Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2019shares | |
Entity Listings [Line Items] | |
Document type | 20-F |
Document period end date | Dec. 31, 2019 |
Amendment flag | false |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Entity registrant name | PARTNERRE LTD. |
Entity central index key | 0000911421 |
Entity current reporting status | Yes |
Entity voluntary filers | No |
Current fiscal year end date | --12-31 |
Entity filer category | Non-accelerated Filer |
Entity well known seasoned issuer | No |
Entity shell company | false |
Entity emerging growth company | false |
Common shares | |
Entity Listings [Line Items] | |
Entity common stock shares outstanding | 100,000,000 |
Class B Shares | |
Entity Listings [Line Items] | |
Entity common stock shares outstanding | 281,768 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Assets | |||
Fixed maturities, at fair value (amortized cost: 2019, $10,468,937; 2018, $12,627,921) | $ 10,680,714 | $ 12,639,845 | |
Short-term investments, at fair value (amortized cost: 2019, $1,003,508; 2018, $495,050) | 1,003,421 | 493,726 | [1] |
Equities, at fair value (cost: 2019, $821,430; 2018, $621,312) | 1,295,164 | 694,301 | |
Investments in real estate | 71,834 | 72,573 | |
Other invested assets | 3,266,009 | 1,488,995 | |
Total investments | 16,317,142 | 15,389,440 | |
Cash and cash equivalents | 1,484,463 | 877,907 | |
Accrued investment income | 109,673 | 115,735 | |
Reinsurance balances receivable | 3,400,070 | 2,976,644 | |
Reinsurance recoverable on paid and unpaid losses | 889,021 | 897,183 | |
Prepaid reinsurance premiums | 80,942 | 102,405 | |
Funds held by reinsured companies | 815,167 | 829,695 | |
Deferred acquisition costs | 874,608 | 743,046 | |
Deposit assets | 168,067 | 80,661 | |
Net tax assets | 179,813 | 157,690 | |
Goodwill | 456,380 | 456,380 | |
Intangible assets | 117,538 | 128,899 | |
Other assets | 169,521 | 63,506 | |
Total assets | 25,062,405 | 22,819,191 | |
Liabilities | |||
Non-life reserves | 10,363,383 | 9,895,376 | |
Life and health reserves | 2,417,044 | 2,198,080 | |
Unearned premiums | 2,433,860 | 2,072,953 | |
Other reinsurance balances payable | 521,338 | 341,041 | |
Deposit liabilities | 5,507 | 7,172 | |
Net tax liabilities | 135,966 | 101,525 | |
Accounts payable, accrued expenses and other | 517,084 | 266,524 | |
Debt related to senior notes | 1,327,965 | 1,349,017 | |
Debt related to capital efficient notes | 70,089 | 70,989 | |
Total liabilities | 17,792,236 | 16,302,677 | |
Shareholders’ Equity | |||
Common shares (par value $0.00000001; issued and outstanding: 100,000,000 shares) | 0 | 0 | |
Preferred shares (par value $1.00; issued and outstanding: 28,169,062 shares; aggregate liquidation value: $704,227) | 28,169 | 28,169 | |
Additional paid-in capital | 2,396,530 | 2,396,530 | |
Accumulated other comprehensive loss | (75,925) | (138,634) | |
Retained earnings | 4,921,395 | 4,230,449 | |
Total shareholders’ equity | 7,270,169 | 6,516,514 | |
Total liabilities and shareholders’ equity | $ 25,062,405 | $ 22,819,191 | |
[1] | Short-term investments includes $229 million of available-for-sale securities with readily determinable fair values. These securities were purchased in 2018 and are recorded at fair value, which approximated amortized cost given the short term to maturity of approximately three to four months |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Fixed maturities, at amortized cost | $ 10,468,937 | $ 12,627,921 |
Short-term investments, at amortized cost | 1,003,508 | 495,050 |
Equities, at cost | $ 821,430 | $ 621,312 |
Shareholders’ Equity | ||
Common shares, par value | $ 0.00 | $ 0.00 |
Common shares, shares issued | 100,000,000 | 100,000,000 |
Preferred shares, par value | $ 1 | $ 1 |
Preferred shares, shares issued | 28,169,062 | 28,169,062 |
Preferred shares, shares outstanding | 28,169,062 | 28,169,062 |
Aggregate liquidation preference | $ 704,227 | $ 704,227 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues | |||
Gross premiums written | $ 7,285,320 | $ 6,299,929 | $ 5,587,894 |
Net premiums written | 6,909,058 | 5,803,364 | 5,119,926 |
Increase in unearned premiums | (383,840) | (289,554) | (94,945) |
Net premiums earned | 6,525,218 | 5,513,810 | 5,024,981 |
Net investment income | 448,538 | 415,921 | 402,071 |
Net realized and unrealized investment gains (losses) | 886,670 | (389,632) | 232,491 |
Other income | 15,321 | 50,127 | 15,242 |
Total revenues | 7,875,747 | 5,590,226 | 5,674,785 |
Expenses | |||
Losses and loss expenses | 4,923,156 | 4,193,255 | 3,840,982 |
Acquisition costs | 1,455,462 | 1,237,464 | 1,119,773 |
Other expenses | 369,969 | 305,568 | 348,398 |
Interest expense | 40,150 | 43,152 | 42,500 |
Loss on redemption of debt | 15,175 | 0 | 1,566 |
Amortization of intangible assets | 11,434 | 35,473 | 24,646 |
Net foreign exchange losses (gains) | 86,760 | (119,151) | 108,244 |
Total expenses | 6,902,106 | 5,695,761 | 5,486,109 |
Income (loss) before taxes and interest in earnings of equity method investments | 973,641 | (105,535) | 188,676 |
Income tax expense (benefit) | 52,536 | (8,934) | 10,358 |
Interest in earnings of equity method investments | 15,643 | 10,607 | 85,703 |
Net income (loss) | 936,748 | (85,994) | 264,021 |
Preferred dividends | 46,416 | 46,416 | 46,416 |
Net income (loss) attributable to common shareholder | 890,332 | (132,410) | 217,605 |
Comprehensive income (loss) | |||
Net income (loss) | 936,748 | (85,994) | 264,021 |
Change in currency translation adjustment | 71,796 | (74,797) | (15,135) |
Change in unfunded pension obligation, net of tax | (6,803) | 24,859 | (274) |
Change in fair value of designated cash flow hedges, net of reclassification adjustment | (1,877) | 1,877 | 0 |
Change in unrealized gains or losses on investments, net of tax | (407) | (292) | (303) |
Other comprehensive income (loss) | 62,709 | (48,353) | (15,712) |
Comprehensive income (loss) | $ 999,457 | $ (134,347) | $ 248,309 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common shares | Preferred shares | Additional paid-in capital | Accumulated other comprehensive loss | Currency translation adjustment | Unfunded pension obligation | Unrealized gain on investments | Retained earnings |
Balance at beginning of year at Dec. 31, 2016 | $ 0 | $ 28,169 | $ 2,396,530 | $ (74,569) | $ (41,768) | $ (33,770) | $ 969 | $ 4,337,782 | |
Change in currency translation adjustment | $ (15,135) | (15,135) | |||||||
Change in unfunded pension obligation, net of tax | (274) | (274) | |||||||
Change in fair value of designated cash flow hedges, net of reclassification adjustment | 0 | 0 | |||||||
Change in unrealized gains or losses on investments, net of tax | (303) | (303) | |||||||
Net income (loss) | 264,021 | 264,021 | |||||||
Dividends on common shares | (144,693) | ||||||||
Dividends on preferred shares | (46,416) | (46,416) | |||||||
Balance at end of year at Dec. 31, 2017 | 6,745,112 | 0 | 28,169 | 2,396,530 | (90,281) | (56,903) | (34,044) | 666 | 4,410,694 |
Change in currency translation adjustment | (74,797) | (74,797) | |||||||
Change in unfunded pension obligation, net of tax | 24,859 | 24,859 | |||||||
Change in fair value of designated cash flow hedges, net of reclassification adjustment | 1,877 | 1,877 | |||||||
Change in unrealized gains or losses on investments, net of tax | (292) | (292) | |||||||
Net income (loss) | (85,994) | (85,994) | |||||||
Dividends on common shares | (47,835) | ||||||||
Dividends on preferred shares | (46,416) | (46,416) | |||||||
Balance at end of year at Dec. 31, 2018 | 6,516,514 | 0 | 28,169 | 2,396,530 | (138,634) | (131,700) | (9,185) | 2,251 | 4,230,449 |
Change in currency translation adjustment | 71,796 | 71,796 | |||||||
Change in unfunded pension obligation, net of tax | (6,803) | (6,803) | |||||||
Change in fair value of designated cash flow hedges, net of reclassification adjustment | (1,877) | (1,877) | |||||||
Change in unrealized gains or losses on investments, net of tax | (407) | (407) | |||||||
Net income (loss) | 936,748 | 936,748 | |||||||
Dividends on common shares | (199,386) | ||||||||
Dividends on preferred shares | (46,416) | (46,416) | |||||||
Balance at end of year at Dec. 31, 2019 | $ 7,270,169 | $ 0 | $ 28,169 | $ 2,396,530 | $ (75,925) | $ (59,904) | $ (15,988) | $ (33) | $ 4,921,395 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Unrealized gain on investments | |||
Balance at end of period, tax impact | $ 0 | $ 0 | $ 0 |
Unfunded pension obligation | |||
Balance at end of period, tax impact | $ 4,379 | $ 2,479 | $ 9,744 |
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 income (loss) | $ 936,748 | $ (85,994) | $ 264,021 | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
Amortization of net premium on investments | 14,478 | 52,495 | 69,080 | |
Amortization of intangible assets | 11,434 | 35,473 | 24,646 | |
Net realized and unrealized investment (gains) losses | (886,670) | 389,632 | (232,491) | |
Loss on redemption of debt | 15,175 | 0 | 1,566 | |
Changes in: | ||||
Reinsurance balances, net | (397,563) | (427,220) | (84,767) | |
Reinsurance recoverable on paid and unpaid losses, net of ceded premiums payable | 112,223 | (98,086) | (481,173) | |
Funds held by reinsured companies and funds held–directly managed | 56,890 | (23,483) | 47,383 | |
Deferred acquisition costs | (128,426) | (98,475) | (34,822) | |
Net tax assets and liabilities | 17,118 | (82,247) | 42,337 | |
Non-life and life and health reserves | 713,281 | 637,652 | 571,907 | |
Unearned premiums, net of prepaid reinsurance premiums | 383,841 | 289,554 | 94,945 | |
Other net changes in operating assets and liabilities | 150,340 | (141,808) | (39,756) | |
Net cash provided by operating activities | 998,869 | 447,493 | 242,876 | |
Cash flows from investing activities | ||||
Sales of short-term investments | 1,914,640 | 224,411 | 119,504 | |
Redemptions of short-term investments | 724,033 | 23,432 | 50,051 | |
Purchases of short-term investments | (3,142,818) | (733,431) | (143,859) | |
Sales and redemptions of other invested assets | 330,227 | 328,924 | 245,093 | |
Purchases of other invested assets | (2,009,452) | (490,797) | (239,335) | |
Consideration paid to acquire Aurigen, net of cash acquired | 0 | 0 | (233,233) | |
Other, net | (94,263) | (5,357) | (71,511) | |
Net cash (used in) provided by investing activities | (117,994) | (1,260,911) | 98,821 | |
Cash flows from financing activities | ||||
Dividends paid to common and preferred shareholders | (245,802) | (94,251) | (191,109) | |
Issuance of unrestricted Class B common shares (1) | [1] | 1,159 | 0 | 11,000 |
Redemption of Class B common shares | [1] | (6,540) | 0 | 0 |
Issuance of senior notes | 496,012 | 0 | 0 | |
Redemption of debt | (512,697) | 0 | (207,130) | |
Net cash used in financing activities | (267,868) | (94,251) | (387,239) | |
Effect of foreign exchange rate changes on cash | (6,451) | 13,564 | 44,226 | |
Increase (decrease) in cash and cash equivalents | 606,556 | (894,105) | (1,316) | |
Cash and cash equivalents—beginning of year | 877,907 | 1,772,012 | 1,773,328 | |
Cash and cash equivalents—end of year | 1,484,463 | 877,907 | 1,772,012 | |
Supplemental cash flow information: | ||||
Taxes paid | 85,047 | 139,543 | 66,228 | |
Interest paid | 38,650 | 41,551 | 40,989 | |
Fixed maturities | ||||
Sales of trading securities | 16,502,655 | 14,665,938 | 12,524,296 | |
Redemptions of fixed maturities | 738,478 | 494,148 | 572,638 | |
Purchases of trading securities | (14,918,698) | (15,638,777) | (12,465,127) | |
Equities | ||||
Sales of trading securities | 133,891 | 89,349 | 16,232 | |
Purchases of trading securities | $ (296,687) | $ (218,751) | $ (275,928) | |
[1] | Class B shares are recorded as a liability on the Company's Consolidated Balance Sheet. See Note 13 for further details. |
Organization
Organization | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization PartnerRe Ltd. provides reinsurance on a worldwide basis through its principal wholly-owned subsidiaries, including Partner Reinsurance Company Ltd. (PartnerRe Bermuda), Partner Reinsurance Europe SE (PartnerRe Europe), Partner Reinsurance Company of the U.S. (PartnerRe U.S.) and Partner Reinsurance Asia Pte. Ltd. (PartnerRe Asia). Non-life risks reinsured include agriculture, aviation/space, casualty, catastrophe, energy, engineering, financial risks, marine, motor, multiline, property and U.S. health. Life and health risks include mortality, morbidity and longevity. R einsurance of alternative risk products include weather and credit protection to financial, industrial and service companies on a worldwide basis. PartnerRe Ltd. and it subsidiaries are collectively referred to hereinafter as PartnerRe or the Company. The Company was incorporated in August 1993 under the laws of Bermuda. The Company commenced operations in November 1993 upon completion of the sale of common shares and warrants pursuant to subscription agreements and an initial public offering. The Company completed the acquisition of Societe Anonyme Francaise de Reassurances (SAFR, subsequently renamed PartnerRe SA and reinsurance business transferred into PartnerRe Europe) in 1997, the acquisition of Winterthur Re in 1998, the acquisition of PARIS RE Holdings Limited (Paris Re) in 2009, the acquisition of Presidio Reinsurance Group, Inc. (Presidio) in 2012 and the acquisition of Aurigen Capital Limited (Aurigen) in April 2017 . On March 18, 2016, the Company's publicly held common shares were acquired by Exor N.V. (subsequently renamed to EXOR Nederland N.V), whose ultimate parent is EXOR N.V. (Exor), one of Europe’s leading investment companies controlled by the Agnelli family, which is listed on the Milan Stock Exchange. As a result of the acquisition, PartnerRe's publicly issued common shares were cancelled and are no longer publicly traded. The Company’s preferred shares continue to be traded on the New York Stock Exchange (NYSE). At December 31, 2019 and 2018 , the Company's 100 million common shares (Class A shares) issued to EXOR Nederland N.V. are included in Shareholders' Equity in the Consolidated Balance Sheets (see Note 10 ). At December 31, 2019 and 2018 , the Company also had 281,768 and 345,644 , respectively, of Class B common shares (Class B shares) issued to certain executives and directors of the Company which are recognized in Accounts payable, accrued expenses and other in the Consolidated Balance Sheets (see Note 13 ). The percentage of total common shares owned by EXOR Nederland N.V. at December 31, 2019 and 2018 was approximately 99.7% . |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies The Company’s Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP). The Consolidated Financial Statements include the accounts of the Company and its subsidiaries. Intercompany accounts and transactions have been eliminated. Certain reclassifications have been made to prior period amounts to conform to the current year presentation. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. While management believes that the amounts included in the Consolidated Financial Statements reflect its best estimates and assumptions, actual results could differ from those estimates. The Company’s principal estimates include: • Non-life reserves; • Life and health reserves; • Reinsurance recoverable for unpaid losses; • Gross and net premiums written and net premiums earned; • Recoverability of deferred acquisition costs; • Recoverability of deferred tax assets; • Valuation of certain investments that are measured using significant unobservable inputs; and • Valuation of goodwill and intangible assets. The following are the Company’s significant accounting policies: (a) Premiums Gross premiums written and earned are based upon reports received from ceding companies, supplemented by the Company’s own estimates of premiums written and earned for which ceding company reports have not been received. The determination of premium estimates requires a review of the Company’s experience with cedants, familiarity with each market, an understanding of the characteristics of each line of business and management’s assessment of the impact of various other factors on the volume of business written and ceded to the Company. Premium estimates are updated as new information is received from cedants and differences between such estimates and actual amounts are recorded in the period in which the estimates are changed or the actual amounts are determined. Net premiums written and earned are presented net of ceded premiums. Premiums related to non-life business are earned on a basis that is consistent with the risks covered under the terms of the reinsurance contracts, which is generally one to two years. Reinstatement premiums are recognized as written and earned at the time a loss event occurs, where coverage limits for the remaining life of the contract are reinstated under pre-defined contract terms. The accrual of reinstatement premiums is based on management’s estimate of losses and loss expenses associated with the loss event. Unearned premiums represent the portion of premiums written which is applicable to the unexpired risks under contracts in force. Premiums related to life and annuity business are recorded over the premium-paying period on the underlying policies. Premiums on contracts for which there is no significant mortality or critical illness risk are accounted for in a manner consistent with accounting for interest-bearing financial instruments and are not reported as revenues, but rather as direct deposits to the contract. Amounts assessed against annuity and universal life policyholders are recognized as revenue in the period assessed. (b) Losses and Loss Expenses The reserves for non-life business include amounts determined from loss reports on individual treaties (case reserves), additional case reserves when the Company’s loss estimate is higher than reported by the cedants (ACRs) and amounts for losses incurred but not yet reported to the Company (IBNR). Such reserves are estimated by management based upon reports received from ceding companies, supplemented by the Company’s own actuarial estimates of reserves for which ceding company reports have not been received, and based on the Company’s own historical experience. To the extent that the Company’s own historical experience is inadequate for estimating reserves, such estimates may be determined based upon industry experience and management’s judgment. The estimates are regularly reviewed and the ultimate liability may be materially in excess of, or less than, the amounts provided. Any adjustments are reflected in the periods in which they are determined, which may affect the Company’s operating results in future periods. See Note 7(a) for further details. The life and health reserves have been established based upon information reported by ceding companies, supplemented by the Company’s actuarial estimates, which for life include mortality, morbidity, critical illness, persistency and future investment income, with appropriate provision to reflect uncertainty. For traditional and limited payment long-duration contracts, the assumptions are locked in at contract inception and are subject to annual loss recognition testing. Future policy benefit reserves for annuity and universal life contracts are carried at their accumulated values. Reserves for policy claims and benefits include both mortality, morbidity and critical illness claims in the process of settlement, and claims that have been incurred but not yet reported. See Note 7(b) for further details. (c) Deferred Acquisition Costs Acquisition costs, comprising primarily incremental brokerage fees, commissions and excise taxes, which vary directly with, and are related to, the acquisition of reinsurance contracts, are capitalized and charged to expense as the related premium is earned. All other acquisition related costs, including indirect costs, are expensed as incurred. Acquisition costs are shown net of commissions earned on ceded reinsurance. Acquisition costs related to individual life and annuity contracts are deferred and amortized over the premium-paying periods in proportion to anticipated premium income, allowing for lapses, terminations and anticipated investment income. Acquisition costs related to universal life and single premium annuity contracts for which there is no significant mortality or critical illness risk are deferred and amortized over the lives of the contracts as a percentage of the estimated gross profits expected to be realized on the contracts. The Company establishes a premium deficiency reserve to the extent the deferred acquisition costs are insufficient to cover the excess of expected losses and loss expenses, settlement costs and deferred acquisition costs over the related unearned premiums. Actual and anticipated losses and loss expenses, other costs, and investment income related to underlying premiums are considered in determining the recoverability of deferred acquisition costs for the Company’s short-duration contracts. Actual and anticipated loss experience, together with the present value of future gross premiums, the present value of future benefits, and settlement and maintenance costs are considered in determining the recoverability of deferred acquisition costs related to the Company’s life and annuity business. (d) Reinsurance The Company purchases retrocessional contracts to reduce its exposure to risk of losses on reinsurance assumed. Ceded premiums, which represent the cost of retrocessional protection purchased by the Company, are expensed over the coverage period. Prepaid reinsurance premiums represent the portion of premiums ceded applicable to the unexpired term of policies in force. Reinsurance recoverable on paid and unpaid losses involves actuarial estimates consistent with those used to establish the associated liabilities for non-life and life and health reserves and are recorded net of a valuation allowance for estimated uncollectible recoveries. Retroactive reinsurance reimburses a ceding company for liabilities incurred as a result of past insurable events covered under contracts subject to the reinsurance. Premiums payable for retroactive reinsurance coverage meeting the conditions of reinsurance accounting are reported as reinsurance recoverables to the extent that those amounts do not exceed recorded liabilities relating to underlying reinsurance contracts. To the extent that recorded liabilities on an underlying reinsurance contract exceed premiums payable for retroactive coverage, a deferred gain is recognized in the Company's Consolidated Balance Sheets. (e) Funds Held by Reinsured Companies The Company writes certain business on a funds held basis. Under such contractual arrangements, the cedant retains the premiums that would have otherwise been paid to the Company and the Company is credited with investment income on these funds. The Company generally earns investment income on the funds held balances based upon a predetermined interest rate, either fixed contractually at the inception of the contract or based upon a recognized index (e.g. LIBOR). However, in certain circumstances, the Company may receive an investment return based upon either the result of a pool of assets held by the cedant, generally used to collateralize the funds held balance, or the investment return earned by the cedant on its entire investment portfolio. In these arrangements, gross investment returns are typically reflected in net investment income in the Company’s Consolidated Statements of Operations. In these arrangements, the Company is exposed, to a limited extent, to the underlying credit risk of the pool of assets inasmuch as the underlying policies may have guaranteed minimum returns. In such cases, an embedded derivative exists and its fair value is recorded by the Company as an increase or decrease to the funds held balance. (f) Deposit Assets and Liabilities In the normal course of its operations, the Company writes certain contracts that do not meet the risk transfer provisions of U.S. GAAP. While these contracts do not meet risk transfer provisions for accounting purposes, there is a remote possibility that the Company will suffer a loss. The Company accounts for these contracts using the deposit accounting method originally recording deposit assets or liabilities for an amount equivalent to the consideration paid or received, respectively. The difference between the consideration received and the estimated liability for unpaid losses is determined upon entering into the contract and, if a loss, recognized into income immediately, and if a gain, the gain is deferred and earned over the expected settlement period of the contract, with the unearned portion recorded as a component of deposit liabilities. Actuarial studies are used to estimate the liabilities under these contracts and the appropriate accretion rates to increase or decrease the liabilities over the term of the contracts. The change in the estimated liability for the period is recorded in Other income or loss in the Consolidated Statements of Operations. Under some of these contracts, cedants retain the assets on a funds-held basis. In those cases, the Company records those assets as deposit assets and records the related income in Net investment income in the Consolidated Statements of Operations. Also included in Deposit assets are receivables included as an element of certain life reinsurance agreements that do not meet risk transfer. (g) Investments The Company elects the fair value option for Fixed maturities and Equities with changes in fair value recorded in Net realized and unrealized investment gains or losses in the Consolidated Statements of Operations. Short-term investments, which comprise securities with a maturity greater than three months but less than one year from the date of purchase, are recorded at fair value by electing either the fair value option with changes in fair value recorded in Net realized and unrealized gains or losses included in the Consolidated Statements of Operations, or by designating as available-for-sale with changes in fair value recorded in Other comprehensive income or loss. Investments in real estate are recorded at cost less any write down for impairment, where applicable. Real estate assets held for investment are reviewed for impairment at least annually, or more frequently when events or changes in circumstances indicate the carrying value may not be recoverable and exceeds its estimated fair value. The Company recognizes Other invested assets at fair value, except for those that are accounted for using the equity method of accounting. Other invested assets consist of equity investments in non-publicly traded companies; privately placed corporate loans, notes and loans receivable and notes securitization; and derivative financial instruments. Non-publicly traded entities in which the Company has significant influence, including an ownership of more than 20% and less than 50% of the voting rights, and limited partnerships in which the Company has more than a minor interest (typically more than 3 to 5%), are accounted for using either the equity method or the fair value option. Where the equity method is used, the Company's share of profits or losses of the investee are recorded in Interest in earnings or losses of equity method investees in the Consolidated Statements of Operations. Where the fair value option is elected, the investment is recognized in the Consolidated Balance Sheets at fair value with changes in fair value recorded in Net realized and unrealized investment gains or losses in the Consolidated Statements of Operations. See Note 2 (n) below for significant accounting policy for derivatives. Net investment income includes interest and dividend income, amortization of premiums and discounts on fixed maturities and short-term investments, and is net of investment expenses and withholding taxes. Investment income is recognized when earned and accrued to the balance sheet date. Realized gains or losses on the disposal of investments are determined on a first-in, first-out basis. Investment purchases and sales are recorded on a trade-date basis. The Company defines fair value as the price received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company measures the fair value of financial instruments according to a fair value hierarchy that prioritizes the information used to measure fair value into three broad levels. The Company’s policy is to recognize transfers between the hierarchy levels at the beginning of the period. Refer to Note 3 for the valuation techniques used by the Company (h) Cash and Cash Equivalents Cash equivalents are carried at fair value and include fixed income securities that, from the date of purchase, have a maturity of three months or less. (i) Business Combinations The Company accounts for transactions in which it obtains control over one or more businesses using the acquisition method. The purchase price is allocated to identifiable assets and liabilities, including any intangible assets, based on their estimated fair value at the acquisition date. The estimates of fair values for assets and liabilities acquired are determined based on various market and income analyses and appraisals. Any excess of the purchase price over the fair value of net assets acquired is recorded as goodwill in the Company’s Consolidated Balance Sheets, while any excess of the fair value of net assets acquired over the purchase price is recorded as a gain in the Consolidated Statements of Operations. All costs associated with an acquisition are expensed as incurred. (j) Goodwill Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in a business combination. The Company assesses the appropriateness of its valuation of goodwill on an annual basis (as of December 31) or more frequently if events or changes in circumstances indicate that the carrying amount may not be recoverable. If, as a result of the assessment, the Company determines that the value of its goodwill is impaired, goodwill will be written down in the period in which the determination is made. (k) Intangible Assets Intangible assets represent the fair value adjustments related to renewal rights, and customer relationships; value of life business acquired; and U.S. licenses arising from acquisitions. Definite-lived intangible assets are amortized over their useful lives and the amortization expense is recorded in the Consolidated Statement of Operations. Indefinite-lived intangible assets are not subject to amortization. The carrying values of indefinite-lived intangible assets are reviewed for indicators of impairment on an annual basis (as of December 31) or more frequently if events or changes in circumstances indicate that impairment may exist. Impairment is recognized if the carrying values of the intangible assets are not recoverable from their undiscounted cash flows and is measured as the difference between the carrying value and the fair value. (l) Income Taxes Certain subsidiaries and branches of the Company operate in jurisdictions where they are subject to taxation. Current and deferred income taxes are charged or credited to Net income or loss or, in certain cases, to Accumulated other comprehensive income or loss, based upon enacted tax laws and rates applicable in the relevant jurisdiction in the period in which the tax becomes accruable or realizable. Deferred income taxes are provided for all temporary differences between the bases of assets and liabilities used in the Consolidated Balance Sheets and those used in the various jurisdictional tax returns. When management’s assessment indicates that it is more likely than not that deferred tax assets will not be realized, a valuation allowance is recorded against the deferred tax assets. Where appropriate, the valuation allowance assessment considers tax planning strategies. The Company recognizes a tax benefit relating to uncertain tax positions only where the position is more likely than not to be sustained assuming examination by tax authorities. A liability is recognized for any tax benefit (along with any interest and penalty, if applicable) claimed in a tax return in excess of the amount recognized in the financial statements under U.S. GAAP. Any changes in amounts recognized are recorded in the period in which they are determined. (m) Foreign Exchange In recording foreign currency transactions, revenue and expense items in a currency other than the functional currency are converted into the functional currency at the average rates of exchange for the period. Monetary assets and liabilities originating in currencies other than the functional currency are remeasured into the functional currency at the rates of exchange in effect at the balance sheet dates. The resulting foreign exchange transaction gains or losses are included in Net foreign exchange gains or losses in the Consolidated Statements of Operations. The reporting currency of the Company is the U.S. dollar. The national currencies of the Company’s subsidiaries and branches are generally their functional currencies, except for the Company’s Bermuda subsidiaries, its Swiss branch and its Singapore subsidiary and branches, whose functional currency is the U.S. dollar. In translating the financial statements of those subsidiaries or branches whose functional currency is other than the U.S. dollar, assets and liabilities are converted into U.S. dollars using the rates of exchange in effect at the balance sheet dates, and revenues and expenses are converted using the average foreign exchange rates for the period. The effect of translation adjustments are reported in the Consolidated Balance Sheets as Currency translation adjustment, a separate component of Accumulated other comprehensive income or loss. The change in currency translation adjustment is reflected in Other comprehensive income or loss. (n) Derivatives The Company’s investment strategy allows for the use of derivative instruments, subject to strict limitations. The Company may use derivative financial instruments such as foreign exchange forward contracts, foreign currency option contracts, futures contracts, to-be-announced mortgage-backed securities (TBAs), total return swaps, interest rate swaps, insurance-linked securities, and credit default swaps for the purpose of managing overall currency risk, market exposures and portfolio duration, for hedging certain investments, or for enhancing investment performance that would be allowed under the Company’s investment policy if implemented in other ways. On the date the Company enters into a derivative contract, management determines whether or not the derivative is to be used and designated as a hedge of an identified underlying risk exposure (a designated hedge). The Company’s derivative instruments are recorded in Other invested assets in the Consolidated Balance Sheets at fair value, with gains and losses associated with changes in fair value recognized in either Net realized and unrealized investment gains or losses or Net foreign exchange gains or losses in the Consolidated Statements of Operations, or in Other comprehensive income, depending on the nature and designation of the derivative instrument (see also Note 5 ). The Company formally documents all relationships between designated hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking various hedge transactions. In this documentation, the Company specifically identifies the asset or liability that has been designated as a hedged item and states how the hedging instrument is expected to hedge the risks related to the hedged item. The Company formally measures effectiveness of its designated hedging relationships both at the hedge inception and on an ongoing basis. For its derivatives designated as hedges at December 31, 2018, the Company's method for assessing the effectiveness of the designated hedge was a qualitative assessment, as the Company determined that the hedging instrument (the designated foreign currency forward contracts) and the hedged assets (the available-for-sale foreign currency denominated short-term investments) were perfectly aligned as they related to the hedged risk, the foreign currency exchange rate risk exposure. These hedges were settled during 2019, and there were no derivatives designated as hedges at December 31, 2019. The Company will discontinue hedge accounting prospectively if it is determined that the derivative is no longer effective in hedging the exposure to variability in expected future cash flows that is attributable to the risk it was meant to hedge; if the derivative instrument expires, is sold, or is otherwise terminated; or if the Company removes the designation of the hedge. To the extent that the Company discontinues hedge accounting because, based on management’s assessment, the derivative no longer qualifies as an effective hedge, or the Company otherwise de-designates the hedge, the derivative will continue to be carried in the Consolidated Balance Sheet at its fair value, with changes in its fair value recognized in in the Consolidated Statements of Operations, or in Other comprehensive income, depending on the type of derivative held. (o) Pensions The Company recognizes an asset or a liability in the Consolidated Balance Sheets for the funded status of its defined benefit plans that are overfunded or underfunded, respectively, measured as the difference between the fair value of plan assets and the pension obligation and recognizes changes in the funded status of defined benefit plans in the year in which the changes occur as a component of Accumulated other comprehensive income or loss, net of tax. (p) Variable Interest Entities The Company is involved in the normal course of business with variable interest entities (VIEs). An assessment is performed as of the date the Company becomes initially involved in the VIE followed by a reassessment upon certain events related to its involvement in the VIE. The Company consolidates a VIE when it is the primary beneficiary having a controlling financial interest as a result of having the power to direct the activities that most significantly impact the economic performance of the VIE and the obligation to absorb losses, or right to receive benefits, that could potentially be significant to the VIE. (q) Segment Reporting The Company monitors the performance of its operations in three segments: Property & Casualty (P&C), Specialty and Life and Health. Segments represent markets that are reasonably homogeneous in terms of client types, buying patterns, underlying risk patterns or approach to risk management. Since the Company does not manage its assets by segment, neither assets nor net investment income are allocated to the P&C and Specialty segments. However, because of the interest-sensitive nature of some of the Company’s life products, allocated net investment income is considered in management’s assessment of the profitability of the Life and Health segment. The following items are not considered in evaluating the results of the P&C, Specialty and Life and Health segments: Net realized and unrealized investment gains or losses, Interest expense, Loss on redemption of debt, Amortization of intangible assets, Net foreign exchange gains or losses, Income tax expense or benefit and Interest in earnings and losses of equity method investments. These items are included in the Corporate and Other component, which is comprised of the Company’s investment and corporate activities, including other expenses. (r) Share-Based Incentives The Company is authorized to issue restricted Class B shares to certain executives and directors. The compensation cost for restricted shares is measured at fair value and expensed over the period for which the employee is required to provide services in exchange for the award, up to three years from the date of grant. The Company has elected to recognize forfeitures as they occur. Unrestricted Class B shares can be sold back to the Company at the option of the shareholder. Class B shares are accounted for as liabilities, included in Accounts payable, accrued expenses and other on the Consolidated Balance Sheets. (s) Recent Accounting Pronouncements Adopted during 2019 In February 2016, the Financial Accounting Standards Board (FASB) issued updated guidance on the accounting for leases. The guidance requires, among other items, lessees to recognize right-of-use assets and lease liabilities on the balance sheet, and expands required disclosures. The guidance does not significantly change the lessees’ recognition, measurement and presentation of expenses and cash flows for operating leases. The guidance was effective for the year ended December 31, 2019. The Company adopted the guidance using the modified retrospective transition method, and as a result, the Company’s reporting for comparative periods including related disclosures prior to adoption continue to be presented in the Consolidated Financial Statements in accordance with the previous lease accounting guidance. The Company elected the "package of practical expedients" permitted under the guidance and also elected the hindsight practical expedient in determining the lease term for the Company's existing leases at transition. The adoption of this standard resulted in the recognition of operating lease right-of-use assets of $76 million included in Other assets and lease liabilities of $86 million included in Accounts payable, accrued expenses and other on the Consolidated Balance Sheet as of December 31, 2019. The reduction of the right-of-use asset relates primarily to deferred rent that was recorded under the previous guidance. The Company determined it was not required to record a cumulative effect adjustment to opening retained earnings as of January 1, 2019. See Note 15 (b) for further details. Not yet adopted In January and April 2017, the FASB issued updated guidance on the accounting for goodwill impairment. This update removes the second step of the goodwill impairment test and requires entities to apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit's carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The new guidance does not amend the optional qualitative assessment of goodwill impairment. The guidance is effective for annual impairment tests in fiscal years beginning after December 15, 2019, with early adoption permitted. The Company does not expect the adoption of this guidance to have a significant impact on its Consolidated Financial Statements and disclosures. In June 2016, the FASB issued updated guidance on the recognition of credit losses by replacing the incurred loss impairment methodology with new accounting models related to how credit losses on financial instruments are determined. The new guidance is applicable to financial assets measured at amortized cost such as loans, reinsurance receivables, trade receivables, debt securities, off-balance sheet credit exposures, and other financial assets that have a contractual right to receive cash. The Company's investments, except for certain Other invested assets that are accounted for using the equity method of accounting and Investments in real estate, are measured at fair value through net income, and therefore those investments would not be impacted by the adoption of this guidance. The guidance is effective for annual periods beginning after December 15, 2019, with early adoption permitted. The Company is currently evaluating the impact of this guidance and does not expect the adoption to have a material impact on its Consolidated Financial Statements and disclosures required to be adopted for the year ended December 31, 2020. In August 2018, the FASB issued updated guidance to the disclosure requirements for fair value measurement as part of the disclosure framework project. The updated guidance allows for the removal and modification of certain disclosures to improve the effectiveness of disclosures in the notes to financial statements. This guidance is effective for fiscal years beginning after December 15, 2019. The Company is currently evaluating the impact of this guidance on its Consolidated Financial Statements and disclosures required to be adopted for the year ended December 31, 2020. In August 2018, the FASB issued updated guidance to improve financial reporting for insurance companies that issue long-duration contracts such as life insurance and annuities. The objective of the new guidance is to improve, simplify, and enhance the financial reporting of long-duration contracts by providing financial statement users with useful information in a timely and transparent manner. This guidance is effective for annual periods beginning after December 15, 2021. The Company is currently evaluating the impact of this guidance on its Consolidated Financial Statements and disclosures required to be adopted for the year ended December 31, 2022. This guidance could have a material impact on the measurement recognition of long duration contracts and will result in additional disclosures once adopted. In August 2018, the FASB issued updated guidance to the disclosure requirements for defined benefit plans as part of the disclosure framework project. The updated guidance allows for the removal and modification of certain disclosures to improve the effectiveness of disclosures in the notes to financial statements. This guidance is effective for fiscal years beginning after December 15, 2020. The Company is currently evaluating the impact of this guidance on its disclosures required to be adopted for the year ended December 31, 2021. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value (a) Fair Value of Financial Instrument Assets The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value by maximizing the use of observable inputs and minimizing the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing an asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about what market participants would use in pricing the asset or liability based on the best information available in the circumstances. The level in the hierarchy within which a given fair value measurement falls is determined based on the lowest level input that is significant to the measurement. The Company determines the appropriate level in the hierarchy for each financial instrument that it measures at fair value. In determining fair value, the Company uses various valuation approaches, including market, income and cost approaches. The hierarchy is broken down into three levels based on the observability of inputs as follows: • Level 1 inputs—Unadjusted, quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. The Company’s financial instruments that it measures at fair value using Level 1 inputs generally include equities listed on a major exchange . • Level 2 inputs—Quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in inactive markets and significant directly or indirectly observable inputs, other than quoted prices, used in industry accepted models. The Company’s financial instruments that it measures at fair value using Level 2 inputs generally include: U.S. government issued bonds; U.S. government sponsored enterprises bonds; certain U.S. state, territory and municipal entities bonds; non-U.S. sovereign government, supranational and government related bonds; investment grade and high yield corporate bonds; asset-backed securities; mortgage-backed securities; short-term investments; certain common and preferred equities; foreign exchange forward contracts; foreign currency option contracts; and interest rate swaps .. • Level 3 inputs—Unobservable inputs. The Company’s financial instruments that it measures at fair value using Level 3 inputs generally include: inactively traded fixed maturities including U.S. state, territory and municipal bonds; special purpose financing asset-backed bonds; unlisted or private equities; certain other mutual fund equities; privately placed corporate loans, notes and loans receivable and notes securitizations included in Other invested assets; and certain other derivatives, including weather derivatives, longevity insurance-linked securities and total return swaps included in Other invested assets. At December 31, 2019 and 2018 , the Company’s financial instruments measured at fair value were classified between Levels 1, 2 and 3 as follows (in thousands of U.S. dollars): December 31, 2019 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Total Fixed maturities U.S. government and government sponsored enterprises $ — $ 1,421,716 $ — $ 1,421,716 U.S. states, territories and municipalities — 13,807 143,427 157,234 Non-U.S. sovereign government, supranational and government related — 3,255,154 — 3,255,154 Corporate bonds — 2,643,402 18,687 2,662,089 Asset-backed securities — — 18,228 18,228 Residential mortgage-backed securities — 3,166,290 — 3,166,290 Other mortgage-backed securities — 3 — 3 Fixed maturities $ — $ 10,500,372 $ 180,342 $ 10,680,714 Short-term investments $ — $ 1,003,421 $ — $ 1,003,421 Equities Finance $ 31,315 $ 2 $ 126 $ 31,443 Consumer cyclical 20,117 — — 20,117 Insurance 5,284 273 9,403 14,960 Consumer noncyclical 13,126 — — 13,126 Basic materials 5,295 — — 5,295 Industrials 4,042 — — 4,042 Technology 3,027 — — 3,027 Real estate — — 2,385 2,385 Communications 922 — — 922 Mutual funds — — 1,199,847 1,199,847 Equities $ 83,128 $ 275 $ 1,211,761 $ 1,295,164 Other invested assets Derivative assets Foreign exchange forward contracts $ — $ 4,363 $ — $ 4,363 Total return swaps — — 1,448 1,448 Insurance-linked securities — — 2,728 2,728 Foreign currency option contracts — 266 — 266 Other Corporate loans (1) — — 1,879,105 1,879,105 Notes and loans receivable and notes securitization — — 3,085 3,085 Private equities — — 533,744 533,744 Derivative liabilities Foreign exchange forward contracts — (5,643 ) — (5,643 ) Total return swaps — — (2,962 ) (2,962 ) Interest rate swaps — (12,378 ) — (12,378 ) Insurance-linked securities — — (3,871 ) (3,871 ) Other invested assets $ — $ (13,392 ) $ 2,413,277 $ 2,399,885 Total $ 83,128 $ 11,490,676 $ 3,805,380 $ 15,379,184 (1) Corporate loans includes a portfolio of third-party, individually managed privately issued corporate loans that are managed under an externally managed mandate with a fair value of $1.4 billion and $0.4 billion at December 31, 2019 and 2018, respectively. The mandate primarily invests in U.S. floating rate, first lien, senior secured broadly syndicated loans with a focus on facility sizes greater than $300 million . Corporate loans also includes $0.5 billion of other privately issued corporate loans at December 31, 2019. December 31, 2018 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Total Fixed maturities U.S. government and government sponsored enterprises $ — $ 2,345,008 $ — $ 2,345,008 U.S. states, territories and municipalities — 13,695 120,898 134,593 Non-U.S. sovereign government, supranational and government related — 2,158,642 — 2,158,642 Corporate bonds — 5,590,208 21,470 5,611,678 Asset-backed securities — 41,087 17,596 58,683 Residential mortgage-backed securities — 2,331,230 — 2,331,230 Other mortgage-backed securities — 11 — 11 Fixed maturities $ — $ 12,479,881 $ 159,964 $ 12,639,845 Short-term investments (1) $ — $ 493,726 $ — $ 493,726 Equities Finance $ 11,307 $ 1 $ 13,710 $ 25,018 Technology 5,492 — 12,256 17,748 Consumer noncyclical 13,334 — — 13,334 Consumer cyclical 6,435 — — 6,435 Industrials 4,797 — — 4,797 Insurance 1,771 1,189 — 2,960 Communications 1,451 — — 1,451 Other 799 — — 799 Mutual funds — — 621,759 621,759 Equities $ 45,386 $ 1,190 $ 647,725 $ 694,301 Other invested assets Derivative assets Foreign exchange forward contracts $ — $ 17,820 $ — $ 17,820 Insurance-linked securities — — 2,824 2,824 Total return swaps — — 1,697 1,697 Interest rate swaps — 10 — 10 Other Corporate loans — — 401,702 401,702 Notes and loans receivable and notes securitization — — 6,507 6,507 Private equities — — 372,710 372,710 Derivative liabilities Foreign exchange forward contracts — (3,673 ) — (3,673 ) Total return swaps — — (3,232 ) (3,232 ) Interest rate swaps — (9,194 ) — (9,194 ) Insurance-linked securities — — (2,568 ) (2,568 ) Other invested assets $ — $ 4,963 $ 779,640 $ 784,603 Total $ 45,386 $ 12,979,760 $ 1,587,329 $ 14,612,475 (1) Short-term investments includes $229 million of available-for-sale securities with readily determinable fair values. These securities were purchased in 2018 and are recorded at fair value, which approximated amortized cost given the short term to maturity of approximately three to four months, and matured during 2019. At December 31, 2019 and 2018 , the aggregate carrying amounts of items included in Other invested assets that the Company did not measure at fair value were $866 million and $704 million , respectively, which related to the Company’s investments that are accounted for using the equity method of accounting. Refer to Note 4 (f) for further information on the Company's equity method investment in Almacantar Group S.A. (Almacantar). At December 31, 2019 and 2018 , the carrying value of accrued investment income approximated fair value due to its short-term nature. During the year ended December 31, 2019 , an equity security issued by a financial services company valued at $14 million was transferred from Level 3 to Level 1 due to the availability of quoted prices in active markets. During the year ended December 31, 2018 , a corporate longevity bond valued at $25 million was transferred from Level 2 to Level 3 due to the lack of multiple independent pricing services. Transfers into Level 3 during 2018 also included four private equity securities valued at $31 million that were previously held at cost and were measured to fair value upon adoption of new accounting guidance. During the years ended December 31, 2019 and 2018 , there were no transfers between Level 1 and Level 2. Disclosures about the fair value of financial instruments that the Company does not measure at fair value exclude insurance contracts and certain other financial instruments. At December 31, 2019 and 2018 , the fair values of financial instrument assets recorded in the Consolidated Balance Sheets not described above approximate their carrying values. The reconciliations of the beginning and ending balances for financial instruments measured at fair value using Level 3 inputs for the years ended December 31, 2019 and 2018 , were as follows (in thousands of U.S. dollars): For the year ended December 31, 2019 Balance at beginning of year Realized and unrealized investment gains (losses) included in net income Purchases Settlements and (1) Net transfers (out of) into Level 3 Balance at end of year Change in relating to Fixed maturities U.S. states, territories and municipalities $ 120,898 $ 12,959 $ 10,455 $ (885 ) $ — $ 143,427 $ 12,951 Asset-backed securities 17,596 1,274 — (642 ) — 18,228 1,274 Corporate 21,470 157 — (2,940 ) — 18,687 157 Fixed maturities $ 159,964 $ 14,390 $ 10,455 $ (4,467 ) $ — $ 180,342 $ 14,382 Equities Finance $ 13,710 $ 100 $ — $ — $ (13,684 ) $ 126 $ (3 ) Technology 12,256 (1,538 ) — (10,718 ) — — — Mutual funds 621,759 388,024 206,685 (16,621 ) — 1,199,847 385,317 Insurance — 7,514 1,889 — — 9,403 7,514 Real estate — — 2,385 — — 2,385 — Equities $ 647,725 $ 394,100 $ 210,959 $ (27,339 ) $ (13,684 ) $ 1,211,761 $ 392,828 Other invested assets Derivatives, net $ (1,279 ) $ 115 $ (2,000 ) $ 507 $ — $ (2,657 ) $ (111 ) Corporate loans 401,702 9,237 1,828,802 (360,636 ) — 1,879,105 9,940 Notes and loan receivables and notes securitization 6,507 (717 ) — (2,705 ) — 3,085 139 Private equities 372,710 49,759 132,256 (20,981 ) — 533,744 37,159 Other invested assets $ 779,640 $ 58,394 $ 1,959,058 $ (383,815 ) $ — $ 2,413,277 $ 47,127 Total $ 1,587,329 $ 466,884 $ 2,180,472 $ (415,621 ) $ (13,684 ) $ 3,805,380 $ 454,337 (1) Settlements and sales of Equities and Other invested assets included sales of $ 27 million and $289 million , respectively. Sales of Other invested assets of $ 289 million included sales of corporate loans of $ 270 million , notes and loan receivables and notes securitization of $ 2 million , and private equities of $ 17 million . For the year ended December 31, 2018 Balance at beginning of year Realized and unrealized investment (losses) gains included in net income Purchases Settlements and (1) Net transfers into (out of) Level 3 Balance at end of year Change in relating to Fixed maturities U.S. states, territories and municipalities $ 128,806 $ (4,417 ) $ — $ (3,491 ) $ — $ 120,898 $ (4,320 ) Asset-backed securities 20,738 (2,552 ) — (590 ) — 17,596 (2,552 ) Corporate — (139 ) — (3,745 ) 25,354 21,470 (139 ) Fixed maturities $ 149,544 $ (7,108 ) $ — $ (7,826 ) $ 25,354 $ 159,964 $ (7,011 ) Equities Finance $ 21,926 $ 5,065 $ — $ (13,281 ) $ — $ 13,710 $ (3,544 ) Technology 10,961 1,295 — — — 12,256 1,295 Mutual funds 558,736 10,996 55,027 (3,000 ) — 621,759 10,996 Equities $ 591,623 $ 17,356 $ 55,027 $ (16,281 ) $ — $ 647,725 $ 8,747 Other invested assets Derivatives, net $ 11,221 $ 5,038 $ (1,623 ) $ (15,915 ) $ — $ (1,279 ) $ 372 Corporate loans 205,331 (21,522 ) 367,975 (150,082 ) — 401,702 (20,823 ) Notes and loan receivables and notes securitization 108,563 (4,054 ) — (98,002 ) — 6,507 (3,884 ) Private equities 331,932 (12,422 ) 55,114 (32,994 ) 31,080 372,710 (15,048 ) Other invested assets $ 657,047 $ (32,960 ) $ 421,466 $ (296,993 ) $ 31,080 $ 779,640 $ (39,383 ) Funds held–directly managed $ 2,067 $ 238 $ 268 $ (2,573 ) $ — $ — $ — Total $ 1,400,281 $ (22,474 ) $ 476,761 $ (323,673 ) $ 56,434 $ 1,587,329 $ (37,647 ) (1) Settlements and sales of Equities, Other invested assets, and Funds held–directly managed included sales of $16 million , $248 million and $3 million , respectively. Sales of Other invested assets of $248 million included sales of derivatives of $16 million , corporate loans of $107 million , notes and loan receivables and notes securitization of $96 million , and private equities of $29 million . The significant unobservable inputs used in the valuation of financial instruments measured at fair value using Level 3 inputs at December 31, 2019 and 2018 were as follows (fair value in thousands of U.S. dollars): December 31, 2019 Fair value Valuation techniques Unobservable inputs Range (Weighted average) Fixed maturities U.S. states, territories and municipalities $ 143,427 Discounted cash flow Credit spreads -0.1% – 9.6% (3.5%) Asset backed securities 18,228 Discounted cash flow Credit spreads 4.7% (4.7%) Equities Insurance 9,403 Weighted market comparables Revenue multiple 2.6x (2.6x) Adjusted earnings multiple 7.7x (7.7x) Liquidity discount 30.0% (30.0%) Other invested assets Total return swaps, net (1,514 ) Discounted cash flow Credit spreads 2.3% – 24.0% (16.9%) Insurance-linked securities – longevity swaps 2,728 Discounted cash flow Credit spreads 1.9% (1.9%) Insurance-linked securities – pandemic swaps (1,871 ) Discounted cash flow Credit spreads 56.2% (56.2%) Notes and loans receivables 2,153 Discounted cash flow Credit spreads 17.5% (17.5%) Gross revenue/fair value ratios 1.1 (1.1) Note securitization 932 Discounted cash flow Credit spreads 1.2% (1.2%) Private equity – other 15,800 Discounted cash flow Effective yield 3.0% (3.0%) Private equity – funds 167,804 Lag reported market value Net asset value, as reported 100.0% (100.0%) Market adjustments 1.9% – 15.0% (9.7%) December 31, 2018 Fair value Valuation techniques Unobservable inputs Range (Weighted average) Fixed maturities U.S. states, territories and municipalities $ 120,898 Discounted cash flow Credit spreads 0.2% – 10.2% (4.3%) Asset backed securities 17,596 Discounted cash flow Credit spreads 6.7% (6.7%) Equities Finance (1) 13,710 Lag reported market value Transaction price 12.0 (12.0) Technology 12,256 Reported market value Tangible book value multiple 1.0 (1.0) Other invested assets Total return swaps, net (1,535 ) Discounted cash flow Credit spreads 2.5% – 23.0% (16.0%) Insurance-linked securities – longevity swaps 2,824 Discounted cash flow Credit spreads 2.6% (2.6%) Insurance-linked securities – pandemic swaps (1,301 ) Discounted cash flow Credit spreads 27.3% (27.3%) Insurance-linked securities – weather index swap (1,267 ) Proprietary option model Index value (temperature) 80.7 – 3,293.8 (175.3) Notes and loans receivable 2,660 Discounted cash flow Credit spreads 41.5% – 41.9% (41.5%) Notes and loans receivable 2,688 Discounted cash flow Credit spreads 17.5% (17.5%) Gross revenue/fair value ratios 1.1 (1.1) Note securitization 1,159 Discounted cash flow Credit spreads 0.8% (0.8%) Private equity – direct 1,889 Weighted market comparables Revenue multiple 1.1 (1.1) Adjusted earnings multiple 9.8 (9.8) Liquidity discount 30% (30%) Private equity – funds 14,438 Reported market value Net asset value, as reported 100.0% (100.0%) Market adjustments -6.5% (-6.5%) Private equity – other 19,997 Discounted cash flow Effective yield 4.1% (4.1%) (1) During 2018, the Company sold a portion of its investment and used the arm's length transaction price as an estimate of the fair value of the remaining holdings. The tables above do not include financial instruments that are measured using unobservable inputs (Level 3) where the unobservable inputs were obtained from external sources and used without adjustment. These financial instruments include corporate bonds (included within Fixed maturities), certain common stock equities and mutual fund investments (included within Equities), certain private equity funds (private equities included within Other invested assets), privately placed corporate loans (included within Other invested assets) and certain derivatives (included within Other invested assets). The Company has established a Valuation Committee which is responsible for determining the Company’s invested asset valuation procedures, reviewing significant changes in the fair value measurements of securities classified as Level 3 and ensuring that there is appropriate oversight, on at least an annual basis, of the fair value measurements of significant securities that are classified as Level 3. The Valuation Committee is comprised of members of the Company’s senior management team. Changes in the fair value of the Company’s financial instruments subject to the fair value option during the years ended December 31, 2019 , 2018 and 2017 were as follows (in thousands of U.S. dollars): 2019 2018 2017 Fixed maturities and short-term investments $ 190,343 $ (150,926 ) $ 124,033 Equities 403,011 2,791 60,460 Other invested assets 50,857 (12,987 ) 28,144 Funds held–directly managed (1) — (6,484 ) (5,612 ) Total $ 644,211 $ (167,606 ) $ 207,025 (1) The funds held–directly managed account was settled in 2018 upon commutation of the related Paris Re Reserve Agreement. See Note 7(a). Substantially all of the above changes in fair value are included in Net realized and unrealized investment gains (losses) in the Consolidated Statements of Operations. The change in the fair value of Other invested assets subject to the fair value option does not include certain derivatives. The following methods and assumptions were used by the Company in estimating the fair value of each class of financial instrument recorded in the Consolidated Balance Sheets. There have been no material changes in the Company’s valuation techniques during the periods presented. Fixed maturities • U.S. government and government sponsored enterprises —consists primarily of bonds issued by the U.S. Treasury and corporate debt securities issued by government sponsored enterprises and federally owned or established corporations. These securities are generally priced by independent pricing services. The independent pricing services may use actual transaction prices for securities that have been actively traded. For securities that have not been actively traded, each pricing source has its own proprietary method to determine the fair value, which may incorporate option adjusted spreads (OAS), interest rate data and market news. The Company generally classifies these securities in Level 2. • U.S. states, territories and municipalities —consists primarily of bonds issued by U.S. states, territories and municipalities and the Federal Home Loan Mortgage Corporation. Certain of the bonds that are issued by municipal housing authorities and the Federal Home Loan Mortgage Corporation are not actively traded and are priced based on internal models using unobservable inputs (credit spreads). Accordingly, the Company classifies these securities in Level 3. A significant increase (decrease) in credit spreads in isolation could result in a significantly lower (higher) fair value measurement. The remaining securities are generally priced by independent pricing services using the techniques described for U.S. government and government sponsored enterprises above. The Company generally classifies these securities in Level 2. • Non-U.S. sovereign government, supranational and government related —consists primarily of bonds issued by non-U.S. national governments and their agencies, non-U.S. regional governments and supranational organizations. These securities are generally priced by independent pricing services using the techniques described for U.S. government and government sponsored enterprises above. The Company generally classifies these securities in Level 2. • Corporate —consists primarily of bonds issued by U.S. and foreign corporations covering a variety of industries and issuing countries. Corporate securities also include real estate investment trusts, catastrophe bonds, longevity and mortality bonds and government guaranteed corporate debt. These securities are generally priced by independent pricing services and brokers. The pricing provider incorporates information including credit spreads, interest rate data and market news into the valuation of each security. The Company generally classifies these securities in Level 2. When a corporate security is inactively traded or the valuation model uses unobservable inputs, the Company classifies the security in Level 3. • Asset-backed securities —primarily consists of bonds issued by U.S. and foreign corporations that are predominantly backed by student loans, automobile loans, credit card receivables, equipment leases, and special purpose financing. With the exception of special purpose financing securities, these asset-backed securities are generally priced by independent pricing services and brokers. The pricing provider applies dealer quotes and other available trade information, prepayment speeds, yield curves and credit spreads to the valuation. The Company generally classifies these securities in Level 2. Special purpose financing securities are generally inactively traded and are priced based on valuation models using unobservable inputs (credit spreads). The Company generally classifies these securities in Level 3. A significant increase (decrease) in credit spreads in isolation could result in a significantly lower (higher) fair value measurement. • Residential mortgage-backed securities —primarily consists of bonds issued by the Government National Mortgage Association, the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, as well as private, non-agency issuers. These residential mortgage-backed securities are generally priced by independent pricing services and brokers. When current market trades are not available, the pricing provider or the Company will employ proprietary models with observable inputs including other trade information, prepayment speeds, yield curves and credit spreads. The Company generally classifies these securities in Level 2. • Other mortgage-backed securities —primarily consists of commercial mortgage-backed securities. These securities are generally priced by independent pricing services and brokers. The pricing provider applies dealer quotes and other available trade information, prepayment speeds, yield curves and credit spreads to the valuation. The Company generally classifies these securities in Level 2. In general, the methods employed by the independent pricing services to determine the fair value of the securities that have not been actively traded primarily involve the use of “matrix pricing” in which the independent pricing source applies the credit spread for a comparable security that has traded recently to the current yield curve to determine a reasonable fair value. The Company generally uses one pricing source per security and uses a pricing service ranking to consistently select the most appropriate pricing service in instances where it receives multiple quotes on the same security. When fair values are unavailable from these independent pricing sources, quotes are obtained directly from broker-dealers who are active in the corresponding markets. Most of the Company’s fixed maturities are priced from the pricing services or dealer quotes. The Company will typically not make adjustments to prices received from pricing services or dealer quotes; however, in instances where the quoted external price for a security uses significant unobservable inputs, the Company will classify that security as Level 3. The methods used to develop and substantiate the unobservable inputs used are based on the Company’s valuation policy and are dependent upon the facts and circumstances surrounding the individual investments which are generally transaction specific. The Company’s inactively traded fixed maturities are classified as Level 3. For all fixed maturity investments, the bid price is used for estimating fair value. To validate prices, the Company compares the fair value estimates to its knowledge of the current market and will investigate prices that it considers not to be representative of fair value. The Company also reviews an internally generated fixed maturity price validation report which converts prices received for fixed maturity investments from the independent pricing sources and from broker-dealers quotes and plots OAS and duration on a sector and rating basis. The OAS is calculated using established algorithms developed by an independent risk analytics platform vendor. The OAS on the fixed maturity price validation report are compared for securities in a similar sector and having a similar rating, and outliers are identified and investigated for price reasonableness. In addition, the Company completes quantitative analyses to compare the performance of each fixed maturity investment portfolio to the performance of an appropriate benchmark, with significant differences identified and investigated. Short-term investments Short-term investments are valued in a manner similar to the Company’s fixed maturity investments and are generally classified in Level 2. At December 31, 2018, short-term investments included investments in foreign currency denominated bonds issued by a foreign government with durations to maturity of three to four months, as discussed in footnote (1) to the fair value table above, which matured during 2019. See also Notes 2 (g) and 2 (n) for further details. Equities Equity securities include U.S. and foreign common and preferred stocks, real estate investment trusts and mutual funds. Publicly traded equities are generally classified in Level 1 as the Company uses prices received from independent pricing sources based on quoted prices in active markets. Equities classified as Level 2 are generally mutual funds invested in fixed income securities, where the net asset value of the fund is provided on a daily basis, and certain common and preferred equities. Equities classified as Level 3 are generally mutual funds invested in securities other than the common stock of publicly traded companies, where the net asset value is not provided on a daily basis, and inactively traded common stocks. The significant unobservable inputs used in the fair value measurement of inactively traded common stocks classified as Level 3 include market return information, weighted using management’s judgment, from comparable selected publicly traded companies in the same industry, in a similar region and of a similar size, including transactional prices, tangible book value multiples, revenue multiples and adjusted earnings multiples. Significant increases (decreases) in any of these inputs could result in a significantly higher (lower) fair value measurement. Significant unobservable inputs used in measuring the fair value measurement of inactively traded common stocks also include a liquidity discount. A significant increase (decrease) in the liquidity discount could result in a significantly lower (higher) fair value measurement. To validate prices, the Company completes quantitative analyses to compare the performance of each equity investment portfolio to the performance of an appropriate benchmark, with significant differences identified and investigated. Other invested assets The Company’s foreign exchange forward contracts, foreign currency option contracts, interest rate swaps and TBAs are generally classified as Level 2 within the fair value hierarchy and are priced by independent pricing services. Included in the Company’s Level 3 classification, in general, are certain derivatives, including weather derivative insurance-linked securities and total return swaps; privately placed corporate loans; notes and loans receivable and notes securitizations; and private equities. For Level 3 instruments, the Company will generally (i) receive a price based on a manager’s or trustee’s valuation for the asset; (ii) develop an internal discounted cash flow model to measure fair value; or (iii) use market return information, adjusted if necessary and weighted using management’s judgment, from comparable selected publicly traded equity funds in a similar region and of a similar size. Where the Company receives prices from the manager or trustee, these prices are based on the manager’s or trustee’s estimate of fair value for the assets and are generally audited on an annual basis. Where the Company develops its own discounted cash flow models, the inputs will be specific to the asset in question, based on appropriate historical information, adjusted as necessary, and using appropriate discount rates. The significant unobservable inputs used in the fair value measurement of Other invested assets classified as Level 3 include variation in regional temperatures, credit spreads, gross revenue to fair value ratios and other valuation ratios. Significant increases (decreases) in any of these inputs in isolation could result in a significantly lower (higher) fair value measurement. Significant unobservable inputs used in the fair value measurement of Other invested assets classified as Level 3 also include market return information, weighted using management’s judgment, from comparable selected publicly traded companies in the same industry, in a similar region and of a similar size, net income multiples and effective yields. Significant increases (decreases) in these inputs in isolation could result in a significantly higher (lower) fair value measurement. As part of the Company’s modeling to determine the fair value of an investment, the Company considers counterparty credit risk as an input to the model, however, the majority of the Company’s counterparties are investment grade rated institutions and the failure of any one counterparty would not have a significant impact on the Company’s consolidated financial statements. To validate prices, the Company will compare them to benchmarks, where appropriate, or to the business results generally within that asset class and specifically to those particular assets. (b) Fair Value of Financial Instrument Liabilities At December 31, 2019 and 2018 , the carrying values of financial instrument liabilities recorded in the Consolidated Balance Sheets approximate their fair values, with the exception of the long-term debt related to senior notes and capital efficient notes (CENts). The fair value of the debt related to senior notes as of December 31, 2019 and 2018 was calculated based on discounted cash flow models using observable market yields and contractual cash flows based on the aggregate principal amount outstanding. The fair value of the debt related to CENts as of December 31, 2019 and 2018 was calculated based on market data valuation models using observable inputs based on the aggregate principal amount outstanding of the intercompany debt. See Note 9 for further details related to the Company's debt, including the carrying values and fair values. At December 31, 2019 and 2018 , the Company’s debt related to the senior notes and CENts was classified as Level 2 in the fair value hierarchy. Disclosures about the fair value of financial instrument liabilities exclude insurance contracts. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2019 | |
Investments [Abstract] | |
Investments | Investments (a) Net Realized and Unrealized Investment Gains (Losses) The components of the net realized and unrealized investment gains (losses) for the years ended December 31, 2019 , 2018 and 2017 were as follows (in thousands of U.S. dollars): 2019 2018 2017 Net realized investment gains (losses) on fixed maturities and short-term investments $ 243,508 $ (224,887 ) $ 28,632 Net realized investment gains (losses) on equities 6,545 14,601 (4,052 ) Net realized investment gains (losses) on other invested assets 830 7,136 (3,217 ) Net realized investment gains on funds held–directly managed (1) — 1,200 508 Net realized investment gains (losses) $ 250,883 $ (201,950 ) $ 21,871 Change in net unrealized investment gains (losses) on fixed maturities and short-term investments $ 190,343 $ (150,926 ) $ 124,033 Change in net unrealized investment gains on equities 403,011 2,791 60,460 Change in net unrealized investment gains (losses) on other invested assets 44,441 (25,607 ) 32,790 Change in net unrealized investment losses on funds held–directly managed (1) — (6,484 ) (5,567 ) Net other realized and unrealized investment gains (losses) 969 (1,334 ) (1,096 ) Change in net unrealized investment gains (losses) $ 638,764 $ (181,560 ) $ 210,620 Impairment loss on investments in real estate $ (2,977 ) $ (6,122 ) $ — Net realized and unrealized investment gains (losses) $ 886,670 $ (389,632 ) $ 232,491 (1) The funds held–directly managed account was settled in 2018 upon commutation of the related Paris Re Reserve Agreement. See also Note 7(a) for further details. (b) Net Investment Income The components of net investment income for the years ended December 31, 2019 , 2018 and 2017 were as follows (in thousands of U.S. dollars): 2019 2018 2017 Fixed maturities $ 379,939 $ 378,726 $ 382,676 Short-term investments and cash and cash equivalents 26,981 13,279 5,363 Other invested assets 68,879 26,234 11,800 Equities, funds held and other (1) 12,221 21,964 17,256 Funds held–directly managed (2) — 4,674 7,742 Investment expenses (39,482 ) (28,956 ) (22,766 ) Net investment income $ 448,538 $ 415,921 $ 402,071 (1) The Company generally earns investment income on funds held by reinsured companies based upon a predetermined interest rate, either fixed contractually at the inception of the contract or based upon a recognized index (e.g. LIBOR). Interest rates ranged from 0.1% to 5.1% , 0.1% to 7.4% and 0.1% to 7.0% for the years ended December 31, 2019 , 2018 and 2017 , respectively. (2) The funds held–directly managed account was settled in 2018 upon commutation of the related Paris Re Reserve Agreement. See also Note 7(a) for further details. (c) Pledged and Restricted Assets At December 31, 2019 and 2018 , approximately $294 million and $152 million , respectively, of cash and cash equivalents and approximately $4,025 million and $3,849 million , respectively, of securities were deposited, pledged or held in escrow accounts in favor of ceding companies and other counterparties or government authorities to comply with reinsurance contract provisions and insurance laws. (d) Receivable for Securities Sold and Payable for Securities Purchased At December 31, 2019 and 2018 , receivables for securities sold of $ 31 million and $19 million , respectively, were recorded within Other assets. At December 31, 2019 and 2018 , payables for securities purchased of $ 169 million and $80 million , respectively, were recorded within Accounts payable, accrued expenses, and other in the Consolidated Balance Sheets. (e) Variable Interest Entities The Company holds variable interests in VIEs including certain limited liability companies or partnerships, trusts, fixed maturity investments and asset-backed securities. The holdings in these VIEs are reported within Fixed maturities and Other invested assets in the Company’s Consolidated Balance Sheets. The Company’s involvement in these entities is, for the most part, passive in nature. The Company’s maximum exposure to loss with respect to these investments is limited to the amounts invested in and advanced to the VIEs, and any unfunded commitments (see Note 15 (c) ). (f) Summarized Financial Information of an Equity Method Investee At December 31, 2019 and 2018, the Company held a 36% shareholding in the privately held United Kingdom real estate investment and development group, Almacantar. At December 31, 2019 and 2018 , the total carrying value of this investment, accounted for under the equity method, was $483 million and $498 million , respectively, included within Other invested assets in the Consolidated Balance Sheets. This equity method investment was considered significant as the interest in earnings of this investee exceeded 10% of the consolidated net income before income tax expense of the Company for the year ended December 31, 2017 . As at December 31, 2019 and 2018, the investment in Almacantar was no longer considered significant. The summarized balance sheet and income statement of Almacantar is as follows (in thousands of U.S. dollars) : December 31, 2019 December 31, 2018 Current assets $ 963,812 $ 1,007,293 Noncurrent assets $ 1,431,384 $ 1,341,825 Current liabilities $ 159,205 $ 577,660 Noncurrent liabilities $ 862,943 $ 357,625 For the year ended December 31, 2019 December 31, 2018 December 31, 2017 Revenues $ 47,551 $ 42,671 $ 20,508 Operating (loss) profit (1) $ (63,653 ) $ (14,562 ) $ 190,613 Net (loss) income $ (56,648 ) $ (21,038 ) $ 213,241 (1) Operating (loss) profit referred to in the table above includes revenues, cost of sales, and unrealized gains (losses) on properties. |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives The Company’s objectives for holding or issuing derivatives are as follows: Foreign Exchange Forward Contracts —The Company utilizes foreign exchange forward contracts as part of its overall currency risk management and investment strategies. At December 31, 2018 , the Company specifically designated certain foreign exchange forward contracts as a highly effective hedge of certain foreign currency denominated short-term investments, which were settled during 2019. Futures Contracts and Foreign Currency Option Contracts —The Company uses exchange traded treasury note futures contracts to manage portfolio duration and equity futures to hedge certain investments. The Company utilizes foreign currency option contracts to mitigate foreign currency risk. Insurance-linked Securities —The Company enters into various derivatives for which the underlying risks reference parametric weather risks and pandemic outbreaks, in addition to longevity total return swaps for which the underlying risks reference longevity risks. Total Return and Interest Rate Swaps —The Company enters into total return swaps referencing certain investments in Other invested assets. The Company enters into interest rate swaps to mitigate the interest rate risk on certain of the total return swaps and certain fixed maturity investments. TBAs —The Company utilizes TBAs as part of its overall investment strategy and to enhance investment performance. The net fair values of derivatives included in Other invested assets within the Company’s Consolidated Balance Sheets and the related net notional exposures at December 31, 2019 and 2018 were as follows (in thousands of U.S. dollars): Asset derivatives at fair value Liability derivatives at fair value Net derivatives December 31, 2019 Fair value Net notional exposure Derivatives not designated as hedges Foreign exchange forward contracts $ 4,363 $ (5,643 ) $ (1,280 ) $ 3,028,063 Foreign currency option contracts 266 — 266 — Insurance-linked securities (1) 2,728 (3,871 ) (1,143 ) 46,250 Total return swaps 1,448 (2,962 ) (1,514 ) 31,641 Interest rate swaps (2) — (12,378 ) (12,378 ) — Total derivatives not designated as hedges $ 8,805 $ (24,854 ) $ (16,049 ) Asset Liability Net derivatives December 31, 2018 Fair value Net notional Derivatives designated as hedges Foreign exchange forward contracts $ — $ (2,464 ) $ (2,464 ) $ 226,019 Total derivatives designated as hedges $ — $ (2,464 ) $ (2,464 ) Derivatives not designated as hedges Foreign exchange forward contracts $ 17,820 $ (1,209 ) $ 16,611 $ 2,231,871 Insurance-linked securities (1) 2,824 (2,568 ) 256 59,257 Total return swaps 1,697 (3,232 ) (1,535 ) 41,980 Interest rate swaps (2) 10 (9,194 ) (9,184 ) 1,840 Total derivatives not designated as hedges $ 22,351 $ (16,203 ) $ 6,148 Total derivatives $ 22,351 $ (18,667 ) $ 3,684 (1) Insurance-linked securities include longevity swaps for which the notional amounts are not reflective of the overall potential exposure of the swaps. The net notional exposure above included the Company's best estimate of the present value of future expected claims. (2) The Company enters into interest rate swaps to mitigate notional exposures on certain total return swaps and certain fixed maturities. The net notional exposure for interest rate swaps above relates to fixed maturities. The fair value of derivatives is recorded in Other invested assets in the Company’s Consolidated Balance Sheets. At December 31, 2018, the Company held foreign exchange forward contracts which were designated as highly effective hedges of the Japanese Yen foreign exchange rate risk exposure against the U.S. dollar related to specific Japanese government issued bonds recorded in Short-term investments. At December 31, 2018 , there was less than $2 million of gains related to foreign exchange forward contracts designated as cash flow hedges recognized in Accumulated other comprehensive loss. These gains were reclassified to income upon settlement of the hedges and maturity of the bonds during 2019 and, as a result, there are no hedge related balances recorded in Accumulated other comprehensive loss at December 31, 2019 . There were no derivatives designated as hedges at December 31, 2019 . The gains and losses in the Consolidated Statements of Operations for derivatives not designated as hedges for the years ended December 31, 2019 , 2018 and 2017 were as follows (in thousands of U.S. dollars): 2019 2018 2017 Foreign exchange forward contracts $ (41,171 ) $ 45,143 $ (41,776 ) Total included in Net foreign exchange (losses) gains $ (41,171 ) $ 45,143 $ (41,776 ) Futures contracts $ (9,952 ) $ 11,043 $ (11,683 ) Insurance-linked securities (4,381 ) 6,134 (563 ) Total return swaps — — 464 Interest rate swaps (5,230 ) 2,332 1,105 TBAs — (13,614 ) 4,742 Other 463 — — Total included in Net realized and unrealized investment gains (losses) $ (19,100 ) $ 5,895 $ (5,935 ) Total derivatives not designated as hedges $ (60,271 ) $ 51,038 $ (47,711 ) Offsetting of Derivatives The gross and net fair values of derivatives that are subject to offsetting in the Consolidated Balance Sheets at December 31, 2019 and 2018 were as follows (in thousands of U.S. dollars): Gross amounts offset in the balance sheet Net amounts of assets/liabilities presented in the balance sheet Gross amounts not offset in the balance sheet December 31, 2019 Gross amounts recognized (1) Financial instruments Cash collateral received/pledged Net amount Total derivative assets $ 8,805 $ — $ 8,805 $ — $ (19,537 ) $ (10,732 ) Total derivative liabilities $ (24,854 ) $ — $ (24,854 ) $ — $ 2,977 $ (21,877 ) December 31, 2018 Total derivative assets $ 22,351 $ — $ 22,351 $ (544 ) $ (24,704 ) $ (2,897 ) Total derivative liabilities $ (18,667 ) $ — $ (18,667 ) $ 544 $ 5,221 $ (12,902 ) (1) Amounts include all derivative instruments, irrespective of whether there is a legally enforceable master netting arrangement in place. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Intangible Assets | Goodwill and Intangible Assets The Company’s goodwill related to the acquisitions of PartnerRe SA, Winterthur Re, Paris Re and Presidio and intangible assets related to the acquisitions of Paris Re, Presidio, Aurigen and Claims Analytics at December 31, 2019 , 2018 and 2017 were as follows (in thousands of U.S. dollars): Goodwill Definite- lived intangible assets Indefinite- lived intangible assets Total intangible assets Balance at December 31, 2016 $ 456,380 $ 99,742 $ 7,350 $ 107,092 Acquired during the year (1) — 75,583 2,205 77,788 Intangible assets amortization n/a (24,646 ) n/a (24,646 ) Balance at December 31, 2017 $ 456,380 $ 150,679 $ 9,555 $ 160,234 Acquired during the year (2) — 4,138 — 4,138 Intangible assets amortization n/a (35,473 ) n/a (35,473 ) Balance at December 31, 2018 $ 456,380 $ 119,344 $ 9,555 $ 128,899 Foreign currency translation — 73 — 73 Intangible assets amortization n/a (11,434 ) n/a (11,434 ) Balance at December 31, 2019 $ 456,380 $ 107,983 $ 9,555 $ 117,538 n/a: Not applicable (1) In April 2017, the Company completed the acquisition of Aurigen. The Company recorded intangible assets related to the life value of business acquired (life VOBA) of $76 million and insurance licenses of $2 million . A bargain purchase gain of less than $1 million was included in Other income in the Consolidated Statement of Operations for the year ended December 31, 2017 representing the excess of fair value of the net assets acquired over the purchase price. (2) In June 2018, the Company completed the acquisition for 100% of the assets in Claim Analytics Inc., a Canadian based provider of predictive analytics solutions for the insurance industry. In relation to this acquisition, the Company recorded intangible assets related to customer relationships of $ 4 million . The gross carrying value and accumulated amortization of intangible assets included in the Consolidated Balance Sheets at December 31, 2019 and 2018 were as follows (in thousands of U.S. dollars): December 31, 2019 December 31, 2018 Gross carrying value Accumulated amortization Net carrying value Gross carrying value Accumulated amortization Net carrying value Definite-lived intangible assets: Renewal rights $ 48,163 $ (35,238 ) $ 12,925 $ 48,163 $ (31,828 ) $ 16,335 Customer relationships 67,619 (42,419 ) 25,200 67,546 (36,188 ) 31,358 Life VOBA 75,583 (5,725 ) 69,858 75,583 (3,932 ) 71,651 Total definite-lived intangible assets $ 191,365 $ (83,382 ) $ 107,983 $ 191,292 $ (71,948 ) $ 119,344 Indefinite-lived intangible assets: Insurance licenses 9,555 n/a 9,555 9,555 n/a 9,555 Total intangible assets $ 200,920 $ (83,382 ) $ 117,538 $ 200,847 $ (71,948 ) $ 128,899 n/a: Not applicable Definite-lived intangible assets are amortized over a period of 10-13 years for renewal rights and customer relationships, and 100 years for life VOBA. The allocation of the goodwill to the Company’s segments at December 31, 2019 and 2018 was as follows (in thousands of U.S. dollars): 2019 2018 P&C segment $ 242,376 $ 242,376 Specialty segment 196,047 196,047 Life and Health segment 17,957 17,957 Total $ 456,380 $ 456,380 The estimated future amortization expense related to the Company’s definite-lived intangible assets is as follows (in thousands of U.S. dollars): Year VOBA Other definite- Total definite- 2020 $ 1,573 $ 8,422 $ 9,995 2021 1,486 7,349 8,835 2022 2,478 6,423 8,901 2023 2,272 5,641 7,913 2024 2,296 4,960 7,256 Thereafter 59,753 5,330 65,083 Total $ 69,858 $ 38,125 $ 107,983 |
Non-life and Life and Health Re
Non-life and Life and Health Reserves | 12 Months Ended |
Dec. 31, 2019 | |
Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract] | |
Non-life and Life and Health Reserves | Non-life and Life and Health Reserves (a) Non-life reserves Non-life reserves are categorized into three types of reserves: case reserves, ACRs and IBNR reserves. Case reserves represent unpaid losses reported by the Company’s cedants and recorded by the Company. ACRs are established for particular circumstances where, on the basis of individual loss reports, the Company estimates that the particular loss or collection of losses covered by a treaty may be greater than those advised by the cedant. IBNR reserves represent a provision for claims that have been incurred but not yet reported to the Company, as well as future loss development on losses already reported, in excess of the case reserves and ACRs. See also note 2 (b) . The Company’s gross liability for non-life reserves reported by cedants (case reserves) and those estimated by the Company (ACRs and IBNR reserves) at December 31, 2019 and 2018 was as follows (in thousands of U.S. dollars): December 31, 2019 December 31, 2018 Case reserves $ 4,203,052 $ 4,217,068 ACRs 158,220 174,713 IBNR reserves 6,002,111 5,503,595 Non-life reserves $ 10,363,383 $ 9,895,376 The reconciliation of the beginning and ending gross and net liability for non-life reserves for the years ended December 31, 2019 , 2018 and 2017 was as follows (in thousands of U.S. dollars): 2019 2018 2017 Gross liability at beginning of year $ 9,895,376 $ 10,102,172 $ 9,247,200 Reinsurance recoverable at beginning of year 850,946 719,998 295,388 Net liability at beginning of year 9,044,430 9,382,174 8,951,812 Net incurred losses related to: (1) Current year 3,716,988 3,417,366 3,453,725 Prior years (56,848 ) (248,719 ) (448,158 ) 3,660,140 3,168,647 3,005,567 Net paid losses related to: Current year (439,285 ) (336,584 ) (472,291 ) Prior years (2,651,385 ) (2,585,403 ) (2,506,760 ) (3,090,670 ) (2,921,987 ) (2,979,051 ) Retroactive reinsurance recoverable (2) (81,013 ) — — Change in Paris Re reserve agreement (3) — (397,493 ) (3,481 ) Effects of foreign exchange rate changes 75,701 (186,911 ) 407,327 Net liability at end of year $ 9,608,588 $ 9,044,430 $ 9,382,174 Reinsurance recoverable at end of year 754,795 850,946 719,998 Gross liability at end of year $ 10,363,383 $ 9,895,376 $ 10,102,172 (1) Net incurred losses include favorable loss development of $3 million during the year ended December 31, 2019, which are allocated to Corporate and Other as disclosed in Note 18. Non-life reserves allocated to Corporate and Other totaled $6 million , $9 million and $ nil at December 31, 2019, 2018 and 2017, respectively. (2) In the fourth quarter of 2019, the Company entered into a loss portfolio transfer agreement transferring 100 % of liabilities, including profit commissions, related to its wholesale managing general agent portfolio. As a result of the transaction, the Company recorded a deferred gain of $14 million , which is included in Accounts payable, accrued expenses and other in the Consolidated Balance Sheet. (3) The change in reserve agreement includes adverse development on Paris Re’s reserves which were guaranteed by Axa under the reserve agreement. In 2018, this balance also includes the reduction of the guaranteed reserves following the commutation of the agreement in the fourth quarter of 2018. For the year ended December 31, 2019 , the Company reported net favorable loss development for prior accident years resulting from favorable loss emergence in the P&C segment, which was partially offset by adverse loss emergence for the Specialty segment. The favorable loss emergence within the P&C segment was primarily from accident years 2014 and prior, mainly driven by the European casualty and motor business, which was partially offset by adverse loss emergence in the U.S. casualty business. The adverse loss emergence within the Specialty segment was across multiple accident years, predominantly from the engineering, aviation and multiline business. For the year ended December 31, 2018 , the Company reported net favorable loss development for prior accident years resulting from favorable loss emergence in both Non-life segments. The favorable loss emergence within the P&C segment was across multiple accident years, mainly driven by the European casualty business. The favorable loss emergence within the Specialty segment was across multiple accident years, predominantly from the financial risks and property marine energy business. For the year ended December 31, 2017 , the Company reported net favorable loss development for prior accident years resulting from favorable loss emergence in both Non-life segments. The favorable loss emergence within the P&C segment was across multiple accident years, mainly driven by the casualty business. The favorable loss emergence within the Specialty segment was predominantly from the previous two accident years, mainly driven by the energy and agriculture business. Paris Re Reserve Agreement Following Paris Re’s acquisition of substantially all of the reinsurance operations of Colisée Re in 2006, Paris Re’s French operating subsidiary (Paris Re France) entered into a reserve agreement (Reserve Agreement) whereby AXA and Colisée Re guaranteed reserves in respect of Paris Re France and subsidiaries acquired in the acquisition. The Reserve Agreement related to losses incurred prior to December 31, 2005. The reserve guarantee was conditioned upon, among other things, the guaranteed business, including related ceded reinsurance, being managed by AXA Liabilities Managers, an affiliate of Colisée Re. At December 31, 2017, the Company’s gross liability for non-life reserves included $426 million of guaranteed reserves, which were settled prior to December 31, 2018 as a result of the commutation of the remaining reserves under the Reserve Agreement. As a result of this commutation, a gain of $ 29 million was recorded in Other income within the Consolidated Statement of Operations during the year ended December 31, 2018. As of December 31, 2019 no balances related to the Paris Re agreement remain. Asbestos and Environmental Claims The Company’s net non-life reserves at December 31, 2019 and 2018 included $ 45 million and $47 million , respectively, related to asbestos and environmental claims. The gross liability for such claims at December 31, 2019 and 2018 was $ 51 million and $54 million , respectively. Ultimate loss estimates for such claims cannot be estimated using traditional reserving techniques and there are significant uncertainties in estimating the Company’s potential losses for these claims. In view of the legal and tort environment that affect the development of such claims, the uncertainties inherent in estimating asbestos and environmental claims are not likely to be resolved in the near future. There can be no assurance that the reserves established by the Company will not be adversely affected by development of other latent exposures, and further, there can be no assurance that the reserves established by the Company will be adequate. The Company does, however, actively evaluate potential exposure to asbestos and environmental claims and establishes additional reserves as appropriate. The Company believes that it has made a reasonable provision for these exposures and is unaware of any specific issues that would materially affect its unpaid losses and loss expense reserves related to this exposure. Non-life reserving methods The reserving methods commonly employed by the Company are summarized as follows: Chain Ladder (CL) Development Methods (Reported or Paid) These methods use the underlying assumption that losses reported (paid) for each underwriting year at a particular development stage follow a stable pattern. The CL development method assumes that on average, every underwriting year will display the same percentage of ultimate liabilities reported by the Company’s cedants at 24 months after the inception of the underwriting year. The percentages reported (paid) are established for each development stage after examining historical averages from the loss development data. These are sometimes supplemented by external benchmark information. Ultimate liabilities are estimated by multiplying the actual reported (paid) losses by the reciprocal of the assumed reported (paid) percentage. Reserves are then calculated by subtracting paid claims from the estimated ultimate liabilities. Expected Loss Ratio (ELR) Method This method estimates ultimate losses for an underwriting year by applying an estimated loss ratio to the earned premium for that underwriting year. Although the method is insensitive to actual reported or paid losses, it can often be useful at the early stages of development when very few losses have been reported or paid, and the principal sources of information available to the Company consist of information obtained during pricing and qualitative information supplied by the cedant. However, the lack of sensitivity to reported or paid losses means that the method is usually inappropriate at later stages of development. Bornhuetter-Ferguson (B-F) Methods (Reported or Paid) These methods aim to address the variability at early stages of development and incorporates external information such as pricing. The B-F methods are more sensitive to reported and paid losses than the ELR method, and can be seen as a blend of the ELR and CL development methods. Unreported (unpaid) claims are calculated using an expected reporting (payment) pattern and an externally determined estimate of ultimate liabilities (usually determined by multiplying an a priori loss ratio with estimates of premium volume). The accuracy of the a priori loss ratio is a critical assumption in this method. Usually a priori loss ratios are initially determined on the basis of pricing information, but may also be adjusted to reflect other information that subsequently emerges about underlying loss experience. Loss Event Specific Method The ultimate losses estimated under this method are derived from estimates of specific events based on reported claims, client and broker discussions, review of potential exposures, market loss estimates, modeled analysis and other event specific criteria. Method Weights In determining the loss reserves, the Company often relies on a blend of the results from two or more methods (e.g., weighted averages). The judgment as to which of the above method(s) is most appropriate for a particular underwriting year and reserving cell could change over time as new information emerges regarding underlying loss activity and other data issues. Furthermore, as each line is typically composed of several reserving cells, it is likely that the reserves for the line will be dependent on several reserving methods. This is because reserves for a line are the result of aggregating the reserves for each constituent reserving cell and that a different method could be selected for each reserving cell. The principal reserving methods used for each of the Specialty segment and P&C segment were ELR, Reported/Paid B-F, and Reported/Paid CL, with the exception of catastrophe risks within the P&C segment where the principal reserving methods used were ELR based on exposure analysis and loss event specific methods. (b) Life and Health Reserves The reconciliation of the beginning and ending gross and net liability for life and health reserves for the years ended December 31, 2019 , 2018 and 2017 was as follows (in thousands of U.S. dollars): 2019 2018 2017 Gross liability at beginning of period $ 2,198,080 $ 2,098,759 $ 1,722,330 Reinsurance recoverable at beginning of period 11,829 9,287 2,726 Net liability at beginning of period $ 2,186,251 $ 2,089,472 $ 1,719,604 Liability acquired related to the acquisition of Aurigen — — 67,916 Net incurred losses 1,263,016 1,024,608 835,415 Net losses paid (1,071,487 ) (818,916 ) (714,151 ) Effects of foreign exchange rate changes 23,081 (108,913 ) 180,688 Net liability at end of period $ 2,400,861 $ 2,186,251 $ 2,089,472 Reinsurance recoverable at end of period 16,183 11,829 9,287 Gross liability at end of period $ 2,417,044 $ 2,198,080 $ 2,098,759 The increase in net losses incurred and paid in 2019 compared to 2018 was primarily due to growth in the longevity line of business. The increase in net losses incurred and paid in 2018 compared to 2017 was primarily due to growth in the business and the inclusion of losses and loss expenses from the acquisition of Aurigen for a full year in 2018 compared to three quarters in 2017. The Company used interest rate assumptions to estimate its liabilities for policy benefits for life and annuity contracts which ranged from 0% to 7% at December 31, 2019 , 2018 and 2017 , respectively. Life and health reserving methods The reserving methods commonly employed by the Company are summarized as follows: Mortality The reserves for the short-term mortality/morbidity business consist of case reserves calculated at the treaty level based upon cedant information. IBNR is calculated at the segment level using the ELR method described above for Non-life business. The reserves for the traditional and limited payment long-duration contracts are established based upon accepted actuarial valuation methods which require us to make certain assumptions regarding future claims and policy benefits and includes a provision for adverse deviation. The provision for adverse deviation contemplates reasonable deviations from the best estimate assumptions for the key risk elements relevant to the product being evaluated, including mortality, disability, critical illness, expenses, and discount rates. The assumptions are locked in at contract inception and are subject to annual loss recognition testing (LRT). LRT occurs at the product group level, based on the manner of acquiring, servicing and measuring profitability of the reinsurance contracts. The LRT framework incorporates deferred acquisition cost (DAC) recoverability testing and involves determining an LRT reserve by re-measuring the policy benefit liabilities using current best estimate actuarial assumptions and current discount rates without any provisions for adverse deviation. If the aggregate LRT reserve is higher than the carrying amount of future policy benefit liabilities, net of DAC and VOBA, for a particular product grouping then a loss recognition event occurs. The DAC and VOBA asset balances for the given product grouping are first reduced, and if the balances are fully written off, the reserves will be increased, such that the current best estimate assumptions become the new locked-in basis. The reserves for the guaranteed minimum death benefit (GMDB) reinsurance business are established similar to provisions for universal life contracts. Key actuarial assumptions for this business are mortality, lapses, interest rates, expected returns on cash and bonds and stock market performance. For the latter parameter, a stochastic option pricing approach is used and the benefits used in calculating the liabilities are based on the average benefits payable over a range of scenarios. The assumptions of investment performance and volatility are consistent with expected future experience of the respective underlying funds available for policyholder investment options. Recorded reserves for GMDB reflect management’s best estimate based upon actuarial indications. Longevity Reserves for the annuity portfolio of reinsurance contracts within the longevity book are established using the reserving methodology discussed above for long-term traditional mortality. (c) Losses and Loss Expenses Losses and loss expenses in the Consolidated Statements of Operations for the years ended December 31, 2019 , 2018 and 2017 were comprised as follows (in thousands of U.S. dollars): 2019 2018 2017 Non-life (1) $ 3,660,140 $ 3,168,647 $ 3,005,567 Life and Health 1,263,016 1,024,608 835,415 Losses and loss expenses $ 4,923,156 $ 4,193,255 $ 3,840,982 (1) Net incurred losses include favorable loss development of $3 million during the year ended December 31, 2019, which are allocated to Corporate and Other as disclosed in Note 18. Non-life net incurred and paid losses and loss expense development The net incurred and paid losses and loss expenses development by accident year for each of the years ended December 31, 2012 through 2019 , and the total of IBNR plus expected development on reported claims included within the net incurred claims amounts, as at each of the years ended December 31, 2012 through 2019 , are presented in the tables below (in thousands of U.S. dollars). The information presented below for incurred and paid claims development for each of the years ended December 31, 2012 through 2018 and the average annual percentage payout of incurred claims by age, net of reinsurance, is presented as supplementary information and is unaudited. The tables below reflect losses incurred and paid losses translated to U.S. dollars at the exchange rate as of the balance sheet date whereas the losses and loss expenses in the Consolidated Statement of Operations reflect losses incurred at the average exchange rate for the period. NET INCURRED LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - NON-LIFE For the year ended December 31, December 31, 2019 Accident year 2012 2013 2014 2015 2016 2017 2018 2019 Total of IBNR plus expected development on reported claims 2012 $ 2,647,806 $ 2,459,009 $ 2,303,222 $ 2,196,596 $ 2,164,135 $ 2,195,163 $ 2,172,148 $ 2,139,972 $ 79,953 2013 2,880,337 2,706,850 2,528,689 2,475,252 2,441,912 2,414,380 2,411,641 124,904 2014 2,839,909 2,623,230 2,511,859 2,479,721 2,492,027 2,484,866 172,037 2015 2,894,162 2,603,297 2,497,256 2,512,588 2,514,275 245,645 2016 2,920,285 2,687,055 2,627,830 2,642,625 305,985 2017 2,979,457 2,944,385 2,900,190 519,547 2018 3,032,976 3,157,151 1,111,071 2019 3,380,372 2,599,954 Total $ 21,631,092 $ 5,159,096 NET PAID LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - NON-LIFE For the year ended December 31, Accident year 2012 2013 2014 2015 2016 2017 2018 2019 2012 $ 284,166 $ 1,056,888 $ 1,442,587 $ 1,610,064 $ 1,713,934 $ 1,805,174 $ 1,854,934 $ 1,910,828 2013 243,466 1,296,424 1,648,668 1,849,929 1,980,425 2,073,929 2,139,380 2014 305,500 1,316,469 1,621,164 1,830,516 1,972,511 2,079,766 2015 303,258 1,220,915 1,620,950 1,842,331 2,009,107 2016 325,991 1,371,581 1,729,815 1,999,489 2017 386,724 1,505,014 1,947,279 2018 258,686 1,402,377 2019 373,408 Total $ 13,861,634 Net reserves for Accident Years and exposures included in the triangles $ 7,769,458 All outstanding liabilities before Accident Year 2012, net of reinsurance 1,390,371 Total outstanding liabilities for unpaid claims $ 9,159,829 AVERAGE ANNUAL PERCENTAGE PAYOUT OF INCURRED CLAIMS BY AGE, NET OF REINSURANCE - NON-LIFE Years 1 2 3 4 5 6 7 8 Non-life 11% 39% 15% 9% 6% 4% 3% 3% NET INCURRED LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - PROPERTY For the year ended December 31, December 31, 2019 Accident year 2012 2013 2014 2015 2016 2017 2018 2019 Total of IBNR plus expected development on reported claims 2012 $ 662,441 $ 661,245 $ 583,098 $ 566,540 $ 551,100 $ 550,829 $ 538,974 $ 528,350 $ 1,763 2013 680,224 577,101 544,546 529,252 524,956 514,569 512,280 637 2014 516,850 472,237 450,682 448,212 444,769 443,084 1,273 2015 590,183 547,728 522,565 515,050 509,581 4,681 2016 725,033 682,433 635,793 615,922 689 2017 1,028,702 1,066,528 982,534 9,914 2018 853,796 895,740 143,479 2019 769,345 508,751 Total $ 5,256,836 $ 671,187 NET PAID LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - PROPERTY For the year ended December 31, Accident year 2012 2013 2014 2015 2016 2017 2018 2019 2012 $ 100,087 $ 357,186 $ 450,730 $ 484,755 $ 496,024 $ 505,112 $ 508,155 $ 515,287 2013 88,592 337,128 437,950 472,219 490,491 493,544 497,536 2014 93,141 324,074 388,404 414,611 424,255 429,061 2015 95,097 354,291 442,619 471,072 481,885 2016 135,797 458,282 540,023 577,319 2017 223,070 729,584 838,023 2018 76,543 552,879 2019 69,397 Total $ 3,961,387 Net reserves for Accident Years and exposures included in the triangles $ 1,295,449 All outstanding liabilities before Accident Year 2012, net of reinsurance 98,817 Total outstanding liabilities for unpaid claims $ 1,394,266 AVERAGE ANNUAL PERCENTAGE PAYOUT OF INCURRED CLAIMS BY AGE, NET OF REINSURANCE - PROPERTY Years 1 2 3 4 5 6 7 8 Property 17% 51% 15% 6% 3% 1% 1% 1% NET INCURRED LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - CASUALTY For the year ended December 31, December 31, 2019 Accident year 2012 2013 2014 2015 2016 2017 2018 2019 Total of IBNR plus expected development on reported claims 2012 $ 691,612 $ 677,836 $ 650,181 $ 609,784 $ 592,346 $ 600,562 $ 596,124 $ 581,746 $ 57,791 2013 802,811 799,292 750,054 732,098 727,631 724,046 721,739 103,987 2014 904,048 879,775 859,778 865,219 881,493 874,893 143,527 2015 901,313 842,230 818,099 860,334 863,757 198,744 2016 850,575 802,362 823,050 851,402 243,580 2017 761,332 730,116 758,644 310,148 2018 942,480 958,819 556,588 2019 1,206,641 1,034,865 Total $ 6,817,641 $ 2,649,230 NET PAID LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - CASUALTY For the year ended December 31, Accident year 2012 2013 2014 2015 2016 2017 2018 2019 2012 $ 51,617 $ 135,521 $ 205,350 $ 278,348 $ 334,492 $ 392,972 $ 424,029 $ 451,205 2013 50,730 159,533 267,552 349,230 419,638 481,271 521,963 2014 72,033 210,083 314,019 414,479 502,072 573,236 2015 67,148 187,592 300,608 398,833 501,185 2016 36,648 166,265 266,382 382,219 2017 61,252 179,150 290,131 2018 62,265 235,579 2019 88,066 Total $ 3,043,584 Net reserves for Accident Years and exposures included in the triangles $ 3,774,057 All outstanding liabilities before Accident Year 2012, net of reinsurance 1,235,855 Total outstanding liabilities for unpaid claims $ 5,009,912 AVERAGE ANNUAL PERCENTAGE PAYOUT OF INCURRED CLAIMS BY AGE, NET OF REINSURANCE - CASUALTY Years 1 2 3 4 5 6 7 8 Casualty 7% 16% 13% 12% 10% 9% 6% 5% NET INCURRED LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - SPECIALTY For the year ended December 31, December 31, 2019 Accident year 2012 2013 2014 2015 2016 2017 2018 2019 Total of IBNR plus expected development on reported claims 2012 $ 1,293,753 $ 1,119,928 $ 1,069,943 $ 1,020,272 $ 1,020,689 $ 1,043,772 $ 1,037,050 $ 1,029,876 $ 20,399 2013 1,397,302 1,330,457 1,234,089 1,213,902 1,189,325 1,175,765 1,177,622 20,280 2014 1,419,011 1,271,218 1,201,399 1,166,290 1,165,765 1,166,889 27,237 2015 1,402,666 1,213,339 1,156,592 1,137,204 1,140,937 42,220 2016 1,344,677 1,202,260 1,168,987 1,175,301 61,716 2017 1,189,423 1,147,741 1,159,012 199,485 2018 1,236,700 1,302,592 411,004 2019 1,404,386 1,056,338 Total $ 9,556,615 $ 1,838,679 NET PAID LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - SPECIALTY For the year ended December 31, Accident year 2012 2013 2014 2015 2016 2017 2018 2019 2012 $ 132,462 $ 564,181 $ 786,507 $ 846,961 $ 883,418 $ 907,090 $ 922,750 $ 944,336 2013 104,144 799,763 943,166 1,028,480 1,070,296 1,099,114 1,119,881 2014 140,326 782,312 918,741 1,001,426 1,046,184 1,077,469 2015 141,013 679,032 877,723 972,426 1,026,037 2016 153,546 747,034 923,410 1,039,951 2017 102,402 596,280 819,125 2018 119,878 613,919 2019 215,945 Total $ 6,856,663 Net reserves for Accident Years and exposures included in the triangles $ 2,699,952 All outstanding liabilities before Accident Year 2012, net of reinsurance 55,699 Total outstanding liabilities for unpaid claims $ 2,755,651 AVERAGE ANNUAL PERCENTAGE PAYOUT OF INCURRED CLAIMS BY AGE, NET OF REINSURANCE - SPECIALTY Years 1 2 3 4 5 6 7 8 Specialty 12% 48% 16% 8% 4% 2% 2% 2% The Company is predominantly a reinsurer of primary insurers and does not have access to claim frequency information held by our cedants due to the majority of the Company’s business being written on a proportional basis. As such, the Company considers it impracticable to disclose information on the frequency of claims. As disclosed in the notes to the consolidated financial statements for the year ended December 31, 2016, the Company concluded that it was impracticable to provide net incurred and paid losses and loss expenses development data for 10 years. As a result, the Company provided 5 years of data in 2016 and includes an additional year of data for each subsequent year such that by 2021 a full 10 years of data will be disclosed. The reconciliation of the net incurred and paid claims development information above to the Non-life reserves in the Consolidated Balance Sheet at December 31, 2019 was as follows (in thousands of U.S. dollars): December 31, 2019 Total outstanding liability for unpaid claims Property $ 1,394,266 Casualty 5,009,912 Specialty 2,755,651 Total outstanding liabilities for unpaid claims $ 9,159,829 Unallocated loss expenses $ 164,021 U.S. health net reserves (1) 281,022 Other 3,716 Total other liabilities $ 448,759 Net liability at end of year $ 9,608,588 Reinsurance recoverable on paid and unpaid claims Property $ 340,926 Casualty 86,940 Specialty 326,929 Reinsurance recoverable at end of year $ 754,795 Gross liability at end of year $ 10,363,383 (1) U.S. health business is not meaningful to include in the development tables as the estimated average duration of the health reserves is less than one year and substantially all claims are expected to be paid within two years, based on historical payout patterns. |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2019 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | Reinsurance (a) Reinsurance Recoverable on Paid and Unpaid Losses The Company uses retrocessional agreements to reduce its exposure to risk of loss on reinsurance assumed. These agreements provide for recovery from retrocessionaires of a portion of losses and loss expenses. The Company remains liable to its cedants to the extent that the retrocessionaires do not meet their obligations under these agreements, and therefore the Company evaluates the financial condition of its reinsurers and monitors concentration of credit risk on an ongoing basis. The Company actively manages its reinsurance exposures by generally selecting retrocessionaires having a credit rating of A- or higher. In certain cases where an otherwise suitable retrocessionaire has a credit rating lower than A-, the Company generally requires the posting of collateral, including escrow funds and letters of credit, as a condition to its entering into a retrocession agreement. The Company regularly reviews its reinsurance recoverable balances to estimate an allowance for uncollectible amounts based on quantitative and qualitative factors. There was no allowance for uncollectible reinsurance recoverable at December 31, 2019 and 2018 deemed necessary based on the quantitative and qualitative analysis as collectability was determined to be reasonably assured and given that any recoverables related to reinsurers with ratings below A- or unrated are collateralized. (b) Ceded Reinsurance Net premiums written, net premiums earned and losses and loss expenses are reported net of reinsurance in the Company’s Consolidated Statements of Operations. Assumed, ceded and net amounts for the years ended December 31, 2019 , 2018 and 2017 were as follows (in thousands of U.S. dollars): Premiums Written Premiums Earned Losses and Loss Expenses 2019 Non-life (1) $ 5,792,542 $ 5,433,357 $ 3,879,242 Life and Health 1,492,778 1,489,721 1,277,684 Assumed $ 7,285,320 $ 6,923,078 $ 5,156,926 Non-life (1) $ 353,735 $ 375,301 $ 219,102 Life and Health 22,527 22,559 14,668 Ceded $ 376,262 $ 397,860 $ 233,770 Non-life (1) $ 5,438,807 $ 5,058,056 $ 3,660,140 Life and Health 1,470,251 1,467,162 1,263,016 Net $ 6,909,058 $ 6,525,218 $ 4,923,156 Premiums Premiums Losses and Loss 2018 Non-life $ 5,064,780 $ 4,751,958 $ 3,566,201 Life and Health 1,235,149 1,235,973 1,035,363 Assumed $ 6,299,929 $ 5,987,931 $ 4,601,564 Non-life $ 472,498 $ 450,096 $ 397,554 Life and Health 24,067 24,025 10,755 Ceded $ 496,565 $ 474,121 $ 408,309 Non-life $ 4,592,282 $ 4,301,862 $ 3,168,647 Life and Health 1,211,082 1,211,948 1,024,608 Net $ 5,803,364 $ 5,513,810 $ 4,193,255 Premiums Premiums Losses and Loss 2017 Non-life $ 4,604,938 $ 4,483,662 $ 3,644,844 Life and Health 982,956 987,884 813,446 Assumed $ 5,587,894 $ 5,471,546 $ 4,458,290 Non-life $ 450,129 $ 428,471 $ 639,277 Life and Health 17,839 18,094 (21,969 ) Ceded $ 467,968 $ 446,565 $ 617,308 Non-life $ 4,154,809 $ 4,055,191 $ 3,005,567 Life and Health 965,117 969,790 835,415 Net $ 5,119,926 $ 5,024,981 $ 3,840,982 (1) Non-life Losses and loss expenses include amounts allocated to Corporate and Other as disclosed in Note 18. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt The debt outstanding related to senior notes and capital efficient notes (CENts) and the carrying value recorded in the Consolidated Balance Sheets at December 31, 2019 and 2018 was comprised as follows (in thousands): December 31, 2019 December 31, 2018 Issuer Related Maturity Date Commitment Carrying Value Fair Value Carrying Value Fair Value Debt related to senior notes PartnerRe Finance B LLC Due 2020 $ — $ — $ — $ 500,000 $ 515,518 PartnerRe Finance B LLC Due 2029 $ 500,000 495,614 535,309 — — PartnerRe Ireland Finance DAC Due 2026 € 750,000 832,351 871,088 849,017 825,546 Total Debt related to senior notes $ 1,327,965 $ 1,406,397 $ 1,349,017 $ 1,341,064 Debt related to CENts PartnerRe Finance II Inc. Due 2066 $ 62,484 $ 70,089 $ 55,866 $ 70,989 $ 59,299 PartnerRe Finance B LLC and PartnerRe Finance II Inc. (collectively, U.S. finance entities) were utilized to issue U.S. dollar denominated debt while PartnerRe Ireland Finance DAC (Irish finance entity) was formed in order to issue Euro denominated senior notes. The U.S. finance entities are wholly-owned by PartnerRe U.S. Corporation, a holding company indirectly 100% owned by the Company. The proceeds received by the U.S. finance entities upon issuance of debt were provided to PartnerRe U.S. Corporation in exchange for notes receivable for the same principal and interest terms as the related debt issued externally. The Company determined that the U.S. entities were VIEs; however, the Company was not the primary beneficiary and, as a result, did not consolidate the U.S. finance entities. The intercompany notes payable by PartnerRe U.S. Corporation to the U.S. finance entities are recorded within Debt related to senior notes and Debt related to CENts in the Consolidated Balance Sheets and the related interest as interest expense in the Consolidated Statements of Operations. The Irish finance entity is wholly-owned by PartnerRe Holdings Europe Limited, a wholly owned subsidiary of the Company. The proceeds received by the Irish finance entity upon issuance of debt were provided to the Company in exchange for notes receivable, which are eliminated on consolidation, together with the related interest. The Company determined that PartnerRe Ireland Finance DAC is a VIE and the Company is the primary beneficiary. As a result, the debt issued externally has been reflected as Debt related to senior notes in the Consolidated Balance Sheets and the related interest as interest expense in the Consolidated Statements of Operations. Debt related to senior notes In March 2010, PartnerRe Finance B LLC issued $500 million aggregate principal amount of 5.500% senior notes due June 1, 2020 with the option to redeem, in whole or in part, at any time. PartnerRe U.S. Corporation agreed to pay the related 5.500% note payable on the same terms to PartnerRe Finance B LLC. On July 19, 2019 , the Company early redeemed these senior notes and settled the related intercompany note, with an aggregate principle of $ 500 million for a make-whole redemption price. As a result, the Company recorded a loss on redemption of debt of $15 million in the Consolidated Statement of Operations during 2019. In June 2019, PartnerRe Finance B LLC issued $500 million aggregate principal amount of 3.700% senior notes at a price of 99.783% of the principal amount. The net proceeds of the issuance, after consideration of the offering discount and underwriting expenses and commissions, totaled $496 million . These senior notes may be redeemed at the option of the issuer, in whole or in part, at any time, with early redemption requiring the payment of a make-whole premium. Early redemption prior to June 19, 2022 is subject to the Bermuda Monetary Authority's approval. Commencing on January 2, 2020 , interest on these notes is payable semi-annually at an annual fixed rate of 3.700% . Unless previously redeemed, the notes mature on July 2, 2029 . PartnerRe U.S. Corporation has agreed to pay a related 3.700% note payable to PartnerRe Finance B LLC for any unpaid principal amount on July 2, 2029. These senior notes are ranked as senior unsecured obligations of PartnerRe Finance B LLC and the Company has fully and unconditionally guaranteed all obligations of PartnerRe Finance B LLC related to these senior notes. The Company’s obligations under this guarantee are senior and unsecured and rank equally with all other senior unsecured indebtedness. The proceeds from this issuance were used to fully redeem the senior notes due 2020 on July 19, 2019 . In September 2016, PartnerRe Ireland Finance DAC issued €750 million aggregate principal amount of 1.250% senior notes at a price of 99.144% of the principal amount, which are listed in the main securities market of the Irish Stock Exchange. Interest is payable annually commencing on September 15, 2017 . These senior notes may be redeemed at the option of the issuer, in whole or in part, at any time. Early redemption prior to September 15, 2021 is subject to the Bermuda Monetary Authority's approval. Unless previously redeemed, the notes mature on September 15, 2026 . These senior notes are ranked as senior unsecured obligations of PartnerRe Ireland Finance DAC. The Company has fully and unconditionally guaranteed all obligations of PartnerRe Ireland Finance DAC under these senior notes. The Company’s obligations under this guarantee are senior and unsecured and rank equally with all other senior unsecured indebtedness. Debt related to CENts In November 2006, PartnerRe Finance II Inc. issued Fixed-to-Floating Rate Junior Subordinated CENts with a principal amount of $250 million and on March 13, 2009, purchased and retired $187 million of this principal amount. On June 5, 2019, an additional $1 million of the principal amount was purchased and retired. As a result, the remaining aggregate principal amount of the CENts as at December 31, 2019 was $62 million . In November 2006, PartnerRe U.S. Corporation issued a Fixed-to-Floating Rate promissory note, with a principal amount of $258 million to PartnerRe Finance II Inc. due December 1, 2066 . In March 2009, $187 million of the principal amount was extinguished, with an additional $1 million of the principal amount extinguished in June 2019. As a result, the remaining principal amount of the intercompany promissory note as at December 31, 2019, which is included as Debt related to CENts in the Consolidated Balance Sheet, was $70 million . The CENts have been redeemable at the option of the issuer, in whole or in part, since December 1, 2016 and are ranked as junior subordinated unsecured obligations of PartnerRe Finance II Inc. The Company has fully and unconditionally guaranteed on a subordinated basis all obligations of PartnerRe Finance II Inc. under the CENts. The Company’s obligations under this guarantee are unsecured and rank junior in priority of payments to the Company’s senior notes. Interest on both the CENts and the promissory note was payable semi-annually through to December 1, 2016 at an annual fixed rate of 6.440% and payable quarterly thereafter until maturity at an annual rate of 3-month LIBOR plus a margin equal to 2.325% , reset quarterly. Since December 1, 2016, PartnerRe Finance II Inc. has the right to defer one or more interest payments for up to ten years to December 1, 2026. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Authorized Shares At December 31, 2019 and 2018 , the total authorized share capital (common and preferred) of the Company was $ 200 million . Common Shares At December 31, 2019 and 2018 , 100 million authorized and issued Class A common shares of $0.00000001 par value each were owned by EXOR Nederland N.V. Redeemable Preferred Shares At December 31, 2019 and 2018 , the Company's issued and outstanding redeemable preferred shares, each with a par value of $1.00 per share, were as follows (in millions of U.S. dollars, except number of shares and percentage amounts): Series F Series G Series H Series I Total Date of issuance February 2013 May 2016 May 2016 May 2016 Number of preferred shares outstanding 2,679,426 6,415,264 11,753,798 7,320,574 28,169,062 Annual dividend rate 5.875 % 6.5 % 7.25 % 5.875 % Underwriting discounts and commissions (1) $ 2.3 $ 5.4 $ 9.5 $ 6.4 $ 23.6 Aggregate liquidation value, at $25 per share $ 67.0 $ 160.4 $ 293.8 $ 183.0 $ 704.2 (1) Underwriting discounts and commissions represent the original amounts paid to issue Series D, E and F shares. These amounts were reallocated on a pro-rata basis between the previously issued and the newly issued shares as a result of the share exchange in May 2016 for $nil consideration described below. Following the acquisition by EXOR N.V. (subsequently renamed EXOR Nederland N.V.) in 2016, the Company launched an exchange offer whereby participating preferred shareholders could exchange any or all existing preferred shares for newly issued preferred shares reflecting, subject to certain exceptions, an extended call date of the fifth anniversary from the date of issuance, and a restriction on payment of dividends on common shares declared with respect to any fiscal quarter to an amount not exceeding 67% of net income during such fiscal quarter until December 31, 2020. If the Company does not make aggregate distributions of all of the distributable amounts during any fiscal quarter, such remaining amounts will carryover and are available for dividends in subsequent fiscal quarters, regardless of the Company’s Net income or loss during such subsequent fiscal quarters. As a result of the exchange offer, the Company cancelled the Series D, E and F preferred shares tendered in the exchange offer. Non-tendered preferred shares not exchanged and the new Series G, H and I preferred shares remained outstanding and continued to be listed on the NYSE. The terms of the newly issued preferred shares would otherwise remain identical in all material respects to the Company’s existing preferred shares, which are described below. The redemption price of all preferred shares is $25 per share plus accrued and unpaid dividends. In the event of liquidation of the Company, the preferred shares rank on parity with each other, but rank senior to the common shares, and the holders of the preferred shares would receive a distribution of $25 per share. In addition, upon liquidation, non-cumulative Series F and I preferred shares would receive any declared but unpaid dividends while the cumulative Series G and H preferred shares would receive any accrued but unpaid dividends. The Company may redeem the Series F preferred shares at any time at whole or in part from time to time since March 1, 2018. The Company may redeem each of the Series G, H and I preferred shares on or after May 1, 2021. Dividends on the Series F and I preferred shares are non-cumulative and are payable quarterly. Dividends on the Series G and H preferred shares are cumulative from the date of issuance and are payable quarterly in arrears. |
Dividend Restrictions and Statu
Dividend Restrictions and Statutory Requirements | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure - Dividend Restrictions and Statutory Requirements [Abstract] | |
Dividend Restrictions and Statutory Requirements | Dividend Restrictions and Statutory Requirements The Company’s ability to pay common and preferred shareholders’ dividends and its corporate expenses is dependent mainly on cash dividends from PartnerRe Bermuda, PartnerRe Europe, PartnerRe U.S. and PartnerRe Asia (collectively, the reinsurance subsidiaries), which are the Company’s most significant subsidiaries. The payment of such dividends by the reinsurance subsidiaries to the Company is limited under Bermuda, Irish and Singapore laws and certain statutes of various U.S. states in which PartnerRe U.S. is domiciled. The restrictions are generally based on net income and/or certain levels of policyholders’ earned surplus as determined in accordance with the relevant statutory accounting practices. In addition, in accordance with the terms of the merger agreement between the Company and EXOR N.V. , subsequent to preferred share exchange (see Note 10 ), the Company's payment of dividends on common shares declared with respect to any fiscal quarter is restricted to an amount not exceeding 67% of net income per fiscal quarter until December 31, 2020. If the Company does not make aggregate distributions of all of the distributable amounts during any fiscal quarter, such remaining amounts will carryover and are available for dividends in subsequent fiscal quarters, regardless of the Company’s Net income or loss during such subsequent fiscal quarters. At December 31, 2019 , given the Company complied with its Bermuda solvency requirements, there were no other restrictions on the Company’s ability to pay common and preferred shareholders’ dividends from its retained earnings, except for the reinsurance subsidiaries’ dividend restrictions described below. The reinsurance subsidiaries are required to file annual statements with insurance regulatory authorities prepared on an accounting basis prescribed or permitted by such authorities (statutory basis), maintain minimum levels of solvency and liquidity and comply with risk-based capital requirements and licensing rules. At December 31, 2019 , the reinsurance subsidiaries’ solvency, liquidity and risk-based capital amounts were in excess of the minimum levels required. The typical adjustments to insurance statutory basis amounts to convert to U.S. GAAP include the elimination of certain statutory reserves, deferral of certain acquisition costs, recognition of goodwill, intangible assets and deferred income taxes that are limited on a statutory basis, valuation of bonds at fair value and presentation of ceded reinsurance balances gross of assumed balances. PartnerRe Bermuda may declare dividends subject to it continuing to meet its minimum solvency and capital requirements, which are to hold statutory capital and surplus equal to or exceeding the Target Capital Level, which is equivalent to 120% of the Enhanced Capital Requirement (ECR). The ECR is calculated with reference to the Bermuda Solvency Capital Requirement model, which is a risk-based capital model. At December 31, 2019 , the maximum dividend that PartnerRe Bermuda could pay without prior regulatory approval was approximately $1,058 million . PartnerRe Europe is subject to the Solvency II European Directive (Solvency II Regulations). The Solvency II Regulations relate to the solvency standards applicable to insurers and reinsurers and lays down, at the level of PartnerRe Europe, the minimum amounts of financial resources required in order to cover the risks to which it is exposed and the principles that should guide its overall risk management and reporting. PartnerRe Europe may declare dividends subject to it continuing to meet its Solvency II requirements, which are to hold available capital, calculated on a Solvency II balance sheet basis, in excess of the solvency capital requirement (SCR). The maximum dividend is limited to “profits available for distribution”, which consist of accumulated realized profits less accumulated realized losses. The reporting deadline for the annual Solvency II submission is April 7, 2020. PartnerRe U.S. may declare dividends subject to it continuing to meet its minimum solvency and capital requirements and is generally limited to paying dividends from earned surplus. The maximum dividend that can be declared and paid without prior approval is limited, to the lesser of adjusted net investment income or 10% of its total statutory capital and surplus as of the most recently filed annual statement. PartnerRe Asia may declare dividends from unappropriated profits subject to meeting the capital requirements, as laid out by the Monetary Authority of Singapore. As a licensed reinsurer, PartnerRe Asia is required to maintain minimum capital of SGD25 million . In addition, PartnerRe Asia is required to establish and maintain separate insurance funds for each class of business that it writes, for both Singapore and offshore policies. The solvency requirement in respect of each insurance fund shall at all times be not less than the total risk requirement of the fund (determined by reference to three components being insurance risks, asset portfolio risks and asset concentration risks) and above 120% of the total risk requirement on a Company basis. The declaration of a dividend by PartnerRe Asia is subject to conditions and requirements being met as specified under the Companies Act and the Insurance Act and its associated regulations. The filing date for the annual submission is March 31, 2020. The statutory financial statements and returns of the Company’s reinsurance subsidiaries as at, and for the year ended, December 31, 2019 are due to be submitted to the relevant regulatory authorities later in 2020, with different filing dates in each jurisdiction. In certain jurisdictions, the statutory financial statements and returns are subject to the review and final approval of the relevant regulatory authorities. As a result, the comparative figures in the tables below reflect final figures submitted to regulatory authorities for 2018 and 2017 . The statutory net income (loss) of PartnerRe Bermuda, PartnerRe Europe, PartnerRe U.S. and PartnerRe Asia for the years ended December 31, 2019 , 2018 and 2017 was as follows (in millions of U.S. dollars): 2019 2018 2017 PartnerRe Bermuda $ 863 $ 138 $ (69 ) PartnerRe Europe $ 188 $ 1 $ 153 PartnerRe U.S. $ (106 ) $ (197 ) $ 24 PartnerRe Asia $ 8 $ (40 ) $ 18 The required and actual statutory capital and surplus of PartnerRe Bermuda, PartnerRe Europe, PartnerRe U.S. and PartnerRe Asia at December 31, 2019 and 2018 was as follows (in millions of U.S. dollars): PartnerRe Bermuda PartnerRe Europe PartnerRe U.S. PartnerRe Asia 2019 2018 2019 2018 2019 2018 2019 2018 Required statutory capital and surplus $ 2,441 $ 2,145 $ 1,532 $ 1,511 $ 911 $ 732 $ 64 $ 56 Actual statutory capital and surplus $ 4,858 $ 4,233 $ 2,219 $ 2,169 $ 1,080 $ 1,094 $ 208 $ 208 In addition to the required statutory capital and surplus requirements for the reinsurance subsidiaries in the table above, the Company is required to assess its solvency capital needs both at a Group and subsidiary level. The Company’s capital requirements determine the amount of capital available to be declared as dividends to its shareholders. As Group Supervisor, the Bermuda Monetary Authority is tasked with assessing the financial condition of the Group and coordinates the dissemination of information to other relevant competent authorities for the purpose of assisting in their regulatory functions and the enforcement of regulatory action against the Company or any of its subsidiaries, including the power to impose restrictions on the ability of the relevant subsidiaries to declare dividends to the Company, and the ability of the Company to pay dividends to shareholders. In addition, the Company is required to maintain the Group ECR imposed by the BMA under Bermuda law. |
Taxation
Taxation | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Taxation | Taxation The Company and its Bermuda domiciled subsidiaries are not subject to Bermuda income or capital gains tax under current Bermuda law. In the event that there is a change in current law such that taxes on income or capital gains are imposed, the Company and its Bermuda domiciled subsidiaries would be exempt from such tax until March 2035 pursuant to the Bermuda Exempted Undertakings Tax Protection Act of 1966. The Company has subsidiaries and branches that operate in various other jurisdictions around the world that are subject to tax in the jurisdictions in which they operate. The significant jurisdictions in which the Company’s subsidiaries and branches are subject to tax are Canada, France, Ireland, Singapore, Switzerland and the U.S. Income tax returns are open for examination for the tax years 2014-2019 in Hong Kong, 2015-2019 in Canada, Ireland, and the U.S., 2016-2019 in Singapore and Switzerland, and 2018-2019 in France. As a global organization, the Company may be subject to a variety of transfer pricing or permanent establishment challenges by taxing authorities in various jurisdictions. While management believes that adequate provision has been made in the Consolidated Financial Statements for any potential assessments that may result from tax examinations for all open tax years, the completion of tax examinations for open years may result in changes to the amounts recognized in the Consolidated Financial Statements. Income tax expense (benefit) for the years ended December 31, 2019 , 2018 and 2017 was as follows (in thousands of U.S. dollars): 2019 2018 2017 Current income tax expense (benefit) U.S. $ 12,899 $ (6,872 ) $ (10,031 ) Non U.S. 64,069 33,887 76,425 Total current income tax expense $ 76,968 $ 27,015 $ 66,394 Deferred income tax (benefit) expense U.S. $ (25,850 ) $ (40,318 ) $ 5,538 Non U.S. 4,268 3,256 (58,702 ) Total deferred income tax (benefit) $ (21,582 ) $ (37,062 ) $ (53,164 ) Unrecognized tax (benefit) expense U.S. $ — $ — $ — Non U.S. (2,850 ) 1,113 (2,872 ) Total unrecognized tax (benefit) expense $ (2,850 ) $ 1,113 $ (2,872 ) Total income tax (benefit) expense U.S. $ (12,951 ) $ (47,190 ) $ (4,493 ) Non U.S. 65,487 38,256 14,851 Total income tax expense (benefit) $ 52,536 $ (8,934 ) $ 10,358 Income (loss) before taxes attributable to the Company’s domestic and foreign operations and a reconciliation of the actual income tax rate to the amount computed by applying the effective tax rate of 0% under Bermuda (the Company’s domicile) law to income (loss) before taxes was as follows for the years ended December 31, 2019 , 2018 and 2017 (in thousands of U.S. dollars): 2019 2018 2017 Domestic (Bermuda) $ 715,912 $ 33,759 $ 82,219 Foreign 273,372 (128,687 ) 192,160 Income (loss) before taxes $ 989,284 $ (94,928 ) $ 274,379 Reconciliation of effective tax rate (% of income (loss) before taxes) Expected tax rate 0.0 % 0.0 % 0.0 % Foreign taxes at local expected tax rates 6.5 14.3 11.4 Impact of foreign exchange gains or losses (0.5 ) (4.2 ) (3.2 ) Unrecognized tax benefit 0.2 (1.2 ) (1.0 ) Tax-exempt income and expenses not deductible (0.6 ) 7.3 (5.2 ) Foreign branch tax (1.2 ) (4.1 ) (24.6 ) Valuation allowance 0.7 (12.3 ) 24.8 Outside basis difference in subsidiary — 6.7 — Other 0.2 2.9 1.6 Actual tax rate 5.3 % 9.4 % 3.8 % On September 1, 2019, the Canton of Zurich, Switzerland enacted legislation to reduce the current corporate tax rate income tax rate from 21.15% to 19.7% in 2021. As a result, deferred tax assets and liabilities in Switzerland were revalued at December 31, 2019, resulting in an income tax benefit of $6 million for the year ended December 31, 2019. On December 22, 2017, the United States enacted the Tax Cuts and Jobs Act ("TCJA") to reduce the corporate income tax rate from 35% to 21% effective for taxable years beginning after December 31, 2017, and on December 30, 2017, France enacted legislation to progressively reduce the current corporate income tax rate of 34.43% to specific scheduled effective rates, including the applicable surtax, for each subsequent year end which includes 28.92% on the first €500,000 taxable income and 34.43% on the remainder for 2019 decreasing to 25.83% for 2022. As a result, deferred tax assets and liabilities in the United States and France were revalued at December 31, 2017, resulting in an income tax expense of $5 million for the year ended December 31, 2017. During the year ended December 31, 2018, the Company completed its review of income tax enactment-date effects, including the revaluation of December 31, 2017 deferred tax assets and liabilities in the United States and France, and determined no significant measurement period adjustments were required. The components of net tax assets and liabilities at December 31, 2019 and 2018 were as follows (in thousands of U.S. dollars): December 31, 2019 December 31, 2018 Net tax assets $ 179,813 $ 157,690 Net tax liabilities (135,966 ) (101,525 ) Net tax assets $ 43,847 $ 56,165 December 31, 2019 December 31, 2018 Net current tax assets $ 65,000 $ 102,091 Net deferred tax liabilities (15,464 ) (37,183 ) Net unrecognized tax benefit (5,689 ) (8,743 ) Net tax assets $ 43,847 $ 56,165 Deferred tax assets and liabilities reflect the tax impact of temporary differences between the carrying amounts of assets and liabilities for financial reporting and income tax purposes. Significant components of the net deferred tax assets and liabilities at December 31, 2019 and 2018 were as follows (in thousands of U.S. dollars): December 31, 2019 December 31, 2018 Deferred tax assets Discounting of loss reserves and adjustment to life policy reserves $ 15,924 $ 27,103 Foreign tax credit carryforwards 173,936 161,177 Tax loss carryforwards 80,523 49,721 Unearned premiums 37,226 26,071 Other deferred tax assets 50,738 47,877 $ 358,347 $ 311,949 Valuation allowance (186,907 ) (189,090 ) Deferred tax assets $ 171,440 $ 122,859 Deferred tax liabilities Deferred acquisition costs $ 64,140 $ 45,558 Goodwill and other intangibles 61,773 65,114 Equalization reserves 6,416 16,606 Unrealized appreciation and timing differences on investments 26,752 5,012 Unrealized appreciation and timing differences on foreign exchange revaluations 18,830 21,117 Other deferred tax liabilities 8,993 6,635 Deferred tax liabilities $ 186,904 $ 160,042 Net deferred tax liabilities $ (15,464 ) $ (37,183 ) Realization of the deferred tax assets is dependent on generating sufficient taxable income in future periods. Although realization is not assured, management believes that it is more likely than not that the deferred tax assets will be realized. The valuation allowance recorded at December 31, 2019 relates to a foreign tax credit carryforward of $174 million in Ireland, and net deferred tax assets of $5 million in Canada and $8 million in the United States. The valuation allowance recorded at December 31, 2018 related to a foreign tax credit carryforward of $161 million in Ireland, other deferred foreign tax of $7 million in Ireland, net deferred tax assets of $13 million in Canada and $8 million in the United States. At December 31, 2019 , the deferred tax assets (after valuation allowance) included tax loss carryforwards of $18 million in Singapore and $2 million in Hong Kong that can be carried forward for an unlimited period of time, and $52 million in the United States that predominantly relates to non-life insurance company taxable losses and can be carried forward for 19 - 20 years . At December 31, 2018 , the deferred tax assets (after valuation allowance) included tax loss carryforwards of $17 million in Singapore and $1 million in Hong Kong that can be carried forward for an unlimited period of time, and $21 million in the United States that predominantly relates to non-life insurance company taxable losses and can be carried forward for 20 years . The total amount of unrecognized tax benefits for the years ended December 31, 2019 , 2018 and 2017 was as follows (in thousands of U.S. dollars): January 1, 2019 Changes in tax positions taken during a prior year Tax positions taken during the current year Change as a result of a lapse of the statute of limitations Impact of the change in foreign currency exchange rates December 31, 2019 Unrecognized tax benefits that, if recognized, would impact the effective tax rate $ 6,639 $ (3,560 ) $ 1,258 $ — $ (152 ) $ 4,185 Interest and penalties recognized on the above 2,104 (669 ) 121 — (52 ) 1,504 Total unrecognized tax benefits, including interest and penalties $ 8,743 $ (4,229 ) $ 1,379 $ — $ (204 ) $ 5,689 January 1, 2018 Changes in tax Tax positions Change as a Impact of the December 31, 2018 Unrecognized tax benefits that, if recognized, would impact the effective tax rate $ 6,460 $ 73 $ 346 $ — $ (240 ) $ 6,639 Interest and penalties recognized on the above 1,481 691 — — (68 ) 2,104 Total unrecognized tax benefits, including interest and penalties $ 7,941 $ 764 $ 346 $ — $ (308 ) $ 8,743 January 1, Changes in tax Tax positions Change as a Impact of the December 31, Unrecognized tax benefits that, if recognized, would impact the effective tax rate $ 8,722 $ 281 $ 589 $ (4,115 ) $ 983 $ 6,460 Interest and penalties recognized on the above 968 900 6 (534 ) 141 1,481 Total unrecognized tax benefits, including interest and penalties $ 9,690 $ 1,181 $ 595 $ (4,649 ) $ 1,124 $ 7,941 For the years ended December 31, 2019 , 2018 and 2017 , there were no unrecognized tax benefits that, if recognized, would create a temporary difference between the reported amount of an item in the Company’s Consolidated Balance Sheets and its tax basis. The Company recognizes interest and penalties as Income tax expense (benefit) in the Consolidated Statements of Operations. At December 31, 2019 , an unrecognized tax benefit of $2 million is reasonably expected to reverse within twelve months. |
Share-Based Incentives
Share-Based Incentives | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Incentives | Share-Based Incentives During 2017, the Company designated a new class of voting Class B shares. Class B shares can either be purchased by or granted to certain executives or non-executive directors of the Company at the discretion of the Company in line with the provisions set out in the Certificate of Designation, or any sub-plan or addendum thereto . Grants can be made by the Company twice per year as of March 1 or September 1. The number of shares granted is determined based on a long-term incentive (LTI) award amount divided by the latest U.S. GAAP book value (or common shareholder's equity) per share published as of either December 31 or June 30 (the valuation dates). As a result, Class B shares with a grant date of March 1 are based on the U.S. GAAP book value as of the December 31 valuation date, while Class B shares with a grant date of September 1 are based on the U.S. GAAP book value as of the June 30 valuation date. The granted shares may be issued net of share equivalent to settle related withholding taxes, where applicable. Restricted Class B shares are granted at $ nil consideration and are restricted from sale for a period of up to three years from the date of grant. An acceleration of the restriction period may occur under certain circumstances, including death, permanent disability, or retirement of the shareholder. Notwithstanding these provisions, the Company's Board of Directors has authority to accelerate the restriction period at its own discretion. Restricted Class B shares granted are recognized at fair value over the restriction period. Unrestricted Class B shares can be purchased twice per year at a price based on the latest U.S. GAAP book value as of the most recent valuation date of either June 30 or December 31. Such subscriptions may only be permitted within 30 days following public release of the U.S. GAAP book value of the Company as of the applicable valuation date. Unrestricted Class B shares can be transferred or sold back to the Company, subject to any applicable restrictions as per the Certificate of Designation, at the option of the shareholder. The notices of grant require that, once the restriction period has expired, the employee can only sell or transfer the Class B shares back to the Company provided the employee continues to hold shares in the amount of a minimum of four times their gross annual long-term incentive target value, unless otherwise agreed in writing. The Class B shares are accounted for as liabilities, with 13 million and $16 million included in Accounts payable, accrued expense and other in the Consolidated Balance Sheets at December 31, 2019 and 2018 , respectively. The compensation expense related to Class B awards for the years ended December 31, 2019 , 2018 and 2017 was approximately $10 million , $4 million , and $2 million , respectively, included in Other expenses in the Company's Consolidated Statement of Operations. During 2019 , there were repurchases by the Company of approximately $13 million , which included $6 million restricted Class B shares and $7 million unrestricted Class B shares. The following table provides an activity summary of the Company's restricted and unrestricted Class B shares outstanding: Restricted Class B shares Unrestricted Class B shares Total Class B shares Outstanding December 31, 2017 71,658 183,834 255,492 Granted 90,152 — 90,152 Outstanding December 31, 2018 161,810 183,834 345,644 Granted 117,929 — 117,929 Purchased — 18,875 18,875 Repurchased (100,407 ) (100,273 ) (200,680 ) Outstanding December 31, 2019 179,332 102,436 281,768 |
Retirement Benefit Arrangements
Retirement Benefit Arrangements | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Retirement Benefit Arrangements | Retirement Benefit Arrangements For employee retirement benefits, the Company maintains certain defined contributions plans and other active and frozen defined benefit plans. The majority of the defined benefit obligation at December 31, 2019 relates to a hybrid plan accounted for as a defined benefit plan under U.S. GAAP for the Company’s Zurich office employees (the Zurich Plan). Defined Contribution Plans Contributions are made by the Company, and in some locations, these contributions are supplemented by the local plan participants. Contributions are based on a percentage of the participant’s base salary depending upon competitive local market practice and vesting provisions meeting legal compliance standards and market trends. The accumulated benefits for the majority of these plans vest immediately or over a four-year period. As required by law, certain retirement plans also provide for death and disability benefits and lump sum indemnities to employees upon retirement. The Company incurred expenses for these defined contribution arrangements of $13 million , $13 million and $11 million for the years ended December 31, 2019 , 2018 and 2017 , respectively, included within Other expenses in the Company's Consolidated Statements of Operations. Active Defined Benefit Plan The Company maintains the Zurich Plan, which is classified as a hybrid plan and accounted for as a defined benefit plan under U.S. GAAP. At December 31, 2019 and 2018 , the funded status of the Zurich Plan was as follows (in thousands of U.S. dollars): 2019 2018 Underfunded pension obligation at beginning of year $ 37,105 $ 64,342 Change in pension obligation Service cost $ 8,619 $ 7,203 Interest cost 1,584 1,366 Plan participants’ contributions 3,604 2,938 Actuarial loss (gain) 18,286 (9,439 ) Plan amendments 3,551 (19,945 ) Benefits paid (2,352 ) (4,901 ) Foreign currency adjustments 2,828 (584 ) Change in pension obligation $ 36,120 $ (23,362 ) Change in fair value of plan assets Actual return on plan assets 18,140 958 Employer contributions 7,193 5,245 Plan participants’ contributions 3,604 2,938 Benefits paid (2,352 ) (4,901 ) Foreign currency adjustments 2,198 (365 ) Change in fair value of plan assets $ 28,783 $ 3,875 Underfunded pension obligation at end of year $ 44,442 $ 37,105 Additional information: Projected benefit obligation at end of year (1) $ 197,912 $ 161,792 Fair value of plan assets at end of year $ 153,470 $ 124,687 Underfunded pension obligation at end of year $ 44,442 $ 37,105 Accumulated pension obligation at end of year (2) $ 189,089 $ 152,681 (1) Represents the actuarial present value of all benefits attributed to employee service rendered to December 31, measured using assumptions as to future compensation levels (2) Represents the actuarial present value of benefits (whether vested or non-vested) attributed to employee service rendered and compensation to December 31, with no assumption about future compensation levels At December 31, 2019 and 2018 , the underfunded pension obligation of $ 44 million and $37 million , respectively, was included in Accounts payable, accrued expenses and other in the Consolidated Balance Sheets. The amounts included in Accumulated other comprehensive loss at December 31, 2019 and 2018 were cumulative losses of $16 million (net of $4 million of taxes) and $9 million (net of $2 million of taxes), respectively. The net periodic benefit cost reported in Other expenses in the Consolidated Statements of Operations for the years ended December 31, 2019 , 2018 and 2017 was $ 5 million , $10 million and $11 million , respectively. The investment strategy of the Zurich Plan’s Pension Committee is to achieve a consistent long-term return, which will provide sufficient funding for future pension obligations while limiting risk. The expected long-term rate of return on plan assets is based on the expected asset allocation and assumptions concerning long-term interest rates, inflation rates and risk premiums for equities above the risk-free rates of return. These assumptions take into consideration historical long-term rates of return for the relevant asset categories. The investment strategy is reviewed regularly. In September 2018, the Company approved an amendment to the Zurich Plan related to employer contributions, employee contribution choices, and spousal benefits, which resulted in a reduction of $ 20 million in the unfunded pension obligation recorded within Accumulated other comprehensive loss in the Consolidated Balance Sheet as of December 31, 2018. On January 1, 2019, the pension scheme moved from a fully insured scheme with a guaranteed level of return to a partially insured scheme, both under the same pension provider (AXA Winterthur), participating in a single investment pool. On the set-up of the new partially insured plan, a coverage ratio of approximately 111% % was applied to the assets to reflect the change from the fully insured to the partially insured scheme. As at December 31, 2019 the coverage ratio was 115% % based on the performance of the assets. The actual return on plan assets for the year ended December 31, 2019 was $18 million , which included $5 million recognized in net income, and a $13 million reduction of the unfunded pension obligation recorded within Accumulated other comprehensive loss in the Consolidated Balance Sheet primarily related to the one-time impact of transitioning to the new scheme. The fair value of the Zurich Plan’s assets at December 31, 2019 and 2018 were an investment pool of funds, including cash, of $153 million and $125 million , respectively. The partially insured funds comprise the accumulated pension plan contributions and investment returns thereon. These funds meet the definition of Level 2 inputs of the fair value hierarchy as defined in Note 3 (a) . A transition group of pensioners elected to remain under the previous pension arrangement. This resulted in a plan amendment of $ 4 million which increased the unfunded pension obligation recorded within Accumulated other comprehensive loss in the Consolidated Balance Sheet as at December 31, 2019. This amount will be amortized into net income over the remaining years of service of active participants starting in 2020. The assumptions used to determine the Zurich Plan’s pension obligation and net periodic benefit cost for the years ended December 31, 2019 , 2018 and 2017 were as follows: 2019 2018 2017 Pension obligation Net periodic benefit cost Pension obligation Net periodic benefit cost Pension obligation Net periodic benefit cost Discount rate 0.25 % 1.00 % 1.00 % 0.75 % 0.75 % 0.75 % Expected long-term return on plan assets — 3.50 % — 0.75 % — 0.75 % Rate of compensation increase 2.00 % 2.00 % 2.25 % 2.25 % 2.25 % 2.00 % At December 31, 2019 , estimated employer contributions to be paid in 2020 related to the Zurich Plan were $ 7 million and future benefit payments were estimated to be paid as follows (in thousands of U.S. dollars): Year Amount 2020 $ 5,175 2021 $ 6,841 2022 $ 6,547 2023 $ 7,073 2024 $ 7,631 2025 to 2029 $ 45,389 The Company does not believe that any of the Zurich Plan’s assets will be returned to the Company during 2020 . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | C ommitmen ts and Contingencies (a) Concentration o f Credit Risk Fixed matur ities The Company’s investment portfolio is managed following prudent standards of diversification and a prudent investment philosophy. The Company is not exposed to any significant credit concentration risk on its investments, except for debt securities issued by the U.S. government and government sponsored enterprises, and other highly rated non-U.S. sovereign governments’ and supranational organizations' securities. At December 31, 2019 , other than the U.S. government and government sponsored enterprises and the World Bank, the Company’s fixed maturity investment portfolio did not contain exposure to any non-U.S. sovereign government or any other issuer that accounted for more than 10% of the Company’s shareholders’ equity. The investment in World Bank at December 31, 2019 totaled $1,110 million and is included in the Non-U.S. sovereign government, supranational and government related within Fixed maturities on the Consolidated Balance Sheets. At December 31, 2018 , other than the U.S. government and government sponsored enterprises, the Company’s fixed maturity investment portfolio did not contain exposure to any non-U.S. sovereign government or any other issuer that accounted for more than 10% of the Company’s shareholders’ equity. The Company keeps cash and cash equivalents in several banks and ensures that there are no significant concentrations of credit risk in any one bank. Deriva tives T he Company’s investment strategy allows for the use of derivative instruments, subject to strict limitations. Derivative instruments may be used to replicate investment positions and for the purpose of managing overall currency risk, market exposures and portfolio durati on, for hedging certain investments, or for enhancing investment performance that would be allowed under the Company’s investment policy if implemented in other ways. The Company is exposed to credit risk in the event of non-performance by the counterparties to the Company’s derivative contracts. However, the Company diversifies the counterparties to its derivative contracts to reduce credit risk, and because the counterparties to these contracts are high credit quality international banks, the Company does not anticipate non-performance. These contracts are generally of short duration and settle on a net basis. The difference between the contract amounts and the related market value represents the Company’s maximum credit exposure. Underwriting oper ations The Company is also exposed to credit risk in its underwriting operations, most notably in the credit/surety line. Loss experience in these lines of business is cyclical and is affected by the state of the general economic environment. The Company provides its clients i n these lines of business with reinsurance protection against credit deterioration, defaults or other types of financial non-performance of or by the underlying credits that are the subject of the reinsurance provided and, accordingly, the Company is exposed to the credit risk of those credits. The Company mitigates the risks associated with these credit-sensitive lines of business through the use of risk management techniques such as risk diversification, careful monitoring of risk aggregations and accumulations and, at times, through the use of retrocessional reinsurance protection and the purchase of credit default, total return and interest rate swaps. The Company has exposure to credit risk as it relates to its business written through brokers, if any of the Company’s brokers is unable to fulfill their contractual obligations with respect to payments to the Company. In addition, in some jurisdictions, if the broker fails to make payments to the insured under the Company’s policy, the Company might remain liable to the insured for the deficiency. The Company’s exposure to such credit risk is somewhat mitigated in certain jurisdictions by contractual terms. The Company has exposure to credit risk related to reinsurance balances receivable and reinsurance recoverable on paid and unpaid losses. The credit risk exposure related to these balances is mitigated by several factors, including but not limited to, credit checks performed as part of the underwriting process, monitoring of aged receivable balances and the contractual right to offset premiums receivable or funds held balances against non-life reserves. The Company regularly reviews its reinsurance recoverable balances to estimate an allowance for uncollectible amounts based on quantitative and qualitative factors. At December 31, 2019 and 2018 , the Company recorded a provision for uncollectible premiums receivable of $7 million and $5 million , respectively. See also Note 8 for discussion of credit risk related to reinsurance recoverable on paid and unpaid losses. The Company is also subject to the credit risk of its cedants in the event of insolvency or the cedant’s failure to honor the value of funds held balances for any other reason. However, the Company’s credit risk in some jurisdictions is mitigated by a mandatory right of offset of amounts payable by the Company to a cedant against amounts due to the Company. In certain other jurisdictions the Company is able to mitigate this risk, depending on the nature of the funds held arrangements, to the extent that the Company has the contractual ability to offset any shortfall in the payment of the funds held balances with amounts owed by the Company to cedants for losses payable and other amounts contractually due. (b) Lease Arrangements The Company adopted a new lease accounting standard on January 1, 2019 (see Note 2 (s) ). The Company leases office space under operating leases expiring in various years through 2038. At the lease commencement, the Company determines the classification of each lease as either a finance lease or an operating lease. The Company currently only has leases classified as operating and the lease expense is recognized on a straight-line basis over the lease term. Operating lease right-of-use assets and operating lease liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term. Variable lease payments are excluded from these lease payments to the extent they are not based on consumer price index or a market index and are recognized in the period in which the obligation for those payments is incurred. Many of the Company's lease terms include options to extend or terminate the lease at the discretion of the Company, and are reflected in the le ase measurement only if the Company is reasonably certain of exercising those options. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company has lease agreements with lease and non-lease components, such as common-area maintenance costs. The Company has elected the practical expedient to account for lease components together with non-lease components as a single lease component for all real estate leases. As most leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. The following table summarizes the balances related to the Company's total lease expense and provides supplemental other information related to operating leases for the year ended December 31, 2019 (in thousands of U.S. dollars): 2019 Operating lease costs $ 15,893 Variable lease costs 2,598 Sublease income (1,515 ) Total lease costs $ 16,976 Other information: Operating lease right-of-use assets (1) $ 75,774 Operating lease liabilities (2) $ 85,777 Operating lease right-of-use assets obtained in exchange for lease obligations, non-cash (3) $ 86,157 Operating cash outflows from operating leases $ 11,305 Weighted-average remaining lease term on operating leases (4) 9.2 Yrs Weighted-average discount rate on operating leases (5) 2.6 % (1) Included in Other assets in the Consolidated Balance Sheet (2) Included in Accounts payable, accrued expenses and other in the Consolidated Balance Sheet (3) Includes transition amounts related to the adoption of the new lease guidance in 2019 (4) Weighted-average remaining lease term is calculated on the basis of the remaining lease term and the lease liability balance for each lease as of the reporting date (5) Weighted-average discount rate is calculated on the basis of the discount rate for the lease that was used to calculate the lease liability balance for each lease as of the reporting date and the remaining balance of the lease payments for each lease as of the reporting date The following table shows the contractual maturities of the Company's operating lease liabilities at December 31, 2019 (in thousands of U.S. dollars): Year Expected cash flows 2020 $ 17,010 2021 12,295 2022 10,376 2023 9,647 2024 8,568 2025-2038 38,902 Discount (11,021 ) Total discounted operating lease liabilities $ 85,777 The Company has additional lease commitments of $ 25 million related to leases that will not commence until 2021, with contractual lease terms of up to 10 years . As these leases have not yet commenced, the commitments are not included in the maturity table above or in the Consolidated Balance Sheets at December 31, 2019. (c) Other Agreements The Company has entered into service agreements that provide for business and information technology support and computer equipment. Future payments under these contracts amount to $28 million , with $ 20 million and $ 4 million to be paid during 2020 and 2021 , respectively, and the remainder to be paid through 2024 . The Company has entered into certain investments, including investments in VIEs (see Note 4 (e) ), with unfunded capital commitments. As of December 31, 2019 , the Company expects to fund capital commitments totaling $855 million with $378 million , $307 million , $122 million , and $48 million to be paid during 2020 , 2021 , 2022 , and 2023 , respectively. The Company has committed to a 10 -year structured letter of credit facility issued by a high credit quality international bank which has a final maturity of December 31, 2024 . At December 31, 2019 and 2018 , the Company’s participation in the facility was $69 million and $67 million , respectively. At December 31, 2019 , the letter of credit facility has not been drawn down and can only be drawn down in the event of certain specific scenarios, which the Company considers remote. Unless canceled by the bank, the credit facility automatically extends for one year, each year until maturity. (d) Legal Proceedings Litigation The Company’s reinsurance subsidiaries, and the insurance and reinsurance industry in general, are subject to litigation and arbitration in the normal course of their business operations. In addition to claims litigation and disputes, the Company and its subsidiaries may be subject to lawsuits and regulatory actions in the normal course of business that do not arise from or directly relate to claims on reinsurance contracts. This category of business litigation typically involves, among other things, allegations of underwriting errors or omissions, employment claims or regulatory activity. While the outcome of business litigation cannot be predicted with certainty, the Company will dispute all allegations against the Company and/or its subsidiaries that management believes are without merit. At December 31, 2019 , the Company was not a party to any litigation or arbitration that it believes could have a material effect on the financial condition, results of operations or liquidity of the Company. In March 2019, a cedant (“the Cedant”) brought a motion for a declaratory judgment against the Company in the Québec Superior Court seeking a declaration that the Cedant had properly exercised its right, pursuant to an agreement between the parties, to recapture certain portfolios of life reinsurance contracts that the Cedant had retroceded to the Company. The Cedant alleges that such recapture entitles it to a payment from the Company of approximately CAD $144.7 million (approximately U.S. $110 million ). The Company believes it has strong defenses to the Cedant’s claim, including that the Cedant failed to unconditionally exercise its alleged recapture right within the specified contractual parameters, and that even if the Cedant had done so, the recapture payment requested is significantly overstated. If the Cedant's claim prevails in its entirety, the Company could incur a loss, calculated as the value of the recapture payment reduced by the net reserves recorded by the Company related to the in-force business subject to recapture. However, the Company cannot reasonably predict the result of this matter. As the Company believes that it is not probable that a loss has been or is expected to be incurred for this litigation, no accrual for a contingent liability has been made as at December 31, 2019 . |
Credit Agreements
Credit Agreements | 12 Months Ended |
Dec. 31, 2019 | |
Line of Credit Facility [Abstract] | |
Credit Agreements | Credit Agreements In the normal course of its operations, the Company enters into agreements with financial institutions to obtain unsecured and secured letter of credit facilities. At December 31, 2019 , the total amount of such credit facilities available to the Company was approximately $602 million , with the significant facilities as follows: • $400 million combined credit facility, with the first $100 million being unsecured and any further utilization secured. This credit facility matures each year on November 14 , and automatically extends for a further year, unless canceled by either counterparty • $150 million secured credit facility, that matures on December 31, 2021 , and automatically extends for a further year unless canceled by either counterparty • $50 million secured credit facility, that matures on December 21, 2021 , and automatically extends for a further year unless canceled by either counterparty. Under the terms of certain reinsurance agreements, irrevocable letters of credit were issued for a total of $102 million on an unsecured basis and $338 million on a secured basis at December 31, 2019 in respect of losses and unearned premium reserves. The committed secured credit facilities maintained by the Company are used for the issuance of letters of credit which must be fully secured with either cash, government bonds and/or investment grade bonds. The agreements include default covenants, which could require the Company to fully secure the outstanding letters of credit to the extent that the facility is not already fully secured and/or result in the Company not being allowed to issue any new letters of credit. At December 31, 2019 , no conditions of default existed under these facilities. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions During 2019 and 2018 , the Company declared and paid to EXOR Nederland N.V. common share dividends totaling $ 199 million and $48 million , respectively. In the normal course of its underwriting activities, the Company has entered into reinsurance agreements with companies affiliated with the Company. In the normal course of its investment operations, the Company bought or held securities of companies affiliated with the Company, including the following: • In 2018, the Company entered into an agreement with Exor to invest in a newly formed limited partnership, Exor Seeds L.P. At December 31, 2019 and 2018, the carrying value of the Company's investment in the limited partnership was $32 million and $11 million , respectively, with the increase from 2018 driven primarily by additional capital contributions. This investment is accounted for using the equity method and is included within Other invested assets in the Consolidated Balance Sheets. • In 2017, the Company invested $500 million in two Exor managed public equity funds. At December 31, 2019 and 2018 , the carrying value of these investments totaled $948 million and $563 million , respectively. These investments are recorded at fair value and are included within Equities in the Consolidated Balance Sheets. Net realized and unrealized investment gains related to these funds of $385 million , $12 million , and $51 million were recorded in the Consolidated Statements of Operations for the years ended December 31, 2019, 2018 and 2017, respectively. • In 2017, the Company purchased certain real estate investments from Almacantar, an equity method investee, for total cash consideration of £55 million ( $83 million ). At December 31, 2019 and 2018 , the carrying value of real estate was $72 million and $73 million , respectively, with the changes in carrying value from original cost related to impairment losses and the foreign currency impact of translating the GBP denominated balance to U.S. dollars. The years ended December 31, 2019 and 2018 included impairment losses of $3 million and $6 million , respectively, related to these real estate investments. These investments are classified as Investments in real estate in the Consolidated Balance Sheets. Refer also to Note 4 (f) for a discussion of the Company's interest in Almacantar. During the years ended December 31, 2019 , 2018 and 2017 , the Company entered into various agreements with Exor whereby Exor provides services in exchange for fees as follows: • advisory services related to certain real estate investments where the Company paid approximately $221 thousand , $45 thousand , and $45 thousand for services rendered in 2019 , 2018 and 2017, respectively • services commencing in September 2018 for investment advisory and use of certain office space, where the Company paid $254 thousand and $273 thousand related to services provided in 2019 and 2018, respectively • certain advisory services for a fixed annual fee of $500 thousand in 2019 and 2018. Fees paid in 2017 were less than $500 thousand , as the fixed annual fee was increased from €300 thousand to $500 thousand effective April 1, 2017. The transactions between related parties discussed above were entered into at arm's-length. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company monitors the performance of its operations in three segments: Property and Casualty (P&C), Specialty and Life and Health. The business in the P&C and Specialty segments is collectively referred to as Non-life business. P&C, Specialty and Life and Health each separately represent markets that are reasonably homogeneous in terms of client types, buying patterns, underlying risk patterns and approach to risk management. The P&C segment is comprised of property and casualty business underwritten, including property catastrophe, facultative and U.S. health risks. The Specialty segment is comprised of specialty business underwritten, including treaty and facultative contracts. The Life and Health segment is comprised of mortality, morbidity and longevity business. Management measures results for the P&C and Specialty segments on the basis of the loss ratio, acquisition ratio, technical ratio, other expense ratio and combined ratio (all defined below). Management measures results for the Life and Health segment on the basis of the allocated underwriting result, which includes underwriting result and net investment income allocated to life business. The segment results for the years ended December 31, 2019 , 2018 and 2017 are presented below (in millions of U.S. dollars, except ratios). Segment Information For the year ended December 31, 2019 P&C segment Specialty segment Total Non-life Life and Health segment Corporate and Other Total Gross premiums written $ 3,579 $ 2,213 $ 5,792 $ 1,493 $ — $ 7,285 Net premiums written $ 3,302 $ 2,137 $ 5,439 $ 1,470 $ — $ 6,909 Increase in unearned premiums (231 ) (150 ) (381 ) (3 ) — (384 ) Net premiums earned $ 3,071 $ 1,987 $ 5,058 $ 1,467 $ — $ 6,525 Losses and loss expenses (2,167 ) (1,496 ) (3,663 ) (1,263 ) 3 (4,923 ) Acquisition costs (783 ) (523 ) (1,306 ) (149 ) — (1,455 ) Technical result $ 121 $ (32 ) $ 89 $ 55 $ 3 $ 147 Other (loss) income (1 ) — (1 ) 15 1 15 Other expenses (80 ) (28 ) (108 ) (69 ) (193 ) (370 ) Underwriting result $ 40 $ (60 ) $ (20 ) $ 1 n/a $ (208 ) Net investment income 72 377 449 Allocated underwriting result $ 73 n/a n/a Net realized and unrealized investment gains 887 887 Interest expense (40 ) (40 ) Loss on redemption of debt (15 ) (15 ) Amortization of intangible assets (12 ) (12 ) Net foreign exchange losses (87 ) (87 ) Income tax expense (53 ) (53 ) Interest in earnings of equity method investments 16 16 Net income n/a $ 937 Loss ratio (1) 70.6 % 75.3 % 72.4 % Acquisition ratio (2) 25.5 26.3 25.8 Technical ratio (3) 96.1 % 101.6 % 98.2 % Other expense ratio (4) 2.6 1.4 2.1 Combined ratio (5) 98.7 % 103.0 % 100.3 % (1) Loss ratio is obtained by dividing losses and loss expenses by net premiums earned. (2) Acquisition ratio is obtained by dividing acquisition costs by net premiums earned. (3) Technical ratio is defined as the sum of the loss ratio and the acquisition ratio. (4) Other expense ratio is obtained by dividing other expenses by net premiums earned. (5) Combined ratio is defined as the sum of the technical ratio and the other expense ratio. Segment Information For the year ended December 31, 2018 P&C segment Specialty Total Non-life Life and Health segment Corporate and Other Total Gross premiums written $ 3,015 $ 2,050 $ 5,065 $ 1,235 $ — $ 6,300 Net premiums written $ 2,722 $ 1,870 $ 4,592 $ 1,211 $ — $ 5,803 (Increase) decrease in unearned premiums (187 ) (103 ) (290 ) 1 — (289 ) Net premiums earned $ 2,535 $ 1,767 $ 4,302 $ 1,212 $ — $ 5,514 Losses and loss expenses (2,073 ) (1,096 ) (3,169 ) (1,025 ) — (4,194 ) Acquisition costs (606 ) (502 ) (1,108 ) (129 ) — (1,237 ) Technical result $ (144 ) $ 169 $ 25 $ 58 $ — $ 83 Other income 30 — 30 13 7 50 Other expenses (75 ) (27 ) (102 ) (51 ) (153 ) (306 ) Underwriting result $ (189 ) $ 142 $ (47 ) $ 20 n/a $ (173 ) Net investment income 66 350 416 Allocated underwriting result $ 86 n/a n/a Net realized and unrealized investment losses (390 ) (390 ) Interest expense (43 ) (43 ) Amortization of intangible assets (35 ) (35 ) Net foreign exchange gains 119 119 Income tax benefit 9 9 Interest in earnings of equity method investments 11 11 Net loss n/a $ (86 ) Loss ratio 81.8 % 62.0 % 73.7 % Acquisition ratio 23.9 28.4 25.8 Technical ratio 105.7 % 90.4 % 99.5 % Other expense ratio 3.0 1.5 2.4 Combined ratio 108.7 % 91.9 % 101.9 % Segment Information For the year ended December 31, 2017 P&C segment Specialty Total Life and Health segment Corporate Total Gross premiums written $ 2,671 $ 1,934 $ 4,605 $ 983 $ — $ 5,588 Net premiums written $ 2,375 $ 1,780 $ 4,155 $ 965 $ — $ 5,120 (Increase) decrease in unearned premiums (45 ) (55 ) (100 ) 5 — (95 ) Net premiums earned $ 2,330 $ 1,725 $ 4,055 $ 970 $ — $ 5,025 Losses and loss expenses (2,051 ) (955 ) (3,006 ) (835 ) — (3,841 ) Acquisition costs (534 ) (489 ) (1,023 ) (97 ) — (1,120 ) Technical result $ (255 ) $ 281 $ 26 $ 38 $ — $ 64 Other (loss) income — (1 ) (1 ) 14 2 15 Other expenses (88 ) (33 ) (121 ) (44 ) (183 ) (348 ) Underwriting result $ (343 ) $ 247 $ (96 ) $ 8 n/a $ (269 ) Net investment income 60 342 402 Allocated underwriting result $ 68 n/a n/a Net realized and unrealized investment gains 232 232 Interest expense (42 ) (42 ) Loss on redemption of debt (2 ) (2 ) Amortization of intangible assets (25 ) (25 ) Net foreign exchange losses (108 ) (108 ) Income tax expense (10 ) (10 ) Interest in earnings of equity method investments 86 86 Net income n/a $ 264 Loss ratio 88.0 % 55.4 % 74.1 % Acquisition ratio 22.9 28.4 25.2 Technical ratio 110.9 % 83.8 % 99.3 % Other expense ratio 3.8 1.9 3.0 Combined ratio 114.7 % 85.7 % 102.3 % The following table provides the geographic distribution of gross premiums written based on the location of the underlying risk for the years ended December 31, 2019 , 2018 and 2017 (in millions of U.S. dollars, except percentages): 2019 2018 2017 North America $ 3,752 51 % $ 2,929 47 % $ 2,620 47 % Europe 2,155 30 2,152 34 1,866 33 Asia, Australia and New Zealand 835 11 699 11 565 10 Latin America and the Caribbean 264 4 260 4 267 5 Middle East, Africa, Russia and the Commonwealth of Independent States (CIS) 279 4 260 4 270 5 Total $ 7,285 100 % $ 6,300 100 % $ 5,588 100 % The following table provides the gross premiums written by segment and line of business for the years ended December 31, 2019 , 2018 and 2017 (in millions of U.S. dollars, except percentages): 2019 2018 2017 P&C Casualty $ 1,394 $ 1,052 $ 804 Property 644 615 547 Catastrophe 537 478 481 Motor 400 308 262 U.S. health 391 405 416 Multiline and other 213 157 161 Total P&C $ 3,579 $ 3,015 $ 2,671 Specialty Financial risks $ 587 $ 549 $ 490 Agriculture 483 506 557 Aviation and space 286 228 219 Multiline and other 276 307 199 Energy 183 79 63 Property 151 112 90 Marine 132 103 154 Engineering 102 124 117 Casualty 13 42 45 Total Specialty $ 2,213 $ 2,050 $ 1,934 Life and Health $ 1,493 $ 1,235 $ 983 Total $ 7,285 $ 6,300 $ 5,588 The Company produces its business both through brokers and through direct relationships with insurance company clients. None of the Company’s cedants individually accounted for more than 4% of total gross premiums written during each of the years ended December 31, 2019 , 2018 and 2017 . The Company has two brokers that individually accounted for 10% or more of its gross premiums written during the years ended December 31, 2019 , 2018 and 2017 , as follows: 2019 2018 2017 Marsh (including Guy Carpenter) 28 % 22 % 25 % Aon Group (including the Benfield Group) 22 % 22 % 22 % The following table summarizes the percentage of gross premiums written through these two brokers by segment for the years ended December 31, 2019 , 2018 and 2017 : 2019 2018 2017 P&C 60 % 53 % 53 % Specialty 62 % 52 % 56 % Life and Health 8 % 11 % 12 % |
Other Expenses
Other Expenses | 12 Months Ended |
Dec. 31, 2019 | |
Other Expenses [Abstract] | |
Other expenses | Other Expenses For the years ended December 31, 2019 , 2018 and 2017 , the Company recorded $ 13 million , $11 million and $29 million , respectively, of reorganization related costs. In addition, for the year ended December 31, 2017, the Company recorded $4 million of transaction costs related to the acquisition of Aurigen. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On February 9, 2020, our ultimate parent company, EXOR N.V., announced that it had entered into exclusive discussions with Covéa Cooperations S.A. regarding a possible all-cash acquisition of PartnerRe. Should these discussions result in the execution of a binding agreement for the sale of the common shares of the Company, on the terms and subject to satisfaction of the conditions in such binding agreement, the consummation of such transaction would result in a change of control of the Company. These discussions are ongoing and there is no certainty that they will result in a transaction. |
SCHEDULE I - Consolidated Summa
SCHEDULE I - Consolidated Summary of Investments Other Than Investments in Related Parties | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Abstract] | |
Consolidated Summary of Investments Other Than Investments in Related Parties | PartnerRe Ltd. Consolidated Summary of Investments Other Than Investments in Related Parties at December 31, 2019 (Expressed in thousands of U.S. dollars) Type of investment Cost (1) Fair Value Amount at which shown in the balance sheet Fixed maturities U.S. government and government sponsored enterprises $ 1,409,996 $ 1,421,716 $ 1,421,716 U.S. states, territories and municipalities 124,602 157,234 157,234 Non-U.S. sovereign government, supranational and government related 3,232,352 3,255,154 3,255,154 Corporate bonds 2,583,276 2,662,089 2,662,089 Asset-backed securities 18,238 18,228 18,228 Residential mortgage-backed securities 3,100,387 3,166,290 3,166,290 Other mortgage-backed securities 86 3 3 Fixed maturities $ 10,468,937 $ 10,680,714 $ 10,680,714 Equities Banks, trust and insurance companies $ 26,234 $ 46,404 $ 46,404 Industrial, miscellaneous and all other 795,196 1,248,760 1,248,760 Equities $ 821,430 $ 1,295,164 $ 1,295,164 Short-term investments $ 1,003,508 $ 1,003,421 $ 1,003,421 Other invested assets (2) $ 2,399,885 $ 3,266,009 Investments in real estate (3) $ — $ 71,834 Total $ 15,379,184 $ 16,317,142 (1) Original cost of fixed maturities reduced by repayments and adjusted for amortization of premiums or accrual of discounts. Original cost of equity securities. (2) Other invested assets shown in the Consolidated Balance Sheets in Item 18 also includes the Company’s investments accounted for using the equity method of accounting of $ 866 million . (3) Investments in real estate are carried at original cost less any impairments. |
SCHEDULE II - Condensed Financi
SCHEDULE II - Condensed Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Financial Information of Parent Company Only | PartnerRe Ltd. Condensed Balance Sheets—Parent Company Only (Expressed in thousands of U.S. dollars, except parenthetical share and per share data) December 31, 2019 December 31, 2018 Assets Fixed maturities, at fair value (amortized cost: 2019, $56,096; 2018, $109,824) $ 58,161 $ 109,951 Short-term investments, at fair value (amortized cost: 2019, $3,993; 2018, $nil) 3,993 — Cash and cash equivalents 4,512 1,081 Investments in subsidiaries 8,896,352 8,831,161 Intercompany loans and balances receivable 219,815 657,156 Other 4,422 4,588 Total assets $ 9,187,255 $ 9,603,937 Liabilities Intercompany loans and balances payable (1) $ 1,884,499 $ 3,061,210 Accounts payable, accrued expenses and other 32,587 26,213 Total liabilities 1,917,086 3,087,423 Shareholders’ Equity Common shares (par value $0.00000001; issued and outstanding: 100,000,000 shares) — — Preferred shares (par value $1.00; issued and outstanding: 28,169,062 shares; aggregate liquidation value: $704,227) 28,169 28,169 Additional paid-in capital 2,396,530 2,396,530 Accumulated other comprehensive loss (75,925 ) (138,634 ) Retained earnings 4,921,395 4,230,449 Total shareholders’ equity 7,270,169 6,516,514 Total liabilities and shareholders’ equity $ 9,187,255 $ 9,603,937 (1) The parent has fully and unconditionally guaranteed on a subordinated basis all obligations of PartnerRe Finance II Inc., an indirect 100% owned finance subsidiary of the parent, related to the remaining $62 million aggregate principal amount of 6.440% Fixed-to-Floating Rate Junior Subordinated CENts. The parent’s obligations under this guarantee are unsecured and rank junior in priority of payments to the parent’s senior notes. The parent has fully and unconditionally guaranteed all obligations of PartnerRe Finance B, indirect 100% owned finance subsidiary of the parent, and PartnerRe Finance Ireland DAC, direct 100% owned subsidiary of the parent, related to the issuance of th e 3.700% senior notes and 1.250% senior notes, respectively. The parent’s obligations under these guarantees are senior and unsecured and rank equally with all other senior unsecured indebtedness of the parent. SCHEDULE II PartnerRe Ltd. Condensed Statements of Operations and Comprehensive Income (Loss) —Parent Company Only (Expressed in thousands of U.S. dollars) For the year ended December 31, 2019 December 31, 2018 December 31, 2017 Revenues Net investment income $ 1,620 $ 1,844 $ 1,890 Interest income on intercompany loans 12,215 13,015 12,201 Net realized and unrealized investment gains (losses) 2,594 (1,632 ) 91 Other income (loss) 112 (6,778 ) 8,418 Total revenues 16,541 6,449 22,600 Expenses Other expenses 51,115 25,792 40,131 Interest expense on intercompany loans 14,757 15,041 12,085 Net foreign exchange (gains) losses (26,885 ) (50,276 ) 35,753 Total expenses 38,987 (9,443 ) 87,969 (Loss) income before equity in net income (loss) of subsidiaries (22,446 ) 15,892 (65,369 ) Equity in net income (loss) of subsidiaries 959,194 (101,886 ) 329,390 Net income (loss) 936,748 (85,994 ) 264,021 Preferred dividends 46,416 46,416 46,416 Net income (loss) attributable to common shareholder $ 890,332 $ (132,410 ) $ 217,605 Comprehensive income (loss) Net income (loss) $ 936,748 $ (85,994 ) $ 264,021 Other comprehensive income (loss) 62,709 (48,353 ) (15,712 ) Comprehensive income (loss) $ 999,457 $ (134,347 ) $ 248,309 SCHEDULE II PartnerRe Ltd. Condensed Statements of Cash Flows—Parent Company Only (Expressed in thousands of U.S. dollars) For the year ended December 31, 2019 December 31, 2018 December 31, 2017 Cash flows from operating activities Net income (loss) $ 936,748 $ (85,994 ) $ 264,021 Adjustments to reconcile net income to net cash used in operating activities: Equity in net (income) loss of subsidiaries (959,194 ) 101,886 (329,390 ) Other, net (17,167 ) (29,283 ) 25,239 Net cash used in operating activities (39,613 ) (13,391 ) (40,130 ) Cash flows from investing activities Advances to/from subsidiaries, net (282,233 ) (261,666 ) 11,138 Net issue of intercompany loans receivable and payable (1) 276,332 299,279 — Sales and redemptions of fixed maturities 72,724 65,025 40,379 Sales and redemptions of short-term investments 2,189 — — Purchases of fixed maturities (18,621 ) (124,932 ) (16,414 ) Purchases of short-term investments (6,173 ) — — Other, net (29 ) (680 ) 414 Net cash provided by (used in) investing activities 44,189 (22,974 ) 35,517 Net cash used in financing activities (2) — — — Effect of foreign exchange rate changes on cash (1,145 ) 10,765 8,144 Increase (decrease) in cash and cash equivalents 3,431 (25,600 ) 3,531 Cash and cash equivalents—beginning of year 1,081 26,681 23,150 Cash and cash equivalents—end of year $ 4,512 $ 1,081 $ 26,681 (1) During the year ended December 31, 2019, the Company recorded non-cash dividends received from subsidiaries and non-cash capital contributions to subsidiaries of $979 million and $22 million , respectively, with corresponding changes to the intercompany loan balances. These non-cash transactions have therefore been excluded from the Condensed Statements of Cash Flows—Parent Company Only. (2) During the years ended December 31, 2019, 2018 and 2017, dividends paid to common and preferred shareholders of $ 246 million , $94 million and $191 million , respectively, were paid by a Bermuda subsidiary on behalf of the parent and have therefore been excluded from the Condensed Statements of Cash Flows—Parent Company Only. |
SCHEDULE III - Supplementary In
SCHEDULE III - Supplementary Insurance Information | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract] | |
Supplementary Insurance Information | PartnerRe Ltd. Supplementary Insurance Information For the years ended December 31, 2019 , 2018 and 2017 (Expressed in thousands of U.S. dollars) Deferred Policy Acquisition Costs Gross Reserves Unearned Premiums Other Benefits Payable Premium Revenue Net Investment Income (1) Losses Incurred Acquisition Costs Other Expenses (2) Net Premiums Written 2019 Non-life $ 640,442 $ 10,357,981 $ 2,420,009 $ — $ 5,058,056 $ N/A $ 3,662,891 $ 1,306,388 $ 107,414 $ 5,438,807 Life and Health 234,166 — 13,851 2,417,044 1,467,162 71,756 1,263,016 149,074 69,191 1,470,251 Corporate and Other — 5,402 — — — 376,782 (2,751 ) — 193,364 — Total $ 874,608 $ 10,363,383 $ 2,433,860 $ 2,417,044 $ 6,525,218 $ 448,538 $ 4,923,156 $ 1,455,462 $ 369,969 $ 6,909,058 2018 Non-life $ 553,535 $ 9,885,913 $ 2,062,736 $ — $ 4,301,862 $ N/A $ 3,168,647 $ 1,107,760 $ 102,397 $ 4,592,282 Life and Health 189,511 — 10,217 2,198,080 1,211,948 65,567 1,024,608 129,704 51,055 1,211,082 Corporate and Other — 9,463 — — — 350,354 — — 152,116 — Total $ 743,046 $ 9,895,376 $ 2,072,953 $ 2,198,080 $ 5,513,810 $ 415,921 $ 4,193,255 $ 1,237,464 $ 305,568 $ 5,803,364 2017 Non-life $ 493,196 $ 10,102,172 $ 1,807,013 $ — $ 4,055,191 $ N/A $ 3,005,567 $ 1,023,065 $ 121,134 $ 4,154,809 Life and Health 179,111 — 11,986 2,098,759 969,790 59,895 835,415 96,708 44,346 965,117 Corporate and Other — — — — — 342,176 — — 182,918 — Total $ 672,307 $ 10,102,172 $ 1,818,999 $ 2,098,759 $ 5,024,981 $ 402,071 $ 3,840,982 $ 1,119,773 $ 348,398 $ 5,119,926 (1) Because the Company does not manage its assets by segment, net investment income is not allocated to the Non-life business of the reinsurance operations. However, because of the interest-sensitive nature of some of the Company’s Life products, net investment income is considered in management’s assessment of the profitability of the Life and Health segment. (2) Other expenses are a component of underwriting result for the Non-life business and Life and Health segment as the Company allocates certain other expenses to its operating segments that vary with business written. |
SCHEDULE IV - Reinsurance
SCHEDULE IV - Reinsurance | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |
Reinsurance | PartnerRe Ltd. Reinsurance For the years ended December 31, 2019 , 2018 and 2017 (Expressed in thousands of U.S. dollars) Gross amount Ceded to other companies Assumed from other companies Net amount Percentage of amount assumed to net 2019 Life reinsurance in force (1) $ — $ 17,632,050 $ 359,376,352 $ 341,744,302 105 % Premiums earned Life $ — $ 22,559 $ 1,427,723 $ 1,405,164 102 % Accident and health — — 61,998 61,998 100 % P&C (2) 275,923 375,301 5,157,434 5,058,056 102 % Total premiums $ 275,923 $ 397,860 $ 6,647,155 $ 6,525,218 102 % 2018 Life reinsurance in force (1) $ — $ 16,349,433 $ 349,064,323 $ 332,714,890 105 % Premiums earned Life $ — $ 24,025 $ 1,184,604 $ 1,160,579 102 % Accident and health — — 51,369 51,369 100 % P&C (2) 248,501 450,096 4,503,457 4,301,862 105 % Total premiums $ 248,501 $ 474,121 $ 5,739,430 $ 5,513,810 104 % 2017 Life reinsurance in force (1) $ — $ 15,136,473 $ 295,171,940 $ 280,035,467 105 % Premiums earned Life $ — $ 18,094 $ 944,752 $ 926,658 102 % Accident and health — — 43,132 43,132 100 % P&C (2) 261,760 428,471 4,221,902 4,055,191 104 % Total premiums $ 261,760 $ 446,565 $ 5,209,786 $ 5,024,981 104 % (1) Life reinsurance in force excludes products that do not pass risk transfer, (2) P&C includes Specialty and U.S. health premiums. |
SCHEDULE VI - Supplemental Info
SCHEDULE VI - Supplemental Information Concerning Property-Casualty Insurance Operations | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters [Abstract] | |
Supplemental InformationConcerning Property-Casualty Insurance Operations | PartnerRe Ltd. Supplemental Information Concerning Property-Casualty Insurance Operations (1) For the years ended December 31, 2019 , 2018 and 2017 (Expressed in thousands of U.S. dollars) Losses and Loss Expenses Incurred Related to (2) Affiliation with Registrant Deferred Policy Acquisition Costs Liability for Unpaid Losses and Loss Expenses Unearned Premiums Premiums Earned Current year Prior year Acquisition Costs Paid Losses and Loss Expenses Premiums Written Consolidated subsidiaries 2019 $ 640,442 $ 10,363,383 $ 2,420,009 $ 5,058,056 $ 3,716,988 $ (56,848 ) $ 1,306,388 $ 3,090,670 $ 5,438,807 2018 $ 553,535 $ 9,895,376 $ 2,062,736 $ 4,301,862 $ 3,417,366 $ (248,719 ) $ 1,107,760 $ 2,921,987 $ 4,592,282 2017 $ 493,196 $ 10,102,172 $ 1,807,013 $ 4,055,191 $ 3,453,725 $ (448,158 ) $ 1,023,065 $ 2,979,051 $ 4,154,809 (1) Includes the Company's P&C and Specialty segments. (2) Net incurred losses include favorable loss development of $3 million during the year ended December 31, 2019, which are allocated to Corporate and Other. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of accounting | The Company’s Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP). The Consolidated Financial Statements include the accounts of the Company and its subsidiaries. Intercompany accounts and transactions have been eliminated. Certain reclassifications have been made to prior period amounts to conform to the current year presentation. |
Use Of Estimates | The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. While management believes that the amounts included in the Consolidated Financial Statements reflect its best estimates and assumptions, actual results could differ from those estimates. The Company’s principal estimates include: • Non-life reserves; • Life and health reserves; • Reinsurance recoverable for unpaid losses; • Gross and net premiums written and net premiums earned; • Recoverability of deferred acquisition costs; • Recoverability of deferred tax assets; • Valuation of certain investments that are measured using significant unobservable inputs; and • Valuation of goodwill and intangible assets. |
Premiums | Gross premiums written and earned are based upon reports received from ceding companies, supplemented by the Company’s own estimates of premiums written and earned for which ceding company reports have not been received. The determination of premium estimates requires a review of the Company’s experience with cedants, familiarity with each market, an understanding of the characteristics of each line of business and management’s assessment of the impact of various other factors on the volume of business written and ceded to the Company. Premium estimates are updated as new information is received from cedants and differences between such estimates and actual amounts are recorded in the period in which the estimates are changed or the actual amounts are determined. Net premiums written and earned are presented net of ceded premiums. Premiums related to non-life business are earned on a basis that is consistent with the risks covered under the terms of the reinsurance contracts, which is generally one to two years. Reinstatement premiums are recognized as written and earned at the time a loss event occurs, where coverage limits for the remaining life of the contract are reinstated under pre-defined contract terms. The accrual of reinstatement premiums is based on management’s estimate of losses and loss expenses associated with the loss event. Unearned premiums represent the portion of premiums written which is applicable to the unexpired risks under contracts in force. Premiums related to life and annuity business are recorded over the premium-paying period on the underlying policies. Premiums on contracts for which there is no significant mortality or critical illness risk are accounted for in a manner consistent with accounting for interest-bearing financial instruments and are not reported as revenues, but rather as direct deposits to the contract. Amounts assessed against annuity and universal life policyholders are recognized as revenue in the period assessed. |
Losses and Loss Expenses | The reserves for non-life business include amounts determined from loss reports on individual treaties (case reserves), additional case reserves when the Company’s loss estimate is higher than reported by the cedants (ACRs) and amounts for losses incurred but not yet reported to the Company (IBNR). Such reserves are estimated by management based upon reports received from ceding companies, supplemented by the Company’s own actuarial estimates of reserves for which ceding company reports have not been received, and based on the Company’s own historical experience. To the extent that the Company’s own historical experience is inadequate for estimating reserves, such estimates may be determined based upon industry experience and management’s judgment. The estimates are regularly reviewed and the ultimate liability may be materially in excess of, or less than, the amounts provided. Any adjustments are reflected in the periods in which they are determined, which may affect the Company’s operating results in future periods. |
Life Policy Benefits | The life and health reserves have been established based upon information reported by ceding companies, supplemented by the Company’s actuarial estimates, which for life include mortality, morbidity, critical illness, persistency and future investment income, with appropriate provision to reflect uncertainty. For traditional and limited payment long-duration contracts, the assumptions are locked in at contract inception and are subject to annual loss recognition testing. Future policy benefit reserves for annuity and universal life contracts are carried at their accumulated values. Reserves for policy claims and benefits include both mortality, morbidity and critical illness claims in the process of settlement, and claims that have been incurred but not yet reported. |
Deferred Acquisition Costs | Acquisition costs, comprising primarily incremental brokerage fees, commissions and excise taxes, which vary directly with, and are related to, the acquisition of reinsurance contracts, are capitalized and charged to expense as the related premium is earned. All other acquisition related costs, including indirect costs, are expensed as incurred. Acquisition costs are shown net of commissions earned on ceded reinsurance. Acquisition costs related to individual life and annuity contracts are deferred and amortized over the premium-paying periods in proportion to anticipated premium income, allowing for lapses, terminations and anticipated investment income. Acquisition costs related to universal life and single premium annuity contracts for which there is no significant mortality or critical illness risk are deferred and amortized over the lives of the contracts as a percentage of the estimated gross profits expected to be realized on the contracts. The Company establishes a premium deficiency reserve to the extent the deferred acquisition costs are insufficient to cover the excess of expected losses and loss expenses, settlement costs and deferred acquisition costs over the related unearned premiums. Actual and anticipated losses and loss expenses, other costs, and investment income related to underlying premiums are considered in determining the recoverability of deferred acquisition costs for the Company’s short-duration contracts. Actual and anticipated loss experience, together with the present value of future gross premiums, the present value of future benefits, and settlement and maintenance costs are considered in determining the recoverability of deferred acquisition costs related to the Company’s life and annuity business. |
Reinsurance | The Company purchases retrocessional contracts to reduce its exposure to risk of losses on reinsurance assumed. Ceded premiums, which represent the cost of retrocessional protection purchased by the Company, are expensed over the coverage period. Prepaid reinsurance premiums represent the portion of premiums ceded applicable to the unexpired term of policies in force. Reinsurance recoverable on paid and unpaid losses involves actuarial estimates consistent with those used to establish the associated liabilities for non-life and life and health reserves and are recorded net of a valuation allowance for estimated uncollectible recoveries. Retroactive reinsurance reimburses a ceding company for liabilities incurred as a result of past insurable events covered under contracts subject to the reinsurance. Premiums payable for retroactive reinsurance coverage meeting the conditions of reinsurance accounting are reported as reinsurance recoverables to the extent that those amounts do not exceed recorded liabilities relating to underlying reinsurance contracts. To the extent that recorded liabilities on an underlying reinsurance contract exceed premiums payable for retroactive coverage, a deferred gain is recognized in the Company's Consolidated Balance Sheets. |
Funds Held by Reinsured Companies | The Company writes certain business on a funds held basis. Under such contractual arrangements, the cedant retains the premiums that would have otherwise been paid to the Company and the Company is credited with investment income on these funds. The Company generally earns investment income on the funds held balances based upon a predetermined interest rate, either fixed contractually at the inception of the contract or based upon a recognized index (e.g. LIBOR). However, in certain circumstances, the Company may receive an investment return based upon either the result of a pool of assets held by the cedant, generally used to collateralize the funds held balance, or the investment return earned by the cedant on its entire investment portfolio. In these arrangements, gross investment returns are typically reflected in net investment income in the Company’s Consolidated Statements of Operations. In these arrangements, the Company is exposed, to a limited extent, to the underlying credit risk of the pool of assets inasmuch as the underlying policies may have guaranteed minimum returns. In such cases, an embedded derivative exists and its fair value is recorded by the Company as an increase or decrease to the funds held balance. |
Deposit Assets and Liabilities | In the normal course of its operations, the Company writes certain contracts that do not meet the risk transfer provisions of U.S. GAAP. While these contracts do not meet risk transfer provisions for accounting purposes, there is a remote possibility that the Company will suffer a loss. The Company accounts for these contracts using the deposit accounting method originally recording deposit assets or liabilities for an amount equivalent to the consideration paid or received, respectively. The difference between the consideration received and the estimated liability for unpaid losses is determined upon entering into the contract and, if a loss, recognized into income immediately, and if a gain, the gain is deferred and earned over the expected settlement period of the contract, with the unearned portion recorded as a component of deposit liabilities. Actuarial studies are used to estimate the liabilities under these contracts and the appropriate accretion rates to increase or decrease the liabilities over the term of the contracts. The change in the estimated liability for the period is recorded in Other income or loss in the Consolidated Statements of Operations. Under some of these contracts, cedants retain the assets on a funds-held basis. In those cases, the Company records those assets as deposit assets and records the related income in Net investment income in the Consolidated Statements of Operations. Also included in Deposit assets are receivables included as an element of certain life reinsurance agreements that do not meet risk transfer. |
Investments | The Company elects the fair value option for Fixed maturities and Equities with changes in fair value recorded in Net realized and unrealized investment gains or losses in the Consolidated Statements of Operations. Short-term investments, which comprise securities with a maturity greater than three months but less than one year from the date of purchase, are recorded at fair value by electing either the fair value option with changes in fair value recorded in Net realized and unrealized gains or losses included in the Consolidated Statements of Operations, or by designating as available-for-sale with changes in fair value recorded in Other comprehensive income or loss. Investments in real estate are recorded at cost less any write down for impairment, where applicable. Real estate assets held for investment are reviewed for impairment at least annually, or more frequently when events or changes in circumstances indicate the carrying value may not be recoverable and exceeds its estimated fair value. The Company recognizes Other invested assets at fair value, except for those that are accounted for using the equity method of accounting. Other invested assets consist of equity investments in non-publicly traded companies; privately placed corporate loans, notes and loans receivable and notes securitization; and derivative financial instruments. Non-publicly traded entities in which the Company has significant influence, including an ownership of more than 20% and less than 50% of the voting rights, and limited partnerships in which the Company has more than a minor interest (typically more than 3 to 5%), are accounted for using either the equity method or the fair value option. Where the equity method is used, the Company's share of profits or losses of the investee are recorded in Interest in earnings or losses of equity method investees in the Consolidated Statements of Operations. Where the fair value option is elected, the investment is recognized in the Consolidated Balance Sheets at fair value with changes in fair value recorded in Net realized and unrealized investment gains or losses in the Consolidated Statements of Operations. See Note 2 (n) below for significant accounting policy for derivatives. Net investment income includes interest and dividend income, amortization of premiums and discounts on fixed maturities and short-term investments, and is net of investment expenses and withholding taxes. Investment income is recognized when earned and accrued to the balance sheet date. Realized gains or losses on the disposal of investments are determined on a first-in, first-out basis. Investment purchases and sales are recorded on a trade-date basis. The Company defines fair value as the price received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company measures the fair value of financial instruments according to a fair value hierarchy that prioritizes the information used to measure fair value into three broad levels. The Company’s policy is to recognize transfers between the hierarchy levels at the beginning of the period. Refer to Note 3 for the valuation techniques used by the Company |
Cash and Cash Equivalents | Cash equivalents are carried at fair value and include fixed income securities that, from the date of purchase, have a maturity of three months or less. |
Business Combinations | The Company accounts for transactions in which it obtains control over one or more businesses using the acquisition method. The purchase price is allocated to identifiable assets and liabilities, including any intangible assets, based on their estimated fair value at the acquisition date. The estimates of fair values for assets and liabilities acquired are determined based on various market and income analyses and appraisals. Any excess of the purchase price over the fair value of net assets acquired is recorded as goodwill in the Company’s Consolidated Balance Sheets, while any excess of the fair value of net assets acquired over the purchase price is recorded as a gain in the Consolidated Statements of Operations. All costs associated with an acquisition are expensed as incurred. |
Goodwill | Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in a business combination. The Company assesses the appropriateness of its valuation of goodwill on an annual basis (as of December 31) or more frequently if events or changes in circumstances indicate that the carrying amount may not be recoverable. If, as a result of the assessment, the Company determines that the value of its goodwill is impaired, goodwill will be written down in the period in which the determination is made. |
Intangible Assets | Intangible assets represent the fair value adjustments related to renewal rights, and customer relationships; value of life business acquired; and U.S. licenses arising from acquisitions. Definite-lived intangible assets are amortized over their useful lives and the amortization expense is recorded in the Consolidated Statement of Operations. Indefinite-lived intangible assets are not subject to amortization. The carrying values of indefinite-lived intangible assets are reviewed for indicators of impairment on an annual basis (as of December 31) or more frequently if events or changes in circumstances indicate that impairment may exist. Impairment is recognized if the carrying values of the intangible assets are not recoverable from their undiscounted cash flows and is measured as the difference between the carrying value and the fair value. |
Income Taxes | Certain subsidiaries and branches of the Company operate in jurisdictions where they are subject to taxation. Current and deferred income taxes are charged or credited to Net income or loss or, in certain cases, to Accumulated other comprehensive income or loss, based upon enacted tax laws and rates applicable in the relevant jurisdiction in the period in which the tax becomes accruable or realizable. Deferred income taxes are provided for all temporary differences between the bases of assets and liabilities used in the Consolidated Balance Sheets and those used in the various jurisdictional tax returns. When management’s assessment indicates that it is more likely than not that deferred tax assets will not be realized, a valuation allowance is recorded against the deferred tax assets. Where appropriate, the valuation allowance assessment considers tax planning strategies. The Company recognizes a tax benefit relating to uncertain tax positions only where the position is more likely than not to be sustained assuming examination by tax authorities. A liability is recognized for any tax benefit (along with any interest and penalty, if applicable) claimed in a tax return in excess of the amount recognized in the financial statements under U.S. GAAP. Any changes in amounts recognized are recorded in the period in which they are determined. |
Foreign Exchange | In recording foreign currency transactions, revenue and expense items in a currency other than the functional currency are converted into the functional currency at the average rates of exchange for the period. Monetary assets and liabilities originating in currencies other than the functional currency are remeasured into the functional currency at the rates of exchange in effect at the balance sheet dates. The resulting foreign exchange transaction gains or losses are included in Net foreign exchange gains or losses in the Consolidated Statements of Operations. The reporting currency of the Company is the U.S. dollar. The national currencies of the Company’s subsidiaries and branches are generally their functional currencies, except for the Company’s Bermuda subsidiaries, its Swiss branch and its Singapore subsidiary and branches, whose functional currency is the U.S. dollar. In translating the financial statements of those subsidiaries or branches whose functional currency is other than the U.S. dollar, assets and liabilities are converted into U.S. dollars using the rates of exchange in effect at the balance sheet dates, and revenues and expenses are converted using the average foreign exchange rates for the period. The effect of translation adjustments are reported in the Consolidated Balance Sheets as Currency translation adjustment, a separate component of Accumulated other comprehensive income or loss. The change in currency translation adjustment is reflected in Other comprehensive income or loss. (n) |
Derivatives | The Company’s investment strategy allows for the use of derivative instruments, subject to strict limitations. The Company may use derivative financial instruments such as foreign exchange forward contracts, foreign currency option contracts, futures contracts, to-be-announced mortgage-backed securities (TBAs), total return swaps, interest rate swaps, insurance-linked securities, and credit default swaps for the purpose of managing overall currency risk, market exposures and portfolio duration, for hedging certain investments, or for enhancing investment performance that would be allowed under the Company’s investment policy if implemented in other ways. On the date the Company enters into a derivative contract, management determines whether or not the derivative is to be used and designated as a hedge of an identified underlying risk exposure (a designated hedge). The Company’s derivative instruments are recorded in Other invested assets in the Consolidated Balance Sheets at fair value, with gains and losses associated with changes in fair value recognized in either Net realized and unrealized investment gains or losses or Net foreign exchange gains or losses in the Consolidated Statements of Operations, or in Other comprehensive income, depending on the nature and designation of the derivative instrument (see also Note 5 ). The Company formally documents all relationships between designated hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking various hedge transactions. In this documentation, the Company specifically identifies the asset or liability that has been designated as a hedged item and states how the hedging instrument is expected to hedge the risks related to the hedged item. The Company formally measures effectiveness of its designated hedging relationships both at the hedge inception and on an ongoing basis. For its derivatives designated as hedges at December 31, 2018, the Company's method for assessing the effectiveness of the designated hedge was a qualitative assessment, as the Company determined that the hedging instrument (the designated foreign currency forward contracts) and the hedged assets (the available-for-sale foreign currency denominated short-term investments) were perfectly aligned as they related to the hedged risk, the foreign currency exchange rate risk exposure. These hedges were settled during 2019, and there were no derivatives designated as hedges at December 31, 2019. The Company will discontinue hedge accounting prospectively if it is determined that the derivative is no longer effective in hedging the exposure to variability in expected future cash flows that is attributable to the risk it was meant to hedge; if the derivative instrument expires, is sold, or is otherwise terminated; or if the Company removes the designation of the hedge. To the extent that the Company discontinues hedge accounting because, based on management’s assessment, the derivative no longer qualifies as an effective hedge, or the Company otherwise de-designates the hedge, the derivative will continue to be carried in the Consolidated Balance Sheet at its fair value, with changes in its fair value recognized in in the Consolidated Statements of Operations, or in Other comprehensive income, depending on the type of derivative held. |
Pensions | The Company recognizes an asset or a liability in the Consolidated Balance Sheets for the funded status of its defined benefit plans that are overfunded or underfunded, respectively, measured as the difference between the fair value of plan assets and the pension obligation and recognizes changes in the funded status of defined benefit plans in the year in which the changes occur as a component of Accumulated other comprehensive income or loss, net of tax. |
Variable Interest Entities | The Company is involved in the normal course of business with variable interest entities (VIEs). An assessment is performed as of the date the Company becomes initially involved in the VIE followed by a reassessment upon certain events related to its involvement in the VIE. The Company consolidates a VIE when it is the primary beneficiary having a controlling financial interest as a result of having the power to direct the activities that most significantly impact the economic performance of the VIE and the obligation to absorb losses, or right to receive benefits, that could potentially be significant to the VIE. |
Segment Reporting | The Company monitors the performance of its operations in three segments: Property & Casualty (P&C), Specialty and Life and Health. Segments represent markets that are reasonably homogeneous in terms of client types, buying patterns, underlying risk patterns or approach to risk management. Since the Company does not manage its assets by segment, neither assets nor net investment income are allocated to the P&C and Specialty segments. However, because of the interest-sensitive nature of some of the Company’s life products, allocated net investment income is considered in management’s assessment of the profitability of the Life and Health segment. The following items are not considered in evaluating the results of the P&C, Specialty and Life and Health segments: Net realized and unrealized investment gains or losses, Interest expense, Loss on redemption of debt, Amortization of intangible assets, Net foreign exchange gains or losses, Income tax expense or benefit and Interest in earnings and losses of equity method investments. These items are included in the Corporate and Other component, which is comprised of the Company’s investment and corporate activities, including other expenses. |
Share-based Incentives | The Company is authorized to issue restricted Class B shares to certain executives and directors. The compensation cost for restricted shares is measured at fair value and expensed over the period for which the employee is required to provide services in exchange for the award, up to three years from the date of grant. The Company has elected to recognize forfeitures as they occur. Unrestricted Class B shares can be sold back to the Company at the option of the shareholder. Class B shares are accounted for as liabilities, included in Accounts payable, accrued expenses and other on the Consolidated Balance Sheets. |
Recent Accounting Pronouncements | Adopted during 2019 In February 2016, the Financial Accounting Standards Board (FASB) issued updated guidance on the accounting for leases. The guidance requires, among other items, lessees to recognize right-of-use assets and lease liabilities on the balance sheet, and expands required disclosures. The guidance does not significantly change the lessees’ recognition, measurement and presentation of expenses and cash flows for operating leases. The guidance was effective for the year ended December 31, 2019. The Company adopted the guidance using the modified retrospective transition method, and as a result, the Company’s reporting for comparative periods including related disclosures prior to adoption continue to be presented in the Consolidated Financial Statements in accordance with the previous lease accounting guidance. The Company elected the "package of practical expedients" permitted under the guidance and also elected the hindsight practical expedient in determining the lease term for the Company's existing leases at transition. The adoption of this standard resulted in the recognition of operating lease right-of-use assets of $76 million included in Other assets and lease liabilities of $86 million included in Accounts payable, accrued expenses and other on the Consolidated Balance Sheet as of December 31, 2019. The reduction of the right-of-use asset relates primarily to deferred rent that was recorded under the previous guidance. The Company determined it was not required to record a cumulative effect adjustment to opening retained earnings as of January 1, 2019. See Note 15 (b) for further details. Not yet adopted In January and April 2017, the FASB issued updated guidance on the accounting for goodwill impairment. This update removes the second step of the goodwill impairment test and requires entities to apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit's carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The new guidance does not amend the optional qualitative assessment of goodwill impairment. The guidance is effective for annual impairment tests in fiscal years beginning after December 15, 2019, with early adoption permitted. The Company does not expect the adoption of this guidance to have a significant impact on its Consolidated Financial Statements and disclosures. In June 2016, the FASB issued updated guidance on the recognition of credit losses by replacing the incurred loss impairment methodology with new accounting models related to how credit losses on financial instruments are determined. The new guidance is applicable to financial assets measured at amortized cost such as loans, reinsurance receivables, trade receivables, debt securities, off-balance sheet credit exposures, and other financial assets that have a contractual right to receive cash. The Company's investments, except for certain Other invested assets that are accounted for using the equity method of accounting and Investments in real estate, are measured at fair value through net income, and therefore those investments would not be impacted by the adoption of this guidance. The guidance is effective for annual periods beginning after December 15, 2019, with early adoption permitted. The Company is currently evaluating the impact of this guidance and does not expect the adoption to have a material impact on its Consolidated Financial Statements and disclosures required to be adopted for the year ended December 31, 2020. In August 2018, the FASB issued updated guidance to the disclosure requirements for fair value measurement as part of the disclosure framework project. The updated guidance allows for the removal and modification of certain disclosures to improve the effectiveness of disclosures in the notes to financial statements. This guidance is effective for fiscal years beginning after December 15, 2019. The Company is currently evaluating the impact of this guidance on its Consolidated Financial Statements and disclosures required to be adopted for the year ended December 31, 2020. In August 2018, the FASB issued updated guidance to improve financial reporting for insurance companies that issue long-duration contracts such as life insurance and annuities. The objective of the new guidance is to improve, simplify, and enhance the financial reporting of long-duration contracts by providing financial statement users with useful information in a timely and transparent manner. This guidance is effective for annual periods beginning after December 15, 2021. The Company is currently evaluating the impact of this guidance on its Consolidated Financial Statements and disclosures required to be adopted for the year ended December 31, 2022. This guidance could have a material impact on the measurement recognition of long duration contracts and will result in additional disclosures once adopted. In August 2018, the FASB issued updated guidance to the disclosure requirements for defined benefit plans as part of the disclosure framework project. The updated guidance allows for the removal and modification of certain disclosures to improve the effectiveness of disclosures in the notes to financial statements. This guidance is effective for fiscal years beginning after December 15, 2020. The Company is currently evaluating the impact of this guidance on its disclosures required to be adopted for the year ended December 31, 2021. |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Financial instruments measured at fair value and categorized between Levels 1, 2 and 3 | At December 31, 2019 and 2018 , the Company’s financial instruments measured at fair value were classified between Levels 1, 2 and 3 as follows (in thousands of U.S. dollars): December 31, 2019 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Total Fixed maturities U.S. government and government sponsored enterprises $ — $ 1,421,716 $ — $ 1,421,716 U.S. states, territories and municipalities — 13,807 143,427 157,234 Non-U.S. sovereign government, supranational and government related — 3,255,154 — 3,255,154 Corporate bonds — 2,643,402 18,687 2,662,089 Asset-backed securities — — 18,228 18,228 Residential mortgage-backed securities — 3,166,290 — 3,166,290 Other mortgage-backed securities — 3 — 3 Fixed maturities $ — $ 10,500,372 $ 180,342 $ 10,680,714 Short-term investments $ — $ 1,003,421 $ — $ 1,003,421 Equities Finance $ 31,315 $ 2 $ 126 $ 31,443 Consumer cyclical 20,117 — — 20,117 Insurance 5,284 273 9,403 14,960 Consumer noncyclical 13,126 — — 13,126 Basic materials 5,295 — — 5,295 Industrials 4,042 — — 4,042 Technology 3,027 — — 3,027 Real estate — — 2,385 2,385 Communications 922 — — 922 Mutual funds — — 1,199,847 1,199,847 Equities $ 83,128 $ 275 $ 1,211,761 $ 1,295,164 Other invested assets Derivative assets Foreign exchange forward contracts $ — $ 4,363 $ — $ 4,363 Total return swaps — — 1,448 1,448 Insurance-linked securities — — 2,728 2,728 Foreign currency option contracts — 266 — 266 Other Corporate loans (1) — — 1,879,105 1,879,105 Notes and loans receivable and notes securitization — — 3,085 3,085 Private equities — — 533,744 533,744 Derivative liabilities Foreign exchange forward contracts — (5,643 ) — (5,643 ) Total return swaps — — (2,962 ) (2,962 ) Interest rate swaps — (12,378 ) — (12,378 ) Insurance-linked securities — — (3,871 ) (3,871 ) Other invested assets $ — $ (13,392 ) $ 2,413,277 $ 2,399,885 Total $ 83,128 $ 11,490,676 $ 3,805,380 $ 15,379,184 (1) Corporate loans includes a portfolio of third-party, individually managed privately issued corporate loans that are managed under an externally managed mandate with a fair value of $1.4 billion and $0.4 billion at December 31, 2019 and 2018, respectively. The mandate primarily invests in U.S. floating rate, first lien, senior secured broadly syndicated loans with a focus on facility sizes greater than $300 million . Corporate loans also includes $0.5 billion of other privately issued corporate loans at December 31, 2019. December 31, 2018 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Total Fixed maturities U.S. government and government sponsored enterprises $ — $ 2,345,008 $ — $ 2,345,008 U.S. states, territories and municipalities — 13,695 120,898 134,593 Non-U.S. sovereign government, supranational and government related — 2,158,642 — 2,158,642 Corporate bonds — 5,590,208 21,470 5,611,678 Asset-backed securities — 41,087 17,596 58,683 Residential mortgage-backed securities — 2,331,230 — 2,331,230 Other mortgage-backed securities — 11 — 11 Fixed maturities $ — $ 12,479,881 $ 159,964 $ 12,639,845 Short-term investments (1) $ — $ 493,726 $ — $ 493,726 Equities Finance $ 11,307 $ 1 $ 13,710 $ 25,018 Technology 5,492 — 12,256 17,748 Consumer noncyclical 13,334 — — 13,334 Consumer cyclical 6,435 — — 6,435 Industrials 4,797 — — 4,797 Insurance 1,771 1,189 — 2,960 Communications 1,451 — — 1,451 Other 799 — — 799 Mutual funds — — 621,759 621,759 Equities $ 45,386 $ 1,190 $ 647,725 $ 694,301 Other invested assets Derivative assets Foreign exchange forward contracts $ — $ 17,820 $ — $ 17,820 Insurance-linked securities — — 2,824 2,824 Total return swaps — — 1,697 1,697 Interest rate swaps — 10 — 10 Other Corporate loans — — 401,702 401,702 Notes and loans receivable and notes securitization — — 6,507 6,507 Private equities — — 372,710 372,710 Derivative liabilities Foreign exchange forward contracts — (3,673 ) — (3,673 ) Total return swaps — — (3,232 ) (3,232 ) Interest rate swaps — (9,194 ) — (9,194 ) Insurance-linked securities — — (2,568 ) (2,568 ) Other invested assets $ — $ 4,963 $ 779,640 $ 784,603 Total $ 45,386 $ 12,979,760 $ 1,587,329 $ 14,612,475 (1) Short-term investments includes $229 million of available-for-sale securities with readily determinable fair values. These securities were purchased in 2018 and are recorded at fair value, which approximated amortized cost given the short term to maturity of approximately three to four months |
Reconciliation of beginning and ending balances for all financial instruments measured at fair value using Level 3 inputs | The reconciliations of the beginning and ending balances for financial instruments measured at fair value using Level 3 inputs for the years ended December 31, 2019 and 2018 , were as follows (in thousands of U.S. dollars): For the year ended December 31, 2019 Balance at beginning of year Realized and unrealized investment gains (losses) included in net income Purchases Settlements and (1) Net transfers (out of) into Level 3 Balance at end of year Change in relating to Fixed maturities U.S. states, territories and municipalities $ 120,898 $ 12,959 $ 10,455 $ (885 ) $ — $ 143,427 $ 12,951 Asset-backed securities 17,596 1,274 — (642 ) — 18,228 1,274 Corporate 21,470 157 — (2,940 ) — 18,687 157 Fixed maturities $ 159,964 $ 14,390 $ 10,455 $ (4,467 ) $ — $ 180,342 $ 14,382 Equities Finance $ 13,710 $ 100 $ — $ — $ (13,684 ) $ 126 $ (3 ) Technology 12,256 (1,538 ) — (10,718 ) — — — Mutual funds 621,759 388,024 206,685 (16,621 ) — 1,199,847 385,317 Insurance — 7,514 1,889 — — 9,403 7,514 Real estate — — 2,385 — — 2,385 — Equities $ 647,725 $ 394,100 $ 210,959 $ (27,339 ) $ (13,684 ) $ 1,211,761 $ 392,828 Other invested assets Derivatives, net $ (1,279 ) $ 115 $ (2,000 ) $ 507 $ — $ (2,657 ) $ (111 ) Corporate loans 401,702 9,237 1,828,802 (360,636 ) — 1,879,105 9,940 Notes and loan receivables and notes securitization 6,507 (717 ) — (2,705 ) — 3,085 139 Private equities 372,710 49,759 132,256 (20,981 ) — 533,744 37,159 Other invested assets $ 779,640 $ 58,394 $ 1,959,058 $ (383,815 ) $ — $ 2,413,277 $ 47,127 Total $ 1,587,329 $ 466,884 $ 2,180,472 $ (415,621 ) $ (13,684 ) $ 3,805,380 $ 454,337 (1) Settlements and sales of Equities and Other invested assets included sales of $ 27 million and $289 million , respectively. Sales of Other invested assets of $ 289 million included sales of corporate loans of $ 270 million , notes and loan receivables and notes securitization of $ 2 million , and private equities of $ 17 million . For the year ended December 31, 2018 Balance at beginning of year Realized and unrealized investment (losses) gains included in net income Purchases Settlements and (1) Net transfers into (out of) Level 3 Balance at end of year Change in relating to Fixed maturities U.S. states, territories and municipalities $ 128,806 $ (4,417 ) $ — $ (3,491 ) $ — $ 120,898 $ (4,320 ) Asset-backed securities 20,738 (2,552 ) — (590 ) — 17,596 (2,552 ) Corporate — (139 ) — (3,745 ) 25,354 21,470 (139 ) Fixed maturities $ 149,544 $ (7,108 ) $ — $ (7,826 ) $ 25,354 $ 159,964 $ (7,011 ) Equities Finance $ 21,926 $ 5,065 $ — $ (13,281 ) $ — $ 13,710 $ (3,544 ) Technology 10,961 1,295 — — — 12,256 1,295 Mutual funds 558,736 10,996 55,027 (3,000 ) — 621,759 10,996 Equities $ 591,623 $ 17,356 $ 55,027 $ (16,281 ) $ — $ 647,725 $ 8,747 Other invested assets Derivatives, net $ 11,221 $ 5,038 $ (1,623 ) $ (15,915 ) $ — $ (1,279 ) $ 372 Corporate loans 205,331 (21,522 ) 367,975 (150,082 ) — 401,702 (20,823 ) Notes and loan receivables and notes securitization 108,563 (4,054 ) — (98,002 ) — 6,507 (3,884 ) Private equities 331,932 (12,422 ) 55,114 (32,994 ) 31,080 372,710 (15,048 ) Other invested assets $ 657,047 $ (32,960 ) $ 421,466 $ (296,993 ) $ 31,080 $ 779,640 $ (39,383 ) Funds held–directly managed $ 2,067 $ 238 $ 268 $ (2,573 ) $ — $ — $ — Total $ 1,400,281 $ (22,474 ) $ 476,761 $ (323,673 ) $ 56,434 $ 1,587,329 $ (37,647 ) (1) Settlements and sales of Equities, Other invested assets, and Funds held–directly managed included sales of $16 million , $248 million and $3 million , respectively. Sales of Other invested assets of $248 million included sales of derivatives of $16 million , corporate loans of $107 million , notes and loan receivables and notes securitization of $96 million , and private equities of $29 million . |
Summary of significant unobservable inputs used in the valuation of financial instruments | The significant unobservable inputs used in the valuation of financial instruments measured at fair value using Level 3 inputs at December 31, 2019 and 2018 were as follows (fair value in thousands of U.S. dollars): December 31, 2019 Fair value Valuation techniques Unobservable inputs Range (Weighted average) Fixed maturities U.S. states, territories and municipalities $ 143,427 Discounted cash flow Credit spreads -0.1% – 9.6% (3.5%) Asset backed securities 18,228 Discounted cash flow Credit spreads 4.7% (4.7%) Equities Insurance 9,403 Weighted market comparables Revenue multiple 2.6x (2.6x) Adjusted earnings multiple 7.7x (7.7x) Liquidity discount 30.0% (30.0%) Other invested assets Total return swaps, net (1,514 ) Discounted cash flow Credit spreads 2.3% – 24.0% (16.9%) Insurance-linked securities – longevity swaps 2,728 Discounted cash flow Credit spreads 1.9% (1.9%) Insurance-linked securities – pandemic swaps (1,871 ) Discounted cash flow Credit spreads 56.2% (56.2%) Notes and loans receivables 2,153 Discounted cash flow Credit spreads 17.5% (17.5%) Gross revenue/fair value ratios 1.1 (1.1) Note securitization 932 Discounted cash flow Credit spreads 1.2% (1.2%) Private equity – other 15,800 Discounted cash flow Effective yield 3.0% (3.0%) Private equity – funds 167,804 Lag reported market value Net asset value, as reported 100.0% (100.0%) Market adjustments 1.9% – 15.0% (9.7%) December 31, 2018 Fair value Valuation techniques Unobservable inputs Range (Weighted average) Fixed maturities U.S. states, territories and municipalities $ 120,898 Discounted cash flow Credit spreads 0.2% – 10.2% (4.3%) Asset backed securities 17,596 Discounted cash flow Credit spreads 6.7% (6.7%) Equities Finance (1) 13,710 Lag reported market value Transaction price 12.0 (12.0) Technology 12,256 Reported market value Tangible book value multiple 1.0 (1.0) Other invested assets Total return swaps, net (1,535 ) Discounted cash flow Credit spreads 2.5% – 23.0% (16.0%) Insurance-linked securities – longevity swaps 2,824 Discounted cash flow Credit spreads 2.6% (2.6%) Insurance-linked securities – pandemic swaps (1,301 ) Discounted cash flow Credit spreads 27.3% (27.3%) Insurance-linked securities – weather index swap (1,267 ) Proprietary option model Index value (temperature) 80.7 – 3,293.8 (175.3) Notes and loans receivable 2,660 Discounted cash flow Credit spreads 41.5% – 41.9% (41.5%) Notes and loans receivable 2,688 Discounted cash flow Credit spreads 17.5% (17.5%) Gross revenue/fair value ratios 1.1 (1.1) Note securitization 1,159 Discounted cash flow Credit spreads 0.8% (0.8%) Private equity – direct 1,889 Weighted market comparables Revenue multiple 1.1 (1.1) Adjusted earnings multiple 9.8 (9.8) Liquidity discount 30% (30%) Private equity – funds 14,438 Reported market value Net asset value, as reported 100.0% (100.0%) Market adjustments -6.5% (-6.5%) Private equity – other 19,997 Discounted cash flow Effective yield 4.1% (4.1%) (1) During 2018, the Company sold a portion of its investment and used the arm's length transaction price as an estimate of the fair value of the remaining holdings. |
Change in fair value of financial instruments subject to fair value option | Changes in the fair value of the Company’s financial instruments subject to the fair value option during the years ended December 31, 2019 , 2018 and 2017 were as follows (in thousands of U.S. dollars): 2019 2018 2017 Fixed maturities and short-term investments $ 190,343 $ (150,926 ) $ 124,033 Equities 403,011 2,791 60,460 Other invested assets 50,857 (12,987 ) 28,144 Funds held–directly managed (1) — (6,484 ) (5,612 ) Total $ 644,211 $ (167,606 ) $ 207,025 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments [Abstract] | |
Net Realized and Unrealized Investment (Losses) Gains | The components of the net realized and unrealized investment gains (losses) for the years ended December 31, 2019 , 2018 and 2017 were as follows (in thousands of U.S. dollars): 2019 2018 2017 Net realized investment gains (losses) on fixed maturities and short-term investments $ 243,508 $ (224,887 ) $ 28,632 Net realized investment gains (losses) on equities 6,545 14,601 (4,052 ) Net realized investment gains (losses) on other invested assets 830 7,136 (3,217 ) Net realized investment gains on funds held–directly managed (1) — 1,200 508 Net realized investment gains (losses) $ 250,883 $ (201,950 ) $ 21,871 Change in net unrealized investment gains (losses) on fixed maturities and short-term investments $ 190,343 $ (150,926 ) $ 124,033 Change in net unrealized investment gains on equities 403,011 2,791 60,460 Change in net unrealized investment gains (losses) on other invested assets 44,441 (25,607 ) 32,790 Change in net unrealized investment losses on funds held–directly managed (1) — (6,484 ) (5,567 ) Net other realized and unrealized investment gains (losses) 969 (1,334 ) (1,096 ) Change in net unrealized investment gains (losses) $ 638,764 $ (181,560 ) $ 210,620 Impairment loss on investments in real estate $ (2,977 ) $ (6,122 ) $ — Net realized and unrealized investment gains (losses) $ 886,670 $ (389,632 ) $ 232,491 (1) The funds held–directly managed account was settled in 2018 upon commutation of the related Paris Re Reserve Agreement. See also Note 7(a) for further details. |
Net investment income | The components of net investment income for the years ended December 31, 2019 , 2018 and 2017 were as follows (in thousands of U.S. dollars): 2019 2018 2017 Fixed maturities $ 379,939 $ 378,726 $ 382,676 Short-term investments and cash and cash equivalents 26,981 13,279 5,363 Other invested assets 68,879 26,234 11,800 Equities, funds held and other (1) 12,221 21,964 17,256 Funds held–directly managed (2) — 4,674 7,742 Investment expenses (39,482 ) (28,956 ) (22,766 ) Net investment income $ 448,538 $ 415,921 $ 402,071 (1) The Company generally earns investment income on funds held by reinsured companies based upon a predetermined interest rate, either fixed contractually at the inception of the contract or based upon a recognized index (e.g. LIBOR). Interest rates ranged from 0.1% to 5.1% , 0.1% to 7.4% and 0.1% to 7.0% for the years ended December 31, 2019 , 2018 and 2017 , respectively. (2) The funds held–directly managed account was settled in 2018 upon commutation of the related Paris Re Reserve Agreement. See also Note 7(a) for further details. |
Summarized financial information | The summarized balance sheet and income statement of Almacantar is as follows (in thousands of U.S. dollars) : December 31, 2019 December 31, 2018 Current assets $ 963,812 $ 1,007,293 Noncurrent assets $ 1,431,384 $ 1,341,825 Current liabilities $ 159,205 $ 577,660 Noncurrent liabilities $ 862,943 $ 357,625 For the year ended December 31, 2019 December 31, 2018 December 31, 2017 Revenues $ 47,551 $ 42,671 $ 20,508 Operating (loss) profit (1) $ (63,653 ) $ (14,562 ) $ 190,613 Net (loss) income $ (56,648 ) $ (21,038 ) $ 213,241 (1) Operating (loss) profit referred to in the table above includes revenues, cost of sales, and unrealized gains (losses) on properties. |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair values and notional values of derivatives | The net fair values of derivatives included in Other invested assets within the Company’s Consolidated Balance Sheets and the related net notional exposures at December 31, 2019 and 2018 were as follows (in thousands of U.S. dollars): Asset derivatives at fair value Liability derivatives at fair value Net derivatives December 31, 2019 Fair value Net notional exposure Derivatives not designated as hedges Foreign exchange forward contracts $ 4,363 $ (5,643 ) $ (1,280 ) $ 3,028,063 Foreign currency option contracts 266 — 266 — Insurance-linked securities (1) 2,728 (3,871 ) (1,143 ) 46,250 Total return swaps 1,448 (2,962 ) (1,514 ) 31,641 Interest rate swaps (2) — (12,378 ) (12,378 ) — Total derivatives not designated as hedges $ 8,805 $ (24,854 ) $ (16,049 ) Asset Liability Net derivatives December 31, 2018 Fair value Net notional Derivatives designated as hedges Foreign exchange forward contracts $ — $ (2,464 ) $ (2,464 ) $ 226,019 Total derivatives designated as hedges $ — $ (2,464 ) $ (2,464 ) Derivatives not designated as hedges Foreign exchange forward contracts $ 17,820 $ (1,209 ) $ 16,611 $ 2,231,871 Insurance-linked securities (1) 2,824 (2,568 ) 256 59,257 Total return swaps 1,697 (3,232 ) (1,535 ) 41,980 Interest rate swaps (2) 10 (9,194 ) (9,184 ) 1,840 Total derivatives not designated as hedges $ 22,351 $ (16,203 ) $ 6,148 Total derivatives $ 22,351 $ (18,667 ) $ 3,684 (1) Insurance-linked securities include longevity swaps for which the notional amounts are not reflective of the overall potential exposure of the swaps. The net notional exposure above included the Company's best estimate of the present value of future expected claims. (2) The Company enters into interest rate swaps to mitigate notional exposures on certain total return swaps and certain fixed maturities. The net notional exposure for interest rate swaps above relates to fixed maturities. |
Gains and losses for derivatives not designated as hedges | The gains and losses in the Consolidated Statements of Operations for derivatives not designated as hedges for the years ended December 31, 2019 , 2018 and 2017 were as follows (in thousands of U.S. dollars): 2019 2018 2017 Foreign exchange forward contracts $ (41,171 ) $ 45,143 $ (41,776 ) Total included in Net foreign exchange (losses) gains $ (41,171 ) $ 45,143 $ (41,776 ) Futures contracts $ (9,952 ) $ 11,043 $ (11,683 ) Insurance-linked securities (4,381 ) 6,134 (563 ) Total return swaps — — 464 Interest rate swaps (5,230 ) 2,332 1,105 TBAs — (13,614 ) 4,742 Other 463 — — Total included in Net realized and unrealized investment gains (losses) $ (19,100 ) $ 5,895 $ (5,935 ) Total derivatives not designated as hedges $ (60,271 ) $ 51,038 $ (47,711 ) |
Gross and net fair values of derivatives subject to offsetting | The gross and net fair values of derivatives that are subject to offsetting in the Consolidated Balance Sheets at December 31, 2019 and 2018 were as follows (in thousands of U.S. dollars): Gross amounts offset in the balance sheet Net amounts of assets/liabilities presented in the balance sheet Gross amounts not offset in the balance sheet December 31, 2019 Gross amounts recognized (1) Financial instruments Cash collateral received/pledged Net amount Total derivative assets $ 8,805 $ — $ 8,805 $ — $ (19,537 ) $ (10,732 ) Total derivative liabilities $ (24,854 ) $ — $ (24,854 ) $ — $ 2,977 $ (21,877 ) December 31, 2018 Total derivative assets $ 22,351 $ — $ 22,351 $ (544 ) $ (24,704 ) $ (2,897 ) Total derivative liabilities $ (18,667 ) $ — $ (18,667 ) $ 544 $ 5,221 $ (12,902 ) (1) Amounts include all derivative instruments, irrespective of whether there is a legally enforceable master netting arrangement in place. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and intangible assets rollforward | The Company’s goodwill related to the acquisitions of PartnerRe SA, Winterthur Re, Paris Re and Presidio and intangible assets related to the acquisitions of Paris Re, Presidio, Aurigen and Claims Analytics at December 31, 2019 , 2018 and 2017 were as follows (in thousands of U.S. dollars): Goodwill Definite- lived intangible assets Indefinite- lived intangible assets Total intangible assets Balance at December 31, 2016 $ 456,380 $ 99,742 $ 7,350 $ 107,092 Acquired during the year (1) — 75,583 2,205 77,788 Intangible assets amortization n/a (24,646 ) n/a (24,646 ) Balance at December 31, 2017 $ 456,380 $ 150,679 $ 9,555 $ 160,234 Acquired during the year (2) — 4,138 — 4,138 Intangible assets amortization n/a (35,473 ) n/a (35,473 ) Balance at December 31, 2018 $ 456,380 $ 119,344 $ 9,555 $ 128,899 Foreign currency translation — 73 — 73 Intangible assets amortization n/a (11,434 ) n/a (11,434 ) Balance at December 31, 2019 $ 456,380 $ 107,983 $ 9,555 $ 117,538 n/a: Not applicable (1) In April 2017, the Company completed the acquisition of Aurigen. The Company recorded intangible assets related to the life value of business acquired (life VOBA) of $76 million and insurance licenses of $2 million . A bargain purchase gain of less than $1 million was included in Other income in the Consolidated Statement of Operations for the year ended December 31, 2017 representing the excess of fair value of the net assets acquired over the purchase price. (2) In June 2018, the Company completed the acquisition for 100% of the assets in Claim Analytics Inc., a Canadian based provider of predictive analytics solutions for the insurance industry. In relation to this acquisition, the Company recorded intangible assets related to customer relationships of $ 4 million . |
Carrying value and accumulated amortization of intangible assets | The gross carrying value and accumulated amortization of intangible assets included in the Consolidated Balance Sheets at December 31, 2019 and 2018 were as follows (in thousands of U.S. dollars): December 31, 2019 December 31, 2018 Gross carrying value Accumulated amortization Net carrying value Gross carrying value Accumulated amortization Net carrying value Definite-lived intangible assets: Renewal rights $ 48,163 $ (35,238 ) $ 12,925 $ 48,163 $ (31,828 ) $ 16,335 Customer relationships 67,619 (42,419 ) 25,200 67,546 (36,188 ) 31,358 Life VOBA 75,583 (5,725 ) 69,858 75,583 (3,932 ) 71,651 Total definite-lived intangible assets $ 191,365 $ (83,382 ) $ 107,983 $ 191,292 $ (71,948 ) $ 119,344 Indefinite-lived intangible assets: Insurance licenses 9,555 n/a 9,555 9,555 n/a 9,555 Total intangible assets $ 200,920 $ (83,382 ) $ 117,538 $ 200,847 $ (71,948 ) $ 128,899 n/a: Not applicable |
Allocation of goodwill by segment | The allocation of the goodwill to the Company’s segments at December 31, 2019 and 2018 was as follows (in thousands of U.S. dollars): 2019 2018 P&C segment $ 242,376 $ 242,376 Specialty segment 196,047 196,047 Life and Health segment 17,957 17,957 Total $ 456,380 $ 456,380 |
Estimated future amortization expense | The estimated future amortization expense related to the Company’s definite-lived intangible assets is as follows (in thousands of U.S. dollars): Year VOBA Other definite- Total definite- 2020 $ 1,573 $ 8,422 $ 9,995 2021 1,486 7,349 8,835 2022 2,478 6,423 8,901 2023 2,272 5,641 7,913 2024 2,296 4,960 7,256 Thereafter 59,753 5,330 65,083 Total $ 69,858 $ 38,125 $ 107,983 |
Non-life and Life and Health _2
Non-life and Life and Health Reserves (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract] | |
Components of non-life reserves | The Company’s gross liability for non-life reserves reported by cedants (case reserves) and those estimated by the Company (ACRs and IBNR reserves) at December 31, 2019 and 2018 was as follows (in thousands of U.S. dollars): December 31, 2019 December 31, 2018 Case reserves $ 4,203,052 $ 4,217,068 ACRs 158,220 174,713 IBNR reserves 6,002,111 5,503,595 Non-life reserves $ 10,363,383 $ 9,895,376 |
Reconciliation of the beginning and ending gross and net liability for non-life reserves | The reconciliation of the beginning and ending gross and net liability for non-life reserves for the years ended December 31, 2019 , 2018 and 2017 was as follows (in thousands of U.S. dollars): 2019 2018 2017 Gross liability at beginning of year $ 9,895,376 $ 10,102,172 $ 9,247,200 Reinsurance recoverable at beginning of year 850,946 719,998 295,388 Net liability at beginning of year 9,044,430 9,382,174 8,951,812 Net incurred losses related to: (1) Current year 3,716,988 3,417,366 3,453,725 Prior years (56,848 ) (248,719 ) (448,158 ) 3,660,140 3,168,647 3,005,567 Net paid losses related to: Current year (439,285 ) (336,584 ) (472,291 ) Prior years (2,651,385 ) (2,585,403 ) (2,506,760 ) (3,090,670 ) (2,921,987 ) (2,979,051 ) Retroactive reinsurance recoverable (2) (81,013 ) — — Change in Paris Re reserve agreement (3) — (397,493 ) (3,481 ) Effects of foreign exchange rate changes 75,701 (186,911 ) 407,327 Net liability at end of year $ 9,608,588 $ 9,044,430 $ 9,382,174 Reinsurance recoverable at end of year 754,795 850,946 719,998 Gross liability at end of year $ 10,363,383 $ 9,895,376 $ 10,102,172 (1) Net incurred losses include favorable loss development of $3 million during the year ended December 31, 2019, which are allocated to Corporate and Other as disclosed in Note 18. Non-life reserves allocated to Corporate and Other totaled $6 million , $9 million and $ nil at December 31, 2019, 2018 and 2017, respectively. (2) In the fourth quarter of 2019, the Company entered into a loss portfolio transfer agreement transferring 100 % of liabilities, including profit commissions, related to its wholesale managing general agent portfolio. As a result of the transaction, the Company recorded a deferred gain of $14 million , which is included in Accounts payable, accrued expenses and other in the Consolidated Balance Sheet. (3) The change in reserve agreement includes adverse development on Paris Re’s reserves which were guaranteed by Axa under the reserve agreement. In 2018, this balance also includes the reduction of the guaranteed reserves following the commutation of the agreement in the fourth quarter of 2018. |
Reconciliation of the beginning and ending gross and net liability for life and health reserves | The reconciliation of the beginning and ending gross and net liability for life and health reserves for the years ended December 31, 2019 , 2018 and 2017 was as follows (in thousands of U.S. dollars): 2019 2018 2017 Gross liability at beginning of period $ 2,198,080 $ 2,098,759 $ 1,722,330 Reinsurance recoverable at beginning of period 11,829 9,287 2,726 Net liability at beginning of period $ 2,186,251 $ 2,089,472 $ 1,719,604 Liability acquired related to the acquisition of Aurigen — — 67,916 Net incurred losses 1,263,016 1,024,608 835,415 Net losses paid (1,071,487 ) (818,916 ) (714,151 ) Effects of foreign exchange rate changes 23,081 (108,913 ) 180,688 Net liability at end of period $ 2,400,861 $ 2,186,251 $ 2,089,472 Reinsurance recoverable at end of period 16,183 11,829 9,287 Gross liability at end of period $ 2,417,044 $ 2,198,080 $ 2,098,759 |
Components of losses and loss expenses by segment | Losses and loss expenses in the Consolidated Statements of Operations for the years ended December 31, 2019 , 2018 and 2017 were comprised as follows (in thousands of U.S. dollars): 2019 2018 2017 Non-life (1) $ 3,660,140 $ 3,168,647 $ 3,005,567 Life and Health 1,263,016 1,024,608 835,415 Losses and loss expenses $ 4,923,156 $ 4,193,255 $ 3,840,982 (1) Net incurred losses include favorable loss development of $3 million during the year ended December 31, 2019, which are allocated to Corporate and Other as disclosed in Note 18. |
Incurred and paid claims development and average annual percentage payout of incurred claims by age, net of reinsurance | The information presented below for incurred and paid claims development for each of the years ended December 31, 2012 through 2018 and the average annual percentage payout of incurred claims by age, net of reinsurance, is presented as supplementary information and is unaudited. The tables below reflect losses incurred and paid losses translated to U.S. dollars at the exchange rate as of the balance sheet date whereas the losses and loss expenses in the Consolidated Statement of Operations reflect losses incurred at the average exchange rate for the period. NET INCURRED LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - NON-LIFE For the year ended December 31, December 31, 2019 Accident year 2012 2013 2014 2015 2016 2017 2018 2019 Total of IBNR plus expected development on reported claims 2012 $ 2,647,806 $ 2,459,009 $ 2,303,222 $ 2,196,596 $ 2,164,135 $ 2,195,163 $ 2,172,148 $ 2,139,972 $ 79,953 2013 2,880,337 2,706,850 2,528,689 2,475,252 2,441,912 2,414,380 2,411,641 124,904 2014 2,839,909 2,623,230 2,511,859 2,479,721 2,492,027 2,484,866 172,037 2015 2,894,162 2,603,297 2,497,256 2,512,588 2,514,275 245,645 2016 2,920,285 2,687,055 2,627,830 2,642,625 305,985 2017 2,979,457 2,944,385 2,900,190 519,547 2018 3,032,976 3,157,151 1,111,071 2019 3,380,372 2,599,954 Total $ 21,631,092 $ 5,159,096 NET PAID LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - NON-LIFE For the year ended December 31, Accident year 2012 2013 2014 2015 2016 2017 2018 2019 2012 $ 284,166 $ 1,056,888 $ 1,442,587 $ 1,610,064 $ 1,713,934 $ 1,805,174 $ 1,854,934 $ 1,910,828 2013 243,466 1,296,424 1,648,668 1,849,929 1,980,425 2,073,929 2,139,380 2014 305,500 1,316,469 1,621,164 1,830,516 1,972,511 2,079,766 2015 303,258 1,220,915 1,620,950 1,842,331 2,009,107 2016 325,991 1,371,581 1,729,815 1,999,489 2017 386,724 1,505,014 1,947,279 2018 258,686 1,402,377 2019 373,408 Total $ 13,861,634 Net reserves for Accident Years and exposures included in the triangles $ 7,769,458 All outstanding liabilities before Accident Year 2012, net of reinsurance 1,390,371 Total outstanding liabilities for unpaid claims $ 9,159,829 AVERAGE ANNUAL PERCENTAGE PAYOUT OF INCURRED CLAIMS BY AGE, NET OF REINSURANCE - NON-LIFE Years 1 2 3 4 5 6 7 8 Non-life 11% 39% 15% 9% 6% 4% 3% 3% NET INCURRED LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - PROPERTY For the year ended December 31, December 31, 2019 Accident year 2012 2013 2014 2015 2016 2017 2018 2019 Total of IBNR plus expected development on reported claims 2012 $ 662,441 $ 661,245 $ 583,098 $ 566,540 $ 551,100 $ 550,829 $ 538,974 $ 528,350 $ 1,763 2013 680,224 577,101 544,546 529,252 524,956 514,569 512,280 637 2014 516,850 472,237 450,682 448,212 444,769 443,084 1,273 2015 590,183 547,728 522,565 515,050 509,581 4,681 2016 725,033 682,433 635,793 615,922 689 2017 1,028,702 1,066,528 982,534 9,914 2018 853,796 895,740 143,479 2019 769,345 508,751 Total $ 5,256,836 $ 671,187 NET PAID LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - PROPERTY For the year ended December 31, Accident year 2012 2013 2014 2015 2016 2017 2018 2019 2012 $ 100,087 $ 357,186 $ 450,730 $ 484,755 $ 496,024 $ 505,112 $ 508,155 $ 515,287 2013 88,592 337,128 437,950 472,219 490,491 493,544 497,536 2014 93,141 324,074 388,404 414,611 424,255 429,061 2015 95,097 354,291 442,619 471,072 481,885 2016 135,797 458,282 540,023 577,319 2017 223,070 729,584 838,023 2018 76,543 552,879 2019 69,397 Total $ 3,961,387 Net reserves for Accident Years and exposures included in the triangles $ 1,295,449 All outstanding liabilities before Accident Year 2012, net of reinsurance 98,817 Total outstanding liabilities for unpaid claims $ 1,394,266 AVERAGE ANNUAL PERCENTAGE PAYOUT OF INCURRED CLAIMS BY AGE, NET OF REINSURANCE - PROPERTY Years 1 2 3 4 5 6 7 8 Property 17% 51% 15% 6% 3% 1% 1% 1% NET INCURRED LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - CASUALTY For the year ended December 31, December 31, 2019 Accident year 2012 2013 2014 2015 2016 2017 2018 2019 Total of IBNR plus expected development on reported claims 2012 $ 691,612 $ 677,836 $ 650,181 $ 609,784 $ 592,346 $ 600,562 $ 596,124 $ 581,746 $ 57,791 2013 802,811 799,292 750,054 732,098 727,631 724,046 721,739 103,987 2014 904,048 879,775 859,778 865,219 881,493 874,893 143,527 2015 901,313 842,230 818,099 860,334 863,757 198,744 2016 850,575 802,362 823,050 851,402 243,580 2017 761,332 730,116 758,644 310,148 2018 942,480 958,819 556,588 2019 1,206,641 1,034,865 Total $ 6,817,641 $ 2,649,230 NET PAID LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - CASUALTY For the year ended December 31, Accident year 2012 2013 2014 2015 2016 2017 2018 2019 2012 $ 51,617 $ 135,521 $ 205,350 $ 278,348 $ 334,492 $ 392,972 $ 424,029 $ 451,205 2013 50,730 159,533 267,552 349,230 419,638 481,271 521,963 2014 72,033 210,083 314,019 414,479 502,072 573,236 2015 67,148 187,592 300,608 398,833 501,185 2016 36,648 166,265 266,382 382,219 2017 61,252 179,150 290,131 2018 62,265 235,579 2019 88,066 Total $ 3,043,584 Net reserves for Accident Years and exposures included in the triangles $ 3,774,057 All outstanding liabilities before Accident Year 2012, net of reinsurance 1,235,855 Total outstanding liabilities for unpaid claims $ 5,009,912 AVERAGE ANNUAL PERCENTAGE PAYOUT OF INCURRED CLAIMS BY AGE, NET OF REINSURANCE - CASUALTY Years 1 2 3 4 5 6 7 8 Casualty 7% 16% 13% 12% 10% 9% 6% 5% NET INCURRED LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - SPECIALTY For the year ended December 31, December 31, 2019 Accident year 2012 2013 2014 2015 2016 2017 2018 2019 Total of IBNR plus expected development on reported claims 2012 $ 1,293,753 $ 1,119,928 $ 1,069,943 $ 1,020,272 $ 1,020,689 $ 1,043,772 $ 1,037,050 $ 1,029,876 $ 20,399 2013 1,397,302 1,330,457 1,234,089 1,213,902 1,189,325 1,175,765 1,177,622 20,280 2014 1,419,011 1,271,218 1,201,399 1,166,290 1,165,765 1,166,889 27,237 2015 1,402,666 1,213,339 1,156,592 1,137,204 1,140,937 42,220 2016 1,344,677 1,202,260 1,168,987 1,175,301 61,716 2017 1,189,423 1,147,741 1,159,012 199,485 2018 1,236,700 1,302,592 411,004 2019 1,404,386 1,056,338 Total $ 9,556,615 $ 1,838,679 NET PAID LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - SPECIALTY For the year ended December 31, Accident year 2012 2013 2014 2015 2016 2017 2018 2019 2012 $ 132,462 $ 564,181 $ 786,507 $ 846,961 $ 883,418 $ 907,090 $ 922,750 $ 944,336 2013 104,144 799,763 943,166 1,028,480 1,070,296 1,099,114 1,119,881 2014 140,326 782,312 918,741 1,001,426 1,046,184 1,077,469 2015 141,013 679,032 877,723 972,426 1,026,037 2016 153,546 747,034 923,410 1,039,951 2017 102,402 596,280 819,125 2018 119,878 613,919 2019 215,945 Total $ 6,856,663 Net reserves for Accident Years and exposures included in the triangles $ 2,699,952 All outstanding liabilities before Accident Year 2012, net of reinsurance 55,699 Total outstanding liabilities for unpaid claims $ 2,755,651 AVERAGE ANNUAL PERCENTAGE PAYOUT OF INCURRED CLAIMS BY AGE, NET OF REINSURANCE - SPECIALTY Years 1 2 3 4 5 6 7 8 Specialty 12% 48% 16% 8% 4% 2% 2% 2% |
Reconciliation of net incurred and paid claims development to Non-life reserves | The reconciliation of the net incurred and paid claims development information above to the Non-life reserves in the Consolidated Balance Sheet at December 31, 2019 was as follows (in thousands of U.S. dollars): December 31, 2019 Total outstanding liability for unpaid claims Property $ 1,394,266 Casualty 5,009,912 Specialty 2,755,651 Total outstanding liabilities for unpaid claims $ 9,159,829 Unallocated loss expenses $ 164,021 U.S. health net reserves (1) 281,022 Other 3,716 Total other liabilities $ 448,759 Net liability at end of year $ 9,608,588 Reinsurance recoverable on paid and unpaid claims Property $ 340,926 Casualty 86,940 Specialty 326,929 Reinsurance recoverable at end of year $ 754,795 Gross liability at end of year $ 10,363,383 (1) U.S. health business is not meaningful to include in the development tables as the estimated average duration of the health reserves is less than one year and substantially all claims are expected to be paid within two years, based on historical payout patterns. |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Reinsurance Disclosures [Abstract] | |
Ceded reinsurance | Assumed, ceded and net amounts for the years ended December 31, 2019 , 2018 and 2017 were as follows (in thousands of U.S. dollars): Premiums Written Premiums Earned Losses and Loss Expenses 2019 Non-life (1) $ 5,792,542 $ 5,433,357 $ 3,879,242 Life and Health 1,492,778 1,489,721 1,277,684 Assumed $ 7,285,320 $ 6,923,078 $ 5,156,926 Non-life (1) $ 353,735 $ 375,301 $ 219,102 Life and Health 22,527 22,559 14,668 Ceded $ 376,262 $ 397,860 $ 233,770 Non-life (1) $ 5,438,807 $ 5,058,056 $ 3,660,140 Life and Health 1,470,251 1,467,162 1,263,016 Net $ 6,909,058 $ 6,525,218 $ 4,923,156 Premiums Premiums Losses and Loss 2018 Non-life $ 5,064,780 $ 4,751,958 $ 3,566,201 Life and Health 1,235,149 1,235,973 1,035,363 Assumed $ 6,299,929 $ 5,987,931 $ 4,601,564 Non-life $ 472,498 $ 450,096 $ 397,554 Life and Health 24,067 24,025 10,755 Ceded $ 496,565 $ 474,121 $ 408,309 Non-life $ 4,592,282 $ 4,301,862 $ 3,168,647 Life and Health 1,211,082 1,211,948 1,024,608 Net $ 5,803,364 $ 5,513,810 $ 4,193,255 Premiums Premiums Losses and Loss 2017 Non-life $ 4,604,938 $ 4,483,662 $ 3,644,844 Life and Health 982,956 987,884 813,446 Assumed $ 5,587,894 $ 5,471,546 $ 4,458,290 Non-life $ 450,129 $ 428,471 $ 639,277 Life and Health 17,839 18,094 (21,969 ) Ceded $ 467,968 $ 446,565 $ 617,308 Non-life $ 4,154,809 $ 4,055,191 $ 3,005,567 Life and Health 965,117 969,790 835,415 Net $ 5,119,926 $ 5,024,981 $ 3,840,982 (1) Non-life Losses and loss expenses include amounts allocated to Corporate and Other as disclosed in Note 18. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Summary of debt outstanding | The debt outstanding related to senior notes and capital efficient notes (CENts) and the carrying value recorded in the Consolidated Balance Sheets at December 31, 2019 and 2018 was comprised as follows (in thousands): December 31, 2019 December 31, 2018 Issuer Related Maturity Date Commitment Carrying Value Fair Value Carrying Value Fair Value Debt related to senior notes PartnerRe Finance B LLC Due 2020 $ — $ — $ — $ 500,000 $ 515,518 PartnerRe Finance B LLC Due 2029 $ 500,000 495,614 535,309 — — PartnerRe Ireland Finance DAC Due 2026 € 750,000 832,351 871,088 849,017 825,546 Total Debt related to senior notes $ 1,327,965 $ 1,406,397 $ 1,349,017 $ 1,341,064 Debt related to CENts PartnerRe Finance II Inc. Due 2066 $ 62,484 $ 70,089 $ 55,866 $ 70,989 $ 59,299 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Preferred shares | At December 31, 2019 and 2018 , the Company's issued and outstanding redeemable preferred shares, each with a par value of $1.00 per share, were as follows (in millions of U.S. dollars, except number of shares and percentage amounts): Series F Series G Series H Series I Total Date of issuance February 2013 May 2016 May 2016 May 2016 Number of preferred shares outstanding 2,679,426 6,415,264 11,753,798 7,320,574 28,169,062 Annual dividend rate 5.875 % 6.5 % 7.25 % 5.875 % Underwriting discounts and commissions (1) $ 2.3 $ 5.4 $ 9.5 $ 6.4 $ 23.6 Aggregate liquidation value, at $25 per share $ 67.0 $ 160.4 $ 293.8 $ 183.0 $ 704.2 (1) Underwriting discounts and commissions represent the original amounts paid to issue Series D, E and F shares. These amounts were reallocated on a pro-rata basis between the previously issued and the newly issued shares as a result of the share exchange in May 2016 for $nil consideration described below. |
Dividend Restrictions and Sta_2
Dividend Restrictions and Statutory Requirements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure - Dividend Restrictions and Statutory Requirements [Abstract] | |
Statutory measurements | The statutory net income (loss) of PartnerRe Bermuda, PartnerRe Europe, PartnerRe U.S. and PartnerRe Asia for the years ended December 31, 2019 , 2018 and 2017 was as follows (in millions of U.S. dollars): 2019 2018 2017 PartnerRe Bermuda $ 863 $ 138 $ (69 ) PartnerRe Europe $ 188 $ 1 $ 153 PartnerRe U.S. $ (106 ) $ (197 ) $ 24 PartnerRe Asia $ 8 $ (40 ) $ 18 The required and actual statutory capital and surplus of PartnerRe Bermuda, PartnerRe Europe, PartnerRe U.S. and PartnerRe Asia at December 31, 2019 and 2018 was as follows (in millions of U.S. dollars): PartnerRe Bermuda PartnerRe Europe PartnerRe U.S. PartnerRe Asia 2019 2018 2019 2018 2019 2018 2019 2018 Required statutory capital and surplus $ 2,441 $ 2,145 $ 1,532 $ 1,511 $ 911 $ 732 $ 64 $ 56 Actual statutory capital and surplus $ 4,858 $ 4,233 $ 2,219 $ 2,169 $ 1,080 $ 1,094 $ 208 $ 208 |
Taxation (Tables)
Taxation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Components of income tax expense | Income tax expense (benefit) for the years ended December 31, 2019 , 2018 and 2017 was as follows (in thousands of U.S. dollars): 2019 2018 2017 Current income tax expense (benefit) U.S. $ 12,899 $ (6,872 ) $ (10,031 ) Non U.S. 64,069 33,887 76,425 Total current income tax expense $ 76,968 $ 27,015 $ 66,394 Deferred income tax (benefit) expense U.S. $ (25,850 ) $ (40,318 ) $ 5,538 Non U.S. 4,268 3,256 (58,702 ) Total deferred income tax (benefit) $ (21,582 ) $ (37,062 ) $ (53,164 ) Unrecognized tax (benefit) expense U.S. $ — $ — $ — Non U.S. (2,850 ) 1,113 (2,872 ) Total unrecognized tax (benefit) expense $ (2,850 ) $ 1,113 $ (2,872 ) Total income tax (benefit) expense U.S. $ (12,951 ) $ (47,190 ) $ (4,493 ) Non U.S. 65,487 38,256 14,851 Total income tax expense (benefit) $ 52,536 $ (8,934 ) $ 10,358 |
Income before taxes attributable to domestic and foreign operations | Income (loss) before taxes attributable to the Company’s domestic and foreign operations and a reconciliation of the actual income tax rate to the amount computed by applying the effective tax rate of 0% under Bermuda (the Company’s domicile) law to income (loss) before taxes was as follows for the years ended December 31, 2019 , 2018 and 2017 (in thousands of U.S. dollars): 2019 2018 2017 Domestic (Bermuda) $ 715,912 $ 33,759 $ 82,219 Foreign 273,372 (128,687 ) 192,160 Income (loss) before taxes $ 989,284 $ (94,928 ) $ 274,379 |
Reconciliation of effective tax rate | Reconciliation of effective tax rate (% of income (loss) before taxes) Expected tax rate 0.0 % 0.0 % 0.0 % Foreign taxes at local expected tax rates 6.5 14.3 11.4 Impact of foreign exchange gains or losses (0.5 ) (4.2 ) (3.2 ) Unrecognized tax benefit 0.2 (1.2 ) (1.0 ) Tax-exempt income and expenses not deductible (0.6 ) 7.3 (5.2 ) Foreign branch tax (1.2 ) (4.1 ) (24.6 ) Valuation allowance 0.7 (12.3 ) 24.8 Outside basis difference in subsidiary — 6.7 — Other 0.2 2.9 1.6 Actual tax rate 5.3 % 9.4 % 3.8 % |
Components of net tax assets and liabilities | The components of net tax assets and liabilities at December 31, 2019 and 2018 were as follows (in thousands of U.S. dollars): December 31, 2019 December 31, 2018 Net tax assets $ 179,813 $ 157,690 Net tax liabilities (135,966 ) (101,525 ) Net tax assets $ 43,847 $ 56,165 December 31, 2019 December 31, 2018 Net current tax assets $ 65,000 $ 102,091 Net deferred tax liabilities (15,464 ) (37,183 ) Net unrecognized tax benefit (5,689 ) (8,743 ) Net tax assets $ 43,847 $ 56,165 |
Significant components of net deferred tax assets and liabilities | Significant components of the net deferred tax assets and liabilities at December 31, 2019 and 2018 were as follows (in thousands of U.S. dollars): December 31, 2019 December 31, 2018 Deferred tax assets Discounting of loss reserves and adjustment to life policy reserves $ 15,924 $ 27,103 Foreign tax credit carryforwards 173,936 161,177 Tax loss carryforwards 80,523 49,721 Unearned premiums 37,226 26,071 Other deferred tax assets 50,738 47,877 $ 358,347 $ 311,949 Valuation allowance (186,907 ) (189,090 ) Deferred tax assets $ 171,440 $ 122,859 Deferred tax liabilities Deferred acquisition costs $ 64,140 $ 45,558 Goodwill and other intangibles 61,773 65,114 Equalization reserves 6,416 16,606 Unrealized appreciation and timing differences on investments 26,752 5,012 Unrealized appreciation and timing differences on foreign exchange revaluations 18,830 21,117 Other deferred tax liabilities 8,993 6,635 Deferred tax liabilities $ 186,904 $ 160,042 Net deferred tax liabilities $ (15,464 ) $ (37,183 ) |
Total amount of unrecognized tax benefits | The total amount of unrecognized tax benefits for the years ended December 31, 2019 , 2018 and 2017 was as follows (in thousands of U.S. dollars): January 1, 2019 Changes in tax positions taken during a prior year Tax positions taken during the current year Change as a result of a lapse of the statute of limitations Impact of the change in foreign currency exchange rates December 31, 2019 Unrecognized tax benefits that, if recognized, would impact the effective tax rate $ 6,639 $ (3,560 ) $ 1,258 $ — $ (152 ) $ 4,185 Interest and penalties recognized on the above 2,104 (669 ) 121 — (52 ) 1,504 Total unrecognized tax benefits, including interest and penalties $ 8,743 $ (4,229 ) $ 1,379 $ — $ (204 ) $ 5,689 January 1, 2018 Changes in tax Tax positions Change as a Impact of the December 31, 2018 Unrecognized tax benefits that, if recognized, would impact the effective tax rate $ 6,460 $ 73 $ 346 $ — $ (240 ) $ 6,639 Interest and penalties recognized on the above 1,481 691 — — (68 ) 2,104 Total unrecognized tax benefits, including interest and penalties $ 7,941 $ 764 $ 346 $ — $ (308 ) $ 8,743 January 1, Changes in tax Tax positions Change as a Impact of the December 31, Unrecognized tax benefits that, if recognized, would impact the effective tax rate $ 8,722 $ 281 $ 589 $ (4,115 ) $ 983 $ 6,460 Interest and penalties recognized on the above 968 900 6 (534 ) 141 1,481 Total unrecognized tax benefits, including interest and penalties $ 9,690 $ 1,181 $ 595 $ (4,649 ) $ 1,124 $ 7,941 |
Share-Based Incentives (Tables)
Share-Based Incentives (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Activity summary of share-based incentives | The following table provides an activity summary of the Company's restricted and unrestricted Class B shares outstanding: Restricted Class B shares Unrestricted Class B shares Total Class B shares Outstanding December 31, 2017 71,658 183,834 255,492 Granted 90,152 — 90,152 Outstanding December 31, 2018 161,810 183,834 345,644 Granted 117,929 — 117,929 Purchased — 18,875 18,875 Repurchased (100,407 ) (100,273 ) (200,680 ) Outstanding December 31, 2019 179,332 102,436 281,768 |
Retirement Benefit Arrangemen_2
Retirement Benefit Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Funded status | At December 31, 2019 and 2018 , the funded status of the Zurich Plan was as follows (in thousands of U.S. dollars): 2019 2018 Underfunded pension obligation at beginning of year $ 37,105 $ 64,342 Change in pension obligation Service cost $ 8,619 $ 7,203 Interest cost 1,584 1,366 Plan participants’ contributions 3,604 2,938 Actuarial loss (gain) 18,286 (9,439 ) Plan amendments 3,551 (19,945 ) Benefits paid (2,352 ) (4,901 ) Foreign currency adjustments 2,828 (584 ) Change in pension obligation $ 36,120 $ (23,362 ) Change in fair value of plan assets Actual return on plan assets 18,140 958 Employer contributions 7,193 5,245 Plan participants’ contributions 3,604 2,938 Benefits paid (2,352 ) (4,901 ) Foreign currency adjustments 2,198 (365 ) Change in fair value of plan assets $ 28,783 $ 3,875 Underfunded pension obligation at end of year $ 44,442 $ 37,105 Additional information: Projected benefit obligation at end of year (1) $ 197,912 $ 161,792 Fair value of plan assets at end of year $ 153,470 $ 124,687 Underfunded pension obligation at end of year $ 44,442 $ 37,105 Accumulated pension obligation at end of year (2) $ 189,089 $ 152,681 (1) Represents the actuarial present value of all benefits attributed to employee service rendered to December 31, measured using assumptions as to future compensation levels (2) Represents the actuarial present value of benefits (whether vested or non-vested) attributed to employee service rendered and compensation to December 31, with no assumption about future compensation levels |
Assumptions used | The assumptions used to determine the Zurich Plan’s pension obligation and net periodic benefit cost for the years ended December 31, 2019 , 2018 and 2017 were as follows: 2019 2018 2017 Pension obligation Net periodic benefit cost Pension obligation Net periodic benefit cost Pension obligation Net periodic benefit cost Discount rate 0.25 % 1.00 % 1.00 % 0.75 % 0.75 % 0.75 % Expected long-term return on plan assets — 3.50 % — 0.75 % — 0.75 % Rate of compensation increase 2.00 % 2.00 % 2.25 % 2.25 % 2.25 % 2.00 % |
Expected future benefit payments | At December 31, 2019 , estimated employer contributions to be paid in 2020 related to the Zurich Plan were $ 7 million and future benefit payments were estimated to be paid as follows (in thousands of U.S. dollars): Year Amount 2020 $ 5,175 2021 $ 6,841 2022 $ 6,547 2023 $ 7,073 2024 $ 7,631 2025 to 2029 $ 45,389 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Additional information related to operating leases | The following table summarizes the balances related to the Company's total lease expense and provides supplemental other information related to operating leases for the year ended December 31, 2019 (in thousands of U.S. dollars): 2019 Operating lease costs $ 15,893 Variable lease costs 2,598 Sublease income (1,515 ) Total lease costs $ 16,976 Other information: Operating lease right-of-use assets (1) $ 75,774 Operating lease liabilities (2) $ 85,777 Operating lease right-of-use assets obtained in exchange for lease obligations, non-cash (3) $ 86,157 Operating cash outflows from operating leases $ 11,305 Weighted-average remaining lease term on operating leases (4) 9.2 Yrs Weighted-average discount rate on operating leases (5) 2.6 % (1) Included in Other assets in the Consolidated Balance Sheet (2) Included in Accounts payable, accrued expenses and other in the Consolidated Balance Sheet (3) Includes transition amounts related to the adoption of the new lease guidance in 2019 (4) Weighted-average remaining lease term is calculated on the basis of the remaining lease term and the lease liability balance for each lease as of the reporting date (5) Weighted-average discount rate is calculated on the basis of the discount rate for the lease that was used to calculate the lease liability balance for each lease as of the reporting date and the remaining balance of the lease payments for each lease as of the reporting date |
Contractual maturities of operating lease liabilities | The following table shows the contractual maturities of the Company's operating lease liabilities at December 31, 2019 (in thousands of U.S. dollars): Year Expected cash flows 2020 $ 17,010 2021 12,295 2022 10,376 2023 9,647 2024 8,568 2025-2038 38,902 Discount (11,021 ) Total discounted operating lease liabilities $ 85,777 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment reporting table | The segment results for the years ended December 31, 2019 , 2018 and 2017 are presented below (in millions of U.S. dollars, except ratios). Segment Information For the year ended December 31, 2019 P&C segment Specialty segment Total Non-life Life and Health segment Corporate and Other Total Gross premiums written $ 3,579 $ 2,213 $ 5,792 $ 1,493 $ — $ 7,285 Net premiums written $ 3,302 $ 2,137 $ 5,439 $ 1,470 $ — $ 6,909 Increase in unearned premiums (231 ) (150 ) (381 ) (3 ) — (384 ) Net premiums earned $ 3,071 $ 1,987 $ 5,058 $ 1,467 $ — $ 6,525 Losses and loss expenses (2,167 ) (1,496 ) (3,663 ) (1,263 ) 3 (4,923 ) Acquisition costs (783 ) (523 ) (1,306 ) (149 ) — (1,455 ) Technical result $ 121 $ (32 ) $ 89 $ 55 $ 3 $ 147 Other (loss) income (1 ) — (1 ) 15 1 15 Other expenses (80 ) (28 ) (108 ) (69 ) (193 ) (370 ) Underwriting result $ 40 $ (60 ) $ (20 ) $ 1 n/a $ (208 ) Net investment income 72 377 449 Allocated underwriting result $ 73 n/a n/a Net realized and unrealized investment gains 887 887 Interest expense (40 ) (40 ) Loss on redemption of debt (15 ) (15 ) Amortization of intangible assets (12 ) (12 ) Net foreign exchange losses (87 ) (87 ) Income tax expense (53 ) (53 ) Interest in earnings of equity method investments 16 16 Net income n/a $ 937 Loss ratio (1) 70.6 % 75.3 % 72.4 % Acquisition ratio (2) 25.5 26.3 25.8 Technical ratio (3) 96.1 % 101.6 % 98.2 % Other expense ratio (4) 2.6 1.4 2.1 Combined ratio (5) 98.7 % 103.0 % 100.3 % (1) Loss ratio is obtained by dividing losses and loss expenses by net premiums earned. (2) Acquisition ratio is obtained by dividing acquisition costs by net premiums earned. (3) Technical ratio is defined as the sum of the loss ratio and the acquisition ratio. (4) Other expense ratio is obtained by dividing other expenses by net premiums earned. (5) Combined ratio is defined as the sum of the technical ratio and the other expense ratio. Segment Information For the year ended December 31, 2018 P&C segment Specialty Total Non-life Life and Health segment Corporate and Other Total Gross premiums written $ 3,015 $ 2,050 $ 5,065 $ 1,235 $ — $ 6,300 Net premiums written $ 2,722 $ 1,870 $ 4,592 $ 1,211 $ — $ 5,803 (Increase) decrease in unearned premiums (187 ) (103 ) (290 ) 1 — (289 ) Net premiums earned $ 2,535 $ 1,767 $ 4,302 $ 1,212 $ — $ 5,514 Losses and loss expenses (2,073 ) (1,096 ) (3,169 ) (1,025 ) — (4,194 ) Acquisition costs (606 ) (502 ) (1,108 ) (129 ) — (1,237 ) Technical result $ (144 ) $ 169 $ 25 $ 58 $ — $ 83 Other income 30 — 30 13 7 50 Other expenses (75 ) (27 ) (102 ) (51 ) (153 ) (306 ) Underwriting result $ (189 ) $ 142 $ (47 ) $ 20 n/a $ (173 ) Net investment income 66 350 416 Allocated underwriting result $ 86 n/a n/a Net realized and unrealized investment losses (390 ) (390 ) Interest expense (43 ) (43 ) Amortization of intangible assets (35 ) (35 ) Net foreign exchange gains 119 119 Income tax benefit 9 9 Interest in earnings of equity method investments 11 11 Net loss n/a $ (86 ) Loss ratio 81.8 % 62.0 % 73.7 % Acquisition ratio 23.9 28.4 25.8 Technical ratio 105.7 % 90.4 % 99.5 % Other expense ratio 3.0 1.5 2.4 Combined ratio 108.7 % 91.9 % 101.9 % Segment Information For the year ended December 31, 2017 P&C segment Specialty Total Life and Health segment Corporate Total Gross premiums written $ 2,671 $ 1,934 $ 4,605 $ 983 $ — $ 5,588 Net premiums written $ 2,375 $ 1,780 $ 4,155 $ 965 $ — $ 5,120 (Increase) decrease in unearned premiums (45 ) (55 ) (100 ) 5 — (95 ) Net premiums earned $ 2,330 $ 1,725 $ 4,055 $ 970 $ — $ 5,025 Losses and loss expenses (2,051 ) (955 ) (3,006 ) (835 ) — (3,841 ) Acquisition costs (534 ) (489 ) (1,023 ) (97 ) — (1,120 ) Technical result $ (255 ) $ 281 $ 26 $ 38 $ — $ 64 Other (loss) income — (1 ) (1 ) 14 2 15 Other expenses (88 ) (33 ) (121 ) (44 ) (183 ) (348 ) Underwriting result $ (343 ) $ 247 $ (96 ) $ 8 n/a $ (269 ) Net investment income 60 342 402 Allocated underwriting result $ 68 n/a n/a Net realized and unrealized investment gains 232 232 Interest expense (42 ) (42 ) Loss on redemption of debt (2 ) (2 ) Amortization of intangible assets (25 ) (25 ) Net foreign exchange losses (108 ) (108 ) Income tax expense (10 ) (10 ) Interest in earnings of equity method investments 86 86 Net income n/a $ 264 Loss ratio 88.0 % 55.4 % 74.1 % Acquisition ratio 22.9 28.4 25.2 Technical ratio 110.9 % 83.8 % 99.3 % Other expense ratio 3.8 1.9 3.0 Combined ratio 114.7 % 85.7 % 102.3 % |
Segment geographic distribution of premiums table | The following table provides the geographic distribution of gross premiums written based on the location of the underlying risk for the years ended December 31, 2019 , 2018 and 2017 (in millions of U.S. dollars, except percentages): 2019 2018 2017 North America $ 3,752 51 % $ 2,929 47 % $ 2,620 47 % Europe 2,155 30 2,152 34 1,866 33 Asia, Australia and New Zealand 835 11 699 11 565 10 Latin America and the Caribbean 264 4 260 4 267 5 Middle East, Africa, Russia and the Commonwealth of Independent States (CIS) 279 4 260 4 270 5 Total $ 7,285 100 % $ 6,300 100 % $ 5,588 100 % |
Premiums by segment and line of business | The following table provides the gross premiums written by segment and line of business for the years ended December 31, 2019 , 2018 and 2017 (in millions of U.S. dollars, except percentages): 2019 2018 2017 P&C Casualty $ 1,394 $ 1,052 $ 804 Property 644 615 547 Catastrophe 537 478 481 Motor 400 308 262 U.S. health 391 405 416 Multiline and other 213 157 161 Total P&C $ 3,579 $ 3,015 $ 2,671 Specialty Financial risks $ 587 $ 549 $ 490 Agriculture 483 506 557 Aviation and space 286 228 219 Multiline and other 276 307 199 Energy 183 79 63 Property 151 112 90 Marine 132 103 154 Engineering 102 124 117 Casualty 13 42 45 Total Specialty $ 2,213 $ 2,050 $ 1,934 Life and Health $ 1,493 $ 1,235 $ 983 Total $ 7,285 $ 6,300 $ 5,588 |
Percentage of premiums through brokers | The Company has two brokers that individually accounted for 10% or more of its gross premiums written during the years ended December 31, 2019 , 2018 and 2017 , as follows: 2019 2018 2017 Marsh (including Guy Carpenter) 28 % 22 % 25 % Aon Group (including the Benfield Group) 22 % 22 % 22 % The following table summarizes the percentage of gross premiums written through these two brokers by segment for the years ended December 31, 2019 , 2018 and 2017 : 2019 2018 2017 P&C 60 % 53 % 53 % Specialty 62 % 52 % 56 % Life and Health 8 % 11 % 12 % |
Organization (Details)
Organization (Details) - shares | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Class of Stock [Line Items] | |||
Common shares, shares issued | 100,000,000 | 100,000,000 | |
EXOR Nederland N.V. Percentage ownership | 99.70% | 99.70% | |
Class A shares | |||
Class of Stock [Line Items] | |||
Common shares, shares issued | 100,000,000 | 100,000,000 | |
Class B Shares | |||
Class of Stock [Line Items] | |||
Common shares, shares issued | 281,768 | 345,644 | 255,492 |
Significant Accounting Polici_3
Significant Accounting Policies - Narrative (Details) - 12 months ended Dec. 31, 2019 | Total | Segment |
Accounting Policies [Abstract] | ||
Number of segments | 3 | 3 |
Significant Accounting Polici_4
Significant Accounting Policies Significant Accounting Policies - Leases (Details) $ in Thousands | Dec. 31, 2019USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Operating Lease, Right-of-Use Asset | $ 75,774 |
Operating Lease, Liability | 85,777 |
Accounting Standards Update 2016-02 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Operating Lease, Right-of-Use Asset | 76,000 |
Operating Lease, Liability | $ 86,000 |
Fair Value - Hierarchy table (D
Fair Value - Hierarchy table (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturities, at fair value | $ 10,680,714 | $ 12,639,845 | ||
Short-term investments, at fair value (amortized cost: 2019, $3,993; 2018, $nil) | 1,003,421 | 493,726 | [1] | |
Equities | 1,295,164 | 694,301 | ||
Other invested assets | 2,399,885 | 784,603 | ||
Total | 15,379,184 | 14,612,475 | ||
Derivative assets | Foreign exchange forward contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other invested assets | 4,363 | 17,820 | ||
Derivative assets | Total return swaps | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other invested assets | 1,448 | 1,697 | ||
Derivative assets | Insurance-linked securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other invested assets | 2,728 | 2,824 | ||
Derivative assets | Interest rate swaps | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other invested assets | 10 | |||
Derivative assets | Foreign currency option contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other invested assets | 266 | |||
Corporate loans | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other invested assets | 1,879,105 | [2] | 401,702 | |
Notes and loan receivables and notes securitization | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other invested assets | 3,085 | 6,507 | ||
Private equities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other invested assets | 533,744 | 372,710 | ||
Derivative liabilities | Foreign exchange forward contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other invested assets | (5,643) | (3,673) | ||
Derivative liabilities | Total return swaps | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other invested assets | (2,962) | (3,232) | ||
Derivative liabilities | Insurance-linked securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other invested assets | (3,871) | (2,568) | ||
Derivative liabilities | Interest rate swaps | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other invested assets | (12,378) | (9,194) | ||
Finance | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equities | 31,443 | 25,018 | ||
Consumer cyclical | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equities | 20,117 | 6,435 | ||
Insurance | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equities | 14,960 | 2,960 | ||
Consumer noncyclical | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equities | 13,126 | 13,334 | ||
Basic Materials | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equities | 5,295 | |||
Industrials | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equities | 4,042 | 4,797 | ||
Technology | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equities | 3,027 | 17,748 | ||
Real Estate Investment | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equities | 2,385 | |||
Communications | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equities | 922 | 1,451 | ||
Mutual funds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equities | 1,199,847 | 621,759 | ||
Other equities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equities | 799 | |||
U.S. government and government sponsored enterprises | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturities, at fair value | 1,421,716 | 2,345,008 | ||
U.S. states, territories and municipalities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturities, at fair value | 157,234 | 134,593 | ||
Non US sovereign government supranational and government related | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturities, at fair value | 3,255,154 | 2,158,642 | ||
Corporate bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturities, at fair value | 2,662,089 | 5,611,678 | ||
Asset-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturities, at fair value | 18,228 | 58,683 | ||
Residential mortgage-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturities, at fair value | 3,166,290 | 2,331,230 | ||
Other mortgage-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturities, at fair value | 3 | 11 | ||
Quoted prices in active markets for identical assets (Level 1) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturities, at fair value | 0 | 0 | ||
Short-term investments, at fair value (amortized cost: 2019, $3,993; 2018, $nil) | 0 | 0 | ||
Equities | 83,128 | 45,386 | ||
Other invested assets | 0 | 0 | ||
Total | 83,128 | 45,386 | ||
Quoted prices in active markets for identical assets (Level 1) | Derivative assets | Foreign exchange forward contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other invested assets | 0 | 0 | ||
Quoted prices in active markets for identical assets (Level 1) | Derivative assets | Total return swaps | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other invested assets | 0 | 0 | ||
Quoted prices in active markets for identical assets (Level 1) | Derivative assets | Insurance-linked securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other invested assets | 0 | 0 | ||
Quoted prices in active markets for identical assets (Level 1) | Derivative assets | Interest rate swaps | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other invested assets | 0 | |||
Quoted prices in active markets for identical assets (Level 1) | Derivative assets | Foreign currency option contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other invested assets | 0 | |||
Quoted prices in active markets for identical assets (Level 1) | Corporate loans | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other invested assets | 0 | 0 | ||
Quoted prices in active markets for identical assets (Level 1) | Notes and loan receivables and notes securitization | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other invested assets | 0 | 0 | ||
Quoted prices in active markets for identical assets (Level 1) | Private equities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other invested assets | 0 | 0 | ||
Quoted prices in active markets for identical assets (Level 1) | Derivative liabilities | Foreign exchange forward contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other invested assets | 0 | 0 | ||
Quoted prices in active markets for identical assets (Level 1) | Derivative liabilities | Total return swaps | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other invested assets | 0 | 0 | ||
Quoted prices in active markets for identical assets (Level 1) | Derivative liabilities | Insurance-linked securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other invested assets | 0 | 0 | ||
Quoted prices in active markets for identical assets (Level 1) | Derivative liabilities | Interest rate swaps | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other invested assets | 0 | 0 | ||
Quoted prices in active markets for identical assets (Level 1) | Finance | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equities | 31,315 | 11,307 | ||
Quoted prices in active markets for identical assets (Level 1) | Consumer cyclical | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equities | 20,117 | 6,435 | ||
Quoted prices in active markets for identical assets (Level 1) | Insurance | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equities | 5,284 | 1,771 | ||
Quoted prices in active markets for identical assets (Level 1) | Consumer noncyclical | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equities | 13,126 | 13,334 | ||
Quoted prices in active markets for identical assets (Level 1) | Basic Materials | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equities | 5,295 | |||
Quoted prices in active markets for identical assets (Level 1) | Industrials | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equities | 4,042 | 4,797 | ||
Quoted prices in active markets for identical assets (Level 1) | Technology | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equities | 3,027 | 5,492 | ||
Quoted prices in active markets for identical assets (Level 1) | Real Estate Investment | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equities | 0 | |||
Quoted prices in active markets for identical assets (Level 1) | Communications | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equities | 922 | 1,451 | ||
Quoted prices in active markets for identical assets (Level 1) | Mutual funds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equities | 0 | 0 | ||
Quoted prices in active markets for identical assets (Level 1) | Other equities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equities | 799 | |||
Quoted prices in active markets for identical assets (Level 1) | U.S. government and government sponsored enterprises | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturities, at fair value | 0 | 0 | ||
Quoted prices in active markets for identical assets (Level 1) | U.S. states, territories and municipalities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturities, at fair value | 0 | 0 | ||
Quoted prices in active markets for identical assets (Level 1) | Non US sovereign government supranational and government related | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturities, at fair value | 0 | 0 | ||
Quoted prices in active markets for identical assets (Level 1) | Corporate bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturities, at fair value | 0 | 0 | ||
Quoted prices in active markets for identical assets (Level 1) | Asset-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturities, at fair value | 0 | 0 | ||
Quoted prices in active markets for identical assets (Level 1) | Residential mortgage-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturities, at fair value | 0 | 0 | ||
Quoted prices in active markets for identical assets (Level 1) | Other mortgage-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturities, at fair value | 0 | 0 | ||
Significant other observable inputs (Level 2) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturities, at fair value | 10,500,372 | 12,479,881 | ||
Short-term investments, at fair value (amortized cost: 2019, $3,993; 2018, $nil) | 1,003,421 | 493,726 | [1] | |
Equities | 275 | 1,190 | ||
Other invested assets | (13,392) | 4,963 | ||
Total | 11,490,676 | 12,979,760 | ||
Significant other observable inputs (Level 2) | Derivative assets | Foreign exchange forward contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other invested assets | 4,363 | 17,820 | ||
Significant other observable inputs (Level 2) | Derivative assets | Total return swaps | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other invested assets | 0 | 0 | ||
Significant other observable inputs (Level 2) | Derivative assets | Insurance-linked securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other invested assets | 0 | 0 | ||
Significant other observable inputs (Level 2) | Derivative assets | Interest rate swaps | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other invested assets | 10 | |||
Significant other observable inputs (Level 2) | Derivative assets | Foreign currency option contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other invested assets | 266 | |||
Significant other observable inputs (Level 2) | Corporate loans | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other invested assets | 0 | 0 | ||
Significant other observable inputs (Level 2) | Notes and loan receivables and notes securitization | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other invested assets | 0 | 0 | ||
Significant other observable inputs (Level 2) | Private equities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other invested assets | 0 | 0 | ||
Significant other observable inputs (Level 2) | Derivative liabilities | Foreign exchange forward contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other invested assets | (5,643) | (3,673) | ||
Significant other observable inputs (Level 2) | Derivative liabilities | Total return swaps | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other invested assets | 0 | 0 | ||
Significant other observable inputs (Level 2) | Derivative liabilities | Insurance-linked securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other invested assets | 0 | 0 | ||
Significant other observable inputs (Level 2) | Derivative liabilities | Interest rate swaps | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other invested assets | (12,378) | (9,194) | ||
Significant other observable inputs (Level 2) | Finance | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equities | 2 | 1 | ||
Significant other observable inputs (Level 2) | Consumer cyclical | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equities | 0 | 0 | ||
Significant other observable inputs (Level 2) | Insurance | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equities | 273 | 1,189 | ||
Significant other observable inputs (Level 2) | Consumer noncyclical | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equities | 0 | 0 | ||
Significant other observable inputs (Level 2) | Basic Materials | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equities | 0 | |||
Significant other observable inputs (Level 2) | Industrials | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equities | 0 | 0 | ||
Significant other observable inputs (Level 2) | Technology | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equities | 0 | 0 | ||
Significant other observable inputs (Level 2) | Real Estate Investment | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equities | 0 | |||
Significant other observable inputs (Level 2) | Communications | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equities | 0 | 0 | ||
Significant other observable inputs (Level 2) | Mutual funds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equities | 0 | 0 | ||
Significant other observable inputs (Level 2) | Other equities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equities | 0 | |||
Significant other observable inputs (Level 2) | U.S. government and government sponsored enterprises | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturities, at fair value | 1,421,716 | 2,345,008 | ||
Significant other observable inputs (Level 2) | U.S. states, territories and municipalities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturities, at fair value | 13,807 | 13,695 | ||
Significant other observable inputs (Level 2) | Non US sovereign government supranational and government related | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturities, at fair value | 3,255,154 | 2,158,642 | ||
Significant other observable inputs (Level 2) | Corporate bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturities, at fair value | 2,643,402 | 5,590,208 | ||
Significant other observable inputs (Level 2) | Asset-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturities, at fair value | 0 | 41,087 | ||
Significant other observable inputs (Level 2) | Residential mortgage-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturities, at fair value | 3,166,290 | 2,331,230 | ||
Significant other observable inputs (Level 2) | Other mortgage-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturities, at fair value | 3 | 11 | ||
Significant unobservable inputs (Level 3) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturities, at fair value | 180,342 | 159,964 | ||
Short-term investments, at fair value (amortized cost: 2019, $3,993; 2018, $nil) | 0 | 0 | ||
Equities | 1,211,761 | 647,725 | ||
Other invested assets | 2,413,277 | 779,640 | ||
Total | 3,805,380 | 1,587,329 | ||
Significant unobservable inputs (Level 3) | Derivative assets | Foreign exchange forward contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other invested assets | 0 | 0 | ||
Significant unobservable inputs (Level 3) | Derivative assets | Total return swaps | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other invested assets | 1,448 | 1,697 | ||
Significant unobservable inputs (Level 3) | Derivative assets | Insurance-linked securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other invested assets | 2,728 | 2,824 | ||
Significant unobservable inputs (Level 3) | Derivative assets | Interest rate swaps | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other invested assets | 0 | |||
Significant unobservable inputs (Level 3) | Derivative assets | Foreign currency option contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other invested assets | 0 | |||
Significant unobservable inputs (Level 3) | Corporate loans | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other invested assets | 1,879,105 | [2] | 401,702 | |
Significant unobservable inputs (Level 3) | Notes and loan receivables and notes securitization | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other invested assets | 3,085 | 6,507 | ||
Significant unobservable inputs (Level 3) | Private equities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other invested assets | 533,744 | 372,710 | ||
Significant unobservable inputs (Level 3) | Derivative liabilities | Foreign exchange forward contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other invested assets | 0 | 0 | ||
Significant unobservable inputs (Level 3) | Derivative liabilities | Total return swaps | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other invested assets | (2,962) | (3,232) | ||
Significant unobservable inputs (Level 3) | Derivative liabilities | Insurance-linked securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other invested assets | (3,871) | (2,568) | ||
Significant unobservable inputs (Level 3) | Derivative liabilities | Interest rate swaps | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other invested assets | 0 | 0 | ||
Significant unobservable inputs (Level 3) | Finance | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equities | 126 | 13,710 | ||
Significant unobservable inputs (Level 3) | Consumer cyclical | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equities | 0 | 0 | ||
Significant unobservable inputs (Level 3) | Insurance | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equities | 9,403 | 0 | ||
Significant unobservable inputs (Level 3) | Consumer noncyclical | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equities | 0 | 0 | ||
Significant unobservable inputs (Level 3) | Basic Materials | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equities | 0 | |||
Significant unobservable inputs (Level 3) | Industrials | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equities | 0 | 0 | ||
Significant unobservable inputs (Level 3) | Technology | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equities | 0 | 12,256 | ||
Significant unobservable inputs (Level 3) | Real Estate Investment | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equities | 2,385 | |||
Significant unobservable inputs (Level 3) | Communications | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equities | 0 | 0 | ||
Significant unobservable inputs (Level 3) | Mutual funds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equities | 1,199,847 | 621,759 | ||
Significant unobservable inputs (Level 3) | Other equities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equities | 0 | |||
Significant unobservable inputs (Level 3) | U.S. government and government sponsored enterprises | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturities, at fair value | 0 | 0 | ||
Significant unobservable inputs (Level 3) | U.S. states, territories and municipalities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturities, at fair value | 143,427 | 120,898 | ||
Significant unobservable inputs (Level 3) | Non US sovereign government supranational and government related | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturities, at fair value | 0 | 0 | ||
Significant unobservable inputs (Level 3) | Corporate bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturities, at fair value | 18,687 | 21,470 | ||
Significant unobservable inputs (Level 3) | Asset-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturities, at fair value | 18,228 | 17,596 | ||
Significant unobservable inputs (Level 3) | Residential mortgage-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturities, at fair value | 0 | 0 | ||
Significant unobservable inputs (Level 3) | Other mortgage-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturities, at fair value | $ 0 | $ 0 | ||
[1] | Short-term investments includes $229 million of available-for-sale securities with readily determinable fair values. These securities were purchased in 2018 and are recorded at fair value, which approximated amortized cost given the short term to maturity of approximately three to four months | |||
[2] | Corporate loans includes a portfolio of third-party, individually managed privately issued corporate loans that are managed under an externally managed mandate with a fair value of $1.4 billion and $0.4 billion at December 31, 2019 and 2018, respectively. The mandate primarily invests in U.S. floating rate, first lien, senior secured broadly syndicated loans with a focus on facility sizes greater than $300 million. Corporate loans also includes $0.5 billion of other privately issued corporate loans at December 31, 2019. |
Fair Value - Level 3 rollforwar
Fair Value - Level 3 rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | |||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of year | $ 1,587,329 | $ 1,400,281 | ||
Realized and unrealized investment gains (losses) included in net income | 466,884 | (22,474) | ||
Purchases | 2,180,472 | 476,761 | ||
Settlements and sales | (415,621) | (323,673) | ||
Net transfers (out of) into Level 3 | (13,684) | 56,434 | ||
Balance, end of year | 3,805,380 | 1,587,329 | ||
Change in unrealized investment gains (losses) relating to assets held at end of year | 454,337 | (37,647) | ||
Fixed maturities | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of year | 159,964 | 149,544 | ||
Realized and unrealized investment gains (losses) included in net income | 14,390 | (7,108) | ||
Purchases | 10,455 | 0 | ||
Settlements and sales | (4,467) | (7,826) | ||
Net transfers (out of) into Level 3 | 0 | 25,354 | ||
Balance, end of year | 180,342 | 159,964 | ||
Change in unrealized investment gains (losses) relating to assets held at end of year | 14,382 | (7,011) | ||
Fixed maturities | U.S. states, territories and municipalities | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of year | 120,898 | 128,806 | ||
Realized and unrealized investment gains (losses) included in net income | 12,959 | (4,417) | ||
Purchases | 10,455 | 0 | ||
Settlements and sales | (885) | (3,491) | ||
Net transfers (out of) into Level 3 | 0 | 0 | ||
Balance, end of year | 143,427 | 120,898 | ||
Change in unrealized investment gains (losses) relating to assets held at end of year | 12,951 | (4,320) | ||
Fixed maturities | Asset-backed securities | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of year | 17,596 | 20,738 | ||
Realized and unrealized investment gains (losses) included in net income | 1,274 | (2,552) | ||
Purchases | 0 | 0 | ||
Settlements and sales | (642) | (590) | ||
Net transfers (out of) into Level 3 | 0 | 0 | ||
Balance, end of year | 18,228 | 17,596 | ||
Change in unrealized investment gains (losses) relating to assets held at end of year | 1,274 | (2,552) | ||
Fixed maturities | Corporate bonds | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of year | 21,470 | 0 | ||
Realized and unrealized investment gains (losses) included in net income | 157 | (139) | ||
Purchases | 0 | 0 | ||
Settlements and sales | (2,940) | (3,745) | ||
Net transfers (out of) into Level 3 | 0 | 25,354 | ||
Balance, end of year | 18,687 | 21,470 | ||
Change in unrealized investment gains (losses) relating to assets held at end of year | 157 | (139) | ||
Equities | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of year | 647,725 | 591,623 | ||
Realized and unrealized investment gains (losses) included in net income | 394,100 | 17,356 | ||
Purchases | 210,959 | 55,027 | ||
Settlements and sales | (27,339) | [1] | (16,281) | [2] |
Net transfers (out of) into Level 3 | (13,684) | 0 | ||
Balance, end of year | 1,211,761 | 647,725 | ||
Change in unrealized investment gains (losses) relating to assets held at end of year | 392,828 | 8,747 | ||
Sales | 27,000 | 16,000 | ||
Equities | Finance | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of year | 13,710 | 21,926 | ||
Realized and unrealized investment gains (losses) included in net income | 100 | 5,065 | ||
Purchases | 0 | 0 | ||
Settlements and sales | 0 | (13,281) | [2] | |
Net transfers (out of) into Level 3 | (13,684) | 0 | ||
Balance, end of year | 126 | 13,710 | ||
Change in unrealized investment gains (losses) relating to assets held at end of year | (3) | (3,544) | ||
Equities | Technology | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of year | 12,256 | 10,961 | ||
Realized and unrealized investment gains (losses) included in net income | (1,538) | 1,295 | ||
Purchases | 0 | 0 | ||
Settlements and sales | (10,718) | 0 | [2] | |
Net transfers (out of) into Level 3 | 0 | 0 | ||
Balance, end of year | 0 | 12,256 | ||
Change in unrealized investment gains (losses) relating to assets held at end of year | 0 | 1,295 | ||
Equities | Mutual funds | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of year | 621,759 | 558,736 | ||
Realized and unrealized investment gains (losses) included in net income | 388,024 | 10,996 | ||
Purchases | 206,685 | 55,027 | ||
Settlements and sales | (16,621) | (3,000) | [2] | |
Net transfers (out of) into Level 3 | 0 | 0 | ||
Balance, end of year | 1,199,847 | 621,759 | ||
Change in unrealized investment gains (losses) relating to assets held at end of year | 385,317 | 10,996 | ||
Equities | Insurance | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of year | 0 | |||
Realized and unrealized investment gains (losses) included in net income | 7,514 | |||
Purchases | 1,889 | |||
Settlements and sales | 0 | |||
Net transfers (out of) into Level 3 | 0 | |||
Balance, end of year | 9,403 | 0 | ||
Change in unrealized investment gains (losses) relating to assets held at end of year | 7,514 | |||
Equities | Real Estate Investment | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of year | 0 | |||
Realized and unrealized investment gains (losses) included in net income | 0 | |||
Purchases | 2,385 | |||
Settlements and sales | 0 | |||
Net transfers (out of) into Level 3 | 0 | |||
Balance, end of year | 2,385 | 0 | ||
Change in unrealized investment gains (losses) relating to assets held at end of year | 0 | |||
Other invested assets | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of year | 779,640 | 657,047 | ||
Realized and unrealized investment gains (losses) included in net income | 58,394 | (32,960) | ||
Purchases | 1,959,058 | 421,466 | ||
Settlements and sales | (383,815) | [1] | (296,993) | |
Net transfers (out of) into Level 3 | 0 | 31,080 | ||
Balance, end of year | 2,413,277 | 779,640 | ||
Change in unrealized investment gains (losses) relating to assets held at end of year | 47,127 | (39,383) | ||
Sales | 289,000 | 248,000 | ||
Other invested assets | Derivatives, net | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of year | (1,279) | 11,221 | ||
Realized and unrealized investment gains (losses) included in net income | 115 | 5,038 | ||
Purchases | (2,000) | (1,623) | ||
Settlements and sales | 507 | (15,915) | [2] | |
Net transfers (out of) into Level 3 | 0 | 0 | ||
Balance, end of year | (2,657) | (1,279) | ||
Change in unrealized investment gains (losses) relating to assets held at end of year | (111) | 372 | ||
Sales | 16,000 | |||
Other invested assets | Corporate loans | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of year | 401,702 | 205,331 | ||
Realized and unrealized investment gains (losses) included in net income | 9,237 | (21,522) | ||
Purchases | 1,828,802 | 367,975 | ||
Settlements and sales | (360,636) | (150,082) | [2] | |
Net transfers (out of) into Level 3 | 0 | 0 | ||
Balance, end of year | 1,879,105 | 401,702 | ||
Change in unrealized investment gains (losses) relating to assets held at end of year | 9,940 | (20,823) | ||
Sales | 270,000 | 107,000 | ||
Other invested assets | Notes and loan receivables and notes securitization | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of year | 6,507 | 108,563 | ||
Realized and unrealized investment gains (losses) included in net income | (717) | (4,054) | ||
Purchases | 0 | 0 | ||
Settlements and sales | (2,705) | (98,002) | [2] | |
Net transfers (out of) into Level 3 | 0 | 0 | ||
Balance, end of year | 3,085 | 6,507 | ||
Change in unrealized investment gains (losses) relating to assets held at end of year | 139 | (3,884) | ||
Sales | 2,000 | 96,000 | ||
Other invested assets | Private equities | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of year | 372,710 | 331,932 | ||
Realized and unrealized investment gains (losses) included in net income | 49,759 | (12,422) | ||
Purchases | 132,256 | 55,114 | ||
Settlements and sales | (20,981) | (32,994) | [2] | |
Net transfers (out of) into Level 3 | 0 | 31,080 | ||
Balance, end of year | 533,744 | 372,710 | ||
Change in unrealized investment gains (losses) relating to assets held at end of year | 37,159 | (15,048) | ||
Sales | 17,000 | 29,000 | ||
Funds Held - Directly Managed | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of year | $ 0 | 2,067 | ||
Realized and unrealized investment gains (losses) included in net income | 238 | |||
Purchases | 268 | |||
Settlements and sales | (2,573) | |||
Net transfers (out of) into Level 3 | 0 | |||
Balance, end of year | 0 | |||
Change in unrealized investment gains (losses) relating to assets held at end of year | 0 | |||
Sales | $ 3,000 | |||
[1] | Settlements and sales of Equities and Other invested assets included sales of $27 million and $289 million, respectively. Sales of Other invested assets of $289 million included sales of corporate loans of $270 million, notes and loan receivables and notes securitization of $2 million, and private equities of $17 million. | |||
[2] | Settlements and sales of Equities, Other invested assets, and Funds held–directly managed included sales of $16 million, $248 million and $3 million, respectively. Sales of Other invested assets of $248 million included sales of derivatives of $16 million, corporate loans of $107 million, notes and loan receivables and notes securitization of $96 million, and private equities of $29 million. |
Fair Value - Valuation Techniqu
Fair Value - Valuation Technique and Inputs (Details) $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fixed maturities, at fair value | $ 10,680,714 | $ 12,639,845 | |
Equities, at fair value | 1,295,164 | 694,301 | |
Other invested assets carried at fair value | 2,399,885 | 784,603 | |
Significant unobservable inputs (Level 3) | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fixed maturities, at fair value | 180,342 | 159,964 | |
Equities, at fair value | 1,211,761 | 647,725 | |
Other invested assets carried at fair value | 2,413,277 | 779,640 | |
Insurance | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Equities, at fair value | 14,960 | 2,960 | |
Insurance | Significant unobservable inputs (Level 3) | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Equities, at fair value | 9,403 | 0 | |
Finance | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Equities, at fair value | 31,443 | 25,018 | |
Finance | Significant unobservable inputs (Level 3) | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Equities, at fair value | 126 | 13,710 | |
Technology | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Equities, at fair value | 3,027 | 17,748 | |
Technology | Significant unobservable inputs (Level 3) | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Equities, at fair value | 0 | 12,256 | |
U.S. states, territories and municipalities | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fixed maturities, at fair value | 157,234 | 134,593 | |
U.S. states, territories and municipalities | Significant unobservable inputs (Level 3) | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fixed maturities, at fair value | 143,427 | 120,898 | |
Fixed maturities | U.S. states, territories and municipalities | Significant unobservable inputs (Level 3) | Discounted cash flow | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fixed maturities, at fair value | $ 143,427 | $ 120,898 | |
Fixed maturities | U.S. states, territories and municipalities | Significant unobservable inputs (Level 3) | Discounted cash flow | Credit spreads | Minimum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fixed maturities, measurement input | (0.001) | 0.002 | |
Fixed maturities | U.S. states, territories and municipalities | Significant unobservable inputs (Level 3) | Discounted cash flow | Credit spreads | Maximum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fixed maturities, measurement input | 0.096 | 0.102 | |
Fixed maturities | U.S. states, territories and municipalities | Significant unobservable inputs (Level 3) | Discounted cash flow | Credit spreads | Weighted Average | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fixed maturities, measurement input | 0.035 | 0.043 | |
Fixed maturities | Asset-backed securities | Significant unobservable inputs (Level 3) | Discounted cash flow | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fixed maturities, at fair value | $ 18,228 | $ 17,596 | |
Fixed maturities | Asset-backed securities | Significant unobservable inputs (Level 3) | Discounted cash flow | Credit spreads | Minimum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fixed maturities, measurement input | 0.047 | 0.067 | |
Fixed maturities | Asset-backed securities | Significant unobservable inputs (Level 3) | Discounted cash flow | Credit spreads | Maximum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fixed maturities, measurement input | 0.047 | 0.067 | |
Fixed maturities | Asset-backed securities | Significant unobservable inputs (Level 3) | Discounted cash flow | Credit spreads | Weighted Average | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fixed maturities, measurement input | 0.047 | 0.067 | |
Equities | Insurance | Significant unobservable inputs (Level 3) | Weighted market comparables | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Equities, at fair value | $ 9,403 | ||
Equities | Insurance | Significant unobservable inputs (Level 3) | Weighted market comparables | Revenue multiple | Minimum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Equity securities, measurement input | 2.6 | ||
Equities | Insurance | Significant unobservable inputs (Level 3) | Weighted market comparables | Revenue multiple | Maximum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Equity securities, measurement input | 2.6 | ||
Equities | Insurance | Significant unobservable inputs (Level 3) | Weighted market comparables | Revenue multiple | Weighted Average | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Equity securities, measurement input | 2.6 | ||
Equities | Insurance | Significant unobservable inputs (Level 3) | Weighted market comparables | Adjusted earnings multiple | Minimum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Equity securities, measurement input | 7.7 | ||
Equities | Insurance | Significant unobservable inputs (Level 3) | Weighted market comparables | Adjusted earnings multiple | Maximum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Equity securities, measurement input | 7.7 | ||
Equities | Insurance | Significant unobservable inputs (Level 3) | Weighted market comparables | Adjusted earnings multiple | Weighted Average | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Equity securities, measurement input | 7.7 | ||
Equities | Insurance | Significant unobservable inputs (Level 3) | Weighted market comparables | Liquidity discount | Minimum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Equity securities, measurement input | 0.300 | ||
Equities | Insurance | Significant unobservable inputs (Level 3) | Weighted market comparables | Liquidity discount | Maximum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Equity securities, measurement input | 0.300 | ||
Equities | Insurance | Significant unobservable inputs (Level 3) | Weighted market comparables | Liquidity discount | Weighted Average | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Equity securities, measurement input | 0.300 | ||
Equities | Finance | Significant unobservable inputs (Level 3) | Lag reported market value | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Equities, at fair value | [1] | $ 13,710 | |
Equities | Finance | Significant unobservable inputs (Level 3) | Lag reported market value | Transaction price | Minimum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Equity securities, measurement input | 12 | ||
Equities | Finance | Significant unobservable inputs (Level 3) | Lag reported market value | Transaction price | Maximum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Equity securities, measurement input | 12 | ||
Equities | Finance | Significant unobservable inputs (Level 3) | Lag reported market value | Transaction price | Weighted Average | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Equity securities, measurement input | 12 | ||
Equities | Technology | Significant unobservable inputs (Level 3) | Reported market value | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Equities, at fair value | $ 12,256 | ||
Equities | Technology | Significant unobservable inputs (Level 3) | Reported market value | Tangible book value multiple | Minimum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Equity securities, measurement input | 1 | ||
Equities | Technology | Significant unobservable inputs (Level 3) | Reported market value | Tangible book value multiple | Maximum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Equity securities, measurement input | 1 | ||
Equities | Technology | Significant unobservable inputs (Level 3) | Reported market value | Tangible book value multiple | Weighted Average | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Equity securities, measurement input | 1 | ||
Other invested assets | Total return swaps | Significant unobservable inputs (Level 3) | Discounted cash flow | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other invested assets carried at fair value | $ (1,514) | $ (1,535) | |
Other invested assets | Total return swaps | Significant unobservable inputs (Level 3) | Discounted cash flow | Credit spreads | Minimum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Derivatives, measurement input | 0.023 | 0.025 | |
Other invested assets | Total return swaps | Significant unobservable inputs (Level 3) | Discounted cash flow | Credit spreads | Maximum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Derivatives, measurement input | 0.24 | 0.230 | |
Other invested assets | Total return swaps | Significant unobservable inputs (Level 3) | Discounted cash flow | Credit spreads | Weighted Average | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Derivatives, measurement input | 0.169 | 0.160 | |
Other invested assets | Insurance-linked securities longevity swaps | Significant unobservable inputs (Level 3) | Discounted cash flow | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other invested assets carried at fair value | $ 2,728 | $ 2,824 | |
Other invested assets | Insurance-linked securities longevity swaps | Significant unobservable inputs (Level 3) | Discounted cash flow | Credit spreads | Minimum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Derivatives, measurement input | 0.019 | 0.026 | |
Other invested assets | Insurance-linked securities longevity swaps | Significant unobservable inputs (Level 3) | Discounted cash flow | Credit spreads | Maximum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Derivatives, measurement input | 0.019 | 0.026 | |
Other invested assets | Insurance-linked securities longevity swaps | Significant unobservable inputs (Level 3) | Discounted cash flow | Credit spreads | Weighted Average | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Derivatives, measurement input | 0.019 | 0.026 | |
Other invested assets | Insurance-linked securities pandemic swaps | Significant unobservable inputs (Level 3) | Discounted cash flow | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other invested assets carried at fair value | $ (1,871) | $ (1,301) | |
Other invested assets | Insurance-linked securities pandemic swaps | Significant unobservable inputs (Level 3) | Discounted cash flow | Credit spreads | Minimum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Derivatives, measurement input | 0.562 | 0.273 | |
Other invested assets | Insurance-linked securities pandemic swaps | Significant unobservable inputs (Level 3) | Discounted cash flow | Credit spreads | Maximum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Derivatives, measurement input | 0.562 | 0.273 | |
Other invested assets | Insurance-linked securities pandemic swaps | Significant unobservable inputs (Level 3) | Discounted cash flow | Credit spreads | Weighted Average | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Derivatives, measurement input | 0.562 | 0.273 | |
Other invested assets | Insurance-Linked Securities Weather Index Swaps | Significant unobservable inputs (Level 3) | Proprietary option model | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other invested assets carried at fair value | $ (1,267) | ||
Other invested assets | Insurance-Linked Securities Weather Index Swaps | Significant unobservable inputs (Level 3) | Proprietary option model | Index Value Temperature | Minimum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Derivatives, measurement input | 80.7 | ||
Other invested assets | Insurance-Linked Securities Weather Index Swaps | Significant unobservable inputs (Level 3) | Proprietary option model | Index Value Temperature | Maximum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Derivatives, measurement input | 3,293.8 | ||
Other invested assets | Insurance-Linked Securities Weather Index Swaps | Significant unobservable inputs (Level 3) | Proprietary option model | Index Value Temperature | Weighted Average | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Derivatives, measurement input | 175.3 | ||
Other invested assets | Notes and loan receivables | Significant unobservable inputs (Level 3) | Discounted cash flow | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other invested assets carried at fair value | $ 2,153 | $ 2,660 | |
Other invested assets | Notes and loan receivables | Significant unobservable inputs (Level 3) | Discounted cash flow | Credit spreads | Minimum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other invested assets, measurement input | 0.175 | 0.415 | |
Other invested assets | Notes and loan receivables | Significant unobservable inputs (Level 3) | Discounted cash flow | Credit spreads | Maximum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other invested assets, measurement input | 0.175 | 0.419 | |
Other invested assets | Notes and loan receivables | Significant unobservable inputs (Level 3) | Discounted cash flow | Credit spreads | Weighted Average | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other invested assets, measurement input | 0.175 | 0.415 | |
Other invested assets | Notes and loan receivables | Significant unobservable inputs (Level 3) | Discounted cash flow | Gross revenue/fair value | Minimum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other invested assets, measurement input | 1.1 | ||
Other invested assets | Notes and loan receivables | Significant unobservable inputs (Level 3) | Discounted cash flow | Gross revenue/fair value | Maximum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other invested assets, measurement input | 1.1 | ||
Other invested assets | Notes and loan receivables | Significant unobservable inputs (Level 3) | Discounted cash flow | Gross revenue/fair value | Weighted Average | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other invested assets, measurement input | 1.1 | ||
Other invested assets | Notes and loans receivable | Significant unobservable inputs (Level 3) | Discounted cash flow | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other invested assets carried at fair value | $ 2,688 | ||
Other invested assets | Notes and loans receivable | Significant unobservable inputs (Level 3) | Discounted cash flow | Credit spreads | Minimum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other invested assets, measurement input | 0.175 | ||
Other invested assets | Notes and loans receivable | Significant unobservable inputs (Level 3) | Discounted cash flow | Credit spreads | Maximum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other invested assets, measurement input | 0.175 | ||
Other invested assets | Notes and loans receivable | Significant unobservable inputs (Level 3) | Discounted cash flow | Credit spreads | Weighted Average | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other invested assets, measurement input | 0.175 | ||
Other invested assets | Notes and loans receivable | Significant unobservable inputs (Level 3) | Discounted cash flow | Gross revenue/fair value | Minimum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other invested assets, measurement input | 1.1 | ||
Other invested assets | Notes and loans receivable | Significant unobservable inputs (Level 3) | Discounted cash flow | Gross revenue/fair value | Maximum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other invested assets, measurement input | 1.1 | ||
Other invested assets | Notes and loans receivable | Significant unobservable inputs (Level 3) | Discounted cash flow | Gross revenue/fair value | Weighted Average | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other invested assets, measurement input | 1.1 | ||
Other invested assets | Note securitization | Significant unobservable inputs (Level 3) | Discounted cash flow | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other invested assets carried at fair value | $ 932 | $ 1,159 | |
Other invested assets | Note securitization | Significant unobservable inputs (Level 3) | Discounted cash flow | Credit spreads | Minimum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other invested assets, measurement input | 0.012 | 0.008 | |
Other invested assets | Note securitization | Significant unobservable inputs (Level 3) | Discounted cash flow | Credit spreads | Maximum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other invested assets, measurement input | 0.012 | 0.008 | |
Other invested assets | Note securitization | Significant unobservable inputs (Level 3) | Discounted cash flow | Credit spreads | Weighted Average | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other invested assets, measurement input | 0.012 | 0.008 | |
Other invested assets | Private equity-direct | Significant unobservable inputs (Level 3) | Weighted market comparables | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other invested assets carried at fair value | $ 1,889 | ||
Other invested assets | Private equity-direct | Significant unobservable inputs (Level 3) | Weighted market comparables | Revenue multiple | Minimum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other invested assets, measurement input | 1.1 | ||
Other invested assets | Private equity-direct | Significant unobservable inputs (Level 3) | Weighted market comparables | Revenue multiple | Maximum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other invested assets, measurement input | 1.1 | ||
Other invested assets | Private equity-direct | Significant unobservable inputs (Level 3) | Weighted market comparables | Revenue multiple | Weighted Average | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other invested assets, measurement input | 1.1 | ||
Other invested assets | Private equity-direct | Significant unobservable inputs (Level 3) | Weighted market comparables | Adjusted earnings multiple | Minimum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other invested assets, measurement input | 9.8 | ||
Other invested assets | Private equity-direct | Significant unobservable inputs (Level 3) | Weighted market comparables | Adjusted earnings multiple | Maximum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other invested assets, measurement input | 9.8 | ||
Other invested assets | Private equity-direct | Significant unobservable inputs (Level 3) | Weighted market comparables | Adjusted earnings multiple | Weighted Average | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other invested assets, measurement input | 9.8 | ||
Other invested assets | Private equity-direct | Significant unobservable inputs (Level 3) | Weighted market comparables | Liquidity discount | Minimum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other invested assets, measurement input | 0.300 | ||
Other invested assets | Private equity-direct | Significant unobservable inputs (Level 3) | Weighted market comparables | Liquidity discount | Maximum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other invested assets, measurement input | 0.300 | ||
Other invested assets | Private equity-direct | Significant unobservable inputs (Level 3) | Weighted market comparables | Liquidity discount | Weighted Average | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other invested assets, measurement input | 0.300 | ||
Other invested assets | Private equity funds | Significant unobservable inputs (Level 3) | Lag reported market value | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other invested assets carried at fair value | $ 167,804 | ||
Other invested assets | Private equity funds | Significant unobservable inputs (Level 3) | Lag reported market value | Net asset value, as reported | Minimum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other invested assets, measurement input | 1 | ||
Other invested assets | Private equity funds | Significant unobservable inputs (Level 3) | Lag reported market value | Net asset value, as reported | Maximum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other invested assets, measurement input | 1 | ||
Other invested assets | Private equity funds | Significant unobservable inputs (Level 3) | Lag reported market value | Net asset value, as reported | Weighted Average | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other invested assets, measurement input | 1 | ||
Other invested assets | Private equity funds | Significant unobservable inputs (Level 3) | Lag reported market value | Market adjustments | Minimum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other invested assets, measurement input | 0.019 | ||
Other invested assets | Private equity funds | Significant unobservable inputs (Level 3) | Lag reported market value | Market adjustments | Maximum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other invested assets, measurement input | 0.15 | ||
Other invested assets | Private equity funds | Significant unobservable inputs (Level 3) | Lag reported market value | Market adjustments | Weighted Average | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other invested assets, measurement input | 0.097 | ||
Other invested assets | Private equity funds | Significant unobservable inputs (Level 3) | Reported market value | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other invested assets carried at fair value | $ 14,438 | ||
Other invested assets | Private equity funds | Significant unobservable inputs (Level 3) | Reported market value | Net asset value, as reported | Minimum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other invested assets, measurement input | 1 | ||
Other invested assets | Private equity funds | Significant unobservable inputs (Level 3) | Reported market value | Net asset value, as reported | Maximum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other invested assets, measurement input | 1 | ||
Other invested assets | Private equity funds | Significant unobservable inputs (Level 3) | Reported market value | Net asset value, as reported | Weighted Average | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other invested assets, measurement input | 1 | ||
Other invested assets | Private equity funds | Significant unobservable inputs (Level 3) | Reported market value | Market adjustments | Minimum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other invested assets, measurement input | (0.065) | ||
Other invested assets | Private equity funds | Significant unobservable inputs (Level 3) | Reported market value | Market adjustments | Maximum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other invested assets, measurement input | (0.065) | ||
Other invested assets | Private equity funds | Significant unobservable inputs (Level 3) | Reported market value | Market adjustments | Weighted Average | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other invested assets, measurement input | (0.065) | ||
Other invested assets | Private equity - other | Significant unobservable inputs (Level 3) | Discounted cash flow | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other invested assets carried at fair value | $ 15,800 | $ 19,997 | |
Other invested assets | Private equity - other | Significant unobservable inputs (Level 3) | Discounted cash flow | Effective yield | Minimum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other invested assets, measurement input | 0.030 | 0.041 | |
Other invested assets | Private equity - other | Significant unobservable inputs (Level 3) | Discounted cash flow | Effective yield | Maximum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other invested assets, measurement input | 0.030 | 0.041 | |
Other invested assets | Private equity - other | Significant unobservable inputs (Level 3) | Discounted cash flow | Effective yield | Weighted Average | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other invested assets, measurement input | 0.030 | 0.041 | |
[1] | During 2018, the Company sold a portion of its investment and used the arm's length transaction price as an estimate of the fair value of the remaining holdings. |
Fair Value - Change in fair val
Fair Value - Change in fair value option table (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Change in unrealized gain/loss | $ 644,211 | $ (167,606) | $ 207,025 | |
Fixed maturities and short term investments | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Change in unrealized gain/loss | 190,343 | (150,926) | 124,033 | |
Equities | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Change in unrealized gain/loss | 403,011 | 2,791 | 60,460 | |
Other invested assets | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Change in unrealized gain/loss | 50,857 | (12,987) | 28,144 | |
Funds Held - Directly Managed | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Change in unrealized gain/loss | [1] | $ 0 | $ (6,484) | $ (5,612) |
[1] | The funds held–directly managed account was settled in 2018 upon commutation of the related Paris Re Reserve Agreement. See Note 7(a). |
Fair Value - narrative items (D
Fair Value - narrative items (Details) | 12 Months Ended | ||||
Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($) | ||||
Fair Value - Other Details [Line Items] | |||||
Other invested assets carried at fair value | $ 784,603,000 | $ 2,399,885,000 | |||
Short-term investments, at fair value | 493,726,000 | [1] | 1,003,421,000 | ||
Transfers between level 1 and level 2 | $ 0 | 0 | |||
Number of Equity Investments | 4 | ||||
Fixed maturities | Corporate bonds | |||||
Fair Value - Other Details [Line Items] | |||||
Transfers into level 3 | $ 25,000,000 | ||||
Other invested assets | |||||
Fair Value - Other Details [Line Items] | |||||
Carrying amount of other invested assets not at fair value | 704,000,000 | 866,000,000 | |||
Other invested assets | Private equities | |||||
Fair Value - Other Details [Line Items] | |||||
Transfers into level 3 | 31,000,000 | ||||
Available-for-sale securities | |||||
Fair Value - Other Details [Line Items] | |||||
Short-term investments, at fair value | [1] | 229,000,000 | |||
Corporate loans | |||||
Fair Value - Other Details [Line Items] | |||||
Other invested assets carried at fair value | 401,702,000 | 1,879,105,000 | [2] | ||
Individually managed private issue corporate loans | |||||
Fair Value - Other Details [Line Items] | |||||
Other invested assets carried at fair value | [2] | $ 400,000,000 | 1,400,000,000 | ||
Minimum threshold for inclusion in managed loan portfolio | 300,000,000 | ||||
Other private issue corporate loans | |||||
Fair Value - Other Details [Line Items] | |||||
Other invested assets carried at fair value | [2] | $ 500,000,000 | |||
[1] | Short-term investments includes $229 million of available-for-sale securities with readily determinable fair values. These securities were purchased in 2018 and are recorded at fair value, which approximated amortized cost given the short term to maturity of approximately three to four months | ||||
[2] | Corporate loans includes a portfolio of third-party, individually managed privately issued corporate loans that are managed under an externally managed mandate with a fair value of $1.4 billion and $0.4 billion at December 31, 2019 and 2018, respectively. The mandate primarily invests in U.S. floating rate, first lien, senior secured broadly syndicated loans with a focus on facility sizes greater than $300 million. Corporate loans also includes $0.5 billion of other privately issued corporate loans at December 31, 2019. |
Investments - Net Realized and
Investments - Net Realized and Unrealized Investment (Losses) Gains (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Schedule of Net Realized and Unrealized Investment (Losses) Gains | ||||
Net realized and unrealized investment gains (losses) | $ 886,670 | $ (389,632) | $ 232,491 | |
Trading securities | ||||
Schedule of Net Realized and Unrealized Investment (Losses) Gains | ||||
Net realized investment gains (losses) on trading securities | 250,883 | (201,950) | 21,871 | |
Change in net unrealized investment gains (losses) | 638,764 | (181,560) | 210,620 | |
Net realized and unrealized investment gains (losses) | 886,670 | (389,632) | 232,491 | |
Trading securities | Fixed maturities and short term investments | ||||
Schedule of Net Realized and Unrealized Investment (Losses) Gains | ||||
Net realized investment gains (losses) on trading securities | 243,508 | (224,887) | 28,632 | |
Change in net unrealized investment gains (losses) | 190,343 | (150,926) | 124,033 | |
Trading securities | Equities | ||||
Schedule of Net Realized and Unrealized Investment (Losses) Gains | ||||
Net realized investment gains (losses) on trading securities | 6,545 | 14,601 | (4,052) | |
Change in net unrealized investment gains (losses) | 403,011 | 2,791 | 60,460 | |
Trading securities | Other invested assets | ||||
Schedule of Net Realized and Unrealized Investment (Losses) Gains | ||||
Net realized investment gains (losses) on trading securities | 830 | 7,136 | (3,217) | |
Change in net unrealized investment gains (losses) | 44,441 | (25,607) | 32,790 | |
Trading securities | Funds Held - Directly Managed | ||||
Schedule of Net Realized and Unrealized Investment (Losses) Gains | ||||
Net realized investment gains (losses) on trading securities | [1] | 0 | 1,200 | 508 |
Change in net unrealized investment gains (losses) | [1] | 0 | (6,484) | (5,567) |
Trading securities | Other realized and unrealized investments gains (losses) | ||||
Schedule of Net Realized and Unrealized Investment (Losses) Gains | ||||
Change in net unrealized investment gains (losses) | 969 | (1,334) | (1,096) | |
Almacantar | Real Estate Investment | ||||
Schedule of Net Realized and Unrealized Investment (Losses) Gains | ||||
Impairment loss on investments in real estate | $ (2,977) | $ (6,122) | $ 0 | |
[1] | The funds held–directly managed account was settled in 2018 upon commutation of the related Paris Re Reserve Agreement. See also Note 7(a) for further details. |
Investments - Investment Income
Investments - Investment Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Net Investment Income [Line Items] | ||||
Net investment income | $ 448,538 | $ 415,921 | $ 402,071 | |
Funds held interest rate, low end of range | 0.10% | 0.10% | 0.10% | |
Funds held interest rate, high end of range | 5.10% | 7.40% | 7.00% | |
Fixed maturities | ||||
Net Investment Income [Line Items] | ||||
Net investment income | $ 379,939 | $ 378,726 | $ 382,676 | |
Short-term investments and cash and cash equivalents | ||||
Net Investment Income [Line Items] | ||||
Net investment income | 26,981 | 13,279 | 5,363 | |
Other invested assets | ||||
Net Investment Income [Line Items] | ||||
Net investment income | 68,879 | 26,234 | 11,800 | |
Equity, Funds Held And Other | ||||
Net Investment Income [Line Items] | ||||
Net investment income | [1] | 12,221 | 21,964 | 17,256 |
Funds Held - Directly Managed | ||||
Net Investment Income [Line Items] | ||||
Net investment income | [2] | 0 | 4,674 | 7,742 |
Investment Expenses | ||||
Net Investment Income [Line Items] | ||||
Net investment income | $ (39,482) | $ (28,956) | $ (22,766) | |
[1] | The Company generally earns investment income on funds held by reinsured companies based upon a predetermined interest rate, either fixed contractually at the inception of the contract or based upon a recognized index (e.g. LIBOR). Interest rates ranged from 0.1% to 5.1%, 0.1% to 7.4% and 0.1% to 7.0% for the years ended December 31, 2019, 2018 and 2017, respectively. | |||
[2] | The funds held–directly managed account was settled in 2018 upon commutation of the related Paris Re Reserve Agreement. See also Note 7(a) for further details. |
Investments - Pledged assets an
Investments - Pledged assets and net payable receivable for securities purchased sold (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Pledged assets and net payable for securities purchased [Line Items] | ||
Restricted cash and cash equivalents | $ 294 | $ 152 |
Restricted securities | 4,025 | 3,849 |
Other assets | ||
Pledged assets and net payable for securities purchased [Line Items] | ||
Receivable for securities sold | 31 | 19 |
Accounts payable, accrued expenses, and other | ||
Pledged assets and net payable for securities purchased [Line Items] | ||
Payable for securities purchased | $ 169 | $ 80 |
Investments - Equity Method Inv
Investments - Equity Method Investment - Summarized Financial Information (Details) - Almacantar Group S.A. - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Summarized financial information - balance sheet | ||||
Current assets | $ 963,812 | $ 1,007,293 | ||
Noncurrent assets | 1,431,384 | 1,341,825 | ||
Current liabilities | 159,205 | 577,660 | ||
Noncurrent liabilities | 862,943 | 357,625 | ||
Summarized financial information - income statement | ||||
Revenues | 47,551 | 42,671 | $ 20,508 | |
Operating (loss) profit | [1] | (63,653) | (14,562) | 190,613 |
Net (loss) income | (56,648) | (21,038) | $ 213,241 | |
EXOR S.A. [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 36.00% | |||
Other invested assets | ||||
Summarized financial information - income statement | ||||
Investment carrying value | $ 483,000 | $ 498,000 | ||
[1] | Operating (loss) profit referred to in the table above includes revenues, cost of sales, and unrealized gains (losses) on properties. |
Derivatives - Balance Sheet (De
Derivatives - Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | |||
Asset derivatives at fair value | [1] | $ 8,805 | $ 22,351 |
Liability derivatives at fair value | [1] | (24,854) | (18,667) |
Fair value | 3,684 | ||
Derivatives designated as hedges | |||
Derivative [Line Items] | |||
Asset derivatives at fair value | 0 | ||
Liability derivatives at fair value | (2,464) | ||
Fair value | (2,464) | ||
Net notional exposure | 0 | ||
Derivatives designated as hedges | Foreign exchange forward contracts | |||
Derivative [Line Items] | |||
Asset derivatives at fair value | 0 | ||
Liability derivatives at fair value | (2,464) | ||
Fair value | (2,464) | ||
Net notional exposure | 0 | 226,019 | |
Derivatives not designated as hedges | |||
Derivative [Line Items] | |||
Asset derivatives at fair value | 8,805 | 22,351 | |
Liability derivatives at fair value | (24,854) | (16,203) | |
Fair value | (16,049) | 6,148 | |
Derivatives not designated as hedges | Foreign exchange forward contracts | |||
Derivative [Line Items] | |||
Asset derivatives at fair value | 4,363 | 17,820 | |
Liability derivatives at fair value | (5,643) | (1,209) | |
Fair value | (1,280) | 16,611 | |
Net notional exposure | 3,028,063 | 2,231,871 | |
Derivatives not designated as hedges | Foreign currency option contracts | |||
Derivative [Line Items] | |||
Asset derivatives at fair value | 266 | ||
Liability derivatives at fair value | 0 | ||
Fair value | 266 | ||
Net notional exposure | 0 | ||
Derivatives not designated as hedges | Insurance-linked securities | |||
Derivative [Line Items] | |||
Asset derivatives at fair value | [2] | 2,728 | 2,824 |
Liability derivatives at fair value | [2] | (3,871) | (2,568) |
Fair value | [2] | (1,143) | 256 |
Net notional exposure | [2] | 46,250 | 59,257 |
Derivatives not designated as hedges | Total return swaps | |||
Derivative [Line Items] | |||
Asset derivatives at fair value | 1,448 | 1,697 | |
Liability derivatives at fair value | (2,962) | (3,232) | |
Fair value | (1,514) | (1,535) | |
Net notional exposure | 31,641 | 41,980 | |
Derivatives not designated as hedges | Interest rate swaps | |||
Derivative [Line Items] | |||
Asset derivatives at fair value | [3] | 0 | 10 |
Liability derivatives at fair value | [3] | (12,378) | (9,194) |
Fair value | [3] | (12,378) | (9,184) |
Net notional exposure | [3] | $ 0 | $ 1,840 |
[1] | Amounts include all derivative instruments, irrespective of whether there is a legally enforceable master netting arrangement in place. | ||
[2] | Insurance-linked securities include longevity swaps for which the notional amounts are not reflective of the overall potential exposure of the swaps. The net notional exposure above included the Company's best estimate of the present value of future expected claims. | ||
[3] | The Company enters into interest rate swaps to mitigate notional exposures on certain total return swaps and certain fixed maturities. The net notional exposure for interest rate swaps above relates to fixed maturities. |
Derivatives - Income Statement
Derivatives - Income Statement (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in fair value of designated cash flow hedges, net of reclassification adjustment | $ (1,877) | $ 1,877 | $ 0 |
Derivatives not designated as hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivatives recognized in income | (60,271) | 51,038 | (47,711) |
Derivatives not designated as hedges | Included in net foreign exchange gains and losses [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivatives recognized in income | (41,171) | 45,143 | (41,776) |
Derivatives not designated as hedges | Included in net foreign exchange gains and losses [Member] | Foreign exchange forward contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivatives recognized in income | (41,171) | 45,143 | (41,776) |
Derivatives not designated as hedges | Included in net realized and unrealized investment gains and losses [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivatives recognized in income | (19,100) | 5,895 | (5,935) |
Derivatives not designated as hedges | Included in net realized and unrealized investment gains and losses [Member] | Futures contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivatives recognized in income | (9,952) | 11,043 | (11,683) |
Derivatives not designated as hedges | Included in net realized and unrealized investment gains and losses [Member] | Insurance-linked securities | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivatives recognized in income | (4,381) | 6,134 | (563) |
Derivatives not designated as hedges | Included in net realized and unrealized investment gains and losses [Member] | Total return swaps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivatives recognized in income | 0 | 0 | 464 |
Derivatives not designated as hedges | Included in net realized and unrealized investment gains and losses [Member] | Interest rate swaps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivatives recognized in income | (5,230) | 2,332 | 1,105 |
Derivatives not designated as hedges | Included in net realized and unrealized investment gains and losses [Member] | TBAs | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivatives recognized in income | 0 | (13,614) | 4,742 |
Derivatives not designated as hedges | Included in net realized and unrealized investment gains and losses [Member] | Other | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivatives recognized in income | 463 | 0 | 0 |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in fair value of designated cash flow hedges, net of reclassification adjustment | 2,000 | ||
Unrealized gain on investments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in fair value of designated cash flow hedges, net of reclassification adjustment | $ (1,877) | $ 1,877 | $ 0 |
Derivatives - Offsetting (Detai
Derivatives - Offsetting (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Gross amounts of recognized, asset | [1] | $ 8,805 | $ 22,351 |
Gross amount offset in the balance sheet | 0 | 0 | |
Net amounts of asset/ liabilities presented in the balance sheet, asset | 8,805 | 22,351 | |
Gross amounts not offset in the balance sheet, financial instruments, asset | 0 | (544) | |
Gross amounts not offset in the balance sheet, cash collateral received/ pledged | (19,537) | (24,704) | |
Net amount, asset | (10,732) | (2,897) | |
Gross amounts of recognized, liability | [1] | (24,854) | (18,667) |
Gross amount offset in the balance sheet | 0 | 0 | |
Net amounts presented in the balance sheet, liability | (24,854) | (18,667) | |
Gross amounts not offset in the balance sheet, financial instruments, liability | 0 | 544 | |
Gross amounts not offset in the balance sheet, cash collateral received | 2,977 | 5,221 | |
Net amount, liability | $ (21,877) | $ (12,902) | |
[1] | Amounts include all derivative instruments, irrespective of whether there is a legally enforceable master netting arrangement in place. |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Goodwill And Intangible Assets [Line Items] | |||||
Balance at beginning of year | $ 456,380 | $ 456,380 | $ 456,380 | ||
Goodwill acquired during the year | 0 | 0 | |||
Goodwill foreign exchange and other | 0 | ||||
Balance at end of year | 456,380 | 456,380 | 456,380 | ||
Balance at beginning of year | 128,899 | ||||
Amortization of intangible assets | (11,434) | (35,473) | (24,646) | ||
Balance at end of year | 117,538 | 128,899 | |||
Definite-lived intangible assets | |||||
Goodwill And Intangible Assets [Line Items] | |||||
Balance at beginning of year | 119,344 | 150,679 | 99,742 | ||
Definite-lived intangible assets acquired during the year | 4,138 | [1] | 75,583 | [2] | |
Foreign exchange and other | 73 | ||||
Amortization of intangible assets | (11,434) | (35,473) | (24,646) | ||
Balance at end of year | 107,983 | 119,344 | 150,679 | ||
Indefinite-lived intangible assets | |||||
Goodwill And Intangible Assets [Line Items] | |||||
Balance at beginning of year | 9,555 | 9,555 | 7,350 | ||
Indefinite-lived intangible assets acquired during the year | 0 | 2,205 | [2] | ||
Foreign exchange and other | 0 | ||||
Balance at end of year | 9,555 | 9,555 | 9,555 | ||
Total intangible assets | |||||
Goodwill And Intangible Assets [Line Items] | |||||
Balance at beginning of year | 128,899 | 160,234 | 107,092 | ||
Total intangible assets acquired during the year | 73 | 4,138 | [1] | 77,788 | [2] |
Amortization of intangible assets | (11,434) | (35,473) | (24,646) | ||
Balance at end of year | $ 117,538 | $ 128,899 | $ 160,234 | ||
[1] | In June 2018, the Company completed the acquisition for 100% of the assets in Claim Analytics Inc., a Canadian based provider of predictive analytics solutions for the insurance industry. In relation to this acquisition, the Company recorded intangible assets related to customer relationships of $4 million. | ||||
[2] | In April 2017, the Company completed the acquisition of Aurigen. The Company recorded intangible assets related to the life value of business acquired (life VOBA) of $76 million and insurance licenses of $2 million. A bargain purchase gain of less than $1 million was included in Other income in the Consolidated Statement of Operations for the year ended December 31, 2017 representing the excess of fair value of the net assets acquired over the purchase price. |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Gross Values And Amortization Of Intangible Assets - (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill And Intangible Assets [Line Items] | ||||
Gross intangible assets excluding goodwill | $ 200,920 | $ 200,847 | ||
Accumulated amortization | (83,382) | (71,948) | ||
Intangible assets | 117,538 | 128,899 | ||
Definite-lived intangible assets | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Gross intangible assets excluding goodwill | 191,365 | 191,292 | ||
Accumulated amortization | (83,382) | (71,948) | ||
Intangible assets | 107,983 | 119,344 | $ 150,679 | $ 99,742 |
Definite-lived intangible assets | Renewal rights | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Gross intangible assets excluding goodwill | 48,163 | 48,163 | ||
Accumulated amortization | (35,238) | (31,828) | ||
Intangible assets | 12,925 | 16,335 | ||
Definite-lived intangible assets | Customer relationships | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Gross intangible assets excluding goodwill | 67,619 | 67,546 | ||
Accumulated amortization | (42,419) | (36,188) | ||
Intangible assets | 25,200 | 31,358 | ||
Definite-lived intangible assets | Life VOBA | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Gross intangible assets excluding goodwill | 75,583 | 75,583 | ||
Accumulated amortization | (5,725) | (3,932) | ||
Intangible assets | $ 69,858 | 71,651 | ||
Estimated useful life of intangible assets | 100 years | |||
Indefinite-lived intangible assets | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Intangible assets | $ 9,555 | 9,555 | $ 9,555 | $ 7,350 |
Indefinite-lived intangible assets | Insurance licenses | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Gross intangible assets excluding goodwill | 9,555 | 9,555 | ||
Intangible assets | $ 9,555 | $ 9,555 | ||
Minimum | Definite-lived intangible assets | Renewal rights | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Estimated useful life of intangible assets | 10 years | |||
Minimum | Definite-lived intangible assets | Customer relationships | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Estimated useful life of intangible assets | 10 years | |||
Maximum | Definite-lived intangible assets | Renewal rights | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Estimated useful life of intangible assets | 13 years | |||
Maximum | Definite-lived intangible assets | Customer relationships | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Estimated useful life of intangible assets | 13 years |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Allocation to Segments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Goodwill allocation to segments | ||||
Goodwill | $ 456,380 | $ 456,380 | $ 456,380 | $ 456,380 |
P&C | ||||
Goodwill allocation to segments | ||||
Goodwill | 242,376 | 242,376 | ||
Specialty | ||||
Goodwill allocation to segments | ||||
Goodwill | 196,047 | 196,047 | ||
Life and Health | ||||
Goodwill allocation to segments | ||||
Goodwill | $ 17,957 | $ 17,957 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Future Amortization of Finite Intangibles (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Estimated amortization expense | |
2020 | $ 9,995 |
2021 | 8,835 |
2022 | 8,901 |
2023 | 7,913 |
2024 | 7,256 |
Thereafter | 65,083 |
Total | 107,983 |
VOBA | |
Estimated amortization expense | |
2020 | 1,573 |
2021 | 1,486 |
2022 | 2,478 |
2023 | 2,272 |
2024 | 2,296 |
Thereafter | 59,753 |
Total | 69,858 |
Other intangible assets | |
Estimated amortization expense | |
2020 | 8,422 |
2021 | 7,349 |
2022 | 6,423 |
2023 | 5,641 |
2024 | 4,960 |
Thereafter | 5,330 |
Total | $ 38,125 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets - Narrative Disclosures (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Claims Analytics Inc. | ||
Goodwill And Intangible Assets [Line Items] | ||
Percentage of voting interests acquired | 100.00% | |
Claims Analytics Inc. | Customer relationships | ||
Goodwill And Intangible Assets [Line Items] | ||
Definite-lived intangible assets acquired during the year | $ 4 | |
Aurigen Capital Limited | ||
Goodwill And Intangible Assets [Line Items] | ||
Business Combination, Bargain Purchase, Gain Recognized, Amount | $ 1 | |
Aurigen Capital Limited | Life VOBA | ||
Goodwill And Intangible Assets [Line Items] | ||
Definite-lived intangible assets acquired during the year | 76 | |
Aurigen Capital Limited | Insurance licenses | ||
Goodwill And Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets acquired during the year | $ 2 |
Non-life and Life and Health _3
Non-life and Life and Health Reserves - Components of Non-life reserves (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Components of non-life reserves [Line Items] | ||||
Non-life reserves | $ 10,363,383 | $ 9,895,376 | ||
Non Life | ||||
Components of non-life reserves [Line Items] | ||||
Case reserves | 4,203,052 | 4,217,068 | ||
ACRs | 158,220 | 174,713 | ||
IBNR reserves | 6,002,111 | 5,503,595 | ||
Non-life reserves | $ 10,363,383 | $ 9,895,376 | $ 10,102,172 | $ 9,247,200 |
Non-life and Life and Health _4
Non-life and Life and Health Reserves - Non Life loss and loss expenses rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Gross liability at beginning of year | $ 9,895,376 | ||||
Reinsurance recoverable at beginning of year | 897,183 | ||||
Reinsurance recoverable at end of year | $ 889,021 | 889,021 | $ 897,183 | ||
Gross liability at end of year | $ 10,363,383 | 10,363,383 | 9,895,376 | ||
Wholesale transaction deferred gain | 14,000 | ||||
Loss portfolio transfer agreement percentage | 10000.00% | ||||
Non Life | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Gross liability at beginning of year | 9,895,376 | 10,102,172 | $ 9,247,200 | ||
Reinsurance recoverable at beginning of year | 850,946 | 719,998 | 295,388 | ||
Net liability at beginning of year | 9,044,430 | 9,382,174 | 8,951,812 | ||
Current year | [1] | 3,716,988 | 3,417,366 | 3,453,725 | |
Prior years | [1] | (56,848) | (248,719) | (448,158) | |
Net incurred losses | [1] | 3,660,140 | 3,168,647 | 3,005,567 | |
Current year | (439,285) | (336,584) | (472,291) | ||
Prior years | (2,651,385) | (2,585,403) | (2,506,760) | ||
Total Non-life Claims Paid | (3,090,670) | (2,921,987) | (2,979,051) | ||
Retroactive reinsurance recoverable | [2] | (81,013) | 0 | 0 | |
Change in Paris Re Reserve Agreement | [3] | 0 | (397,493) | (3,481) | |
Effects of foreign exchange rate changes | 75,701 | (186,911) | 407,327 | ||
Net liability at end of year | $ 9,608,588 | 9,608,588 | 9,044,430 | 9,382,174 | |
Reinsurance recoverable at end of year | 754,795 | 754,795 | 850,946 | 719,998 | |
Gross liability at end of year | 10,363,383 | 10,363,383 | 9,895,376 | 10,102,172 | |
Corporate and Other | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Gross liability at beginning of year | 9,000 | 0 | |||
Prior years | [1] | (3,000) | |||
Gross liability at end of year | $ 6,000 | $ 6,000 | $ 9,000 | $ 0 | |
[1] | Net incurred losses include favorable loss development of $3 million during the year ended December 31, 2019, which are allocated to Corporate and Other as disclosed in Note 18. Non-life reserves allocated to Corporate and Other totaled $6 million, $9 million and $nil at December 31, 2019, 2018 and 2017, respectively. | ||||
[2] | In the fourth quarter of 2019, the Company entered into a loss portfolio transfer agreement transferring 100% of liabilities, including profit commissions, related to its wholesale managing general agent portfolio. As a result of the transaction, the Company recorded a deferred gain of $14 million, which is included in Accounts payable, accrued expenses and other in the Consolidated Balance Sheet. | ||||
[3] | The change in reserve agreement includes adverse development on Paris Re’s reserves which were guaranteed by Axa under the reserve agreement. In 2018, this balance also includes the reduction of the guaranteed reserves following the commutation of the agreement in the fourth quarter of 2018. |
Non-life and Life and Health _5
Non-life and Life and Health Reserves - Guaranteed reserves, asbestos, and environmental claims and narrative (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Guaranteed Reserves | $ 426 | ||
Reserve Agreement Commutation Gain | $ 29 | ||
Liability for Asbestos and Environmental Claims, Net | $ 45 | 47 | |
Liability for Asbestos and Environmental Claims, Gross | $ 51 | $ 54 |
Non-life and Life and Health _6
Non-life and Life and Health Reserves - Life and health reserve rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Loss and Loss Expenses Including Life Policy Benefits [Line Items] | |||
Reinsurance recoverable at beginning of year | $ 897,183 | ||
Reinsurance recoverable at end of year | 889,021 | $ 897,183 | |
Life and Health | |||
Reconciliation of Loss and Loss Expenses Including Life Policy Benefits [Line Items] | |||
Gross liability at beginning of period | 2,198,080 | 2,098,759 | $ 1,722,330 |
Reinsurance recoverable at beginning of year | 11,829 | 9,287 | 2,726 |
Net liability at beginning of period | 2,186,251 | 2,089,472 | 1,719,604 |
Liability acquired related to the acquisition of Aurigen | 0 | 0 | 67,916 |
Net incurred losses | 1,263,016 | 1,024,608 | 835,415 |
Net losses paid | (1,071,487) | (818,916) | (714,151) |
Effects of foreign exchange rate changes | 23,081 | (108,913) | 180,688 |
Net liability at end of period | 2,400,861 | 2,186,251 | 2,089,472 |
Reinsurance recoverable at end of year | 16,183 | 11,829 | 9,287 |
Gross liability at end of period | $ 2,417,044 | $ 2,198,080 | $ 2,098,759 |
Minimum | |||
Reconciliation of Loss and Loss Expenses Including Life Policy Benefits [Line Items] | |||
Interest rate assumption related to policy benefits for life and annuity contracts | 0.00% | 0.00% | 0.00% |
Maximum | |||
Reconciliation of Loss and Loss Expenses Including Life Policy Benefits [Line Items] | |||
Interest rate assumption related to policy benefits for life and annuity contracts | 7.00% | 7.00% | 7.00% |
Non-life and Life and Health _7
Non-life and Life and Health Reserves - Loss and loss expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Losses and Loss Expenses by Segment [Line Items] | |||||
Losses and loss expenses | $ 4,923,156 | $ 4,193,255 | $ 3,840,982 | ||
Non Life | |||||
Losses and Loss Expenses by Segment [Line Items] | |||||
Losses and loss expenses | 3,660,140 | [1] | 3,168,647 | 3,005,567 | |
Prior years | [2] | 56,848 | 248,719 | 448,158 | |
Life and Health | |||||
Losses and Loss Expenses by Segment [Line Items] | |||||
Losses and loss expenses | 1,263,016 | $ 1,024,608 | $ 835,415 | ||
Corporate and Other | |||||
Losses and Loss Expenses by Segment [Line Items] | |||||
Prior years | [2] | $ 3,000 | |||
[1] | Non-life Losses and loss expenses include amounts allocated to Corporate and Other as disclosed in Note 18. | ||||
[2] | Net incurred losses include favorable loss development of $3 million during the year ended December 31, 2019, which are allocated to Corporate and Other as disclosed in Note 18. Non-life reserves allocated to Corporate and Other totaled $6 million, $9 million and $nil at December 31, 2019, 2018 and 2017, respectively. |
Non-life and Life and Health _8
Non-life and Life and Health Reserves - Claims development (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property | ||||||||
Claims Development [Line Items] | ||||||||
Net incurred losses and loss expenses | $ 5,256,836 | |||||||
Net paid losses and loss expenses | 3,961,387 | |||||||
Net reserves for Accident Years and exposures included in the triangles | 1,295,449 | |||||||
All outstanding liabilities before Accident Year 2012, net of reinsurance | 98,817 | |||||||
Net liability at end of year | 1,394,266 | |||||||
Total of IBNR plus expected development on reported claims | $ 671,187 | |||||||
Year One | 17.00% | |||||||
Year Two | 51.00% | |||||||
Year Three | 15.00% | |||||||
Year Four | 6.00% | |||||||
Year Five | 3.00% | |||||||
Year Six | 1.00% | |||||||
Year Seven | 1.00% | |||||||
Year Eight | 1.00% | |||||||
Property | 2012 | ||||||||
Claims Development [Line Items] | ||||||||
Net incurred losses and loss expenses | $ 528,350 | $ 538,974 | $ 550,829 | $ 551,100 | $ 566,540 | $ 583,098 | $ 661,245 | $ 662,441 |
Net paid losses and loss expenses | 515,287 | 508,155 | 505,112 | 496,024 | 484,755 | 450,730 | 357,186 | 100,087 |
Total of IBNR plus expected development on reported claims | 1,763 | |||||||
Property | 2013 | ||||||||
Claims Development [Line Items] | ||||||||
Net incurred losses and loss expenses | 512,280 | 514,569 | 524,956 | 529,252 | 544,546 | 577,101 | 680,224 | |
Net paid losses and loss expenses | 497,536 | 493,544 | 490,491 | 472,219 | 437,950 | 337,128 | 88,592 | |
Total of IBNR plus expected development on reported claims | 637 | |||||||
Property | 2014 | ||||||||
Claims Development [Line Items] | ||||||||
Net incurred losses and loss expenses | 443,084 | 444,769 | 448,212 | 450,682 | 472,237 | 516,850 | ||
Net paid losses and loss expenses | 429,061 | 424,255 | 414,611 | 388,404 | 324,074 | 93,141 | ||
Total of IBNR plus expected development on reported claims | 1,273 | |||||||
Property | 2015 | ||||||||
Claims Development [Line Items] | ||||||||
Net incurred losses and loss expenses | 509,581 | 515,050 | 522,565 | 547,728 | 590,183 | |||
Net paid losses and loss expenses | 481,885 | 471,072 | 442,619 | 354,291 | 95,097 | |||
Total of IBNR plus expected development on reported claims | 4,681 | |||||||
Property | 2016 | ||||||||
Claims Development [Line Items] | ||||||||
Net incurred losses and loss expenses | 615,922 | 635,793 | 682,433 | 725,033 | ||||
Net paid losses and loss expenses | 577,319 | 540,023 | 458,282 | 135,797 | ||||
Total of IBNR plus expected development on reported claims | 689 | |||||||
Property | 2017 | ||||||||
Claims Development [Line Items] | ||||||||
Net incurred losses and loss expenses | 982,534 | 1,066,528 | 1,028,702 | |||||
Net paid losses and loss expenses | 838,023 | 729,584 | 223,070 | |||||
Total of IBNR plus expected development on reported claims | 9,914 | |||||||
Property | 2018 | ||||||||
Claims Development [Line Items] | ||||||||
Net incurred losses and loss expenses | 895,740 | 853,796 | ||||||
Net paid losses and loss expenses | 552,879 | 76,543 | ||||||
Total of IBNR plus expected development on reported claims | 143,479 | |||||||
Property | 2019 | ||||||||
Claims Development [Line Items] | ||||||||
Net incurred losses and loss expenses | 769,345 | |||||||
Net paid losses and loss expenses | 69,397 | |||||||
Total of IBNR plus expected development on reported claims | 508,751 | |||||||
Casualty | ||||||||
Claims Development [Line Items] | ||||||||
Net incurred losses and loss expenses | 6,817,641 | |||||||
Net paid losses and loss expenses | 3,043,584 | |||||||
Net reserves for Accident Years and exposures included in the triangles | 3,774,057 | |||||||
All outstanding liabilities before Accident Year 2012, net of reinsurance | 1,235,855 | |||||||
Net liability at end of year | 5,009,912 | |||||||
Total of IBNR plus expected development on reported claims | $ 2,649,230 | |||||||
Year One | 7.00% | |||||||
Year Two | 16.00% | |||||||
Year Three | 13.00% | |||||||
Year Four | 12.00% | |||||||
Year Five | 10.00% | |||||||
Year Six | 9.00% | |||||||
Year Seven | 6.00% | |||||||
Year Eight | 5.00% | |||||||
Casualty | 2012 | ||||||||
Claims Development [Line Items] | ||||||||
Net incurred losses and loss expenses | $ 581,746 | 596,124 | 600,562 | 592,346 | 609,784 | 650,181 | 677,836 | 691,612 |
Net paid losses and loss expenses | 451,205 | 424,029 | 392,972 | 334,492 | 278,348 | 205,350 | 135,521 | 51,617 |
Total of IBNR plus expected development on reported claims | 57,791 | |||||||
Casualty | 2013 | ||||||||
Claims Development [Line Items] | ||||||||
Net incurred losses and loss expenses | 721,739 | 724,046 | 727,631 | 732,098 | 750,054 | 799,292 | 802,811 | |
Net paid losses and loss expenses | 521,963 | 481,271 | 419,638 | 349,230 | 267,552 | 159,533 | 50,730 | |
Total of IBNR plus expected development on reported claims | 103,987 | |||||||
Casualty | 2014 | ||||||||
Claims Development [Line Items] | ||||||||
Net incurred losses and loss expenses | 874,893 | 881,493 | 865,219 | 859,778 | 879,775 | 904,048 | ||
Net paid losses and loss expenses | 573,236 | 502,072 | 414,479 | 314,019 | 210,083 | 72,033 | ||
Total of IBNR plus expected development on reported claims | 143,527 | |||||||
Casualty | 2015 | ||||||||
Claims Development [Line Items] | ||||||||
Net incurred losses and loss expenses | 863,757 | 860,334 | 818,099 | 842,230 | 901,313 | |||
Net paid losses and loss expenses | 501,185 | 398,833 | 300,608 | 187,592 | 67,148 | |||
Total of IBNR plus expected development on reported claims | 198,744 | |||||||
Casualty | 2016 | ||||||||
Claims Development [Line Items] | ||||||||
Net incurred losses and loss expenses | 851,402 | 823,050 | 802,362 | 850,575 | ||||
Net paid losses and loss expenses | 382,219 | 266,382 | 166,265 | 36,648 | ||||
Total of IBNR plus expected development on reported claims | 243,580 | |||||||
Casualty | 2017 | ||||||||
Claims Development [Line Items] | ||||||||
Net incurred losses and loss expenses | 758,644 | 730,116 | 761,332 | |||||
Net paid losses and loss expenses | 290,131 | 179,150 | 61,252 | |||||
Total of IBNR plus expected development on reported claims | 310,148 | |||||||
Casualty | 2018 | ||||||||
Claims Development [Line Items] | ||||||||
Net incurred losses and loss expenses | 958,819 | 942,480 | ||||||
Net paid losses and loss expenses | 235,579 | 62,265 | ||||||
Total of IBNR plus expected development on reported claims | 556,588 | |||||||
Casualty | 2019 | ||||||||
Claims Development [Line Items] | ||||||||
Net incurred losses and loss expenses | 1,206,641 | |||||||
Net paid losses and loss expenses | 88,066 | |||||||
Total of IBNR plus expected development on reported claims | 1,034,865 | |||||||
Specialty | ||||||||
Claims Development [Line Items] | ||||||||
Net incurred losses and loss expenses | 9,556,615 | |||||||
Net paid losses and loss expenses | 6,856,663 | |||||||
Net reserves for Accident Years and exposures included in the triangles | 2,699,952 | |||||||
All outstanding liabilities before Accident Year 2012, net of reinsurance | 55,699 | |||||||
Net liability at end of year | 2,755,651 | |||||||
Total of IBNR plus expected development on reported claims | $ 1,838,679 | |||||||
Year One | 12.00% | |||||||
Year Two | 48.00% | |||||||
Year Three | 16.00% | |||||||
Year Four | 8.00% | |||||||
Year Five | 4.00% | |||||||
Year Six | 2.00% | |||||||
Year Seven | 2.00% | |||||||
Year Eight | 2.00% | |||||||
Specialty | 2012 | ||||||||
Claims Development [Line Items] | ||||||||
Net incurred losses and loss expenses | $ 1,029,876 | 1,037,050 | 1,043,772 | 1,020,689 | 1,020,272 | 1,069,943 | 1,119,928 | 1,293,753 |
Net paid losses and loss expenses | 944,336 | 922,750 | 907,090 | 883,418 | 846,961 | 786,507 | 564,181 | 132,462 |
Total of IBNR plus expected development on reported claims | 20,399 | |||||||
Specialty | 2013 | ||||||||
Claims Development [Line Items] | ||||||||
Net incurred losses and loss expenses | 1,177,622 | 1,175,765 | 1,189,325 | 1,213,902 | 1,234,089 | 1,330,457 | 1,397,302 | |
Net paid losses and loss expenses | 1,119,881 | 1,099,114 | 1,070,296 | 1,028,480 | 943,166 | 799,763 | 104,144 | |
Total of IBNR plus expected development on reported claims | 20,280 | |||||||
Specialty | 2014 | ||||||||
Claims Development [Line Items] | ||||||||
Net incurred losses and loss expenses | 1,166,889 | 1,165,765 | 1,166,290 | 1,201,399 | 1,271,218 | 1,419,011 | ||
Net paid losses and loss expenses | 1,077,469 | 1,046,184 | 1,001,426 | 918,741 | 782,312 | 140,326 | ||
Total of IBNR plus expected development on reported claims | 27,237 | |||||||
Specialty | 2015 | ||||||||
Claims Development [Line Items] | ||||||||
Net incurred losses and loss expenses | 1,140,937 | 1,137,204 | 1,156,592 | 1,213,339 | 1,402,666 | |||
Net paid losses and loss expenses | 1,026,037 | 972,426 | 877,723 | 679,032 | 141,013 | |||
Total of IBNR plus expected development on reported claims | 42,220 | |||||||
Specialty | 2016 | ||||||||
Claims Development [Line Items] | ||||||||
Net incurred losses and loss expenses | 1,175,301 | 1,168,987 | 1,202,260 | 1,344,677 | ||||
Net paid losses and loss expenses | 1,039,951 | 923,410 | 747,034 | 153,546 | ||||
Total of IBNR plus expected development on reported claims | 61,716 | |||||||
Specialty | 2017 | ||||||||
Claims Development [Line Items] | ||||||||
Net incurred losses and loss expenses | 1,159,012 | 1,147,741 | 1,189,423 | |||||
Net paid losses and loss expenses | 819,125 | 596,280 | 102,402 | |||||
Total of IBNR plus expected development on reported claims | 199,485 | |||||||
Specialty | 2018 | ||||||||
Claims Development [Line Items] | ||||||||
Net incurred losses and loss expenses | 1,302,592 | 1,236,700 | ||||||
Net paid losses and loss expenses | 613,919 | 119,878 | ||||||
Total of IBNR plus expected development on reported claims | 411,004 | |||||||
Specialty | 2019 | ||||||||
Claims Development [Line Items] | ||||||||
Net incurred losses and loss expenses | 1,404,386 | |||||||
Net paid losses and loss expenses | 215,945 | |||||||
Total of IBNR plus expected development on reported claims | 1,056,338 | |||||||
Non Life | ||||||||
Claims Development [Line Items] | ||||||||
Net incurred losses and loss expenses | 21,631,092 | |||||||
Net paid losses and loss expenses | 13,861,634 | |||||||
Net reserves for Accident Years and exposures included in the triangles | 7,769,458 | |||||||
All outstanding liabilities before Accident Year 2012, net of reinsurance | 1,390,371 | |||||||
Net liability at end of year | 9,159,829 | |||||||
Total of IBNR plus expected development on reported claims | $ 5,159,096 | |||||||
Year One | 11.00% | |||||||
Year Two | 39.00% | |||||||
Year Three | 15.00% | |||||||
Year Four | 9.00% | |||||||
Year Five | 6.00% | |||||||
Year Six | 4.00% | |||||||
Year Seven | 3.00% | |||||||
Year Eight | 3.00% | |||||||
Non Life | 2012 | ||||||||
Claims Development [Line Items] | ||||||||
Net incurred losses and loss expenses | $ 2,139,972 | 2,172,148 | 2,195,163 | 2,164,135 | 2,196,596 | 2,303,222 | 2,459,009 | 2,647,806 |
Net paid losses and loss expenses | 1,910,828 | 1,854,934 | 1,805,174 | 1,713,934 | 1,610,064 | 1,442,587 | 1,056,888 | $ 284,166 |
Total of IBNR plus expected development on reported claims | 79,953 | |||||||
Non Life | 2013 | ||||||||
Claims Development [Line Items] | ||||||||
Net incurred losses and loss expenses | 2,411,641 | 2,414,380 | 2,441,912 | 2,475,252 | 2,528,689 | 2,706,850 | 2,880,337 | |
Net paid losses and loss expenses | 2,139,380 | 2,073,929 | 1,980,425 | 1,849,929 | 1,648,668 | 1,296,424 | $ 243,466 | |
Total of IBNR plus expected development on reported claims | 124,904 | |||||||
Non Life | 2014 | ||||||||
Claims Development [Line Items] | ||||||||
Net incurred losses and loss expenses | 2,484,866 | 2,492,027 | 2,479,721 | 2,511,859 | 2,623,230 | 2,839,909 | ||
Net paid losses and loss expenses | 2,079,766 | 1,972,511 | 1,830,516 | 1,621,164 | 1,316,469 | $ 305,500 | ||
Total of IBNR plus expected development on reported claims | 172,037 | |||||||
Non Life | 2015 | ||||||||
Claims Development [Line Items] | ||||||||
Net incurred losses and loss expenses | 2,514,275 | 2,512,588 | 2,497,256 | 2,603,297 | 2,894,162 | |||
Net paid losses and loss expenses | 2,009,107 | 1,842,331 | 1,620,950 | 1,220,915 | $ 303,258 | |||
Total of IBNR plus expected development on reported claims | 245,645 | |||||||
Non Life | 2016 | ||||||||
Claims Development [Line Items] | ||||||||
Net incurred losses and loss expenses | 2,642,625 | 2,627,830 | 2,687,055 | 2,920,285 | ||||
Net paid losses and loss expenses | 1,999,489 | 1,729,815 | 1,371,581 | $ 325,991 | ||||
Total of IBNR plus expected development on reported claims | 305,985 | |||||||
Non Life | 2017 | ||||||||
Claims Development [Line Items] | ||||||||
Net incurred losses and loss expenses | 2,900,190 | 2,944,385 | 2,979,457 | |||||
Net paid losses and loss expenses | 1,947,279 | 1,505,014 | $ 386,724 | |||||
Total of IBNR plus expected development on reported claims | 519,547 | |||||||
Non Life | 2018 | ||||||||
Claims Development [Line Items] | ||||||||
Net incurred losses and loss expenses | 3,157,151 | 3,032,976 | ||||||
Net paid losses and loss expenses | 1,402,377 | $ 258,686 | ||||||
Total of IBNR plus expected development on reported claims | 1,111,071 | |||||||
Non Life | 2019 | ||||||||
Claims Development [Line Items] | ||||||||
Net incurred losses and loss expenses | 3,380,372 | |||||||
Net paid losses and loss expenses | 373,408 | |||||||
Total of IBNR plus expected development on reported claims | $ 2,599,954 |
Non-life and Life and Health _9
Non-life and Life and Health Reserves - Reconciliation of claims development to liability (Details) - 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] | |||||
Reinsurance recoverable on paid and unpaid losses | $ 889,021 | $ 897,183 | |||
Gross liability at end of year | 10,363,383 | 9,895,376 | |||
Property | |||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||
Total outstanding liability for unpaid claims | 1,394,266 | ||||
Reinsurance recoverable on paid and unpaid losses | 340,926 | ||||
Casualty | |||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||
Total outstanding liability for unpaid claims | 5,009,912 | ||||
Reinsurance recoverable on paid and unpaid losses | 86,940 | ||||
Specialty | |||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||
Total outstanding liability for unpaid claims | 2,755,651 | ||||
Reinsurance recoverable on paid and unpaid losses | 326,929 | ||||
Non Life | |||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||
Total outstanding liability for unpaid claims | 9,159,829 | ||||
Other liabilities | 448,759 | ||||
Net liability at end of year | 9,608,588 | 9,044,430 | $ 9,382,174 | $ 8,951,812 | |
Reinsurance recoverable on paid and unpaid losses | 754,795 | 850,946 | 719,998 | 295,388 | |
Gross liability at end of year | 10,363,383 | $ 9,895,376 | $ 10,102,172 | $ 9,247,200 | |
Non Life | Unallocated loss expenses | |||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||
Other liabilities | 164,021 | ||||
Non Life | US Health net reserves | |||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||
Other liabilities | [1] | 281,022 | |||
Non Life | Other | |||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||
Other liabilities | $ 3,716 | ||||
[1] | U.S. health business is not meaningful to include in the development tables as the estimated average duration of the health reserves is less than one year and substantially all claims are expected to be paid within two years, based on historical payout patterns. |
Reinsurance (narrative) (Detail
Reinsurance (narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Allowance for reinsurance recoverable | ||
Allowance for uncollectible reinsurance recoverable [Line Items] | ||
Allowance for uncollectible reinsurance recoverable | $ 0 | $ 0 |
Reinsurance Reinsurance (Detail
Reinsurance Reinsurance (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Premiums Written, Net [Abstract] | ||||
Gross premiums written | $ 7,285,320 | $ 6,299,929 | $ 5,587,894 | |
Ceded Premiums Written | 376,262 | 496,565 | 467,968 | |
Net premiums written | 6,909,058 | 5,803,364 | 5,119,926 | |
Premiums Earned, Net [Abstract] | ||||
Assumed from other companies | 6,923,078 | 5,987,931 | 5,471,546 | |
Ceded to other companies | 397,860 | 474,121 | 446,565 | |
Net premiums earned | 6,525,218 | 5,513,810 | 5,024,981 | |
Loss and Loss Expenses and Life Policy Benefits | ||||
Assumed losses and loss expenses | 5,156,926 | 4,601,564 | 4,458,290 | |
Ceded losses and loss expenses | 233,770 | 408,309 | 617,308 | |
Losses and loss expenses | 4,923,156 | 4,193,255 | 3,840,982 | |
Non Life | ||||
Premiums Written, Net [Abstract] | ||||
Gross premiums written | 5,792,542 | 5,064,780 | 4,604,938 | |
Ceded Premiums Written | 353,735 | 472,498 | 450,129 | |
Net premiums written | 5,438,807 | [1] | 4,592,282 | 4,154,809 |
Premiums Earned, Net [Abstract] | ||||
Assumed from other companies | 5,433,357 | 4,751,958 | 4,483,662 | |
Ceded to other companies | 375,301 | 450,096 | 428,471 | |
Net premiums earned | 5,058,056 | [1] | 4,301,862 | 4,055,191 |
Loss and Loss Expenses and Life Policy Benefits | ||||
Assumed losses and loss expenses | 3,879,242 | 3,566,201 | 3,644,844 | |
Ceded losses and loss expenses | 219,102 | 397,554 | 639,277 | |
Losses and loss expenses | 3,660,140 | [1] | 3,168,647 | 3,005,567 |
Life and Health | ||||
Premiums Written, Net [Abstract] | ||||
Gross premiums written | 1,492,778 | 1,235,149 | 982,956 | |
Ceded Premiums Written | 22,527 | 24,067 | 17,839 | |
Net premiums written | 1,470,251 | 1,211,082 | 965,117 | |
Premiums Earned, Net [Abstract] | ||||
Assumed from other companies | 1,489,721 | 1,235,973 | 987,884 | |
Ceded to other companies | 22,559 | 24,025 | 18,094 | |
Net premiums earned | 1,467,162 | 1,211,948 | 969,790 | |
Loss and Loss Expenses and Life Policy Benefits | ||||
Assumed losses and loss expenses | 1,277,684 | 1,035,363 | 813,446 | |
Ceded losses and loss expenses | 14,668 | 10,755 | (21,969) | |
Losses and loss expenses | $ 1,263,016 | $ 1,024,608 | $ 835,415 | |
[1] | Non-life Losses and loss expenses include amounts allocated to Corporate and Other as disclosed in Note 18. |
Debt - Summary of debt outstand
Debt - Summary of debt outstanding (Details) € in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Jun. 19, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 15, 2016EUR (€) | Mar. 10, 2010USD ($) | Nov. 07, 2006USD ($) |
Debt Instrument [Line Items] | ||||||
Debt related to senior notes | $ 1,327,965 | $ 1,349,017 | ||||
Debt related to capital efficient notes | 70,089 | 70,989 | ||||
Fair Value | Significant other observable inputs (Level 2) | ||||||
Debt Instrument [Line Items] | ||||||
Debt related to senior notes | 1,406,397 | 1,341,064 | ||||
Carrying Value | ||||||
Debt Instrument [Line Items] | ||||||
Debt related to senior notes | 1,327,965 | 1,349,017 | ||||
Senior Notes | Notes Issued By Partner Re Finance B LLC | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt instrument | 0 | $ 500,000 | ||||
Senior Notes | Notes Issued By Partner Re Finance B LLC | Fair Value | Significant other observable inputs (Level 2) | ||||||
Debt Instrument [Line Items] | ||||||
Debt related to senior notes | 0 | 515,518 | ||||
Senior Notes | Notes Issued By Partner Re Finance B LLC | Carrying Value | ||||||
Debt Instrument [Line Items] | ||||||
Debt related to senior notes | 0 | 500,000 | ||||
Senior Notes | 3.7% notes maturing 2029 Issued By Partner Re Finance B LLC | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt instrument | 500,000 | $ 500,000 | ||||
Senior Notes | 3.7% notes maturing 2029 Issued By Partner Re Finance B LLC | Fair Value | Significant other observable inputs (Level 2) | ||||||
Debt Instrument [Line Items] | ||||||
Debt related to senior notes | 535,309 | 0 | ||||
Senior Notes | 3.7% notes maturing 2029 Issued By Partner Re Finance B LLC | Carrying Value | ||||||
Debt Instrument [Line Items] | ||||||
Debt related to senior notes | 495,614 | 0 | ||||
2016 Euro Senior Notes | Notes Issued By Partner Re Ireland dac | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt instrument | € | € 750,000 | |||||
2016 Euro Senior Notes | Notes Issued By Partner Re Ireland dac | Fair Value | Significant other observable inputs (Level 2) | ||||||
Debt Instrument [Line Items] | ||||||
Debt related to senior notes | 871,088 | 825,546 | ||||
2016 Euro Senior Notes | Notes Issued By Partner Re Ireland dac | Carrying Value | ||||||
Debt Instrument [Line Items] | ||||||
Debt related to senior notes | 832,351 | 849,017 | ||||
Capital efficient notes | Notes Issued By Partner Re Finance II Inc | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt instrument | 62,484 | $ 250,000 | ||||
Capital efficient notes | Notes Issued By Partner Re Finance II Inc | Fair Value | Significant other observable inputs (Level 2) | ||||||
Debt Instrument [Line Items] | ||||||
Debt related to capital efficient notes | 55,866 | 59,299 | ||||
Capital efficient notes | Notes Issued By Partner Re Finance II Inc | Carrying Value | ||||||
Debt Instrument [Line Items] | ||||||
Debt related to capital efficient notes | $ 70,089 | $ 70,989 |
Debt - Narrative (Details)
Debt - Narrative (Details) € in Thousands, $ in Thousands | Jul. 19, 2019USD ($) | Jun. 06, 2019USD ($) | Mar. 13, 2009USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jun. 19, 2019USD ($) | Sep. 15, 2016EUR (€) | Mar. 10, 2010USD ($) | Nov. 07, 2006USD ($) |
Debt Instrument [Line Items] | ||||||||||
Issuance of senior notes | $ 496,012 | $ 0 | $ 0 | |||||||
Loss on redemption of debt | 15,175 | $ 0 | $ 1,566 | |||||||
Senior Notes | Notes Issued By Partner Re Finance B LLC | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Face amount of debt instrument | $ 0 | $ 500,000 | ||||||||
Stated interest rate of debt instrument | 5.50% | |||||||||
Early Repayment of Senior Debt | $ 500,000 | |||||||||
Maturity date | Jun. 1, 2020 | |||||||||
Loss on redemption of debt | $ (15,000) | |||||||||
Senior Notes | 3.7% notes maturing 2029 Issued By Partner Re Finance B LLC | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Face amount of debt instrument | $ 500,000 | $ 500,000 | ||||||||
Debt Issuance Percentage of Fair Value | 99.783% | |||||||||
Stated interest rate of debt instrument | 3.70% | 3.70% | ||||||||
Maturity date | Jul. 2, 2029 | |||||||||
Payment frequency | semi-annually | |||||||||
Date of first required interest payment | Jan. 2, 2020 | |||||||||
Senior Notes | Notes Issued To Partner Re Finance B LLC | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Stated interest rate of debt instrument | 3.70% | 5.50% | ||||||||
2016 Euro Senior Notes | Notes Issued By Partner Re Ireland dac | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Face amount of debt instrument | € | € 750,000 | |||||||||
Debt Issuance Percentage of Fair Value | 99.144% | |||||||||
Stated interest rate of debt instrument | 1.25% | |||||||||
Maturity date | Sep. 15, 2026 | |||||||||
Payment frequency | annually | |||||||||
Date of first required interest payment | Sep. 15, 2017 | |||||||||
Capital efficient notes | Notes Issued By Partner Re Finance II Inc | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Face amount of debt instrument | $ 62,484 | $ 250,000 | ||||||||
Amount of debt extinguished | $ 1,000 | $ 187,000 | ||||||||
Maturity date range start | Dec. 1, 2016 | |||||||||
Capital efficient notes | Notes Issued By Partner Re Finance II Inc | June 1, 2007 - December 1, 2016 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Stated interest rate of debt instrument | 6.44% | |||||||||
Payment frequency | semi-annually | |||||||||
Capital efficient notes | Notes Issued By Partner Re Finance II Inc | December 1, 2016 - December 1, 2066 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Payment frequency | quarterly | |||||||||
Reference rate for variable rate interest payments | 3-month LIBOR | |||||||||
Interest rate in excess of LIBOR | 2.325% | |||||||||
Capital efficient notes | Notes Issued To Partner Re Finance II Inc | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Face amount of debt instrument | $ 258,000 | |||||||||
Carrying amount at balance sheet date | $ 70,000 | |||||||||
Amount of debt extinguished | $ 1,000 | $ 187,000 | ||||||||
Maturity date range start | Dec. 1, 2016 | |||||||||
Maturity date range end | Dec. 1, 2066 | |||||||||
Capital efficient notes | Notes Issued To Partner Re Finance II Inc | June 1, 2007 - December 1, 2016 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Stated interest rate of debt instrument | 6.44% | |||||||||
Payment frequency | semi-annually | |||||||||
Capital efficient notes | Notes Issued To Partner Re Finance II Inc | December 1, 2016 - December 1, 2066 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Payment frequency | quarterly | |||||||||
Reference rate for variable rate interest payments | 3-month LIBOR | |||||||||
Interest rate in excess of LIBOR | 2.325% | |||||||||
PartnerRe U.S. Corporation | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Percentage ownership | 100.00% |
Shareholders' Equity - Authoriz
Shareholders' Equity - Authorized share capital and common shares (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Authorized Shares | ||
Authorized Share Capital Value | $ 200 | $ 200 |
Common Shares | ||
Common shares, shares issued | 100,000,000 | 100,000,000 |
Common shares, par value | $ 0.00 | $ 0.00 |
Shareholders' Equity - Redeemab
Shareholders' Equity - Redeemable preferred shares (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 18, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | |
Class of Stock [Line Items] | ||||
Preferred shares, par value | $ 1 | $ 1 | ||
Preferred shares, shares outstanding | 28,169,062 | 28,169,062 | ||
Underwriting discounts and commissions | [1] | $ 23,600 | $ 23,600 | |
Aggregate liquidation preference | $ 704,227 | $ 704,227 | ||
Preferred Stock, Redemption Price Per Share | $ 25 | $ 25 | ||
Restriction on common dividends | 67.00% | 67.00% | ||
Series F 5.875% non-cumulative | ||||
Class of Stock [Line Items] | ||||
Preferred shares, shares outstanding | 2,679,426 | 2,679,426 | ||
Annual dividend rate | 5.875% | 5.875% | ||
Underwriting discounts and commissions | [1] | $ 2,300 | $ 2,300 | |
Aggregate liquidation preference | $ 67,000 | $ 67,000 | ||
Liquidation preference per share | $ 25 | $ 25 | ||
Series G 6.5% cumulative | ||||
Class of Stock [Line Items] | ||||
Preferred shares, shares outstanding | 6,415,264 | 6,415,264 | ||
Annual dividend rate | 6.50% | 6.50% | ||
Underwriting discounts and commissions | [1] | $ 5,400 | $ 5,400 | |
Aggregate liquidation preference | $ 160,400 | $ 160,400 | ||
Liquidation preference per share | $ 25 | $ 25 | ||
Series H 7.25% cumulative | ||||
Class of Stock [Line Items] | ||||
Preferred shares, shares outstanding | 11,753,798 | 11,753,798 | ||
Annual dividend rate | 7.25% | 7.25% | ||
Underwriting discounts and commissions | [1] | $ 9,500 | $ 9,500 | |
Aggregate liquidation preference | $ 293,800 | $ 293,800 | ||
Liquidation preference per share | $ 25 | $ 25 | ||
Series I 5.875% non-cumulative | ||||
Class of Stock [Line Items] | ||||
Preferred shares, shares outstanding | 7,320,574 | 7,320,574 | ||
Annual dividend rate | 5.875% | 5.875% | ||
Underwriting discounts and commissions | [1] | $ 6,400 | $ 6,400 | |
Aggregate liquidation preference | $ 183,000 | $ 183,000 | ||
Liquidation preference per share | $ 25 | $ 25 | ||
[1] | Underwriting discounts and commissions represent the original amounts paid to issue Series D, E and F shares. These amounts were reallocated on a pro-rata basis between the previously issued and the newly issued shares as a result of the share exchange in May 2016 for $nil consideration described below. |
Dividend Restrictions and Sta_3
Dividend Restrictions and Statutory Requirements (Details) $ in Millions, $ in Millions | Mar. 18, 2016 | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2019SGD ($) |
Statutory Accounting Practices [Line Items] | |||||
Restriction on common dividends | 67.00% | 67.00% | |||
PartnerRe Bermuda | |||||
Statutory Accounting Practices [Line Items] | |||||
Percentage of basic capital requirement for payment of dividends | 120.00% | 120.00% | |||
Amount available for dividends without regulatory approval | $ 1,058 | ||||
Statutory net income (loss) | 863 | $ 138 | $ (69) | ||
Required statutory capital and surplus | 2,441 | 2,145 | |||
Actual statutory capital and surplus | 4,858 | 4,233 | |||
PartnerRe Europe | |||||
Statutory Accounting Practices [Line Items] | |||||
Statutory net income (loss) | 188 | 1 | 153 | ||
Required statutory capital and surplus | 1,532 | 1,511 | |||
Actual statutory capital and surplus | $ 2,219 | 2,169 | |||
PartnerRe U.S. | |||||
Statutory Accounting Practices [Line Items] | |||||
Percentage of statutory capital and surplus requirement for payment of dividends | 10.00% | 10.00% | |||
Statutory net income (loss) | $ (106) | (197) | 24 | ||
Required statutory capital and surplus | 911 | 732 | |||
Actual statutory capital and surplus | $ 1,080 | 1,094 | |||
PartnerRe Asia | |||||
Statutory Accounting Practices [Line Items] | |||||
Percentage of basic capital requirement for payment of dividends | 120.00% | 120.00% | |||
Statutory net income (loss) | $ 8 | (40) | $ 18 | ||
Required statutory capital and surplus | 64 | 56 | $ 25 | ||
Actual statutory capital and surplus | $ 208 | $ 208 |
Taxation - Components of income
Taxation - Components of income tax expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current income tax expense | |||
Current income tax expense (benefit) | $ 76,968 | $ 27,015 | $ 66,394 |
Deferred income tax expense (benefit) | |||
Deferred income tax (benefit) expense | (21,582) | (37,062) | (53,164) |
Unrecognized tax expense (benefit) | |||
Unrecognized tax (benefit) expense | (2,850) | 1,113 | (2,872) |
Total income tax expense | |||
Total income tax (benefit) expense | 52,536 | (8,934) | 10,358 |
Income before taxes by jurisdiction | |||
Domestic (Bermuda) | 715,912 | 33,759 | 82,219 |
Foreign | 273,372 | (128,687) | 192,160 |
Income (loss) before taxes | 989,284 | (94,928) | 274,379 |
US | |||
Current income tax expense | |||
Current income tax expense (benefit) | 12,899 | (6,872) | (10,031) |
Deferred income tax expense (benefit) | |||
Deferred income tax (benefit) expense | (25,850) | (40,318) | 5,538 |
Unrecognized tax expense (benefit) | |||
Unrecognized tax (benefit) expense | 0 | 0 | 0 |
Total income tax expense | |||
Total income tax (benefit) expense | (12,951) | (47,190) | (4,493) |
Non-US | |||
Current income tax expense | |||
Current income tax expense (benefit) | 64,069 | 33,887 | 76,425 |
Deferred income tax expense (benefit) | |||
Deferred income tax (benefit) expense | 4,268 | 3,256 | (58,702) |
Unrecognized tax expense (benefit) | |||
Unrecognized tax (benefit) expense | (2,850) | 1,113 | (2,872) |
Total income tax expense | |||
Total income tax (benefit) expense | $ 65,487 | $ 38,256 | $ 14,851 |
Taxation - Reconciliation of ef
Taxation - Reconciliation of effective tax rate (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of effective tax rate (% of income before taxes) | |||
Expected tax rate | 0.00% | 0.00% | 0.00% |
Foreign taxes at local expected tax rates | 6.50% | 14.30% | 11.40% |
Impact of foreign exchange (losses) gains | (0.50%) | (4.20%) | (3.20%) |
Unrecognized tax (benefit) expense | 0.20% | (1.20%) | (1.00%) |
Tax-exempt income and expenses not deductible | (0.60%) | 7.30% | (5.20%) |
Foreign branch tax | (1.20%) | (4.10%) | (24.60%) |
Valuation allowance | 0.70% | (12.30%) | 24.80% |
Outside basis difference in subsidiary | 0.00% | 6.70% | 0.00% |
Other | 0.20% | 2.90% | 1.60% |
Actual tax rate | 5.30% | 9.40% | 3.80% |
Taxation - Components of net ta
Taxation - Components of net tax assets and liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Components Of Net Tax Assets And Liabilities [Abstract] | ||||
Net tax assets | $ 179,813 | $ 157,690 | ||
Net tax liabilities | (135,966) | (101,525) | ||
Net tax assets (liabilities) | 43,847 | 56,165 | ||
Net Tax Liabilities By Type [Abstract] | ||||
Net current tax assets | 65,000 | 102,091 | ||
Net deferred tax liabilities | (15,464) | (37,183) | ||
Net unrecognized tax benefit | 5,689 | 8,743 | $ 7,941 | $ 9,690 |
Net tax assets (liabilities) | $ 43,847 | $ 56,165 |
Taxation - Components of tax as
Taxation - Components of tax assets and tax liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets | ||
Discounting of loss reserves and adjustment to life policy reserves | $ 15,924 | $ 27,103 |
Foreign tax credit carryforwards | 173,936 | 161,177 |
Tax loss carryforwards | 80,523 | 49,721 |
Unearned premiums | 37,226 | 26,071 |
Other deferred tax assets | 50,738 | 47,877 |
Deferred tax assets before valuation allowance | 358,347 | 311,949 |
Valuation allowance | (186,907) | (189,090) |
Deferred tax assets | 171,440 | 122,859 |
Deferred tax liabilities | ||
Deferred acquisition costs | 64,140 | 45,558 |
Goodwill and other intangibles | 61,773 | 65,114 |
Equalization reserves | 6,416 | 16,606 |
Unrealized appreciation and timing differences on investments | 26,752 | 5,012 |
Unrealized appreciation and timing differences on foreign exchange revaluations | 18,830 | 21,117 |
Other deferred tax liabilities | 8,993 | 6,635 |
Deferred tax liabilities | 186,904 | 160,042 |
Net deferred tax liabilities | $ (15,464) | $ (37,183) |
Taxation - Income tax uncertain
Taxation - Income tax uncertainties (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Contingency [Line Items] | |||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 0 | $ 0 | $ 0 |
January 1 | 8,743,000 | 7,941,000 | 9,690,000 |
Changes in tax positions taken during a prior period - decrease | (4,229,000) | ||
Changes in tax positions taken during a prior period - increase | 764,000 | 1,181,000 | |
Tax positions taken during the current period - increase | 1,379,000 | 346,000 | 595,000 |
Change as a result of a lapse in the statute of limitations | 0 | 0 | (4,649,000) |
Impact of the change in foreign currency exchange rates | 1,124,000 | ||
Impact of the change in foreign currency exchange rates | (204,000) | (308,000) | |
December 31 | 5,689,000 | 8,743,000 | 7,941,000 |
Unrecognized tax benefits that, if recognized, would impact the effective tax rate | |||
Income Tax Contingency [Line Items] | |||
January 1 | 6,639,000 | 6,460,000 | 8,722,000 |
Changes in tax positions taken during a prior period - decrease | (3,560,000) | ||
Changes in tax positions taken during a prior period - increase | 73,000 | 281,000 | |
Tax positions taken during the current period - increase | 1,258,000 | 346,000 | 589,000 |
Change as a result of a lapse in the statute of limitations | 0 | 0 | (4,115,000) |
Impact of the change in foreign currency exchange rates | 983,000 | ||
Impact of the change in foreign currency exchange rates | (152,000) | (240,000) | |
December 31 | 4,185,000 | 6,639,000 | 6,460,000 |
Interest and penalties recognized on the above | |||
Income Tax Contingency [Line Items] | |||
January 1 | 2,104,000 | 1,481,000 | 968,000 |
Changes in tax positions taken during a prior period - decrease | (669,000) | ||
Changes in tax positions taken during a prior period - increase | 691,000 | 900,000 | |
Tax positions taken during the current period - increase | 121,000 | 0 | 6,000 |
Change as a result of a lapse in the statute of limitations | 0 | 0 | (534,000) |
Impact of the change in foreign currency exchange rates | 141,000 | ||
Impact of the change in foreign currency exchange rates | (52,000) | (68,000) | |
December 31 | $ 1,504,000 | $ 2,104,000 | $ 1,481,000 |
Taxation - Narrative (Details)
Taxation - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Taxation - Other Details [Line Items] | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | $ 2,000 | ||
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | $ 6,000 | $ 5,000 | |
Expected tax rate | 0.00% | 0.00% | 0.00% |
Deferred Tax Assets, Valuation Allowance | $ 186,907 | $ 189,090 | |
Ireland | |||
Taxation - Other Details [Line Items] | |||
Tax Credit Carryforward, Valuation Allowance | 174,000 | 161,000 | |
Deferred Tax Assets, Valuation Allowance | 7,000 | ||
Hong Kong | |||
Taxation - Other Details [Line Items] | |||
Deferred tax asset on tax loss carryforwards | 2,000 | 1,000 | |
Singapore | |||
Taxation - Other Details [Line Items] | |||
Deferred tax asset on tax loss carryforwards | 18,000 | 17,000 | |
US | |||
Taxation - Other Details [Line Items] | |||
Deferred Tax Assets, Valuation Allowance | 8,000 | 8,000 | |
Deferred tax asset on tax loss carryforwards | $ 52,000 | 21,000 | |
Tax loss carryforward period | 20 years | ||
US | Minimum | |||
Taxation - Other Details [Line Items] | |||
Tax loss carryforward period | 19 years | ||
US | Maximum | |||
Taxation - Other Details [Line Items] | |||
Tax loss carryforward period | 20 years | ||
Canada | |||
Taxation - Other Details [Line Items] | |||
Deferred Tax Assets, Valuation Allowance | $ 5,000 | $ 13,000 |
Share-Based Incentives Class B
Share-Based Incentives Class B rollforward (Details) - shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares outstanding, beginning of year | 100,000,000 | |
Shares outstanding, end of year | 100,000,000 | 100,000,000 |
Class B Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares outstanding, beginning of year | 345,644 | 255,492 |
Granted | 117,929 | 90,152 |
Purchased | 18,875 | |
Repurchased | (200,680) | |
Shares outstanding, end of year | 281,768 | 345,644 |
Restricted Class B shares | Class B Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares outstanding, beginning of year | 161,810 | 71,658 |
Granted | 117,929 | 90,152 |
Purchased | 0 | |
Repurchased | (100,407) | |
Shares outstanding, end of year | 179,332 | 161,810 |
Unrestricted Class B shares | Class B Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares outstanding, beginning of year | 183,834 | 183,834 |
Granted | 0 | 0 |
Purchased | 18,875 | |
Repurchased | (100,273) | |
Shares outstanding, end of year | 102,436 | 183,834 |
Share-Based Incentives Narrativ
Share-Based Incentives Narrative (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($)$ / shares | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Exercise Price | $ / shares | $ 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 3 years | |||
Share Based Compensation Subscription Period | 30 days | |||
Shared Based Compensation, Minimum Multiplier of Target Value | 4 | |||
Share based compensation expense | $ 10,000 | $ 4,000 | $ 2,000 | |
Accounts payable, accrued expenses and other | 517,084 | 266,524 | ||
Redemption of Class B common shares | [1] | (6,540) | 0 | $ 0 |
Class B Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Accounts payable, accrued expenses and other | 13,000 | $ 16,000 | ||
Redemption of Class B common shares | (13,000) | |||
Restricted Class B shares | Class B Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Redemption of Class B common shares | (6,000) | |||
Unrestricted Class B shares | Class B Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Redemption of Class B common shares | $ (7,000) | |||
[1] | Class B shares are recorded as a liability on the Company's Consolidated Balance Sheet. See Note 13 for further details. |
Retirement Benefit Arrangemen_3
Retirement Benefit Arrangements - Active Defined Benefit Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Disclosure - Defined contribution plan | ||||
Incurred expense for defined contribution arrangements | $ 13,000 | $ 13,000 | $ 11,000 | |
Zurich Plan | ||||
Funded status: | ||||
Unfunded pension obligation at beginning of year | 37,105 | 64,342 | ||
Change in pension obligation: | ||||
Service cost | 8,619 | 7,203 | ||
Interest cost | 1,584 | 1,366 | ||
Plan participants’ contributions | 3,604 | 2,938 | ||
Actuarial loss (gain) | 18,286 | (9,439) | ||
Plan amendments | 3,551 | (19,945) | ||
Benefits paid | (2,352) | (4,901) | ||
Foreign currency adjustments | 2,828 | (584) | ||
Change in pension obligation | 36,120 | (23,362) | ||
Change in fair value of plan assets: | ||||
Actual return on plan assets | 18,140 | 958 | ||
Employer contributions | 7,193 | 5,245 | ||
Plan participants’ contributions | 3,604 | 2,938 | ||
Benefits paid | (2,352) | (4,901) | ||
Foreign currency adjustments | 2,198 | (365) | ||
Change in fair value of plan assets | 28,783 | 3,875 | ||
Funded status: | ||||
Unfunded pension obligation at end of year | 44,442 | 37,105 | $ 64,342 | |
Additional information: | ||||
Projected benefit obligation at end of year | [1] | 197,912 | 161,792 | |
Accumulated pension obligation at end of year | [2] | $ 189,089 | $ 152,681 | |
Pension obligation - assumptions used | ||||
Discount rate | 0.25% | 1.00% | 0.75% | |
Rate of compensation increase | 2.00% | 2.25% | 2.25% | |
Net periodic benefit cost - assumptions used | ||||
Discount rate | 1.00% | 0.75% | 0.75% | |
Expected return on plan assets | 3.50% | 0.75% | 0.75% | |
Rate of compensation increase | 2.00% | 2.25% | 2.00% | |
Defined Benefit Plan Estimated Future Benefit Payments Abstract | ||||
2020 | $ 5,175 | |||
2021 | 6,841 | |||
2022 | 6,547 | |||
2023 | 7,073 | |||
2024 | 7,631 | |||
2025 to 2029 | 45,389 | |||
Significant other observable inputs (Level 2) | Insured funds | Zurich Plan | ||||
Additional information: | ||||
Fair value of plan assets at end of year | $ 153,470 | $ 124,687 | ||
Minimum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Contribution Plans, Accumulated Benefits, Vesting Period | 0 years | 0 years | 0 years | |
Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Contribution Plans, Accumulated Benefits, Vesting Period | 4 years | 4 years | 4 years | |
[1] | Represents the actuarial present value of all benefits attributed to employee service rendered to December 31, measured using assumptions as to future compensation levels | |||
[2] | Represents the actuarial present value of benefits (whether vested or non-vested) attributed to employee service rendered and compensation to December 31, with no assumption about future compensation levels |
Retirement Benefit Arrangemen_4
Retirement Benefit Arrangements - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Incurred expense for defined contribution arrangements | $ 13,000 | $ 13,000 | $ 11,000 | |
Zurich Plan | ||||
Additional information: | ||||
Unfunded pension obligation | (44,442) | (37,105) | (64,342) | |
Amounts recognized in AOCI | 16,000 | 9,000 | ||
Unfunded pension obligation, tax impact | 4,000 | 2,000 | ||
Net periodic benefit cost | 5,000 | 10,000 | $ 11,000 | |
Expected employer contributions in 2020 | 7,000 | |||
Plan amendments | $ 3,551 | (19,945) | ||
Coverage ration on partially insured pension scheme | 115.00% | 111.00% | ||
Actual return on plan assets | $ 18,140 | 958 | ||
Actual return on plan assets recognized in Net income | 5,000 | |||
Actual return on Assets, reduction of the unfunded pension obligation | 13,000 | |||
Zurich Plan | Significant other observable inputs (Level 2) | Insured funds | ||||
Additional information: | ||||
Fair value of plan assets at end of year | $ 153,470 | $ 124,687 |
Commitments and Contingencies -
Commitments and Contingencies - Concentrations of Credit Risk (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Concentration Risk [Line Items] | ||
Fixed maturities, at fair value | $ 10,680,714 | $ 12,639,845 |
Provision for uncollectible premiums receivable | 7,000 | 5,000 |
Non US sovereign government supranational and government related | ||
Concentration Risk [Line Items] | ||
Fixed maturities, at fair value | 3,255,154 | $ 2,158,642 |
Non US sovereign government supranational and government related | The World Bank | ||
Concentration Risk [Line Items] | ||
Fixed maturities, at fair value | $ 1,110,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Lease Arrangements (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Operating Lease, Cost | $ 15,893 |
Variable Lease, Cost | 2,598 |
Sublease Income | 1,515 |
Lease, Cost | 16,976 |
Operating Lease, Right-of-Use Asset | 75,774 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 86,157 |
Operating Lease, Payments | $ 11,305 |
Operating Lease, Weighted Average Remaining Lease Term | 9 years 2 months |
Operating Lease, Weighted Average Discount Rate, Percent | 2.60% |
Operating Lease, Expense - Not yet commenced | $ 25,000 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2020 | 17,010 |
2021 | 12,295 |
2022 | 10,376 |
2023 | 9,647 |
2024 | 8,568 |
2025-2038 | 38,902 |
Discount | (11,021) |
Total discounted operating lease liabilities | $ 85,777 |
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract | 10 years |
Commitments and Contingencies_3
Commitments and Contingencies - Other Agreements (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Strategic Investments [Member] | ||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
2020 | $ 378 | |
2021 | 307 | |
2022 | 122 | |
2023 | 48 | |
Total | 855 | |
Technology Equipment [Member] | ||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
2020 | 20 | |
2021 | 4 | |
Total | 28 | |
Structured Letter Of Credit [Member] | ||
Commitments and Contingencies Other Details [Line Items] | ||
LOC obligations guaranteed as of balance sheet date | $ 69 | $ 67 |
Line Of Credit Facility Term | 10 years | |
Maturity date of facility | Dec. 31, 2024 |
Commitments and Contingencies_4
Commitments and Contingencies - Legal Proceedings (Details) - Dec. 31, 2019 $ in Millions, $ in Millions | USD ($) | CAD ($) |
Pending Litigation | ||
Loss Contingencies [Line Items] | ||
Amount of claim | $ 110 | $ 144.7 |
Credit Agreements (Details)
Credit Agreements (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Line of Credit Facility [Line Items] | |
Total amount of credit facilities available | $ 602 |
Combined Credit Facility | |
Line of Credit Facility [Line Items] | |
Total amount of credit facilities available | 400 |
Amount of unsecured borrowing capacity | 100 |
$150 milllion Committed Secured Letter Of Credit Facility | |
Line of Credit Facility [Line Items] | |
Total amount of credit facilities available | $ 150 |
Maturity date of facility | Dec. 31, 2021 |
Committed Secured Letter Of Credit Facility B [Member] | |
Line of Credit Facility [Line Items] | |
Total amount of credit facilities available | $ 50 |
Maturity date of facility | Dec. 21, 2021 |
Outstanding Unsecured Letter Of Credit | |
Line of Credit Facility [Line Items] | |
Letters of credit outstanding amount | $ 102 |
Outstanding Secured Letter Of Credit | |
Line of Credit Facility [Line Items] | |
Letters of credit outstanding amount | $ 338 |
Related Party Transactions (Det
Related Party Transactions (Details) € in Thousands, $ in Thousands, £ in Millions | 12 Months Ended | ||||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017GBP (£) | Dec. 31, 2016EUR (€) | |
Related Party Transaction [Line Items] | |||||
Investments in real estate | $ 71,834 | $ 72,573 | |||
Retained earnings | |||||
Related Party Transaction [Line Items] | |||||
Dividends on common shares | 199,386 | 47,835 | $ 144,693 | ||
Almacantar | Real Estate Investment | |||||
Related Party Transaction [Line Items] | |||||
Payments to Acquire Real Estate and Real Estate Joint Ventures | 83,000 | £ 55 | |||
Other than Temporary Impairment Losses, Investments | (2,977) | (6,122) | 0 | ||
Exor N.V. | |||||
Related Party Transaction [Line Items] | |||||
Related Party Advisory Services Agreement | 500 | 500 | € 300 | ||
Payment to Related Parties (Less than) | 500 | ||||
Exor N.V. | Investment advisory services [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related Party Advisory Services Agreement | 254 | 273 | |||
Exor N.V. | Real estate services [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related Party Consulting Services Agreement | 221 | 45 | 45 | ||
Exor N.V. | Private equity funds | |||||
Related Party Transaction [Line Items] | |||||
Payments to acquire investments | 500,000 | ||||
Investment carrying value | 948,000 | 563,000 | |||
Net realized and unrealized gain (loss) on related party investment | 385,000 | 12,000 | $ 51,000 | ||
Exor N.V. | Other invested assets | |||||
Related Party Transaction [Line Items] | |||||
Investment carrying value | $ 32,000 | $ 11,000 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) - 12 months ended Dec. 31, 2019 | Total | Segment |
Segment Reporting [Abstract] | ||
Number of worldwide business segments | 3 | 3 |
Segment Information (Results by
Segment Information (Results by Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Segment Reporting [Line Items] | ||||
Gross premiums written | $ 7,285,320 | $ 6,299,929 | $ 5,587,894 | |
Net premiums written | 6,909,058 | 5,803,364 | 5,119,926 | |
(Increase) decrease in unearned premiums | (383,840) | (289,554) | (94,945) | |
Net premiums earned | 6,525,218 | 5,513,810 | 5,024,981 | |
Losses and loss expenses | (4,923,000) | (4,194,000) | (3,841,000) | |
Acquisition costs | (1,455,462) | (1,237,464) | (1,119,773) | |
Technical result | 147,000 | 83,000 | 64,000 | |
Other income | 15,321 | 50,127 | 15,242 | |
Other expenses | (369,969) | (305,568) | (348,398) | |
Underwriting result | (208,000) | (173,000) | (269,000) | |
Net investment income | 448,538 | 415,921 | 402,071 | |
Net realized and unrealized investment gains (losses) | 886,670 | (389,632) | 232,491 | |
Interest expense | (40,150) | (43,152) | (42,500) | |
Loss on redemption of debt | (15,175) | 0 | (1,566) | |
Amortization of intangible assets | (11,434) | (35,473) | (24,646) | |
Net foreign exchange (gains) losses | (86,760) | 119,151 | (108,244) | |
Income tax expense (benefit) | (52,536) | 8,934 | (10,358) | |
Interest in earnings of equity method investments | 15,643 | 10,607 | 85,703 | |
Net income (loss) | 936,748 | (85,994) | 264,021 | |
Non Life | ||||
Segment Reporting [Line Items] | ||||
Gross premiums written | 5,792,542 | 5,064,780 | 4,604,938 | |
Net premiums written | 5,438,807 | [1] | 4,592,282 | 4,154,809 |
(Increase) decrease in unearned premiums | (381,000) | (290,000) | (100,000) | |
Net premiums earned | 5,058,056 | [1] | 4,301,862 | 4,055,191 |
Losses and loss expenses | (3,663,000) | (3,169,000) | (3,006,000) | |
Acquisition costs | (1,306,000) | (1,108,000) | (1,023,000) | |
Technical result | 89,000 | 25,000 | 26,000 | |
Other income | (1,000) | 30,000 | (1,000) | |
Other expenses | (108,000) | (102,000) | (121,000) | |
Underwriting result | $ (20,000) | $ (47,000) | $ (96,000) | |
Reinsurance Ratios [Abstract] | ||||
Loss ratio | 72.40% | [2] | 73.70% | 74.10% |
Acquisition ratio | 25.80% | [3] | 25.80% | 25.20% |
Technical ratio | 98.20% | [4] | 99.50% | 99.30% |
Other expense ratio | 2.10% | [5] | 2.40% | 3.00% |
Combined Ratio | 100.30% | [6] | 101.90% | 102.30% |
Non Life | P&C | ||||
Segment Reporting [Line Items] | ||||
Gross premiums written | $ 3,579,000 | $ 3,015,000 | $ 2,671,000 | |
Net premiums written | 3,302,000 | 2,722,000 | 2,375,000 | |
(Increase) decrease in unearned premiums | (231,000) | (187,000) | (45,000) | |
Net premiums earned | 3,071,000 | 2,535,000 | 2,330,000 | |
Losses and loss expenses | (2,167,000) | (2,073,000) | (2,051,000) | |
Acquisition costs | (783,000) | (606,000) | (534,000) | |
Technical result | 121,000 | (144,000) | (255,000) | |
Other income | (1,000) | 30,000 | 0 | |
Other expenses | (80,000) | (75,000) | (88,000) | |
Underwriting result | $ 40,000 | $ (189,000) | $ (343,000) | |
Reinsurance Ratios [Abstract] | ||||
Loss ratio | 70.60% | [2] | 81.80% | 88.00% |
Acquisition ratio | 25.50% | [3] | 23.90% | 22.90% |
Technical ratio | 96.10% | [4] | 105.70% | 110.90% |
Other expense ratio | 2.60% | [5] | 3.00% | 3.80% |
Combined Ratio | 98.70% | [6] | 108.70% | 114.70% |
Non Life | Specialty | ||||
Segment Reporting [Line Items] | ||||
Gross premiums written | $ 2,213,000 | $ 2,050,000 | $ 1,934,000 | |
Net premiums written | 2,137,000 | 1,870,000 | 1,780,000 | |
(Increase) decrease in unearned premiums | (150,000) | (103,000) | (55,000) | |
Net premiums earned | 1,987,000 | 1,767,000 | 1,725,000 | |
Losses and loss expenses | (1,496,000) | (1,096,000) | (955,000) | |
Acquisition costs | (523,000) | (502,000) | (489,000) | |
Technical result | (32,000) | 169,000 | 281,000 | |
Other income | 0 | 0 | (1,000) | |
Other expenses | (28,000) | (27,000) | (33,000) | |
Underwriting result | $ (60,000) | $ 142,000 | $ 247,000 | |
Reinsurance Ratios [Abstract] | ||||
Loss ratio | 75.30% | [2] | 62.00% | 55.40% |
Acquisition ratio | 26.30% | [3] | 28.40% | 28.40% |
Technical ratio | 101.60% | [4] | 90.40% | 83.80% |
Other expense ratio | 1.40% | [5] | 1.50% | 1.90% |
Combined Ratio | 103.00% | [6] | 91.90% | 85.70% |
Life and Health | ||||
Segment Reporting [Line Items] | ||||
Gross premiums written | $ 1,492,778 | $ 1,235,149 | $ 982,956 | |
Net premiums written | 1,470,251 | 1,211,082 | 965,117 | |
(Increase) decrease in unearned premiums | (3,000) | 1,000 | 5,000 | |
Net premiums earned | 1,467,162 | 1,211,948 | 969,790 | |
Losses and loss expenses | (1,263,000) | (1,025,000) | (835,000) | |
Acquisition costs | (149,000) | (129,000) | (97,000) | |
Technical result | 55,000 | 58,000 | 38,000 | |
Other income | 15,000 | 13,000 | 14,000 | |
Other expenses | (69,000) | (51,000) | (44,000) | |
Underwriting result | 1,000 | 20,000 | 8,000 | |
Net investment income | 72,000 | 66,000 | 60,000 | |
Allocated underwriting result | 73,000 | 86,000 | 68,000 | |
Corporate and Other | ||||
Segment Reporting [Line Items] | ||||
Gross premiums written | 0 | 0 | 0 | |
Net premiums written | 0 | 0 | 0 | |
(Increase) decrease in unearned premiums | 0 | 0 | 0 | |
Net premiums earned | 0 | 0 | 0 | |
Losses and loss expenses | 3,000 | 0 | 0 | |
Acquisition costs | 0 | 0 | 0 | |
Technical result | 3,000 | 0 | 0 | |
Other income | 1,000 | 7,000 | 2,000 | |
Other expenses | (193,000) | (153,000) | (183,000) | |
Net investment income | 377,000 | 350,000 | 342,000 | |
Net realized and unrealized investment gains (losses) | 887,000 | (390,000) | 232,000 | |
Interest expense | (40,000) | (43,000) | (42,000) | |
Loss on redemption of debt | (15,000) | (2,000) | ||
Amortization of intangible assets | (12,000) | (35,000) | (25,000) | |
Net foreign exchange (gains) losses | (87,000) | 119,000 | (108,000) | |
Income tax expense (benefit) | (53,000) | 9,000 | (10,000) | |
Interest in earnings of equity method investments | $ 16,000 | $ 11,000 | $ 86,000 | |
[1] | Non-life Losses and loss expenses include amounts allocated to Corporate and Other as disclosed in Note 18. | |||
[2] | Loss ratio is obtained by dividing losses and loss expenses by net premiums earned. | |||
[3] | Acquisition ratio is obtained by dividing acquisition costs by net premiums earned. | |||
[4] | Technical ratio is defined as the sum of the loss ratio and the acquisition ratio. | |||
[5] | Other expense ratio is obtained by dividing other expenses by net premiums earned. | |||
[6] | Combined ratio is defined as the sum of the technical ratio and the other expense ratio. |
Segment Information (Distributi
Segment Information (Distribution of gross and net written premium) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | $ 7,285,320 | $ 6,299,929 | $ 5,587,894 |
Percentage Distribution of gross premiums written | 100.00% | 100.00% | 100.00% |
North America | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | $ 3,752,000 | $ 2,929,000 | $ 2,620,000 |
Percentage Distribution of gross premiums written | 51.00% | 47.00% | 47.00% |
Europe | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | $ 2,155,000 | $ 2,152,000 | $ 1,866,000 |
Percentage Distribution of gross premiums written | 30.00% | 34.00% | 33.00% |
Asia, Australia and New Zealand | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | $ 835,000 | $ 699,000 | $ 565,000 |
Percentage Distribution of gross premiums written | 11.00% | 11.00% | 10.00% |
Latin America and the Caribbean | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | $ 264,000 | $ 260,000 | $ 267,000 |
Percentage Distribution of gross premiums written | 4.00% | 4.00% | 5.00% |
Middle East, Africa, Russia and the Commonwealth of Independent States (CIS) | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | $ 279,000 | $ 260,000 | $ 270,000 |
Percentage Distribution of gross premiums written | 4.00% | 4.00% | 5.00% |
P&C | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | $ 3,579,000 | $ 3,015,000 | $ 2,671,000 |
P&C | Casualty | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | 1,394,000 | 1,052,000 | 804,000 |
P&C | Property | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | 644,000 | 615,000 | 547,000 |
P&C | Catastrophe | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | 537,000 | 478,000 | 481,000 |
P&C | Motor | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | 400,000 | 308,000 | 262,000 |
P&C | US Health | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | 391,000 | 405,000 | 416,000 |
P&C | Multiline & Other | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | 213,000 | 157,000 | 161,000 |
Specialty | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | 2,213,000 | 2,050,000 | 1,934,000 |
Specialty | Casualty | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | 13,000 | 42,000 | 45,000 |
Specialty | Property | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | 151,000 | 112,000 | 90,000 |
Specialty | Multiline & Other | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | 276,000 | 307,000 | 199,000 |
Specialty | Financial Risks | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | 587,000 | 549,000 | 490,000 |
Specialty | Agriculture | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | 483,000 | 506,000 | 557,000 |
Specialty | Aviation & space | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | 286,000 | 228,000 | 219,000 |
Specialty | Energy Reinsurance | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | 183,000 | 79,000 | 63,000 |
Specialty | Marine | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | 132,000 | 103,000 | 154,000 |
Specialty | Engineering | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | 102,000 | 124,000 | 117,000 |
Life and Health | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | $ 1,492,778 | $ 1,235,149 | $ 982,956 |
Segment Information (Broker det
Segment Information (Broker details) (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Economic Dependence [Line Items] | |||
Cedant Percentage Of Gross Written Premium | 4.00% | 4.00% | 4.00% |
Marsh (including Guy Carpenter) | |||
Economic Dependence [Line Items] | |||
Broker Percentage Of Gross Written Premium | 28.00% | 22.00% | 25.00% |
Aon Group (including the Benfield Group) | |||
Economic Dependence [Line Items] | |||
Broker Percentage Of Gross Written Premium | 22.00% | 22.00% | 22.00% |
Non Life | P&C | |||
Economic Dependence [Line Items] | |||
Broker Percentage Of Gross Written Premium | 60.00% | 53.00% | 53.00% |
Non Life | Specialty | |||
Economic Dependence [Line Items] | |||
Broker Percentage Of Gross Written Premium | 62.00% | 52.00% | 56.00% |
Life and Health | |||
Economic Dependence [Line Items] | |||
Broker Percentage Of Gross Written Premium | 8.00% | 11.00% | 12.00% |
Other Expenses (Details)
Other Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Expenses [Abstract] | |||
Reorganization Related Costs | $ 13 | $ 11 | $ 29 |
Other Transaction Costs | $ 4 |
SCHEDULE I - Consolidated Sum_2
SCHEDULE I - Consolidated Summary of Investments Other Than Investments in Related Parties (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |||
Fair Value | $ 15,379,184 | ||
Amount at which shown in the balance sheet | 16,317,142 | ||
Fixed maturities | |||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |||
Cost | 10,468,937 | ||
Fair Value | 10,680,714 | ||
Amount at which shown in the balance sheet | 10,680,714 | ||
U.S. government and government sponsored enterprises | |||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |||
Cost | [1] | 1,409,996 | |
Fair Value | 1,421,716 | ||
Amount at which shown in the balance sheet | 1,421,716 | ||
U.S. states, territories and municipalities | |||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |||
Cost | [1] | 124,602 | |
Fair Value | 157,234 | ||
Amount at which shown in the balance sheet | 157,234 | ||
Non US sovereign government supranational and government related | |||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |||
Cost | [1] | 3,232,352 | |
Fair Value | 3,255,154 | ||
Amount at which shown in the balance sheet | 3,255,154 | ||
Corporate bonds | |||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |||
Cost | [1] | 2,583,276 | |
Fair Value | 2,662,089 | ||
Amount at which shown in the balance sheet | 2,662,089 | ||
Asset-backed securities | |||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |||
Cost | [1] | 18,238 | |
Fair Value | 18,228 | ||
Amount at which shown in the balance sheet | 18,228 | ||
Residential mortgage-backed securities | |||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |||
Cost | [1] | 3,100,387 | |
Fair Value | 3,166,290 | ||
Amount at which shown in the balance sheet | 3,166,290 | ||
Other mortgage-backed securities | |||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |||
Cost | [1] | 86 | |
Fair Value | 3 | ||
Amount at which shown in the balance sheet | 3 | ||
Equities | |||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |||
Cost | [1] | 821,430 | |
Fair Value | 1,295,164 | ||
Amount at which shown in the balance sheet | 1,295,164 | ||
Banks, trust and insurance companies | |||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |||
Cost | [1] | 26,234 | |
Fair Value | 46,404 | ||
Amount at which shown in the balance sheet | 46,404 | ||
Industrial, miscellaneous and all other | |||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |||
Cost | [1] | 795,196 | |
Fair Value | 1,248,760 | ||
Amount at which shown in the balance sheet | 1,248,760 | ||
Short-term investments | |||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |||
Cost | [1] | 1,003,508 | |
Fair Value | 1,003,421 | ||
Amount at which shown in the balance sheet | 1,003,421 | ||
Other invested assets | |||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |||
Fair Value | [2] | 2,399,885 | |
Amount at which shown in the balance sheet | [2] | 3,266,009 | |
Carrying amount of other invested assets not at fair value | 866,000 | $ 704,000 | |
Real Estate Investment | |||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |||
Fair Value | [3] | 0 | |
Amount at which shown in the balance sheet | [3] | $ 71,834 | |
[1] | Original cost of fixed maturities reduced by repayments and adjusted for amortization of premiums or accrual of discounts. Original cost of equity securities. | ||
[2] | Other invested assets shown in the Consolidated Balance Sheets in Item 18 also includes the Company’s investments accounted for using the equity method of accounting of $866 million. | ||
[3] | Investments in real estate are carried at original cost less any impairments. |
SCHEDULE II - Condensed Balance
SCHEDULE II - Condensed Balance Sheets - Parent Company Only (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Assets | |||||
Fixed maturities, at fair value (amortized cost: 2019, $56,096; 2018, $109,824) | $ 10,680,714 | $ 12,639,845 | |||
Short-term investments, at fair value (amortized cost: 2019, $3,993; 2018, $nil) | 1,003,421 | 493,726 | [1] | ||
Cash and cash equivalents | 1,484,463 | 877,907 | $ 1,772,012 | $ 1,773,328 | |
Other assets | 169,521 | 63,506 | |||
Total assets | 25,062,405 | 22,819,191 | |||
Liabilities | |||||
Accounts payable, accrued expenses and other | 517,084 | 266,524 | |||
Total liabilities | 17,792,236 | 16,302,677 | |||
Liabilities and Equity | |||||
Common shares (par value $0.00000001; issued and outstanding: 100,000,000 shares) | 0 | 0 | |||
Preferred shares (par value $1.00; issued and outstanding: 28,169,062 shares; aggregate liquidation value: $704,227) | 28,169 | 28,169 | |||
Additional paid-in capital | 2,396,530 | 2,396,530 | |||
Accumulated other comprehensive loss | (75,925) | (138,634) | |||
Retained earnings | 4,921,395 | 4,230,449 | |||
Total shareholders’ equity | 7,270,169 | 6,516,514 | 6,745,112 | ||
Total liabilities and shareholders’ equity | 25,062,405 | 22,819,191 | |||
Other information | |||||
Fixed maturities, at amortized cost | 10,468,937 | 12,627,921 | |||
Short-term investments, at amortized cost | $ 1,003,508 | $ 495,050 | |||
Common shares, par value | $ 0.00 | $ 0.00 | |||
Common shares, shares issued | 100,000,000 | 100,000,000 | |||
Preferred shares, par value | $ 1 | $ 1 | |||
Preferred shares, shares issued | 28,169,062 | 28,169,062 | |||
Preferred shares, shares outstanding | 28,169,062 | 28,169,062 | |||
Aggregate liquidation preference | $ 704,227 | $ 704,227 | |||
Parent Company | |||||
Assets | |||||
Fixed maturities, at fair value (amortized cost: 2019, $56,096; 2018, $109,824) | 58,161 | 109,951 | |||
Short-term investments, at fair value (amortized cost: 2019, $3,993; 2018, $nil) | 3,993 | 0 | |||
Cash and cash equivalents | 4,512 | 1,081 | $ 26,681 | $ 23,150 | |
Investment in subsidiaries | 8,896,352 | 8,831,161 | |||
Intercompany loans and balances receivable | 219,815 | 657,156 | |||
Other assets | 4,422 | 4,588 | |||
Total assets | 9,187,255 | 9,603,937 | |||
Liabilities | |||||
Intercompany loans and balances payable | 1,884,499 | 3,061,210 | |||
Accounts payable, accrued expenses and other | 32,587 | 26,213 | |||
Total liabilities | 1,917,086 | 3,087,423 | |||
Liabilities and Equity | |||||
Common shares (par value $0.00000001; issued and outstanding: 100,000,000 shares) | 0 | 0 | |||
Preferred shares (par value $1.00; issued and outstanding: 28,169,062 shares; aggregate liquidation value: $704,227) | 28,169 | 28,169 | |||
Additional paid-in capital | 2,396,530 | 2,396,530 | |||
Accumulated other comprehensive loss | (75,925) | (138,634) | |||
Retained earnings | 4,921,395 | 4,230,449 | |||
Total shareholders’ equity | 7,270,169 | 6,516,514 | |||
Total liabilities and shareholders’ equity | 9,187,255 | 9,603,937 | |||
Other information | |||||
Fixed maturities, at amortized cost | 56,096 | 52,406 | |||
Short-term investments, at amortized cost | $ 3,993 | $ 0 | |||
Common shares, par value | $ 0.00 | $ 0.00 | |||
Common shares, shares issued | 100,000,000 | 100,000,000 | |||
Preferred shares, par value | $ 1 | $ 1 | |||
Preferred shares, shares issued | 28,169,062 | 28,169,062 | |||
Preferred shares, shares outstanding | 28,169,062 | 28,169,062 | |||
Aggregate liquidation preference | $ 704,227 | $ 704,227 | |||
Parent Company | Financial Guarantee | Notes Issued By Partner Re Finance II Inc | Capital efficient notes | |||||
Other information | |||||
Aggregate principal amount of guarantee obligations | $ 62,000 | ||||
Percentage ownership | 100.00% | ||||
Stated interest rate of debt instrument | 6.44% | ||||
Parent Company | Financial Guarantee | Notes issued by PartnerRe Ireland Finance DAC | 2016 Euro Senior Notes | |||||
Other information | |||||
Percentage ownership | 100.00% | ||||
Stated interest rate of debt instrument | 1.25% | ||||
Parent Company | Financial Guarantee | Notes issued by Partner Re Finance B LLC | Senior Notes | |||||
Other information | |||||
Percentage ownership | 100.00% | ||||
Stated interest rate of debt instrument | 3.70% | ||||
[1] | Short-term investments includes $229 million of available-for-sale securities with readily determinable fair values. These securities were purchased in 2018 and are recorded at fair value, which approximated amortized cost given the short term to maturity of approximately three to four months |
SCHEDULE II - Condensed Stateme
SCHEDULE II - Condensed Statements of Operations - Parent Company Only (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Income Statements, Captions [Line Items] | |||
Net investment income | $ 448,538 | $ 415,921 | $ 402,071 |
Net realized and unrealized investment gains (losses) | 886,670 | (389,632) | 232,491 |
Total revenues | 7,875,747 | 5,590,226 | 5,674,785 |
Other expenses | 369,969 | 305,568 | 348,398 |
Net foreign exchange losses (gains) | 86,760 | (119,151) | 108,244 |
Net income (loss) | 936,748 | (85,994) | 264,021 |
Preferred dividends | 46,416 | 46,416 | 46,416 |
Net income (loss) attributable to common shareholder | 890,332 | (132,410) | 217,605 |
Other comprehensive income (loss) | 62,709 | (48,353) | (15,712) |
Comprehensive (loss) income | 999,457 | (134,347) | 248,309 |
Parent Company | |||
Condensed Income Statements, Captions [Line Items] | |||
Net investment income | 1,620 | 1,844 | 1,890 |
Interest income on intercompany loans | 12,215 | 13,015 | 12,201 |
Net realized and unrealized investment gains (losses) | 2,594 | (1,632) | 91 |
Other income (loss) | 112 | (6,778) | 8,418 |
Total revenues | 16,541 | 6,449 | 22,600 |
Other expenses | 51,115 | 25,792 | 40,131 |
Interest expense on intercompany loans | 14,757 | 15,041 | 12,085 |
Net foreign exchange losses (gains) | (26,885) | (50,276) | 35,753 |
Total expenses | 38,987 | (9,443) | 87,969 |
(Loss) income before equity in net income (loss) of subsidiaries | (22,446) | 15,892 | (65,369) |
Income (Loss) from Subsidiaries, Net of Tax | 959,194 | (101,886) | 329,390 |
Net income (loss) | 936,748 | (85,994) | 264,021 |
Preferred dividends | 46,416 | 46,416 | 46,416 |
Net income (loss) attributable to common shareholder | 890,332 | (132,410) | 217,605 |
Other comprehensive income (loss) | 62,709 | (48,353) | (15,712) |
Comprehensive (loss) income | $ 999,457 | $ (134,347) | $ 248,309 |
SCHEDULE II - Condensed State_2
SCHEDULE II - Condensed Statements of Cash Flows - Parent Company Only (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Cash flows from operating activities | ||||
Net income (loss) | $ 936,748 | $ (85,994) | $ 264,021 | |
Adjustments to reconcile net income to net cash used in operating activities: | ||||
Other, net | 150,340 | (141,808) | (39,756) | |
Net cash provided by operating activities | 998,869 | 447,493 | 242,876 | |
Cash flows from investing activities | ||||
Purchases of short-term investments | 3,142,818 | 733,431 | 143,859 | |
Other, net | 94,263 | 5,357 | 71,511 | |
Net cash provided by (used in) investing activities | (117,994) | (1,260,911) | 98,821 | |
Net cash used in financing activities | (267,868) | (94,251) | (387,239) | |
Effect of foreign exchange rate changes on cash | (6,451) | 13,564 | 44,226 | |
Increase (decrease) in cash and cash equivalents | 606,556 | (894,105) | (1,316) | |
Cash and cash equivalents—beginning of year | 877,907 | 1,772,012 | 1,773,328 | |
Cash and cash equivalents—end of year | 1,484,463 | 877,907 | 1,772,012 | |
Fixed maturities | ||||
Cash flows from investing activities | ||||
Purchases of fixed maturities | 14,918,698 | 15,638,777 | 12,465,127 | |
Parent Company | ||||
Cash flows from operating activities | ||||
Net income (loss) | 936,748 | (85,994) | 264,021 | |
Adjustments to reconcile net income to net cash used in operating activities: | ||||
Equity in net income of subsidiaries | (959,194) | 101,886 | (329,390) | |
Other, net | (17,167) | (29,283) | 25,239 | |
Net cash provided by operating activities | (39,613) | (13,391) | (40,130) | |
Cash flows from investing activities | ||||
Advances to/from subsidiaries, net | (282,233) | (261,666) | 11,138 | |
Net issue of intercompany loans receivable and payable | [1] | 276,332 | 299,279 | 0 |
Other, net | (29) | (680) | 414 | |
Net cash provided by (used in) investing activities | 44,189 | (22,974) | 35,517 | |
Net cash used in financing activities | [2] | 0 | 0 | 0 |
Effect of foreign exchange rate changes on cash | (1,145) | 10,765 | 8,144 | |
Increase (decrease) in cash and cash equivalents | 3,431 | (25,600) | 3,531 | |
Cash and cash equivalents—beginning of year | 1,081 | 26,681 | 23,150 | |
Cash and cash equivalents—end of year | 4,512 | 1,081 | 26,681 | |
Supplemental cash flow information: | ||||
Non-cash dividends received from subsidiaries | 979,000 | |||
Parent Company | Fixed maturities | ||||
Cash flows from investing activities | ||||
Sales and redemptions of fixed maturities and short-term investments | 72,724 | 65,025 | 40,379 | |
Purchases of fixed maturities | (18,621) | (124,932) | (16,414) | |
Parent Company | Short-term investments | ||||
Cash flows from investing activities | ||||
Sales and redemptions of fixed maturities and short-term investments | 2,189 | 0 | 0 | |
Purchases of short-term investments | (6,173) | 0 | 0 | |
Subsidiaries | ||||
Supplemental cash flow information: | ||||
Non-cash capital contributions to subsidiaries | 22,000 | |||
Payment of dividends by subsidiary on behalf of parent | $ 246,000 | $ 94,000 | $ 191,000 | |
[1] | During the year ended December 31, 2019, the Company recorded non-cash dividends received from subsidiaries and non-cash capital contributions to subsidiaries of $979 million and $22 million, respectively, with corresponding changes to the intercompany loan balances. These non-cash transactions have therefore been excluded from the Condensed Statements of Cash Flows—Parent Company Only. | |||
[2] | During the years ended December 31, 2019, 2018 and 2017, dividends paid to common and preferred shareholders of $246 million, $94 million and $191 million, respectively, were paid by a Bermuda subsidiary on behalf of the parent and have therefore been excluded from the Condensed Statements of Cash Flows—Parent Company Only. |
SCHEDULE III - Supplementary _2
SCHEDULE III - Supplementary Insurance Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | ||||
Deferred Policy Acquisition Costs | $ 874,608 | $ 743,046 | $ 672,307 | |
Gross Reserves | 10,363,383 | 9,895,376 | 10,102,172 | |
Unearned Premiums | 2,433,860 | 2,072,953 | 1,818,999 | |
Other Benefits Payable | 2,417,044 | 2,198,080 | 2,098,759 | |
Premium Revenue | 6,525,218 | 5,513,810 | 5,024,981 | |
Net Investment Income (1) | [1] | 448,538 | 415,921 | 402,071 |
Losses Incurred | 4,923,156 | 4,193,255 | 3,840,982 | |
Amortization of DAC | 1,455,462 | 1,237,464 | 1,119,773 | |
Other Expenses (2) | [2] | 369,969 | 305,568 | 348,398 |
Premiums Written | 6,909,058 | 5,803,364 | 5,119,926 | |
Non Life | ||||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | ||||
Deferred Policy Acquisition Costs | 640,442 | 553,535 | 493,196 | |
Gross Reserves | 10,357,981 | 9,885,913 | 10,102,172 | |
Unearned Premiums | 2,420,009 | 2,062,736 | 1,807,013 | |
Other Benefits Payable | 0 | 0 | 0 | |
Premium Revenue | 5,058,056 | 4,301,862 | 4,055,191 | |
Losses Incurred | 3,662,891 | 3,168,647 | 3,005,567 | |
Amortization of DAC | 1,306,388 | 1,107,760 | 1,023,065 | |
Other Expenses (2) | [2] | 107,414 | 102,397 | 121,134 |
Premiums Written | 5,438,807 | 4,592,282 | 4,154,809 | |
Life and Health | ||||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | ||||
Deferred Policy Acquisition Costs | 234,166 | 189,511 | 179,111 | |
Gross Reserves | 0 | 0 | 0 | |
Unearned Premiums | 13,851 | 10,217 | 11,986 | |
Other Benefits Payable | 2,417,044 | 2,198,080 | 2,098,759 | |
Premium Revenue | 1,467,162 | 1,211,948 | 969,790 | |
Net Investment Income (1) | [1] | 71,756 | 65,567 | 59,895 |
Losses Incurred | 1,263,016 | 1,024,608 | 835,415 | |
Amortization of DAC | 149,074 | 129,704 | 96,708 | |
Other Expenses (2) | [2] | 69,191 | 51,055 | 44,346 |
Premiums Written | 1,470,251 | 1,211,082 | 965,117 | |
Corporate and Other | ||||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | ||||
Deferred Policy Acquisition Costs | 0 | 0 | 0 | |
Gross Reserves | 5,402 | 9,463 | 0 | |
Unearned Premiums | 0 | 0 | 0 | |
Other Benefits Payable | 0 | 0 | 0 | |
Premium Revenue | 0 | 0 | 0 | |
Net Investment Income (1) | [1] | 376,782 | 350,354 | 342,176 |
Losses Incurred | (2,751) | 0 | 0 | |
Amortization of DAC | 0 | 0 | 0 | |
Other Expenses (2) | [2] | 193,364 | 152,116 | 182,918 |
Premiums Written | $ 0 | $ 0 | $ 0 | |
[1] | Because the Company does not manage its assets by segment, net investment income is not allocated to the Non-life business of the reinsurance operations. However, because of the interest-sensitive nature of some of the Company’s Life products, net investment income is considered in management’s assessment of the profitability of the Life and Health segment. | |||
[2] | Other expenses are a component of underwriting result for the Non-life business and Life and Health segment as the Company allocates certain other expenses to its operating segments that vary with business written. |
SCHEDULE IV - Reinsurance (Deta
SCHEDULE IV - Reinsurance (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Life reinsurance in force | ||||
Gross amount | [1] | $ 0 | $ 0 | $ 0 |
Ceded to other companies | [1] | 17,632,050 | 16,349,433 | 15,136,473 |
Assumed from other companies | [1] | 359,376,352 | 349,064,323 | 295,171,940 |
Net amount | [1] | $ 341,744,302 | $ 332,714,890 | $ 280,035,467 |
Percentage of amount assumed to net | [1] | 105.00% | 105.00% | 105.00% |
Reinsurance Premiums For Insurance Companies By Product Segment Net Amount [Abstract] | ||||
Gross amount | $ 275,923 | $ 248,501 | $ 261,760 | |
Ceded to other companies | 397,860 | 474,121 | 446,565 | |
Assumed from other companies | 6,647,155 | 5,739,430 | 5,209,786 | |
Net premiums earned | $ 6,525,218 | $ 5,513,810 | $ 5,024,981 | |
Percentage of amount assumed to net | 102.00% | 104.00% | 104.00% | |
Life [Member] | ||||
Reinsurance Premiums For Insurance Companies By Product Segment Net Amount [Abstract] | ||||
Gross amount | $ 0 | $ 0 | $ 0 | |
Ceded to other companies | 22,559 | 24,025 | 18,094 | |
Assumed from other companies | 1,427,723 | 1,184,604 | 944,752 | |
Net premiums earned | $ 1,405,164 | $ 1,160,579 | $ 926,658 | |
Percentage of amount assumed to net | 102.00% | 102.00% | 102.00% | |
Accident and health [Member] | ||||
Reinsurance Premiums For Insurance Companies By Product Segment Net Amount [Abstract] | ||||
Gross amount | $ 0 | $ 0 | $ 0 | |
Ceded to other companies | 0 | 0 | 0 | |
Assumed from other companies | 61,998 | 51,369 | 43,132 | |
Net premiums earned | $ 61,998 | $ 51,369 | $ 43,132 | |
Percentage of amount assumed to net | 100.00% | 100.00% | 100.00% | |
Property and casualty [Member] | ||||
Reinsurance Premiums For Insurance Companies By Product Segment Net Amount [Abstract] | ||||
Gross amount | [2] | $ 275,923 | $ 248,501 | $ 261,760 |
Ceded to other companies | [2] | 375,301 | 450,096 | 428,471 |
Assumed from other companies | [2] | 5,157,434 | 4,503,457 | 4,221,902 |
Net premiums earned | [2] | $ 5,058,056 | $ 4,301,862 | $ 4,055,191 |
Percentage of amount assumed to net | [2] | 102.00% | 105.00% | 104.00% |
[1] | Life reinsurance in force excludes products that do not pass risk transfer, | |||
[2] | P&C includes Specialty and U.S. health premiums. |
SCHEDULE VI - Supplemental In_2
SCHEDULE VI - Supplemental Information Concerning Property-Casualty Insurance Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Non Life | |||||
Supplemental Information Concerning Property-Casualty Insurance Operations [Line Items] | |||||
Deferred Policy Acquisition Costs | $ 640,442 | $ 553,535 | $ 493,196 | ||
Liability for Unpaid Losses and Loss Expenses | 10,363,383 | 9,895,376 | 10,102,172 | ||
Unearned Premiums | 2,420,009 | 2,062,736 | 1,807,013 | ||
Premiums Earned | 5,058,056 | 4,301,862 | 4,055,191 | ||
Losses and Loss Expenses Incurred Related to - Current year | 3,716,988 | [1] | 3,417,366 | 3,453,725 | |
Losses and Loss Expenses Incurred Related to - Prior year | (56,848) | [1] | (248,719) | (448,158) | |
Acquisition Costs | 1,306,388 | 1,107,760 | 1,023,065 | ||
Paid Losses and Loss Expenses | 3,090,670 | 2,921,987 | 2,979,051 | ||
Premiums Written | 5,438,807 | $ 4,592,282 | $ 4,154,809 | ||
Corporate and Other | |||||
Supplemental Information Concerning Property-Casualty Insurance Operations [Line Items] | |||||
Losses and Loss Expenses Incurred Related to - Current year | [1] | $ 3,000 | |||
[1] | (1) Includes the Company's P&C and Specialty segments.(2) Net incurred losses include favorable loss development of $3 million during the year ended December 31, 2019, which are allocated to Corporate and Other. |