 to the Consolidated Financial Statements set forth in Part II, Item 8, “Financial Statements and Supplementary Data” of this Form 10-K. |
Supplemental Insurance Informat
Supplemental Insurance Information | 12 Months Ended |
Dec. 31, 2019 | |
Supplementary Insurance Information [Abstract] | |
Supplemental Insurance Information | Schedule III – Supplemental Insurance Information ALLEGHANY CORPORATION AND SUBSIDIARIES At December 31, For the Year Ended December 31, Year Segment Deferred Policy Acquisition Costs Future Policy Benefits, Losses, Claims and Loss Expenses Unearned Premiums Other Policy Claims and Benefits Payable Premium Revenue Net Investment Income Benefits, Claims, Losses and Settlement Expenses Amortization of Deferred Policy Acquisition Costs Other Operating Expenses Premiums Written ($ in millions) 2019 Reinsurance $ 406.7 $ 9,323.8 $ 1,668.1 $ — $ 4,327.0 $ 371.9 $ 2,961.1 $ 1,178.7 $ 228.1 $ 4,495.0 2018 Reinsurance $ 361.2 $ 9,442.2 $ 1,523.9 $ — $ 3,939.0 $ 327.0 $ 2,869.3 $ 1,075.9 $ 206.4 $ 3,969.1 2017 Reinsurance $ 355.9 $ 9,128.0 $ 1,503.6 $ — $ 3,808.7 $ 312.0 $ 2,785.4 $ 1,074.3 $ 212.4 $ 3,810.1 2019 Insurance $ 115.9 $ 2,670.3 $ 910.1 $ — $ 1,151.1 $ 161.3 $ 725.3 $ 214.1 $ 137.8 $ 1,256.7 2018 Insurance $ 103.3 $ 2,874.9 $ 754.2 $ — $ 1,037.2 $ 153.9 $ 651.1 $ 195.5 $ 139.4 $ 1,079.3 2017 Insurance $ 97.4 $ 2,811.1 $ 689.0 $ — $ 1,146.3 $ 122.6 $ 834.8 $ 187.4 $ 177.1 $ 1,155.8 |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Schedule Of Reinsurance Premiums For Insurance Companies [Abstract] | |
Reinsurance | Schedule IV – Reinsurance ALLEGHANY CORPORATION AND SUBSIDIARIES Year ended December 31, Year Line of Business Gross Amount Ceded to Other Companies Assumed from Other Companies Net Amount Percentage of Amount Assumed to Net ($ in millions) 2019 Property and casualty $ 2,114.1 $ 904.8 $ 4,268.8 $ 5,478.1 77.9 % 2018 Property and casualty $ 1,935.3 $ 840.5 $ 3,881.4 $ 4,976.2 78.0 % 2017 Property and casualty $ 1,932.0 $ 767.3 $ 3,790.3 $ 4,955.0 76.5 % |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2019 | |
Valuation And Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | Schedule V – Valuation and Qualifying Accounts ALLEGHANY CORPORATION AND SUBSIDIARIES Year Description Balance at January 1, Charged to Costs and Expenses Charged to Other Accounts Deductions Balance at December 31, ($ in millions) 2019 Allowance for uncollectible reinsurance recoverables $ — $ — $ — $ — $ — Allowance for uncollectible premiums receivable $ 0.4 $ 0.9 $ — $ 0.6 $ 0.7 2018 Allowance for uncollectible reinsurance recoverables $ — $ — $ — $ — $ — Allowance for uncollectible premiums receivable $ 0.5 $ 0.7 $ — $ 0.8 $ 0.4 2017 Allowance for uncollectible reinsurance recoverables $ — $ — $ — $ — $ — Allowance for uncollectible premiums receivable $ 1.0 $ 0.8 $ — $ 1.3 $ 0.5 |
Supplemental Information Concer
Supplemental Information Concerning Insurance Operations | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Information For Property Casualty Insurance Underwriters [Abstract] | |
Supplemental Information Concerning Insurance Operations | SCHEDULE VI – Supplemental Information Concerning Insurance Operations ALLEGHANY CORPORATION AND SUBSIDIARIES At December 31, For the Year Ended December 31, Deferred Policy Acquisition Reserves for Unpaid Claims and Claim Adjustment Discount if Any Deducted, in Reserves for Unpaid Claims and Claim Adjustment Unearned Earned Net Investment Claims and Claim Adjustment Expenses Incurred Related to Amortization of Deferred Policy Acquisition Paid Claims and Claim Adjustment Premiums Year Line of Business Costs Expenses Expenses Premiums Premiums Income Current Year Prior Year Costs Expenses Written ($ in millions) 2019 Property and Casualty Insurance $ 522.6 $ 11,928.4 $ — $ 2,566.2 $ 5,478.1 $ 533.2 $ 3,871.1 $ (184.7 ) $ 1,392.8 $ 3,724.5 $ 5,751.7 2018 Property and Casualty Insurance $ 464.5 $ 12,250.3 $ — $ 2,267.1 $ 4,976.2 $ 480.9 $ 3,849.4 $ (329.0 ) $ 1,271.4 $ 3,257.9 $ 5,048.4 2017 Property and Casualty Insurance $ 453.3 $ 11,871.3 $ — $ 2,182.3 $ 4,955.0 $ 434.6 $ 3,918.8 $ (298.6 ) $ 1,261.7 $ 3,078.4 $ 4,965.9 |
Summary of Significant Accoun_2
Summary of Significant Accounting Principles (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Principles of Financial Statement Presentation | (a) Principles of Financial Statement Presentation Alleghany Corporation (“Alleghany”), a Delaware corporation, owns and supports certain operating subsidiaries and manages investments, anchored by a core position in property and casualty reinsurance and insurance. Through its subsidiary Transatlantic Holdings, Inc. (“TransRe”), an Alleghany subsidiary since March 2012, Alleghany is engaged in the property and casualty reinsurance business. Through its wholly-owned subsidiary Alleghany Insurance Holdings LLC (“AIHL”), Alleghany is engaged in the property and casualty insurance business. AIHL’s insurance operations are principally conducted by its subsidiaries RSUI Group, Inc. (“RSUI”) and CapSpecialty, Inc. (“CapSpecialty”). RSUI and CapSpecialty have been subsidiaries of AIHL since July 2003 and January 2002, respectively. AIHL Re LLC (“AIHL Re”), a captive reinsurance company which provides reinsurance to Alleghany’s current and former insurance operating subsidiaries and affiliates, has been a subsidiary of AIHL since its formation in May 2006. Prior to December 31, 2017, AIHL’s insurance operations also included Pacific Compensation Corporation (“PacificComp”). On December 31, 2017, AIHL sold PacificComp to CopperPoint Mutual Insurance Company (“CopperPoint”) for total cash consideration of approximately $158 million, at which time: (i) approximately $442 million of PacificComp assets, consisting primarily of debt securities, and approximately $316 million of PacificComp liabilities, consisting primarily of loss and loss adjustment expenses (“LAE”) reserves, were transferred to CopperPoint; and (ii) AIHL recorded an after-tax gain of approximately $16 million, which included a tax benefit. In connection with the transaction, AIHL Re provides adverse development reinsurance coverage on PacificComp’s pre-acquisition claims, subject to certain terms and conditions. AIHL Re’s obligations, which are guaranteed by Alleghany, are subject to an aggregate limit of $150.0 million and a final commutation and settlement as of December 31, 2024. Although Alleghany’s primary sources of revenues and earnings are its reinsurance and insurance operations and investments, Alleghany also generates revenues and expenses from a diverse portfolio of middle-market businesses that are owned and managed through its wholly-owned subsidiary Alleghany Capital Corporation (“Alleghany Capital”). Alleghany Capital’s businesses include: • Precision Cutting Technologies, Inc. (“PCT”), a holding company headquartered in Rockford, Illinois, with three operating businesses: (i) Bourn & Koch, Inc., a provider of precision automated machine tool solutions; (ii) Diamond Technology Innovations, Inc., a manufacturer of waterjet orifices and nozzles and a provider of related services; and (iii) Coastal Industrial Distributors, LLC, a provider of high-performance solid carbide end mills; • R.C. Tway Company, LLC (“Kentucky Trailer”), a manufacturer of custom trailers and truck bodies for the moving and storage industry and other markets, headquartered in Louisville, Kentucky; • IPS-Integrated Project Services, LLC (“IPS”), a design, engineering, procurement, construction management, and validation service provider focused on the global pharmaceutical and biotechnology industries, headquartered in Blue Bell, Pennsylvania; • Jazwares, LLC (together with its affiliates, “Jazwares”), a global toy, entertainment and musical instrument company, headquartered in Sunrise, Florida; • WWSC Holdings, LLC (“W&W|AFCO Steel”), a structural steel fabricator and erector, headquartered in Oklahoma City, Oklahoma; • CHECO Holdings, LLC (“Concord”), a hotel management and development company, headquartered in Raleigh, North Carolina; and • a 45 percent equity interest in Wilbert Funeral Services, Inc. (“Wilbert”), a provider of products and services for the funeral and cemetery industries and precast concrete markets, headquartered in Overland Park, Kansas. The results of Concord have been included in Alleghany’s consolidated results beginning with its acquisition by Alleghany Capital on October 1, 2018. Wilbert is accounted for under the equity method of accounting and is included in other invested assets. The results of Wilbert have been included in Alleghany’s consolidated results beginning with its acquisition by Alleghany Capital on August 1, 2017. In addition, Alleghany owns certain other holding-company investments. Alleghany’s wholly-owned subsidiary, Stranded Oil Resources Corporation (“SORC”) is an exploration and production company focused on enhanced oil recovery, headquartered in Golden, Colorado. Alleghany’s wholly-owned subsidiary, Alleghany Properties Holdings LLC (“Alleghany Properties”) owns and manages certain properties in the Sacramento, California region. Alleghany’s public equity investments are managed primarily through Alleghany’s wholly-owned subsidiary Roundwood Asset Management LLC. Unless the context otherwise requires, references to “Alleghany” include Alleghany together with its subsidiaries. The accompanying consolidated financial statements include the results of Alleghany and its wholly-owned and majority-owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”). All material inter-company balances and transactions have been eliminated in consolidation. The portion of stockholders’ equity, net earnings and comprehensive income that is not attributable to Alleghany stockholders is presented on the consolidated balance sheets, the consolidated statements of earnings and comprehensive income and the consolidated statements of changes in stockholders’ equity as noncontrolling interests. Because all noncontrolling interests have the option to sell their ownership interests to Alleghany in the future (generally through 2024), the portion of stockholders’ equity that is not attributable to Alleghany stockholders is presented on the consolidated balance sheets and the consolidated statements of changes in stockholders’ equity as redeemable noncontrolling interests for all periods presented. In addition, Alleghany accretes the redeemable noncontrolling interests up to its future estimated redemption value over the period from the date of issuance to the earliest redemption date. The redemption value of the equity interests is generally based on the respective subsidiary’s earnings in specified periods preceding the redemption date, calculated based on either a specified formula or an independent fair market valuation. During 2019, the noncontrolling interests outstanding were approximately as follows: Kentucky Trailer - 23 percent; IPS - 15 percent; W&W|AFCO Steel - 20 percent; and Concord - 15 percent. In connection with an acquisition on October 1, 2019, the noncontrolling interests of Jazwares were increased from approximately 23 percent to approximately 25 percent. Effective April 1, 2019, all noncontrolling interest holders of PCT have exercised their repurchase options and sold their ownership interests to PCT. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Alleghany relies on historical experience and on various other assumptions that it believes to be reasonable under the circumstances to make judgments about the carrying value of assets and liabilities and reported revenues and expenses that are not readily apparent from other sources. Actual results may differ materially from those reported results to the extent that those estimates and assumptions prove to be inaccurate. Changes in estimates are reflected in the consolidated statements of earnings and comprehensive income in the period in which the changes are made. |
Investments | (b) Investments Investments consist of debt securities, equity securities, short-term investments, commercial mortgage loans and other invested assets. Alleghany considers all of its marketable debt securities and short-term investments as available-for-sale (“AFS”). Debt securities consist of securities with an initial fixed maturity of more than one year. Debt securities typically take the form of bonds and redeemable preferred stock. Equity securities generally consist of securities that represent ownership interests in an enterprise. Equity securities typically take the form of common stock or perpetual preferred stock. Mutual funds and exchange-traded securities are also classified as equity securities, including those that invest mostly in debt securities. Commencing January 1, 2018, all marketable equity securities are measured at fair value with changes in fair value recognized in net earnings, and prior to that date, were considered AFS. Short-term investments include commercial paper, certificates of deposit, money market instruments and any fixed maturity investment with an initial maturity of one year or less. AFS securities are recorded at fair value. Unrealized gains and losses during the year, net of the related tax effect, for AFS securities, as well as partnership investments that Alleghany accounts for as AFS, are excluded from earnings and reflected in comprehensive income, and the cumulative effect is reported as a separate component of stockholders’ equity until realized. If a decline in fair value is deemed to be other than temporary, the investment is written down to its fair value and the amount of the write-down is recorded as an other than temporary impairment (“OTTI”) loss on the statement of earnings. In addition, any portion of such decline related to debt securities that is believed to arise from factors other than credit is recorded as a component of other comprehensive income rather than against earnings. Commercial mortgage loans are carried at unpaid principal balance, less allowance for loan losses. The allowance for loan losses is a valuation allowance for incurred credit losses when management believes the uncollectibility of a loan balance is probable. Subsequent recoveries, if any, are credited to the allowance. Interest income on loans is accrued as earned. Other invested assets include invested assets not identified above, primarily related to: (i) equity investments in operating companies where Alleghany has significant influence (an aggregate common stock position held at or above 20 percent is presumed to convey significant influence); (ii) partnership investments (including hedge funds and private equity funds); and (iii) non-marketable equity investments. Equity investments in operating companies where Alleghany has significant influence are accounted for using the equity method. Partnership investments are accounted for at fair value, with changes in fair value recognized in net earnings, or using the equity method where Alleghany has significant influence. Non-marketable equity investments are accounted for at fair value, with changes in fair value recognized in net earnings. Net realized gains and losses on investments are determined in accordance with the specific identification method. Net investment income consists primarily of: (i) interest income from debt securities, short-term investments, commercial mortgage loans, funds withheld by cedants and cash, including any premium amortization or discount accretion; (ii) dividend income from equity securities; and (iii) investment income from other invested assets, which includes results arising from partnership investments, whether accounted for under the equity method or at fair value. Interest income is accrued when earned. Premiums and discounts arising from the purchase of certain debt securities are treated as a yield adjustment over the estimated useful life of the securities, adjusted for anticipated prepayments using the retrospective interest method. Under this method, the effective yield on a security is estimated. Such estimates are based on the prepayment terms of the security, past actual cash flows and assumptions as to future expected cash flow. The future expected cash flow assumptions consider various prepayment assumptions based on historical experience, as well as current market conditions. Periodically, the effective yield is re-estimated to reflect actual prepayments and updated future expected cash flow assumptions. Upon a re-estimation, a security’s book value is restated at the most recently calculated effective yield, assuming that yield had been in effect since the security was purchased. This treatment results in an increase or decrease to net investment income (accretion of premium or amortization of discount) at the new measurement date. With respect to callable debt securities purchased at a premium to par value, the amortization period for that premium is the earliest call date. See Note 4 for additional information regarding investments. |
Fair value | (c) Fair value Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between willing, able and knowledgeable market participants at the measurement date. Fair value measurements are not adjusted for transaction costs. In addition, a three-tiered hierarchy for inputs is used in management’s determination of fair value of financial instruments that emphasizes the use of observable inputs over the use of unobservable inputs by requiring that the observable inputs be used when available. Observable inputs are market participant assumptions based on market data obtained from sources independent of the reporting entity. Unobservable inputs are the reporting entity’s own assumptions about market participant assumptions based on the best information available under the circumstances. In assessing the appropriateness of using observable inputs in making its fair value determinations, Alleghany considers whether the market for a particular security is “active” or “inactive” based on all the relevant facts and circumstances. A market may be considered to be inactive if there are relatively few recent transactions or if there is a significant decrease in market volume. Furthermore, Alleghany considers whether observable transactions are “orderly” or not. Alleghany does not consider a transaction to be orderly if there is evidence of a forced liquidation or other distressed condition; as such, little or no weight is given to that transaction as an indicator of fair value. Although Alleghany is responsible for the determination of the fair value of its financial assets and the supporting methodologies and assumptions, it employs third-party valuation service providers to gather, analyze and interpret market information and derive fair values based upon relevant methodologies and assumptions for individual instruments. When those providers are unable to obtain sufficient market observable information upon which to estimate the fair value for a particular security, fair value is determined either by requesting a quote, which is generally non-binding, from brokers who are knowledgeable about these securities or by employing widely accepted valuation models. Valuation service providers typically obtain data about market transactions and other key valuation model inputs from multiple sources and, through the use of widely accepted valuation models, provide a single fair value measurement for individual securities for which a fair value has been requested under the terms of service agreements. The inputs used by the valuation service providers include, but are not limited to, market prices from recently completed transactions and transactions of comparable securities, interest rate yield curves, credit spreads, currency rates and other market observable information, as applicable. The valuation models take into account, among other things, market observable information as of the measurement date as well as the specific attributes of the security being valued including its term, interest rate, credit rating, industry sector and, when applicable, collateral quality and other issue or issuer specific information. When market transactions or other market observable data is limited, the extent to which judgment is applied in determining fair value is greatly increased. The three-tiered hierarchy used in management’s determination of fair value is broken down into three levels based on the reliability and observability of inputs as follows: • Level 1: Valuations are based on unadjusted quoted prices in active markets that Alleghany has the ability to access for identical, unrestricted assets and do not involve any meaningful degree of judgment. An active market is defined as a market where transactions for the financial instrument occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Alleghany’s Level 1 assets include publicly traded common stocks and mutual funds (which are included on the consolidated balance sheet in equity securities) where Alleghany’s valuations are based on quoted market prices. • Level 2: Valuations are based on direct and indirect observable inputs other than quoted market prices included in Level 1. Level 2 inputs include quoted prices for similar assets in active markets and inputs other than quoted prices that are observable for the asset, such as the terms of the security and market-based inputs. Terms of the security include coupon, maturity date and any special provisions that may, for example, enable the investor, at its election, to redeem the security prior to its scheduled maturity date (such provisions may apply to all debt securities except U.S. Government obligations). Market-based inputs include interest rates and yield curves that are observable at commonly quoted intervals and current credit rating(s) of the security. Market-based inputs may also include credit spreads of all debt securities except U.S. Government obligations, and currency rates for certain foreign government obligations and foreign corporate bonds denominated in foreign currencies. Fair values are determined using a market approach that relies on the securities’ relationships to quoted prices for similar assets in active markets, as well as the other inputs described above. In determining the fair values for the vast majority of commercial mortgage-backed securities (“CMBS”) and other asset- backed securities, as well as a small portion of residential mortgage-backed securities (“RMBS”), an income approach is used to corroborate and further support the fair values determined by the market approach. The income approach primarily involves developing a discounted cash flow model using the future projected cash flows of the underlying collateral, and the terms of the security. Level 2 assets generally include short-term investments and most debt securities. Alleghany’s Level 2 liabilities consist of the Senior Notes, as defined in Note 1(n). • Level 3: Valuations are based on techniques that use significant inputs that are unobservable. The valuation of Level 3 assets requires the greatest degree of judgment. These measurements may be made under circumstances in which there is little, if any, market activity for the asset. Alleghany’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment. In making the assessment, Alleghany considers factors specific to the asset. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement is classified is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Assets classified as Level 3 principally include other asset-backed securities (primarily, collateralized loan obligations) and, to a lesser extent, U.S. and foreign corporate bonds (including privately issued securities), CMBS and commercial mortgage loans. Mortgage-backed and asset-backed securities are initially valued at the transaction price. Subsequently, Alleghany uses widely accepted valuation practices that produce a fair value measurement. The vast majority of fair values are determined using an income approach. The income approach primarily involves developing a discounted cash flow model using the future projected cash flows of the underlying collateral, as well as other inputs described below. A few Level 3 valuations are based entirely on non-binding broker quotes. These securities consist primarily of mortgage-backed and asset-backed securities where reliable pool and loan level collateral information cannot be reasonably obtained, and as such, an income approach is not feasible. Since Level 3 valuations are based on techniques that use significant inputs that are unobservable with little or no market activity, the fair values under the market approach for Level 3 securities are less credible than under the income approach; however, the market approach, where feasible, is used to corroborate the fair values determined by the income approach. The market approach primarily relies on the securities’ relationships to quoted transaction prices for similarly structured instruments. To the extent that transaction prices for similarly structured instruments are not available for a particular security, other market approaches are used to corroborate the fair values determined by the income approach, including option adjusted spread analyses. Unobservable inputs, significant to the measurement and valuation of mortgage-backed and asset-backed securities, are generally used in the income approach, and include assumptions about prepayment speed and collateral performance, including default, delinquency and loss severity rates. Significant changes to any one of these inputs, or combination of inputs, could significantly change the fair value measurement for these securities. The impact of prepayment speeds on fair value is dependent on a number of variables including whether the securities were purchased at a premium or discount. A decrease in interest rates generally increases the assumed rate of prepayments, and an increase in interest rates generally decreases the assumed speed of prepayments. Increased prepayments increase the yield on securities purchased at a discount and reduce the yield on securities purchased at a premium. In a decreasing prepayment environment, yields on securities purchased at a discount are reduced but are increased for securities purchased at a premium. Changes in default assumptions on underlying collateral are generally accompanied by directionally similar changes in other collateral performance factors, but generally result in a directionally opposite change in prepayment assumptions. Alleghany’s Level 3 liabilities consist of the debt of Alleghany Capital’s operating subsidiaries. Alleghany employs specific control processes to determine the reasonableness of the fair values of its financial assets and liabilities. Alleghany’s processes are designed to ensure that the values received or internally estimated are accurately recorded and that the data inputs and the valuation techniques used are appropriate, consistently applied and that the assumptions are reasonable and consistent with the objective of determining fair value. Alleghany assesses the reasonableness of individual security values received from valuation service providers through various analytical techniques. In addition, Alleghany validates the reasonableness of fair values by comparing information obtained from Alleghany’s valuation service providers to other third-party valuation sources for selected securities. Alleghany also validates prices obtained from brokers for selected securities through reviews by those who have relevant expertise and who are independent of those charged with executing investing transactions. In addition to such procedures, Alleghany reviews the reasonableness of its classification of securities within the three-tiered hierarchy to ensure that the classification is consistent with GAAP. See Note 3 for additional information regarding fair value. |
Cash | (d) Cash Cash includes all deposit balances with a bank that are available for immediate withdrawal, whether interest-bearing or non-interest bearing. |
Premiums and Unearned Premiums | (e) Premiums and Unearned Premiums Premiums are recognized as revenue on a pro rata basis over the term of an insurance policy. Assumed reinsurance premiums written and earned are based on reports received from ceding companies for pro rata treaty contracts and are generally recorded as written based on contract terms for excess-of-loss treaty contracts. Premiums are earned ratably over the terms of the related coverages. Unearned premiums and ceded unearned premiums represent the portion of gross premiums written and ceded premiums written, respectively, related to the unexpired periods of such coverages. Assumed reinsurance premiums written and earned, along with related costs, for which data has not been reported by the ceding companies, are estimated based on historical patterns and other relevant factors. These estimates may change when actual data for such estimated items becomes available. Premium balances receivable are reported net of an allowance for estimated uncollectible premium amounts. Such allowance is based upon an ongoing review of amounts outstanding, length of collection periods, the creditworthiness of the insured and other relevant factors. Amounts deemed to be uncollectible are written off against the allowance. |
Reinsurance Ceded | (f) Reinsurance Ceded Reinsurance is used to mitigate the exposure to losses, manage capacity and protect capital resources. Reinsuring loss exposures does not relieve a ceding entity from its obligations to policyholders and cedants. Reinsurance recoverables (including amounts related to incurred but not reported (“IBNR”) claims) and ceded unearned premiums are reported as assets. To minimize exposure to losses related to a reinsurer’s inability to pay, the financial condition of such reinsurer is evaluated initially upon placement of the reinsurance and periodically thereafter. In addition to considering the financial condition of a reinsurer, the collectability of the reinsurance recoverables is evaluated (and where appropriate, whether an allowance for estimated uncollectible reinsurance recoverables is to be established) based upon a number of other factors. Such factors include the amounts outstanding, length of collection periods, disputes, any collateral or letters of credit held and other relevant factors. To the extent that an allowance for uncollectible reinsurance recoverable is established, amounts deemed to be uncollectible are written off against the allowance for estimated uncollectible reinsurance recoverables. Alleghany currently has no allowance for uncollectible reinsurance recoverables. Ceded premiums written are recorded in accordance with the applicable terms of the various reinsurance contracts and ceded premiums earned are charged against revenue over the period of the various reinsurance contracts. This also generally applies to reinstatement premiums paid to a reinsurer, which arise when contractually-specified ceded loss triggers have been breached. Ceded commissions reduce commissions, brokerage and other underwriting expenses and ceded losses incurred reduce net loss and LAE incurred over the applicable periods of the various reinsurance contracts with third-party reinsurers. If premiums or commissions are subject to adjustment (for example, retrospectively-rated or experience-rated), the estimated ultimate premium or commission is recognized over the period of the contract. Amounts recoverable from reinsurers are estimated in a manner consistent with the claim liability associated with the reinsured business and consistent with the terms of the underlying reinsurance contract. See Note 5 for additional information on reinsurance ceded and reinsurance recoverables. |
Deferred Acquisition Costs | (g) Deferred Acquisition Costs Acquisition costs related to unearned premiums that vary with, and are directly related to, the production of such premiums are deferred. Furthermore, such deferred costs: (i) represent only incremental, direct costs associated with the successful acquisition of a new or renewal insurance or reinsurance contract; (ii) are essential to the contract transaction; (iii) would not have been incurred had the contract transaction not occurred; and (iv) are related directly to the acquisition activities involving underwriting, policy issuance and processing. Acquisition costs principally relate to commissions. To a lesser extent, acquisition costs can include premium taxes and certain qualifying underwriting expenses. For insurance policies written, acquisition costs are generally incurred directly and include commissions, premium taxes and certain qualifying underwriting expenses. For reinsurance contracts written, acquisition costs are generally incurred through brokerage commissions and indirectly through ceding commissions, which are deferred. Deferred acquisition costs are amortized to expense as the related premiums are earned, generally over a period of one year. Deferred acquisition costs are reviewed at least annually to determine their recoverability from future income, including investment income. If any such costs are determined not to be recoverable they are charged to expense. Anticipated net loss and LAE and estimated remaining costs of servicing the contracts are considered when evaluating recoverability of deferred acquisition costs. |
Property and Equipment | (h) Property and Equipment Property and equipment is carried at cost, net of accumulated depreciation and amortization. Depreciation of buildings and equipment is principally calculated using the straight-line method over the estimated useful life of the respective assets. Estimated useful lives for such assets range from three to 20 years. Amortization of leasehold improvements is principally calculated using the straight-line method over the estimated useful life of the leasehold improvement or the life of the lease, whichever is less. Rental expense on operating leases is recorded on a straight-line basis over the term of the lease, regardless of the timing of actual lease payments. Commencing January 1, 2019, all leases with terms of more than one year are recorded as lease liabilities and corresponding right-of-use assets, and are recorded as a component of other liabilities and other assets, respectively. See Note 12(b) for further information on Alleghany’s leases. |
Goodwill and Other Intangible Assets | (i) Goodwill and Other Intangible Assets Goodwill and other intangible assets, net of amortization, are recorded as a consequence of business acquisitions. Goodwill represents the excess, if any, of the amount paid to acquire subsidiaries and other businesses over the fair value of their net assets as of the date of acquisition. Other intangible assets are recorded at their fair value as of the acquisition date. A significant amount of judgment is needed to determine the fair value as of the date of acquisition of other intangible assets and the net assets acquired in a business acquisition. The determination of the fair value of other intangible assets and net assets often involves the use of valuation models and other estimates, which involve many assumptions and variables and are inherently subjective. The fair value estimates may include the use of financial projections and discount rates. Other intangible assets that are not deemed to have an indefinite useful life are amortized over their estimated useful lives. Goodwill and intangible assets that have an indefinite useful life are not subject to amortization. Goodwill and other intangible assets deemed to have an indefinite useful life are tested annually for impairment in the fourth quarter. Goodwill and other intangible assets are also tested whenever events and changes in circumstances suggest that the carrying amount may not be recoverable. A significant amount of judgment is required in performing goodwill and other intangible asset impairment tests. These tests may include estimating the fair value of Alleghany’s operating subsidiaries, which include Alleghany Capital’s operating subsidiaries, and other intangible assets. The fair value estimates may include the use of financial projections and discount rates. If it is determined that an asset has been impaired, the asset is written down by the amount of the impairment, with a corresponding charge to net earnings. Subsequent reversal of any impairment charge is not permitted. With respect to goodwill, a qualitative assessment is first made to determine whether it is necessary to perform quantitative testing. This initial assessment includes, among other factors, consideration of: (i) past, current and projected future earnings and equity; (ii) recent trends and market conditions; and (iii) valuation metrics involving similar companies that are publicly-traded and acquisitions of similar companies, if available. If this initial qualitative assessment indicates that the fair value of an operating subsidiary may be less than its carrying amount, a second step is taken, involving a comparison between the estimated fair value of the operating subsidiary with its respective carrying amount including goodwill. Under GAAP, fair value refers to the amount for which the entire operating subsidiary may be bought or sold. The methods for estimating the fair value of an operating subsidiary values include asset and liability fair values and other valuation techniques, such as discounted cash flows and multiples of earnings or revenues. All of these methods involve significant estimates and assumptions. If the carrying value exceeds estimated fair value, there is an indication of potential impairment, and a third step is performed to measure the amount of impairment. The third step involves calculating an implied fair value of goodwill by measuring the excess of the estimated fair value of the operating subsidiary over the aggregate estimated fair value of the individual assets less liabilities. If the carrying value of goodwill exceeds the implied fair value of goodwill, an impairment charge is recorded for the excess. See Note 2 for additional information on goodwill and other intangible assets. |
Income Taxes | (j) Income Taxes Alleghany files a consolidated federal income tax return with its subsidiaries. Alleghany’s consolidated federal income tax return includes as part of its taxable income all items of income of non-U.S. subsidiaries that are subject to current U.S. income tax, currently pursuant to provisions of the Internal Revenue Code. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amount of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Current tax liabilities or assets are recognized for the estimated taxes payable or refundable on tax returns for the current year. A valuation allowance is provided when it is more likely than not that some portion of the deferred tax assets will not be realized. This determination is based upon a review of all available information, both positive and negative, including Alleghany’s earnings history, the timing, character and amount of future earnings potential, the reversal of taxable temporary differences and the tax planning strategies available. See Note 9 for additional information on income taxes. |
Loss Reserves | (k) Loss Reserves The reserves for loss and LAE represent management’s best estimate of the ultimate cost of all reported and unreported losses incurred through the balance sheet date. The reserves for loss and LAE include but are not limited to: (i) reports and individual case estimates received from ceding companies with respect to assumed reinsurance business; (ii) the accumulation of individual estimates for claims reported with respect to direct insurance business; (iii) estimates for IBNR claims based on past experience, modified for current trends and industry data; and (iv) estimates of expenses for investigating and settling claims based on past experience. The methods used to determine such estimates and to establish the resulting reserves are continually reviewed and updated. Any adjustments are reflected in current income. Net loss and LAE consist of the estimated ultimate cost of settling claims incurred within the reporting period (net of related reinsurance recoverable), including IBNR claims, plus changes in estimates of prior period losses. The estimation of the liability for unpaid loss and LAE is inherently difficult and subjective, especially in view of changing legal and economic environments that impact the development of loss reserves, and therefore, quantitative techniques frequently have to be supplemented by subjective considerations and managerial judgment. In addition, trends that have affected development of liabilities in the past may not necessarily occur or affect liability development to the same degree in the future. While the reserving process is difficult for the insurance business, the inherent uncertainties of estimating loss reserves are even greater for the reinsurance business, due primarily to the longer-term nature of most of the business, the diversity of development patterns among different types of reinsurance contracts, the necessary reliance on the ceding companies for information regarding reported claims and differing reserving practices among ceding companies, which may change without notice. TransRe writes a significant amount of non-proportional assumed casualty reinsurance as well as proportional assumed reinsurance of excess liability business. Claims from such classes can exhibit greater volatility over time than most other classes due to their low frequency, high severity nature and loss cost trends that are more difficult to predict. Net loss and LAE also include amounts for risks related to asbestos-related illness and environmental impairment. Each of Alleghany’s reinsurance and insurance subsidiaries establishes reserves on its balance sheet for unpaid loss and LAE related to its property and casualty reinsurance and insurance contracts. As of any balance sheet date, there are claims that have not yet been reported, and some claims may not be reported for many years after the date a loss occurs. As a result of this historical pattern, the liability for unpaid loss and LAE includes significant estimates for IBNR claims. Additionally, reported claims are in various stages of the settlement process. Each claim is settled individually based upon its merits, and certain claims may take years to settle, especially if legal action is involved. As a result, the liabilities for unpaid loss and LAE include significant judgments, assumptions and estimates made by management related to the actual ultimate losses that will arise from the claims. As noted above, as of any balance sheet date, not all claims that have occurred have been reported to Alleghany, and if reported may not have been settled. The time period between the occurrence of a loss and the time it is settled is referred to as the “claim tail.” Reported losses for the shorter-tailed classes, such as property, generally reach the ultimate level of incurred losses in a relatively short period of time and as such, are only relevant for the more recent accident years. Casualty claims can have a very long claim tail, in certain situations extending for many years. In addition, casualty claims are more susceptible to litigation and the legal environment and can be significantly affected by changing contract interpretations, all of which contribute to extending the claim tail. For long-tail casualty lines of business, estimating the ultimate liabilities for unpaid loss and LAE is a more complex process and depends on a number of factors, including the line and volume of the business involved. Alleghany’s loss reserve review processes use actuarial methods that vary by operating subsidiary and line of business and produce point estimates for each class of business. The actuarial methods used include the following methods: • Reported Loss Development Method: • Paid Development Method: • Expected Loss Ratio Method: expected loss ratios are applied to premiums earned, based on historical company experience, or historical insurance industry results when company experience is deemed not to be sufficient; and • Bornhuetter-Ferguson Method: See Note 6 and Note 12(c) for additional information on loss reserves. |
Earnings Per Share of Common Stock Attributable to Alleghany Stockholders | (l) Earnings Per Share of Common Stock Attributable to Alleghany Stockholders Basic earnings per share of common stock is based on the average number of shares of outstanding common stock, par value $1.00 per share, of Alleghany (“Common Stock”) during the period, retroactively adjusted for stock dividends, where applicable. Diluted earnings per share of Common Stock are based on those shares used to calculate basic earnings per share of Common Stock plus the dilutive effect of stock-based compensation awards, retroactively adjusted for stock dividends, where applicable. See Note 11 for additional information on earnings per share. |
Stock-Based Compensation Plans | (m) Stock-Based Compensation Plans The cost resulting from all stock-based compensation transactions is recognized in the financial statements, with fair value as the measurement objective in accounting for stock-based compensation arrangements. The fair value-based measurement method applies in accounting for stock-based compensation transactions with employees. Non-employee directors are treated as employees for accounting purposes. See Note 14 for information on Alleghany’s long-term compensation plans, which include stock-based compensation plans. |
Senior Notes and Other Debt | (n) Senior Notes and Other Debt Debt consists of senior notes issued by Alleghany (the “Alleghany Senior Notes”), senior notes issued by TransRe (the “TransRe Senior Notes,” and together with the Alleghany Senior Notes, the “Senior Notes”) and other debt. Other debt consists primarily of borrowings at Alleghany Capital’s subsidiaries, and is generally used to fund acquisitions and support working capital needs. The Senior Notes and other debt are carried at unpaid principal balance, including any unamortized premium or discount and any unamortized debt issuance costs. See Note 8 for additional information on the Senior Notes and other debt. |
Currency Translation | (o) Currency Translation Assets and liabilities denominated in foreign currencies are translated into U.S. dollars at period-end exchange rates. Income and expense accounts are translated at average exchange rates for the year. The resulting unrealized currency translation gain or loss for functional currencies is recorded, net of tax, in accumulated other comprehensive income, a component of stockholders’ equity. Transaction gains and losses on assets and liabilities denominated in foreign currencies are recorded as a component of net realized capital gains during the period in which they occur. |
Noninsurance Revenue and Other Operating Expenses | (p) Noninsurance Revenue and Other Operating Expenses Noninsurance revenues relate primarily to manufactured products and services sold by Alleghany Capital’s subsidiaries. Manufactured products primarily include fabricated steel, toys, trailers and machine tools. Services primarily include facility construction, technical services and hotel management. Noninsurance revenues and related operating expenses arising from the sale of manufactured goods and services are generally recognized as the transfer of goods and services to customers takes place. Payment terms for products and services vary by the type of product or service offered. Noninsurance revenues reflect the payment or payments that are expected to be received from the customers for those goods and services. Other operating expenses consist of the cost of goods and services sold and selling, general and administrative expenses. Other operating expenses also include: (i) advertising and marketing costs; and (ii) finders’ fees, legal and accounting costs and other transaction-related expenses, all of which are recognized as incurred. Noninsurance revenues and related operating expenses from manufactured products are generally recognized at the time title transfers to the customer, which typically occurs at the point of shipment or delivery to the customer, depending on the terms of the sales arrangement. For certain products, partial payment in the form of a deposit is required before the products are delivered to the customer and such deposits are recorded as a component of other liabilities. Noninsurance revenues and related operating expenses from services are generally recognized as the services are performed. Services provided pursuant to a contract are recognized either over the contract period or upon completion of the elements specified in the contract, depending on the terms of the contract. For certain customer contracts in the technical service and hotel management businesses, construction-related costs and recurring hotel operating expenses are incurred and recognized as other operating expenses, but are passed through to the customer and correspondingly recognized as noninsurance revenues. |
Reclassification | (q) Reclassification Certain prior year amounts have been reclassified to conform to the 2019 presentation of the financial statements. |
Recent Accounting Standards | (r) Recent Accounting Standards Recently Adopted In February 2018, the Financial Accounting Standards Board (the “FASB”) issued guidance on certain tax effects caused by the Tax Cuts and Jobs Act of 2017 (the “Tax Act”). The Tax Act, among other things, reduced the U.S. corporate federal income tax rate for the 2018 tax year from 35.0 percent to 21.0 percent. Under such circumstances, GAAP requires that the value of deferred tax assets and liabilities be reduced through tax expense. The new guidance provides an option to reclassify to retained earnings any stranded tax amounts that remain in accumulated other comprehensive income, either retrospectively or at the beginning of the period in which the adoption is elected. This guidance became effective in the first quarter of 2018 for public entities, with early adoption permitted in 2017. Alleghany adopted this guidance in the first quarter of 2018 and has elected to reclassify to retained earnings stranded tax amounts that remain in accumulated other comprehensive income, in the amount of approximately $135 million, as of January 1, 2018. See Note 10(b) for additional information on accumulated other comprehensive income. See Note 9 for additional information on the Tax Act and its impact on Alleghany. In August 2017, the FASB issued guidance that simplifies the requirements to achieve hedge accounting, better reflects the economic results of hedging in the financial statements and improves the alignment between hedge accounting and a company’s risk management activities. This guidance became effective in the first quarter of 2019 for public entities, with early adoption permitted. Alleghany adopted this guidance in the first quarter of 2019 and the implementation did not have a material impact on its results of operations and financial condition. In March 2017, the FASB issued guidance that reduces the amortization period for the premium on certain purchased callable debt securities to the earliest call date. The guidance applies specifically to noncontingent call features that are callable at a predetermined and fixed price and date. The accounting for purchased callable debt securities held at a discount is not affected. This guidance became effective in the first quarter of 2019 for public entities, with early adoption permitted. Alleghany adopted this guidance in the fourth quarter of 2017 and recorded a cumulative effect reduction of approximately $13 million directly to opening 2017 retained earnings and an offsetting increase in opening 2017 accumulated other comprehensive income. The implementation did not have a material impact on Alleghany’s results of operations and financial condition. In February 2016, the FASB issued guidance on leases. Under this guidance, a lessee is required to recognize lease liabilities and corresponding right-of-use assets for leases with terms of more than one year, whereas under the prior guidance, a lessee is only required to recognize assets and liabilities for those leases qualifying as capital leases. This guidance also requires new disclosures about the amount, timing and uncertainty of cash flows arising from leases. The accounting by lessors remains largely unchanged. This guidance became effective in the first quarter of 2019 for public entities, with early adoption permitted. A modified retrospective transition approach was elected for all leases in existence as of, or entered into after, the beginning of the earliest comparative period presented in the financial statements. Alleghany adopted this guidance in the first quarter of 2019, and the implementation did not have a material impact on its results of operations and financial condition. As part of its implementation, Alleghany elected to not separate lease components from non-lease components (such as office cleanings, security and maintenance services provided by Alleghany’s lessors for certain of its leases). Alleghany also elected the package of practical expedients under the transition guidance, which allowed Alleghany to not reevaluate existing lease classifications, among others. As of January 1, 2019, Alleghany’s adoption of this guidance resulted in recognition of an additional right-of-use asset of approximately $0.2 billion and a corresponding lease liability of $0.2 billion. See Note 12(b) for further information on Alleghany’s leases. In January 2016, the FASB issued guidance that changes the recognition and measurement of certain financial instruments. This guidance requires investments in equity securities (except those accounted for under the equity method of accounting, but including partnership investments not accounted for under the equity method) to be measured at fair value with changes in fair value recognized in net earnings. For equity securities that do not have readily determinable fair values, measurement may be at cost, adjusted for any impairment and changes resulting from observable price changes for a similar investment of the same issuer. This guidance also changes the presentation and disclosure of financial instruments by: (i) requiring that financial instrument disclosures of fair value use the exit price notion; (ii) requiring separate presentation of financial assets and financial liabilities by measurement category and form, either on the balance sheet or the accompanying notes to the financial statements; (iii) requiring separate presentation in other comprehensive income for the portion of the change in a liability’s fair value resulting from instrument-specific credit risk when an election has been made to measure the liability at fair value; and (iv) eliminating the requirement to disclose the methods and significant assumptions used to estimate the fair value for financial instruments measured at amortized cost on the balance sheet. This guidance became effective for fiscal years beginning after December 15, 2017 for public entities, including interim periods within those fiscal years. Except for the change in presentation for instrument-specific credit risk, this guidance does not permit early adoption. Alleghany adopted this guidance in the first quarter of 2018. As of January 1, 2018, approximately $736 million of net unrealized gains of equity securities, net of deferred taxes, were reclassified from accumulated other comprehensive income to retained earnings. Subsequently, all changes in unrealized gains or losses of equity securities, net of deferred taxes, were presented in the Consolidated Statements of Earnings rather than the Consolidated Statements of Comprehensive Income, under the caption “change in the fair value of equity securities.” Results arising from partnership investments, whether accounted for under the equity method or at fair value, continue to be reported as a component of net investment income. The implementation did not have a material impact on Alleghany’s financial condition. See Note 4 for further information on Alleghany’s equity securities, and Note 10(b) for further information on accumulated other comprehensive income. In May 2014, the FASB, together with the International Accounting Standards Board, issued guidance on the recognition of revenue from contracts with customers. Under this guidance, revenue is recognized as the transfer of goods and services to customers takes place and in amounts that reflect the payment or payments that are expected to be received from the customers for those goods and services. This guidance also requires new disclosures about revenue. Revenue related to insurance and reinsurance contracts and revenue from investments are not impacted by this guidance, whereas noninsurance revenue arising from the sale of manufactured goods and services is generally included within the scope of this guidance. This guidance, and all related amendments, became effective in the first quarter of 2018 for public entities, with early adoption permitted in 2017. Alleghany adopted this guidance in the first quarter of 2018 using the modified retrospective transition approach and the implementation did not have a material impact on Alleghany’s results of operations and financial condition. See Note 13 for further information on Alleghany’s noninsurance revenues. Future Application of Accounting Standards In June 2016, the FASB issued guidance on credit losses. Under this guidance, a company is required to measure all expected credit losses on loans, reinsurance recoverables and other financial assets accounted for at cost or amortized cost, as applicable. Estimates of expected credit losses are to be based on historical experience, current conditions and reasonable and supportable forecasts. Credit losses for securities accounted for on an AFS basis are to be measured in a manner similar to GAAP as currently applied and cannot exceed the amount by which the fair value is less than the amortized cost, although the new guidance removes the length of time a security has been in an unrealized loss position as a possible indication of a credit impairment. Credit losses for all financial assets are to be recorded through an allowance for credit losses. Subsequent reversals in credit loss estimates are permitted and are to be recognized in earnings. This guidance also requires new disclosures about the significant estimates and judgments used in estimating credit losses, as well as the credit quality of financial assets. This guidance is effective in the first quarter of 2020 for public entities, with early adoption permitted. Alleghany will adopt this guidance in the first quarter of 2020. As of January 1, 2020, Alleghany estimates that the adoption of this guidance will result in an increase in allowances for credit losses on certain financial assets accounted for at cost or amortized cost of approximately $4 million and an after-tax reduction in stockholders’ equity of approximately $3 million. See Note 4 for further information on Alleghany’s investments. See Note 5(b) for further information on Alleghany’s reinsurance recoverables. In January 2017, the FASB issued guidance that simplifies the subsequent measurement of goodwill. Under this guidance, if an initial qualitative assessment indicates that the fair value of an operating subsidiary may be less than its carrying amount, an impairment charge is recognized for the amount by which the carrying amount of the operating subsidiary exceeds its estimated fair value. Any resulting impairment loss recognized cannot exceed the total amount of goodwill associated with the operating subsidiary. This guidance is effective in the first quarter of 2020 for public entities, with early adoption permitted. Alleghany will adopt this guidance in the first quarter of 2020 and does not currently believe that the implementation will have a material impact on its results of operations and financial condition. See Note 2 for further information on Alleghany’s goodwill. In August 2018, the FASB issued guidance that changes the financial statement disclosure requirements for measuring fair value. With respect to financial instruments classified as “Level 3” in the fair value disclosure hierarchy, the guidance requires certain additional disclosures for public entities related to amounts included in other comprehensive income and significant unobservable inputs used in the valuation, while removing disclosure requirements related to an entity’s overall valuation processes. The guidance also removes certain disclosure requirements related to transfers between financial instruments classified as “Level 1” and “Level 2” and provides clarification on certain other existing disclosure requirements. This guidance became effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted with respect to any eliminated or modified disclosures. Alleghany will adopt this guidance in the first quarter of 2020 and does not currently believe that the implementation will have a material impact on its results of operations and financial condition. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Asset, Net of Accumulated Amortization Expense on Consolidated Balance Sheets | The following table presents the amount of goodwill and intangible assets, net of accumulated amortization expense, reported on Alleghany’s consolidated balance sheets as of December 31, 2019 and 2018: December 31, 2019 December 31, 2018 Gross Carrying Value Accumulated Amortization Net Carrying Value (1) Gross Carrying Value Accumulated Amortization Net Carrying Value (1) ($ in millions) Insurance Segment (2) $ 49.0 $ — $ 49.0 $ 49.0 $ — $ 49.0 Insurance Segment - Intangible assets: Agency relationships 16.6 12.4 4.2 18.4 11.4 7.0 State insurance licenses 25.1 — 25.1 25.1 — 25.1 Trade name 35.5 — 35.5 35.5 — 35.5 Brokerage and reinsurance relationships 33.8 33.8 — 33.8 33.8 — Renewal rights 25.1 24.5 0.6 25.1 24.1 1.0 Other 4.1 4.1 — 4.1 4.1 — Total insurance segment intangibles 140.2 74.8 65.4 142.0 73.4 68.6 Total insurance segment goodwill and other intangibles $ 189.2 $ 74.8 $ 114.4 $ 191.0 $ 73.4 $ 117.6 Reinsurance Segment (2) $ 8.8 $ — $ 8.8 $ 8.8 $ — $ 8.8 Reinsurance Segment - Intangible assets: Value of business in-force 291.4 291.4 — 291.4 291.4 — Loss and LAE reserves (98.8 ) (85.7 ) (13.1 ) (98.8 ) (82.6 ) (16.2 ) State and foreign insurance licenses 19.0 — 19.0 19.0 — 19.0 Trade name 50.0 — 50.0 50.0 — 50.0 Renewal rights 53.0 30.7 22.3 51.5 26.0 25.5 Leases (25.8 ) (21.6 ) (4.2 ) (28.1 ) (19.5 ) (8.6 ) Other 15.1 10.9 4.2 14.6 10.0 4.6 Total reinsurance segment intangibles 303.9 225.7 78.2 299.6 225.3 74.3 Total reinsurance segment goodwill and other intangibles $ 312.7 $ 225.7 $ 87.0 $ 308.4 $ 225.3 $ 83.1 Alleghany Capital (2)(3) $ 465.2 $ — $ 465.2 $ 397.3 $ — $ 397.3 Alleghany Capital (3) Trade name 171.8 0.6 171.2 176.9 0.1 176.8 License agreements 152.1 32.6 119.5 68.2 22.6 45.6 Customer relationships 296.4 47.5 248.9 215.1 27.7 187.4 Other 25.8 23.0 2.8 21.2 20.8 0.4 Total Alleghany Capital intangibles 646.1 103.7 542.4 481.4 71.2 410.2 Total Alleghany Capital goodwill and other intangibles $ 1,111.3 $ 103.7 $ 1,007.6 $ 878.7 $ 71.2 $ 807.5 Alleghany consolidated: Goodwill $ 523.0 $ — $ 523.0 $ 455.1 $ — $ 455.1 Intangible assets 1,090.2 404.2 686.0 923.0 369.9 553.1 Goodwill and other intangibles assets $ 1,613.2 $ 404.2 $ 1,209.0 $ 1,378.1 $ 369.9 $ 1,008.2 (1) Goodwill and intangible assets have been reduced by amounts written-down in prior periods, as applicable. (2) See Note 13 for additional information on Alleghany’s segments of business. (3) Represents goodwill and other intangible assets related to the acquisition of: (i) Jazwares on April 15, 2016 and its subsequent acquisitions; (ii) W&W|AFCO Steel on April 28, 2017 and its subsequent acquisition; (iii) Concord on October 1, 2018; (iv) PCT on April 26, 2012 and its subsequent acquisitions; (v) IPS on October 31, 2015 and its subsequent acquisition; and (vi) Kentucky Trailer on August 30, 2013 and its subsequent acquisitions. Balances as of December 31, 2019 also reflect the finalization of provisional estimates that existed as of December 31, 2018. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Carrying Value and Estimated Fair Value of Consolidated Financial Instruments | The following table presents the carrying value and estimated fair value of Alleghany’s consolidated financial instruments as of December 31, 2019 and 2018: December 31, 2019 December 31, 2018 Carrying Value Fair Value Carrying Value Fair Value ($ in millions) Assets Investments (excluding equity method investments and loans) (1) $ 17,632.3 $ 17,632.3 $ 16,291.3 $ 16,291.3 Liabilities Senior Notes and other debt (2) $ 1,751.1 $ 1,962.7 $ 1,669.0 $ 1,795.5 (1) This table includes debt and equity securities, as well as partnership and non-marketable equity investments carried at fair value that are included in other invested assets. This table excludes investments accounted for using the equity method and commercial mortgage loans that are carried at unpaid principal balance. The fair value of short-term investments approximates amortized cost. The fair value of all other categories of investments is discussed below. (2) See Note 8 for additional information on the Senior Notes and other debt. |
Financial Instruments Measured at Fair Value and Level of Fair Value Hierarchy of Inputs | The following tables present Alleghany’s financial instruments measured at fair value and the level of the fair value hierarchy of inputs used as of December 31, 2019 and 2018: Level 1 Level 2 Level 3 Total ($ in millions) As of December 31, 2019 Equity securities: Common stock $ 2,498.1 $ 3.3 $ — $ 2,501.4 Preferred stock — 2.1 2.0 4.1 Total equity securities 2,498.1 5.4 2.0 2,505.5 Debt securities: U.S. Government obligations — 1,215.0 — 1,215.0 Municipal bonds — 2,307.9 — 2,307.9 Foreign government obligations — 690.7 — 690.7 U.S. corporate bonds — 2,754.0 605.0 3,359.0 Foreign corporate bonds — 1,208.7 168.7 1,377.4 Mortgage and asset-backed securities: RMBS (1) — 1,838.5 1.9 1,840.4 CMBS — 865.9 5.8 871.7 Other asset-backed securities (2) — 1,692.9 856.7 2,549.6 Total debt securities — 12,573.6 1,638.1 14,211.7 Short-term investments — 914.8 — 914.8 Other invested assets (3) — — 0.3 0.3 Total investments (excluding equity method investments and loans) $ 2,498.1 $ 13,493.8 $ 1,640.4 $ 17,632.3 Senior Notes and other debt $ — $ 1,595.6 $ 367.1 $ 1,962.7 Level 1 Level 2 Level 3 Total ($ in millions) As of December 31, 2018 Equity securities: Common stock $ 3,563.9 $ 3.5 $ — $ 3,567.4 Preferred stock — — 5.4 5.4 Total equity securities 3,563.9 3.5 5.4 3,572.8 Debt securities: U.S. Government obligations — 1,022.4 — 1,022.4 Municipal bonds — 2,214.7 — 2,214.7 Foreign government obligations — 947.9 — 947.9 U.S. corporate bonds — 1,959.6 425.7 2,385.3 Foreign corporate bonds — 1,226.4 126.9 1,353.3 Mortgage and asset-backed securities: RMBS (1) — 1,387.9 — 1,387.9 CMBS — 533.3 — 533.3 Other asset-backed securities (2) — 712.3 1,266.9 1,979.2 Total debt securities — 10,004.5 1,819.5 11,824.0 Short-term investments — 893.8 — 893.8 Other invested assets (3) — — 0.7 0.7 Total investments (excluding equity method investments and loans) $ 3,563.9 $ 10,901.8 $ 1,825.6 $ 16,291.3 Senior Notes and other debt $ — $ 1,510.5 $ 285.0 $ 1,795.5 (1) Primarily includes government agency pass-through securities guaranteed by a government agency or government sponsored enterprise, among other types of RMBS. (2) Includes $834.2 million and $1,266.9 million of collateralized loan obligations as of December 31, 2019 and 2018, respectively. (3) Includes partnership and non-marketable equity investments accounted for at fair value and excludes investments accounted for using the equity method. |
Reconciliations of Changes in Level Three Assets Measured at Fair Value | The following tables present reconciliations of the changes during 2019 and 2018 in Level 3 assets measured at fair value: Debt Securities Mortgage and asset - backed Year Ended December 31, 2019 Preferred Stock U.S. Corporate Bonds Foreign Corporate Bonds RMBS CMBS Other Asset- backed Securities Other Invested Assets (1) Total ($ in millions) Balance as of January 1, 2019 $ 5.4 $ 425.7 $ 126.9 $ — $ — $ 1,266.9 $ 0.7 $ 1,825.6 Net realized/unrealized gains (losses) included in: Net earnings (2) (1.7 ) (6.5 ) (5.9 ) — — (1.1 ) (0.1 ) (15.3 ) Other comprehensive income (loss) — 39.4 7.5 0.1 — 16.7 (0.3 ) 63.4 Purchases 0.3 184.8 42.7 1.8 6.0 82.3 0.1 318.0 Sales — — (5.6 ) — — (378.3 ) (0.1 ) (384.0 ) Issuances — — — — — — — — Settlements — (37.0 ) (10.0 ) — — (116.7 ) — (163.7 ) Transfers into Level 3 — 1.3 14.7 — — 5.8 — 21.8 Transfers out of Level 3 (2.0 ) (2.7 ) (1.6 ) — (0.2 ) (18.9 ) — (25.4 ) Balance as of December 31, 2019 $ 2.0 $ 605.0 $ 168.7 $ 1.9 $ 5.8 $ 856.7 $ 0.3 $ 1,640.4 Debt Securities Mortgage and asset-backed Year Ended December 31, 2018 Preferred Stock U.S. Corporate Bonds Foreign Corporate Bonds RMBS CMBS Other Asset- backed Securities Other Invested Assets (1) Total ($ in millions) Balance as of January 1, 2018 $ 1.9 $ 260.0 $ 75.2 $ 161.8 $ 1.6 $ 1,101.3 $ 7.5 $ 1,609.3 Net realized/unrealized gains (losses) included in: Net earnings (2) — (0.9 ) (0.1 ) (0.3 ) — 1.6 1.2 1.5 Other comprehensive income (loss) (2.7 ) (11.5 ) (2.9 ) (5.3 ) — (42.3 ) (4.2 ) (68.9 ) Purchases 2.0 182.3 58.9 — — 846.3 — 1,089.5 Sales (0.1 ) — — — — (65.0 ) (5.7 ) (70.8 ) Issuances — — — — — — — — Settlements — (4.8 ) (4.0 ) (5.6 ) — (564.0 ) — (578.4 ) Transfers into Level 3 4.3 1.9 — — — — 58.8 65.0 Transfers out of Level 3 — (1.3 ) (0.2 ) (150.6 ) (1.6 ) (11.0 ) (56.9 ) (221.6 ) Balance as of December 31, 2018 $ 5.4 $ 425.7 $ 126.9 $ — $ — $ 1,266.9 $ 0.7 $ 1,825.6 (1) Includes partnership and non-marketable equity investments accounted for at fair value. (2) There were no OTTI losses recorded in net earnings related to Level 3 instruments still held as of December 31, 2019 and 2018. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments [Abstract] | |
Amortized Cost or Cost and Fair Value of Available For Sale Securities | The following tables present the amortized cost or cost and the fair value of AFS securities as of December 31, 2019 and 2018: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value ($ in millions) As of December 31, 2019 Debt securities: U.S. Government obligations $ 1,198.5 $ 19.3 $ (2.8 ) $ 1,215.0 Municipal bonds 2,190.5 118.7 (1.3 ) 2,307.9 Foreign government obligations 675.9 16.4 (1.6 ) 690.7 U.S. corporate bonds 3,206.2 155.1 (2.3 ) 3,359.0 Foreign corporate bonds 1,348.1 32.2 (2.9 ) 1,377.4 Mortgage and asset-backed securities: RMBS 1,785.1 56.1 (0.8 ) 1,840.4 CMBS 849.9 23.2 (1.4 ) 871.7 Other asset-backed securities (1) 2,544.5 24.8 (19.7 ) 2,549.6 Total debt securities 13,798.7 445.8 (32.8 ) 14,211.7 Short-term investments 914.8 — — 914.8 Total investments $ 14,713.5 $ 445.8 $ (32.8 ) $ 15,126.5 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value ($ in millions) As of December 31, 2018 Debt securities: U.S. Government obligations $ 1,042.4 $ 2.4 $ (22.4 ) $ 1,022.4 Municipal bonds 2,177.5 44.4 (7.2 ) 2,214.7 Foreign government obligations 939.0 12.3 (3.4 ) 947.9 U.S. corporate bonds 2,431.4 13.2 (59.3 ) 2,385.3 Foreign corporate bonds 1,363.0 9.1 (18.8 ) 1,353.3 Mortgage and asset-backed securities: RMBS 1,392.4 10.3 (14.8 ) 1,387.9 CMBS 536.9 2.8 (6.4 ) 533.3 Other asset-backed securities (1) 2,013.3 4.4 (38.5 ) 1,979.2 Total debt securities 11,895.9 98.9 (170.8 ) 11,824.0 Short-term investments 893.8 — — 893.8 Total investments $ 12,789.7 $ 98.9 $ (170.8 ) $ 12,717.8 (1) Includes $834.2 million and $1,266.9 million of collateralized loan obligations as of December 31, 2019 and 2018, respectively. |
Amortized Cost or Cost and Estimated Fair Value of Debt Securities by Contractual Maturity | The following table presents the amortized cost or cost and estimated fair value of debt securities by contractual maturity as of December 31, 2019. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Cost Fair Value ($ in millions) As of December 31, 2019 Short-term investments due in one year or less $ 914.8 $ 914.8 Mortgage and asset-backed securities (1) 5,179.5 5,261.7 Debt securities with maturity dates: One year or less 597.2 598.9 Over one through five years 3,416.0 3,489.9 Over five through ten years 2,592.4 2,705.1 Over ten years 2,013.6 2,156.1 Total debt securities $ 13,798.7 $ 14,211.7 (1) Mortgage and asset-backed securities by their nature do not generally have single maturity dates. |
Net Investment Income | The following table presents net investment income for 2019, 2018 and 2017: Year Ended December 31, 2019 2018 2017 ($ in millions) Interest income $ 499.5 $ 420.8 $ 412.1 Dividend income 37.9 78.5 47.4 Investment expenses (28.9 ) (31.5 ) (28.1 ) Pillar Investments (1) 15.0 (6.5 ) (1.7 ) Limited partnership interests in certain subsidiaries of Ares (1) — 20.2 3.3 Other investment results 26.7 19.0 18.0 Total $ 550.2 $ 500.5 $ 451.0 (1) See Note 4(i) for discussion of the Pillar Investments, as defined therein, and limited partnership interests in certain subsidiaries of Ares. |
Summary of Increases (Decreases) in Fair Value of Equity Securities | The following table presents increases (decreases) in the fair value of equity securities for 2019 and 2018: Year Ended December 31, 2019 2018 ($ in millions) Change in the fair value of equity securities sold during the period $ 59.1 $ (175.6 ) Change in the fair value of equity securities held at the end of the period 650.6 (53.4 ) Change in the fair value of equity securities $ 709.7 $ (229.0 ) |
Amounts of Gross Realized Capital Gains and Gross Realized Capital Losses of Available For Sale Securities | The following table presents the amounts of gross realized capital gains and gross realized capital losses for 2019, 2018 and 2017: Year Ended December 31, 2019 2018 2017 ($ in millions) Gross realized capital gains $ 62.4 $ 86.9 $ 236.7 Gross realized capital losses (68.9 ) (90.1 ) (129.5 ) Net realized capital gains $ (6.5 ) $ (3.2 ) $ 107.2 |
Gross Unrealized Losses and Related Fair Values for AFS Securities Grouped by Duration of Time in Continuous Unrealized Loss Position | The following tables present gross unrealized losses and related fair values for Alleghany’s AFS securities, grouped by duration of time in a continuous unrealized loss position, as of December 31, 2019 and 2018: Less Than 12 Months 12 Months or More Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses ($ in millions) As of December 31, 2019 Debt securities: U.S. Government obligations $ 120.3 $ 2.0 $ 99.7 $ 0.8 $ 220.0 $ 2.8 Municipal bonds 90.2 1.3 4.3 — 94.5 1.3 Foreign government obligations 198.5 1.2 33.8 0.4 232.3 1.6 U.S. corporate bonds 113.8 1.6 27.6 0.7 141.4 2.3 Foreign corporate bonds 212.0 2.3 66.9 0.6 278.9 2.9 Mortgage and asset-backed securities: RMBS 48.7 0.3 48.6 0.5 97.3 0.8 CMBS 126.8 1.4 1.2 — 128.0 1.4 Other asset-backed securities 422.9 2.7 715.9 17.0 1,138.8 19.7 Total temporarily impaired securities $ 1,333.2 $ 12.8 $ 998.0 $ 20.0 $ 2,331.2 $ 32.8 Less Than 12 Months 12 Months or More Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses ($ in millions) As of December 31, 2018 Debt securities: U.S. Government obligations $ 78.5 $ 0.9 $ 690.5 $ 21.5 $ 769.0 $ 22.4 Municipal bonds 312.4 2.5 202.5 4.7 514.9 7.2 Foreign government obligations 60.7 0.1 186.7 3.3 247.4 3.4 U.S. corporate bonds 1,187.9 39.4 379.7 19.9 1,567.6 59.3 Foreign corporate bonds 501.5 9.7 349.1 9.1 850.6 18.8 Mortgage and asset-backed securities: RMBS 397.7 6.4 225.9 8.4 623.6 14.8 CMBS 199.1 1.3 109.5 5.1 308.6 6.4 Other asset-backed securities 1,442.8 36.7 121.6 1.8 1,564.4 38.5 Total temporarily impaired securities $ 4,180.6 $ 97.0 $ 2,265.5 $ 73.8 $ 6,446.1 $ 170.8 |
Reinsurance Ceded (Tables)
Reinsurance Ceded (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Insurance [Abstract] | |
Reinsurance Recoverables | Amounts recoverable from reinsurers are recognized in a manner consistent with the claims liabilities associated with the reinsurance placement and presented on the balance sheet as reinsurance recoverables. Such balances as of December 31, 2019 and 2018 are presented in the table below: As of December 31, 2019 2018 ($ in millions) Reinsurance recoverables on paid losses $ 98.1 $ 63.9 Ceded outstanding loss and LAE 1,583.9 1,857.4 Total $ 1,682.0 $ 1,921.3 |
Information Regarding Concentration of Reinsurance Recoverables and Ratings Profile of its Reinsurers | The following table presents information regarding concentration of Alleghany’s reinsurance recoverables and the ratings profile of its reinsurers as of December 31, 2019: Reinsurer (1) Rating (2) Amount Percentage ($ in millions) Syndicates at Lloyd's of London A (Excellent) $ 134.7 8.0 % Kane SAC Ltd, Rondout Segregated Account (3) not rated 134.6 8.0 % PartnerRe Ltd A (Excellent) 95.1 5.7 % Swiss Reinsurance Company A+ (Superior) 91.7 5.5 % Fairfax Financial Holdings Ltd A (Excellent) 89.6 5.3 % Kane SAC Ltd, Bowery Segregated Account (3) not rated 86.4 5.1 % Third Point Reinsurance Group A- (Excellent) 81.1 4.8 % RenaissanceRe Holdings Ltd A+ (Superior) 79.8 4.8 % W.R. Berkley Corporation A+ (Superior) 68.4 4.1 % Liberty Mutual A (Excellent) 60.7 3.6 % All other reinsurers 759.9 45.1 % Total reinsurance recoverables (4) $ 1,682.0 100.0 % Secured reinsurance recoverables (3) $ 680.5 40.5 % (1) Reinsurance recoverables reflect amounts due from one or more reinsurance subsidiaries of the listed company. (2) Represents the A.M. Best Company, Inc. financial strength rating for the applicable reinsurance subsidiary or subsidiaries from which the reinsurance recoverable is due. (3) Represents reinsurance recoverables secured by funds held, trust agreements or letters of credit. (4) Approximately 66 percent of Alleghany’s reinsurance recoverables balance as of December 31, 2019 was due from reinsurers having an A.M. Best Company, Inc. financial strength rating of A (Excellent) or higher, with a majority of the other reinsurance recoverables being secured by funds held, trust agreements or letters of credit. |
Property and Casualty Premiums Written and Earned | The following table presents property and casualty premiums written and earned for 2019, 2018 and 2017: Year Ended December 31, 2019 2018 2017 ($ in millions) Gross premiums written – direct $ 1,800.3 $ 1,537.8 $ 1,528.7 Gross premiums written – assumed 4,856.1 4,357.8 4,168.2 Ceded premiums written (904.7 ) (847.2 ) (731.0 ) Net premiums written $ 5,751.7 $ 5,048.4 $ 4,965.9 Gross premiums earned – direct $ 2,114.1 $ 1,935.3 $ 1,932.0 Gross premiums earned – assumed 4,268.8 3,881.4 3,790.3 Ceded premiums earned (904.8 ) (840.5 ) (767.3 ) Net premiums earned $ 5,478.1 $ 4,976.2 $ 4,955.0 |
Liability for Loss and LAE (Tab
Liability for Loss and LAE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Activity in Liability for Loss and Loss Adjustment Expense | The following table presents the activity in the liability for loss and LAE in 2019, 2018 and 2017: Year Ended December 31, 2019 2018 2017 ($ in millions) Reserves as of January 1 $ 12,250.3 $ 11,871.3 $ 11,087.2 Less: reinsurance recoverables (1) 1,857.4 1,650.1 1,236.2 Net reserves as of January 1 10,392.9 10,221.2 9,851.0 Other adjustments (2.3 ) 0.9 (293.7 ) (2) Incurred loss and LAE, net of reinsurance, related to: Current year 3,871.1 3,849.4 3,918.8 Prior years (184.7 ) (329.0 ) (298.6 ) Total incurred loss and LAE, net of reinsurance 3,686.4 3,520.4 3,620.2 Paid loss and LAE, net of reinsurance, related to: (3) Current year 884.6 838.9 853.2 Prior years 2,839.9 2,419.0 2,225.2 Total paid loss and LAE, net of reinsurance 3,724.5 3,257.9 3,078.4 Foreign currency exchange rate effect (8.0 ) (91.7 ) 122.1 Net reserves as of December 31 10,344.5 10,392.9 10,221.2 Reinsurance recoverables as of December 31 (1) 1,583.9 1,857.4 1,650.1 Reserves as of December 31 $ 11,928.4 $ 12,250.3 $ 11,871.3 (1) Reinsurance recoverables in this table include only ceded loss and LAE reserves. (2) Primarily represents the impact on net reserves arising from the sale of PacificComp. (3) Includes paid loss and LAE, net of reinsurance, related to commutations. |
(Favorable) Unfavorable Prior Accident Year Loss Reserve Development | The following table presents the (favorable) unfavorable prior accident year loss reserve development for 2019, 2018 and 2017: Year Ended December, 2019 2018 2017 ($ in millions) Reinsurance Segment Property: Catastrophe events $ (6.8 ) (1) $ (20.2 ) (2) $ (22.2 ) (3) Non-catastrophe (39.4 ) (4) (64.7 ) (5) (72.3 ) (6) Total (46.2 ) (84.9 ) (94.5 ) Casualty & other: Malpractice Treaties (7) (1.4 ) (3.4 ) (5.0 ) Ogden rate impact (8) — — 24.4 Other (148.2 ) (9) (177.8 ) (10) (174.4 ) (11) Total (149.6 ) (181.2 ) (155.0 ) Total Reinsurance Segment (195.8 ) (266.1 ) (249.5 ) Insurance Segment RSUI: Casualty (16.3 ) (12) (27.8 ) (13) (38.9 ) (14) Property and other (1.2 ) (15) (30.9 ) (16) (4.3 ) (17) Total (17.5 ) (58.7 ) (43.2 ) CapSpecialty: Ongoing lines of business 26.1 (18) (4.2 ) (19) (3.4 ) (20) Terminated Program (21) 3.0 — — Asbestos-related illness and environmental impairment liability (0.5 ) — — Total 28.6 (4.2 ) (3.4 ) PacificComp — — (2.5 ) (22) Total incurred related to prior years $ (184.7 ) $ (329.0 ) $ (298.6 ) (1) Primarily reflects favorable prior accident year loss reserve development related to wildfires in California in the 2018 accident year, partially offset by unfavorable prior accident year loss reserve development related to Typhoon Jebi in the 2018 accident year and Hurricane Irma in 2017 accident year. (2) Primarily reflects favorable prior accident year loss reserve development related to Hurricane Harvey in the 2017 accident year and catastrophes in the 2016 accident year, partially offset by unfavorable prior accident year loss reserve development related to Hurricanes Maria and Irma in the 2017 accident year. (3) Reflects favorable prior accident year loss reserve development related to several catastrophes primarily in the 2016 accident year. (4) Primarily reflects favorable prior accident year loss reserve development in the 2016 and 2017 accident years, partially offset by unfavorable prior accident year loss reserve development in the 2018 accident year. (5) Primarily reflects favorable prior accident year loss reserve development in the 2015 and 2016 accident years, partially offset by unfavorable prior accident year loss reserve development in the 2017 accident year. (6) Reflects favorable prior accident year loss reserve development primarily in the 2011 through 2016 accident years. (7) Represents certain medical malpractice treaties pursuant to which the increased underwriting profits created by the favorable prior accident year loss reserve development are largely retained by the cedants. As a result, the favorable prior accident year loss reserve development is largely offset by an increase in profit commission expense incurred when such favorable prior accident year loss reserve development occurs. (8) Represents unfavorable prior accident year loss reserve development related to the U.K. Ministry of Justice’s reduction in the discount rate used to calculate lump-sum bodily injury payouts in personal injury insurance claims in the U.K to negative 0.75 percent as of March 20, 2017 from 2.50 percent. (9) Primarily reflects favorable prior accident year loss reserve development in the longer-tailed casualty lines of business in the 2014 and prior accident years and, to a lesser extent, shorter-tailed lines of business in the 2014 and prior accident years, partially offset by unfavorable prior accident year loss reserve development in the marine and aviation lines of business in the 2018 accident year. (10) Primarily reflects favorable prior accident year loss reserve development in the longer-tailed casualty lines of business in the 2002 through 2010 accident years and in the shorter-tailed casualty lines of business (specifically, ocean marine, automobile liability and accident & health) in the 2017 accident year, partially offset by unfavorable prior accident year loss reserve development in the professional liability lines of business in the 2015 accident year. (11) Primarily reflects favorable prior accident year loss reserve development in: (i) longer-tailed professional liability and general liability lines of business in the 2003 through 2012 accident years; and (ii) shorter-tailed casualty lines of business in the 2010 through 2014 accident years; partially offset by unfavorable prior accident year loss reserve development in shorter-tailed casualty lines of business in the 2015 and 2016 accident years. (12) Primarily reflects favorable prior accident year loss reserve development in the directors’ and officers’ liability and umbrella/excess lines of business in the 2011 through 2015 accident years, partially offset by unfavorable prior accident year loss reserve development in the professional liability lines of business in the 2016 through 2018 accident years. (13) Primarily reflects favorable prior accident year loss reserve development in the umbrella/excess lines of business in the 2005 through 2012 accident years, partially offset by unfavorable prior accident year loss reserve development in the directors’ and officers’ liability lines of business in the 2009, 2012 and 2016 accident years. (14) Primarily reflects favorable prior accident year loss reserve development in the umbrella/excess lines of business in the 2005 through 2011 accident years. (15) Primarily reflects favorable prior accident year loss reserve development related to Superstorm Sandy in the 2012 accident year, Hurricanes Florence and Michael in the 2018 accident year and Hurricanes Harvey and Maria in the 2017 accident year, partially offset by assumed property reinsurance lines of business from both catastrophe and non-catastrophe losses in the 2018 accident year. (16) Primarily reflects favorable prior accident year loss reserve development related to Hurricane Irma in the 2017 accident year and, to a lesser extent, Hurricane Matthew in the 2016 accident year, as well as various other losses not classified as catastrophes in recent accident years. (17) Primarily reflects favorable prior accident year catastrophe loss reserve development in the 2016 accident year, partially offset by unfavorable prior accident year property loss reserve development in the binding authority lines of business primarily in the 2015 and 2016 accident years. (18) Primarily reflects unfavorable prior accident year loss reserves development related to the professional liability and other casualty lines of business in the 2015 through 2018 accident years. ( 19 ) Primarily reflects favorable prior accident year loss reserve development in the surety lines of business in the 2016 and 2017 accident years. (20 ) Primarily reflects favorable prior accident year loss reserve development in the casualty lines of business in the 2010, 2014, 2015 and 2016 accident years. (21 ) Represents certain specialty lines of business written through a program administrator in connection with a terminated program in the 2010 and 2009 accident years and reflects favorable loss emergence compared with loss emergence patterns assumed in earlier periods for such business. (22) Primarily reflects favorable prior accident year loss reserve development in the 2013 and prior accident years. |
Loss and LAE Reserve Summary and Reconciliation to Consolidated Balance Sheet | Loss and LAE Reserve Summary and Reconciliation to Consolidated Balance Sheet Unpaid loss and LAE as of December 31, 2019 (1) Gross Loss and LAE Reserves Reinsurance Recoverables on Unpaid Losses Net Loss and LAE Reserves ($ in millions) Reinsurance Segment: Property $ 1,965.5 604.3 $ 1,361.2 Casualty & other - Longer-Tailed Lines of Business 4,691.7 114.4 4,577.3 Casualty & other - Shorter-Tailed Lines of Business 2,666.6 188.8 2,477.8 9,323.8 907.5 8,416.3 Insurance Segment: RSUI - Property 444.6 142.3 302.3 RSUI - Casualty 1,801.0 564.1 1,236.9 RSUI 2,245.6 706.4 1,539.2 CapSpecialty 424.7 35.7 389.0 2,670.3 742.1 1,928.2 Eliminations (65.7 ) (65.7 ) — Total $ 11,928.4 $ 1,583.9 $ 10,344.5 (1) Includes unallocated LAE, which aggregate to 1.1 percent of gross loss and LAE reserves as of December 31, 2019. Net loss and LAE reserves by component are shown in the preceding tables, and consolidated gross loss and LAE reserves is presented in the consolidated balance sheets. |
Average Historical Loss and LAE Duration | The following table presents supplemental information about average historical loss and LAE duration, net of reinsurance, as of December 31, 2019. Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance As of December 31, 2019 Years 1 2 3 4 5 6 7 8 9 10 Reinsurance Segment: Property 28.5 % 38.9 % 17.0 % 7.5 % 3.5 % 1.9 % 1.4 % 1.2 % 0.1 % 1.1 % Casualty & other - Longer-Tailed Lines of Business 4.0 % 8.7 % 13.0 % 15.0 % 13.4 % 10.9 % 7.0 % 4.7 % 4.6 % 3.6 % Casualty & other - Shorter-Tailed Lines of Business 34.7 % 27.5 % 13.4 % 6.8 % 4.2 % 2.3 % 1.5 % 1.0 % 0.8 % 0.7 % Insurance Segment: RSUI - Property 40.8 % 33.7 % 10.8 % 5.7 % 2.4 % 2.2 % 0.7 % 0.5 % 0.2 % 0.1 % RSUI - Casualty 3.6 % 16.0 % 19.6 % 15.4 % 12.1 % 7.0 % 4.1 % 5.3 % 1.7 % 3.5 % CapSpecialty 21.7 % 24.4 % 16.3 % 13.6 % 9.9 % 4.7 % 2.4 % 1.9 % 0.4 % 0.2 % |
Reinsurance Segment | Property | |
Supplemental Information About Incurred and Paid Loss and LAE Development and Reconciliation to Consolidated Balance Sheet | Reinsurance Segment Property Incurred Loss and LAE, Net of Reinsurance As of Year Ended December 31, December 31, 2019 Accident Year 2010 (unaudited) 2011 (unaudited) 2012 (unaudited) 2013 (unaudited) 2014 (unaudited) 2015 (unaudited) 2016 (unaudited) 2017 (unaudited) 2018 (unaudited) 2019 IBNR ($ in millions) 2010 $ 615.6 $ 527.1 $ 528.0 $ 540.4 $ 581.2 $ 606.0 $ 609.9 $ 613.0 $ 605.3 $ 601.3 $ 8.8 2011 1,351.2 1,342.3 1,269.4 1,240.7 1,235.2 1,217.1 1,210.9 1,209.6 1,207.7 0.8 2012 697.2 579.1 530.3 495.6 478.1 469.4 462.5 460.3 4.0 2013 501.2 470.6 444.6 422.1 406.8 403.6 398.1 2.4 2014 496.4 464.8 451.3 435.2 429.8 425.1 6.0 2015 368.8 332.0 320.6 306.3 301.9 3.6 2016 684.1 647.2 596.7 587.9 19.2 2017 1,174.6 1,179.5 1,148.3 30.2 2018 1,152.7 1,169.4 137.0 2019 988.7 355.4 Total Incurred Loss and LAE for the 2010 through 2019 accident years $ 7,288.7 Paid Loss and LAE, Net of Reinsurance Year Ended December 31, Accident Year 2010 (unaudited) 2011 (unaudited) 2012 (unaudited) 2013 (unaudited) 2014 (unaudited) 2015 (unaudited) 2016 (unaudited) 2017 (unaudited) 2018 (unaudited) 2019 ($ in millions) 2010 $ 169.3 $ 349.0 $ 418.9 $ 472.3 $ 513.5 $ 540.1 $ 563.7 $ 571.5 $ 575.1 $ 581.9 2011 407.8 796.4 1,014.3 1,129.2 1,171.0 1,187.2 1,195.0 1,199.7 1,195.3 2012 90.3 268.9 377.8 416.7 438.0 448.0 451.2 460.1 2013 113.1 277.4 361.0 389.8 396.7 399.7 401.4 2014 109.4 297.6 360.0 382.9 394.0 397.3 2015 96.0 217.7 278.3 303.1 307.6 2016 210.5 429.8 504.8 535.1 2017 324.5 818.5 977.9 2018 309.5 811.8 2019 265.1 Cumulative Paid Loss and LAE for the 2010 through 2019 accident years $ 5,933.5 Total incurred loss and LAE for the 2010 through 2019 accident years $ 7,288.7 Cumulative paid loss and LAE for the 2010 through 2019 accident years 5,933.5 Unpaid loss and LAE, net of reinsurance recoverables, for accident years prior to 2010 6.0 Unpaid loss and LAE, net of reinsurance recoverables, as of December 31, 2019 $ 1,361.2 |
Reinsurance Segment | Casualty & Other | Longer Tailed Lines of Business | |
Supplemental Information About Incurred and Paid Loss and LAE Development and Reconciliation to Consolidated Balance Sheet | Reinsurance Segment Casualty & other – Longer-Tailed Lines of Business (1) Incurred Loss and LAE, Net of Reinsurance As of Year Ended December 31, December 31, 2019 Accident Year 2010 (unaudited) 2011 (unaudited) 2012 (unaudited) 2013 (unaudited) 2014 (unaudited) 2015 (unaudited) 2016 (unaudited) 2017 (unaudited) 2018 (unaudited) 2019 IBNR ($ in millions) 2010 $ 1,098.6 $ 1,101.9 $ 1,090.7 $ 1,063.5 $ 1,015.5 $ 999.3 $ 977.6 $ 962.9 $ 959.7 $ 951.3 $ 102.0 2011 996.0 1,009.6 994.6 974.6 959.1 949.9 942.6 925.5 920.6 116.5 2012 877.5 877.5 875.9 860.8 833.1 829.8 832.4 826.4 121.3 2013 798.6 802.2 799.2 777.5 776.7 783.0 767.4 184.0 2014 801.8 791.1 794.3 793.9 790.3 784.8 205.2 2015 794.8 799.0 797.0 793.7 799.1 226.4 2016 776.7 776.8 787.4 807.8 268.0 2017 764.4 765.7 783.4 385.8 2018 727.3 741.6 510.4 2019 759.7 672.5 Total Incurred Loss and LAE for the 2010 through 2019 accident years $ 8,142.1 Paid Loss and LAE, Net of Reinsurance Year Ended December 31, Accident Year 2010 (unaudited) 2011 (unaudited) 2012 (unaudited) 2013 (unaudited) 2014 (unaudited) 2015 (unaudited) 2016 (unaudited) 2017 (unaudited) 2018 (unaudited) 2019 ($ in millions) 2010 $ 33.8 $ 108.4 $ 208.5 $ 322.3 $ 438.7 $ 573.9 $ 644.3 $ 688.9 $ 735.8 $ 770.2 2011 29.6 89.4 206.4 373.4 501.8 595.1 663.0 709.1 748.2 2012 46.9 106.8 201.1 316.6 435.7 521.3 587.0 624.4 2013 22.2 85.1 176.6 296.4 378.0 452.7 494.6 2014 29.8 107.5 229.6 342.9 444.7 522.7 2015 32.2 100.4 205.0 325.8 455.8 2016 34.8 121.8 242.9 370.0 2017 34.0 110.6 221.8 2018 33.0 104.6 2019 29.0 Cumulative Paid Loss and LAE for the 2010 through 2019 accident years $ 4,341.3 Total incurred loss and LAE for the 2010 through 2019 accident years $ 8,142.1 Cumulative paid loss and LAE for the 2010 through 2019 accident years 4,341.3 Unpaid loss and LAE, net of reinsurance recoverables, for accident years prior to 2010 776.5 Unpaid loss and LAE, net of reinsurance recoverables, as of December 31, 2019 $ 4,577.3 (1) Represents the following reinsurance lines of business: directors’ and officers’ liability; errors and omissions liability; general liability; and medical malpractice. |
Reinsurance Segment | Casualty & Other | Shorter Tailed Lines Of Business | |
Supplemental Information About Incurred and Paid Loss and LAE Development and Reconciliation to Consolidated Balance Sheet | Reinsurance Segment Casualty & other – Shorter-Tailed Lines of Business (1) Incurred Loss and LAE, Net of Reinsurance As of Year Ended December 31, December 31, 2019 Accident Year 2010 (unaudited) 2011 (unaudited) 2012 (unaudited) 2013 (unaudited) 2014 (unaudited) 2015 (unaudited) 2016 (unaudited) 2017 (unaudited) 2018 (unaudited) 2019 IBNR ($ in millions) 2010 $ 1,024.5 $ 1,007.0 $ 985.9 $ 978.3 $ 967.2 $ 954.0 $ 950.3 $ 943.4 $ 927.7 $ 924.2 $ 9.1 2011 1,031.2 1,023.6 1,007.6 992.8 973.0 963.7 959.8 976.0 972.9 15.9 2012 1,022.3 1,059.9 1,056.8 1,005.5 983.9 958.9 948.4 941.4 19.8 2013 850.8 868.8 838.4 823.4 804.1 790.3 780.7 28.8 2014 850.4 833.0 808.8 784.3 772.4 755.0 38.7 2015 763.4 768.6 784.0 798.4 776.7 46.1 2016 1,118.0 1,124.4 1,111.6 1,100.3 80.0 2017 1,095.9 1,046.3 1,026.9 169.7 2018 1,255.4 1,266.1 288.7 2019 1,408.6 689.4 Total Incurred Loss and LAE for the 2010 through 2019 accident years $ 9,952.8 Paid Loss and LAE, Net of Reinsurance Year Ended December 31, Accident Year 2010 (unaudited) 2011 (unaudited) 2012 (unaudited) 2013 (unaudited) 2014 (unaudited) 2015 (unaudited) 2016 (unaudited) 2017 (unaudited) 2018 (unaudited) 2019 ($ in millions) 2010 $ 404.9 $ 671.3 $ 776.5 $ 832.7 $ 866.7 $ 884.8 $ 897.5 $ 903.7 $ 909.6 $ 916.0 2011 376.5 606.4 752.7 820.9 858.8 880.2 894.5 906.1 915.1 2012 354.8 614.5 740.0 792.7 828.3 846.5 860.2 871.4 2013 265.4 523.5 613.3 663.0 685.5 704.9 717.5 2014 251.2 421.1 523.3 572.9 604.6 627.8 2015 218.5 409.1 518.7 577.7 629.1 2016 367.2 685.6 828.7 921.3 2017 342.8 639.1 793.5 2018 397.9 774.4 2019 462.0 Cumulative Paid Loss and LAE for the 2010 through 2019 accident years $ 7,628.1 Total incurred loss and LAE for the 2010 through 2019 accident years $ 9,952.8 Cumulative paid loss and LAE for the 2010 through 2019 accident years 7,628.1 Unpaid loss and LAE, net of reinsurance recoverables, for accident years prior to 2010 153.1 Unpaid loss and LAE, net of reinsurance recoverables, as of December 31, 2019 $ 2,477.8 (1) Primarily represents the following reinsurance lines of business: ocean marine and aviation; auto liability; accident & health; mortgage reinsurance; surety; and credit. |
Insurance Segment | RSUI | Property Insurance | |
Supplemental Information About Incurred and Paid Loss and LAE Development and Reconciliation to Consolidated Balance Sheet | Insurance Segment RSUI - Property As of December 31, 2019 Incurred Loss and LAE, Net of Reinsurance Cumulative Year Ended December 31, Number of Accident Year 2010 (unaudited) 2011 (unaudited) 2012 (unaudited) 2013 (unaudited) 2014 (unaudited) 2015 (unaudited) 2016 (unaudited) 2017 (unaudited) 2018 (unaudited) 2019 IBNR Reported Claims (2) ($ in millions) 2010 $ 110.2 $ 101.7 $ 101.8 $ 105.7 $ 104.2 $ 109.8 $ 109.9 $ 109.6 $ 101.7 $ 101.7 $ 0.8 1,631 2011 168.8 162.0 160.5 159.9 159.0 159.3 159.3 159.9 160.2 1.0 2,207 2012 270.9 262.5 258.6 256.1 235.1 236.1 235.5 228.3 1.1 2,311 2013 157.3 157.2 150.4 152.1 152.4 152.5 154.3 1.6 2,394 2014 170.7 166.2 155.9 153.7 153.8 153.6 1.9 3,091 2015 140.5 136.1 142.6 141.3 140.1 2.6 3,004 2016 181.4 170.5 172.9 173.9 3.3 3,365 2017 330.7 306.5 304.1 23.1 3,668 2018 259.9 265.7 42.9 2,992 2019 204.3 57.2 2,888 Total Incurred Loss and LAE for the 2010 through 2019 accident years $ 1,886.2 Paid Loss and LAE, Net of Reinsurance Year Ended December 31, Accident Year 2010 (unaudited) 2011 (unaudited) 2012 (unaudited) 2013 (unaudited) 2014 (unaudited) 2015 (unaudited) 2016 (unaudited) 2017 (unaudited) 2018 (unaudited) 2019 ($ in millions) 2010 $ 53.0 $ 83.6 $ 92.4 $ 98.6 $ 100.6 $ 101.1 $ 101.5 $ 101.3 $ 100.8 $ 100.9 2011 61.0 118.4 144.0 154.3 156.1 157.2 157.6 158.6 158.8 2012 62.0 157.5 181.9 193.5 202.4 216.2 216.7 219.2 2013 72.7 118.7 134.0 141.1 144.0 148.7 151.5 2014 93.2 133.8 145.0 148.8 150.3 151.3 2015 70.8 106.9 120.0 129.8 136.5 2016 72.0 127.1 147.1 161.2 2017 88.6 213.3 253.3 2018 62.3 175.1 2019 79.8 Cumulative Paid Loss and LAE for the 2010 through 2019 accident years $ 1,587.6 Total incurred loss and LAE for the 2010 through 2019 accident years $ 1,886.2 Cumulative paid loss and LAE for the 2010 through 2019 accident years 1,587.6 Unpaid loss and LAE, net of reinsurance recoverables, for accident years prior to 2010 3.7 Unpaid loss and LAE, net of reinsurance recoverables, as of December 31, 2019 $ 302.3 (1) Represents claims reported by insured claimants. |
Insurance Segment | RSUI | Casualty Insurance | |
Supplemental Information About Incurred and Paid Loss and LAE Development and Reconciliation to Consolidated Balance Sheet | Insurance Segment RSUI - Casualty As of December 31, 2019 Incurred Loss and LAE, Net of Reinsurance Cumulative Year Ended December 31, Number of Accident Year 2010 (unaudited) 2011 (unaudited) 2012 (unaudited) 2013 (unaudited) 2014 (unaudited) 2015 (unaudited) 2016 (unaudited) 2017 (unaudited) 2018 (unaudited) 2019 IBNR Reported Claims (2) ($ in millions) 2010 $ 204.1 $ 204.1 $ 204.1 $ 203.4 $ 194.6 $ 178.6 $ 177.0 $ 171.0 $ 168.0 $ 166.7 $ 7.5 6,986 2011 205.9 205.9 208.3 212.1 211.6 206.8 202.0 189.7 184.9 13.3 7,551 2012 226.3 226.3 230.3 242.8 238.9 233.8 231.9 221.8 31.9 7,681 2013 264.8 264.8 277.6 280.1 279.0 273.5 269.6 44.4 8,731 2014 292.0 322.7 321.1 322.4 320.3 310.9 56.8 10,242 2015 300.2 300.2 304.2 302.2 291.4 83.6 9,375 2016 290.7 293.7 301.3 312.0 83.0 8,917 2017 282.5 286.4 299.1 121.6 8,716 2018 290.0 301.5 185.6 8,730 2019 316.9 267.7 7,267 Total Incurred Loss and LAE for the 2010 through 2019 accident years $ 2,674.8 Paid Loss and LAE, Net of Reinsurance Year Ended December 31, Accident Year 2010 (unaudited) 2011 (unaudited) 2012 (unaudited) 2013 (unaudited) 2014 (unaudited) 2015 (unaudited) 2016 (unaudited) 2017 (unaudited) 2018 (unaudited) 2019 ($ in millions) 2010 $ 4.7 $ 30.9 $ 70.1 $ 90.1 $ 122.6 $ 128.6 $ 132.9 $ 149.2 $ 152.3 $ 158.1 2011 6.5 31.9 66.7 100.3 118.4 138.5 150.0 153.6 156.4 2012 6.8 38.4 96.0 125.5 144.0 159.3 166.7 176.1 2013 10.1 50.0 103.4 146.2 176.6 191.3 203.9 2014 13.0 69.5 130.1 179.1 206.5 234.6 2015 9.0 47.3 96.6 129.2 176.5 2016 13.7 69.2 123.6 197.8 2017 9.4 63.6 115.6 2018 13.0 70.4 2019 12.9 Cumulative Paid Loss and LAE for the 2010 through 2019 accident years $ 1,502.3 Total incurred loss and LAE for the 2010 through 2019 accident years $ 2,674.8 Cumulative paid loss and LAE for the 2010 through 2019 accident years 1,502.3 Unpaid loss and LAE, net of reinsurance recoverables, for accident years prior to 2010 64.4 Unpaid loss and LAE, net of reinsurance recoverables, as of December 31, 2019 $ 1,236.9 (1) Represents claims reported by insured claimants. |
Insurance Segment | CapSpecialty Incorporated | |
Supplemental Information About Incurred and Paid Loss and LAE Development and Reconciliation to Consolidated Balance Sheet | Insurance Segment CapSpecialty (1) As of December 31, 2019 Incurred Loss and LAE, Net of Reinsurance Cumulative Year Ended December 31, Number of Accident Year 2010 (unaudited) 2011 (unaudited) 2012 (unaudited) 2013 (unaudited) 2014 (unaudited) 2015 (unaudited) 2016 (unaudited) 2017 (unaudited) 2018 (unaudited) 2019 IBNR Reported Claims (1) ($ in millions) 2010 $ 93.2 $ 110.8 $ 117.9 $ 134.8 $ 134.5 $ 129.8 $ 129.5 $ 127.7 $ 127.2 $ 129.6 $ 3.8 8,212 2011 74.0 71.2 74.4 76.9 79.4 78.4 78.2 77.7 77.6 0.5 5,695 2012 72.7 71.8 66.2 69.3 69.7 68.7 68.8 69.1 0.4 5,265 2013 78.7 81.4 85.2 84.4 87.2 88.6 87.4 1.1 5,166 2014 102.8 102.7 101.0 100.2 98.6 97.6 2.4 5,952 2015 111.0 111.8 109.2 109.7 112.4 4.2 5,551 2016 129.4 132.4 132.7 135.0 14.5 6,131 2017 147.3 143.7 157.6 31.5 6,318 2018 164.1 173.3 66.9 6,319 2019 193.0 134.1 4,955 Total Incurred Loss and LAE for the 2010 through 2019 accident years $ 1,232.6 Paid Loss and LAE, Net of Reinsurance Year Ended December 31, Accident Year 2010 (unaudited) 2011 (unaudited) 2012 (unaudited) 2013 (unaudited) 2014 (unaudited) 2015 (unaudited) 2016 (unaudited) 2017 (unaudited) 2018 (unaudited) 2019 ($ in millions) 2010 $ 22.0 $ 56.2 $ 78.4 $ 98.1 $ 111.0 $ 119.2 $ 121.6 $ 123.9 $ 124.4 $ 124.7 2011 16.3 31.9 44.7 57.7 67.3 69.8 73.8 75.7 76.0 2012 18.6 38.6 46.9 57.2 63.3 65.0 66.5 67.7 2013 23.4 48.0 62.0 69.6 78.6 84.5 85.3 2014 34.0 56.3 71.9 83.1 89.8 93.1 2015 30.9 57.4 73.5 88.8 101.1 2016 30.3 64.0 86.6 106.1 2017 30.1 65.6 95.1 2018 31.7 72.4 2019 29.8 Cumulative Paid Loss and LAE for the 2010 through 2019 accident years $ 851.3 Total incurred loss and LAE for the 2010 through 2019 accident years $ 1,232.6 Cumulative paid loss and LAE for the 2010 through 2019 accident years 851.3 Unpaid loss and LAE, net of reinsurance recoverables, for accident years prior to 2010 7.7 Unpaid loss and LAE, net of reinsurance recoverables, as of December 31, 2019 $ 389.0 (1) The vast majority of the CapSpecialty’s loss and LAE reserves relate to its casualty lines of business. (2) Represents claims reported by insured claimants. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax Expense (Benefit) | The following table presents income tax expense (benefit) for 2019, 2018 and 2017: Federal State Foreign Total ($ in millions) Year ended December 31, 2019 Current $ 87.9 $ 12.0 $ 70.8 $ 170.7 Deferred 62.9 0.5 (0.7 ) 62.7 $ 150.8 $ 12.5 $ 70.1 $ 233.4 Year ended December 31, 2018 Current $ (83.3 ) $ 5.6 $ 32.0 $ (45.7 ) Deferred 29.9 0.9 (0.1 ) 30.7 $ (53.4 ) $ 6.5 $ 31.9 $ (15.0 ) Year ended December 31, 2017 Current $ (41.3 ) $ 2.7 $ 41.0 $ 2.4 Deferred (66.6 ) 0.6 (0.2 ) (66.2 ) $ (107.9 ) $ 3.3 $ 40.8 $ (63.8 ) |
Difference between Federal Income Tax Rate and Effective Income Tax Rate | The following table presents the difference between the federal income tax rate and the effective income tax rate: Year Ended December 31, 2019 2018 2017 Federal income tax rate 21.0 % 21.0 % 35.0 % Foreign tax credits 0.4 (0.3 ) (6.4 ) Income subject to dividends-received deduction (0.3 ) (18.3 ) (25.5 ) Tax-exempt interest (1.0 ) (36.0 ) (94.1 ) State taxes, net of federal tax benefit 0.9 13.8 6.5 Prior period adjustment 0.2 (0.1 ) (3.3 ) Tax benefit from sale of subsidiary — — (54.1 ) Other, net (0.4 ) (18.1 ) (32.0 ) Effective tax rate 20.8 % (38.0 )% (173.9 )% |
Tax Effects of Temporary Differences that Give Rise to Significant Portions of Deferred Tax Assets and Deferred Tax Liabilities | The following table presents the tax effects of temporary differences that give rise to the deferred tax assets and deferred tax liabilities as of December 31, 2019 and 2018: As of December 31, 2019 2018 ($ in millions) Deferred tax assets: Loss and LAE reserves $ 118.9 $ 122.9 Minimum tax credit carry forward — 68.8 Compensation accruals 94.1 88.1 Unearned premiums 97.4 85.9 OTTI losses 6.5 5.4 State net operating loss carry forward 22.8 23.5 Other 134.9 89.8 Gross deferred tax assets before valuation allowance 474.6 484.4 Valuation allowance (22.8 ) (23.5 ) Gross deferred tax assets 451.8 460.9 Deferred tax liabilities: Net unrealized gains on investments 274.8 127.2 Deferred acquisition costs 113.4 101.1 Purchase accounting adjustments 11.7 11.3 Other 46.0 56.4 Gross deferred tax liabilities 445.9 296.0 Net deferred tax assets $ 5.9 $ 164.9 |
Tax Year Returns that Remain Subject to Examination by Major Tax Jurisdiction | The following table presents the tax years of Alleghany and TransRe tax returns that remain subject to examination by major tax jurisdictions as of December 31, 2019. Major Tax Jurisdiction Open Tax Years Australia 2015-2019 Canada 2015-2019 France 2017-2019 Germany 2013-2019 Hong Kong 2013-2019 Japan 2019 Singapore 2016-2019 Switzerland 2017-2019 U.K. 2017-2019 U.S. 2015-2019 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders Equity Note [Abstract] | |
Schedule of Common Stock Repurchases | The following table presents the shares of Common Stock that Alleghany repurchased in 2019, 2018 and 2017: Year Ended December 31, 2019 2018 2017 Shares repurchased 215,091 822,849 29,704 Cost of shares repurchased (in millions) $ 144.4 $ 491.6 $ 16.0 Average price per share repurchased $ 671.44 $ 597.48 $ 540.25 |
Reconciliation of Accumulated Other Comprehensive Income | The following table presents a reconciliation of the changes during 2019 and 2018 in accumulated other comprehensive income attributable to Alleghany stockholders: Unrealized Appreciation of Investments Unrealized Currency Translation Adjustment Retirement Plans Total ($ in millions) Balance as of January 1, 2019 $ (61.6 ) $ (124.7 ) $ (15.7 ) $ (202.0 ) Other comprehensive income (loss), net of tax: Other comprehensive income (loss) before reclassifications 403.0 2.9 (12.2 ) 393.7 Reclassifications from accumulated other comprehensive income (20.4 ) — — (20.4 ) Total 382.6 2.9 (12.2 ) 373.3 Balance as of December 31, 2019 $ 321.0 $ (121.8 ) $ (27.9 ) $ 171.3 Unrealized Appreciation of Investments Unrealized Currency Translation Adjustment Retirement Plans Total ($ in millions) Balance as of January 1, 2018 $ 718.2 $ (84.6 ) $ (15.5 ) $ 618.1 Cumulative effect of adoption of new accounting pronouncements (1) Reclassification of net unrealized gains on equity securities, net of tax (735.6 ) — — (735.6 ) Reclassification of stranded taxes 156.6 (18.2 ) (3.3 ) 135.1 Total (579.0 ) (18.2 ) (3.3 ) (600.5 ) Other comprehensive income (loss), net of tax: Other comprehensive income (loss) before reclassifications (212.5 ) (21.9 ) 3.1 (231.3 ) Reclassifications from accumulated other comprehensive income 11.7 — — 11.7 Total (200.8 ) (21.9 ) 3.1 (219.6 ) Balance as of December 31, 2018 $ (61.6 ) $ (124.7 ) $ (15.7 ) $ (202.0 ) (1) See Note 1(r) for additional information regarding Alleghany’s adoption of new investment accounting guidance and new guidance on certain tax effects caused by the Tax Act. |
Reclassifications of Accumulated Other Comprehensive Income | The following table presents reclassifications out of accumulated other comprehensive income attributable to Alleghany stockholders during 2019 and 2018: Accumulated Other Year Ended December 31, Comprehensive Income Component Line in Consolidated Statement of Earnings 2019 2018 ($ in millions) Unrealized appreciation of investments: Net realized capital gains (1) $ (45.5 ) $ 13.5 Other than temporary impairment losses 19.7 1.3 Income taxes 5.4 (3.1 ) Total reclassifications: Net earnings $ (20.4 ) $ 11.7 (1) For 2019, excludes a $38.4 million pre-tax loss on the Put Option and a $13.6 million pre-tax loss from the December 2019 sale of a privately held investment accounted for under the equity method. For 2018, excludes a $45.7 million pre-tax gain from AIHL’s conversion of its limited partnership interests in certain subsidiaries of Ares into Ares common units, and a $35.4 million capital loss due to an impairment charge from the write-down of certain SORC assets arising from a decline in energy prices as of December 31, 2018. See Note 4 for additional information. |
Summary of Dividends Paid to Alleghany by its Reinsurance and Insurance Subsidiaries | The following table presents the dividends paid to Alleghany by its reinsurance and insurance subsidiaries in 2019, 2018 and 2017: As of December 31, 2019 (1) 2018 2017 (2) ($ in millions) TransRe (3) $ 301.0 $ 300.0 $ 225.0 RSUI (4) 100.0 100.0 75.0 Total $ 401.0 $ 400.0 $ 300.0 ( 1 ) Includes $101.0 million representing the July 1, 2019 carrying value of TransRe’s ownership interest in CapSpecialty, which was transferred to Alleghany. (2) Dividends to Alleghany were reduced as a consequence of significant TransRe and RSUI catastrophe losses in the third quarter of 2017. (3) In 2019, 2018 and 2017, TRC paid cash dividends of $220.0 million, $280.0 million and $270.0 million, respectively, to the TransRe holding company. In addition, TRC transferred its ownership interest in CapSpecialty to the TransRe holding company, and consequently, the TransRe holding company recorded a dividend from TRC in the amount of $101.0 million. (4) Alleghany received an extraordinary dividend from RSUI in January 2020. |
Earnings Per Share of Common _2
Earnings Per Share of Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Reconciliation of Earnings and Share Data used in Basic and Diluted (Losses) Earnings per Share Computations | The following table presents a reconciliation of the earnings and share data used in the basic and diluted earnings per share computations for 2019, 2018 and 2017: Year Ended December 31, 2019 2018 2017 ($ in millions, except share amounts) Net earnings available to Alleghany stockholders $ 857.8 $ 39.5 $ 90.1 Effect of dilutive securities — — — Income available to common stockholders for diluted earnings per share $ 857.8 $ 39.5 $ 90.1 Weighted average common shares outstanding applicable to basic earnings per share 14,431,892 15,062,567 15,410,034 Effect of dilutive securities 11,584 — — Adjusted weighted average common shares outstanding applicable to diluted earnings per share 14,443,476 15,062,567 15,410,034 Contingently issuable shares (1) 48,468 23,947 78,345 (1) Contingently issuable shares were potentially available in the periods presented, but were not included in the diluted earnings per share computations because the impact was anti-dilutive to the earnings per share calculation. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Consolidated Lease Liabilities And Right-Of-Use Lease Assets Related To Operating Leases | The following table presents Alleghany’s consolidated lease liabilities and right-of-use lease assets related to operating leases as of December 31, 2019 As of December 31, 2019 Maturity of lease payments, by year ($ in millions) 1 year or less $ 39.0 More than 1 year to 2 years 36.5 More than 2 years to 3 years 28.9 More than 3 years to 4 years 27.2 More than 4 years to 5 years 24.8 More than 5 years 145.2 Total lease payments (1) 301.6 Less: interest (2) (60.5 ) Lease liabilities (3) $ 241.1 Right-of-use lease assets (4) $ 209.7 Prepaid lease assets, net of lease allowances and incentives 31.4 $ 241.1 (1) As of December 31, 2019, the weighted average lease term was approximately 12 years. (2) As of December 31, 2019, the weighted average discount rate was approximately 5 percent. (3) Represents the present value of lease liabilities and is reported as a component of other liabilities on Alleghany’s consolidated balance sheet. (4) Reported as a component of other assets on Alleghany’s consolidated balance sheet. |
Asbestos Related Illnesses and Environmental Impairment Loss and Loss Adjustment Expense Reserves | The following table presents such gross and net reserves as of December 31, 2019 and 2018: December 31, 2019 December 31, 2018 Gross Net Gross Net ($ in millions) TransRe $ 113.0 $ 108.3 $ 128.1 $ 124.6 CapSpecialty 4.8 4.8 5.6 5.6 Total $ 117.8 $ 113.1 $ 133.7 $ 130.2 |
Segments of Business (Tables)
Segments of Business (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Results for Reportable Segments and Corporate Activities | The following tables present segment results for Alleghany’s three reportable segments and for corporate activities for 2019, 2018 and 2017: Reinsurance Segment Insurance Segment Year Ended December 31, 2019 Property Casualty & other (1) Total RSUI Cap Specialty Total Subtotal Alleghany Capital (2) Total Segments Corporate Activities (3) Consolidated ($ in millions) Gross premiums written $ 1,700.3 $ 3,245.4 $ 4,945.7 $ 1,366.6 $ 371.8 $ 1,738.4 $ 6,684.1 $ — $ 6,684.1 $ (27.7 ) $ 6,656.4 Net premiums written 1,328.8 3,166.2 4,495.0 912.0 344.7 1,256.7 5,751.7 — 5,751.7 — 5,751.7 Net premiums earned 1,280.1 3,046.9 4,327.0 824.2 326.9 1,151.1 5,478.1 — 5,478.1 — 5,478.1 Net loss and LAE 942.6 2,018.5 2,961.1 503.7 221.6 725.3 3,686.4 — 3,686.4 — 3,686.4 Commissions, brokerage and other underwriting expenses (4) 424.2 982.6 1,406.8 219.2 132.7 351.9 1,758.7 — 1,758.7 — 1,758.7 Underwriting (loss) profit (5) $ (86.7 ) $ 45.8 $ (40.9 ) $ 101.3 $ (27.4 ) $ 73.9 33.0 — 33.0 — 33.0 Net investment income 533.2 6.3 539.5 10.7 550.2 Change in the fair value of equity securities 705.8 — 705.8 3.9 709.7 Net realized capital gains 6.0 1.0 7.0 (13.5 ) (6.5 ) Other than temporary impairment losses (19.7 ) — (19.7 ) — (19.7 ) Noninsurance revenue 27.0 2,289.3 2,316.3 12.5 2,328.8 Other operating expenses 103.1 2,132.9 2,236.0 27.3 2,263.3 Corporate administration 4.1 — 4.1 70.7 74.8 Amortization of intangible assets 1.3 32.5 33.8 — 33.8 Interest expense 27.1 20.1 47.2 52.8 100.0 Earnings (losses) before income taxes $ 1,149.7 $ 111.1 $ 1,260.8 $ (137.2 ) $ 1,123.6 Reinsurance Segment Insurance Segment Year Ended December 31, 2018 Property Casualty & other (1) Total RSUI Cap Specialty Total Subtotal Alleghany Capital (2) Total Segments Corporate Activities (3) Consolidated ($ in millions) Gross premiums written $ 1,532.7 $ 2,918.3 $ 4,451.0 $ 1,142.0 $ 328.8 $ 1,470.8 $ 5,921.8 $ — $ 5,921.8 $ (26.2 ) $ 5,895.6 Net premiums written 1,169.4 2,799.7 3,969.1 773.3 306.0 1,079.3 5,048.4 — 5,048.4 — 5,048.4 Net premiums earned 1,177.3 2,761.7 3,939.0 747.3 289.9 1,037.2 4,976.2 — 4,976.2 — 4,976.2 Net loss and LAE 1,067.8 1,801.5 2,869.3 491.2 159.9 651.1 3,520.4 — 3,520.4 — 3,520.4 Commissions, brokerage and other underwriting expenses (4) 384.9 897.4 1,282.3 211.9 123.1 335.0 1,617.3 — 1,617.3 — 1,617.3 Underwriting (loss) profit (5) $ (275.4 ) $ 62.8 $ (212.6 ) $ 44.2 $ 6.9 $ 51.1 (161.5 ) — (161.5 ) — (161.5 ) Net investment income 480.9 4.8 485.7 14.8 500.5 Change in the fair value of equity securities (184.2 ) — (184.2 ) (44.8 ) (229.0 ) Net realized capital gains 31.6 0.9 32.5 (35.7 ) (3.2 ) Other than temporary impairment losses (1.3 ) — (1.3 ) — (1.3 ) Noninsurance revenue 22.0 1,574.6 1,596.6 47.4 1,644.0 Other operating expenses 59.8 1,485.6 1,545.4 33.9 1,579.3 Corporate administration (1.7 ) — (1.7 ) 17.6 15.9 Amortization of intangible assets (0.4 ) 24.4 24.0 — 24.0 Interest expense 27.1 10.5 37.6 53.1 90.7 Earnings (losses) before income taxes $ 102.7 $ 59.8 $ 162.5 $ (122.9 ) $ 39.6 Reinsurance Segment Insurance Segment Year Ended December 31, 2017 Property Casualty & other (1) Total RSUI Cap Specialty Pacific Comp Total Subtotal Alleghany Capital (2) Total Segments Corporate Activities (3) Consolidated ($ in millions) Gross premiums written $ 1,557.8 $ 2,652.8 $ 4,210.6 $ 1,056.8 $ 290.2 $ 162.6 $ 1,509.6 $ 5,720.2 $ — $ 5,720.2 $ (23.3 ) $ 5,696.9 Net premiums written 1,233.1 2,577.0 3,810.1 724.4 271.2 160.2 1,155.8 4,965.9 — 4,965.9 — 4,965.9 Net premiums earned 1,181.9 2,626.8 3,808.7 721.7 260.9 163.7 1,146.3 4,955.0 — 4,955.0 — 4,955.0 Net loss and LAE 1,080.1 1,705.3 2,785.4 569.9 143.9 121.0 834.8 3,620.2 — 3,620.2 — 3,620.2 Commissions, brokerage and other underwriting expenses (4) 383.4 903.3 1,286.7 208.9 112.7 42.9 364.5 1,651.2 — 1,651.2 — 1,651.2 Underwriting (loss) profit (5) $ (281.6 ) $ 18.2 $ (263.4 ) $ (57.1 ) $ 4.3 $ (0.2 ) $ (53.0 ) (316.4 ) — (316.4 ) — (316.4 ) Net investment income 434.6 2.1 436.7 14.3 451.0 Change in the fair value of equity securities — — — — — Net realized capital gains 85.7 23.0 108.7 (1.5 ) 107.2 Other than temporary impairment losses (16.9 ) — (16.9 ) — (16.9 ) Noninsurance revenue 15.5 896.9 912.4 15.9 928.3 Other operating expenses 82.8 844.9 927.7 39.4 967.1 Corporate administration 1.7 — 1.7 45.3 47.0 Amortization of intangible assets (1.5 ) 20.9 19.4 — 19.4 Interest expense 26.9 4.0 30.9 52.1 83.0 Earnings (losses) before income taxes $ 92.6 $ 52.2 $ 144.8 $ (108.1 ) $ 36.7 (1) Primarily consists of the following reinsurance lines of business: directors’ and officers’ liability; errors and omissions liability; general liability; medical malpractice; ocean marine and aviation; auto liability; accident & health; mortgage reinsurance; surety; and credit. (2) Excludes certain minor, legacy investments that were previously reflected in Alleghany Capital in 2018 and prior periods, to align with management’s view of reportable segments. (3) Includes elimination of minor reinsurance activity between segments. Also, includes certain minor, legacy investments that were previously reflected in Alleghany Capital in 2018 and prior periods. (4) Includes amortization associated with deferred acquisition costs of $1,392.8 million, $1,271.4 million and $1,261.7 million for the years ended December 31, 2019, 2018 and 2017, respectively. (5) Underwriting profit represents net premiums earned less net loss and LAE and commissions, brokerage and other underwriting expenses, all as determined in accordance with GAAP, and does not include net investment income, change in the fair value of equity securities, net realized capital gains, OTTI losses, noninsurance revenue, other operating expenses, corporate administration, amortization of intangible assets or interest expense. Underwriting profit does not replace earnings before income taxes determined in accordance with GAAP as a measure of profitability. Rather, Alleghany believes that underwriting profit enhances the understanding of its reinsurance and insurance segments’ operating results by highlighting net earnings attributable to their underwriting performance. Earnings before income taxes (a GAAP measure) may show a profit despite an underlying underwriting loss. Where underwriting losses persist over extended periods, a reinsurance or an insurance company’s ability to continue as an ongoing concern may be at risk. Therefore, Alleghany views underwriting profit as an important measure in the overall evaluation of performance. |
Summary of Identifiable Assets and Equity | The following table presents identifiable assets, the portion of identifiable assets related to cash and invested assets, and equity attributable to Alleghany, for Alleghany’s reportable segments and for corporate activities as of December 31, 2019: Identifiable Assets Invested Assets and Cash Equity Attributable to Alleghany ($ in millions) Reinsurance segment $ 17,158.2 $ 13,803.9 $ 5,243.3 Insurance segment 7,230.6 5,641.8 3,173.0 Subtotal 24,388.8 19,445.7 8,416.3 Alleghany Capital 2,048.3 219.1 900.9 Total segments 26,437.1 19,664.8 9,317.2 Corporate activities 494.5 406.1 (540.5 ) Consolidated $ 26,931.6 $ 20,070.9 $ 8,776.7 |
Summary of Alleghany Capital Noninsurance Revenue | For Alleghany Capital’s industrial and non-industrial operations, noninsurance revenue consists of the sale of manufactured goods and services. The following table presents noninsurance revenue for the Alleghany Capital segment for 2019, 2018 and 2017: Year Ended December 31, 2019 2018 2017 ($ in millions) Industrial (1) $ 1,105.6 $ 917.1 $ 393.7 Non-Industrial (2) 1,183.7 657.5 502.4 Corporate & other — — 0.8 Alleghany Capital $ 2,289.3 $ 1,574.6 $ 896.9 (1) For 2019 and 2018, the vast majority of industrial noninsurance revenues were recognized as goods and services transferred to customers over time. For 2017, approximately 72 percent of noninsurance revenues that were recognized as services were transferred to customers over time, with the remainder recognized as goods transferred at a point in time. See Note 1(r) additional information regarding Alleghany’s adoption of new revenue recognition accounting guidance effective in the first quarter of 2018. (2) For 2019, 2018 and 2017, approximately 70 percent, 63 percent and 66 percent, respectively, of non-industrial noninsurance revenues were recognized as services transferred to customers over time, with the remainder recognized as goods transferred at a point in time. See Note 1(r) for additional information on Alleghany’s adoption of new revenue recognition accounting guidance effective in the first quarter of 2018. |
Quarterly Results of Operatio_2
Quarterly Results of Operations (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data | Selected quarterly financial data for 2019 and 2018 are presented below: Quarter Ended March 31 June 30 September 30 December 31 ($ in millions, except per share data) 2019 Revenues $ 2,321.2 $ 2,258.7 $ 2,159.9 $ 2,300.8 Net earnings (losses) (1) 440.2 295.5 90.4 31.7 Basic earnings (losses) per share of common stock (1)(2) 30.40 20.46 6.27 2.20 2018 Revenues $ 1,585.0 $ 1,897.7 $ 2,177.4 $ 1,227.1 Net earnings (losses) (1) 171.6 295.1 284.9 (712.1 ) Basic earnings (losses) per share of common stock (1)(2) 11.15 19.44 19.07 (48.30 ) (1) Attributable to Alleghany stockholders. (2) Earnings per share by quarter may not equal the amount for the full year due to the timing of repurchases of Common Stock, as well as rounding. |
Summary of Significant Accoun_3
Summary of Significant Accounting Principles - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Jan. 01, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Oct. 01, 2019 | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2016 | ||
Significant Accounting Policies [Line Items] | ||||||||||
Par value of common stock outstanding | $ 1 | |||||||||
Statutory federal income tax rate | 21.00% | 21.00% | 35.00% | |||||||
Right-of-use asset | [1] | $ 209,700 | ||||||||
Lease liability | [2] | $ 241,100 | ||||||||
Retained Earnings | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Cumulative effect of adoption of new accounting pronouncements | $ 600,508 | $ (12,899) | ||||||||
Accumulated Other Comprehensive Income | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Cumulative effect of adoption of new accounting pronouncements | (600,508) | [3] | 12,899 | |||||||
Accounting Standards Update 2018-02 | Retained Earnings | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Cumulative effect of adoption of new accounting pronouncements | (135,000) | |||||||||
Accounting Standards Update 2018-02 | Accumulated Other Comprehensive Income | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Cumulative effect of adoption of new accounting pronouncements | [3] | 135,100 | ||||||||
Accounting Standards Update 2017-08 | Retained Earnings | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Cumulative effect of adoption of new accounting pronouncements | (13,000) | |||||||||
Accounting Standards Update 2017-08 | Accumulated Other Comprehensive Income | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Cumulative effect of adoption of new accounting pronouncements | $ 13,000 | |||||||||
Accounting Standards Update 2016-02 | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Right-of-use asset | $ 200,000 | |||||||||
Lease liability | $ 200,000 | |||||||||
Accounting Standards Update 2016-01 | Retained Earnings | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Cumulative effect of adoption of new accounting pronouncements | 736,000 | |||||||||
Accounting Standards Update 2016-01 | Accumulated Other Comprehensive Income | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Cumulative effect of adoption of new accounting pronouncements | [3] | (735,600) | ||||||||
Accounting Standards Update 2016-13 | Subsequent Event | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Increase in allowances for credit losses | $ 4,000 | |||||||||
Reduction in stockholders’ equity, after tax | $ 3,000 | |||||||||
Minimum | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Useful life of property and equipment | 3 years | |||||||||
Lease term criteria to record lease liability and right-of-use asset | 1 year | |||||||||
Maximum | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Useful life of property and equipment | 20 years | |||||||||
Kentucky Trailer | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Ownership of interest held by noncontrolling partners | 23.00% | |||||||||
Integrated Project Services LLC | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Ownership of interest held by noncontrolling partners | 15.00% | |||||||||
WWSC Holdings, LLC | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Ownership of interest held by noncontrolling partners | 20.00% | |||||||||
Concord | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Ownership of interest held by noncontrolling partners | 15.00% | |||||||||
Jazwares, LLC | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Ownership of interest held by noncontrolling partners | 25.00% | 23.00% | ||||||||
Wilbert Funeral Services, Inc | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Equity interest percentage | 45.00% | |||||||||
Pacific Comp | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Cash consideration from sale | 158,000 | |||||||||
Assets disposed of | 442,000 | |||||||||
Liabilities disposed of | 316,000 | |||||||||
Gain on sale of business, after tax | $ 16,000 | |||||||||
Disposal date | Dec. 31, 2017 | |||||||||
Alleghany Corporation | Financial Guarantee | AIHL Re Limited Liability Company reinsurance of Pacific Compensation Insurance Company | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Guaranteed obligation, aggregate limit | $ 150,000 | |||||||||
Aihl Re Limited Liability Company | AIHL Re Limited Liability Company reinsurance of Pacific Compensation Insurance Company | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Aggregate limit | $ 150,000 | |||||||||
Final commutation and settlement date | Dec. 31, 2024 | |||||||||
[1] | Reported as a component of other assets on Alleghany’s consolidated balance sheet. | |||||||||
[2] | Represents the present value of lease liabilities and is reported as a component of other liabilities on Alleghany’s consolidated balance sheet. | |||||||||
[3] | See Note 1(r) for additional information regarding Alleghany’s adoption of new investment accounting guidance and new guidance on certain tax effects caused by the Tax Act. |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | Oct. 01, 2019 | Oct. 01, 2018 | Feb. 07, 2018 | May 01, 2017 | Apr. 28, 2017 | Dec. 31, 2019 | Sep. 30, 2019 |
License agreements | |||||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||||
Economic useful lives of significant intangible assets | 8 years | ||||||
Customer Relationships | Minimum | |||||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||||
Economic useful lives of significant intangible assets | 5 years | ||||||
Customer Relationships | Maximum | |||||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||||
Economic useful lives of significant intangible assets | 10 years | ||||||
Agency Relationships | |||||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||||
Economic useful lives of significant intangible assets | 15 years | ||||||
Brokerage and Reinsurance Relationships | |||||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||||
Economic useful lives of significant intangible assets | 15 years | ||||||
Renewal rights | Minimum | |||||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||||
Economic useful lives of significant intangible assets | 3 years | ||||||
Renewal rights | Maximum | |||||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||||
Economic useful lives of significant intangible assets | 14 years | ||||||
Loss and LAE reserves | |||||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||||
Economic useful lives of significant intangible assets | 15 years | ||||||
Leases | |||||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||||
Economic useful lives of significant intangible assets | 10 years | ||||||
Jazwares, LLC | |||||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||||
Ownership of interest held by noncontrolling partners | 25.00% | 23.00% | |||||
Wicked Cool, Toys LLC | Jazwares, LLC | Alleghany Capital Corporation Segment | Operating Segments | |||||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||||
Ownership of interest held by noncontrolling partners | 25.00% | 23.00% | |||||
Wicked Cool, Toys LLC | Jazwares, LLC | |||||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||||
Purchase price for acquisition | $ 159 | ||||||
Incremental debt acquired | 135.5 | ||||||
Issuance of certain noncontrolling interests in Jazwares | 23.5 | ||||||
Goodwill | 39.1 | ||||||
Wicked Cool, Toys LLC | Jazwares, LLC | License agreements | |||||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||||
Finite-lived intangible assets acquired | 83.9 | ||||||
Wicked Cool, Toys LLC | Jazwares, LLC | Finite-Lived Intangible Assets Other Than License Agreements | |||||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||||
Finite-lived intangible assets acquired | $ 24.9 | ||||||
Concord | Alleghany Capital Corporation Segment | Operating Segments | |||||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||||
Purchase price for acquisition | $ 136.6 | ||||||
Incremental debt acquired | 29.8 | ||||||
Goodwill | 83 | ||||||
Finite-lived intangible assets acquired | $ 70.8 | ||||||
Ownership interest acquired | 85.00% | ||||||
Cash consideration paid for acquisition | $ 68.6 | ||||||
Potential contingent consideration on acquisition | $ 38.2 | ||||||
Business acquisition date | Oct. 1, 2018 | ||||||
Hirschfeld Holdings LP | WWSC Holdings, LLC | Alleghany Capital Corporation Segment | Operating Segments | |||||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||||
Purchase price for acquisition | $ 109.1 | ||||||
Incremental debt acquired | 14.7 | ||||||
Goodwill | 3 | ||||||
Finite-lived intangible assets acquired | 9.4 | ||||||
Cash consideration paid for acquisition | $ 94.4 | ||||||
Business acquisition date | Feb. 7, 2018 | ||||||
Capital contributions from Alleghany | $ 75.5 | ||||||
Capital contributions from noncontrolling interests | $ 18.9 | ||||||
WWSC Holdings, LLC | Alleghany Capital Corporation Segment | Operating Segments | |||||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||||
Purchase price for acquisition | $ 164.5 | ||||||
Goodwill | $ 41.1 | ||||||
Ownership interest acquired | 80.00% | ||||||
Cash consideration paid for acquisition | $ 163.9 | ||||||
Business acquisition date | Apr. 28, 2017 | ||||||
Purchase price adjustments on acquisition | $ 0.6 | ||||||
WWSC Holdings, LLC | Alleghany Capital Corporation Segment | Operating Segments | Trade name | |||||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||||
Indefinite-lived intangible assets acquired | 25.3 | ||||||
WWSC Holdings, LLC | Customer Relationships | Alleghany Capital Corporation Segment | Operating Segments | |||||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||||
Finite-lived intangible assets acquired | $ 70 |
Goodwill and Intangible Asset,
Goodwill and Intangible Asset, Net of Accumulated Amortization Expense on Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Goodwill, gross | $ 523,000 | $ 455,100 | |
Goodwill | [1] | 523,021 | 455,142 |
Finite lived intangible assets, accumulated amortization | 404,200 | 369,900 | |
Intangible assets excluding goodwill, gross | 1,090,200 | 923,000 | |
Goodwill and other intangible assets, accumulated amortization | 404,200 | 369,900 | |
Intangible assets excluding goodwill, net of amortization | [1] | 685,953 | 553,136 |
Goodwill and other intangible assets, Gross carrying value | 1,613,200 | 1,378,100 | |
Goodwill and other intangible assets, Net carrying value | [1] | 1,209,000 | 1,008,200 |
Insurance Segment | |||
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Goodwill, gross | [2] | 49,000 | 49,000 |
Goodwill | [1],[2] | 49,000 | 49,000 |
Finite lived intangible assets, accumulated amortization | 74,800 | 73,400 | |
Intangible assets excluding goodwill, gross | 140,200 | 142,000 | |
Goodwill and other intangible assets, accumulated amortization | 74,800 | 73,400 | |
Intangible assets excluding goodwill, net of amortization | [1] | 65,400 | 68,600 |
Goodwill and other intangible assets, Gross carrying value | 189,200 | 191,000 | |
Goodwill and other intangible assets, Net carrying value | [1] | 114,400 | 117,600 |
Insurance Segment | State insurance licenses | |||
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Indefinite lived intangible assets, gross | 25,100 | 25,100 | |
Indefinite lived intangible assets, net | [1] | 25,100 | 25,100 |
Insurance Segment | Trade name | |||
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Indefinite lived intangible assets, gross | 35,500 | 35,500 | |
Indefinite lived intangible assets, net | [1] | 35,500 | 35,500 |
Insurance Segment | Agency Relationships | |||
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Finite lived intangible assets, gross | 16,600 | 18,400 | |
Finite lived intangible assets, accumulated amortization | 12,400 | 11,400 | |
Finite lived intangible assets, net | [1] | 4,200 | 7,000 |
Insurance Segment | Brokerage and Reinsurance Relationships | |||
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Finite lived intangible assets, gross | 33,800 | 33,800 | |
Finite lived intangible assets, accumulated amortization | 33,800 | 33,800 | |
Insurance Segment | Renewal rights | |||
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Finite lived intangible assets, gross | 25,100 | 25,100 | |
Finite lived intangible assets, accumulated amortization | 24,500 | 24,100 | |
Finite lived intangible assets, net | [1] | 600 | 1,000 |
Insurance Segment | Other | |||
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Finite lived intangible assets, gross | 4,100 | 4,100 | |
Finite lived intangible assets, accumulated amortization | 4,100 | 4,100 | |
Reinsurance Segment | |||
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Goodwill, gross | [2] | 8,800 | 8,800 |
Goodwill | [1],[2] | 8,800 | 8,800 |
Finite lived intangible assets, accumulated amortization | 225,700 | 225,300 | |
Intangible assets excluding goodwill, gross | 303,900 | 299,600 | |
Goodwill and other intangible assets, accumulated amortization | 225,700 | 225,300 | |
Intangible assets excluding goodwill, net of amortization | [1] | 78,200 | 74,300 |
Goodwill and other intangible assets, Gross carrying value | 312,700 | 308,400 | |
Goodwill and other intangible assets, Net carrying value | [1] | 87,000 | 83,100 |
Reinsurance Segment | Trade name | |||
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Indefinite lived intangible assets, gross | 50,000 | 50,000 | |
Indefinite lived intangible assets, net | [1] | 50,000 | 50,000 |
Reinsurance Segment | State and Foreign Insurance Licenses | |||
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Indefinite lived intangible assets, gross | 19,000 | 19,000 | |
Indefinite lived intangible assets, net | [1] | 19,000 | 19,000 |
Reinsurance Segment | Renewal rights | |||
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Finite lived intangible assets, gross | 53,000 | 51,500 | |
Finite lived intangible assets, accumulated amortization | 30,700 | 26,000 | |
Finite lived intangible assets, net | [1] | 22,300 | 25,500 |
Reinsurance Segment | Other | |||
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Finite lived intangible assets, gross | 15,100 | 14,600 | |
Finite lived intangible assets, accumulated amortization | 10,900 | 10,000 | |
Finite lived intangible assets, net | [1] | 4,200 | 4,600 |
Reinsurance Segment | Value of business in-force | |||
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Finite lived intangible assets, gross | 291,400 | 291,400 | |
Finite lived intangible assets, accumulated amortization | 291,400 | 291,400 | |
Reinsurance Segment | Loss and LAE reserves | |||
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Finite lived intangible assets, gross | (98,800) | (98,800) | |
Finite lived intangible assets, accumulated amortization | (85,700) | (82,600) | |
Finite lived intangible assets, net | [1] | (13,100) | (16,200) |
Reinsurance Segment | Leases | |||
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Finite lived intangible assets, gross | (25,800) | (28,100) | |
Finite lived intangible assets, accumulated amortization | (21,600) | (19,500) | |
Finite lived intangible assets, net | [1] | (4,200) | (8,600) |
Alleghany Capital Corporation Segment | |||
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Goodwill, gross | [2],[3] | 465,200 | 397,300 |
Goodwill | [1],[2],[3] | 465,200 | 397,300 |
Finite lived intangible assets, accumulated amortization | [3] | 103,700 | 71,200 |
Intangible assets excluding goodwill, gross | [3] | 646,100 | 481,400 |
Goodwill and other intangible assets, accumulated amortization | [3] | 103,700 | 71,200 |
Intangible assets excluding goodwill, net of amortization | [1],[3] | 542,400 | 410,200 |
Goodwill and other intangible assets, Gross carrying value | [3] | 1,111,300 | 878,700 |
Goodwill and other intangible assets, Net carrying value | [1],[3] | 1,007,600 | 807,500 |
Alleghany Capital Corporation Segment | Trade name | |||
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Indefinite Lived Intangible Assets Accumulated Amortization | [3] | 600 | 100 |
Indefinite lived intangible assets, gross | [3] | 171,800 | 176,900 |
Indefinite lived intangible assets, net | [1],[3] | 171,200 | 176,800 |
Alleghany Capital Corporation Segment | Other | |||
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Finite lived intangible assets, gross | [3] | 25,800 | 21,200 |
Finite lived intangible assets, accumulated amortization | [3] | 23,000 | 20,800 |
Finite lived intangible assets, net | [1],[3] | 2,800 | 400 |
Alleghany Capital Corporation Segment | License agreements | |||
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Finite lived intangible assets, gross | [3] | 152,100 | 68,200 |
Finite lived intangible assets, accumulated amortization | [3] | 32,600 | 22,600 |
Finite lived intangible assets, net | [1],[3] | 119,500 | 45,600 |
Alleghany Capital Corporation Segment | Customer Relationships | |||
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Finite lived intangible assets, gross | [3] | 296,400 | 215,100 |
Finite lived intangible assets, accumulated amortization | [3] | 47,500 | 27,700 |
Finite lived intangible assets, net | [1],[3] | $ 248,900 | $ 187,400 |
[1] | Goodwill and intangible assets have been reduced by amounts written-down in prior periods, as applicable. | ||
[2] | See Note 13 for additional information on Alleghany’s segments of business. | ||
[3] | Represents goodwill and other intangible assets related to the acquisition of: (i) Jazwares on April 15, 2016 and its subsequent acquisitions; (ii) W&W|AFCO Steel on April 28, 2017 and its subsequent acquisition; (iii) Concord on October 1, 2018; (iv) PCT on April 26, 2012 and its subsequent acquisitions; (v) IPS on October 31, 2015 and its subsequent acquisition; and (vi) Kentucky Trailer on August 30, 2013 and its subsequent acquisitions. Balances as of December 31, 2019 also reflect the finalization of provisional estimates that existed as of December 31, 2018. |
Carrying Values and Estimated F
Carrying Values and Estimated Fair Values of Consolidated Financial Instruments (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Assets | |||
Investments (excluding equity method investments and loans) | [1] | $ 17,632.3 | $ 16,291.3 |
Liabilities | |||
Senior Notes and other debt | [2] | 1,962.7 | 1,795.5 |
Carrying Value | |||
Assets | |||
Investments (excluding equity method investments and loans) | [1] | 17,632.3 | 16,291.3 |
Liabilities | |||
Senior Notes and other debt | [2] | $ 1,751.1 | $ 1,669 |
[1] | This table includes debt and equity securities, as well as partnership and non-marketable equity investments carried at fair value that are included in other invested assets. This table excludes investments accounted for using the equity method and commercial mortgage loans that are carried at unpaid principal balance. The fair value of short-term investments approximates amortized cost. The fair value of all other categories of investments is discussed below. | ||
[2] | See Note 8 for additional information on the Senior Notes and other debt. |
Financial Instruments Measured
Financial Instruments Measured at Fair Value and Level of Fair Value Hierarchy of Inputs (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated fair value of equities | $ 2,505,496 | $ 3,572,790 | |
Estimated fair value of available for sale debt securities | 14,211,745 | 11,823,968 | |
Estimated fair value of investments (excluding equity method investments and loans) | [1] | 17,632,300 | 16,291,300 |
Senior Notes and other debt | [2] | 1,962,700 | 1,795,500 |
Common Stock | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated fair value of equities | 2,501,400 | 3,567,400 | |
Preferred Stock | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated fair value of equities | 4,100 | 5,400 | |
U.S. Government obligations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated fair value of available for sale debt securities | 1,215,000 | 1,022,400 | |
Municipal bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated fair value of available for sale debt securities | 2,307,900 | 2,214,700 | |
Foreign government obligations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated fair value of available for sale debt securities | 690,700 | 947,900 | |
U.S. corporate bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated fair value of available for sale debt securities | 3,359,000 | 2,385,300 | |
Foreign corporate bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated fair value of available for sale debt securities | 1,377,400 | 1,353,300 | |
RMBS | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated fair value of available for sale debt securities | [3] | 1,840,400 | 1,387,900 |
CMBS | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated fair value of available for sale debt securities | 871,700 | 533,300 | |
Other asset-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated fair value of available for sale debt securities | [4] | 2,549,600 | 1,979,200 |
Short-term Investments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated fair value of investments (excluding equity method investments and loans) | 914,800 | 893,800 | |
Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated fair value of investments (excluding equity method investments and loans) | [5] | 300 | 700 |
Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated fair value of equities | 2,498,100 | 3,563,900 | |
Estimated fair value of investments (excluding equity method investments and loans) | 2,498,100 | 3,563,900 | |
Level 1 | Common Stock | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated fair value of equities | 2,498,100 | 3,563,900 | |
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated fair value of equities | 5,400 | 3,500 | |
Estimated fair value of available for sale debt securities | 12,573,600 | 10,004,500 | |
Estimated fair value of investments (excluding equity method investments and loans) | 13,493,800 | 10,901,800 | |
Senior Notes and other debt | 1,595,600 | 1,510,500 | |
Level 2 | Common Stock | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated fair value of equities | 3,300 | 3,500 | |
Level 2 | Preferred Stock | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated fair value of equities | 2,100 | ||
Level 2 | U.S. Government obligations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated fair value of available for sale debt securities | 1,215,000 | 1,022,400 | |
Level 2 | Municipal bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated fair value of available for sale debt securities | 2,307,900 | 2,214,700 | |
Level 2 | Foreign government obligations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated fair value of available for sale debt securities | 690,700 | 947,900 | |
Level 2 | U.S. corporate bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated fair value of available for sale debt securities | 2,754,000 | 1,959,600 | |
Level 2 | Foreign corporate bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated fair value of available for sale debt securities | 1,208,700 | 1,226,400 | |
Level 2 | RMBS | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated fair value of available for sale debt securities | [3] | 1,838,500 | 1,387,900 |
Level 2 | CMBS | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated fair value of available for sale debt securities | 865,900 | 533,300 | |
Level 2 | Other asset-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated fair value of available for sale debt securities | [4] | 1,692,900 | 712,300 |
Level 2 | Short-term Investments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated fair value of investments (excluding equity method investments and loans) | 914,800 | 893,800 | |
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated fair value of equities | 2,000 | 5,400 | |
Estimated fair value of available for sale debt securities | 1,638,100 | 1,819,500 | |
Estimated fair value of investments (excluding equity method investments and loans) | 1,640,400 | 1,825,600 | |
Senior Notes and other debt | 367,100 | 285,000 | |
Level 3 | Preferred Stock | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated fair value of equities | 2,000 | 5,400 | |
Level 3 | U.S. corporate bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated fair value of available for sale debt securities | 605,000 | 425,700 | |
Level 3 | Foreign corporate bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated fair value of available for sale debt securities | 168,700 | 126,900 | |
Level 3 | RMBS | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated fair value of available for sale debt securities | [3] | 1,900 | |
Level 3 | CMBS | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated fair value of available for sale debt securities | 5,800 | ||
Level 3 | Other asset-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated fair value of available for sale debt securities | [4] | 856,700 | 1,266,900 |
Level 3 | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated fair value of investments (excluding equity method investments and loans) | [5] | $ 300 | $ 700 |
[1] | This table includes debt and equity securities, as well as partnership and non-marketable equity investments carried at fair value that are included in other invested assets. This table excludes investments accounted for using the equity method and commercial mortgage loans that are carried at unpaid principal balance. The fair value of short-term investments approximates amortized cost. The fair value of all other categories of investments is discussed below. | ||
[2] | See Note 8 for additional information on the Senior Notes and other debt. | ||
[3] | Primarily includes government agency pass-through securities guaranteed by a government agency or government sponsored enterprise, among other types of RMBS. | ||
[4] | Includes $834.2 million and $1,266.9 million of collateralized loan obligations as of December 31, 2019 and 2018, respectively. | ||
[5] | Includes partnership and non-marketable equity investments accounted for at fair value and excludes investments accounted for using the equity method. |
Financial Instruments Measure_2
Financial Instruments Measured at Fair Value and Level of Fair Value Hierarchy of Inputs (Parenthetical) (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated fair value of available for sale debt securities | $ 14,211,745 | $ 11,823,968 | |
Other asset-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated fair value of available for sale debt securities | [1] | 2,549,600 | 1,979,200 |
Collateralized loan obligations | Other asset-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated fair value of available for sale debt securities | $ 834,200 | $ 1,266,900 | |
[1] | Includes $834.2 million and $1,266.9 million of collateralized loan obligations as of December 31, 2019 and 2018, respectively. |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | Sep. 24, 2018 | Mar. 15, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Gross transfers into Level 3 | $ 21.8 | $ 65 | |||
Gross transfers out of Level 3 | 25.4 | 221.6 | |||
All Investment Issuers Other Than Ares | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Gross transfers into Level 3 | 6.3 | ||||
Gross transfers out of Level 3 | 164.7 | ||||
Other Asset Backed Securities | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Gross transfers out of Level 3 | 18.9 | 11 | |||
Foreign corporate bonds | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Gross transfers into Level 3 | 14.7 | ||||
Gross transfers out of Level 3 | 1.6 | 0.2 | |||
Common Stock | Ares | Insurance Segment | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Gross transfers into Level 1 | $ 56.9 | $ 208.2 | |||
Other invested assets | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Gross transfers into Level 3 | [1] | 58.8 | |||
Gross transfers out of Level 3 | [1] | 56.9 | |||
Other invested assets | Limited partnership interests in certain subsidiaries of Ares | Insurance Segment | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Gross transfers into Level 3 | $ 58.7 | ||||
Gross transfers out of Level 3 | $ 56.9 | 56.9 | |||
Other invested assets | All Investment Issuers Other Than Ares | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Gross transfers into Level 3 | 0.1 | ||||
Preferred Stock | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Gross transfers into Level 3 | 4.3 | ||||
Gross transfers out of Level 3 | 2 | ||||
U.S. corporate bonds | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Gross transfers into Level 3 | 1.3 | 1.9 | |||
Gross transfers out of Level 3 | $ 2.7 | 1.3 | |||
RMBS | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Gross transfers out of Level 3 | 150.6 | ||||
Other Types of Debt Securities | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Gross transfers out of Level 3 | $ 3.1 | ||||
[1] | Includes partnership and non-marketable equity investments accounted for at fair value. |
Reconciliations of Changes in L
Reconciliations of Changes in Level Three Assets Measured at Fair Value (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | $ 1,825.6 | $ 1,609.3 | |
Net realized/unrealized gains (losses) included in: | |||
Net earnings | [1] | (15.3) | 1.5 |
Other comprehensive income (loss) | 63.4 | (68.9) | |
Purchases | 318 | 1,089.5 | |
Sales | (384) | (70.8) | |
Settlements | (163.7) | (578.4) | |
Transfers into Level 3 | 21.8 | 65 | |
Transfers out of Level 3 | (25.4) | (221.6) | |
Ending balance | 1,640.4 | 1,825.6 | |
Preferred Stock | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | 5.4 | 1.9 | |
Net realized/unrealized gains (losses) included in: | |||
Net earnings | [1] | (1.7) | |
Other comprehensive income (loss) | (2.7) | ||
Purchases | 0.3 | 2 | |
Sales | (0.1) | ||
Transfers into Level 3 | 4.3 | ||
Transfers out of Level 3 | (2) | ||
Ending balance | 2 | 5.4 | |
U.S. corporate bonds | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | 425.7 | 260 | |
Net realized/unrealized gains (losses) included in: | |||
Net earnings | [1] | (6.5) | (0.9) |
Other comprehensive income (loss) | 39.4 | (11.5) | |
Purchases | 184.8 | 182.3 | |
Settlements | (37) | (4.8) | |
Transfers into Level 3 | 1.3 | 1.9 | |
Transfers out of Level 3 | (2.7) | (1.3) | |
Ending balance | 605 | 425.7 | |
Foreign corporate bonds | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | 126.9 | 75.2 | |
Net realized/unrealized gains (losses) included in: | |||
Net earnings | [1] | (5.9) | (0.1) |
Other comprehensive income (loss) | 7.5 | (2.9) | |
Purchases | 42.7 | 58.9 | |
Sales | (5.6) | ||
Settlements | (10) | (4) | |
Transfers into Level 3 | 14.7 | ||
Transfers out of Level 3 | (1.6) | (0.2) | |
Ending balance | 168.7 | 126.9 | |
RMBS | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | 161.8 | ||
Net realized/unrealized gains (losses) included in: | |||
Net earnings | [1] | (0.3) | |
Other comprehensive income (loss) | 0.1 | (5.3) | |
Purchases | 1.8 | ||
Settlements | (5.6) | ||
Transfers out of Level 3 | (150.6) | ||
Ending balance | 1.9 | ||
CMBS | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | 1.6 | ||
Net realized/unrealized gains (losses) included in: | |||
Purchases | 6 | ||
Transfers out of Level 3 | (0.2) | (1.6) | |
Ending balance | 5.8 | ||
Other Asset Backed Securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | 1,266.9 | 1,101.3 | |
Net realized/unrealized gains (losses) included in: | |||
Net earnings | [1] | (1.1) | 1.6 |
Other comprehensive income (loss) | 16.7 | (42.3) | |
Purchases | 82.3 | 846.3 | |
Sales | (378.3) | (65) | |
Settlements | (116.7) | (564) | |
Transfers into Level 3 | 5.8 | ||
Transfers out of Level 3 | (18.9) | (11) | |
Ending balance | 856.7 | 1,266.9 | |
Other invested assets | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | [2] | 0.7 | 7.5 |
Net realized/unrealized gains (losses) included in: | |||
Net earnings | [1],[2] | (0.1) | 1.2 |
Other comprehensive income (loss) | [2] | (0.3) | (4.2) |
Purchases | [2] | 0.1 | |
Sales | [2] | (0.1) | (5.7) |
Transfers into Level 3 | [2] | 58.8 | |
Transfers out of Level 3 | [2] | (56.9) | |
Ending balance | [2] | $ 0.3 | $ 0.7 |
[1] | There were no OTTI losses recorded in net earnings related to Level 3 instruments still held as of December 31, 2019 and 2018. | ||
[2] | Includes partnership and non-marketable equity investments accounted for at fair value. |
Amortized Cost or Cost and Fair
Amortized Cost or Cost and Fair Value of Available For Sale Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Debt securities, amortized cost | $ 13,798,576 | $ 11,895,850 | |
Debt securities, gross unrealized gains | 445,800 | 98,900 | |
Debt securities, gross unrealized losses | (32,800) | (170,800) | |
Debt securities, fair value | 14,211,745 | 11,823,968 | |
Amortized Cost or Cost | 14,713,500 | 12,789,700 | |
Gross Unrealized Gains | 445,800 | 98,900 | |
Gross Unrealized Losses | (32,800) | (170,800) | |
Fair Value | 15,126,500 | 12,717,800 | |
U.S. Government obligations | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Debt securities, amortized cost | 1,198,500 | 1,042,400 | |
Debt securities, gross unrealized gains | 19,300 | 2,400 | |
Debt securities, gross unrealized losses | (2,800) | (22,400) | |
Debt securities, fair value | 1,215,000 | 1,022,400 | |
Municipal bonds | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Debt securities, amortized cost | 2,190,500 | 2,177,500 | |
Debt securities, gross unrealized gains | 118,700 | 44,400 | |
Debt securities, gross unrealized losses | (1,300) | (7,200) | |
Debt securities, fair value | 2,307,900 | 2,214,700 | |
Foreign government obligations | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Debt securities, amortized cost | 675,900 | 939,000 | |
Debt securities, gross unrealized gains | 16,400 | 12,300 | |
Debt securities, gross unrealized losses | (1,600) | (3,400) | |
Debt securities, fair value | 690,700 | 947,900 | |
U.S. corporate bonds | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Debt securities, amortized cost | 3,206,200 | 2,431,400 | |
Debt securities, gross unrealized gains | 155,100 | 13,200 | |
Debt securities, gross unrealized losses | (2,300) | (59,300) | |
Debt securities, fair value | 3,359,000 | 2,385,300 | |
Foreign corporate bonds | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Debt securities, amortized cost | 1,348,100 | 1,363,000 | |
Debt securities, gross unrealized gains | 32,200 | 9,100 | |
Debt securities, gross unrealized losses | (2,900) | (18,800) | |
Debt securities, fair value | 1,377,400 | 1,353,300 | |
RMBS | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Debt securities, amortized cost | 1,785,100 | 1,392,400 | |
Debt securities, gross unrealized gains | 56,100 | 10,300 | |
Debt securities, gross unrealized losses | (800) | (14,800) | |
Debt securities, fair value | [1] | 1,840,400 | 1,387,900 |
CMBS | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Debt securities, amortized cost | 849,900 | 536,900 | |
Debt securities, gross unrealized gains | 23,200 | 2,800 | |
Debt securities, gross unrealized losses | (1,400) | (6,400) | |
Debt securities, fair value | 871,700 | 533,300 | |
Other Asset Backed Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Debt securities, amortized cost | [2] | 2,544,500 | 2,013,300 |
Debt securities, gross unrealized gains | [2] | 24,800 | 4,400 |
Debt securities, gross unrealized losses | [2] | (19,700) | (38,500) |
Debt securities, fair value | [2] | 2,549,600 | 1,979,200 |
Short-term Investments | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost or Cost | 914,800 | 893,800 | |
Fair Value | $ 914,800 | $ 893,800 | |
[1] | Primarily includes government agency pass-through securities guaranteed by a government agency or government sponsored enterprise, among other types of RMBS. | ||
[2] | Includes $834.2 million and $1,266.9 million of collateralized loan obligations as of December 31, 2019 and 2018, respectively. |
Amortized Cost or Cost and Fa_2
Amortized Cost or Cost and Fair Value of Available For Sale Securities (Parenthetical) (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Estimated fair value of available for sale debt securities | $ 14,211,745 | $ 11,823,968 | |
Other asset-backed securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Estimated fair value of available for sale debt securities | [1] | 2,549,600 | 1,979,200 |
Other asset-backed securities | Collateralized loan obligations | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Estimated fair value of available for sale debt securities | $ 834,200 | $ 1,266,900 | |
[1] | Includes $834.2 million and $1,266.9 million of collateralized loan obligations as of December 31, 2019 and 2018, respectively. |
Amortized Cost or Cost and Esti
Amortized Cost or Cost and Estimated Fair Value of Debt Securities by Contractual Maturity (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Investments Debt And Equity Securities [Abstract] | |||
Short-term investments due in one year or less, amortized cost | $ 914,800 | ||
Mortgage and asset-backed securities, amortized cost | [1] | 5,179,500 | |
Debt securities with maturity dates, amortized cost: | |||
One year or less | 597,200 | ||
Over one through five years | 3,416,000 | ||
Over five through ten years | 2,592,400 | ||
Over ten years | 2,013,600 | ||
Debt securities, amortized cost | 13,798,576 | $ 11,895,850 | |
Short-term investments due in one year or less, fair value | 914,776 | 893,776 | |
Mortgage and asset-backed securities, fair value | [1] | 5,261,700 | |
Debt securities with maturity dates, fair value: | |||
One year or less | 598,900 | ||
Over one through five years | 3,489,900 | ||
Over five through ten years | 2,705,100 | ||
Over ten years | 2,156,100 | ||
Total debt securities, fair value | $ 14,211,745 | $ 11,823,968 | |
[1] | Mortgage and asset-backed securities by their nature do not generally have single maturity dates. |
Net Investment Income (Detail)
Net Investment Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Net Investment Income [Line Items] | ||||
Interest income | $ 499,500 | $ 420,800 | $ 412,100 | |
Dividend income | 37,900 | 78,500 | 47,400 | |
Investment expenses | (28,900) | (31,500) | (28,100) | |
Other investment results | 26,700 | 19,000 | 18,000 | |
Net investment income | 550,241 | 500,534 | 451,016 | |
Limited partnership interests in certain subsidiaries of Ares | ||||
Net Investment Income [Line Items] | ||||
Equity results | [1] | 20,200 | 3,300 | |
Pillar Capital Holdings Limited And Managed Funds | ||||
Net Investment Income [Line Items] | ||||
Equity results | [1] | $ 15,000 | $ (6,500) | $ (1,700) |
[1] | See Note 4(i) for discussion of the Pillar Investments, as defined therein, and limited partnership interests in certain subsidiaries of Ares. |
Summary of Increases (Decreases
Summary of Increases (Decreases) in Fair Value of Equity Securities (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Equity Securities Fv Ni Gain Loss [Abstract] | ||
Change in the fair value of equity securities sold during the period | $ 59,100 | $ (175,600) |
Change in the fair value of equity securities held at the end of the period | 650,600 | (53,400) |
Change in the fair value of equity securities | $ 709,695 | $ (228,994) |
Investments - Additional Inform
Investments - Additional Information (Detail) | Jul. 18, 2019USD ($) | Sep. 24, 2018USD ($) | Mar. 15, 2018USD ($) | Dec. 29, 2017USD ($) | Dec. 31, 2019USD ($)Investment | Jul. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2019USD ($)Investment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Investments [Line Items] | ||||||||||
Proceeds from sale of debt and equity securities | $ 5,900,000,000 | $ 5,300,000,000 | $ 8,300,000,000 | |||||||
Pre tax loss from sale of privately held investment accounted under equity method | $ 13,600,000 | 13,600,000 | ||||||||
Net realized capital gains | $ (6,551,000) | (3,241,000) | 107,222,000 | |||||||
Securities impairment test description | Debt securities in an unrealized loss position are evaluated for OTTI if they meet any of the following criteria: (i) they are trading at a discount of at least 20 percent to amortized cost for an extended period of time (nine consecutive months or more); (ii) there has been a negative credit or news event with respect to the issuer that could indicate the existence of an OTTI; or (iii) Alleghany intends to sell, or it is more likely than not that Alleghany will sell, the debt security before recovery of its amortized cost basis. If Alleghany intends to sell, or it is more likely than not that Alleghany will sell, a debt security before recovery of its amortized cost basis, the total amount of the unrealized loss position is recognized as an OTTI loss in earnings. To the extent that a debt security that is in an unrealized loss position is not impaired based on the preceding, Alleghany will consider a debt security to be impaired when it believes it to be probable that Alleghany will not be able to collect the entire amortized cost basis. For debt securities in an unrealized loss position as of the end of each quarter, Alleghany develops a best estimate of the present value of expected cash flows. If the results of the cash flow analysis indicate that Alleghany will not recover the full amount of its amortized cost basis in the debt security, Alleghany records an OTTI loss in earnings equal to the difference between the present value of expected cash flows and the amortized cost basis of the debt security. If applicable, the difference between the total unrealized loss position on the debt security and the OTTI loss recognized in earnings is the non-credit related portion, which is recorded as a component of other comprehensive income. In developing the cash flow analyses for debt securities, Alleghany considers various factors for the different categories of debt securities. For municipal bonds, Alleghany takes into account the taxing power of the issuer, source of revenue, credit risk and enhancements and pre-refunding. For mortgage and asset-backed securities, Alleghany discounts its best estimate of future cash flows at an effective rate equal to the original effective yield of the security or, in the case of floating rate securities, at the current coupon. Alleghany’s models include assumptions about prepayment speeds, default and delinquency rates, underlying collateral (if any), credit ratings, credit enhancements and other observable market data. For corporate bonds, Alleghany reviews business prospects, credit ratings and available information from asset managers and rating agencies for individual securities. | |||||||||
Other than temporary impairment losses | $ 19,660,000 | $ 1,328,000 | ||||||||
Other than temporary impairment losses | 16,871,000 | |||||||||
Percentage of debt securities owned with credit rating below investment grade or not rated | 3.60% | 3.60% | 4.40% | |||||||
Statutory deposit, investments at fair value | $ 2,300,000,000 | $ 2,300,000,000 | ||||||||
Other invested assets | 573,605,000 | 573,605,000 | $ 555,972,000 | |||||||
Equity securities | 2,505,496,000 | 2,505,496,000 | 3,572,790,000 | |||||||
Available-for-sale Securities | 15,126,500,000 | 15,126,500,000 | 12,717,800,000 | |||||||
Net investment income | 550,241,000 | 500,534,000 | 451,016,000 | |||||||
Commercial mortgage loans | 686,206,000 | 686,206,000 | 676,532,000 | |||||||
Allowance for loan losses on commercial mortgage loans | 0 | $ 0 | ||||||||
Minimum | ||||||||||
Investments [Line Items] | ||||||||||
Term of commercial mortgage loans | 2 years | |||||||||
Maximum | ||||||||||
Investments [Line Items] | ||||||||||
Term of commercial mortgage loans | 10 years | |||||||||
Pillar Capital Holdings Limited And Managed Funds | ||||||||||
Investments [Line Items] | ||||||||||
Other invested assets | $ 205,500,000 | $ 205,500,000 | ||||||||
Stranded Oil Resources Corporation | ||||||||||
Investments [Line Items] | ||||||||||
Write down of oil field assets | 35,400,000 | |||||||||
Loss on sale of oil field | $ 4,800,000 | 4,800,000 | ||||||||
Pacific Comp | ||||||||||
Investments [Line Items] | ||||||||||
Gain on disposition of business | 8,400,000 | |||||||||
Insurance Segment | Ares | ||||||||||
Investments [Line Items] | ||||||||||
Net realized capital gains | $ 45,700,000 | 45,700,000 | ||||||||
Investment in other invested asset | $ 250,000,000 | |||||||||
Percentage of equity stake | 6.25% | |||||||||
Insurance Segment | Ares | Maximum | ||||||||||
Investments [Line Items] | ||||||||||
Investment commitment in investment fund | $ 1,000,000,000 | |||||||||
Insurance Segment | Pillar Capital Holdings Limited And Managed Funds | ||||||||||
Investments [Line Items] | ||||||||||
Investment in other invested asset | $ 25,000,000 | |||||||||
Insurance Segment | Limited partnership interests in certain subsidiaries of Ares | ||||||||||
Investments [Line Items] | ||||||||||
Net investment income | 12,900,000 | |||||||||
Alleghany Capital Corporation | ||||||||||
Investments [Line Items] | ||||||||||
Gain on settlement of contingent consideration liabilities | 20,900,000 | |||||||||
Reinsurance Segment | ||||||||||
Investments [Line Items] | ||||||||||
Write-down of assets | 7,900,000 | |||||||||
Reinsurance Segment | Pillar Capital Holdings Limited And Managed Funds | ||||||||||
Investments [Line Items] | ||||||||||
Investment in other invested asset | $ 175,000,000 | |||||||||
Put Option | Equity Contract | ||||||||||
Investments [Line Items] | ||||||||||
Decline in value of derivative recorded as a reduction to net realized capital gains | 38,400,000 | |||||||||
Put Option | Equity Contract | Insurance Segment | ||||||||||
Investments [Line Items] | ||||||||||
Cost of Put Option | $ 38,400,000 | |||||||||
Portion of equity portfolio hedged for downside equity market risk | $ 1,000,000,000 | |||||||||
Derivative, maturity date | Dec. 31, 2019 | |||||||||
Decline in value of derivative recorded as a reduction to net realized capital gains | 38,400,000 | |||||||||
Debt Securities | ||||||||||
Investments [Line Items] | ||||||||||
Other than temporary impairment losses | $ 19,700,000 | 1,300,000 | ||||||||
Other than temporary impairment losses | 1,800,000 | |||||||||
Number of securities in an unrealized loss position | Investment | 860 | 860 | ||||||||
Number of securities in an unrealized loss position for 12 months or more | Investment | 280 | 280 | ||||||||
Equity Securities | ||||||||||
Investments [Line Items] | ||||||||||
Other than temporary impairment losses | $ 15,100,000 | |||||||||
Common Stock | ||||||||||
Investments [Line Items] | ||||||||||
Equity securities | $ 2,501,400,000 | $ 2,501,400,000 | $ 3,567,400,000 | |||||||
Common Stock | Insurance Segment | Ares | ||||||||||
Investments [Line Items] | ||||||||||
Equity securities | 208,200,000 | |||||||||
Reclassification of converted interests from other invested assets to equity securities | $ 56,900,000 | |||||||||
Other invested assets | Insurance Segment | Limited partnership interests in certain subsidiaries of Ares | ||||||||||
Investments [Line Items] | ||||||||||
Available-for-sale Securities | $ 58,700,000 |
Amounts of Gross Realized Capit
Amounts of Gross Realized Capital Gains and Gross Realized Capital Losses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investments Debt And Equity Securities [Abstract] | |||
Gross realized capital gains | $ 62,400 | $ 86,900 | $ 236,700 |
Gross realized capital losses | (68,900) | (90,100) | (129,500) |
Net realized capital gains | $ (6,551) | $ (3,241) | $ 107,222 |
Gross Unrealized Losses and Rel
Gross Unrealized Losses and Related Fair Values for Available-for-Sale Securities Grouped by Duration of Time in Continuous Unrealized Loss Position (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of Available-for-sale Securities [Line Items] | ||
Securities, less than 12 months, fair value | $ 1,333.2 | $ 4,180.6 |
Securities, less than 12 months, gross unrealized losses | 12.8 | 97 |
Securities, 12 months or more, fair value | 998 | 2,265.5 |
Securities, 12 months or more, gross unrealized losses | 20 | 73.8 |
Total, fair value | 2,331.2 | 6,446.1 |
Total, gross unrealized losses | 32.8 | 170.8 |
U.S. Government obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities, less than 12 months, fair value | 120.3 | 78.5 |
Securities, less than 12 months, gross unrealized losses | 2 | 0.9 |
Securities, 12 months or more, fair value | 99.7 | 690.5 |
Securities, 12 months or more, gross unrealized losses | 0.8 | 21.5 |
Total, fair value | 220 | 769 |
Total, gross unrealized losses | 2.8 | 22.4 |
Municipal bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities, less than 12 months, fair value | 90.2 | 312.4 |
Securities, less than 12 months, gross unrealized losses | 1.3 | 2.5 |
Securities, 12 months or more, fair value | 4.3 | 202.5 |
Securities, 12 months or more, gross unrealized losses | 4.7 | |
Total, fair value | 94.5 | 514.9 |
Total, gross unrealized losses | 1.3 | 7.2 |
Foreign government obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities, less than 12 months, fair value | 198.5 | 60.7 |
Securities, less than 12 months, gross unrealized losses | 1.2 | 0.1 |
Securities, 12 months or more, fair value | 33.8 | 186.7 |
Securities, 12 months or more, gross unrealized losses | 0.4 | 3.3 |
Total, fair value | 232.3 | 247.4 |
Total, gross unrealized losses | 1.6 | 3.4 |
U.S. corporate bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities, less than 12 months, fair value | 113.8 | 1,187.9 |
Securities, less than 12 months, gross unrealized losses | 1.6 | 39.4 |
Securities, 12 months or more, fair value | 27.6 | 379.7 |
Securities, 12 months or more, gross unrealized losses | 0.7 | 19.9 |
Total, fair value | 141.4 | 1,567.6 |
Total, gross unrealized losses | 2.3 | 59.3 |
Foreign corporate bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities, less than 12 months, fair value | 212 | 501.5 |
Securities, less than 12 months, gross unrealized losses | 2.3 | 9.7 |
Securities, 12 months or more, fair value | 66.9 | 349.1 |
Securities, 12 months or more, gross unrealized losses | 0.6 | 9.1 |
Total, fair value | 278.9 | 850.6 |
Total, gross unrealized losses | 2.9 | 18.8 |
RMBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities, less than 12 months, fair value | 48.7 | 397.7 |
Securities, less than 12 months, gross unrealized losses | 0.3 | 6.4 |
Securities, 12 months or more, fair value | 48.6 | 225.9 |
Securities, 12 months or more, gross unrealized losses | 0.5 | 8.4 |
Total, fair value | 97.3 | 623.6 |
Total, gross unrealized losses | 0.8 | 14.8 |
CMBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities, less than 12 months, fair value | 126.8 | 199.1 |
Securities, less than 12 months, gross unrealized losses | 1.4 | 1.3 |
Securities, 12 months or more, fair value | 1.2 | 109.5 |
Securities, 12 months or more, gross unrealized losses | 5.1 | |
Total, fair value | 128 | 308.6 |
Total, gross unrealized losses | 1.4 | 6.4 |
Other asset-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities, less than 12 months, fair value | 422.9 | 1,442.8 |
Securities, less than 12 months, gross unrealized losses | 2.7 | 36.7 |
Securities, 12 months or more, fair value | 715.9 | 121.6 |
Securities, 12 months or more, gross unrealized losses | 17 | 1.8 |
Total, fair value | 1,138.8 | 1,564.4 |
Total, gross unrealized losses | $ 19.7 | $ 38.5 |
Reinsurance Recoverables (Detai
Reinsurance Recoverables (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Insurance [Abstract] | ||||||
Reinsurance recoverables on paid losses | $ 98,100 | $ 63,900 | ||||
Ceded outstanding loss and LAE | [2] | 1,583,900 | [1] | 1,857,400 | $ 1,650,100 | $ 1,236,200 |
Total | $ 1,681,962 | $ 1,921,278 | ||||
[1] | Includes unallocated LAE, which aggregate to 1.1 percent of gross loss and LAE reserves as of December 31, 2019. Net loss and LAE reserves by component are shown in the preceding tables, and consolidated gross loss and LAE reserves is presented in the consolidated balance sheets. | |||||
[2] | Reinsurance recoverables in this table include only ceded loss and LAE reserves. |
Information Regarding Concentra
Information Regarding Concentration of Reinsurance Recoverables and The Ratings Profile of Its Reinsurers (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Ceded Credit Risk [Line Items] | |||
Reinsurance Recoverable | $ 1,681,962 | $ 1,921,278 | |
Reinsurance Recoverable | Reinsurer Concentration Risk | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance Recoverable | [1],[2] | $ 1,682,000 | |
Reinsurance recoverable as percentage of total reinsurance recoverables | [1],[2] | 100.00% | |
Reinsurance Recoverable | Reinsurer Concentration Risk | Ceded Credit Risk, Secured | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance Recoverable | [2],[3] | $ 680,500 | |
Reinsurance recoverable as percentage of total reinsurance recoverables | [2],[3] | 40.50% | |
Reinsurance Recoverable | Reinsurer Concentration Risk | All other reinsurers | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance Recoverable | [2] | $ 759,900 | |
Reinsurance recoverable as percentage of total reinsurance recoverables | [2] | 45.10% | |
A (Excellent) | Reinsurance Recoverable | Reinsurer Concentration Risk | Syndicates at Lloyd's of London | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance Recoverable | [2],[4] | $ 134,700 | |
Reinsurance recoverable as percentage of total reinsurance recoverables | [2],[4] | 8.00% | |
A (Excellent) | Reinsurance Recoverable | Reinsurer Concentration Risk | PartnerRe Limited | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance Recoverable | [2],[4] | $ 95,100 | |
Reinsurance recoverable as percentage of total reinsurance recoverables | [2],[4] | 5.70% | |
A (Excellent) | Reinsurance Recoverable | Reinsurer Concentration Risk | Fairfax Financial Holdings Limited | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance Recoverable | [2],[4] | $ 89,600 | |
Reinsurance recoverable as percentage of total reinsurance recoverables | [2],[4] | 5.30% | |
A (Excellent) | Reinsurance Recoverable | Reinsurer Concentration Risk | Liberty Mutual | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance Recoverable | [2],[4] | $ 60,700 | |
Reinsurance recoverable as percentage of total reinsurance recoverables | [2],[4] | 3.60% | |
Not Rated | Reinsurance Recoverable | Reinsurer Concentration Risk | Kane SAC Ltd, Rondout Segregated Account | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance Recoverable | [2],[3],[4] | $ 134,600 | |
Reinsurance recoverable as percentage of total reinsurance recoverables | [2],[3],[4] | 8.00% | |
Not Rated | Reinsurance Recoverable | Reinsurer Concentration Risk | Kane SAC Ltd, Bowery Segregated Account | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance Recoverable | [2],[3],[4] | $ 86,400 | |
Reinsurance recoverable as percentage of total reinsurance recoverables | [2],[3],[4] | 5.10% | |
A+ (Superior) | Reinsurance Recoverable | Reinsurer Concentration Risk | Swiss Reinsurance Company | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance Recoverable | [2],[4] | $ 91,700 | |
Reinsurance recoverable as percentage of total reinsurance recoverables | [2],[4] | 5.50% | |
A+ (Superior) | Reinsurance Recoverable | Reinsurer Concentration Risk | RenaissanceRe Holdings Ltd | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance Recoverable | [2],[4] | $ 79,800 | |
Reinsurance recoverable as percentage of total reinsurance recoverables | [2],[4] | 4.80% | |
A+ (Superior) | Reinsurance Recoverable | Reinsurer Concentration Risk | W.R. Berkley Corporation | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance Recoverable | [2],[4] | $ 68,400 | |
Reinsurance recoverable as percentage of total reinsurance recoverables | [2],[4] | 4.10% | |
A- (Excellent) | Reinsurance Recoverable | Reinsurer Concentration Risk | Third Point Reinsurance Group | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance Recoverable | [2],[4] | $ 81,100 | |
Reinsurance recoverable as percentage of total reinsurance recoverables | [2],[4] | 4.80% | |
[1] | Approximately 66 percent of Alleghany’s reinsurance recoverables balance as of December 31, 2019 was due from reinsurers having an A.M. Best Company, Inc. financial strength rating of A (Excellent) or higher, with a majority of the other reinsurance recoverables being secured by funds held, trust agreements or letters of credit. | ||
[2] | Reinsurance recoverables reflect amounts due from one or more reinsurance subsidiaries of the listed company. | ||
[3] | Represents reinsurance recoverables secured by funds held, trust agreements or letters of credit. | ||
[4] | Represents the A.M. Best Company, Inc. financial strength rating for the applicable reinsurance subsidiary or subsidiaries from which the reinsurance recoverable is due. |
Information Regarding Concent_2
Information Regarding Concentration of Reinsurance Recoverables and The Ratings Profile of Its Reinsurers (Parenthetical) (Detail) - Reinsurance Recoverable - Reinsurer Concentration Risk | 12 Months Ended | |
Dec. 31, 2019 | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance recoverable as percentage of total reinsurance recoverables | 100.00% | [1],[2] |
A (Excellent) or higher | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance recoverable as percentage of total reinsurance recoverables | 66.00% | |
[1] | Approximately 66 percent of Alleghany’s reinsurance recoverables balance as of December 31, 2019 was due from reinsurers having an A.M. Best Company, Inc. financial strength rating of A (Excellent) or higher, with a majority of the other reinsurance recoverables being secured by funds held, trust agreements or letters of credit. | |
[2] | Reinsurance recoverables reflect amounts due from one or more reinsurance subsidiaries of the listed company. |
Reinsurance Ceded - Additional
Reinsurance Ceded - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Effects of Reinsurance [Line Items] | |||
Ceded loss and loss adjustment expenses incurred | $ 407.7 | $ 628.2 | $ 777.4 |
AIHL Re Limited Liability Company reinsurance of CapSpecialty Incorporated | Alleghany Corporation | Financial Guarantee | |||
Effects of Reinsurance [Line Items] | |||
Guarantee amount related to intercompany reinsurance agreement | 50 | ||
CapSpecialty Incorporated | AIHL Re Limited Liability Company reinsurance of CapSpecialty Incorporated | |||
Effects of Reinsurance [Line Items] | |||
Reinsurance coverage before co-participation | $ 50 |
Property and Casualty Premiums
Property and Casualty Premiums Written and Earned (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Premiums Written And Earned [Abstract] | |||
Gross premiums written – direct | $ 1,800,300 | $ 1,537,800 | $ 1,528,700 |
Gross premiums written – assumed | 4,856,100 | 4,357,800 | 4,168,200 |
Ceded premiums written | (904,700) | (847,200) | (731,000) |
Net premiums written | 5,751,700 | 5,048,400 | 4,965,900 |
Gross premiums earned – direct | 2,114,100 | 1,935,300 | 1,932,000 |
Gross premiums earned – assumed | 4,268,800 | 3,881,400 | 3,790,300 |
Ceded premiums earned | (904,800) | (840,500) | (767,300) |
Net premiums earned | $ 5,478,143 | $ 4,976,190 | $ 4,954,990 |
Activity in the Liability for L
Activity in the Liability for Loss and Loss Adjustment Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Activity in liability for loss and loss adjustment expense | ||||||
Reserves as of January 1 | $ 12,250,294 | $ 11,871,300 | $ 11,087,200 | |||
Less: reinsurance recoverables | [1] | 1,857,400 | 1,650,100 | 1,236,200 | ||
Net reserves as of January 1 | 10,392,900 | 10,221,200 | 9,851,000 | |||
Other adjustments | (2,300) | 900 | (293,700) | [2] | ||
Incurred loss and LAE, net of reinsurance, related to: | ||||||
Current year | 3,871,100 | 3,849,400 | 3,918,800 | |||
Prior years | (184,700) | (329,000) | (298,600) | |||
Total incurred loss and LAE, net of reinsurance | 3,686,435 | 3,520,431 | 3,620,197 | |||
Paid loss and LAE, net of reinsurance, related to: | ||||||
Current year | [3] | 884,600 | 838,900 | 853,200 | ||
Prior years | [3] | 2,839,900 | 2,419,000 | 2,225,200 | ||
Total paid loss and LAE, net of reinsurance | [3] | 3,724,500 | 3,257,900 | 3,078,400 | ||
Foreign currency exchange rate effect | (8,000) | (91,700) | 122,100 | |||
Net reserves as of December 31 | 10,344,500 | [4] | 10,392,900 | 10,221,200 | ||
Reinsurance recoverables as of December 31 | [1] | 1,583,900 | [4] | 1,857,400 | 1,650,100 | |
Reserves as of December 31 | $ 11,928,359 | [4] | $ 12,250,294 | $ 11,871,300 | ||
[1] | Reinsurance recoverables in this table include only ceded loss and LAE reserves. | |||||
[2] | Primarily represents the impact on net reserves arising from the sale of PacificComp. | |||||
[3] | Includes paid loss and LAE, net of reinsurance, related to commutations. | |||||
[4] | Includes unallocated LAE, which aggregate to 1.1 percent of gross loss and LAE reserves as of December 31, 2019. Net loss and LAE reserves by component are shown in the preceding tables, and consolidated gross loss and LAE reserves is presented in the consolidated balance sheets. |
Liability for Loss and LAE - Ad
Liability for Loss and LAE - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||
Losses incurred, net of reinsurance | $ 3,686,435 | $ 3,520,431 | $ 3,620,197 |
Typhoon Hagibis | |||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||
Losses incurred, net of reinsurance | 183,700 | ||
Typhoon Faxai | |||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||
Losses incurred, net of reinsurance | 95,400 | ||
Civil Unrest in Chile | |||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||
Losses incurred, net of reinsurance | 22,300 | ||
Hurricane Dorian | |||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||
Losses incurred, net of reinsurance | $ 13,600 | ||
Typhoon Jebi | |||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||
Losses incurred, net of reinsurance | 183,400 | ||
Wildfires in California | |||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||
Losses incurred, net of reinsurance | 182,000 | ||
Hurricane Michael | |||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||
Losses incurred, net of reinsurance | 135,200 | ||
Hurricane Florence | |||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||
Losses incurred, net of reinsurance | 70,400 | ||
Typhoon Trami | |||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||
Losses incurred, net of reinsurance | $ 33,700 |
(Favorable) Unfavorable Prior A
(Favorable) Unfavorable Prior Accident Year Loss Reserve Development (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||
Claims Development [Line Items] | |||||||
Claims incurred related to prior years | $ (184.7) | $ (329) | $ (298.6) | ||||
Reinsurance Segment | |||||||
Claims Development [Line Items] | |||||||
Claims incurred related to prior years | (195.8) | (266.1) | (249.5) | ||||
Reinsurance Segment | Property | |||||||
Claims Development [Line Items] | |||||||
Claims incurred related to prior years | (46.2) | (84.9) | (94.5) | ||||
Reinsurance Segment | Property | Property Catastrophe | |||||||
Claims Development [Line Items] | |||||||
Claims incurred related to prior years | (6.8) | [1] | (20.2) | [2] | (22.2) | [3] | |
Reinsurance Segment | Property | Property Non-catastrophe | |||||||
Claims Development [Line Items] | |||||||
Claims incurred related to prior years | (39.4) | [4] | (64.7) | [5] | (72.3) | [6] | |
Reinsurance Segment | Casualty & Other | |||||||
Claims Development [Line Items] | |||||||
Claims incurred related to prior years | (149.6) | (181.2) | (155) | ||||
Reinsurance Segment | Casualty & Other | Ogden Rate Impact | |||||||
Claims Development [Line Items] | |||||||
Claims incurred related to prior years | [7] | 24.4 | |||||
Reinsurance Segment | Casualty & Other | Malpractice Treaties | |||||||
Claims Development [Line Items] | |||||||
Claims incurred related to prior years | [8] | (1.4) | (3.4) | (5) | |||
Reinsurance Segment | Casualty & Other | All Other Casualty and Other | |||||||
Claims Development [Line Items] | |||||||
Claims incurred related to prior years | (148.2) | [9] | (177.8) | [10] | (174.4) | [11] | |
Insurance Segment | RSUI | |||||||
Claims Development [Line Items] | |||||||
Claims incurred related to prior years | (17.5) | (58.7) | (43.2) | ||||
Insurance Segment | RSUI | Casualty Insurance | |||||||
Claims Development [Line Items] | |||||||
Claims incurred related to prior years | (16.3) | [12] | (27.8) | [13] | (38.9) | [14] | |
Insurance Segment | RSUI | Property and Other Insurance | |||||||
Claims Development [Line Items] | |||||||
Claims incurred related to prior years | (1.2) | [15] | (30.9) | [16] | (4.3) | [17] | |
Insurance Segment | CapSpecialty Incorporated | |||||||
Claims Development [Line Items] | |||||||
Claims incurred related to prior years | 28.6 | (4.2) | (3.4) | ||||
Insurance Segment | CapSpecialty Incorporated | Ongoing Lines Of Business | |||||||
Claims Development [Line Items] | |||||||
Claims incurred related to prior years | 26.1 | [18] | $ (4.2) | [19] | (3.4) | [20] | |
Insurance Segment | CapSpecialty Incorporated | Terminated Program Business | |||||||
Claims Development [Line Items] | |||||||
Claims incurred related to prior years | [21] | 3 | |||||
Insurance Segment | CapSpecialty Incorporated | Asbestos and Environmental | |||||||
Claims Development [Line Items] | |||||||
Claims incurred related to prior years | $ (0.5) | ||||||
Insurance Segment | Pacific Comp | |||||||
Claims Development [Line Items] | |||||||
Claims incurred related to prior years | [22] | $ (2.5) | |||||
[1] | Primarily reflects favorable prior accident year loss reserve development related to wildfires in California in the 2018 accident year, partially offset by unfavorable prior accident year loss reserve development related to Typhoon Jebi in the 2018 accident year and Hurricane Irma in 2017 accident year. | ||||||
[2] | Primarily reflects favorable prior accident year loss reserve development related to Hurricane Harvey in the 2017 accident year and catastrophes in the 2016 accident year, partially offset by unfavorable prior accident year loss reserve development related to Hurricanes Maria and Irma in the 2017 accident year. | ||||||
[3] | Reflects favorable prior accident year loss reserve development related to several catastrophes primarily in the 2016 accident year. | ||||||
[4] | Primarily reflects favorable prior accident year loss reserve development in the 2016 and 2017 accident years, partially offset by unfavorable prior accident year loss reserve development in the 2018 accident year. | ||||||
[5] | Primarily reflects favorable prior accident year loss reserve development in the 2015 and 2016 accident years, partially offset by unfavorable prior accident year loss reserve development in the 2017 accident year. | ||||||
[6] | Reflects favorable prior accident year loss reserve development primarily in the 2011 through 2016 accident years. | ||||||
[7] | Represents unfavorable prior accident year loss reserve development related to the U.K. Ministry of Justice’s reduction in the discount rate used to calculate lump-sum bodily injury payouts in personal injury insurance claims in the U.K to negative 0.75 percent as of March 20, 2017 from 2.50 percent. | ||||||
[8] | Represents certain medical malpractice treaties pursuant to which the increased underwriting profits created by the favorable prior accident year loss reserve development are largely retained by the cedants. As a result, the favorable prior accident year loss reserve development is largely offset by an increase in profit commission expense incurred when such favorable prior accident year loss reserve development occurs. | ||||||
[9] | Primarily reflects favorable prior accident year loss reserve development in the longer-tailed casualty lines of business in the 2014 and prior accident years and, to a lesser extent, shorter-tailed lines of business in the 2014 and prior accident years, partially offset by unfavorable prior accident year loss reserve development in the marine and aviation lines of business in the 2018 accident year. | ||||||
[10] | Primarily reflects favorable prior accident year loss reserve development in the longer-tailed casualty lines of business in the 2002 through 2010 accident years and in the shorter-tailed casualty lines of business (specifically, ocean marine, automobile liability and accident & health) in the 2017 accident year, partially offset by unfavorable prior accident year loss reserve development in the professional liability lines of business in the 2015 accident year. | ||||||
[11] | Primarily reflects favorable prior accident year loss reserve development in: (i) longer-tailed professional liability and general liability lines of business in the 2003 through 2012 accident years; and (ii) shorter-tailed casualty lines of business in the 2010 through 2014 accident years; partially offset by unfavorable prior accident year loss reserve development in shorter-tailed casualty lines of business in the 2015 and 2016 accident years. | ||||||
[12] | Primarily reflects favorable prior accident year loss reserve development in the directors’ and officers’ liability and umbrella/excess lines of business in the 2011 through 2015 accident years, partially offset by unfavorable prior accident year loss reserve development in the professional liability lines of business in the 2016 through 2018 accident years. | ||||||
[13] | Primarily reflects favorable prior accident year loss reserve development in the umbrella/excess lines of business in the 2005 through 2012 accident years, partially offset by unfavorable prior accident year loss reserve development in the directors’ and officers’ liability lines of business in the 2009, 2012 and 2016 accident years. | ||||||
[14] | Primarily reflects favorable prior accident year loss reserve development in the umbrella/excess lines of business in the 2005 through 2011 accident years. | ||||||
[15] | Primarily reflects favorable prior accident year loss reserve development related to Superstorm Sandy in the 2012 accident year, Hurricanes Florence and Michael in the 2018 accident year and Hurricanes Harvey and Maria in the 2017 accident year, partially offset by assumed property reinsurance lines of business from both catastrophe and non-catastrophe losses in the 2018 accident year. | ||||||
[16] | Primarily reflects favorable prior accident year loss reserve development related to Hurricane Irma in the 2017 accident year and, to a lesser extent, Hurricane Matthew in the 2016 accident year, as well as various other losses not classified as catastrophes in recent accident years. | ||||||
[17] | Primarily reflects favorable prior accident year catastrophe loss reserve development in the 2016 accident year, partially offset by unfavorable prior accident year property loss reserve development in the binding authority lines of business primarily in the 2015 and 2016 accident years. | ||||||
[18] | Primarily reflects unfavorable prior accident year loss reserves development related to the professional liability and other casualty lines of business in the 2015 through 2018 accident years. | ||||||
[19] | Primarily reflects favorable prior accident year loss reserve development in the surety lines of business in the 2016 and 2017 accident years. | ||||||
[20] | Primarily reflects favorable prior accident year loss reserve development in the casualty lines of business in the 2010, 2014, 2015 and 2016 accident years. | ||||||
[21] | Represents certain specialty lines of business written through a program administrator in connection with a terminated program in the 2010 and 2009 accident years and reflects favorable loss emergence compared with loss emergence patterns assumed in earlier periods for such business. | ||||||
[22] | Primarily reflects favorable prior accident year loss reserve development in the 2013 and prior accident years. |
(Favorable) Unfavorable Prior_2
(Favorable) Unfavorable Prior Accident Year Loss Reserve Development (Parenthetical) (Detail) | Mar. 20, 2017 | Mar. 19, 2017 |
Liability For Unpaid Claims And Claims Adjustment Expense Incurred Claims [Abstract] | ||
Ogden discount rate | (0.75%) | 2.50% |
Information About Incurred and
Information About Incurred and Paid Loss and LAE Development - Reinsurance Segment - Property (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | ||
Claims Development [Line Items] | ||||||||||||
Unpaid loss and LAE, net of reinsurance recoverables | $ 10,344.5 | [1] | $ 10,392.9 | $ 10,221.2 | $ 9,851 | |||||||
Reinsurance Segment | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Unpaid loss and LAE, net of reinsurance recoverables | [1] | 8,416.3 | ||||||||||
Reinsurance Segment | Property | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Unpaid loss and LAE, net of reinsurance recoverables, prior to 2010 | 6 | |||||||||||
Unpaid loss and LAE, net of reinsurance recoverables | [1] | 1,361.2 | ||||||||||
Reinsurance Segment | Property | Accident Year 2010 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | 601.3 | 605.3 | 613 | 609.9 | $ 606 | $ 581.2 | $ 540.4 | $ 528 | $ 527.1 | $ 615.6 | ||
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | 8.8 | |||||||||||
Paid Loss and LAE, Net of Reinsurance | 581.9 | 575.1 | 571.5 | 563.7 | 540.1 | 513.5 | 472.3 | 418.9 | 349 | $ 169.3 | ||
Reinsurance Segment | Property | Accident Year 2011 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | 1,207.7 | 1,209.6 | 1,210.9 | 1,217.1 | 1,235.2 | 1,240.7 | 1,269.4 | 1,342.3 | 1,351.2 | |||
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | 0.8 | |||||||||||
Paid Loss and LAE, Net of Reinsurance | 1,195.3 | 1,199.7 | 1,195 | 1,187.2 | 1,171 | 1,129.2 | 1,014.3 | 796.4 | $ 407.8 | |||
Reinsurance Segment | Property | Accident Year 2012 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | 460.3 | 462.5 | 469.4 | 478.1 | 495.6 | 530.3 | 579.1 | 697.2 | ||||
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | 4 | |||||||||||
Paid Loss and LAE, Net of Reinsurance | 460.1 | 451.2 | 448 | 438 | 416.7 | 377.8 | 268.9 | $ 90.3 | ||||
Reinsurance Segment | Property | Accident Year 2013 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | 398.1 | 403.6 | 406.8 | 422.1 | 444.6 | 470.6 | 501.2 | |||||
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | 2.4 | |||||||||||
Paid Loss and LAE, Net of Reinsurance | 401.4 | 399.7 | 396.7 | 389.8 | 361 | 277.4 | $ 113.1 | |||||
Reinsurance Segment | Property | Accident Year 2014 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | 425.1 | 429.8 | 435.2 | 451.3 | 464.8 | 496.4 | ||||||
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | 6 | |||||||||||
Paid Loss and LAE, Net of Reinsurance | 397.3 | 394 | 382.9 | 360 | 297.6 | $ 109.4 | ||||||
Reinsurance Segment | Property | Accident Year 2015 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | 301.9 | 306.3 | 320.6 | 332 | 368.8 | |||||||
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | 3.6 | |||||||||||
Paid Loss and LAE, Net of Reinsurance | 307.6 | 303.1 | 278.3 | 217.7 | $ 96 | |||||||
Reinsurance Segment | Property | Accident Year 2016 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | 587.9 | 596.7 | 647.2 | 684.1 | ||||||||
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | 19.2 | |||||||||||
Paid Loss and LAE, Net of Reinsurance | 535.1 | 504.8 | 429.8 | $ 210.5 | ||||||||
Reinsurance Segment | Property | Accident Year 2017 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | 1,148.3 | 1,179.5 | 1,174.6 | |||||||||
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | 30.2 | |||||||||||
Paid Loss and LAE, Net of Reinsurance | 977.9 | 818.5 | $ 324.5 | |||||||||
Reinsurance Segment | Property | Accident Year 2018 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | 1,169.4 | 1,152.7 | ||||||||||
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | 137 | |||||||||||
Paid Loss and LAE, Net of Reinsurance | 811.8 | $ 309.5 | ||||||||||
Reinsurance Segment | Property | Accident Year 2019 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | 988.7 | |||||||||||
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | 355.4 | |||||||||||
Paid Loss and LAE, Net of Reinsurance | 265.1 | |||||||||||
Reinsurance Segment | Property | Accident Year 2010 Through 2019 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | 7,288.7 | |||||||||||
Paid Loss and LAE, Net of Reinsurance | $ 5,933.5 | |||||||||||
[1] | Includes unallocated LAE, which aggregate to 1.1 percent of gross loss and LAE reserves as of December 31, 2019. Net loss and LAE reserves by component are shown in the preceding tables, and consolidated gross loss and LAE reserves is presented in the consolidated balance sheets. |
Information About Incurred an_2
Information About Incurred and Paid Loss and LAE Development - Reinsurance Segment - Casualty & Other - Longer-Tailed Lines of Business (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | ||
Claims Development [Line Items] | ||||||||||||
Unpaid loss and LAE, net of reinsurance recoverables | $ 10,344.5 | [1] | $ 10,392.9 | $ 10,221.2 | $ 9,851 | |||||||
Reinsurance Segment | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Unpaid loss and LAE, net of reinsurance recoverables | [1] | 8,416.3 | ||||||||||
Reinsurance Segment | Casualty & Other | Longer Tailed Lines of Business | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Unpaid loss and LAE, net of reinsurance recoverables, prior to 2010 | [2] | 776.5 | ||||||||||
Unpaid loss and LAE, net of reinsurance recoverables | [1],[2] | 4,577.3 | ||||||||||
Reinsurance Segment | Casualty & Other | Longer Tailed Lines of Business | Accident Year 2010 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | [2] | 951.3 | 959.7 | 962.9 | 977.6 | $ 999.3 | $ 1,015.5 | $ 1,063.5 | $ 1,090.7 | $ 1,101.9 | $ 1,098.6 | |
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | [2] | 102 | ||||||||||
Paid Loss and LAE, Net of Reinsurance | [2] | 770.2 | 735.8 | 688.9 | 644.3 | 573.9 | 438.7 | 322.3 | 208.5 | 108.4 | $ 33.8 | |
Reinsurance Segment | Casualty & Other | Longer Tailed Lines of Business | Accident Year 2011 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | [2] | 920.6 | 925.5 | 942.6 | 949.9 | 959.1 | 974.6 | 994.6 | 1,009.6 | 996 | ||
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | [2] | 116.5 | ||||||||||
Paid Loss and LAE, Net of Reinsurance | [2] | 748.2 | 709.1 | 663 | 595.1 | 501.8 | 373.4 | 206.4 | 89.4 | $ 29.6 | ||
Reinsurance Segment | Casualty & Other | Longer Tailed Lines of Business | Accident Year 2012 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | [2] | 826.4 | 832.4 | 829.8 | 833.1 | 860.8 | 875.9 | 877.5 | 877.5 | |||
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | [2] | 121.3 | ||||||||||
Paid Loss and LAE, Net of Reinsurance | [2] | 624.4 | 587 | 521.3 | 435.7 | 316.6 | 201.1 | 106.8 | $ 46.9 | |||
Reinsurance Segment | Casualty & Other | Longer Tailed Lines of Business | Accident Year 2013 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | [2] | 767.4 | 783 | 776.7 | 777.5 | 799.2 | 802.2 | 798.6 | ||||
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | [2] | 184 | ||||||||||
Paid Loss and LAE, Net of Reinsurance | [2] | 494.6 | 452.7 | 378 | 296.4 | 176.6 | 85.1 | $ 22.2 | ||||
Reinsurance Segment | Casualty & Other | Longer Tailed Lines of Business | Accident Year 2014 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | [2] | 784.8 | 790.3 | 793.9 | 794.3 | 791.1 | 801.8 | |||||
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | [2] | 205.2 | ||||||||||
Paid Loss and LAE, Net of Reinsurance | [2] | 522.7 | 444.7 | 342.9 | 229.6 | 107.5 | $ 29.8 | |||||
Reinsurance Segment | Casualty & Other | Longer Tailed Lines of Business | Accident Year 2015 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | [2] | 799.1 | 793.7 | 797 | 799 | 794.8 | ||||||
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | [2] | 226.4 | ||||||||||
Paid Loss and LAE, Net of Reinsurance | [2] | 455.8 | 325.8 | 205 | 100.4 | $ 32.2 | ||||||
Reinsurance Segment | Casualty & Other | Longer Tailed Lines of Business | Accident Year 2016 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | [2] | 807.8 | 787.4 | 776.8 | 776.7 | |||||||
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | [2] | 268 | ||||||||||
Paid Loss and LAE, Net of Reinsurance | [2] | 370 | 242.9 | 121.8 | $ 34.8 | |||||||
Reinsurance Segment | Casualty & Other | Longer Tailed Lines of Business | Accident Year 2017 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | [2] | 783.4 | 765.7 | 764.4 | ||||||||
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | [2] | 385.8 | ||||||||||
Paid Loss and LAE, Net of Reinsurance | [2] | 221.8 | 110.6 | $ 34 | ||||||||
Reinsurance Segment | Casualty & Other | Longer Tailed Lines of Business | Accident Year 2018 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | [2] | 741.6 | 727.3 | |||||||||
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | [2] | 510.4 | ||||||||||
Paid Loss and LAE, Net of Reinsurance | [2] | 104.6 | $ 33 | |||||||||
Reinsurance Segment | Casualty & Other | Longer Tailed Lines of Business | Accident Year 2019 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | [2] | 759.7 | ||||||||||
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | [2] | 672.5 | ||||||||||
Paid Loss and LAE, Net of Reinsurance | [2] | 29 | ||||||||||
Reinsurance Segment | Casualty & Other | Longer Tailed Lines of Business | Accident Year 2010 Through 2019 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | [2] | 8,142.1 | ||||||||||
Paid Loss and LAE, Net of Reinsurance | [2] | $ 4,341.3 | ||||||||||
[1] | Includes unallocated LAE, which aggregate to 1.1 percent of gross loss and LAE reserves as of December 31, 2019. Net loss and LAE reserves by component are shown in the preceding tables, and consolidated gross loss and LAE reserves is presented in the consolidated balance sheets. | |||||||||||
[2] | Represents the following reinsurance lines of business: directors’ and officers’ liability; errors and omissions liability; general liability; and medical malpractice. |
Information About Incurred an_3
Information About Incurred and Paid Loss and LAE Development - Reinsurance Segment - Casualty & Other - Shorter-Tailed Lines of Business (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | ||
Claims Development [Line Items] | ||||||||||||
Unpaid loss and LAE, net of reinsurance recoverables | $ 10,344.5 | [1] | $ 10,392.9 | $ 10,221.2 | $ 9,851 | |||||||
Reinsurance Segment | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Unpaid loss and LAE, net of reinsurance recoverables | [1] | 8,416.3 | ||||||||||
Reinsurance Segment | Casualty & Other | Shorter Tailed Lines Of Business | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Unpaid loss and LAE, net of reinsurance recoverables, prior to 2010 | [2] | 153.1 | ||||||||||
Unpaid loss and LAE, net of reinsurance recoverables | [1],[2] | 2,477.8 | ||||||||||
Reinsurance Segment | Casualty & Other | Shorter Tailed Lines Of Business | Accident Year 2010 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | [2] | 924.2 | 927.7 | 943.4 | 950.3 | $ 954 | $ 967.2 | $ 978.3 | $ 985.9 | $ 1,007 | $ 1,024.5 | |
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | [2] | 9.1 | ||||||||||
Paid Loss and LAE, Net of Reinsurance | [2] | 916 | 909.6 | 903.7 | 897.5 | 884.8 | 866.7 | 832.7 | 776.5 | 671.3 | $ 404.9 | |
Reinsurance Segment | Casualty & Other | Shorter Tailed Lines Of Business | Accident Year 2011 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | [2] | 972.9 | 976 | 959.8 | 963.7 | 973 | 992.8 | 1,007.6 | 1,023.6 | 1,031.2 | ||
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | [2] | 15.9 | ||||||||||
Paid Loss and LAE, Net of Reinsurance | [2] | 915.1 | 906.1 | 894.5 | 880.2 | 858.8 | 820.9 | 752.7 | 606.4 | $ 376.5 | ||
Reinsurance Segment | Casualty & Other | Shorter Tailed Lines Of Business | Accident Year 2012 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | [2] | 941.4 | 948.4 | 958.9 | 983.9 | 1,005.5 | 1,056.8 | 1,059.9 | 1,022.3 | |||
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | [2] | 19.8 | ||||||||||
Paid Loss and LAE, Net of Reinsurance | [2] | 871.4 | 860.2 | 846.5 | 828.3 | 792.7 | 740 | 614.5 | $ 354.8 | |||
Reinsurance Segment | Casualty & Other | Shorter Tailed Lines Of Business | Accident Year 2013 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | [2] | 780.7 | 790.3 | 804.1 | 823.4 | 838.4 | 868.8 | 850.8 | ||||
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | [2] | 28.8 | ||||||||||
Paid Loss and LAE, Net of Reinsurance | [2] | 717.5 | 704.9 | 685.5 | 663 | 613.3 | 523.5 | $ 265.4 | ||||
Reinsurance Segment | Casualty & Other | Shorter Tailed Lines Of Business | Accident Year 2014 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | [2] | 755 | 772.4 | 784.3 | 808.8 | 833 | 850.4 | |||||
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | [2] | 38.7 | ||||||||||
Paid Loss and LAE, Net of Reinsurance | [2] | 627.8 | 604.6 | 572.9 | 523.3 | 421.1 | $ 251.2 | |||||
Reinsurance Segment | Casualty & Other | Shorter Tailed Lines Of Business | Accident Year 2015 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | [2] | 776.7 | 798.4 | 784 | 768.6 | 763.4 | ||||||
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | [2] | 46.1 | ||||||||||
Paid Loss and LAE, Net of Reinsurance | [2] | 629.1 | 577.7 | 518.7 | 409.1 | $ 218.5 | ||||||
Reinsurance Segment | Casualty & Other | Shorter Tailed Lines Of Business | Accident Year 2016 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | [2] | 1,100.3 | 1,111.6 | 1,124.4 | 1,118 | |||||||
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | [2] | 80 | ||||||||||
Paid Loss and LAE, Net of Reinsurance | [2] | 921.3 | 828.7 | 685.6 | $ 367.2 | |||||||
Reinsurance Segment | Casualty & Other | Shorter Tailed Lines Of Business | Accident Year 2017 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | [2] | 1,026.9 | 1,046.3 | 1,095.9 | ||||||||
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | [2] | 169.7 | ||||||||||
Paid Loss and LAE, Net of Reinsurance | [2] | 793.5 | 639.1 | $ 342.8 | ||||||||
Reinsurance Segment | Casualty & Other | Shorter Tailed Lines Of Business | Accident Year 2018 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | [2] | 1,266.1 | 1,255.4 | |||||||||
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | [2] | 288.7 | ||||||||||
Paid Loss and LAE, Net of Reinsurance | [2] | 774.4 | $ 397.9 | |||||||||
Reinsurance Segment | Casualty & Other | Shorter Tailed Lines Of Business | Accident Year 2019 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | [2] | 1,408.6 | ||||||||||
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | [2] | 689.4 | ||||||||||
Paid Loss and LAE, Net of Reinsurance | [2] | 462 | ||||||||||
Reinsurance Segment | Casualty & Other | Shorter Tailed Lines Of Business | Accident Year 2010 Through 2019 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | [2] | 9,952.8 | ||||||||||
Paid Loss and LAE, Net of Reinsurance | [2] | $ 7,628.1 | ||||||||||
[1] | Includes unallocated LAE, which aggregate to 1.1 percent of gross loss and LAE reserves as of December 31, 2019. Net loss and LAE reserves by component are shown in the preceding tables, and consolidated gross loss and LAE reserves is presented in the consolidated balance sheets. | |||||||||||
[2] | Primarily represents the following reinsurance lines of business: ocean marine and aviation; auto liability; accident & health; mortgage reinsurance; surety; and credit. |
Information About Incurred an_4
Information About Incurred and Paid Loss and LAE Development - Insurance Segment - RSUI - Property (Detail) $ in Millions | Dec. 31, 2019USD ($)Claim | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) | Dec. 31, 2010USD ($) | ||
Claims Development [Line Items] | ||||||||||||
Unpaid loss and LAE, net of reinsurance recoverables | $ 10,344.5 | [1] | $ 10,392.9 | $ 10,221.2 | $ 9,851 | |||||||
Insurance Segment | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Unpaid loss and LAE, net of reinsurance recoverables | [1] | 1,928.2 | ||||||||||
Insurance Segment | RSUI | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Unpaid loss and LAE, net of reinsurance recoverables | [1] | 1,539.2 | ||||||||||
Insurance Segment | RSUI | Property Insurance | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Unpaid loss and LAE, net of reinsurance recoverables, prior to 2010 | 3.7 | |||||||||||
Unpaid loss and LAE, net of reinsurance recoverables | [1] | 302.3 | ||||||||||
Insurance Segment | RSUI | Property Insurance | Accident Year 2010 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | 101.7 | 101.7 | 109.6 | 109.9 | $ 109.8 | $ 104.2 | $ 105.7 | $ 101.8 | $ 101.7 | $ 110.2 | ||
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | $ 0.8 | |||||||||||
Cumulative Number of Reported Claims | Claim | [2] | 1,631 | ||||||||||
Paid Loss and LAE, Net of Reinsurance | $ 100.9 | 100.8 | 101.3 | 101.5 | 101.1 | 100.6 | 98.6 | 92.4 | 83.6 | $ 53 | ||
Insurance Segment | RSUI | Property Insurance | Accident Year 2011 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | 160.2 | 159.9 | 159.3 | 159.3 | 159 | 159.9 | 160.5 | 162 | 168.8 | |||
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | $ 1 | |||||||||||
Cumulative Number of Reported Claims | Claim | [2] | 2,207 | ||||||||||
Paid Loss and LAE, Net of Reinsurance | $ 158.8 | 158.6 | 157.6 | 157.2 | 156.1 | 154.3 | 144 | 118.4 | $ 61 | |||
Insurance Segment | RSUI | Property Insurance | Accident Year 2012 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | 228.3 | 235.5 | 236.1 | 235.1 | 256.1 | 258.6 | 262.5 | 270.9 | ||||
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | $ 1.1 | |||||||||||
Cumulative Number of Reported Claims | Claim | [2] | 2,311 | ||||||||||
Paid Loss and LAE, Net of Reinsurance | $ 219.2 | 216.7 | 216.2 | 202.4 | 193.5 | 181.9 | 157.5 | $ 62 | ||||
Insurance Segment | RSUI | Property Insurance | Accident Year 2013 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | 154.3 | 152.5 | 152.4 | 152.1 | 150.4 | 157.2 | 157.3 | |||||
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | $ 1.6 | |||||||||||
Cumulative Number of Reported Claims | Claim | [2] | 2,394 | ||||||||||
Paid Loss and LAE, Net of Reinsurance | $ 151.5 | 148.7 | 144 | 141.1 | 134 | 118.7 | $ 72.7 | |||||
Insurance Segment | RSUI | Property Insurance | Accident Year 2014 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | 153.6 | 153.8 | 153.7 | 155.9 | 166.2 | 170.7 | ||||||
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | $ 1.9 | |||||||||||
Cumulative Number of Reported Claims | Claim | [2] | 3,091 | ||||||||||
Paid Loss and LAE, Net of Reinsurance | $ 151.3 | 150.3 | 148.8 | 145 | 133.8 | $ 93.2 | ||||||
Insurance Segment | RSUI | Property Insurance | Accident Year 2015 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | 140.1 | 141.3 | 142.6 | 136.1 | 140.5 | |||||||
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | $ 2.6 | |||||||||||
Cumulative Number of Reported Claims | Claim | [2] | 3,004 | ||||||||||
Paid Loss and LAE, Net of Reinsurance | $ 136.5 | 129.8 | 120 | 106.9 | $ 70.8 | |||||||
Insurance Segment | RSUI | Property Insurance | Accident Year 2016 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | 173.9 | 172.9 | 170.5 | 181.4 | ||||||||
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | $ 3.3 | |||||||||||
Cumulative Number of Reported Claims | Claim | [2] | 3,365 | ||||||||||
Paid Loss and LAE, Net of Reinsurance | $ 161.2 | 147.1 | 127.1 | $ 72 | ||||||||
Insurance Segment | RSUI | Property Insurance | Accident Year 2017 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | 304.1 | 306.5 | 330.7 | |||||||||
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | $ 23.1 | |||||||||||
Cumulative Number of Reported Claims | Claim | [2] | 3,668 | ||||||||||
Paid Loss and LAE, Net of Reinsurance | $ 253.3 | 213.3 | $ 88.6 | |||||||||
Insurance Segment | RSUI | Property Insurance | Accident Year 2018 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | 265.7 | 259.9 | ||||||||||
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | $ 42.9 | |||||||||||
Cumulative Number of Reported Claims | Claim | [2] | 2,992 | ||||||||||
Paid Loss and LAE, Net of Reinsurance | $ 175.1 | $ 62.3 | ||||||||||
Insurance Segment | RSUI | Property Insurance | Accident Year 2019 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | 204.3 | |||||||||||
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | $ 57.2 | |||||||||||
Cumulative Number of Reported Claims | Claim | [2] | 2,888 | ||||||||||
Paid Loss and LAE, Net of Reinsurance | $ 79.8 | |||||||||||
Insurance Segment | RSUI | Property Insurance | Accident Year 2010 Through 2019 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | 1,886.2 | |||||||||||
Paid Loss and LAE, Net of Reinsurance | $ 1,587.6 | |||||||||||
[1] | Includes unallocated LAE, which aggregate to 1.1 percent of gross loss and LAE reserves as of December 31, 2019. Net loss and LAE reserves by component are shown in the preceding tables, and consolidated gross loss and LAE reserves is presented in the consolidated balance sheets. | |||||||||||
[2] | Represents claims reported by insured claimants. |
Information About Incurred an_5
Information About Incurred and Paid Loss and LAE Development - Insurance Segment - RSUI - Casualty (Detail) $ in Millions | Dec. 31, 2019USD ($)Claim | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) | Dec. 31, 2010USD ($) | ||
Claims Development [Line Items] | ||||||||||||
Unpaid loss and LAE, net of reinsurance recoverables | $ 10,344.5 | [1] | $ 10,392.9 | $ 10,221.2 | $ 9,851 | |||||||
Insurance Segment | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Unpaid loss and LAE, net of reinsurance recoverables | [1] | 1,928.2 | ||||||||||
Insurance Segment | RSUI | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Unpaid loss and LAE, net of reinsurance recoverables | [1] | 1,539.2 | ||||||||||
Insurance Segment | RSUI | Casualty Insurance | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Unpaid loss and LAE, net of reinsurance recoverables, prior to 2010 | 64.4 | |||||||||||
Unpaid loss and LAE, net of reinsurance recoverables | [1] | 1,236.9 | ||||||||||
Insurance Segment | RSUI | Casualty Insurance | Accident Year 2010 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | 166.7 | 168 | 171 | 177 | $ 178.6 | $ 194.6 | $ 203.4 | $ 204.1 | $ 204.1 | $ 204.1 | ||
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | $ 7.5 | |||||||||||
Cumulative Number of Reported Claims | Claim | [2] | 6,986 | ||||||||||
Paid Loss and LAE, Net of Reinsurance | $ 158.1 | 152.3 | 149.2 | 132.9 | 128.6 | 122.6 | 90.1 | 70.1 | 30.9 | $ 4.7 | ||
Insurance Segment | RSUI | Casualty Insurance | Accident Year 2011 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | 184.9 | 189.7 | 202 | 206.8 | 211.6 | 212.1 | 208.3 | 205.9 | 205.9 | |||
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | $ 13.3 | |||||||||||
Cumulative Number of Reported Claims | Claim | [2] | 7,551 | ||||||||||
Paid Loss and LAE, Net of Reinsurance | $ 156.4 | 153.6 | 150 | 138.5 | 118.4 | 100.3 | 66.7 | 31.9 | $ 6.5 | |||
Insurance Segment | RSUI | Casualty Insurance | Accident Year 2012 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | 221.8 | 231.9 | 233.8 | 238.9 | 242.8 | 230.3 | 226.3 | 226.3 | ||||
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | $ 31.9 | |||||||||||
Cumulative Number of Reported Claims | Claim | [2] | 7,681 | ||||||||||
Paid Loss and LAE, Net of Reinsurance | $ 176.1 | 166.7 | 159.3 | 144 | 125.5 | 96 | 38.4 | $ 6.8 | ||||
Insurance Segment | RSUI | Casualty Insurance | Accident Year 2013 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | 269.6 | 273.5 | 279 | 280.1 | 277.6 | 264.8 | 264.8 | |||||
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | $ 44.4 | |||||||||||
Cumulative Number of Reported Claims | Claim | [2] | 8,731 | ||||||||||
Paid Loss and LAE, Net of Reinsurance | $ 203.9 | 191.3 | 176.6 | 146.2 | 103.4 | 50 | $ 10.1 | |||||
Insurance Segment | RSUI | Casualty Insurance | Accident Year 2014 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | 310.9 | 320.3 | 322.4 | 321.1 | 322.7 | 292 | ||||||
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | $ 56.8 | |||||||||||
Cumulative Number of Reported Claims | Claim | [2] | 10,242 | ||||||||||
Paid Loss and LAE, Net of Reinsurance | $ 234.6 | 206.5 | 179.1 | 130.1 | 69.5 | $ 13 | ||||||
Insurance Segment | RSUI | Casualty Insurance | Accident Year 2015 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | 291.4 | 302.2 | 304.2 | 300.2 | 300.2 | |||||||
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | $ 83.6 | |||||||||||
Cumulative Number of Reported Claims | Claim | [2] | 9,375 | ||||||||||
Paid Loss and LAE, Net of Reinsurance | $ 176.5 | 129.2 | 96.6 | 47.3 | $ 9 | |||||||
Insurance Segment | RSUI | Casualty Insurance | Accident Year 2016 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | 312 | 301.3 | 293.7 | 290.7 | ||||||||
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | $ 83 | |||||||||||
Cumulative Number of Reported Claims | Claim | [2] | 8,917 | ||||||||||
Paid Loss and LAE, Net of Reinsurance | $ 197.8 | 123.6 | 69.2 | $ 13.7 | ||||||||
Insurance Segment | RSUI | Casualty Insurance | Accident Year 2017 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | 299.1 | 286.4 | 282.5 | |||||||||
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | $ 121.6 | |||||||||||
Cumulative Number of Reported Claims | Claim | [2] | 8,716 | ||||||||||
Paid Loss and LAE, Net of Reinsurance | $ 115.6 | 63.6 | $ 9.4 | |||||||||
Insurance Segment | RSUI | Casualty Insurance | Accident Year 2018 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | 301.5 | 290 | ||||||||||
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | $ 185.6 | |||||||||||
Cumulative Number of Reported Claims | Claim | [2] | 8,730 | ||||||||||
Paid Loss and LAE, Net of Reinsurance | $ 70.4 | $ 13 | ||||||||||
Insurance Segment | RSUI | Casualty Insurance | Accident Year 2019 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | 316.9 | |||||||||||
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | $ 267.7 | |||||||||||
Cumulative Number of Reported Claims | Claim | [2] | 7,267 | ||||||||||
Paid Loss and LAE, Net of Reinsurance | $ 12.9 | |||||||||||
Insurance Segment | RSUI | Casualty Insurance | Accident Year 2010 Through 2019 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | 2,674.8 | |||||||||||
Paid Loss and LAE, Net of Reinsurance | $ 1,502.3 | |||||||||||
[1] | Includes unallocated LAE, which aggregate to 1.1 percent of gross loss and LAE reserves as of December 31, 2019. Net loss and LAE reserves by component are shown in the preceding tables, and consolidated gross loss and LAE reserves is presented in the consolidated balance sheets. | |||||||||||
[2] | Represents claims reported by insured claimants. |
Information About Incurred an_6
Information About Incurred and Paid Loss and LAE Development - Insurance Segment - CapSpecialty (Detail) $ in Millions | Dec. 31, 2019USD ($)Claim | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) | Dec. 31, 2010USD ($) | ||
Claims Development [Line Items] | ||||||||||||
Unpaid loss and LAE, net of reinsurance recoverables | $ 10,344.5 | [1] | $ 10,392.9 | $ 10,221.2 | $ 9,851 | |||||||
Insurance Segment | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Unpaid loss and LAE, net of reinsurance recoverables | [1] | 1,928.2 | ||||||||||
Insurance Segment | CapSpecialty Incorporated | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Unpaid loss and LAE, net of reinsurance recoverables, prior to 2010 | [2] | 7.7 | ||||||||||
Unpaid loss and LAE, net of reinsurance recoverables | [1],[2] | 389 | ||||||||||
Insurance Segment | CapSpecialty Incorporated | Accident Year 2010 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | [2] | 129.6 | 127.2 | 127.7 | 129.5 | $ 129.8 | $ 134.5 | $ 134.8 | $ 117.9 | $ 110.8 | $ 93.2 | |
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | [2] | $ 3.8 | ||||||||||
Cumulative Number of Reported Claims | Claim | [2],[3] | 8,212 | ||||||||||
Paid Loss and LAE, Net of Reinsurance | [2] | $ 124.7 | 124.4 | 123.9 | 121.6 | 119.2 | 111 | 98.1 | 78.4 | 56.2 | $ 22 | |
Insurance Segment | CapSpecialty Incorporated | Accident Year 2011 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | [2] | 77.6 | 77.7 | 78.2 | 78.4 | 79.4 | 76.9 | 74.4 | 71.2 | 74 | ||
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | [2] | $ 0.5 | ||||||||||
Cumulative Number of Reported Claims | Claim | [2],[3] | 5,695 | ||||||||||
Paid Loss and LAE, Net of Reinsurance | [2] | $ 76 | 75.7 | 73.8 | 69.8 | 67.3 | 57.7 | 44.7 | 31.9 | $ 16.3 | ||
Insurance Segment | CapSpecialty Incorporated | Accident Year 2012 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | [2] | 69.1 | 68.8 | 68.7 | 69.7 | 69.3 | 66.2 | 71.8 | 72.7 | |||
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | [2] | $ 0.4 | ||||||||||
Cumulative Number of Reported Claims | Claim | [2],[3] | 5,265 | ||||||||||
Paid Loss and LAE, Net of Reinsurance | [2] | $ 67.7 | 66.5 | 65 | 63.3 | 57.2 | 46.9 | 38.6 | $ 18.6 | |||
Insurance Segment | CapSpecialty Incorporated | Accident Year 2013 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | [2] | 87.4 | 88.6 | 87.2 | 84.4 | 85.2 | 81.4 | 78.7 | ||||
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | [2] | $ 1.1 | ||||||||||
Cumulative Number of Reported Claims | Claim | [2],[3] | 5,166 | ||||||||||
Paid Loss and LAE, Net of Reinsurance | [2] | $ 85.3 | 84.5 | 78.6 | 69.6 | 62 | 48 | $ 23.4 | ||||
Insurance Segment | CapSpecialty Incorporated | Accident Year 2014 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | [2] | 97.6 | 98.6 | 100.2 | 101 | 102.7 | 102.8 | |||||
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | [2] | $ 2.4 | ||||||||||
Cumulative Number of Reported Claims | Claim | [2],[3] | 5,952 | ||||||||||
Paid Loss and LAE, Net of Reinsurance | [2] | $ 93.1 | 89.8 | 83.1 | 71.9 | 56.3 | $ 34 | |||||
Insurance Segment | CapSpecialty Incorporated | Accident Year 2015 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | [2] | 112.4 | 109.7 | 109.2 | 111.8 | 111 | ||||||
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | [2] | $ 4.2 | ||||||||||
Cumulative Number of Reported Claims | Claim | [2],[3] | 5,551 | ||||||||||
Paid Loss and LAE, Net of Reinsurance | [2] | $ 101.1 | 88.8 | 73.5 | 57.4 | $ 30.9 | ||||||
Insurance Segment | CapSpecialty Incorporated | Accident Year 2016 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | [2] | 135 | 132.7 | 132.4 | 129.4 | |||||||
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | [2] | $ 14.5 | ||||||||||
Cumulative Number of Reported Claims | Claim | [2],[3] | 6,131 | ||||||||||
Paid Loss and LAE, Net of Reinsurance | [2] | $ 106.1 | 86.6 | 64 | $ 30.3 | |||||||
Insurance Segment | CapSpecialty Incorporated | Accident Year 2017 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | [2] | 157.6 | 143.7 | 147.3 | ||||||||
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | [2] | $ 31.5 | ||||||||||
Cumulative Number of Reported Claims | Claim | [2],[3] | 6,318 | ||||||||||
Paid Loss and LAE, Net of Reinsurance | [2] | $ 95.1 | 65.6 | $ 30.1 | ||||||||
Insurance Segment | CapSpecialty Incorporated | Accident Year 2018 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | [2] | 173.3 | 164.1 | |||||||||
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | [2] | $ 66.9 | ||||||||||
Cumulative Number of Reported Claims | Claim | [2],[3] | 6,319 | ||||||||||
Paid Loss and LAE, Net of Reinsurance | [2] | $ 72.4 | $ 31.7 | |||||||||
Insurance Segment | CapSpecialty Incorporated | Accident Year 2019 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | [2] | 193 | ||||||||||
Incurred But Not Reported Loss and Loss Adjustment Expense Reserves | [2] | $ 134.1 | ||||||||||
Cumulative Number of Reported Claims | Claim | [2],[3] | 4,955 | ||||||||||
Paid Loss and LAE, Net of Reinsurance | [2] | $ 29.8 | ||||||||||
Insurance Segment | CapSpecialty Incorporated | Accident Year 2010 Through 2019 | ||||||||||||
Claims Development [Line Items] | ||||||||||||
Incurred Loss and LAE, net of reinsurance | [2] | 1,232.6 | ||||||||||
Paid Loss and LAE, Net of Reinsurance | [2] | $ 851.3 | ||||||||||
[1] | Includes unallocated LAE, which aggregate to 1.1 percent of gross loss and LAE reserves as of December 31, 2019. Net loss and LAE reserves by component are shown in the preceding tables, and consolidated gross loss and LAE reserves is presented in the consolidated balance sheets. | |||||||||||
[2] | The vast majority of the CapSpecialty’s loss and LAE reserves relate to its casualty lines of business. | |||||||||||
[3] | Represents claims reported by insured claimants. |
Loss and LAE Reserve Summary an
Loss and LAE Reserve Summary and Reconciliation to Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||
Gross Loss and LAE Reserves | $ 11,928,359 | [1] | $ 12,250,294 | $ 11,871,300 | $ 11,087,200 | |
Reinsurance Recoverables on Unpaid Losses | [2] | 1,583,900 | [1] | 1,857,400 | 1,650,100 | 1,236,200 |
Net Loss and LAE Reserves | 10,344,500 | [1] | $ 10,392,900 | $ 10,221,200 | $ 9,851,000 | |
Eliminations | ||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||
Gross Loss and LAE Reserves | [1] | (65,700) | ||||
Reinsurance Recoverables on Unpaid Losses | [1] | (65,700) | ||||
Reinsurance Segment | ||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||
Gross Loss and LAE Reserves | [1] | 9,323,800 | ||||
Reinsurance Recoverables on Unpaid Losses | [1] | 907,500 | ||||
Net Loss and LAE Reserves | [1] | 8,416,300 | ||||
Reinsurance Segment | Property | ||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||
Gross Loss and LAE Reserves | [1] | 1,965,500 | ||||
Reinsurance Recoverables on Unpaid Losses | [1] | 604,300 | ||||
Net Loss and LAE Reserves | [1] | 1,361,200 | ||||
Reinsurance Segment | Casualty & Other | Longer Tailed Lines of Business | ||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||
Gross Loss and LAE Reserves | [1] | 4,691,700 | ||||
Reinsurance Recoverables on Unpaid Losses | [1] | 114,400 | ||||
Net Loss and LAE Reserves | [1],[3] | 4,577,300 | ||||
Reinsurance Segment | Casualty & Other | Shorter Tailed Lines Of Business | ||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||
Gross Loss and LAE Reserves | [1] | 2,666,600 | ||||
Reinsurance Recoverables on Unpaid Losses | [1] | 188,800 | ||||
Net Loss and LAE Reserves | [1],[4] | 2,477,800 | ||||
Insurance Segment | ||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||
Gross Loss and LAE Reserves | [1] | 2,670,300 | ||||
Reinsurance Recoverables on Unpaid Losses | [1] | 742,100 | ||||
Net Loss and LAE Reserves | [1] | 1,928,200 | ||||
Insurance Segment | RSUI | ||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||
Gross Loss and LAE Reserves | [1] | 2,245,600 | ||||
Reinsurance Recoverables on Unpaid Losses | [1] | 706,400 | ||||
Net Loss and LAE Reserves | [1] | 1,539,200 | ||||
Insurance Segment | RSUI | Property Insurance | ||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||
Gross Loss and LAE Reserves | [1] | 444,600 | ||||
Reinsurance Recoverables on Unpaid Losses | [1] | 142,300 | ||||
Net Loss and LAE Reserves | [1] | 302,300 | ||||
Insurance Segment | RSUI | Casualty Insurance | ||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||
Gross Loss and LAE Reserves | [1] | 1,801,000 | ||||
Reinsurance Recoverables on Unpaid Losses | [1] | 564,100 | ||||
Net Loss and LAE Reserves | [1] | 1,236,900 | ||||
Insurance Segment | CapSpecialty Incorporated | ||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||
Gross Loss and LAE Reserves | [1] | 424,700 | ||||
Reinsurance Recoverables on Unpaid Losses | [1] | 35,700 | ||||
Net Loss and LAE Reserves | [1],[5] | $ 389,000 | ||||
[1] | Includes unallocated LAE, which aggregate to 1.1 percent of gross loss and LAE reserves as of December 31, 2019. Net loss and LAE reserves by component are shown in the preceding tables, and consolidated gross loss and LAE reserves is presented in the consolidated balance sheets. | |||||
[2] | Reinsurance recoverables in this table include only ceded loss and LAE reserves. | |||||
[3] | Represents the following reinsurance lines of business: directors’ and officers’ liability; errors and omissions liability; general liability; and medical malpractice. | |||||
[4] | Primarily represents the following reinsurance lines of business: ocean marine and aviation; auto liability; accident & health; mortgage reinsurance; surety; and credit. | |||||
[5] | The vast majority of the CapSpecialty’s loss and LAE reserves relate to its casualty lines of business. |
Loss and LAE Reserve Summary _2
Loss and LAE Reserve Summary and Reconciliation to Consolidated Balance Sheet (Parenthetical) (Detail) | Dec. 31, 2019 |
Policyholders Account In Life Insurance Business [Abstract] | |
Unallocated LAE as a percentage of gross loss and LAE reserves | 1.10% |
Average Historical Loss and LAE
Average Historical Loss and LAE Duration, Net of Reinsurance (Detail) | Dec. 31, 2019 |
Reinsurance Segment | Property | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year One | 28.50% |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year Two | 38.90% |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year Three | 17.00% |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year Four | 7.50% |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year Five | 3.50% |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year Six | 1.90% |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year Seven | 1.40% |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year Eight | 1.20% |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year Nine | 0.10% |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year Ten | 1.10% |
Reinsurance Segment | Casualty & Other | Longer Tailed Lines of Business | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year One | 4.00% |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year Two | 8.70% |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year Three | 13.00% |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year Four | 15.00% |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year Five | 13.40% |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year Six | 10.90% |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year Seven | 7.00% |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year Eight | 4.70% |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year Nine | 4.60% |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year Ten | 3.60% |
Reinsurance Segment | Casualty & Other | Shorter Tailed Lines Of Business | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year One | 34.70% |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year Two | 27.50% |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year Three | 13.40% |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year Four | 6.80% |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year Five | 4.20% |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year Six | 2.30% |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year Seven | 1.50% |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year Eight | 1.00% |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year Nine | 0.80% |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year Ten | 0.70% |
Insurance Segment | RSUI | Property Insurance | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year One | 40.80% |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year Two | 33.70% |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year Three | 10.80% |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year Four | 5.70% |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year Five | 2.40% |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year Six | 2.20% |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year Seven | 0.70% |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year Eight | 0.50% |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year Nine | 0.20% |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year Ten | 0.10% |
Insurance Segment | RSUI | Casualty Insurance | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year One | 3.60% |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year Two | 16.00% |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year Three | 19.60% |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year Four | 15.40% |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year Five | 12.10% |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year Six | 7.00% |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year Seven | 4.10% |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year Eight | 5.30% |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year Nine | 1.70% |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year Ten | 3.50% |
Insurance Segment | CapSpecialty Incorporated | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year One | 21.70% |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year Two | 24.40% |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year Three | 16.30% |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year Four | 13.60% |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year Five | 9.90% |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year Six | 4.70% |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year Seven | 2.40% |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year Eight | 1.90% |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year Nine | 0.40% |
Average Annual Percentage Payout of Loss and LAE Incurred, Net of Reinsurance Year Ten | 0.20% |
Credit Agreements - Additional
Credit Agreements - Additional Information (Detail) - Alleghany Corporation - USD ($) | Jul. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jul. 30, 2017 |
Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Revolving credit facility, initiation date | Jul. 31, 2017 | ||||
Line of credit facility, term | 5 years | ||||
Revolving credit facility, maximum borrowing capacity | $ 300,000,000 | ||||
Revolving credit facility expiration date | Jul. 31, 2022 | ||||
Borrowings | $ 0 | $ 0 | $ 0 | ||
Credit facility borrowings outstanding | $ 0 | ||||
Prior Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Revolving credit facility, maximum borrowing capacity | $ 200,000,000 | ||||
Revolving credit facility expiration date | Jul. 31, 2017 | ||||
Borrowings | $ 0 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) $ in Thousands | Jan. 15, 2020 | Sep. 09, 2014 | Jun. 26, 2012 | Sep. 20, 2010 | Nov. 23, 2009 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||||||||
Interest paid | $ 97,016 | $ 88,345 | $ 83,171 | |||||
Senior Notes and other debt | 1,751,113 | 1,669,039 | ||||||
Operating Segments | Alleghany Capital Corporation Segment | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior Notes and other debt | $ 367,100 | $ 284,500 | ||||||
Alleghany Corporation | 2044 Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior notes, face value | $ 300,000 | |||||||
Senior notes, maturity date | Sep. 15, 2044 | |||||||
Senior notes, frequency of interest payment | Interest on the 2044 Senior Notes is payable semi-annually on March 15 and September 15 of each year. | |||||||
Senior notes, interest rate | 4.90% | |||||||
Senior notes, issuance rate | 99.30% | |||||||
Proceeds from issuance of Senior notes | $ 294,300 | |||||||
Senior notes, effective yield | 5.00% | |||||||
Alleghany Corporation | 2022 Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior notes, face value | $ 400,000 | |||||||
Senior notes, maturity date | Jun. 27, 2022 | |||||||
Senior notes, frequency of interest payment | Interest on the 2022 Senior Notes is payable semi-annually on June 27 and December 27 of each year. | |||||||
Senior notes, interest rate | 4.95% | |||||||
Senior notes, issuance rate | 99.90% | |||||||
Proceeds from issuance of Senior notes | $ 396,000 | |||||||
Senior notes, effective yield | 5.05% | |||||||
Alleghany Corporation | 2020 Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior notes, face value | $ 300,000 | |||||||
Senior notes, maturity date | Sep. 15, 2020 | |||||||
Senior notes, frequency of interest payment | Interest on the 2020 Senior Notes is payable semi-annually on March 15 and September 15 of each year. | |||||||
Senior notes, interest rate | 5.625% | |||||||
Senior notes, issuance rate | 99.60% | |||||||
Proceeds from issuance of Senior notes | $ 298,900 | |||||||
Senior notes, effective yield | 5.67% | |||||||
Transatlantic Holdings Incorporated | 2039 Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior notes, face value | $ 350,000 | |||||||
Senior notes, maturity date | Nov. 30, 2039 | |||||||
Senior notes, frequency of interest payment | semi-annually | |||||||
Senior notes, interest rate | 8.00% | |||||||
Jazwares, LLC | Operating Segments | Alleghany Capital Corporation Segment | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior Notes and other debt | $ 177,700 | |||||||
Kentucky Trailer | Operating Segments | Alleghany Capital Corporation Segment | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior Notes and other debt | 59,500 | |||||||
WWSC Holdings, LLC | Operating Segments | Alleghany Capital Corporation Segment | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior Notes and other debt | 57,300 | |||||||
Integrated Project Services LLC | Operating Segments | Alleghany Capital Corporation Segment | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior Notes and other debt | 40,200 | |||||||
Precision Cutting Technologies, Inc | Operating Segments | Alleghany Capital Corporation Segment | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior Notes and other debt | 32,400 | |||||||
Concord | Operating Segments | Alleghany Capital Corporation Segment | Floating Rate Debt Funded by Alleghany Corporation | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior Notes and other debt | $ 33,300 | |||||||
Subsequent Event | Alleghany Corporation | 2020 Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Cost of senior note redemption | $ 312,700 | |||||||
Aggregate principal amount redeemed | 300,000 | |||||||
Redemption premium | 7,100 | |||||||
Interest paid | 5,600 | |||||||
Loss on early extinguishment of debt | $ (7,100) |
Income Tax Expense (Benefit) (D
Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Provision of Income Taxes [Line Items] | |||
Current | $ 170,700 | $ (45,700) | $ 2,400 |
Deferred | 62,700 | 30,700 | (66,200) |
Income taxes | 233,435 | (15,062) | (63,802) |
Federal | |||
Reconciliation of Provision of Income Taxes [Line Items] | |||
Current | 87,900 | (83,300) | (41,300) |
Deferred | 62,900 | 29,900 | (66,600) |
Income taxes | 150,800 | (53,400) | (107,900) |
State | |||
Reconciliation of Provision of Income Taxes [Line Items] | |||
Current | 12,000 | 5,600 | 2,700 |
Deferred | 500 | 900 | 600 |
Income taxes | 12,500 | 6,500 | 3,300 |
Foreign | |||
Reconciliation of Provision of Income Taxes [Line Items] | |||
Current | 70,800 | 32,000 | 41,000 |
Deferred | (700) | (100) | (200) |
Income taxes | $ 70,100 | $ 31,900 | $ 40,800 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Earnings (losses) before Income Taxes, Domestic | $ 952.4 | $ (46.4) | $ (132.7) |
Earnings (losses) before Income Taxes, Foreign | $ 171.2 | $ 86 | $ 169.4 |
Statutory federal income tax rate | 21.00% | 21.00% | 35.00% |
Foreign tax credit carryforwards expiration beginning year | 2028 | ||
State net operating loss carry forward | $ 22.8 | $ 23.5 | |
Valuation allowance | 22.8 | $ 23.5 | |
Interest or penalties accrued for uncertain tax positions | $ 0 |
Difference between Federal Inco
Difference between Federal Income Tax Rate and Effective Income Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Federal income tax rate | 21.00% | 21.00% | 35.00% |
Foreign tax credits | 0.40% | (0.30%) | (6.40%) |
Income subject to dividends-received deduction | (0.30%) | (18.30%) | (25.50%) |
Tax-exempt interest | (1.00%) | (36.00%) | (94.10%) |
State taxes, net of federal tax benefit | 0.90% | 13.80% | 6.50% |
Prior period adjustment | 0.20% | (0.10%) | (3.30%) |
Tax benefit from sale of subsidiary | (54.10%) | ||
Other, net | (0.40%) | (18.10%) | (32.00%) |
Effective tax rate | 20.80% | (38.00%) | (173.90%) |
Tax Effects of Temporary Differ
Tax Effects of Temporary Differences that Give Rise to Significant Portions of Deferred Tax Assets and Deferred Tax Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Loss and LAE reserves | $ 118,900 | $ 122,900 |
Minimum tax credit carry forward | 68,800 | |
Compensation accruals | 94,100 | 88,100 |
Unearned premiums | 97,400 | 85,900 |
OTTI losses | 6,500 | 5,400 |
State net operating loss carry forward | 22,800 | 23,500 |
Other | 134,900 | 89,800 |
Gross deferred tax assets before valuation allowance | 474,600 | 484,400 |
Valuation allowance | (22,800) | (23,500) |
Gross deferred tax assets | 451,800 | 460,900 |
Deferred tax liabilities: | ||
Net unrealized gains on investments | 274,800 | 127,200 |
Deferred acquisition costs | 113,400 | 101,100 |
Purchase accounting adjustments | 11,700 | 11,300 |
Other | 46,000 | 56,400 |
Gross deferred tax liabilities | 445,900 | 296,000 |
Net deferred tax assets | $ 5,860 | $ 164,890 |
Tax Year Returns that Remain Su
Tax Year Returns that Remain Subject to Examination by Major Tax Jurisdiction (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Australia | Earliest Tax Year | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2015 |
Australia | Latest Tax Year | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2019 |
Canada | Earliest Tax Year | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2015 |
Canada | Latest Tax Year | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2019 |
France | Earliest Tax Year | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2017 |
France | Latest Tax Year | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2019 |
GERMANY | Earliest Tax Year | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2013 |
GERMANY | Latest Tax Year | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2019 |
HONG KONG | Earliest Tax Year | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2013 |
HONG KONG | Latest Tax Year | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2019 |
Japan | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2019 |
SINGAPORE | Earliest Tax Year | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2016 |
SINGAPORE | Latest Tax Year | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2019 |
SWITZERLAND | Earliest Tax Year | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2017 |
SWITZERLAND | Latest Tax Year | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2019 |
U.K. | Earliest Tax Year | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2017 |
U.K. | Latest Tax Year | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2019 |
U.S. | Earliest Tax Year | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2015 |
U.S. | Latest Tax Year | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2019 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | Mar. 15, 2018 | Feb. 29, 2020 | Feb. 28, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2016 | Nov. 30, 2015 |
Stockholders Equity Note [Line Items] | ||||||||||
Remaining authorized repurchases under share repurchase program | $ 627,100,000 | |||||||||
Amount of equity unavailable for dividends or advances from subsidiaries | 6,900,000,000 | |||||||||
Stockholders' equity attributable to Alleghany stockholders | 8,776,734,000 | $ 7,692,710,000 | $ 8,514,063,000 | $ 7,939,945,000 | ||||||
Amount available for dividends or advances, parent level | $ 1,900,000,000 | |||||||||
Dividends paid | $ 154,000,000 | 153,967,000 | ||||||||
Dividend Declared in 2018 | ||||||||||
Stockholders Equity Note [Line Items] | ||||||||||
Special dividend declared per share | $ 10 | |||||||||
Dividend record date | Mar. 5, 2018 | |||||||||
Dividend payable nature | special | |||||||||
Dividend Declared in 2020 | ||||||||||
Stockholders Equity Note [Line Items] | ||||||||||
Dividend payable nature | special | |||||||||
Dividend Declared in 2020 | Subsequent Event | ||||||||||
Stockholders Equity Note [Line Items] | ||||||||||
Special dividend declared per share | $ 15 | |||||||||
Dividend record date | Mar. 5, 2020 | |||||||||
Dividend payable date | Mar. 16, 2020 | |||||||||
Operating Segments | ||||||||||
Stockholders Equity Note [Line Items] | ||||||||||
Stockholders' equity attributable to Alleghany stockholders | $ 9,317,200,000 | |||||||||
Operating Segments | Reinsurance Segment and Insurance Segment | ||||||||||
Stockholders Equity Note [Line Items] | ||||||||||
Stockholders' equity attributable to Alleghany stockholders | 8,416,300,000 | |||||||||
Statutory net income of insurance operating units | 690,900,000 | 263,600,000 | ||||||||
Combined statutory capital and surplus of insurance operating unit | 7,000,000,000 | 6,500,000,000 | ||||||||
Transatlantic Reinsurance Company | ||||||||||
Stockholders Equity Note [Line Items] | ||||||||||
Dividends paid | 220,000,000 | $ 280,000,000 | $ 270,000,000 | |||||||
Transatlantic Reinsurance Company | Maximum | ||||||||||
Stockholders Equity Note [Line Items] | ||||||||||
Amount of dividend that can be declared without regulatory approval | $ 41,500,000 | |||||||||
Stock Repurchase Programs 2015 | ||||||||||
Stockholders Equity Note [Line Items] | ||||||||||
Aggregate amount of common stock authorized for repurchase | $ 400,000,000 | |||||||||
Stock Repurchase Programs 2018 | ||||||||||
Stockholders Equity Note [Line Items] | ||||||||||
Aggregate amount of common stock authorized for repurchase | $ 400,000,000 | |||||||||
Stock Repurchase Programs 2019 | ||||||||||
Stockholders Equity Note [Line Items] | ||||||||||
Aggregate amount of common stock authorized for repurchase | $ 500,000,000 |
Schedule of Common Stock Repurc
Schedule of Common Stock Repurchases (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stockholders Equity Note [Abstract] | |||
Shares repurchased | 215,091 | 822,849 | 29,704 |
Cost of shares repurchased (in millions) | $ 144,422 | $ 491,633 | $ 16,048 |
Average price per share repurchased | $ 671.44 | $ 597.48 | $ 540.25 |
Reconciliation of Accumulated O
Reconciliation of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning Balance | $ 7,692,710 | $ 8,514,063 | ||||
Other comprehensive income (loss), net of tax: | ||||||
Ending Balance | 8,776,734 | 7,692,710 | ||||
Unrealized Appreciation of Investments | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning Balance | (61,600) | 718,200 | ||||
Cumulative effect of adoption of new accounting pronouncements | [1] | $ (579,000) | ||||
Other comprehensive income (loss), net of tax: | ||||||
Other comprehensive income (loss) before reclassifications | 403,000 | (212,500) | ||||
Reclassifications from accumulated other comprehensive income | (20,400) | 11,700 | ||||
Total | 382,600 | (200,800) | ||||
Ending Balance | 321,000 | (61,600) | ||||
Unrealized Appreciation of Investments | Accounting Standards Update 2016-01 | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Cumulative effect of adoption of new accounting pronouncements | [1] | (735,600) | ||||
Unrealized Appreciation of Investments | Accounting Standards Update 2018-02 | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Cumulative effect of adoption of new accounting pronouncements | [1] | 156,600 | ||||
Unrealized Currency Translation Adjustment | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning Balance | (124,700) | (84,600) | ||||
Cumulative effect of adoption of new accounting pronouncements | [1] | (18,200) | ||||
Other comprehensive income (loss), net of tax: | ||||||
Other comprehensive income (loss) before reclassifications | 2,900 | (21,900) | ||||
Total | 2,900 | (21,900) | ||||
Ending Balance | (121,800) | (124,700) | ||||
Unrealized Currency Translation Adjustment | Accounting Standards Update 2018-02 | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Cumulative effect of adoption of new accounting pronouncements | [1] | (18,200) | ||||
Retirement Plans | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning Balance | (15,700) | (15,500) | ||||
Cumulative effect of adoption of new accounting pronouncements | [1] | (3,300) | ||||
Other comprehensive income (loss), net of tax: | ||||||
Other comprehensive income (loss) before reclassifications | (12,200) | 3,100 | ||||
Total | (12,200) | 3,100 | ||||
Ending Balance | (27,900) | (15,700) | ||||
Retirement Plans | Accounting Standards Update 2018-02 | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Cumulative effect of adoption of new accounting pronouncements | [1] | (3,300) | ||||
Accumulated Other Comprehensive Income (loss) | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning Balance | (202,003) | 618,118 | ||||
Cumulative effect of adoption of new accounting pronouncements | (600,508) | [1] | $ 12,899 | |||
Other comprehensive income (loss), net of tax: | ||||||
Other comprehensive income (loss) before reclassifications | 393,700 | (231,300) | ||||
Reclassifications from accumulated other comprehensive income | (20,400) | 11,700 | ||||
Total | 373,300 | (219,600) | ||||
Ending Balance | $ 171,350 | $ (202,003) | ||||
Accumulated Other Comprehensive Income (loss) | Accounting Standards Update 2016-01 | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Cumulative effect of adoption of new accounting pronouncements | [1] | (735,600) | ||||
Accumulated Other Comprehensive Income (loss) | Accounting Standards Update 2018-02 | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Cumulative effect of adoption of new accounting pronouncements | [1] | $ 135,100 | ||||
[1] | See Note 1(r) for additional information regarding Alleghany’s adoption of new investment accounting guidance and new guidance on certain tax effects caused by the Tax Act. |
Reclassifications of Accumulate
Reclassifications of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net realized capital gains | $ 6,551 | $ 3,241 | $ (107,222) | |
Other than temporary impairment losses | 19,660 | 1,328 | ||
Income taxes | 233,435 | (15,062) | $ (63,802) | |
Unrealized Appreciation of Investments | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total reclassifications | (20,400) | 11,700 | ||
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Appreciation of Investments | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net realized capital gains | [1] | (45,500) | 13,500 | |
Other than temporary impairment losses | 19,700 | 1,300 | ||
Income taxes | $ 5,400 | $ (3,100) | ||
[1] | For 2019, excludes a $38.4 million pre-tax loss on the Put Option and a $13.6 million pre-tax loss from the December 2019 sale of a privately held investment accounted for under the equity method. For 2018, excludes a $45.7 million pre-tax gain from AIHL’s conversion of its limited partnership interests in certain subsidiaries of Ares into Ares common units, and a $35.4 million capital loss due to an impairment charge from the write-down of certain SORC assets arising from a decline in energy prices as of December 31, 2018. See Note 4 for additional information. |
Reclassifications of Accumula_2
Reclassifications of Accumulated Other Comprehensive Income (Parenthetical) (Detail) - USD ($) $ in Thousands | Mar. 15, 2018 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Net realized capital gains | $ (6,551) | $ (3,241) | $ 107,222 | ||
Pre tax loss from sale of privately held investment accounted under equity method | $ 13,600 | 13,600 | |||
Put Option | Equity Contract | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Decrease in fair value of derivative recorded as a reduction to net realized capital gains | 38,400 | ||||
Stranded Oil Resources Corporation | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Write down of oil field assets | 35,400 | ||||
Insurance Segment | Put Option | Equity Contract | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Decrease in fair value of derivative recorded as a reduction to net realized capital gains | $ 38,400 | ||||
Insurance Segment | Ares | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Net realized capital gains | $ 45,700 | $ 45,700 |
Summary of Dividends Paid to Al
Summary of Dividends Paid to Alleghany by Operating Subsidiaries (Detail) - USD ($) $ in Thousands | Mar. 15, 2018 | Dec. 31, 2019 | [2] | Dec. 31, 2018 | Dec. 31, 2017 | [3] | |
Dividends Payable [Line Items] | |||||||
Dividends paid | $ 154,000 | $ 153,967 | |||||
TransRe | |||||||
Dividends Payable [Line Items] | |||||||
Dividends paid | [1] | $ 301,000 | 300,000 | $ 225,000 | |||
RSUI | |||||||
Dividends Payable [Line Items] | |||||||
Dividends paid | [4] | 100,000 | 100,000 | 75,000 | |||
Transatlantic Holdings Incorporated And Rsui Group Incorporated | |||||||
Dividends Payable [Line Items] | |||||||
Dividends paid | $ 401,000 | $ 400,000 | $ 300,000 | ||||
[1] | In 2019, 2018 and 2017, TRC paid cash dividends of $220.0 million, $280.0 million and $270.0 million, respectively, to the TransRe holding company. In addition, TRC transferred its ownership interest in CapSpecialty to the TransRe holding company, and consequently, the TransRe holding company recorded a dividend from TRC in the amount of $101.0 million. | ||||||
[2] | Includes $101.0 million representing the July 1, 2019 carrying value of TransRe’s ownership interest in CapSpecialty, which was transferred to Alleghany. | ||||||
[3] | Dividends to Alleghany were reduced as a consequence of significant TransRe and RSUI catastrophe losses in the third quarter of 2017. | ||||||
[4] | Alleghany received an extraordinary dividend from RSUI in January 2020. |
Summary of Dividends Paid to _2
Summary of Dividends Paid to Alleghany by Operating Subsidiaries (Parenthetical) (Detail) - USD ($) $ in Thousands | Jul. 01, 2019 | Mar. 15, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Dividends Payable [Line Items] | ||||||||
Dividends paid | $ 154,000 | $ 153,967 | ||||||
Transatlantic Reinsurance Company | ||||||||
Dividends Payable [Line Items] | ||||||||
Dividends paid | $ 220,000 | 280,000 | $ 270,000 | |||||
Dividend of Ownership Interest in CapSpecialty, Inc. | Transatlantic Reinsurance Company | ||||||||
Dividends Payable [Line Items] | ||||||||
Dividends paid | 101,000 | |||||||
TransRe | ||||||||
Dividends Payable [Line Items] | ||||||||
Dividends paid | [1] | $ 301,000 | [2] | $ 300,000 | $ 225,000 | [3] | ||
TransRe | Dividend of Ownership Interest in CapSpecialty, Inc. | ||||||||
Dividends Payable [Line Items] | ||||||||
Dividends paid | $ 101,000 | |||||||
[1] | In 2019, 2018 and 2017, TRC paid cash dividends of $220.0 million, $280.0 million and $270.0 million, respectively, to the TransRe holding company. In addition, TRC transferred its ownership interest in CapSpecialty to the TransRe holding company, and consequently, the TransRe holding company recorded a dividend from TRC in the amount of $101.0 million. | |||||||
[2] | Includes $101.0 million representing the July 1, 2019 carrying value of TransRe’s ownership interest in CapSpecialty, which was transferred to Alleghany. | |||||||
[3] | Dividends to Alleghany were reduced as a consequence of significant TransRe and RSUI catastrophe losses in the third quarter of 2017. |
Reconciliation of Earnings and
Reconciliation of Earnings and Share Data used in Basic and Diluted Earnings per Share Computations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2019 | [1] | Sep. 30, 2019 | [1] | Jun. 30, 2019 | [1] | Mar. 31, 2019 | [1] | Dec. 31, 2018 | [1] | Sep. 30, 2018 | [1] | Jun. 30, 2018 | [1] | Mar. 31, 2018 | [1] | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Earnings Per Share [Abstract] | ||||||||||||||||||||
Net earnings available to Alleghany stockholders | $ 31,700 | $ 90,400 | $ 295,500 | $ 440,200 | $ (712,100) | $ 284,900 | $ 295,100 | $ 171,600 | $ 857,801 | $ 39,539 | $ 90,133 | |||||||||
Income available to common stockholders for diluted earnings per share | $ 857,800 | $ 39,500 | $ 90,100 | |||||||||||||||||
Weighted average common shares outstanding applicable to basic earnings per share | 14,431,892 | 15,062,567 | 15,410,034 | |||||||||||||||||
Effect of dilutive securities | 11,584 | |||||||||||||||||||
Adjusted weighted average common shares outstanding applicable to diluted earnings per share | 14,443,476 | 15,062,567 | 15,410,034 | |||||||||||||||||
Contingently issuable shares | [2] | 48,468 | 23,947 | 78,345 | ||||||||||||||||
[1] | Attributable to Alleghany stockholders. | |||||||||||||||||||
[2] | Contingently issuable shares were potentially available in the periods presented, but were not included in the diluted earnings per share computations because the impact was anti-dilutive to the earnings per share calculation. |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Line Items] | ||||
Rent expense | $ 40,000 | $ 38,800 | $ 37,000 | |
Investments, debt securities | 14,211,745 | 11,823,968 | ||
Investments, equity securities | 2,505,496 | 3,572,790 | ||
Stockholders' equity | 8,776,734 | $ 7,692,710 | $ 8,514,063 | $ 7,939,945 |
Energy Sector Business | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Investments and equity in consolidated subsidiaries | 530,900 | |||
Investments, debt securities | 329,200 | |||
Investments, equity securities | 115,000 | |||
Energy Sector Business | Stranded Oil Resources Corporation | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Stockholders' equity | $ 86,700 | |||
Maximum | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Non-cancelable operating leases, expiration date | 2038 |
Consolidated Lease Liabilities
Consolidated Lease Liabilities And Right-Of-Use Lease Assets Related To Operating Leases (Detail) $ in Millions | Dec. 31, 2019USD ($) | |
Maturity of lease payments, by year | ||
1 year or less | $ 39 | |
More than 1 year to 2 years | 36.5 | |
More than 2 years to 3 years | 28.9 | |
More than 3 years to 4 years | 27.2 | |
More than 4 years to 5 years | 24.8 | |
More than 5 years | 145.2 | |
Total lease payments | 301.6 | [1] |
Less: interest | (60.5) | [2] |
Lease liabilities | 241.1 | [3] |
Right-of-use lease assets | 209.7 | [4] |
Prepaid lease assets, net of lease allowances and incentives | 31.4 | |
Right-of-use lease assets and prepaid lease assets, net of lease allowances and incentives | $ 241.1 | |
[1] | As of December 31, 2019, the weighted average lease term was approximately 12 years. | |
[2] | As of December 31, 2019, the weighted average discount rate was approximately 5 percent. | |
[3] | Represents the present value of lease liabilities and is reported as a component of other liabilities on Alleghany’s consolidated balance sheet. | |
[4] | Reported as a component of other assets on Alleghany’s consolidated balance sheet. |
Consolidated Lease Liabilitie_2
Consolidated Lease Liabilities And Right-Of-Use Lease Assets Related To Operating Leases (Parenthetical) (Detail) | Dec. 31, 2019 |
Leases [Abstract] | |
Weighted average discount rate | 5.00% |
Weighted average lease term | 12 years |
Asbestos Related Illnesses and
Asbestos Related Illnesses and Environmental Impairment Loss and Loss Adjustment Expense Reserves (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Commitments and Contingencies [Line Items] | ||
Gross asbestos-related illness and environmental impairment reserves | $ 117.8 | $ 133.7 |
Net asbestos-related illness and environmental impairment reserves | 113.1 | 130.2 |
Reinsurance Segment | ||
Commitments and Contingencies [Line Items] | ||
Gross asbestos-related illness and environmental impairment reserves | 113 | 128.1 |
Net asbestos-related illness and environmental impairment reserves | 108.3 | 124.6 |
Insurance Segment | CapSpecialty Incorporated | ||
Commitments and Contingencies [Line Items] | ||
Gross asbestos-related illness and environmental impairment reserves | 4.8 | 5.6 |
Net asbestos-related illness and environmental impairment reserves | $ 4.8 | $ 5.6 |
Segments of Business - Addition
Segments of Business - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)Segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | Segment | 3 | ||
Gross premiums written | $ 6,656,400 | $ 5,895,600 | $ 5,696,900 |
Net premiums earned | $ 5,478,143 | $ 4,976,190 | $ 4,954,990 |
Wilbert Funeral Services, Inc | |||
Segment Reporting Information [Line Items] | |||
Equity interest percentage | 45.00% | ||
Reinsurance Segment | Largest Broker Concentration Risk | Gross Premiums Written | |||
Segment Reporting Information [Line Items] | |||
Percentage of gross premiums written | 26.00% | 26.00% | 24.00% |
Reinsurance Segment | Second Largest Broker Concentration Risk | Gross Premiums Written | |||
Segment Reporting Information [Line Items] | |||
Percentage of gross premiums written | 17.00% | 18.00% | 19.00% |
Reinsurance Segment | Third Largest Broker Concentration Risk | Gross Premiums Written | |||
Segment Reporting Information [Line Items] | |||
Percentage of gross premiums written | 16.00% | 15.00% | 16.00% |
Reinsurance Segment | Large Whole Account Quota Share Treaty | Gross Premiums Written | |||
Segment Reporting Information [Line Items] | |||
Percentage of gross premiums written | 14.00% | 17.00% | 19.00% |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Gross premiums written | $ 6,684,100 | $ 5,921,800 | $ 5,720,200 |
Net premiums earned | $ 5,478,100 | 4,976,200 | 4,955,000 |
Operating Segments | Alleghany Capital Corporation Segment | Wilbert Funeral Services, Inc | |||
Segment Reporting Information [Line Items] | |||
Equity interest percentage | 45.00% | ||
Operating Segments | Reinsurance Segment | |||
Segment Reporting Information [Line Items] | |||
Gross premiums written | $ 4,945,700 | 4,451,000 | 4,210,600 |
Net premiums earned | 4,327,000 | 3,939,000 | 3,808,700 |
Operating Segments | Reinsurance Segment | Non-US | |||
Segment Reporting Information [Line Items] | |||
Gross premiums written | 1,700,000 | 1,600,000 | 1,500,000 |
Net premiums earned | 1,500,000 | 1,400,000 | 1,400,000 |
Operating Segments | Reinsurance Segment | U.K. | |||
Segment Reporting Information [Line Items] | |||
Net premiums earned | $ 615,600 | $ 583,800 | $ 612,100 |
Results for Reportable Segments
Results for Reportable Segments and Corporate Activities (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Segment Reporting Information [Line Items] | ||||
Gross premiums written | $ 6,656,400 | $ 5,895,600 | $ 5,696,900 | |
Net premiums written | 5,751,700 | 5,048,400 | 4,965,900 | |
Net premiums earned | 5,478,143 | 4,976,190 | 4,954,990 | |
Net loss and LAE | 3,686,435 | 3,520,431 | 3,620,197 | |
Commissions, brokerage and other underwriting expenses | [1] | 1,758,698 | 1,617,333 | 1,651,177 |
Underwriting (loss) profit | [2] | 33,000 | (161,500) | (316,400) |
Net investment income | 550,241 | 500,534 | 451,016 | |
Change in the fair value of equity securities | 709,695 | (228,994) | ||
Net realized capital gains | (6,551) | (3,241) | 107,222 | |
Other than temporary impairment losses | (19,660) | (1,328) | ||
Other than temporary impairment losses | (16,871) | |||
Noninsurance revenue | 2,328,848 | 1,643,999 | 928,298 | |
Other operating expenses | 2,263,326 | 1,579,309 | 967,104 | |
Corporate administration | 74,830 | 15,732 | 46,998 | |
Amortization of intangible assets | 33,834 | 24,039 | 19,419 | |
Interest expense | 99,957 | 90,724 | 83,070 | |
Earnings (losses) before income taxes | 1,123,636 | 39,592 | 36,690 | |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Gross premiums written | 6,684,100 | 5,921,800 | 5,720,200 | |
Net premiums written | 5,751,700 | 5,048,400 | 4,965,900 | |
Net premiums earned | 5,478,100 | 4,976,200 | 4,955,000 | |
Net loss and LAE | 3,686,400 | 3,520,400 | 3,620,200 | |
Commissions, brokerage and other underwriting expenses | [1] | 1,758,700 | 1,617,300 | 1,651,200 |
Underwriting (loss) profit | [2] | 33,000 | (161,500) | (316,400) |
Net investment income | 539,500 | 485,700 | 436,700 | |
Change in the fair value of equity securities | 705,800 | (184,200) | ||
Net realized capital gains | 7,000 | 32,500 | 108,700 | |
Other than temporary impairment losses | (19,700) | (1,300) | ||
Other than temporary impairment losses | (16,900) | |||
Noninsurance revenue | 2,316,300 | 1,596,600 | 912,400 | |
Other operating expenses | 2,236,000 | 1,545,400 | 927,700 | |
Corporate administration | 4,100 | (1,700) | 1,700 | |
Amortization of intangible assets | 33,800 | 24,000 | 19,400 | |
Interest expense | 47,200 | 37,600 | 30,900 | |
Earnings (losses) before income taxes | 1,260,800 | 162,500 | 144,800 | |
Operating Segments | Reinsurance Segment | ||||
Segment Reporting Information [Line Items] | ||||
Gross premiums written | 4,945,700 | 4,451,000 | 4,210,600 | |
Net premiums written | 4,495,000 | 3,969,100 | 3,810,100 | |
Net premiums earned | 4,327,000 | 3,939,000 | 3,808,700 | |
Net loss and LAE | 2,961,100 | 2,869,300 | 2,785,400 | |
Commissions, brokerage and other underwriting expenses | [1] | 1,406,800 | 1,282,300 | 1,286,700 |
Underwriting (loss) profit | [2] | (40,900) | (212,600) | (263,400) |
Operating Segments | Reinsurance Segment | Property | ||||
Segment Reporting Information [Line Items] | ||||
Gross premiums written | 1,700,300 | 1,532,700 | 1,557,800 | |
Net premiums written | 1,328,800 | 1,169,400 | 1,233,100 | |
Net premiums earned | 1,280,100 | 1,177,300 | 1,181,900 | |
Net loss and LAE | 942,600 | 1,067,800 | 1,080,100 | |
Commissions, brokerage and other underwriting expenses | [1] | 424,200 | 384,900 | 383,400 |
Underwriting (loss) profit | [2] | (86,700) | (275,400) | (281,600) |
Operating Segments | Reinsurance Segment | Casualty & Other | ||||
Segment Reporting Information [Line Items] | ||||
Gross premiums written | [3] | 3,245,400 | 2,918,300 | 2,652,800 |
Net premiums written | [3] | 3,166,200 | 2,799,700 | 2,577,000 |
Net premiums earned | [3] | 3,046,900 | 2,761,700 | 2,626,800 |
Net loss and LAE | [3] | 2,018,500 | 1,801,500 | 1,705,300 |
Commissions, brokerage and other underwriting expenses | [1],[3] | 982,600 | 897,400 | 903,300 |
Underwriting (loss) profit | [2],[3] | 45,800 | 62,800 | 18,200 |
Operating Segments | Insurance Segment | ||||
Segment Reporting Information [Line Items] | ||||
Gross premiums written | 1,738,400 | 1,470,800 | 1,509,600 | |
Net premiums written | 1,256,700 | 1,079,300 | 1,155,800 | |
Net premiums earned | 1,151,100 | 1,037,200 | 1,146,300 | |
Net loss and LAE | 725,300 | 651,100 | 834,800 | |
Commissions, brokerage and other underwriting expenses | [1] | 351,900 | 335,000 | 364,500 |
Underwriting (loss) profit | [2] | 73,900 | 51,100 | (53,000) |
Operating Segments | Insurance Segment | RSUI | ||||
Segment Reporting Information [Line Items] | ||||
Gross premiums written | 1,366,600 | 1,142,000 | 1,056,800 | |
Net premiums written | 912,000 | 773,300 | 724,400 | |
Net premiums earned | 824,200 | 747,300 | 721,700 | |
Net loss and LAE | 503,700 | 491,200 | 569,900 | |
Commissions, brokerage and other underwriting expenses | [1] | 219,200 | 211,900 | 208,900 |
Underwriting (loss) profit | [2] | 101,300 | 44,200 | (57,100) |
Operating Segments | Insurance Segment | CapSpecialty Incorporated | ||||
Segment Reporting Information [Line Items] | ||||
Gross premiums written | 371,800 | 328,800 | 290,200 | |
Net premiums written | 344,700 | 306,000 | 271,200 | |
Net premiums earned | 326,900 | 289,900 | 260,900 | |
Net loss and LAE | 221,600 | 159,900 | 143,900 | |
Commissions, brokerage and other underwriting expenses | [1] | 132,700 | 123,100 | 112,700 |
Underwriting (loss) profit | [2] | (27,400) | 6,900 | 4,300 |
Operating Segments | Insurance Segment | Pacific Comp | ||||
Segment Reporting Information [Line Items] | ||||
Gross premiums written | 162,600 | |||
Net premiums written | 160,200 | |||
Net premiums earned | 163,700 | |||
Net loss and LAE | 121,000 | |||
Commissions, brokerage and other underwriting expenses | [1] | 42,900 | ||
Underwriting (loss) profit | [2] | (200) | ||
Operating Segments | Reinsurance Segment and Insurance Segment | ||||
Segment Reporting Information [Line Items] | ||||
Gross premiums written | 6,684,100 | 5,921,800 | 5,720,200 | |
Net premiums written | 5,751,700 | 5,048,400 | 4,965,900 | |
Net premiums earned | 5,478,100 | 4,976,200 | 4,955,000 | |
Net loss and LAE | 3,686,400 | 3,520,400 | 3,620,200 | |
Commissions, brokerage and other underwriting expenses | [1] | 1,758,700 | 1,617,300 | 1,651,200 |
Underwriting (loss) profit | [2] | 33,000 | (161,500) | (316,400) |
Net investment income | 533,200 | 480,900 | 434,600 | |
Change in the fair value of equity securities | 705,800 | (184,200) | ||
Net realized capital gains | 6,000 | 31,600 | 85,700 | |
Other than temporary impairment losses | (19,700) | (1,300) | ||
Other than temporary impairment losses | (16,900) | |||
Noninsurance revenue | 27,000 | 22,000 | 15,500 | |
Other operating expenses | 103,100 | 59,800 | 82,800 | |
Corporate administration | 4,100 | (1,700) | 1,700 | |
Amortization of intangible assets | 1,300 | (400) | (1,500) | |
Interest expense | 27,100 | 27,100 | 26,900 | |
Earnings (losses) before income taxes | 1,149,700 | 102,700 | 92,600 | |
Operating Segments | Alleghany Capital Corporation Segment | ||||
Segment Reporting Information [Line Items] | ||||
Net investment income | [4] | 6,300 | 4,800 | 2,100 |
Net realized capital gains | [4] | 1,000 | 900 | 23,000 |
Noninsurance revenue | [4] | 2,289,300 | 1,574,600 | 896,900 |
Other operating expenses | [4] | 2,132,900 | 1,485,600 | 844,900 |
Amortization of intangible assets | [4] | 32,500 | 24,400 | 20,900 |
Interest expense | [4] | 20,100 | 10,500 | 4,000 |
Earnings (losses) before income taxes | [4] | 111,100 | 59,800 | 52,200 |
Corporate activities | ||||
Segment Reporting Information [Line Items] | ||||
Gross premiums written | [5] | (27,700) | (26,200) | (23,300) |
Net investment income | [5] | 10,700 | 14,800 | 14,300 |
Change in the fair value of equity securities | [5] | 3,900 | (44,800) | |
Net realized capital gains | [5] | (13,500) | (35,700) | (1,500) |
Noninsurance revenue | [5] | 12,500 | 47,400 | 15,900 |
Other operating expenses | [5] | 27,300 | 33,900 | 39,400 |
Corporate administration | [5] | 70,700 | 17,600 | 45,300 |
Interest expense | [5] | 52,800 | 53,100 | 52,100 |
Earnings (losses) before income taxes | [5] | $ (137,200) | $ (122,900) | $ (108,100) |
[1] | Includes amortization associated with deferred acquisition costs of $1,392.8 million, $1,271.4 million and $1,261.7 million for the years ended December 31, 2019, 2018 and 2017, respectively. | |||
[2] | Underwriting profit represents net premiums earned less net loss and LAE and commissions, brokerage and other underwriting expenses, all as determined in accordance with GAAP, and does not include net investment income, change in the fair value of equity securities, net realized capital gains, OTTI losses, noninsurance revenue, other operating expenses, corporate administration, amortization of intangible assets or interest expense. Underwriting profit does not replace earnings before income taxes determined in accordance with GAAP as a measure of profitability. Rather, Alleghany believes that underwriting profit enhances the understanding of its reinsurance and insurance segments’ operating results by highlighting net earnings attributable to their underwriting performance. Earnings before income taxes (a GAAP measure) may show a profit despite an underlying underwriting loss. Where underwriting losses persist over extended periods, a reinsurance or an insurance company’s ability to continue as an ongoing concern may be at risk. Therefore, Alleghany views underwriting profit as an important measure in the overall evaluation of performance. | |||
[3] | Primarily consists of the following reinsurance lines of business: directors’ and officers’ liability; errors and omissions liability; general liability; medical malpractice; ocean marine and aviation; auto liability; accident & health; mortgage reinsurance; surety; and credit. | |||
[4] | Excludes certain minor, legacy investments that were previously reflected in Alleghany Capital in 2018 and prior periods, to align with management’s view of reportable segments. | |||
[5] | Includes elimination of minor reinsurance activity between segments. Also, includes certain minor, legacy investments that were previously reflected in Alleghany Capital in 2018 and prior periods. |
Results for Reportable Segmen_2
Results for Reportable Segments and Corporate Activities (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting [Abstract] | |||
Amortization associated with deferred acquisition costs | $ 1,392.8 | $ 1,271.4 | $ 1,261.7 |
Summary of Identifiable Assets
Summary of Identifiable Assets and Equity (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Segment Reporting Information [Line Items] | ||||
Identifiable Assets | $ 26,931,604 | $ 25,344,896 | ||
Invested Assets and Cash | 20,070,900 | |||
Equity Attributable to Alleghany | 8,776,734 | $ 7,692,710 | $ 8,514,063 | $ 7,939,945 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Identifiable Assets | 26,437,100 | |||
Invested Assets and Cash | 19,664,800 | |||
Equity Attributable to Alleghany | 9,317,200 | |||
Operating Segments | Reinsurance Segment | ||||
Segment Reporting Information [Line Items] | ||||
Identifiable Assets | 17,158,200 | |||
Invested Assets and Cash | 13,803,900 | |||
Equity Attributable to Alleghany | 5,243,300 | |||
Operating Segments | Insurance Segment | ||||
Segment Reporting Information [Line Items] | ||||
Identifiable Assets | 7,230,600 | |||
Invested Assets and Cash | 5,641,800 | |||
Equity Attributable to Alleghany | 3,173,000 | |||
Operating Segments | Reinsurance Segment and Insurance Segment | ||||
Segment Reporting Information [Line Items] | ||||
Identifiable Assets | 24,388,800 | |||
Invested Assets and Cash | 19,445,700 | |||
Equity Attributable to Alleghany | 8,416,300 | |||
Operating Segments | Alleghany Capital Corporation Segment | ||||
Segment Reporting Information [Line Items] | ||||
Identifiable Assets | 2,048,300 | |||
Invested Assets and Cash | 219,100 | |||
Equity Attributable to Alleghany | 900,900 | |||
Corporate activities | ||||
Segment Reporting Information [Line Items] | ||||
Identifiable Assets | 494,500 | |||
Invested Assets and Cash | 406,100 | |||
Equity Attributable to Alleghany | $ (540,500) |
Summary of Alleghany Capital No
Summary of Alleghany Capital Non-Insurance Revenue (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Other Revenues [Line Items] | ||||
Noninsurance revenue | $ 2,328,848 | $ 1,643,999 | $ 928,298 | |
Operating Segments | ||||
Other Revenues [Line Items] | ||||
Noninsurance revenue | 2,316,300 | 1,596,600 | 912,400 | |
Operating Segments | Alleghany Capital Corporation Segment | ||||
Other Revenues [Line Items] | ||||
Noninsurance revenue | [1] | 2,289,300 | 1,574,600 | 896,900 |
Operating Segments | Alleghany Capital Corporation Segment | Industrial Segment | ||||
Other Revenues [Line Items] | ||||
Noninsurance revenue | [2] | 1,105,600 | 917,100 | 393,700 |
Operating Segments | Alleghany Capital Corporation Segment | Non-industrial Segment | ||||
Other Revenues [Line Items] | ||||
Noninsurance revenue | [3] | $ 1,183,700 | $ 657,500 | 502,400 |
Operating Segments | Alleghany Capital Corporation Segment | Corporate & Other | ||||
Other Revenues [Line Items] | ||||
Noninsurance revenue | $ 800 | |||
[1] | Excludes certain minor, legacy investments that were previously reflected in Alleghany Capital in 2018 and prior periods, to align with management’s view of reportable segments. | |||
[2] | For 2019 and 2018, the vast majority of industrial noninsurance revenues were recognized as goods and services transferred to customers over time. For 2017, approximately 72 percent of noninsurance revenues that were recognized as services were transferred to customers over time, with the remainder recognized as goods transferred at a point in time. See Note 1(r) additional information regarding Alleghany’s adoption of new revenue recognition accounting guidance effective in the first quarter of 2018. | |||
[3] | For 2019, 2018 and 2017, approximately 70 percent, 63 percent and 66 percent, respectively, of non-industrial noninsurance revenues were recognized as services transferred to customers over time, with the remainder recognized as goods transferred at a point in time. See Note 1(r) for additional information on Alleghany’s adoption of new revenue recognition accounting guidance effective in the first quarter of 2018. |
Summary of Alleghany Capital _2
Summary of Alleghany Capital Non-Insurance Revenue (Parenthetical) (Detail) - Operating Segments - Alleghany Capital Corporation Segment - Transferred over Time [Member] | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Non-Industrial Segment | |||
Other Revenues [Line Items] | |||
Noninsurance revenue percentage | 70.00% | 63.00% | 66.00% |
Industrial Segment | |||
Other Revenues [Line Items] | |||
Noninsurance revenue percentage | 72.00% |
Long-Term Compensation Plans -
Long-Term Compensation Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restricted Stock Units (RSUs) | RSUI | |||
Executive Compensation Plan Expense [Line Items] | |||
Compensation expense recognized | $ 37.4 | $ 11.7 | $ 26.3 |
Income tax (expenses) benefit related to share based compensation expense | 7.8 | 2.4 | 5.5 |
Parent Company | |||
Executive Compensation Plan Expense [Line Items] | |||
Compensation expense recognized | 38.7 | (12) | 17.1 |
Income tax (expenses) benefit related to share based compensation expense | 8.1 | (2.5) | 3.6 |
Fair value of common stocks issued to satisfy share based compensations | 2.4 | 4.3 | 7.1 |
Compensation costs paid in cash | 2.2 | 17.1 | 19.3 |
Reinsurance Segment | Book Value Unit Plan Bvu And Midterm Incentive Plan Grant | |||
Executive Compensation Plan Expense [Line Items] | |||
Compensation expense recognized | 48.7 | 35.6 | 46.6 |
Income tax (expenses) benefit related to share based compensation expense | $ 10.2 | $ 7.5 | $ 9.8 |
Employee Retirement Benefit P_2
Employee Retirement Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Transatlantic Holdings Incorporated | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 79 | $ 65.5 |
Fair value of plan assets | 56.9 | 49.1 |
WWSC Holdings, LLC | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 10 | |
Fair value of plan assets | 11.7 | |
Parent Company | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 44.1 | 32.3 |
Fair value of plan assets | 3.5 | $ 3.3 |
Executive Retirement Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Expected future employer contributions, next fiscal year | 57 | |
Estimated other comprehensive income attributable to defined benefit retirement plans, before tax, that will be reclassified to expenses in 2020 | 21 | |
Other comprehensive losses attributable to retirement plans, before tax | $ 15.4 |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||
Revenues | $ 2,300,800 | $ 2,159,900 | $ 2,258,700 | $ 2,321,200 | $ 1,227,100 | $ 2,177,400 | $ 1,897,700 | $ 1,585,000 | $ 9,040,716 | $ 6,887,160 | $ 6,424,655 | ||||||||
Net earnings (losses) | $ 31,700 | [1] | $ 90,400 | [1] | $ 295,500 | [1] | $ 440,200 | [1] | $ (712,100) | [1] | $ 284,900 | [1] | $ 295,100 | [1] | $ 171,600 | [1] | $ 857,801 | $ 39,539 | $ 90,133 |
Basic earnings (losses) per share of common stock | $ 2.20 | [1],[2] | $ 6.27 | [1],[2] | $ 20.46 | [1],[2] | $ 30.40 | [1],[2] | $ (48.30) | [1],[2] | $ 19.07 | [1],[2] | $ 19.44 | [1],[2] | $ 11.15 | [1],[2] | $ 59.44 | $ 2.62 | $ 5.85 |
[1] | Attributable to Alleghany stockholders. | ||||||||||||||||||
[2] | Earnings per share by quarter may not equal the amount for the full year due to the timing of repurchases of Common Stock, as well as rounding. |
Summary of Investments Other Th
Summary of Investments Other Than Investments in Related Parties (Detail) $ in Millions | Dec. 31, 2019USD ($) |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | $ 17,598.5 |
Fair Value | 18,891.8 |
Amount at which shown in Balance sheet | 18,891.8 |
U.S. Government obligations | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 1,198.5 |
Fair Value | 1,215 |
Amount at which shown in Balance sheet | 1,215 |
Municipal bonds | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 2,190.5 |
Fair Value | 2,307.9 |
Amount at which shown in Balance sheet | 2,307.9 |
Foreign government obligations | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 675.9 |
Fair Value | 690.7 |
Amount at which shown in Balance sheet | 690.7 |
U.S. corporate bonds | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 3,206.2 |
Fair Value | 3,359 |
Amount at which shown in Balance sheet | 3,359 |
Foreign corporate bonds | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 1,348.1 |
Fair Value | 1,377.4 |
Amount at which shown in Balance sheet | 1,377.4 |
RMBS | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 1,785.1 |
Fair Value | 1,840.4 |
Amount at which shown in Balance sheet | 1,840.4 |
CMBS | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 849.9 |
Fair Value | 871.7 |
Amount at which shown in Balance sheet | 871.7 |
Other asset-backed securities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 2,544.5 |
Fair Value | 2,549.6 |
Amount at which shown in Balance sheet | 2,549.6 |
Fixed Maturities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 13,798.7 |
Fair Value | 14,211.7 |
Amount at which shown in Balance sheet | 14,211.7 |
Public utilities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 0 |
Fair Value | 0 |
Amount at which shown in Balance sheet | 0 |
Banks, trust and insurance companies | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 272 |
Fair Value | 390.9 |
Amount at which shown in Balance sheet | 390.9 |
Industrial, miscellaneous and all other | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 1,345.4 |
Fair Value | 2,110.5 |
Amount at which shown in Balance sheet | 2,110.5 |
Nonredeemable preferred stocks | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 7.8 |
Fair Value | 4.1 |
Amount at which shown in Balance sheet | 4.1 |
Equity Securities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 1,625.2 |
Fair Value | 2,505.5 |
Amount at which shown in Balance sheet | 2,505.5 |
Commercial mortgage loans | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 686.2 |
Fair Value | 686.2 |
Amount at which shown in Balance sheet | 686.2 |
Other invested assets | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 573.6 |
Fair Value | 573.6 |
Amount at which shown in Balance sheet | 573.6 |
Short-term Investments | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 914.8 |
Fair Value | 914.8 |
Amount at which shown in Balance sheet | $ 914.8 |
Condensed Balance Sheets (Detai
Condensed Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||||
Equity securities | $ 2,505,496 | $ 3,572,790 | ||
Debt securities | 14,211,745 | 11,823,968 | ||
Short-term investments | 914,776 | 893,776 | ||
Other invested assets | 573,605 | 555,972 | ||
Cash | 1,179,098 | 1,038,763 | ||
Property and equipment at cost, net of accumulated depreciation and amortization | 205,397 | 195,243 | ||
Other assets | 1,183,633 | 1,012,379 | ||
Net deferred tax assets | 5,860 | 164,890 | ||
Total assets | 26,931,604 | 25,344,896 | ||
Liabilities, Redeemable Noncontrolling Interests and Stockholders’ Equity | ||||
Senior notes | 1,751,113 | 1,669,039 | ||
Other liabilities | 1,516,076 | 1,127,346 | ||
Total liabilities | 17,950,117 | 17,482,424 | ||
Redeemable noncontrolling interest | 204,753 | 169,762 | $ 106,530 | $ 74,720 |
Stockholders' equity attributable to Alleghany stockholders | 8,776,734 | 7,692,710 | $ 8,514,063 | $ 7,939,945 |
Total liabilities, redeemable noncontrolling interests and stockholders’ equity | 26,931,604 | 25,344,896 | ||
Parent Company | ||||
Assets | ||||
Equity securities | 4,042 | 64,121 | ||
Debt securities | 182,490 | 90 | ||
Short-term investments | 125,412 | 287,573 | ||
Other invested assets | 81,728 | 79,266 | ||
Cash | 684 | 331 | ||
Property and equipment at cost, net of accumulated depreciation and amortization | 4,201 | 4,588 | ||
Other assets | 57,415 | 8,303 | ||
Net deferred tax assets | 30,118 | 13,956 | ||
Investment in subsidiaries | 9,638,153 | 8,491,404 | ||
Total assets | 10,124,243 | 8,949,632 | ||
Liabilities, Redeemable Noncontrolling Interests and Stockholders’ Equity | ||||
Senior notes | 994,241 | 993,286 | ||
Other liabilities | 144,382 | 87,489 | ||
Current taxes payable | 4,133 | 6,385 | ||
Total liabilities | 1,142,756 | 1,087,160 | ||
Redeemable noncontrolling interest | 204,753 | 169,762 | ||
Stockholders' equity attributable to Alleghany stockholders | 8,776,734 | 7,692,710 | ||
Total liabilities, redeemable noncontrolling interests and stockholders’ equity | $ 10,124,243 | $ 8,949,632 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Condensed Balance Sheet Statements Captions [Line Items] | ||
Equity securities, cost | $ 1,625,256 | $ 2,904,496 |
Debt securities, amortized cost | 13,798,576 | 11,895,850 |
Parent Company | ||
Condensed Balance Sheet Statements Captions [Line Items] | ||
Equity securities, cost | 1,708 | 47,546 |
Debt securities, amortized cost | $ 179,747 | $ 90 |
Condensed Statements of Earning
Condensed Statements of Earnings (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||||||
Revenues | |||||||||||||||||||
Net investment income | $ 550,241 | $ 500,534 | $ 451,016 | ||||||||||||||||
Change in the fair value of equity securities | 709,695 | (228,994) | |||||||||||||||||
Net realized capital gains | (6,551) | (3,241) | 107,222 | ||||||||||||||||
Other than temporary impairment losses | (19,660) | (1,328) | |||||||||||||||||
Other than temporary impairment losses | (16,871) | ||||||||||||||||||
Noninsurance revenue | 2,328,848 | 1,643,999 | 928,298 | ||||||||||||||||
Total revenues | $ 2,300,800 | $ 2,159,900 | $ 2,258,700 | $ 2,321,200 | $ 1,227,100 | $ 2,177,400 | $ 1,897,700 | $ 1,585,000 | 9,040,716 | 6,887,160 | 6,424,655 | ||||||||
Costs and Expenses | |||||||||||||||||||
Interest expense | 99,957 | 90,724 | 83,070 | ||||||||||||||||
Corporate administration | 74,830 | 15,732 | 46,998 | ||||||||||||||||
Total costs and expenses | 7,917,080 | 6,847,568 | 6,387,965 | ||||||||||||||||
Earnings (losses) before income taxes | 1,123,636 | 39,592 | 36,690 | ||||||||||||||||
Income taxes | 233,435 | (15,062) | (63,802) | ||||||||||||||||
Net earnings | 890,201 | 54,654 | 100,492 | ||||||||||||||||
Net earnings attributable to noncontrolling interests | 32,400 | 15,115 | 10,359 | ||||||||||||||||
Net earnings attributable to Alleghany stockholders | $ 31,700 | [1] | $ 90,400 | [1] | $ 295,500 | [1] | $ 440,200 | [1] | $ (712,100) | [1] | $ 284,900 | [1] | $ 295,100 | [1] | $ 171,600 | [1] | 857,801 | 39,539 | 90,133 |
Parent Company | |||||||||||||||||||
Revenues | |||||||||||||||||||
Net investment income | 10,790 | 16,548 | 13,659 | ||||||||||||||||
Change in the fair value of equity securities | 3,937 | (44,780) | |||||||||||||||||
Net realized capital gains | (13,497) | (265) | 3,326 | ||||||||||||||||
Noninsurance revenue | 85 | 64 | 683 | ||||||||||||||||
Total revenues | 1,315 | (28,433) | 17,668 | ||||||||||||||||
Costs and Expenses | |||||||||||||||||||
Interest expense | 52,908 | 53,121 | 52,103 | ||||||||||||||||
Corporate administration | 70,692 | 17,565 | 45,308 | ||||||||||||||||
Total costs and expenses | 123,600 | 70,686 | 97,411 | ||||||||||||||||
(Losses) before equity in earnings of consolidated subsidiaries and income taxes | (122,285) | (99,119) | (79,743) | ||||||||||||||||
Equity in earnings of consolidated subsidiaries | 1,245,921 | 138,711 | 116,433 | ||||||||||||||||
Earnings (losses) before income taxes | 1,123,636 | 39,592 | 36,690 | ||||||||||||||||
Income taxes | 233,435 | (15,062) | (63,802) | ||||||||||||||||
Net earnings | 890,201 | 54,654 | 100,492 | ||||||||||||||||
Net earnings attributable to noncontrolling interests | 32,400 | 15,115 | 10,359 | ||||||||||||||||
Net earnings attributable to Alleghany stockholders | $ 857,801 | $ 39,539 | $ 90,133 | ||||||||||||||||
[1] | Attributable to Alleghany stockholders. |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Detail) - USD ($) $ in Thousands | Mar. 15, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Cash flows from operating activities | ||||
Net earnings | $ 890,201 | $ 54,654 | $ 100,492 | |
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | ||||
Depreciation and amortization | 119,513 | 127,374 | 135,029 | |
Change in the fair value of equity securities | (709,695) | 228,994 | ||
Net realized capital (gains) losses | 6,551 | 3,241 | (107,222) | |
Other than temporary impairment losses | 19,660 | 1,328 | ||
Other than temporary impairment losses | 16,871 | |||
Net adjustments | (175,796) | 347,769 | 345,243 | |
Net cash provided by (used in) operating activities | 714,405 | 402,423 | 445,735 | |
Cash flows from investing activities | ||||
Purchases of equity securities | (520,961) | (1,041,887) | ||
Purchases of equity securities | (4,574,415) | |||
Purchases of debt securities | (6,726,809) | (4,716,070) | (5,805,364) | |
Sales of debt securities | 3,645,307 | 3,647,156 | 3,986,259 | |
Maturities and redemptions of debt securities | 1,166,841 | 1,526,060 | 1,943,263 | |
Sales of equity securities | 2,296,371 | 1,609,647 | ||
Sales of equity securities | 4,315,408 | |||
Net (purchase) sale of short-term investments | (21,564) | (316,366) | 145,237 | |
Purchases of property and equipment | (47,572) | (23,286) | 6,775 | |
Other, net | (40,218) | (86,478) | (22,678) | |
Net cash provided by (used in) investing activities | (476,539) | 345,432 | (155,120) | |
Cash flows from financing activities | ||||
Treasury stock acquisitions | (144,422) | (491,633) | (16,048) | |
Cash dividends paid | $ (154,000) | (153,967) | ||
Other, net | (40,530) | 4,512 | (19,400) | |
Net cash provided by (used in) financing activities | (103,214) | (536,684) | (64,372) | |
Net increase (decrease) in cash | 140,335 | 200,388 | 244,284 | |
Cash at beginning of period | 1,038,763 | 838,375 | 594,091 | |
Cash at end of period | 1,179,098 | 1,038,763 | 838,375 | |
Cash paid during the period for: | ||||
Interest paid | 97,016 | 88,345 | 83,171 | |
Income taxes paid (refunds received) | 61,786 | 33,677 | 8,863 | |
Parent Company | ||||
Cash flows from operating activities | ||||
Net earnings | 890,201 | 54,654 | 100,492 | |
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | ||||
Equity in undistributed net (earnings) losses of consolidated subsidiaries | (989,486) | (130,050) | (154,577) | |
Depreciation and amortization | 2,249 | 1,750 | 1,916 | |
Change in the fair value of equity securities | (3,937) | 44,780 | ||
Net realized capital (gains) losses | 13,497 | 265 | (3,326) | |
Increase (decrease) in other liabilities and taxes payable | 24,593 | (84,803) | 25,040 | |
Net adjustments | (953,084) | (168,058) | (130,947) | |
Net cash provided by (used in) operating activities | (62,883) | (113,404) | (30,455) | |
Cash flows from investing activities | ||||
Purchases of equity securities | (31,125) | |||
Purchases of equity securities | (1,427,194) | |||
Purchases of debt securities | (194,706) | (3,418) | ||
Sales of debt securities | 1,186 | 29,189 | 4,909 | |
Maturities and redemptions of debt securities | 13,344 | 53 | 73 | |
Sales of equity securities | 64,016 | 360,579 | ||
Sales of equity securities | 1,213,974 | |||
Net (purchase) sale of short-term investments | 162,161 | (195,983) | 143,920 | |
Purchases of property and equipment | (124) | (76) | ||
Other, net | (33,245) | (4,926) | (35,182) | |
Net cash provided by (used in) investing activities | 12,632 | 154,369 | (99,576) | |
Cash flows from financing activities | ||||
Treasury stock acquisitions | (144,422) | (491,633) | (16,048) | |
Cash dividends paid | (153,967) | |||
Capital contributions to consolidated subsidiaries | (15,267) | (175,653) | (245,000) | |
Distributions from consolidated subsidiaries | 215,000 | 751,471 | 405,000 | |
Other, net | (4,707) | 7,868 | 1,220 | |
Net cash provided by (used in) financing activities | 50,604 | (61,914) | 145,172 | |
Net increase (decrease) in cash | 353 | (20,949) | 15,141 | |
Cash at beginning of period | 331 | 21,280 | 6,139 | |
Cash at end of period | 684 | 331 | 21,280 | |
Cash paid during the period for: | ||||
Interest paid | 51,375 | 51,375 | 51,375 | |
Income taxes paid (refunds received) | $ (4,189) | $ (8,338) | $ 8,140 |
Supplemental Insurance Inform_2
Supplemental Insurance Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reinsurance Segment | |||
Supplementary Insurance Information By Segment [Line Items] | |||
Deferred Policy Acquisition Costs | $ 406.7 | $ 361.2 | $ 355.9 |
Future Policy Benefits, Losses, Claims and Loss Expenses | 9,323.8 | 9,442.2 | 9,128 |
Unearned Premiums | 1,668.1 | 1,523.9 | 1,503.6 |
Other Policy Claims and Benefits Payable | 0 | 0 | 0 |
Premium Revenue | 4,327 | 3,939 | 3,808.7 |
Net Investment Income | 371.9 | 327 | 312 |
Benefits, Claims, Losses and Settlement Expenses | 2,961.1 | 2,869.3 | 2,785.4 |
Amortization of Deferred Policy Acquisition Costs | 1,178.7 | 1,075.9 | 1,074.3 |
Other Operating Expenses | 228.1 | 206.4 | 212.4 |
Premiums Written | 4,495 | 3,969.1 | 3,810.1 |
Insurance Segment | |||
Supplementary Insurance Information By Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 115.9 | 103.3 | 97.4 |
Future Policy Benefits, Losses, Claims and Loss Expenses | 2,670.3 | 2,874.9 | 2,811.1 |
Unearned Premiums | 910.1 | 754.2 | 689 |
Other Policy Claims and Benefits Payable | 0 | 0 | 0 |
Premium Revenue | 1,151.1 | 1,037.2 | 1,146.3 |
Net Investment Income | 161.3 | 153.9 | 122.6 |
Benefits, Claims, Losses and Settlement Expenses | 725.3 | 651.1 | 834.8 |
Amortization of Deferred Policy Acquisition Costs | 214.1 | 195.5 | 187.4 |
Other Operating Expenses | 137.8 | 139.4 | 177.1 |
Premiums Written | $ 1,256.7 | $ 1,079.3 | $ 1,155.8 |
Reinsurance (Detail)
Reinsurance (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Gross Amount | $ 2,114,100 | $ 1,935,300 | $ 1,932,000 |
Ceded to Other Companies | 904,800 | 840,500 | 767,300 |
Assumed from Other Companies | 4,268,800 | 3,881,400 | 3,790,300 |
Net Amount | 5,478,143 | 4,976,190 | 4,954,990 |
Property and Casualty Insurance | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Gross Amount | 2,114,100 | 1,935,300 | 1,932,000 |
Ceded to Other Companies | 904,800 | 840,500 | 767,300 |
Assumed from Other Companies | 4,268,800 | 3,881,400 | 3,790,300 |
Net Amount | $ 5,478,100 | $ 4,976,200 | $ 4,955,000 |
Percentage of Amount Assumed to Net | 77.90% | 78.00% | 76.50% |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Detail) - Allowance for Uncollectible Premiums Receivable - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Beginning Balance | $ 0.4 | $ 0.5 | $ 1 |
Charged to Costs and Expenses | 0.9 | 0.7 | 0.8 |
Deductions | 0.6 | 0.8 | 1.3 |
Ending Balance | $ 0.7 | $ 0.4 | $ 0.5 |
Supplemental Information Conc_2
Supplemental Information Concerning Insurance Operations (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Supplemental Information For Property Casualty Insurance Underwriters [Abstract] | |||
Deferred Policy Acquisition Costs | $ 522.6 | $ 464.5 | $ 453.3 |
Reserves for Unpaid Claims and Claim Adjustment Expenses | 11,928.4 | 12,250.3 | 11,871.3 |
Unearned Premiums | 2,566.2 | 2,267.1 | 2,182.3 |
Earned Premiums | 5,478.1 | 4,976.2 | 4,955 |
Net Investment Income | 533.2 | 480.9 | 434.6 |
Claims and Claim Adjustment Expenses Incurred Related to Current Year | 3,871.1 | 3,849.4 | 3,918.8 |
Claims incurred related to prior years | (184.7) | (329) | (298.6) |
Amortization of Deferred Policy Acquisition Costs | 1,392.8 | 1,271.4 | 1,261.7 |
Paid Claims and Claim Adjustment Expenses | 3,724.5 | 3,257.9 | 3,078.4 |
Premiums Written | $ 5,751.7 | $ 5,048.4 | $ 4,965.9 |