Cover
Cover | 12 Months Ended |
Dec. 31, 2020shares | |
Entity Listings [Line Items] | |
Document type | 20-F |
Amendment flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document period end date | Dec. 31, 2020 |
Document Fiscal Period Focus | FY |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-14536 |
Entity registrant name | PartnerRe Ltd. |
Entity Incorporation, State or Country Code | D0 |
Entity Address, Address Line One | 90 Pitts Bay Road |
Entity Address, City or Town | Pembroke |
Entity Address, Country | BM |
Entity Address, Postal Zip Code | HM08 |
Entity well known seasoned issuer | No |
Entity voluntary filers | No |
Entity current reporting status | Yes |
Entity Interactive Data Current | Yes |
Entity filer category | Non-accelerated Filer |
Entity emerging growth company | false |
ICFR Auditor Attestation Flag | false |
Document Accounting Standard | U.S. GAAP |
Entity shell company | false |
Document Fiscal Year Focus | 2020 |
Current fiscal year end date | --12-31 |
Entity central index key | 0000911421 |
Business Contact | |
Entity Listings [Line Items] | |
Contact Personnel Name | Nicolas Burnet |
Entity Address, Address Line One | 90 Pitts Bay Road |
Entity Address, City or Town | Pembroke |
Entity Address, Country | BM |
Entity Address, Postal Zip Code | HM 08 |
Contact Personnel Email Address | nicolas.burnet@partnerre.com |
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 | 274,664 |
Series G 6.5% cumulative | |
Entity Listings [Line Items] | |
Title of 12(b) Security | 6.50% Series G Cumulative Preferred Shares, $1.00 par value |
Trading Symbol | PRE-G |
Security Exchange Name | NYSE |
Series H 7.25% cumulative | |
Entity Listings [Line Items] | |
Title of 12(b) Security | 7.25% Series H Cumulative Preferred Shares, $1.00 par value |
Trading Symbol | PRE-H |
Security Exchange Name | NYSE |
Series I 5.875% non-cumulative | |
Entity Listings [Line Items] | |
Title of 12(b) Security | 5.875% Series I Non-Cumulative Preferred Shares, $1.00 par value |
Trading Symbol | PRE-I |
Security Exchange Name | NYSE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Fixed maturities, at fair value (amortized cost: 2020, $12,341,937; 2019, $10,468,937) | $ 12,786,380 | $ 10,680,714 |
Short-term investments, at fair value (amortized cost: 2020, $416,059; 2019, $1,003,508) | 416,350 | 1,003,421 |
Equities, at fair value (cost: 2020, $847,066; 2019, $821,430) | 1,496,441 | 1,295,164 |
Investments in real estate | 67,980 | 71,834 |
Other invested assets | 2,967,738 | 3,266,009 |
Total investments | 17,734,889 | 16,317,142 |
Cash and cash equivalents | 2,350,833 | 1,484,463 |
Accrued investment income | 92,058 | 109,673 |
Reinsurance balances receivable | 3,118,870 | 3,400,070 |
Reinsurance recoverable on paid and unpaid losses | 901,063 | 889,021 |
Prepaid reinsurance premiums | 115,986 | 80,942 |
Funds held by reinsured companies | 704,768 | 815,167 |
Deferred acquisition costs | 819,971 | 874,608 |
Deposit assets | 139,818 | 168,067 |
Net tax assets | 182,077 | 179,813 |
Goodwill | 456,380 | 456,380 |
Intangible assets | 107,669 | 117,538 |
Other assets | 174,193 | 169,521 |
Total assets | 26,898,575 | 25,062,405 |
Liabilities | ||
Non-life reserves | 11,395,321 | 10,363,383 |
Life and health reserves | 2,704,229 | 2,417,044 |
Unearned premiums | 2,265,214 | 2,433,860 |
Other reinsurance balances payable | 482,468 | 521,338 |
Debt | 1,974,731 | 1,398,054 |
Deposit liabilities | 5,925 | 5,507 |
Net tax liabilities | 131,621 | 135,966 |
Accounts payable, accrued expenses and other | 612,069 | 517,084 |
Total liabilities | 19,571,578 | 17,792,236 |
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: 2020, 25,489,636 shares; 2019, 28,169,062 shares; aggregate liquidation value: 2020, $637,241; 2019, $704,227) | 25,490 | 28,169 |
Additional paid-in capital | 2,334,564 | 2,396,530 |
Accumulated other comprehensive loss | (96,005) | (75,925) |
Retained earnings | 5,062,948 | 4,921,395 |
Total shareholders’ equity | 7,326,997 | 7,270,169 |
Total liabilities and shareholders’ equity | $ 26,898,575 | $ 25,062,405 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Amortized cost of trading securities, debt | $ 12,341,937 | $ 10,468,937 |
Short-term investments, amortized cost | 416,059 | 1,003,508 |
Equities, at cost | $ 847,066 | $ 821,430 |
Common shares, par value | $ 0.00 | $ 0.00 |
Common shares, shares issued | 100,000,000 | 100,000,000 |
Common stock, shares outstanding | 100,000,000 | 100,000,000 |
Preferred shares, par value per share | $ 1 | $ 1 |
Preferred shares, shares issued | 25,489,636 | 28,169,062 |
Preferred shares, shares outstanding | 25,489,636 | 28,169,062 |
Aggregate liquidation value | $ 637,241 | $ 704,227 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues | |||
Gross premiums written | $ 6,875,925 | $ 7,285,320 | $ 6,299,929 |
Net premiums written | 6,300,858 | 6,909,058 | 5,803,364 |
Decrease (increase) in unearned premiums | 235,968 | (383,840) | (289,554) |
Net premiums earned | 6,536,826 | 6,525,218 | 5,513,810 |
Net investment income | 360,668 | 448,538 | 415,921 |
Net realized and unrealized investment gains (losses) | 454,319 | 886,670 | (389,632) |
Other income | 13,491 | 15,321 | 50,127 |
Total revenues | 7,365,304 | 7,875,747 | 5,590,226 |
Expenses | |||
Losses and loss expenses | 5,334,900 | 4,923,156 | 4,193,255 |
Acquisition costs | 1,356,118 | 1,455,462 | 1,237,464 |
Other expenses | 355,647 | 369,969 | 305,568 |
Interest expense | 39,200 | 40,150 | 43,152 |
Loss on redemption of debt | 0 | 15,175 | 0 |
Amortization of intangible assets | 9,988 | 11,434 | 35,473 |
Net foreign exchange losses (gains) | 51,964 | 86,760 | (119,151) |
Total expenses | 7,147,817 | 6,902,106 | 5,695,761 |
Income (loss) before taxes and interest in earnings of equity method investments | 217,487 | 973,641 | (105,535) |
Income tax (benefit) expense | (13,091) | 52,536 | (8,934) |
Interest in earnings of equity method investments | 23,611 | 15,643 | 10,607 |
Net income (loss) | 254,189 | 936,748 | (85,994) |
Preferred dividends | 45,990 | 46,416 | 46,416 |
Loss on redemption of preferred shares | 2,341 | 0 | 0 |
Net income (loss) attributable to common shareholder | 205,858 | 890,332 | (132,410) |
Comprehensive income (loss) | |||
Net income (loss) | 254,189 | 936,748 | (85,994) |
Change in currency translation adjustment | (5,884) | 71,796 | (74,797) |
Change in unfunded pension obligation, net of tax | (14,383) | (6,803) | 24,859 |
Change in fair value of designated cash flow hedges, net of reclassification adjustment | 0 | (1,877) | 1,877 |
Change in unrealized gains or losses on investments, net of tax | 187 | (407) | (292) |
Other comprehensive (loss) income | (20,080) | 62,709 | (48,353) |
Comprehensive income (loss) | $ 234,109 | $ 999,457 | $ (134,347) |
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 (loss) on investments | Retained earnings | Retained earningsCumulative effect of adoption of accounting guidance |
Balance at beginning of year at Dec. 31, 2017 | $ 0 | $ 28,169 | $ 2,396,530 | $ (90,281) | $ (56,903) | $ (34,044) | $ 666 | $ 4,410,694 | $ 0 | |
Redemption of preferred shares | 0 | 0 | ||||||||
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) | ||||||||
Loss on redemption of preferred shares | 0 | 0 | ||||||||
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 | 0 |
Balance at end of period, tax impact | 2,479 | 0 | ||||||||
Redemption of preferred shares | 0 | 0 | ||||||||
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) | ||||||||
Loss on redemption of preferred shares | 0 | 0 | ||||||||
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 | $ (14,305) |
Balance at end of period, tax impact | 4,379 | 0 | ||||||||
Redemption of preferred shares | (2,679) | (61,966) | ||||||||
Change in currency translation adjustment | (5,884) | (5,884) | ||||||||
Change in unfunded pension obligation, net of tax | (14,383) | (14,383) | ||||||||
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 | 187 | 187 | ||||||||
Net income (loss) | 254,189 | 254,189 | ||||||||
Dividends on common shares | (50,000) | |||||||||
Dividends on preferred shares | (45,990) | (45,990) | ||||||||
Loss on redemption of preferred shares | (2,341) | (2,341) | ||||||||
Balance at end of year at Dec. 31, 2020 | $ 7,326,997 | $ 0 | $ 25,490 | $ 2,334,564 | $ (96,005) | $ (65,788) | (30,371) | 154 | $ 5,062,948 | |
Balance at end of period, tax impact | $ 7,559 | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Cash flows from operating activities | ||||
Net income (loss) | $ 254,189 | $ 936,748 | $ (85,994) | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
Amortization of net premium on investments | 34,708 | 14,478 | 52,495 | |
Amortization of intangible assets | 9,988 | 11,434 | 35,473 | |
Net realized and unrealized investment (gains) losses | (454,319) | (886,670) | 389,632 | |
Loss on redemption of debt | 0 | 15,175 | 0 | |
Changes in: | ||||
Reinsurance balances, net | 274,506 | (397,563) | (427,220) | |
Reinsurance recoverable on paid and unpaid losses, net of ceded premiums payable | 16,026 | 112,223 | (98,086) | |
Funds held by reinsured companies and funds held–directly managed | 175,272 | 56,890 | (23,483) | |
Deferred acquisition costs | 74,871 | (128,426) | (98,475) | |
Net tax assets and liabilities | (23,647) | 17,118 | (82,247) | |
Non-life and life and health reserves | 944,263 | 713,281 | 637,652 | |
Unearned premiums, net of prepaid reinsurance premiums | (235,968) | 383,841 | 289,554 | |
Other net changes in operating assets and liabilities | 55,004 | 150,340 | (141,808) | |
Net cash provided by operating activities | 1,124,893 | 998,869 | 447,493 | |
Cash flows from investing activities | ||||
Sales of fixed maturities | 5,518,588 | 16,502,655 | 14,665,938 | |
Redemptions of fixed maturities | 1,821,934 | 738,478 | 494,148 | |
Purchases of fixed maturities | (8,962,066) | (14,918,698) | (15,638,777) | |
Sales of short-term investments | 3,637,532 | 1,914,640 | 224,411 | |
Redemptions of short-term investments | 1,971,826 | 724,033 | 23,432 | |
Purchases of short-term investments | (5,006,397) | (3,142,818) | (733,431) | |
Sales of equities | 143,932 | 133,891 | 89,349 | |
Purchases of equities | (151,292) | (296,687) | (218,751) | |
Sales and redemptions of other invested assets | 1,300,591 | 330,227 | 328,924 | |
Purchases of other invested assets | (930,827) | (2,009,452) | (490,797) | |
Other, net | 23,431 | (94,263) | (5,357) | |
Net cash used in investing activities | (632,748) | (117,994) | (1,260,911) | |
Cash flows from financing activities | ||||
Dividends paid to common and preferred shareholders | (95,990) | (245,802) | (94,251) | |
Issuance of unrestricted Class B common shares | [1] | 2,257 | 1,159 | 0 |
Redemption of Class B common shares | [1] | (5,157) | (6,540) | 0 |
Redemption of preferred shares | (66,985) | 0 | 0 | |
Proceeds from Issuance of Debt | 494,237 | 496,012 | 0 | |
Redemption of debt | 0 | (512,697) | 0 | |
Net cash provided by (used in) financing activities | 328,362 | (267,868) | (94,251) | |
Effect of foreign exchange rate changes on cash | 45,863 | (6,451) | 13,564 | |
Increase (decrease) in cash and cash equivalents | 866,370 | 606,556 | (894,105) | |
Cash and cash equivalents—beginning of year | 1,484,463 | 877,907 | 1,772,012 | |
Cash and cash equivalents—end of year | 2,350,833 | 1,484,463 | 877,907 | |
Supplemental cash flow information: | ||||
Taxes paid | 64,288 | 85,047 | 139,543 | |
Interest paid | $ 33,164 | $ 38,650 | $ 41,551 | |
[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, 2020 | |
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. Reinsurance 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, the Company or the Group. 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, 2020 and 2019, 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, 2020 and 2019, the Company also had 274,664 and 281,768, 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, 2020 and 2019 was approximately 99.7%. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
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, 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 of intangible assets 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. Non-monetary assets and liabilities denominated in foreign currency are not subsequently remeasured. 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 certain 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, 2020 and 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 and included in Accounts payable, accrued expenses and other on the Consolidated Balance Sheets. (s) Recent Accounting Pronouncements Adopted during 2020 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, and the Company adopted the guidance effective January 1, 2020. The adoption did not have a material impact on the Company's Consolidated Financial Statements. 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, and the Company adopted this guidance effective January 1, 2020. As the guidance is disclosure-related only, it did not have a material impact on the Company's Consolidated Financial Statements. Refer to Note 3 for the relevant disclosures. In August 2018, the FASB issued updated guidance to improve the effectiveness of disclosures 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, 2019, and the Company adopted the guidance effective January 1, 2020. As the guidance is disclosure-related only, it did not have a material impact on the Company's Consolidated Financial Statements. Refer to Note 14 for the relevant 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 are not impacted by the adoption of this guidance. The guidance is effective for annual periods beginning after December 15, 2019. The Company adopted the guidance on January 1, 2020 and recorded an after-tax cumulative effect adjustment as a decrease to retained earnings of $14 million upon adoption. Refer to Notes 8(a) and 15(a) for further information regarding the impacts of adoption of this guidance. Not yet adopted 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, 2022. 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, 2023. This guidance could have a material impact on the measurement recognition of long duration contracts and will result in additional disclosures once adopted. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2020 | |
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; 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; certain corporate 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; warrants; and total return swaps included in Other invested assets. At December 31, 2020 and 2019, 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, 2020 Quoted prices in Significant Significant Total Fixed maturities U.S. government and government sponsored enterprises $ — $ 2,409,540 $ — $ 2,409,540 U.S. states, territories and municipalities — 17,491 120,477 137,968 Non-U.S. sovereign government, supranational and government related — 2,180,762 — 2,180,762 Corporate bonds — 3,325,324 16,530 3,341,854 Asset-backed securities — — 17,528 17,528 Residential mortgage-backed securities — 4,698,728 — 4,698,728 Fixed maturities $ — $ 12,631,845 $ 154,535 $ 12,786,380 Short-term investments $ — $ 416,350 $ — $ 416,350 Equities Energy $ — $ — $ 34,448 $ 34,448 Consumer cyclical 13,312 — 475 13,787 Consumer non-cyclical — — 6,886 6,886 Insurance — 117 4,000 4,117 Finance 3,508 — 138 3,646 Real estate — — 2,338 2,338 Industrials — — 39 39 Diversified 2 — 3,098 3,100 Mutual funds — — 1,428,080 1,428,080 Equities $ 16,822 $ 117 $ 1,479,502 $ 1,496,441 Other invested assets Derivative assets Foreign exchange forward contracts $ — $ 7,309 $ — $ 7,309 Total return swaps — — 797 797 Insurance-linked securities — — 3,074 3,074 Other — — 419 419 Other Corporate loans (1) — — 1,326,143 1,326,143 Notes and loans receivable and notes securitization — — 7,121 7,121 Private equities — — 756,731 756,731 Derivative liabilities Foreign exchange forward contracts — (10,698) — (10,698) Total return swaps — — (3,152) (3,152) Interest rate swaps — (17,509) — (17,509) Insurance-linked securities — — (2,000) (2,000) Other invested assets $ — $ (20,898) $ 2,089,133 $ 2,068,235 Total $ 16,822 $ 13,027,414 $ 3,723,170 $ 16,767,406 (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 $0.9 billion and $1.4 billion at December 31, 2020 and 2019, 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 $0.4 billion and $0.5 billion of other privately issued corporate loans at December 31, 2020 and 2019 respectively. December 31, 2019 Quoted prices in Significant Significant 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 — — 1,879,105 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 At December 31, 2020 and 2019, the aggregate carrying amounts of items included in Other invested assets that the Company did not measure at fair value were $900 million and $866 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 investments. At December 31, 2020 and 2019, the carrying value of accrued investment income approximated fair value due to its short-term nature. During the year ended December 31, 2020 , an equity security valued at $4 million was transferred from Level 1 to Level 3 due to the unavailability of quoted prices in active markets. There were no transfers from Level 1 to Level 3 during the year ended December 31, 2019. During the years ended December 31, 2020 and 2019, private equity securities valued at $3 million and $14 million, respectively, were transferred from Level 3 to Level 1 due to the availability of quoted prices in active markets. 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, 2020 and 2019, 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, 2020 and 2019, were as follows (in thousands of U.S. dollars): For the year ended December 31, 2020 Balance at Realized and Purchases Settlements and (1) Net Balance Change in Fixed maturities U.S. states, territories and municipalities $ 143,427 $ (5,785) $ — $ (17,165) $ — $ 120,477 $ (5,780) Asset-backed securities 18,228 — — (700) — 17,528 — Corporate bonds 18,687 (128) — (2,029) — 16,530 (128) Fixed maturities $ 180,342 $ (5,913) $ — $ (19,894) $ — $ 154,535 $ (5,908) Equities Energy $ — $ 3,419 $ 31,128 $ (99) $ — $ 34,448 $ 3,320 Consumer noncyclical — (3,168) 5,560 — 4,494 6,886 278 Insurance 9,403 (5,403) — — — 4,000 4,000 Real estate 2,385 (416) 369 — — 2,338 (416) Consumer cyclical — — 475 — — 475 — Finance 126 12 — — — 138 12 Industrials — (491) 530 — — 39 (491) Diversified — (706) 3,804 — — 3,098 (706) Mutual funds 1,199,847 206,654 47,391 (25,812) — 1,428,080 198,911 Equities $ 1,211,761 $ 199,901 $ 89,257 $ (25,911) $ 4,494 $ 1,479,502 $ 204,908 Other invested assets Derivatives, net $ (2,657) $ (8,217) $ 5,008 $ 5,004 $ — $ (862) $ (5,085) Corporate loans 1,879,105 (10,980) 555,780 (1,097,762) — 1,326,143 31,980 Notes and loan receivables and notes securitization 3,085 124 4,448 (536) — 7,121 (979) Private equities 533,744 105,627 260,096 (140,074) (2,662) 756,731 93,903 Other invested assets $ 2,413,277 $ 86,554 $ 825,332 $ (1,233,368) $ (2,662) $ 2,089,133 $ 119,819 Total $ 3,805,380 $ 280,542 $ 914,589 $ (1,279,173) $ 1,832 $ 3,723,170 $ 318,819 (1) Settlements and sales of Equities and Other invested assets included sales of $26 million and $1.1 billion, respectively. Sales of Other invested assets of $1.1 billion included sales of corporate loans of $981 million and private equities of $137 million. For the year ended December 31, 2019 Balance at Realized and Purchases Settlements and (1) Net Balance Change in 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. The significant unobservable inputs used in the valuation of financial instruments measured at fair value using Level 3 inputs at December 31, 2020 and 2019 were as follows (fair value in thousands of U.S. dollars): December 31, 2020 Fair value Valuation techniques Unobservable inputs Range (Weighted average (1) ) Fixed maturities U.S. states, territories and municipalities $ 120,477 Discounted cash flow Credit spreads 2.5% – 283.2% (14.8%) Asset backed securities 17,528 Discounted cash flow Credit spreads 4.7% (4.7%) Other invested assets Total return swaps, net (2,355) Discounted cash flow Credit spreads 2.7% – 36.7% (29.8%) Insurance-linked securities – longevity swaps 3,074 Discounted cash flow Credit Spreads 1.8% (1.8%) Notes and loans receivables 6,446 Discounted cash flow Credit spread 17.5% (17.5%) Gross revenue/fair value 1.1 (1.1) Note securitization 675 Discounted cash flow Credit spreads 2.5% (2.5%) Private equity – other 30,067 Discounted cash flow Effective yield 3.9% (3.9%) Private equity – funds 188,533 Lag reported market value Net asset value, as reported 100.0% (100.0%) Market adjustments 15.7% – 16.0% (15.9%) December 31, 2019 Fair value Valuation techniques Unobservable inputs Range (Weighted average (1) ) 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%) (1) Unobservable inputs were weighted by the relative fair value of the instruments. 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), 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). Changes in the fair value of the Company’s financial instruments subject to the fair value option during the years ended December 31, 2020, 2019 and 2018 were as follows (in thousands of U.S. dollars): 2020 2019 2018 Fixed maturities and short-term investments $ 219,946 $ 190,343 $ (150,926) Equities 167,456 403,011 2,791 Other invested assets 63,669 50,857 (12,987) Funds held–directly managed (1) — — (6,484) Total $ 451,071 $ 644,211 $ (167,606) (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 — consists of special purpose financing securities. 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. 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 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, interest rate swaps and foreign currency option contracts 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 credit spreads and gross revenue to fair value 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 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, 2020 and 2019, 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 junior subordinated notes. The fair value of the debt related to senior notes as of December 31, 2020 and 2019 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 junior subordinated notes as of December 31, 2020 and 2019 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, 2020 and 2019, the Company’s debt related to the senior notes and junior subordinated notes 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, 2020 | |
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, 2020, 2019 and 2018 were as follows (in thousands of U.S. dollars): 2020 2019 2018 Net realized investment gains (losses) on fixed maturities and short-term investments $ 24,828 $ 243,508 $ (224,887) Net realized investment gains on equities 21,538 6,545 14,601 Net realized investment (losses) gains on other invested assets (30,436) 830 7,136 Net realized investment gains on funds held–directly managed (1) — — 1,200 Net realized investment gains (losses) $ 15,930 $ 250,883 $ (201,950) Change in net unrealized investment gains (losses) on fixed maturities and short-term investments $ 219,946 $ 190,343 $ (150,926) Change in net unrealized investment gains on equities 167,456 403,011 2,791 Change in net unrealized investment gains (losses) on other invested assets 58,452 44,441 (25,607) Change in net unrealized investment losses on funds held–directly managed (1) — — (6,484) Net other realized and unrealized investment (losses) gains (1,346) 969 (1,334) Change in net unrealized investment gains (losses) $ 444,508 $ 638,764 $ (181,560) Impairment loss on investments in real estate $ (6,119) $ (2,977) $ (6,122) Net realized and unrealized investment gains (losses) $ 454,319 $ 886,670 $ (389,632) (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, 2020, 2019 and 2018 were as follows (in thousands of U.S. dollars): 2020 2019 2018 Fixed maturities $ 290,259 $ 379,939 $ 378,726 Short-term investments and cash and cash equivalents 12,000 26,981 13,279 Other invested assets 89,129 68,879 26,234 Equities, funds held and other (1) 20,477 12,221 21,964 Funds held–directly managed (2) — — 4,674 Investment expenses (51,197) (39,482) (28,956) Net investment income $ 360,668 $ 448,538 $ 415,921 (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 6.5%, 0.1% to 5.1% and 0.1% to 7.4% for the years ended December 31, 2020, 2019 and 2018, 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, 2020 and 2019, approximately $209 million and $294 million, respectively, of cash and cash equivalents and approximately $4,993 million and $4,025 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, 2020 and 2019, receivables for securities sold of $24 million and $31 million, respectively, were recorded within Other assets. At December 31, 2020 and 2019, payables for securities purchased of $286 million and $169 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) Equity Method Investments Investments accounted for under the equity method at December 31, 2020 and 2019 totaled $900 million and $866 million respectively. At December 31, 2020 and 2019, the Company held a 36% shareholding in the privately held United Kingdom real estate investment and development group, Almacantar Group Limited (Almacantar). The total carrying value of this investment was $494 million and $483 million, at December 31, 2020 and 2019, respectively, and is included within Other invested assets in the Consolidated Balance Sheets. The Company's other equity method investments are comprised of primarily of passive investment interests focusing in the real estate sector. |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2020 | |
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. 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. There were no derivatives designated as hedges for the years ended December 31, 2020 and 2019. 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, 2020 and 2019 were as follows (in thousands of U.S. dollars): Asset Liability Net derivatives December 31, 2020 Fair value Net notional Derivatives not designated as hedges Foreign exchange forward contracts $ 7,309 $ (10,698) $ (3,389) $ 3,843,436 Insurance-linked securities (1) 3,074 (2,000) 1,074 18,850 Total return swaps 797 (3,152) (2,355) 31,580 Interest rate swaps (2) — (17,509) (17,509) — Other 419 — 419 — Total derivatives not designated as hedges $ 11,599 $ (33,359) $ (21,760) Asset Liability Net derivatives December 31, 2019 Fair value Net notional 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) (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 includes 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 gains and losses in the Consolidated Statements of Operations for derivatives not designated as hedges for the years ended December 31, 2020, 2019 and 2018 were as follows (in thousands of U.S. dollars): 2020 2019 2018 Foreign exchange forward contracts $ (32,611) $ (41,171) $ 45,143 Total included in Net foreign exchange (losses) gains $ (32,611) $ (41,171) $ 45,143 Futures contracts $ — $ (9,952) $ 11,043 Insurance-linked securities (2,341) (4,381) 6,134 Total return swaps (845) — — Interest rate swaps (5,131) (5,230) 2,332 TBAs (510) — (13,614) Other 1,376 463 — Total included in Net realized and unrealized investment gains (losses) $ (7,451) $ (19,100) $ 5,895 Total derivatives not designated as hedges $ (40,062) $ (60,271) $ 51,038 Offsetting of Derivatives The gross and net fair values of derivatives that are subject to offsetting in the Consolidated Balance Sheets at December 31, 2020 and 2019 were as follows (in thousands of U.S. dollars): Gross Net amounts of Gross amounts not offset December 31, 2020 Gross amounts recognized (1) Financial Cash collateral Net amount Total derivative assets $ 11,599 $ — $ 11,599 $ — $ (26,853) $ (15,254) Total derivative liabilities $ (33,359) $ — $ (33,359) $ — $ 11,503 $ (21,856) December 31, 2019 Total derivative assets $ 8,805 $ — $ 8,805 $ — $ (19,537) $ (10,732) Total derivative liabilities $ (24,854) $ — $ (24,854) $ — $ 2,977 $ (21,877) (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, 2020 | |
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, 2020, 2019 and 2018 were as follows (in thousands of U.S. dollars): Goodwill Definite- Indefinite- Total Balance at December 31, 2017 $ 456,380 $ 150,679 $ 9,555 $ 160,234 Acquired during the year (1) — 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 Foreign currency translation — 119 — 119 Intangible assets amortization n/a (9,988) n/a (9,988) Balance at December 31, 2020 $ 456,380 $ 98,114 $ 9,555 $ 107,669 n/a: Not applicable (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. The gross carrying value and accumulated amortization of intangible assets included in the Consolidated Balance Sheets at December 31, 2020 and 2019 were as follows (in thousands of U.S. dollars): December 31, 2020 December 31, 2019 Gross carrying Accumulated Net carrying value Gross carrying Accumulated Net carrying value Definite-lived intangible assets: Renewal rights $ 48,163 $ (38,205) $ 9,958 $ 48,163 $ (35,238) $ 12,925 Customer relationships 67,738 (47,867) 19,871 67,619 (42,419) 25,200 Life VOBA 75,583 (7,298) 68,285 75,583 (5,725) 69,858 Total definite-lived intangible assets $ 191,484 $ (93,370) $ 98,114 $ 191,365 $ (83,382) $ 107,983 Indefinite-lived intangible assets: Insurance licenses 9,555 n/a 9,555 9,555 n/a 9,555 Total intangible assets $ 201,039 $ (93,370) $ 107,669 $ 200,920 $ (83,382) $ 117,538 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, 2020 and 2019 was as follows (in thousands of U.S. dollars): 2020 2019 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- 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 2025 2,070 4,367 6,437 Thereafter 57,683 1,089 58,772 Total $ 68,285 $ 29,829 $ 98,114 |
Non-life and Life and Health Re
Non-life and Life and Health Reserves | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019 was as follows (in thousands of U.S. dollars): December 31, 2020 December 31, 2019 Case reserves $ 4,646,633 $ 4,203,052 ACRs 171,381 158,220 IBNR reserves 6,577,307 6,002,111 Non-life reserves $ 11,395,321 $ 10,363,383 The reconciliation of the beginning and ending gross and net liability for non-life reserves for the years ended December 31, 2020, 2019 and 2018 was as follows (in thousands of U.S. dollars): 2020 2019 2018 Gross liability at beginning of year $ 10,363,383 $ 9,895,376 $ 10,102,172 Reinsurance recoverable at beginning of year 754,795 850,946 719,998 Net liability at beginning of year 9,608,588 9,044,430 9,382,174 Net incurred losses related to: (1)(2) Current year 3,945,248 3,716,988 3,417,366 Prior years 71,456 (56,848) (248,719) 4,016,704 3,660,140 3,168,647 Net paid losses related to: Current year (459,718) (439,285) (336,584) Prior years (2,772,886) (2,651,385) (2,585,403) (3,232,604) (3,090,670) (2,921,987) Retroactive reinsurance recoverable (2) — (81,013) — Change in Paris Re reserve agreement (3) — — (397,493) Effects of foreign exchange rate changes and other 220,303 75,701 (186,911) Net liability at end of year $ 10,612,991 $ 9,608,588 $ 9,044,430 Reinsurance recoverable at end of year 782,330 754,795 850,946 Gross liability at end of year $ 11,395,321 $ 10,363,383 $ 9,895,376 (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 and $9 million at December 31, 2019 and 2018, respectively. There were no incurred losses or non-life reserves allocated to Corporate and Other during 2020. (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 reinsurance recoverable of $81 million and a related deferred gain of $14 million, which was included in Accounts payable, accrued expenses and other in the Consolidated Balance Sheet at December 31, 2019. In the fourth quarter of 2020, the Company completed a business transfer to extinguish the remaining$70 million of non-life reserves and derecognized the $70 million of related reinsurance recoverables. As a result, during 2020, the $14 million deferred gain was recognized within Losses and loss expenses in the Consolidated Statement of Operations. At settlement, $64 million of invested assets were transferred, and there was a corresponding decrease in Other reinsurance balances payable. (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, 2020, the Company reported net unfavorable loss development for prior accident years resulting from adverse loss emergence in the Specialty segment, which was partially offset by favorable loss emergence in the P&C segment. The adverse loss emergence within the Specialty segment was across multiple accident years, predominantly from property, engineering, multiline and aviation business. The favorable loss emergence within the P&C segment was primarily from accident years 2015 and prior, mainly driven by the European casualty, motor and property business, which was partially offset by adverse loss emergence in the U.S. and Asia property business. 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. 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, 2020 and 2019, respectively, no balances related to the Paris Re agreement remain. Asbestos and Environmental Claims The Company’s net non-life reserves at December 31, 2020 and 2019 included $43 million and $45 million, respectively, related to asbestos and environmental claims. The gross liability for such claims at December 31, 2020 and 2019 was $50 million and $51 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, 2020, 2019 and 2018 was as follows (in thousands of U.S. dollars): 2020 2019 2018 Gross liability at beginning of period $ 2,417,044 $ 2,198,080 $ 2,098,759 Reinsurance recoverable at beginning of period 16,183 11,829 9,287 Net liability at beginning of period $ 2,400,861 $ 2,186,251 $ 2,089,472 Net incurred losses (1) 1,318,196 1,263,016 1,024,608 Net losses paid (1,230,383) (1,071,487) (818,916) Effects of foreign exchange rate changes and other 179,893 23,081 (108,913) Net liability at end of period $ 2,668,567 $ 2,400,861 $ 2,186,251 Reinsurance recoverable at end of period 35,662 16,183 11,829 Gross liability at end of period $ 2,704,229 $ 2,417,044 $ 2,198,080 (1) During 2020, certain life and health treaties in the European region were recaptured, resulting in total gains upon recapture of $28 million, recorded as a reduction to net incurred losses. Net incurred losses includes unfavorable prior years' loss development of $52 million during the year ended December 31, 2020 driven by the Company's disability business. The Company used interest rate assumptions to estimate its liabilities for policy benefits for life and annuity contracts which ranged from 0% to 11% at December 31, 2020 and 0% to 7% at December 31, 2019 and 2018. 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, 2020, 2019 and 2018 were comprised as follows (in thousands of U.S. dollars): 2020 2019 2018 Non-life (1) $ 4,016,704 $ 3,660,140 $ 3,168,647 Life and Health 1,318,196 1,263,016 1,024,608 Losses and loss expenses $ 5,334,900 $ 4,923,156 $ 4,193,255 (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 2020, 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 2020, 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 2019 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, 2020 Accident year 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total of IBNR plus expected development on reported claims 2012 $ 2,639,688 $ 2,448,003 $ 2,290,439 $ 2,185,285 $ 2,153,160 $ 2,184,735 $ 2,161,359 $ 2,128,131 $ 2,113,301 $ 56,549 2013 2,878,960 2,701,251 2,524,503 2,471,199 2,438,378 2,410,942 2,407,964 2,389,223 93,466 2014 2,832,489 2,613,300 2,502,796 2,471,459 2,484,045 2,476,974 2,455,964 127,048 2015 2,884,189 2,593,622 2,488,546 2,504,538 2,505,549 2,481,206 171,655 2016 2,913,005 2,679,891 2,620,822 2,635,472 2,644,764 214,995 2017 2,955,964 2,937,200 2,894,231 2,881,721 336,779 2018 3,025,845 3,157,015 3,158,785 661,933 2019 3,438,573 3,666,589 1,322,179 2020 3,964,240 2,790,092 Total $ 25,755,793 $ 5,774,696 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 2020 2012 $ 282,336 $ 1,051,844 $ 1,435,654 $ 1,602,522 $ 1,706,226 $ 1,797,329 $ 1,846,856 $ 1,903,538 $ 1,924,585 2013 243,125 1,295,766 1,647,638 1,849,033 1,979,137 2,072,228 2,138,888 2,173,004 2014 302,881 1,311,827 1,616,215 1,825,493 1,967,077 2,076,264 2,154,230 2015 302,359 1,216,114 1,615,865 1,837,345 2,007,020 2,109,694 2016 322,009 1,363,347 1,721,704 1,997,281 2,125,590 2017 385,968 1,501,428 1,952,096 2,240,013 2018 258,601 1,430,969 2,010,369 2019 376,937 1,578,528 2020 445,338 Total $ 16,761,351 Net reserves for Accident Years and exposures included in the triangles $ 8,994,442 All outstanding liabilities before Accident Year 2012, net of reinsurance 1,242,482 Total outstanding liabilities for unpaid claims $ 10,236,924 AVERAGE ANNUAL PERCENTAGE PAYOUT OF INCURRED CLAIMS BY AGE, NET OF REINSURANCE - NON-LIFE Years 1 2 3 4 5 6 7 8 9 Non-life 11% 38% 16% 9% 6% 4% 3% 2% 1% NET INCURRED LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - PROPERTY For the year ended December 31, December 31, 2020 Accident year 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total of IBNR plus expected development on reported claims 2012 $ 669,251 $ 665,457 $ 585,528 $ 569,161 $ 553,571 $ 553,162 $ 541,206 $ 530,578 $ 529,800 $ 1,389 2013 688,562 583,828 550,859 535,390 531,092 520,552 518,273 517,995 9 2014 517,561 471,863 450,396 448,016 444,502 442,768 441,020 958 2015 591,817 548,716 523,677 516,138 510,688 506,222 3,806 2016 726,247 684,070 637,316 617,028 613,810 (1,802) 2017 1,016,229 1,066,376 982,359 951,418 6,426 2018 854,166 899,055 886,662 82,052 2019 797,247 848,801 90,827 2020 1,183,875 656,924 Total $ 6,479,603 $ 840,589 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 2020 2012 $ 100,426 $ 358,758 $ 452,456 $ 486,598 $ 498,174 $ 507,557 $ 510,674 $ 518,029 $ 517,970 2013 90,133 341,662 442,974 477,517 495,869 498,952 503,187 505,337 2014 91,891 323,437 388,024 414,395 424,068 429,160 432,996 2015 96,019 354,874 443,500 472,059 483,099 488,049 2016 137,065 459,492 541,070 579,666 592,826 2017 223,598 729,810 839,658 891,247 2018 77,248 573,855 715,182 2019 69,729 479,960 2020 108,876 Total $ 4,732,443 Net reserves for Accident Years and exposures included in the triangles $ 1,747,160 All outstanding liabilities before Accident Year 2012, net of reinsurance 96,511 Total outstanding liabilities for unpaid claims $ 1,843,671 AVERAGE ANNUAL PERCENTAGE PAYOUT OF INCURRED CLAIMS BY AGE, NET OF REINSURANCE - PROPERTY Years 1 2 3 4 5 6 7 8 9 Property 15% 52% 15% 6% 2% 1% 1% 1% —% NET INCURRED LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - CASUALTY For the year ended December 31, December 31, 2020 Accident year 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total of IBNR plus expected development on reported claims 2012 $ 687,962 $ 673,952 $ 645,961 $ 606,043 $ 588,811 $ 597,170 $ 592,669 $ 577,494 $ 569,594 $ 41,729 2013 800,809 796,525 747,617 729,592 725,500 721,980 719,484 705,107 77,368 2014 901,424 877,191 857,330 863,051 879,547 873,227 857,663 103,508 2015 899,355 840,261 816,250 858,788 861,603 855,377 147,031 2016 849,717 801,939 822,539 850,527 856,372 174,156 2017 761,089 729,564 757,962 767,640 216,810 2018 941,900 957,888 975,851 418,539 2019 1,214,328 1,223,746 745,117 2020 1,278,149 1,073,385 Total $ 8,089,499 $ 2,997,643 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 2020 2012 $ 51,015 $ 134,416 $ 203,970 $ 276,902 $ 333,006 $ 391,406 $ 422,362 $ 449,854 $ 467,395 2013 50,172 158,781 266,697 348,233 418,556 480,167 521,355 547,056 2014 71,742 209,570 313,465 413,742 501,473 573,308 637,432 2015 67,091 187,339 300,083 398,324 501,468 575,490 2016 33,049 163,317 263,687 380,668 468,089 2017 61,811 180,400 292,946 399,268 2018 62,403 238,134 375,961 2019 89,228 294,178 2020 97,584 Total $ 3,862,453 Net reserves for Accident Years and exposures included in the triangles $ 4,227,046 All outstanding liabilities before Accident Year 2012, net of reinsurance 1,059,637 Total outstanding liabilities for unpaid claims $ 5,286,683 AVERAGE ANNUAL PERCENTAGE PAYOUT OF INCURRED CLAIMS BY AGE, NET OF REINSURANCE - CASUALTY Years 1 2 3 4 5 6 7 8 9 Casualty 7% 16% 13% 12% 11% 9% 6% 4% 3% NET INCURRED LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - SPECIALTY For the year ended December 31, December 31, 2020 Accident year 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total of IBNR plus expected development on reported claims 2012 $ 1,282,475 $ 1,108,594 $ 1,058,950 $ 1,010,081 $ 1,010,778 $ 1,034,403 $ 1,027,484 $ 1,020,059 $ 1,013,907 $ 13,431 2013 1,389,589 1,320,898 1,226,027 1,206,217 1,181,786 1,168,410 1,170,207 1,166,121 16,089 2014 1,413,504 1,264,246 1,195,070 1,160,392 1,159,996 1,160,979 1,157,281 22,582 2015 1,393,017 1,204,645 1,148,619 1,129,612 1,133,258 1,119,607 20,818 2016 1,337,041 1,193,882 1,160,967 1,167,917 1,174,582 42,641 2017 1,178,646 1,141,260 1,153,910 1,162,663 113,543 2018 1,229,779 1,300,072 1,296,272 161,342 2019 1,426,998 1,594,042 486,235 2020 1,502,216 1,059,783 Total $ 11,186,691 $ 1,936,464 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 2020 2012 $ 130,895 $ 558,670 $ 779,228 $ 839,022 $ 875,046 $ 898,366 $ 913,820 $ 935,655 $ 939,220 2013 102,820 795,323 937,967 1,023,283 1,064,712 1,093,109 1,114,346 1,120,611 2014 139,248 778,820 914,726 997,356 1,041,536 1,073,796 1,083,802 2015 139,249 673,901 872,282 966,962 1,022,453 1,046,155 2016 151,895 740,538 916,947 1,036,947 1,064,675 2017 100,559 591,218 819,492 949,498 2018 118,950 618,980 919,226 2019 217,980 804,390 2020 238,878 Total $ 8,166,455 Net reserves for Accident Years and exposures included in the triangles $ 3,020,236 All outstanding liabilities before Accident Year 2012, net of reinsurance 86,334 Total outstanding liabilities for unpaid claims $ 3,106,570 AVERAGE ANNUAL PERCENTAGE PAYOUT OF INCURRED CLAIMS BY AGE, NET OF REINSURANCE - SPECIALTY Years 1 2 3 4 5 6 7 8 9 Specialty 12% 46% 17% 8% 4% 2% 1% 1% —% 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, 2020 was as follows (in thousands of U.S. dollars): December 31, 2020 Total outstanding liability for unpaid claims Property $ 1,843,671 Casualty 5,286,683 Specialty 3,106,570 Total outstanding liabilities for unpaid claims $ 10,236,924 Unallocated loss expenses $ 186,523 U.S. health net reserves (1) 188,879 Other 665 Total other liabilities $ 376,067 Net liability at end of year $ 10,612,991 Reinsurance recoverable on paid and unpaid claims Property $ 327,935 Casualty 166,494 Specialty 287,901 Reinsurance recoverable at end of year $ 782,330 Gross liability at end of year $ 11,395,321 (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, 2020 | |
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 that have 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 adopted updated accounting guidance on the recognition of credit losses effective January 1, 2020. In assessing an allowance for reinsurance recoverable balances, the Company considers historical information, financial strength and credit ratings of reinsurers, collateralization amounts and the remaining expected life of reinsurance recoverable balances to determine the appropriateness of the allowance. Historically, the Company has not experienced material credit losses from retrocessional agreements. In assessing future default for reinsurance recoverable balances, the Company evaluates the valuation allowance under the probability of default and loss given default method and utilizes counterparty credit ratings from major rating agencies, as well as assessing the current market conditions and reasonable and supportable forecasts for the likelihood of default. As a result of the adoption and at December 31, 2020, the Company recorded an allowance for credit losses of $3 million on its reinsurance recoverable balance. This compared to no allowance for its reinsurance recoverable balance at December 31, 2019. (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, 2020, 2019 and 2018 were as follows (in thousands of U.S. dollars): Premiums Premiums Losses and Loss 2020 Non-life $ 5,376,703 $ 5,571,201 $ 4,358,975 Life and Health 1,499,222 1,505,819 1,344,117 Assumed $ 6,875,925 $ 7,077,020 $ 5,703,092 Non-life $ 550,784 $ 516,672 $ 342,271 Life and Health 24,283 23,522 25,921 Ceded $ 575,067 $ 540,194 $ 368,192 Non-life $ 4,825,919 $ 5,054,529 $ 4,016,704 Life and Health 1,474,939 1,482,297 1,318,196 Net $ 6,300,858 $ 6,536,826 $ 5,334,900 Premiums Premiums Losses and Loss 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 (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, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt The debt outstanding related to senior notes and junior subordinated notes and the carrying value recorded in the Consolidated Balance Sheets at December 31, 2020 and 2019 was comprised as follows (in thousands): December 31, 2020 December 31, 2019 Issuer Related Maturity Date Commitment Carrying Value Fair Value Carrying Value Fair Value Debt related to senior notes PartnerRe Finance B LLC Due 2029 $ 500,000 $ 496,168 $ 586,057 $ 495,614 $ 535,309 PartnerRe Ireland Finance DAC Due 2026 € 750,000 914,223 985,352 832,351 871,088 $ 1,410,391 $ 1,571,409 $ 1,327,965 $ 1,406,397 Debt related to junior subordinated notes PartnerRe Finance B LLC Due 2050 $ 500,000 $ 494,251 $ 523,685 $ — $ — PartnerRe Finance II Inc. Due 2066 $ 62,484 70,089 61,013 70,089 55,866 $ 564,340 $ 584,698 $ 70,089 $ 55,866 Debt $ 1,974,731 $ 2,156,107 $ 1,398,054 $ 1,462,263 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 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 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 junior subordinated notes 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, 2020 and 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, 2020 and 2019, which is included in Debt in the Consolidated Balance Sheets, 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 had 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, 2020 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Authorized Shares At December 31, 2020 and 2019, the total authorized share capital (common and preferred) of the Company was $200 million. Common Shares At December 31, 2020 and 2019, 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, 2020, 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 G Series H Series I Total Date of issuance May 2016 May 2016 May 2016 Number of preferred shares outstanding 6,415,264 11,753,798 7,320,574 25,489,636 Annual dividend rate 6.5 % 7.25 % 5.875 % Underwriting discounts and commissions (1) $ 5.4 $ 9.5 $ 6.4 $ 21.3 Aggregate liquidation value, at $25 per share $ 160.4 $ 293.8 $ 183.0 $ 637.2 (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. At December 31, 2019, the Company's issued and outstanding redeemable preferred shares, each with a par value of $1.00 per share, also included Series F preferred shares and totaled 28,169,062. 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, when the restriction expired. 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 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. On October 22, 2020, the Company redeemed 2,679,426 Series F preferred shares at $25 per share for an aggregate liquidation value of $67 million. In addition, unpaid preferred dividends accrued to the redemption date totaling $1 million were paid. In connection with the redemption, the Company recognized a loss of $2 million related to the deferred issuance costs paid upon issuance which were included in Additional paid-in capital related to the Series F preferred shares. There was no additional gain or loss on redemption to recognize as the redemption price and the initial consideration received on the issue of preferred shares were both $25 per share. The loss of $2 million was recognized as a deemed preferred dividend in retained earnings and in determining the Net income attributable to common shareholder. The Company may redeem each of the Series G, H and I preferred shares on or after May 1, 2021. Dividends on the Series 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, 2020 | |
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 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 was restricted to an amount not exceeding 67% of net income per fiscal quarter until December 31, 2020. If the Company did not make aggregate distributions of all of the distributable amounts during any fiscal quarter, such remaining amounts would carryover to be available for dividends in subsequent fiscal quarters, regardless of the Company’s Net income or loss during such subsequent fiscal quarters. This restriction expired on December 31, 2020. At December 31, 2020, 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, 2020, 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, 2020, the maximum dividend that PartnerRe Bermuda could pay without prior regulatory approval was approximately $1,226 million. The reporting deadline for the annual submission is April 30, 2021. 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 lay 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 8, 2021. 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. The reporting deadline for the annual filing is March 1, 2021. 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, 2021. The statutory financial statements and returns of the Company’s reinsurance subsidiaries as at, and for the year ended, December 31, 2020 are due to be submitted to the relevant regulatory authorities later in 2021, 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 2019 and 2018. The statutory net income (loss) of PartnerRe Bermuda, PartnerRe Europe, PartnerRe U.S. and PartnerRe Asia for the years ended December 31, 2020, 2019 and 2018 was as follows (in millions of U.S. dollars): 2020 2019 2018 PartnerRe Bermuda $ (45) $ 863 $ 138 PartnerRe Europe $ 237 $ 188 $ 1 PartnerRe U.S. $ 28 $ (106) $ (197) PartnerRe Asia $ (6) $ 17 $ (40) The required and actual statutory capital and surplus of PartnerRe Bermuda, PartnerRe Europe, PartnerRe U.S. and PartnerRe Asia at December 31, 2020 and 2019 was as follows (in millions of U.S. dollars): PartnerRe Bermuda (1) PartnerRe Europe PartnerRe U.S. PartnerRe Asia 2020 2019 2020 2019 2020 2019 2020 2019 Required statutory capital and surplus $ 2,386 $ 2,249 $ 1,618 $ 1,535 $ 1,080 $ 911 $ 47 $ 53 Actual statutory capital and surplus $ 5,072 $ 4,903 $ 2,417 $ 2,218 $ 1,169 $ 1,080 $ 249 $ 211 (1) Required statutory capital and surplus is calculated at the Target Capital Level |
Taxation
Taxation | 12 Months Ended |
Dec. 31, 2020 | |
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 Hong Kong, Canada, France, Ireland, Singapore, Switzerland and the U.S. Income tax returns are open for examination for the tax years 2015-2020 in Hong Kong, 2016-2020 in Canada and Ireland, 2013-2020 in the U.S., 2017-2020 in Singapore, 2019-2020 in Switzerland, and 2018-2020 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 (benefit) expense for the years ended December 31, 2020, 2019 and 2018 was as follows (in thousands of U.S. dollars): 2020 2019 2018 Current income tax (benefit) expense U.S. $ (97,155) $ 12,899 $ (6,872) Non U.S. 44,764 64,069 33,887 Total current income tax (benefit) expense $ (52,391) $ 76,968 $ 27,015 Deferred income tax expense (benefit) U.S. $ 60,932 $ (25,850) $ (40,318) Non U.S. (25,560) 4,268 3,256 Total deferred income tax expense (benefit) $ 35,372 $ (21,582) $ (37,062) Unrecognized tax expense (benefit) U.S. $ — $ — $ — Non U.S. 3,928 (2,850) 1,113 Total unrecognized tax expense (benefit) $ 3,928 $ (2,850) $ 1,113 Total income tax (benefit) expense U.S. $ (36,223) $ (12,951) $ (47,190) Non U.S. 23,132 65,487 38,256 Total income tax (benefit) expense $ (13,091) $ 52,536 $ (8,934) 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, 2020, 2019 and 2018 (in thousands of U.S. dollars): 2020 2019 2018 Domestic (Bermuda) $ 3,894 $ 715,912 $ 33,759 Foreign 237,204 273,372 (128,687) Income (loss) before taxes $ 241,098 $ 989,284 $ (94,928) 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 15.5 6.5 14.3 Impact of foreign exchange gains or losses (8.1) (0.5) (4.2) Unrecognized tax expense (benefit) 1.6 0.2 (1.2) Tax-exempt income and expenses not deductible (1.4) (0.6) 7.3 Foreign branch tax (3.3) (1.2) (4.1) Valuation allowance 3.4 0.7 (12.3) Outside basis difference in subsidiary — — 6.7 Other (13.1) 0.2 2.9 Actual tax rate (5.4) % 5.3 % 9.4 % On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted in response to the COVID-19 pandemic. The Company did not make use of any direct support measures. It was only the Company’s U.S. subsidiaries that benefited from the CARES Act through the passage of modified tax loss carry-back rules that allow losses to be carried back to years with a higher tax rate. As a result, the Company’s U.S. subsidiaries realized a tax benefit of $35 million (or a reduction of 14.4 points on the effective tax rate) for the year ended December 31, 2020, which is included in Other in the table above. On September 1, 2019, the Canton of Zurich, Switzerland enacted legislation to reduce the current corporate 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 (or a reduction of 0.6 points on the effective tax rate) for the year ended December 31, 2019, which is included in Other in the table above. The components of net tax assets and liabilities at December 31, 2020 and 2019 were as follows (in thousands of U.S. dollars): December 31, 2020 December 31, 2019 Net tax assets $ 182,077 $ 179,813 Net tax liabilities (131,621) (135,966) Net tax assets $ 50,456 $ 43,847 December 31, 2020 December 31, 2019 Net current tax assets $ 112,992 $ 65,000 Net deferred tax liabilities (52,263) (15,464) Net unrecognized tax benefit (10,273) (5,689) Net tax assets $ 50,456 $ 43,847 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, 2020 and 2019 were as follows (in thousands of U.S. dollars): December 31, 2020 December 31, 2019 Deferred tax assets Discounting of loss reserves and adjustment to life policy reserves $ 11,741 $ 15,924 Foreign tax credit carryforwards 198,263 173,936 Tax loss carryforwards 57,485 80,523 Unearned premiums 34,760 37,226 Unrealized appreciation and timing differences on foreign exchange revaluations 20,493 — Other deferred tax assets 42,754 50,738 $ 365,496 $ 358,347 Valuation allowance (211,167) (186,907) Deferred tax assets $ 154,329 $ 171,440 Deferred tax liabilities Deferred acquisition costs $ 67,850 $ 64,140 Goodwill and other intangibles 58,224 61,773 Equalization reserves 7,366 6,416 Unrealized appreciation and timing differences on investments 46,389 26,752 Unrealized appreciation and timing differences on foreign exchange revaluations — 18,830 Other deferred tax liabilities 26,763 8,993 Deferred tax liabilities $ 206,592 $ 186,904 Net deferred tax liabilities $ (52,263) $ (15,464) Realization of 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, 2020 relates to a foreign tax credit carryforward of $198 million in Ireland, and net deferred tax assets of $3 million in Canada, $3 million in the United Kingdom and $7 million in the United States. The valuation allowance recorded at December 31, 2019 related to a foreign tax credit carryforward of $174 million in Ireland, net deferred tax assets of $5 million in Canada and $8 million in the United States. At December 31, 2020, the deferred tax assets included tax loss carryforwards (after valuation allowance) of $23 million in Singapore, $2 million in Hong Kong and $13 million in France that can be carried forward for an unlimited period of time. 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 related to non-life taxable losses, which were fully utilized in 2020. The total amount of unrecognized tax benefits for the years ended December 31, 2020, 2019 and 2018 was as follows (in thousands of U.S. dollars): 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 $ 4,185 $ 1,415 $ — $ — $ 480 $ 6,080 Interest and penalties recognized on the above 1,504 2,455 — — 234 4,193 Total unrecognized tax benefits, including interest and penalties $ 5,689 $ 3,870 $ — $ — $ 714 $ 10,273 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 $ 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, 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 $ 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 For the years ended December 31, 2020, 2019 and 2018, 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, 2020, an unrecognized tax benefit of $5 million is reasonably expected to reverse within twelve months. |
Share-Based Incentives
Share-Based Incentives | 12 Months Ended |
Dec. 31, 2020 | |
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. 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 based on the latest U.S. GAAP book value 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 $15 million and $13 million included in Accounts payable, accrued expense and other in the Consolidated Balance Sheets at December 31, 2020 and 2019, respectively. The compensation expense related to Class B awards for the years ended December 31, 2020, 2019 and 2018 was $11 million, $10 million, and $4 million, respectively, included in Other expenses in the Company's Consolidated Statement of Operations. During 2020, there were repurchases by the Company of $11 million, which included $6 million restricted Class B shares and $5 million unrestricted Class B shares. During 2019, there were repurchases by the Company of $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, 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 Granted 167,202 — 167,202 Purchased — 38,838 38,838 Repurchased (129,583) (83,561) (213,144) Expiration of restricted period (27,785) 27,785 — Outstanding December 31, 2020 189,166 85,498 274,664 |
Retirement Benefit Arrangements
Retirement Benefit Arrangements | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Retirement Benefit Arrangements | Retirement Benefit Arrangements For employee retirement benefits, the Company maintains certain defined contribution plans and other active and frozen defined benefit plans. The majority of the defined benefit obligation at December 31, 2020 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 for the years ended December 31, 2020, 2019 and 2018, 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, 2020 and 2019, the funded status of the Zurich Plan was as follows (in thousands of U.S. dollars): 2020 2019 Underfunded pension obligation at beginning of year $ 44,442 $ 37,105 Change in pension obligation Service cost $ 10,961 $ 8,619 Interest cost 520 1,584 Plan participants’ contributions 4,056 3,604 Actuarial loss 12,023 18,286 Plan amendments — 3,551 Benefits paid (3,910) (2,352) Foreign currency adjustments 20,550 2,828 Change in pension obligation $ 44,200 $ 36,120 Change in fair value of plan assets Actual return on plan assets 2,820 18,140 Employer contributions 7,941 7,193 Plan participants’ contributions 4,056 3,604 Benefits paid (3,910) (2,352) Foreign currency adjustments 15,685 2,198 Change in fair value of plan assets $ 26,592 $ 28,783 Underfunded pension obligation at end of year $ 62,050 $ 44,442 Additional information: Projected benefit obligation at end of year (1) $ 242,112 $ 197,912 Fair value of plan assets at end of year $ 180,062 $ 153,470 Underfunded pension obligation at end of year $ 62,050 $ 44,442 Accumulated pension obligation at end of year (2) $ 231,419 $ 189,089 (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, 2020 and 2019, the underfunded pension obligation of $62 million and $44 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, 2020 and 2019 were cumulative losses of $30 million (net of $8 million of taxes) and $16 million (net of $4 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, 2020, 2019 and 2018 was $5 million, $5 million and $10 million, respectively. The projected benefit obligation increased by $44 million during 2020, driven primarily by $21 million in foreign currency adjustments due to changes in the value of the Swiss Franc during the year. The projected benefit obligation also increased in 2020 due to an increase in new members and a decrease in the discount rate applied to the obligation. The increase in the projected benefit obligation was offset by an increase in the fair value of plan assets of $27 million, due primarily to $16 million in foreign currency adjustments and $8 million in employer contributions. In 2019 the increase in the projected benefit obligation was driven by a decrease in the discount rate applied to the obligation. The increase in the projected benefit obligation was offset by an increase in the fair value of plan assets due primarily to the actual return on plan assets. The investment strategy for the plan 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. On January 1, 2019, the Zurich Plan 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, 2020 and 2019, the coverage ratio was 112% and 115%, respectively, based on the performance of the assets. The actual return on plan assets for the years ended December 31, 2020 and 2019 was $3 million and $18 million. For 2019, the actual return on plan assets 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, comprised of an investment pool of funds and including cash, at December 31, 2020 and 2019 was $180 million and $153 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 is amortized into net income over the remaining years of service of active participants. The assumptions used to determine the Zurich Plan’s pension obligation and net periodic benefit cost for the years ended December 31, 2020, 2019 and 2018 were as follows: 2020 2019 2018 Pension Net periodic Pension Net periodic Pension Net periodic Discount rate 0.10 % 0.25 % 0.25 % 1.00 % 1.00 % 0.75 % Interest crediting rate 1.00 % 1.00 % 1.00 % 1.00 % 1.00 % 1.00 % Expected long-term return on plan assets — 3.50 % — 3.50 % — 0.75 % Rate of compensation increase 2.00 % 2.00 % 2.00 % 2.00 % 2.25 % 2.25 % At December 31, 2020, estimated employer contributions to be paid in 2021 related to the Zurich Plan were $8 million and future benefit payments were estimated to be paid as follows (in thousands of U.S. dollars): Year Amount 2021 $ 8,040 2022 $ 7,478 2023 $ 8,351 2024 $ 8,727 2025 $ 9,289 2026 to 2029 $ 52,579 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies (a) Concentration of Credit Risk Fixed maturities 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, 2020, other than the U.S. and Canadian governments and U.S. 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. At December 31, 2020, the Company held fixed maturity investments in the Canadian government of $776 million. 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 was categorized as a Non-U.S. sovereign government, supranational and government related within Fixed maturities on the Consolidated Balance Sheet. 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. Derivatives The 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 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. 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 operations 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 in 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, reinsurance recoverable on paid and unpaid losses, funds held by reinsured companies and deposit assets. 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, in certain cases, the contractual right to offset amounts payable by the Company to the counterparty against amounts due to the Company from the counterparty. The Company adopted updated accounting guidance on the recognition of credit losses effective January 1, 2020. In assessing future default for reinsurance balances receivable, the Company evaluates the valuation allowance under the loss rate method and utilizes historic loss activity, adjusted for its assessment of current market conditions and reasonable and supportable forecasts on loss rates. As a result of the adoption and at December 31, 2020, the Company increased its allowance for credit losses by $2 million to $9 million, compared to the $7 million allowance for its reinsurance balances receivable at December 31, 2019. In assessing an allowance for funds held by reinsured companies and deposit assets, the Company considers historical information and the financial strength and credit ratings of counterparties to determine the appropriateness of the allowance. In assessing future default for these balances, the Company evaluates the valuation allowance under the probability of default and loss given default method and utilizes counterparty credit ratings from major rating agencies, as well as assessing the current market conditions and reasonable and supportable forecasts for the likelihood of default. As a result of the adoption and at December 31, 2020, the Company recorded an allowance for credit losses of $7 million on its funds held by reinsurance companies and $2 million on its deposit assets. This compared to no allowance for funds held by reinsured companies and deposit assets at December 31, 2019. See Note 8 for discussion of credit risk related to reinsurance recoverable on paid and unpaid losses. (b) Lease Arrangements 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 lease 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, 2020 and 2019 (in thousands of U.S. dollars): 2020 2019 Operating lease costs $ 16,403 $ 15,893 Variable lease costs 724 2,598 Sublease income (1,194) (1,515) Total lease costs $ 15,933 $ 16,976 Other information: Operating lease right-of-use assets (1) $ 64,746 $ 75,774 Operating lease liabilities (2) $ 75,463 $ 85,777 Operating lease right-of-use assets obtained in exchange for lease obligations, non-cash (3) $ 852 $ 86,157 Operating cash outflows from operating leases $ 16,495 $ 11,305 Weighted-average remaining lease term on operating leases (4) 9.1 Yrs 9.2 Yrs Weighted-average discount rate on operating leases (5) 2.7 % 2.6 % (1) Included in Other assets in the Consolidated Balance Sheets (2) Included in Accounts payable, accrued expenses and other (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, 2020 (in thousands of U.S. dollars): Year Expected cash flows 2021 $ 13,211 2022 10,900 2023 10,264 2024 9,179 2025 8,621 2026 to 2038 32,905 Discount (9,617) Total discounted operating lease liabilities $ 75,463 The Company has additional lease commitments of $30 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, 2020. (c) Other Agreements The Company has entered into maintenance agreements and service agreements that provide for business and information technology support and computer equipment. Future payments under these contracts amount to $38 million, with $27 million and $5 million to be paid during 2021 and 2022, respectively, and the remainder to be paid through 2028. The Company has entered into certain investments, including investments in VIEs (see Note 4(e)), with unfunded capital commitments. As of December 31, 2020, the Company expects to fund capital commitments totaling $793 million with $318 million, $303 million, $147 million, and $25 million to be paid during 2021, 2022, 2023, and 2024, 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, 2020 and 2019, the Company’s participation in the facility was $69 million. At December 31, 2020, 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. In exchange for a fee, the Company has committed to provide statutory reserve support to a third party by funding loans if certain events occur. At December 31, 2020, the Company does not believe that it will be required to provide any funding under this commitment, as the occurrence of the defined events is considered remote. (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, 2020, the Company was not a party to any litigation or arbitration that it believes could have a material adverse effect on the financial condition, results of operations or liquidity of the Company. Refer to Note 19 for additional details related to litigation settled after December 31, 2020. |
Credit Agreements
Credit Agreements | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020, the total amount of such credit facilities available to the Company was approximately $752 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 • $250 million secured credit facility, that matures on December 31, 2022, and automatically extends for a further year unless canceled by either counterparty • $100 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 $508 million on a secured basis at December 31, 2020 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, 2020, no conditions of default existed under these facilities. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions During 2020 and 2019, the Company declared and paid to EXOR Nederland N.V. common share dividends totaling $50 million and $199 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, 2020 and 2019, the carrying value of the Company's investment in the limited partnership was $51 million and $32 million, respectively, with the increase during 2020 and 2019 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, 2020 and 2019, the carrying value of these investments totaled $1,039 million and $948 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 $91 million, $385 million, and $12 million were recorded in the Consolidated Statements of Operations for the years ended December 31, 2020, 2019 and 2018, respectively. • In 2016, the Company purchased a 36% shareholding in Almacantar from Exor. Refer to Note 4(f) for a discussion of the Company's interest in Almacantar. During the years ended December 31, 2020, 2019 and 2018, the Company was a party to 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 $310 thousand, $221 thousand and $45 thousand for services rendered in 2020, 2019 and 2018, respectively • investment advisory services and use of certain office space, where the Company paid $259 thousand, $254 thousand and $273 thousand related to services provided in 2020, 2019 and 2018, respectively • certain advisory services for a fixed annual fee of $500 thousand in 2020, 2019 and 2018. Subsequent to year end, the Company entered into a consulting services agreement with Exor Capital LLP effective April 1, 2021 related to certain investments such as alternative fixed income, real estate, public equity and private equity funds as well as co-invest opportunities. The transactions between related parties discussed above were entered into at arm's-length. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020, 2019 and 2018 are presented below (in millions of U.S. dollars, except ratios). Segment Information For the year ended December 31, 2020 P&C Specialty Total Life Corporate Total Gross premiums written $ 3,442 $ 1,935 $ 5,377 $ 1,499 $ — $ 6,876 Net premiums written $ 3,044 $ 1,782 $ 4,826 $ 1,475 $ — $ 6,301 Decrease in unearned premiums 119 110 229 7 — 236 Net premiums earned $ 3,163 $ 1,892 $ 5,055 $ 1,482 $ — $ 6,537 Losses and loss expenses (2,389) (1,628) (4,017) (1,318) — (5,335) Acquisition costs (784) (470) (1,254) (102) — (1,356) Technical result $ (10) $ (206) $ (216) $ 62 $ — $ (154) Other (loss) income (1) — (1) 13 1 13 Other expenses (61) (26) (87) (73) (196) (356) Underwriting result $ (72) $ (232) $ (304) $ 2 n/a $ (497) Net investment income 68 293 361 Allocated underwriting result $ 70 n/a n/a Net realized and unrealized investment gains 454 454 Interest expense (39) (39) Amortization of intangible assets (10) (10) Net foreign exchange losses (52) (52) Income tax benefit 13 13 Interest in earnings of equity method investments 24 24 Net income n/a $ 254 Loss ratio (1) 75.5 % 86.0 % 79.5 % Acquisition ratio (2) 24.8 24.8 24.8 Technical ratio (3) 100.3 % 110.8 % 104.3 % Other expense ratio (4) 1.9 1.4 1.7 Combined ratio (5) 102.2 % 112.2 % 106.0 % (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, 2019 P&C Specialty Total Life Corporate 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 70.6 % 75.3 % 72.4 % Acquisition ratio 25.5 26.3 25.8 Technical ratio 96.1 % 101.6 % 98.2 % Other expense ratio 2.6 1.4 2.1 Combined ratio 98.7 % 103.0 % 100.3 % Segment Information For the year ended December 31, 2018 P&C Specialty Total Life Corporate 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 % The following table provides the geographic distribution of gross premiums written by region for the years ended December 31, 2020, 2019 and 2018 (in millions of U.S. dollars, except percentages): 2020 2019 2018 North America $ 3,794 55 % $ 3,752 51 % $ 2,929 47 % Europe 1,921 28 2,155 30 2,152 34 Asia, Australia and New Zealand 806 12 835 11 699 11 Latin America and the Caribbean 220 3 264 4 260 4 Middle East, Africa, Russia and the Commonwealth of Independent States (CIS) 135 2 279 4 260 4 Total $ 6,876 100 % $ 7,285 100 % $ 6,300 100 % The following table provides the gross premiums written by segment and line of business for the years ended December 31, 2020, 2019 and 2018 (in millions of U.S. dollars, except percentages): 2020 2019 2018 P&C Casualty $ 1,430 $ 1,394 $ 1,052 Property 641 644 615 Catastrophe 545 537 478 U.S. health 379 391 405 Multiline and other 289 213 157 Motor 158 400 308 Total P&C $ 3,442 $ 3,579 $ 3,015 Specialty Financial risks $ 568 $ 587 $ 549 Agriculture 468 483 506 Aviation and space 219 286 228 Energy 192 183 79 Property 173 151 112 Multiline and other 152 276 307 Marine 142 132 103 Engineering 17 102 124 Casualty 4 13 42 Total Specialty $ 1,935 $ 2,213 $ 2,050 Life and Health $ 1,499 $ 1,493 $ 1,235 Total $ 6,876 $ 7,285 $ 6,300 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, 2020, 2019 and 2018. The Company has two brokers that individually accounted for 10% or more of its gross premiums written during the years ended December 31, 2020, 2019 and 2018, as follows: 2020 2019 2018 Marsh (including Guy Carpenter) 30 % 28 % 22 % Aon Group (including the Benfield Group) 21 % 22 % 22 % The following table summarizes the percentage of gross premiums written through these two brokers by segment for the years ended December 31, 2020, 2019 and 2018: 2020 2019 2018 P&C 64 % 60 % 53 % Specialty 64 % 62 % 52 % Life and Health 6 % 8 % 11 % |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsIn March 2019, a cedant (“the Cedant”) brought a motion for a declaratory judgment against the Company 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. In February 2021, the Company reached a settlement with the Cedant. The Company determined that no accrual for a contingent liability was required at December 31, 2020. In February 2021, winter storm Uri brought freezing temperatures, snow and widespread power outages across Texas, U.S., causing severe damage. The Company has exposure to this event and is currently assessing its potential claims, but information as of February 25, 2021 is not sufficient to arrive at a reasonable estimate. |
SCHEDULE I - Consolidated Summa
SCHEDULE I - Consolidated Summary of Investments Other Than Investments in Related Parties | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 (Expressed in thousands of U.S. dollars) Type of investment Cost (1) Fair Value Amount at which shown in Fixed maturities U.S. government and government sponsored enterprises $ 2,386,579 $ 2,409,540 $ 2,409,540 U.S. states, territories and municipalities 110,155 137,968 137,968 Non-U.S. sovereign government, supranational and government related 2,076,962 2,180,762 2,180,762 Corporate bonds 3,185,741 3,341,854 3,341,854 Asset-backed securities 17,537 17,528 17,528 Residential mortgage-backed securities 4,564,926 4,698,728 4,698,728 Other mortgage-backed securities 37 — — Fixed maturities $ 12,341,937 $ 12,786,380 $ 12,786,380 Equities Common stocks Banks, trust and insurance companies $ 2,727 $ 3,646 $ 3,646 Industrial, miscellaneous and all other 798,966 1,449,924 1,449,924 Nonredeemable preferred stocks 45,373 42,871 42,871 Equities $ 847,066 $ 1,496,441 $ 1,496,441 Short-term investments $ 416,059 $ 416,350 $ 416,350 Other invested assets (2) $ 2,068,235 $ 2,967,738 Investments in real estate (3) $ — $ 67,980 Total $ 16,767,406 $ 17,734,889 (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 $900 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, 2020 | |
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, 2020 December 31, 2019 Assets Fixed maturities, at fair value (amortized cost: 2020, $517,294; 2019, $56,096) $ 519,967 $ 58,161 Short-term investments, at fair value (amortized cost: 2020, $nil; 2019, $3,993) — 3,993 Cash and cash equivalents 10,020 4,512 Investments in subsidiaries 9,291,985 8,896,352 Intercompany loans and balances receivable 21,559 219,815 Other 11,443 4,422 Total assets $ 9,854,974 $ 9,187,255 Liabilities Intercompany loans and balances payable (1) $ 2,490,500 $ 1,884,499 Accounts payable, accrued expenses and other 37,477 32,587 Total liabilities 2,527,977 1,917,086 Shareholders’ Equity Common shares (par value $0.00000001; issued and outstanding: 100,000,000 shares) — — Preferred shares (par value $1.00; issued and outstanding: 2020, 25,489,636 shares; 2019, 28,169,062 shares; aggregate liquidation value: 2020, $637,241; 2019, $704,227) 25,490 28,169 Additional paid-in capital 2,334,564 2,396,530 Accumulated other comprehensive loss (96,005) (75,925) Retained earnings 5,062,948 4,921,395 Total shareholders’ equity 7,326,997 7,270,169 Total liabilities and shareholders’ equity $ 9,854,974 $ 9,187,255 (1) The parent has fully and unconditionally guaranteed on a subordinated basis all obligations of PartnerRe Finance II Inc. and PartnerRe Finance B, both indirect 100% owned finance subsidiaries of the parent, related to the remaining $62 million aggregate principal amount of 6.440% Fixed-to-Floating Rate junior subordinated CENts and $500 million aggregate principal amount of 4.500% Fixed-Rate Reset junior subordinated notes, respectively. The parent’s obligations under these guarantees 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 and PartnerRe Finance Ireland DAC, direct 100% owned subsidiary of the parent, related to the issuance of the 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, 2020 December 31, 2019 December 31, 2018 Revenues Net investment income $ 2,094 $ 1,620 $ 1,844 Interest income on intercompany loans — 12,215 13,015 Net realized and unrealized investment gains (losses) 641 2,594 (1,632) Other income (loss) 113 112 (6,778) Total revenues 2,848 16,541 6,449 Expenses Other expenses 53,458 51,115 25,792 Interest expense on intercompany loans 17,188 14,757 15,041 Net foreign exchange losses (gains) 82,986 (26,885) (50,276) Total expenses 153,632 38,987 (9,443) (Loss) income before equity in net income (loss) of subsidiaries (150,784) (22,446) 15,892 Equity in net income (loss) of subsidiaries 404,973 959,194 (101,886) Net income (loss) 254,189 936,748 (85,994) Preferred dividends 45,990 46,416 46,416 Loss on redemption of preferred shares 2,341 — — Net income (loss) attributable to common shareholder $ 205,858 $ 890,332 $ (132,410) Comprehensive income (loss) Net income (loss) $ 254,189 $ 936,748 $ (85,994) Other comprehensive (loss) income (20,080) 62,709 (48,353) Comprehensive income (loss) $ 234,109 $ 999,457 $ (134,347) 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, 2020 December 31, 2019 December 31, 2018 Cash flows from operating activities Net income (loss) $ 254,189 $ 936,748 $ (85,994) Adjustments to reconcile net income to net cash used in operating activities: Equity in net (income) loss of subsidiaries (404,973) (959,194) 101,886 Other, net 87,789 (17,167) (29,283) Net cash used in operating activities (62,995) (39,613) (13,391) Cash flows from investing activities Advances to/from subsidiaries, net (1) (2) (3) 73,738 (282,233) (261,666) Net issue of intercompany loans receivable and payable (1) (4) 458,489 276,332 299,279 Sales and redemptions of fixed maturities 32,230 72,724 65,025 Sales and redemptions of short-term investments 43,899 2,189 — Purchases of fixed maturities (496,139) (18,621) (124,932) Purchases of short-term investments (39,913) (6,173) — Other, net (3,987) (29) (680) Net cash provided by (used in) investing activities 68,317 44,189 (22,974) Net cash used in financing activities (2) — — — Effect of foreign exchange rate changes on cash 186 (1,145) 10,765 Increase (decrease) in cash and cash equivalents 5,508 3,431 (25,600) Cash and cash equivalents—beginning of year 4,512 1,081 26,681 Cash and cash equivalents—end of year $ 10,020 $ 4,512 $ 1,081 (1) During 2020, the parent recorded a non-cash exchange related to a reduction of intercompany loans and balances receivable of $204 million and a corresponding reduction of intercompany loans and balances payable of $204 million. This non-cash transaction has therefore been excluded from the Condensed Statements of Cash Flows—Parent Company Only. (2) During 2020, 2019 and 2018, dividends paid to common and preferred shareholders of $96 million, $246 million and $94 million, respectively, were paid by a Bermuda subsidiary on behalf of the parent, with a corresponding increase to intercompany balances payable. During 2020, the redemption of Series F preferred shares of $67 million was also paid by a Bermuda subsidiary on behalf of the parent, with a corresponding increase to intercompany balances payable. There transactions have therefore been excluded from the Condensed Statements of Cash Flows—Parent Company Only. (3) During 2020, the parent recorded a non-cash capital contribution to a subsidiary of $25 million, with a corresponding change to the intercompany balances payable. During 2019, the Parent 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 balances receivable/payable. These non-cash transactions have therefore been excluded from the Condensed Statements of Cash Flows—Parent Company Only. (4) During 2020, the Company recorded a $458 million loan payable maturing in 2030 with a direct Bermuda subsidiary in exchange for shares of an indirectly owned subsidiary, which were subsequently transferred to another subsidiary in exchange for cash. The cash proceeds were primarily invested in fixed maturities. |
SCHEDULE III - Supplementary In
SCHEDULE III - Supplementary Insurance Information | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract] | |
Supplementary Insurance Information | PartnerRe Ltd. Supplementary Insurance Information For the years ended December 31, 2020, 2019 and 2018 (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 2020 Non-life $ 543,416 $ 11,395,321 $ 2,257,441 $ — $ 5,054,529 $ N/A $ 4,016,704 $ 1,254,067 $ 87,163 $ 4,825,919 Life and Health 276,555 — 7,773 2,704,229 1,482,297 68,259 1,318,196 102,051 73,105 1,474,939 Corporate and Other — — — — — 292,409 — — 195,379 — Total $ 819,971 $ 11,395,321 $ 2,265,214 $ 2,704,229 $ 6,536,826 $ 360,668 $ 5,334,900 $ 1,356,118 $ 355,647 $ 6,300,858 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 (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. |
SCHEDULE IV - Reinsurance
SCHEDULE IV - Reinsurance | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |
Reinsurance | PartnerRe Ltd. Reinsurance For the years ended December 31, 2020, 2019 and 2018 (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 2020 Life reinsurance in force (1) $ — $ 18,764,660 $ 398,443,383 $ 379,678,723 105 % Premiums earned Life $ — $ 23,522 $ 1,483,298 $ 1,459,776 102 % Accident and health — — 22,521 22,521 100 % P&C (2) 269,691 516,672 5,301,510 5,054,529 105 % Total premiums $ 269,691 $ 540,194 $ 6,807,329 $ 6,536,826 104 % 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 % (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, 2020 | |
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, 2020, 2019 and 2018 (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 2020 $ 543,416 $ 11,395,321 $ 2,257,441 $ 5,054,529 $ 3,945,248 $ 71,456 $ 1,254,067 $ 3,232,604 $ 4,825,919 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 (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, 2020 | |
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. |
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, 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 of intangible assets 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. Non-monetary assets and liabilities denominated in foreign currency are not subsequently remeasured.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. |
Derivatives | The Company’s investment strategy allows for the use of certain 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, 2020 and 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 and included in Accounts payable, accrued expenses and other on the Consolidated Balance Sheets. |
Recent Accounting Pronouncements | Adopted during 2020 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, and the Company adopted the guidance effective January 1, 2020. The adoption did not have a material impact on the Company's Consolidated Financial Statements. 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, and the Company adopted this guidance effective January 1, 2020. As the guidance is disclosure-related only, it did not have a material impact on the Company's Consolidated Financial Statements. Refer to Note 3 for the relevant disclosures. In August 2018, the FASB issued updated guidance to improve the effectiveness of disclosures 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, 2019, and the Company adopted the guidance effective January 1, 2020. As the guidance is disclosure-related only, it did not have a material impact on the Company's Consolidated Financial Statements. Refer to Note 14 for the relevant 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 are not impacted by the adoption of this guidance. The guidance is effective for annual periods beginning after December 15, 2019. The Company adopted the guidance on January 1, 2020 and recorded an after-tax cumulative effect adjustment as a decrease to retained earnings of $14 million upon adoption. Refer to Notes 8(a) and 15(a) for further information regarding the impacts of adoption of this guidance. Not yet adopted 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, 2022. 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, 2023. This guidance could have a material impact on the measurement recognition of long duration contracts and will result in additional disclosures once adopted. |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Financial instruments measured at fair value and categorized between Levels 1, 2 and 3 | At December 31, 2020 and 2019, 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, 2020 Quoted prices in Significant Significant Total Fixed maturities U.S. government and government sponsored enterprises $ — $ 2,409,540 $ — $ 2,409,540 U.S. states, territories and municipalities — 17,491 120,477 137,968 Non-U.S. sovereign government, supranational and government related — 2,180,762 — 2,180,762 Corporate bonds — 3,325,324 16,530 3,341,854 Asset-backed securities — — 17,528 17,528 Residential mortgage-backed securities — 4,698,728 — 4,698,728 Fixed maturities $ — $ 12,631,845 $ 154,535 $ 12,786,380 Short-term investments $ — $ 416,350 $ — $ 416,350 Equities Energy $ — $ — $ 34,448 $ 34,448 Consumer cyclical 13,312 — 475 13,787 Consumer non-cyclical — — 6,886 6,886 Insurance — 117 4,000 4,117 Finance 3,508 — 138 3,646 Real estate — — 2,338 2,338 Industrials — — 39 39 Diversified 2 — 3,098 3,100 Mutual funds — — 1,428,080 1,428,080 Equities $ 16,822 $ 117 $ 1,479,502 $ 1,496,441 Other invested assets Derivative assets Foreign exchange forward contracts $ — $ 7,309 $ — $ 7,309 Total return swaps — — 797 797 Insurance-linked securities — — 3,074 3,074 Other — — 419 419 Other Corporate loans (1) — — 1,326,143 1,326,143 Notes and loans receivable and notes securitization — — 7,121 7,121 Private equities — — 756,731 756,731 Derivative liabilities Foreign exchange forward contracts — (10,698) — (10,698) Total return swaps — — (3,152) (3,152) Interest rate swaps — (17,509) — (17,509) Insurance-linked securities — — (2,000) (2,000) Other invested assets $ — $ (20,898) $ 2,089,133 $ 2,068,235 Total $ 16,822 $ 13,027,414 $ 3,723,170 $ 16,767,406 (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 $0.9 billion and $1.4 billion at December 31, 2020 and 2019, 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 $0.4 billion and $0.5 billion of other privately issued corporate loans at December 31, 2020 and 2019 respectively. December 31, 2019 Quoted prices in Significant Significant 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 — — 1,879,105 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 |
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, 2020 and 2019, were as follows (in thousands of U.S. dollars): For the year ended December 31, 2020 Balance at Realized and Purchases Settlements and (1) Net Balance Change in Fixed maturities U.S. states, territories and municipalities $ 143,427 $ (5,785) $ — $ (17,165) $ — $ 120,477 $ (5,780) Asset-backed securities 18,228 — — (700) — 17,528 — Corporate bonds 18,687 (128) — (2,029) — 16,530 (128) Fixed maturities $ 180,342 $ (5,913) $ — $ (19,894) $ — $ 154,535 $ (5,908) Equities Energy $ — $ 3,419 $ 31,128 $ (99) $ — $ 34,448 $ 3,320 Consumer noncyclical — (3,168) 5,560 — 4,494 6,886 278 Insurance 9,403 (5,403) — — — 4,000 4,000 Real estate 2,385 (416) 369 — — 2,338 (416) Consumer cyclical — — 475 — — 475 — Finance 126 12 — — — 138 12 Industrials — (491) 530 — — 39 (491) Diversified — (706) 3,804 — — 3,098 (706) Mutual funds 1,199,847 206,654 47,391 (25,812) — 1,428,080 198,911 Equities $ 1,211,761 $ 199,901 $ 89,257 $ (25,911) $ 4,494 $ 1,479,502 $ 204,908 Other invested assets Derivatives, net $ (2,657) $ (8,217) $ 5,008 $ 5,004 $ — $ (862) $ (5,085) Corporate loans 1,879,105 (10,980) 555,780 (1,097,762) — 1,326,143 31,980 Notes and loan receivables and notes securitization 3,085 124 4,448 (536) — 7,121 (979) Private equities 533,744 105,627 260,096 (140,074) (2,662) 756,731 93,903 Other invested assets $ 2,413,277 $ 86,554 $ 825,332 $ (1,233,368) $ (2,662) $ 2,089,133 $ 119,819 Total $ 3,805,380 $ 280,542 $ 914,589 $ (1,279,173) $ 1,832 $ 3,723,170 $ 318,819 (1) Settlements and sales of Equities and Other invested assets included sales of $26 million and $1.1 billion, respectively. Sales of Other invested assets of $1.1 billion included sales of corporate loans of $981 million and private equities of $137 million. For the year ended December 31, 2019 Balance at Realized and Purchases Settlements and (1) Net Balance Change in 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. |
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, 2020 and 2019 were as follows (fair value in thousands of U.S. dollars): December 31, 2020 Fair value Valuation techniques Unobservable inputs Range (Weighted average (1) ) Fixed maturities U.S. states, territories and municipalities $ 120,477 Discounted cash flow Credit spreads 2.5% – 283.2% (14.8%) Asset backed securities 17,528 Discounted cash flow Credit spreads 4.7% (4.7%) Other invested assets Total return swaps, net (2,355) Discounted cash flow Credit spreads 2.7% – 36.7% (29.8%) Insurance-linked securities – longevity swaps 3,074 Discounted cash flow Credit Spreads 1.8% (1.8%) Notes and loans receivables 6,446 Discounted cash flow Credit spread 17.5% (17.5%) Gross revenue/fair value 1.1 (1.1) Note securitization 675 Discounted cash flow Credit spreads 2.5% (2.5%) Private equity – other 30,067 Discounted cash flow Effective yield 3.9% (3.9%) Private equity – funds 188,533 Lag reported market value Net asset value, as reported 100.0% (100.0%) Market adjustments 15.7% – 16.0% (15.9%) December 31, 2019 Fair value Valuation techniques Unobservable inputs Range (Weighted average (1) ) 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%) (1) Unobservable inputs were weighted by the relative fair value of the instruments. |
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, 2020, 2019 and 2018 were as follows (in thousands of U.S. dollars): 2020 2019 2018 Fixed maturities and short-term investments $ 219,946 $ 190,343 $ (150,926) Equities 167,456 403,011 2,791 Other invested assets 63,669 50,857 (12,987) Funds held–directly managed (1) — — (6,484) Total $ 451,071 $ 644,211 $ (167,606) (1) The funds held–directly managed account was settled in 2018 upon commutation of the related Paris Re Reserve Agreement. See Note 7(a). |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020, 2019 and 2018 were as follows (in thousands of U.S. dollars): 2020 2019 2018 Net realized investment gains (losses) on fixed maturities and short-term investments $ 24,828 $ 243,508 $ (224,887) Net realized investment gains on equities 21,538 6,545 14,601 Net realized investment (losses) gains on other invested assets (30,436) 830 7,136 Net realized investment gains on funds held–directly managed (1) — — 1,200 Net realized investment gains (losses) $ 15,930 $ 250,883 $ (201,950) Change in net unrealized investment gains (losses) on fixed maturities and short-term investments $ 219,946 $ 190,343 $ (150,926) Change in net unrealized investment gains on equities 167,456 403,011 2,791 Change in net unrealized investment gains (losses) on other invested assets 58,452 44,441 (25,607) Change in net unrealized investment losses on funds held–directly managed (1) — — (6,484) Net other realized and unrealized investment (losses) gains (1,346) 969 (1,334) Change in net unrealized investment gains (losses) $ 444,508 $ 638,764 $ (181,560) Impairment loss on investments in real estate $ (6,119) $ (2,977) $ (6,122) Net realized and unrealized investment gains (losses) $ 454,319 $ 886,670 $ (389,632) (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, 2020, 2019 and 2018 were as follows (in thousands of U.S. dollars): 2020 2019 2018 Fixed maturities $ 290,259 $ 379,939 $ 378,726 Short-term investments and cash and cash equivalents 12,000 26,981 13,279 Other invested assets 89,129 68,879 26,234 Equities, funds held and other (1) 20,477 12,221 21,964 Funds held–directly managed (2) — — 4,674 Investment expenses (51,197) (39,482) (28,956) Net investment income $ 360,668 $ 448,538 $ 415,921 (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 6.5%, 0.1% to 5.1% and 0.1% to 7.4% for the years ended December 31, 2020, 2019 and 2018, 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. |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019 were as follows (in thousands of U.S. dollars): Asset Liability Net derivatives December 31, 2020 Fair value Net notional Derivatives not designated as hedges Foreign exchange forward contracts $ 7,309 $ (10,698) $ (3,389) $ 3,843,436 Insurance-linked securities (1) 3,074 (2,000) 1,074 18,850 Total return swaps 797 (3,152) (2,355) 31,580 Interest rate swaps (2) — (17,509) (17,509) — Other 419 — 419 — Total derivatives not designated as hedges $ 11,599 $ (33,359) $ (21,760) Asset Liability Net derivatives December 31, 2019 Fair value Net notional 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) (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 includes 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, 2020, 2019 and 2018 were as follows (in thousands of U.S. dollars): 2020 2019 2018 Foreign exchange forward contracts $ (32,611) $ (41,171) $ 45,143 Total included in Net foreign exchange (losses) gains $ (32,611) $ (41,171) $ 45,143 Futures contracts $ — $ (9,952) $ 11,043 Insurance-linked securities (2,341) (4,381) 6,134 Total return swaps (845) — — Interest rate swaps (5,131) (5,230) 2,332 TBAs (510) — (13,614) Other 1,376 463 — Total included in Net realized and unrealized investment gains (losses) $ (7,451) $ (19,100) $ 5,895 Total derivatives not designated as hedges $ (40,062) $ (60,271) $ 51,038 |
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, 2020 and 2019 were as follows (in thousands of U.S. dollars): Gross Net amounts of Gross amounts not offset December 31, 2020 Gross amounts recognized (1) Financial Cash collateral Net amount Total derivative assets $ 11,599 $ — $ 11,599 $ — $ (26,853) $ (15,254) Total derivative liabilities $ (33,359) $ — $ (33,359) $ — $ 11,503 $ (21,856) December 31, 2019 Total derivative assets $ 8,805 $ — $ 8,805 $ — $ (19,537) $ (10,732) Total derivative liabilities $ (24,854) $ — $ (24,854) $ — $ 2,977 $ (21,877) (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, 2020 | |
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, 2020, 2019 and 2018 were as follows (in thousands of U.S. dollars): Goodwill Definite- Indefinite- Total Balance at December 31, 2017 $ 456,380 $ 150,679 $ 9,555 $ 160,234 Acquired during the year (1) — 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 Foreign currency translation — 119 — 119 Intangible assets amortization n/a (9,988) n/a (9,988) Balance at December 31, 2020 $ 456,380 $ 98,114 $ 9,555 $ 107,669 n/a: Not applicable |
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, 2020 and 2019 were as follows (in thousands of U.S. dollars): December 31, 2020 December 31, 2019 Gross carrying Accumulated Net carrying value Gross carrying Accumulated Net carrying value Definite-lived intangible assets: Renewal rights $ 48,163 $ (38,205) $ 9,958 $ 48,163 $ (35,238) $ 12,925 Customer relationships 67,738 (47,867) 19,871 67,619 (42,419) 25,200 Life VOBA 75,583 (7,298) 68,285 75,583 (5,725) 69,858 Total definite-lived intangible assets $ 191,484 $ (93,370) $ 98,114 $ 191,365 $ (83,382) $ 107,983 Indefinite-lived intangible assets: Insurance licenses 9,555 n/a 9,555 9,555 n/a 9,555 Total intangible assets $ 201,039 $ (93,370) $ 107,669 $ 200,920 $ (83,382) $ 117,538 n/a: Not applicable |
Allocation of goodwill by segment | The allocation of the goodwill to the Company’s segments at December 31, 2020 and 2019 was as follows (in thousands of U.S. dollars): 2020 2019 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- 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 2025 2,070 4,367 6,437 Thereafter 57,683 1,089 58,772 Total $ 68,285 $ 29,829 $ 98,114 |
Non-life and Life and Health _2
Non-life and Life and Health Reserves (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019 was as follows (in thousands of U.S. dollars): December 31, 2020 December 31, 2019 Case reserves $ 4,646,633 $ 4,203,052 ACRs 171,381 158,220 IBNR reserves 6,577,307 6,002,111 Non-life reserves $ 11,395,321 $ 10,363,383 |
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, 2020, 2019 and 2018 was as follows (in thousands of U.S. dollars): 2020 2019 2018 Gross liability at beginning of year $ 10,363,383 $ 9,895,376 $ 10,102,172 Reinsurance recoverable at beginning of year 754,795 850,946 719,998 Net liability at beginning of year 9,608,588 9,044,430 9,382,174 Net incurred losses related to: (1)(2) Current year 3,945,248 3,716,988 3,417,366 Prior years 71,456 (56,848) (248,719) 4,016,704 3,660,140 3,168,647 Net paid losses related to: Current year (459,718) (439,285) (336,584) Prior years (2,772,886) (2,651,385) (2,585,403) (3,232,604) (3,090,670) (2,921,987) Retroactive reinsurance recoverable (2) — (81,013) — Change in Paris Re reserve agreement (3) — — (397,493) Effects of foreign exchange rate changes and other 220,303 75,701 (186,911) Net liability at end of year $ 10,612,991 $ 9,608,588 $ 9,044,430 Reinsurance recoverable at end of year 782,330 754,795 850,946 Gross liability at end of year $ 11,395,321 $ 10,363,383 $ 9,895,376 (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 and $9 million at December 31, 2019 and 2018, respectively. There were no incurred losses or non-life reserves allocated to Corporate and Other during 2020. (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 reinsurance recoverable of $81 million and a related deferred gain of $14 million, which was included in Accounts payable, accrued expenses and other in the Consolidated Balance Sheet at December 31, 2019. In the fourth quarter of 2020, the Company completed a business transfer to extinguish the remaining$70 million of non-life reserves and derecognized the $70 million of related reinsurance recoverables. As a result, during 2020, the $14 million deferred gain was recognized within Losses and loss expenses in the Consolidated Statement of Operations. At settlement, $64 million of invested assets were transferred, and there was a corresponding decrease in Other reinsurance balances payable. |
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, 2020, 2019 and 2018 was as follows (in thousands of U.S. dollars): 2020 2019 2018 Gross liability at beginning of period $ 2,417,044 $ 2,198,080 $ 2,098,759 Reinsurance recoverable at beginning of period 16,183 11,829 9,287 Net liability at beginning of period $ 2,400,861 $ 2,186,251 $ 2,089,472 Net incurred losses (1) 1,318,196 1,263,016 1,024,608 Net losses paid (1,230,383) (1,071,487) (818,916) Effects of foreign exchange rate changes and other 179,893 23,081 (108,913) Net liability at end of period $ 2,668,567 $ 2,400,861 $ 2,186,251 Reinsurance recoverable at end of period 35,662 16,183 11,829 Gross liability at end of period $ 2,704,229 $ 2,417,044 $ 2,198,080 (1) During 2020, certain life and health treaties in the European region were recaptured, resulting in total gains upon recapture of $28 million, recorded as a reduction to net incurred losses. |
Components of losses and loss expenses by segment | Losses and loss expenses in the Consolidated Statements of Operations for the years ended December 31, 2020, 2019 and 2018 were comprised as follows (in thousands of U.S. dollars): 2020 2019 2018 Non-life (1) $ 4,016,704 $ 3,660,140 $ 3,168,647 Life and Health 1,318,196 1,263,016 1,024,608 Losses and loss expenses $ 5,334,900 $ 4,923,156 $ 4,193,255 |
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 2019 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, 2020 Accident year 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total of IBNR plus expected development on reported claims 2012 $ 2,639,688 $ 2,448,003 $ 2,290,439 $ 2,185,285 $ 2,153,160 $ 2,184,735 $ 2,161,359 $ 2,128,131 $ 2,113,301 $ 56,549 2013 2,878,960 2,701,251 2,524,503 2,471,199 2,438,378 2,410,942 2,407,964 2,389,223 93,466 2014 2,832,489 2,613,300 2,502,796 2,471,459 2,484,045 2,476,974 2,455,964 127,048 2015 2,884,189 2,593,622 2,488,546 2,504,538 2,505,549 2,481,206 171,655 2016 2,913,005 2,679,891 2,620,822 2,635,472 2,644,764 214,995 2017 2,955,964 2,937,200 2,894,231 2,881,721 336,779 2018 3,025,845 3,157,015 3,158,785 661,933 2019 3,438,573 3,666,589 1,322,179 2020 3,964,240 2,790,092 Total $ 25,755,793 $ 5,774,696 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 2020 2012 $ 282,336 $ 1,051,844 $ 1,435,654 $ 1,602,522 $ 1,706,226 $ 1,797,329 $ 1,846,856 $ 1,903,538 $ 1,924,585 2013 243,125 1,295,766 1,647,638 1,849,033 1,979,137 2,072,228 2,138,888 2,173,004 2014 302,881 1,311,827 1,616,215 1,825,493 1,967,077 2,076,264 2,154,230 2015 302,359 1,216,114 1,615,865 1,837,345 2,007,020 2,109,694 2016 322,009 1,363,347 1,721,704 1,997,281 2,125,590 2017 385,968 1,501,428 1,952,096 2,240,013 2018 258,601 1,430,969 2,010,369 2019 376,937 1,578,528 2020 445,338 Total $ 16,761,351 Net reserves for Accident Years and exposures included in the triangles $ 8,994,442 All outstanding liabilities before Accident Year 2012, net of reinsurance 1,242,482 Total outstanding liabilities for unpaid claims $ 10,236,924 AVERAGE ANNUAL PERCENTAGE PAYOUT OF INCURRED CLAIMS BY AGE, NET OF REINSURANCE - NON-LIFE Years 1 2 3 4 5 6 7 8 9 Non-life 11% 38% 16% 9% 6% 4% 3% 2% 1% NET INCURRED LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - PROPERTY For the year ended December 31, December 31, 2020 Accident year 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total of IBNR plus expected development on reported claims 2012 $ 669,251 $ 665,457 $ 585,528 $ 569,161 $ 553,571 $ 553,162 $ 541,206 $ 530,578 $ 529,800 $ 1,389 2013 688,562 583,828 550,859 535,390 531,092 520,552 518,273 517,995 9 2014 517,561 471,863 450,396 448,016 444,502 442,768 441,020 958 2015 591,817 548,716 523,677 516,138 510,688 506,222 3,806 2016 726,247 684,070 637,316 617,028 613,810 (1,802) 2017 1,016,229 1,066,376 982,359 951,418 6,426 2018 854,166 899,055 886,662 82,052 2019 797,247 848,801 90,827 2020 1,183,875 656,924 Total $ 6,479,603 $ 840,589 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 2020 2012 $ 100,426 $ 358,758 $ 452,456 $ 486,598 $ 498,174 $ 507,557 $ 510,674 $ 518,029 $ 517,970 2013 90,133 341,662 442,974 477,517 495,869 498,952 503,187 505,337 2014 91,891 323,437 388,024 414,395 424,068 429,160 432,996 2015 96,019 354,874 443,500 472,059 483,099 488,049 2016 137,065 459,492 541,070 579,666 592,826 2017 223,598 729,810 839,658 891,247 2018 77,248 573,855 715,182 2019 69,729 479,960 2020 108,876 Total $ 4,732,443 Net reserves for Accident Years and exposures included in the triangles $ 1,747,160 All outstanding liabilities before Accident Year 2012, net of reinsurance 96,511 Total outstanding liabilities for unpaid claims $ 1,843,671 AVERAGE ANNUAL PERCENTAGE PAYOUT OF INCURRED CLAIMS BY AGE, NET OF REINSURANCE - PROPERTY Years 1 2 3 4 5 6 7 8 9 Property 15% 52% 15% 6% 2% 1% 1% 1% —% NET INCURRED LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - CASUALTY For the year ended December 31, December 31, 2020 Accident year 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total of IBNR plus expected development on reported claims 2012 $ 687,962 $ 673,952 $ 645,961 $ 606,043 $ 588,811 $ 597,170 $ 592,669 $ 577,494 $ 569,594 $ 41,729 2013 800,809 796,525 747,617 729,592 725,500 721,980 719,484 705,107 77,368 2014 901,424 877,191 857,330 863,051 879,547 873,227 857,663 103,508 2015 899,355 840,261 816,250 858,788 861,603 855,377 147,031 2016 849,717 801,939 822,539 850,527 856,372 174,156 2017 761,089 729,564 757,962 767,640 216,810 2018 941,900 957,888 975,851 418,539 2019 1,214,328 1,223,746 745,117 2020 1,278,149 1,073,385 Total $ 8,089,499 $ 2,997,643 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 2020 2012 $ 51,015 $ 134,416 $ 203,970 $ 276,902 $ 333,006 $ 391,406 $ 422,362 $ 449,854 $ 467,395 2013 50,172 158,781 266,697 348,233 418,556 480,167 521,355 547,056 2014 71,742 209,570 313,465 413,742 501,473 573,308 637,432 2015 67,091 187,339 300,083 398,324 501,468 575,490 2016 33,049 163,317 263,687 380,668 468,089 2017 61,811 180,400 292,946 399,268 2018 62,403 238,134 375,961 2019 89,228 294,178 2020 97,584 Total $ 3,862,453 Net reserves for Accident Years and exposures included in the triangles $ 4,227,046 All outstanding liabilities before Accident Year 2012, net of reinsurance 1,059,637 Total outstanding liabilities for unpaid claims $ 5,286,683 AVERAGE ANNUAL PERCENTAGE PAYOUT OF INCURRED CLAIMS BY AGE, NET OF REINSURANCE - CASUALTY Years 1 2 3 4 5 6 7 8 9 Casualty 7% 16% 13% 12% 11% 9% 6% 4% 3% NET INCURRED LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - SPECIALTY For the year ended December 31, December 31, 2020 Accident year 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total of IBNR plus expected development on reported claims 2012 $ 1,282,475 $ 1,108,594 $ 1,058,950 $ 1,010,081 $ 1,010,778 $ 1,034,403 $ 1,027,484 $ 1,020,059 $ 1,013,907 $ 13,431 2013 1,389,589 1,320,898 1,226,027 1,206,217 1,181,786 1,168,410 1,170,207 1,166,121 16,089 2014 1,413,504 1,264,246 1,195,070 1,160,392 1,159,996 1,160,979 1,157,281 22,582 2015 1,393,017 1,204,645 1,148,619 1,129,612 1,133,258 1,119,607 20,818 2016 1,337,041 1,193,882 1,160,967 1,167,917 1,174,582 42,641 2017 1,178,646 1,141,260 1,153,910 1,162,663 113,543 2018 1,229,779 1,300,072 1,296,272 161,342 2019 1,426,998 1,594,042 486,235 2020 1,502,216 1,059,783 Total $ 11,186,691 $ 1,936,464 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 2020 2012 $ 130,895 $ 558,670 $ 779,228 $ 839,022 $ 875,046 $ 898,366 $ 913,820 $ 935,655 $ 939,220 2013 102,820 795,323 937,967 1,023,283 1,064,712 1,093,109 1,114,346 1,120,611 2014 139,248 778,820 914,726 997,356 1,041,536 1,073,796 1,083,802 2015 139,249 673,901 872,282 966,962 1,022,453 1,046,155 2016 151,895 740,538 916,947 1,036,947 1,064,675 2017 100,559 591,218 819,492 949,498 2018 118,950 618,980 919,226 2019 217,980 804,390 2020 238,878 Total $ 8,166,455 Net reserves for Accident Years and exposures included in the triangles $ 3,020,236 All outstanding liabilities before Accident Year 2012, net of reinsurance 86,334 Total outstanding liabilities for unpaid claims $ 3,106,570 AVERAGE ANNUAL PERCENTAGE PAYOUT OF INCURRED CLAIMS BY AGE, NET OF REINSURANCE - SPECIALTY Years 1 2 3 4 5 6 7 8 9 Specialty 12% 46% 17% 8% 4% 2% 1% 1% —% |
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, 2020 was as follows (in thousands of U.S. dollars): December 31, 2020 Total outstanding liability for unpaid claims Property $ 1,843,671 Casualty 5,286,683 Specialty 3,106,570 Total outstanding liabilities for unpaid claims $ 10,236,924 Unallocated loss expenses $ 186,523 U.S. health net reserves (1) 188,879 Other 665 Total other liabilities $ 376,067 Net liability at end of year $ 10,612,991 Reinsurance recoverable on paid and unpaid claims Property $ 327,935 Casualty 166,494 Specialty 287,901 Reinsurance recoverable at end of year $ 782,330 Gross liability at end of year $ 11,395,321 (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, 2020 | |
Reinsurance Disclosures [Abstract] | |
Ceded reinsurance | Assumed, ceded and net amounts for the years ended December 31, 2020, 2019 and 2018 were as follows (in thousands of U.S. dollars): Premiums Premiums Losses and Loss 2020 Non-life $ 5,376,703 $ 5,571,201 $ 4,358,975 Life and Health 1,499,222 1,505,819 1,344,117 Assumed $ 6,875,925 $ 7,077,020 $ 5,703,092 Non-life $ 550,784 $ 516,672 $ 342,271 Life and Health 24,283 23,522 25,921 Ceded $ 575,067 $ 540,194 $ 368,192 Non-life $ 4,825,919 $ 5,054,529 $ 4,016,704 Life and Health 1,474,939 1,482,297 1,318,196 Net $ 6,300,858 $ 6,536,826 $ 5,334,900 Premiums Premiums Losses and Loss 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 (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, 2020 | |
Debt Disclosure [Abstract] | |
Summary of debt outstanding | The debt outstanding related to senior notes and junior subordinated notes and the carrying value recorded in the Consolidated Balance Sheets at December 31, 2020 and 2019 was comprised as follows (in thousands): December 31, 2020 December 31, 2019 Issuer Related Maturity Date Commitment Carrying Value Fair Value Carrying Value Fair Value Debt related to senior notes PartnerRe Finance B LLC Due 2029 $ 500,000 $ 496,168 $ 586,057 $ 495,614 $ 535,309 PartnerRe Ireland Finance DAC Due 2026 € 750,000 914,223 985,352 832,351 871,088 $ 1,410,391 $ 1,571,409 $ 1,327,965 $ 1,406,397 Debt related to junior subordinated notes PartnerRe Finance B LLC Due 2050 $ 500,000 $ 494,251 $ 523,685 $ — $ — PartnerRe Finance II Inc. Due 2066 $ 62,484 70,089 61,013 70,089 55,866 $ 564,340 $ 584,698 $ 70,089 $ 55,866 Debt $ 1,974,731 $ 2,156,107 $ 1,398,054 $ 1,462,263 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Preferred shares | At December 31, 2020, 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 G Series H Series I Total Date of issuance May 2016 May 2016 May 2016 Number of preferred shares outstanding 6,415,264 11,753,798 7,320,574 25,489,636 Annual dividend rate 6.5 % 7.25 % 5.875 % Underwriting discounts and commissions (1) $ 5.4 $ 9.5 $ 6.4 $ 21.3 Aggregate liquidation value, at $25 per share $ 160.4 $ 293.8 $ 183.0 $ 637.2 |
Dividend Restrictions and Sta_2
Dividend Restrictions and Statutory Requirements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020, 2019 and 2018 was as follows (in millions of U.S. dollars): 2020 2019 2018 PartnerRe Bermuda $ (45) $ 863 $ 138 PartnerRe Europe $ 237 $ 188 $ 1 PartnerRe U.S. $ 28 $ (106) $ (197) PartnerRe Asia $ (6) $ 17 $ (40) The required and actual statutory capital and surplus of PartnerRe Bermuda, PartnerRe Europe, PartnerRe U.S. and PartnerRe Asia at December 31, 2020 and 2019 was as follows (in millions of U.S. dollars): PartnerRe Bermuda (1) PartnerRe Europe PartnerRe U.S. PartnerRe Asia 2020 2019 2020 2019 2020 2019 2020 2019 Required statutory capital and surplus $ 2,386 $ 2,249 $ 1,618 $ 1,535 $ 1,080 $ 911 $ 47 $ 53 Actual statutory capital and surplus $ 5,072 $ 4,903 $ 2,417 $ 2,218 $ 1,169 $ 1,080 $ 249 $ 211 (1) Required statutory capital and surplus is calculated at the Target Capital Level |
Taxation (Tables)
Taxation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Components of income tax expense | Income tax (benefit) expense for the years ended December 31, 2020, 2019 and 2018 was as follows (in thousands of U.S. dollars): 2020 2019 2018 Current income tax (benefit) expense U.S. $ (97,155) $ 12,899 $ (6,872) Non U.S. 44,764 64,069 33,887 Total current income tax (benefit) expense $ (52,391) $ 76,968 $ 27,015 Deferred income tax expense (benefit) U.S. $ 60,932 $ (25,850) $ (40,318) Non U.S. (25,560) 4,268 3,256 Total deferred income tax expense (benefit) $ 35,372 $ (21,582) $ (37,062) Unrecognized tax expense (benefit) U.S. $ — $ — $ — Non U.S. 3,928 (2,850) 1,113 Total unrecognized tax expense (benefit) $ 3,928 $ (2,850) $ 1,113 Total income tax (benefit) expense U.S. $ (36,223) $ (12,951) $ (47,190) Non U.S. 23,132 65,487 38,256 Total income tax (benefit) expense $ (13,091) $ 52,536 $ (8,934) |
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, 2020, 2019 and 2018 (in thousands of U.S. dollars): 2020 2019 2018 Domestic (Bermuda) $ 3,894 $ 715,912 $ 33,759 Foreign 237,204 273,372 (128,687) Income (loss) before taxes $ 241,098 $ 989,284 $ (94,928) |
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 15.5 6.5 14.3 Impact of foreign exchange gains or losses (8.1) (0.5) (4.2) Unrecognized tax expense (benefit) 1.6 0.2 (1.2) Tax-exempt income and expenses not deductible (1.4) (0.6) 7.3 Foreign branch tax (3.3) (1.2) (4.1) Valuation allowance 3.4 0.7 (12.3) Outside basis difference in subsidiary — — 6.7 Other (13.1) 0.2 2.9 Actual tax rate (5.4) % 5.3 % 9.4 % |
Components of net tax assets and liabilities | The components of net tax assets and liabilities at December 31, 2020 and 2019 were as follows (in thousands of U.S. dollars): December 31, 2020 December 31, 2019 Net tax assets $ 182,077 $ 179,813 Net tax liabilities (131,621) (135,966) Net tax assets $ 50,456 $ 43,847 December 31, 2020 December 31, 2019 Net current tax assets $ 112,992 $ 65,000 Net deferred tax liabilities (52,263) (15,464) Net unrecognized tax benefit (10,273) (5,689) Net tax assets $ 50,456 $ 43,847 |
Significant components of net deferred tax assets and liabilities | Significant components of the net deferred tax assets and liabilities at December 31, 2020 and 2019 were as follows (in thousands of U.S. dollars): December 31, 2020 December 31, 2019 Deferred tax assets Discounting of loss reserves and adjustment to life policy reserves $ 11,741 $ 15,924 Foreign tax credit carryforwards 198,263 173,936 Tax loss carryforwards 57,485 80,523 Unearned premiums 34,760 37,226 Unrealized appreciation and timing differences on foreign exchange revaluations 20,493 — Other deferred tax assets 42,754 50,738 $ 365,496 $ 358,347 Valuation allowance (211,167) (186,907) Deferred tax assets $ 154,329 $ 171,440 Deferred tax liabilities Deferred acquisition costs $ 67,850 $ 64,140 Goodwill and other intangibles 58,224 61,773 Equalization reserves 7,366 6,416 Unrealized appreciation and timing differences on investments 46,389 26,752 Unrealized appreciation and timing differences on foreign exchange revaluations — 18,830 Other deferred tax liabilities 26,763 8,993 Deferred tax liabilities $ 206,592 $ 186,904 Net deferred tax liabilities $ (52,263) $ (15,464) |
Total amount of unrecognized tax benefits | The total amount of unrecognized tax benefits for the years ended December 31, 2020, 2019 and 2018 was as follows (in thousands of U.S. dollars): 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 $ 4,185 $ 1,415 $ — $ — $ 480 $ 6,080 Interest and penalties recognized on the above 1,504 2,455 — — 234 4,193 Total unrecognized tax benefits, including interest and penalties $ 5,689 $ 3,870 $ — $ — $ 714 $ 10,273 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 $ 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, 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 $ 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 |
Share-Based Incentives (Tables)
Share-Based Incentives (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 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 Granted 167,202 — 167,202 Purchased — 38,838 38,838 Repurchased (129,583) (83,561) (213,144) Expiration of restricted period (27,785) 27,785 — Outstanding December 31, 2020 189,166 85,498 274,664 |
Retirement Benefit Arrangemen_2
Retirement Benefit Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Funded status | At December 31, 2020 and 2019, the funded status of the Zurich Plan was as follows (in thousands of U.S. dollars): 2020 2019 Underfunded pension obligation at beginning of year $ 44,442 $ 37,105 Change in pension obligation Service cost $ 10,961 $ 8,619 Interest cost 520 1,584 Plan participants’ contributions 4,056 3,604 Actuarial loss 12,023 18,286 Plan amendments — 3,551 Benefits paid (3,910) (2,352) Foreign currency adjustments 20,550 2,828 Change in pension obligation $ 44,200 $ 36,120 Change in fair value of plan assets Actual return on plan assets 2,820 18,140 Employer contributions 7,941 7,193 Plan participants’ contributions 4,056 3,604 Benefits paid (3,910) (2,352) Foreign currency adjustments 15,685 2,198 Change in fair value of plan assets $ 26,592 $ 28,783 Underfunded pension obligation at end of year $ 62,050 $ 44,442 Additional information: Projected benefit obligation at end of year (1) $ 242,112 $ 197,912 Fair value of plan assets at end of year $ 180,062 $ 153,470 Underfunded pension obligation at end of year $ 62,050 $ 44,442 Accumulated pension obligation at end of year (2) $ 231,419 $ 189,089 (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, 2020, 2019 and 2018 were as follows: 2020 2019 2018 Pension Net periodic Pension Net periodic Pension Net periodic Discount rate 0.10 % 0.25 % 0.25 % 1.00 % 1.00 % 0.75 % Interest crediting rate 1.00 % 1.00 % 1.00 % 1.00 % 1.00 % 1.00 % Expected long-term return on plan assets — 3.50 % — 3.50 % — 0.75 % Rate of compensation increase 2.00 % 2.00 % 2.00 % 2.00 % 2.25 % 2.25 % |
Expected future benefit payments | At December 31, 2020, estimated employer contributions to be paid in 2021 related to the Zurich Plan were $8 million and future benefit payments were estimated to be paid as follows (in thousands of U.S. dollars): Year Amount 2021 $ 8,040 2022 $ 7,478 2023 $ 8,351 2024 $ 8,727 2025 $ 9,289 2026 to 2029 $ 52,579 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019 (in thousands of U.S. dollars): 2020 2019 Operating lease costs $ 16,403 $ 15,893 Variable lease costs 724 2,598 Sublease income (1,194) (1,515) Total lease costs $ 15,933 $ 16,976 Other information: Operating lease right-of-use assets (1) $ 64,746 $ 75,774 Operating lease liabilities (2) $ 75,463 $ 85,777 Operating lease right-of-use assets obtained in exchange for lease obligations, non-cash (3) $ 852 $ 86,157 Operating cash outflows from operating leases $ 16,495 $ 11,305 Weighted-average remaining lease term on operating leases (4) 9.1 Yrs 9.2 Yrs Weighted-average discount rate on operating leases (5) 2.7 % 2.6 % (1) Included in Other assets in the Consolidated Balance Sheets (2) Included in Accounts payable, accrued expenses and other (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, 2020 (in thousands of U.S. dollars): Year Expected cash flows 2021 $ 13,211 2022 10,900 2023 10,264 2024 9,179 2025 8,621 2026 to 2038 32,905 Discount (9,617) Total discounted operating lease liabilities $ 75,463 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment reporting table | The segment results for the years ended December 31, 2020, 2019 and 2018 are presented below (in millions of U.S. dollars, except ratios). Segment Information For the year ended December 31, 2020 P&C Specialty Total Life Corporate Total Gross premiums written $ 3,442 $ 1,935 $ 5,377 $ 1,499 $ — $ 6,876 Net premiums written $ 3,044 $ 1,782 $ 4,826 $ 1,475 $ — $ 6,301 Decrease in unearned premiums 119 110 229 7 — 236 Net premiums earned $ 3,163 $ 1,892 $ 5,055 $ 1,482 $ — $ 6,537 Losses and loss expenses (2,389) (1,628) (4,017) (1,318) — (5,335) Acquisition costs (784) (470) (1,254) (102) — (1,356) Technical result $ (10) $ (206) $ (216) $ 62 $ — $ (154) Other (loss) income (1) — (1) 13 1 13 Other expenses (61) (26) (87) (73) (196) (356) Underwriting result $ (72) $ (232) $ (304) $ 2 n/a $ (497) Net investment income 68 293 361 Allocated underwriting result $ 70 n/a n/a Net realized and unrealized investment gains 454 454 Interest expense (39) (39) Amortization of intangible assets (10) (10) Net foreign exchange losses (52) (52) Income tax benefit 13 13 Interest in earnings of equity method investments 24 24 Net income n/a $ 254 Loss ratio (1) 75.5 % 86.0 % 79.5 % Acquisition ratio (2) 24.8 24.8 24.8 Technical ratio (3) 100.3 % 110.8 % 104.3 % Other expense ratio (4) 1.9 1.4 1.7 Combined ratio (5) 102.2 % 112.2 % 106.0 % (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, 2019 P&C Specialty Total Life Corporate 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 70.6 % 75.3 % 72.4 % Acquisition ratio 25.5 26.3 25.8 Technical ratio 96.1 % 101.6 % 98.2 % Other expense ratio 2.6 1.4 2.1 Combined ratio 98.7 % 103.0 % 100.3 % Segment Information For the year ended December 31, 2018 P&C Specialty Total Life Corporate 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 geographic distribution of premiums table | The following table provides the geographic distribution of gross premiums written by region for the years ended December 31, 2020, 2019 and 2018 (in millions of U.S. dollars, except percentages): 2020 2019 2018 North America $ 3,794 55 % $ 3,752 51 % $ 2,929 47 % Europe 1,921 28 2,155 30 2,152 34 Asia, Australia and New Zealand 806 12 835 11 699 11 Latin America and the Caribbean 220 3 264 4 260 4 Middle East, Africa, Russia and the Commonwealth of Independent States (CIS) 135 2 279 4 260 4 Total $ 6,876 100 % $ 7,285 100 % $ 6,300 100 % |
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, 2020, 2019 and 2018 (in millions of U.S. dollars, except percentages): 2020 2019 2018 P&C Casualty $ 1,430 $ 1,394 $ 1,052 Property 641 644 615 Catastrophe 545 537 478 U.S. health 379 391 405 Multiline and other 289 213 157 Motor 158 400 308 Total P&C $ 3,442 $ 3,579 $ 3,015 Specialty Financial risks $ 568 $ 587 $ 549 Agriculture 468 483 506 Aviation and space 219 286 228 Energy 192 183 79 Property 173 151 112 Multiline and other 152 276 307 Marine 142 132 103 Engineering 17 102 124 Casualty 4 13 42 Total Specialty $ 1,935 $ 2,213 $ 2,050 Life and Health $ 1,499 $ 1,493 $ 1,235 Total $ 6,876 $ 7,285 $ 6,300 |
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, 2020, 2019 and 2018, as follows: 2020 2019 2018 Marsh (including Guy Carpenter) 30 % 28 % 22 % Aon Group (including the Benfield Group) 21 % 22 % 22 % The following table summarizes the percentage of gross premiums written through these two brokers by segment for the years ended December 31, 2020, 2019 and 2018: 2020 2019 2018 P&C 64 % 60 % 53 % Specialty 64 % 62 % 52 % Life and Health 6 % 8 % 11 % |
Organization (Details)
Organization (Details) - shares | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
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 | 274,664 | 281,768 | 345,644 |
Significant Accounting Polici_3
Significant Accounting Policies - Narrative (Details) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020USD ($)Segment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Accounting Policies [Abstract] | ||||||
Number of segments | 3 | 3 | ||||
Requisite service period, Class B shares | 3 years | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cumulative effect adjustment at beginning of period | $ 7,326,997 | $ 7,326,997 | $ 7,326,997 | $ 7,270,169 | $ 6,516,514 | |
Retained earnings | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cumulative effect adjustment at beginning of period | $ 5,062,948 | $ 5,062,948 | $ 5,062,948 | 4,921,395 | 4,230,449 | $ 4,410,694 |
Retained earnings | Cumulative effect of adoption of accounting guidance | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cumulative effect adjustment at beginning of period | $ (14,305) | $ 0 | $ 0 |
Fair Value - Hierarchy table (D
Fair Value - Hierarchy table (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, at fair value | $ 12,786,380 | $ 10,680,714 | |
Short-term investments | 416,350 | 1,003,421 | |
Equities | 1,496,441 | 1,295,164 | |
Other invested assets | 2,068,235 | 2,399,885 | |
Total | 16,767,406 | 15,379,184 | |
Derivative assets | Foreign exchange forward contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other invested assets | 7,309 | 4,363 | |
Derivative assets | Total return swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other invested assets | 797 | 1,448 | |
Derivative assets | Insurance-linked securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other invested assets | 3,074 | 2,728 | |
Derivative assets | Foreign currency option contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other invested assets | 266 | ||
Derivative assets | Other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other invested assets | 419 | ||
Corporate loans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other invested assets | 1,326,143 | [1] | 1,879,105 |
Notes and loan receivables and notes securitization | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other invested assets | 7,121 | 3,085 | |
Private equities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other invested assets | 756,731 | 533,744 | |
Derivative liabilities | Foreign exchange forward contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other invested assets | (10,698) | (5,643) | |
Derivative liabilities | Total return swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other invested assets | (3,152) | (2,962) | |
Derivative liabilities | Insurance-linked securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other invested assets | (2,000) | (3,871) | |
Derivative liabilities | Interest rate swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other invested assets | (17,509) | (12,378) | |
Energy | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equities | 34,448 | ||
Consumer cyclical | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equities | 13,787 | 20,117 | |
Consumer noncyclical | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equities | 6,886 | 13,126 | |
Insurance | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equities | 4,117 | 14,960 | |
Finance | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equities | 3,646 | 31,443 | |
Real estate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equities | 2,338 | 2,385 | |
Industrials | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equities | 39 | 4,042 | |
Diversified | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equities | 3,100 | ||
Mutual funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equities | 1,428,080 | 1,199,847 | |
Basic Materials | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equities | 5,295 | ||
Technology | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equities | 3,027 | ||
Communications | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equities | 922 | ||
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 | 2,409,540 | 1,421,716 | |
U.S. states, territories and municipalities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, at fair value | 137,968 | 157,234 | |
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 | 2,180,762 | 3,255,154 | |
Corporate bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, at fair value | 3,341,854 | 2,662,089 | |
Asset-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, at fair value | 17,528 | 18,228 | |
Residential mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, at fair value | 4,698,728 | 3,166,290 | |
Other mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, at fair value | 3 | ||
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 | 0 | 0 | |
Equities | 16,822 | 83,128 | |
Other invested assets | 0 | 0 | |
Total | 16,822 | 83,128 | |
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 | 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) | Derivative assets | Other | |||
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) | Energy | |||
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) | Consumer cyclical | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equities | 13,312 | 20,117 | |
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 | 0 | 13,126 | |
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 | 0 | 5,284 | |
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 | 3,508 | 31,315 | |
Quoted prices in active markets for identical assets (Level 1) | Real estate | |||
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) | Industrials | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equities | 0 | 4,042 | |
Quoted prices in active markets for identical assets (Level 1) | Diversified | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equities | 2 | ||
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) | 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) | Technology | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equities | 3,027 | ||
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 | ||
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 | ||
Significant other observable inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, at fair value | 12,631,845 | 10,500,372 | |
Short-term investments | 416,350 | 1,003,421 | |
Equities | 117 | 275 | |
Other invested assets | (20,898) | (13,392) | |
Total | 13,027,414 | 11,490,676 | |
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 | 7,309 | 4,363 | |
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 | 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) | Derivative assets | Other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other invested assets | 0 | ||
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 | (10,698) | (5,643) | |
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 | (17,509) | (12,378) | |
Significant other observable inputs (Level 2) | Energy | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equities | 0 | ||
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) | Consumer noncyclical | |||
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 | 117 | 273 | |
Significant other observable inputs (Level 2) | Finance | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equities | 0 | 2 | |
Significant other observable inputs (Level 2) | Real estate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equities | 0 | 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) | Diversified | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equities | 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) | Basic Materials | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equities | 0 | ||
Significant other observable inputs (Level 2) | Technology | |||
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 | ||
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 | 2,409,540 | 1,421,716 | |
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 | 17,491 | 13,807 | |
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 | 2,180,762 | 3,255,154 | |
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 | 3,325,324 | 2,643,402 | |
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 | 0 | |
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 | 4,698,728 | 3,166,290 | |
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 | ||
Significant unobservable inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, at fair value | 154,535 | 180,342 | |
Short-term investments | 0 | 0 | |
Equities | 1,479,502 | 1,211,761 | |
Other invested assets | 2,089,133 | 2,413,277 | |
Total | 3,723,170 | 3,805,380 | |
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 | 797 | 1,448 | |
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 | 3,074 | 2,728 | |
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) | Derivative assets | Other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other invested assets | 419 | ||
Significant unobservable inputs (Level 3) | Corporate loans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other invested assets | 1,326,143 | [1] | 1,879,105 |
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 | 7,121 | 3,085 | |
Significant unobservable inputs (Level 3) | Private equities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other invested assets | 756,731 | 533,744 | |
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 | (3,152) | (2,962) | |
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 | (2,000) | (3,871) | |
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) | Energy | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equities | 34,448 | ||
Significant unobservable inputs (Level 3) | Consumer cyclical | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equities | 475 | 0 | |
Significant unobservable inputs (Level 3) | Consumer noncyclical | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equities | 6,886 | 0 | |
Significant unobservable inputs (Level 3) | Insurance | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equities | 4,000 | 9,403 | |
Significant unobservable inputs (Level 3) | Finance | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equities | 138 | 126 | |
Significant unobservable inputs (Level 3) | Real estate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equities | 2,338 | 2,385 | |
Significant unobservable inputs (Level 3) | Industrials | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equities | 39 | 0 | |
Significant unobservable inputs (Level 3) | Diversified | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equities | 3,098 | ||
Significant unobservable inputs (Level 3) | Mutual funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equities | 1,428,080 | 1,199,847 | |
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) | Technology | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equities | 0 | ||
Significant unobservable inputs (Level 3) | Communications | |||
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 | 120,477 | 143,427 | |
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 | 16,530 | 18,687 | |
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 | 17,528 | 18,228 | |
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 | ||
[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 $0.9 billion and $1.4 billion at December 31, 2020 and 2019, 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 $0.4 billion and $0.5 billion of other privately issued corporate loans at December 31, 2020 and 2019 respectively. |
Fair Value - Level 3 rollforwar
Fair Value - Level 3 rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | |||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of year | $ 3,805,380 | $ 1,587,329 | ||
Realized and unrealized investment (losses) gains included in net income | 280,542 | 466,884 | ||
Purchases | 914,589 | 2,180,472 | ||
Settlements and sales | 1,279,173 | 415,621 | ||
Net transfers into (out of) Level 3 | 1,832 | (13,684) | ||
Balance, end of year | 3,723,170 | 3,805,380 | ||
Change in unrealized investment (losses) gains relating to assets held at end of year | 318,819 | 454,337 | ||
Fixed maturities | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of year | 180,342 | 159,964 | ||
Realized and unrealized investment (losses) gains included in net income | (5,913) | 14,390 | ||
Purchases | 0 | 10,455 | ||
Settlements and sales | 19,894 | 4,467 | ||
Net transfers into (out of) Level 3 | 0 | 0 | ||
Balance, end of year | 154,535 | 180,342 | ||
Change in unrealized investment (losses) gains relating to assets held at end of year | (5,908) | 14,382 | ||
Fixed maturities | U.S. states, territories and municipalities | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of year | 143,427 | 120,898 | ||
Realized and unrealized investment (losses) gains included in net income | (5,785) | 12,959 | ||
Purchases | 0 | 10,455 | ||
Settlements and sales | 17,165 | 885 | [1] | |
Net transfers into (out of) Level 3 | 0 | 0 | ||
Balance, end of year | 120,477 | 143,427 | ||
Change in unrealized investment (losses) gains relating to assets held at end of year | (5,780) | 12,951 | ||
Fixed maturities | Asset-backed securities | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of year | 18,228 | 17,596 | ||
Realized and unrealized investment (losses) gains included in net income | 0 | 1,274 | ||
Purchases | 0 | 0 | ||
Settlements and sales | 700 | 642 | ||
Net transfers into (out of) Level 3 | 0 | 0 | ||
Balance, end of year | 17,528 | 18,228 | ||
Change in unrealized investment (losses) gains relating to assets held at end of year | 0 | 1,274 | ||
Fixed maturities | Corporate bonds | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of year | 18,687 | 21,470 | ||
Realized and unrealized investment (losses) gains included in net income | (128) | 157 | ||
Purchases | 0 | 0 | ||
Settlements and sales | 2,029 | 2,940 | ||
Net transfers into (out of) Level 3 | 0 | 0 | ||
Balance, end of year | 16,530 | 18,687 | ||
Change in unrealized investment (losses) gains relating to assets held at end of year | (128) | 157 | ||
Equities | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of year | 1,211,761 | 647,725 | ||
Realized and unrealized investment (losses) gains included in net income | 199,901 | 394,100 | ||
Purchases | 89,257 | 210,959 | ||
Settlements and sales | 25,911 | [2] | 27,339 | |
Net transfers into (out of) Level 3 | 4,494 | (13,684) | ||
Balance, end of year | 1,479,502 | 1,211,761 | ||
Change in unrealized investment (losses) gains relating to assets held at end of year | 204,908 | 392,828 | ||
Sales | 26,000 | 27,000 | ||
Equities | Energy | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of year | 0 | |||
Realized and unrealized investment (losses) gains included in net income | 3,419 | |||
Purchases | 31,128 | |||
Settlements and sales | 99 | |||
Net transfers into (out of) Level 3 | 0 | |||
Balance, end of year | 34,448 | 0 | ||
Change in unrealized investment (losses) gains relating to assets held at end of year | 3,320 | |||
Equities | Consumer noncyclical | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of year | 0 | |||
Realized and unrealized investment (losses) gains included in net income | (3,168) | |||
Purchases | 5,560 | |||
Settlements and sales | 0 | |||
Net transfers into (out of) Level 3 | 4,494 | |||
Balance, end of year | 6,886 | 0 | ||
Change in unrealized investment (losses) gains relating to assets held at end of year | 278 | |||
Equities | Insurance | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of year | 9,403 | 0 | ||
Realized and unrealized investment (losses) gains included in net income | (5,403) | 7,514 | ||
Purchases | 0 | 1,889 | ||
Settlements and sales | 0 | 0 | ||
Net transfers into (out of) Level 3 | 0 | 0 | ||
Balance, end of year | 4,000 | 9,403 | ||
Change in unrealized investment (losses) gains relating to assets held at end of year | 4,000 | 7,514 | ||
Equities | Real estate | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of year | 2,385 | 0 | ||
Realized and unrealized investment (losses) gains included in net income | (416) | 0 | ||
Purchases | 369 | 2,385 | ||
Settlements and sales | 0 | 0 | ||
Net transfers into (out of) Level 3 | 0 | 0 | ||
Balance, end of year | 2,338 | 2,385 | ||
Change in unrealized investment (losses) gains relating to assets held at end of year | (416) | 0 | ||
Equities | Consumer cyclical | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of year | 0 | |||
Realized and unrealized investment (losses) gains included in net income | 0 | |||
Purchases | 475 | |||
Settlements and sales | 0 | |||
Net transfers into (out of) Level 3 | 0 | |||
Balance, end of year | 475 | 0 | ||
Change in unrealized investment (losses) gains relating to assets held at end of year | 0 | |||
Equities | Industrials | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of year | 0 | |||
Realized and unrealized investment (losses) gains included in net income | (491) | |||
Purchases | 530 | |||
Settlements and sales | 0 | |||
Net transfers into (out of) Level 3 | 0 | |||
Balance, end of year | 39 | 0 | ||
Change in unrealized investment (losses) gains relating to assets held at end of year | (491) | |||
Equities | Finance | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of year | 126 | 13,710 | ||
Realized and unrealized investment (losses) gains included in net income | 12 | 100 | ||
Purchases | 0 | 0 | ||
Settlements and sales | 0 | 0 | ||
Net transfers into (out of) Level 3 | 0 | (13,684) | ||
Balance, end of year | 138 | 126 | ||
Change in unrealized investment (losses) gains relating to assets held at end of year | 12 | (3) | ||
Equities | Technology | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of year | 0 | 12,256 | ||
Realized and unrealized investment (losses) gains included in net income | (1,538) | |||
Purchases | 0 | |||
Settlements and sales | 10,718 | |||
Net transfers into (out of) Level 3 | 0 | |||
Balance, end of year | 0 | |||
Change in unrealized investment (losses) gains relating to assets held at end of year | 0 | |||
Equities | Mutual funds | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of year | 1,199,847 | 621,759 | ||
Realized and unrealized investment (losses) gains included in net income | 206,654 | 388,024 | ||
Purchases | 47,391 | 206,685 | ||
Settlements and sales | 25,812 | 16,621 | ||
Net transfers into (out of) Level 3 | 0 | 0 | ||
Balance, end of year | 1,428,080 | 1,199,847 | ||
Change in unrealized investment (losses) gains relating to assets held at end of year | 198,911 | 385,317 | ||
Equities | Diversified | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of year | 0 | |||
Realized and unrealized investment (losses) gains included in net income | (706) | |||
Purchases | 3,804 | |||
Settlements and sales | 0 | |||
Net transfers into (out of) Level 3 | 0 | |||
Balance, end of year | 3,098 | 0 | ||
Change in unrealized investment (losses) gains relating to assets held at end of year | (706) | |||
Other invested assets | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of year | 2,413,277 | 779,640 | ||
Realized and unrealized investment (losses) gains included in net income | 86,554 | 58,394 | ||
Purchases | 825,332 | 1,959,058 | ||
Settlements and sales | 1,233,368 | [2] | 383,815 | |
Net transfers into (out of) Level 3 | (2,662) | 0 | ||
Balance, end of year | 2,089,133 | 2,413,277 | ||
Change in unrealized investment (losses) gains relating to assets held at end of year | 119,819 | 47,127 | ||
Sales | 1,100,000 | 289,000 | ||
Other invested assets | Derivatives, net | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of year | (2,657) | (1,279) | ||
Realized and unrealized investment (losses) gains included in net income | (8,217) | 115 | ||
Purchases | 5,008 | (2,000) | ||
Settlements and sales | 5,004 | (507) | ||
Net transfers into (out of) Level 3 | 0 | 0 | ||
Balance, end of year | (862) | (2,657) | ||
Change in unrealized investment (losses) gains relating to assets held at end of year | (5,085) | (111) | ||
Other invested assets | Corporate loans | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of year | 1,879,105 | 401,702 | ||
Realized and unrealized investment (losses) gains included in net income | (10,980) | 9,237 | ||
Purchases | 555,780 | 1,828,802 | ||
Settlements and sales | 1,097,762 | 360,636 | ||
Net transfers into (out of) Level 3 | 0 | 0 | ||
Balance, end of year | 1,326,143 | 1,879,105 | ||
Change in unrealized investment (losses) gains relating to assets held at end of year | 31,980 | 9,940 | ||
Sales | 981,000 | 270,000 | ||
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 | 3,085 | 6,507 | ||
Realized and unrealized investment (losses) gains included in net income | 124 | (717) | ||
Purchases | 4,448 | 0 | ||
Settlements and sales | 536 | 2,705 | ||
Net transfers into (out of) Level 3 | 0 | 0 | ||
Balance, end of year | 7,121 | 3,085 | ||
Change in unrealized investment (losses) gains relating to assets held at end of year | (979) | 139 | ||
Sales | 2,000 | |||
Other invested assets | Private equities | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of year | 533,744 | 372,710 | ||
Realized and unrealized investment (losses) gains included in net income | 105,627 | 49,759 | ||
Purchases | 260,096 | 132,256 | ||
Settlements and sales | 140,074 | 20,981 | ||
Net transfers into (out of) Level 3 | (2,662) | 0 | ||
Balance, end of year | 756,731 | 533,744 | ||
Change in unrealized investment (losses) gains relating to assets held at end of year | 93,903 | 37,159 | ||
Sales | $ 137,000 | $ 17,000 | ||
[1] | Settlements and sales of Equities and Other invested assets included sales of $27 million and $289 million, respectively. | |||
[2] | Settlements and sales of Equities and Other invested assets included sales of $26 million and $1.1 billion, respectively. Sales of Other invested assets of $1.1 billion included sales of corporate loans of $981 million and private equities of $137 million. |
Fair Value - Valuation Techniqu
Fair Value - Valuation Technique and Inputs (Details) $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fixed maturities, at fair value | $ 12,786,380 | $ 10,680,714 |
Other invested assets carried at fair value | 2,068,235 | 2,399,885 |
Equities | 1,496,441 | 1,295,164 |
Significant unobservable inputs (Level 3) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fixed maturities, at fair value | 154,535 | 180,342 |
Other invested assets carried at fair value | 2,089,133 | 2,413,277 |
Equities | 1,479,502 | 1,211,761 |
Insurance | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equities | 4,117 | 14,960 |
Insurance | Significant unobservable inputs (Level 3) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equities | 4,000 | 9,403 |
Finance | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equities | 3,646 | 31,443 |
Finance | Significant unobservable inputs (Level 3) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equities | 138 | 126 |
Technology | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equities | 3,027 | |
Technology | Significant unobservable inputs (Level 3) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equities | 0 | |
U.S. states, territories and municipalities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fixed maturities, at fair value | 137,968 | 157,234 |
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 | 120,477 | 143,427 |
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 | $ 120,477 | $ 143,427 |
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 | 0.025 | (0.001) |
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 | 2.832 | 0.096 |
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 | 0.148 | 0.035 |
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 | $ 17,528 | $ 18,228 |
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 | 0.047 |
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 | 0.047 |
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 | 0.047 |
Equities | Insurance | Significant unobservable inputs (Level 3) | Weighted market comparables | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equities | $ 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 | |
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 | $ (2,355) | $ (1,514) |
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 | 0.027 | 0.023 |
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 | 0.367 | 0.240 |
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 | 0.298 | 0.169 |
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 | $ 3,074 | $ 2,728 |
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 | 0.018 | 0.019 |
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 | 0.018 | 0.019 |
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 | 0.018 | 0.019 |
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) | |
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 | |
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 | |
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 | |
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 | $ 6,446 | $ 2,153 |
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 | 0.175 |
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 | 0.175 |
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 | 0.175 |
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 | 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 | 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 | 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 | $ 675 | $ 932 |
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 | 0.025 | 0.012 |
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 | 0.025 | 0.012 |
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 | 0.025 | 0.012 |
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 | $ 188,533 | $ 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 | 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 | 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 | 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 | 0.157 | 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 | 0.160 | 0.150 |
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 | 0.159 | 0.097 |
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 | $ 30,067 | $ 15,800 |
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 | 0.039 | 0.030 |
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 | 0.039 | 0.030 |
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 | 0.039 | 0.030 |
Fair Value - Change in fair val
Fair Value - Change in fair value option table (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Change in unrealized gain/loss | $ 451,071 | $ 644,211 | $ (167,606) | |
Fixed maturities and short term investments | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Change in unrealized gain/loss | 219,946 | 190,343 | (150,926) | |
Equities | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Change in unrealized gain/loss | 167,456 | 403,011 | 2,791 | |
Other invested assets | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Change in unrealized gain/loss | 63,669 | 50,857 | (12,987) | |
Funds Held - Directly Managed | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Change in unrealized gain/loss | [1] | $ 0 | $ 0 | $ (6,484) |
[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) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | |||
Fair Value - Other Details [Line Items] | ||||
Other invested assets carried at fair value | $ 2,068,235 | $ 2,399,885 | ||
Other invested assets | ||||
Fair Value - Other Details [Line Items] | ||||
Equity method investments | 900,000 | 866,000 | ||
Other invested assets | ||||
Fair Value - Other Details [Line Items] | ||||
Equity method investments | 900,000 | |||
Equities | Consumer noncyclical | ||||
Fair Value - Other Details [Line Items] | ||||
Transfers into level 3 | 4,000 | |||
Equities | Finance | ||||
Fair Value - Other Details [Line Items] | ||||
Transfers out of level 3 | 14,000 | |||
Corporate loans | ||||
Fair Value - Other Details [Line Items] | ||||
Other invested assets carried at fair value | 1,326,143 | [1] | 1,879,105 | |
Individually managed private issue corporate loans | ||||
Fair Value - Other Details [Line Items] | ||||
Other invested assets carried at fair value | [1] | 900,000 | 1,400,000 | |
Minimum threshold for inclusion in managed loan portfolio | 300,000 | |||
Other private issue corporate loans | ||||
Fair Value - Other Details [Line Items] | ||||
Other invested assets carried at fair value | 400,000 | [1] | 500,000 | |
Private equities | ||||
Fair Value - Other Details [Line Items] | ||||
Other invested assets carried at fair value | 756,731 | $ 533,744 | ||
Private equities | Other invested assets | ||||
Fair Value - Other Details [Line Items] | ||||
Transfers out of level 3 | $ 3,000 | |||
[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 $0.9 billion and $1.4 billion at December 31, 2020 and 2019, 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 $0.4 billion and $0.5 billion of other privately issued corporate loans at December 31, 2020 and 2019 respectively. |
Investments - Net Realized and
Investments - Net Realized and Unrealized Investment (Losses) Gains (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Schedule of Net Realized and Unrealized Investment (Losses) Gains | ||||
Net realized and unrealized investment gains (losses) | $ 454,319 | $ 886,670 | $ (389,632) | |
Trading securities | ||||
Schedule of Net Realized and Unrealized Investment (Losses) Gains | ||||
Net realized investment gains (losses) on trading securities | 15,930 | 250,883 | (201,950) | |
Change in net unrealized investment gains (losses) | 444,508 | 638,764 | (181,560) | |
Net realized and unrealized investment gains (losses) | 454,319 | 886,670 | (389,632) | |
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 | 24,828 | 243,508 | (224,887) | |
Change in net unrealized investment gains (losses) | 219,946 | 190,343 | (150,926) | |
Trading securities | Equities | ||||
Schedule of Net Realized and Unrealized Investment (Losses) Gains | ||||
Net realized investment gains (losses) on trading securities | 21,538 | 6,545 | 14,601 | |
Change in net unrealized investment gains (losses) | 167,456 | 403,011 | 2,791 | |
Trading securities | Other invested assets | ||||
Schedule of Net Realized and Unrealized Investment (Losses) Gains | ||||
Net realized investment gains (losses) on trading securities | (30,436) | 830 | 7,136 | |
Change in net unrealized investment gains (losses) | 58,452 | 44,441 | (25,607) | |
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 | 0 | 1,200 |
Change in net unrealized investment gains (losses) | [1] | 0 | 0 | (6,484) |
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) | (1,346) | 969 | (1,334) | |
Almacantar | Real Estate Investment | ||||
Schedule of Net Realized and Unrealized Investment (Losses) Gains | ||||
Impairment loss on investments in real estate | $ (6,119) | $ (2,977) | $ (6,122) | |
[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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Net Investment Income [Line Items] | ||||
Net investment income | $ 360,668 | $ 448,538 | $ 415,921 | |
Funds held interest rate, low end of range | 0.10% | 0.10% | 0.10% | |
Funds held interest rate, high end of range | 6.50% | 5.10% | 7.40% | |
Fixed maturities | ||||
Net Investment Income [Line Items] | ||||
Net investment income | $ 290,259 | $ 379,939 | $ 378,726 | |
Short-term investments and cash and cash equivalents | ||||
Net Investment Income [Line Items] | ||||
Net investment income | 12,000 | 26,981 | 13,279 | |
Other invested assets | ||||
Net Investment Income [Line Items] | ||||
Net investment income | 89,129 | 68,879 | 26,234 | |
Equity, Funds Held And Other | ||||
Net Investment Income [Line Items] | ||||
Net investment income | [1] | 20,477 | 12,221 | 21,964 |
Funds Held - Directly Managed | ||||
Net Investment Income [Line Items] | ||||
Net investment income | [2] | 0 | 0 | 4,674 |
Investment Expenses | ||||
Net Investment Income [Line Items] | ||||
Net investment income | $ (51,197) | $ (39,482) | $ (28,956) | |
[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 6.5%, 0.1% to 5.1% and 0.1% to 7.4% for the years ended December 31, 2020, 2019 and 2018, 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, 2020 | Dec. 31, 2019 |
Pledged assets and net payable for securities purchased [Line Items] | ||
Restricted cash and cash equivalents | $ 209 | $ 294 |
Restricted securities | 4,993 | 4,025 |
Other assets | ||
Pledged assets and net payable for securities purchased [Line Items] | ||
Receivable for securities sold | 24 | 31 |
Accounts payable, accrued expenses, and other | ||
Pledged assets and net payable for securities purchased [Line Items] | ||
Payable for securities purchased | $ 286 | $ 169 |
Investments - Equity Method Inv
Investments - Equity Method Investments (Details) - Other invested assets - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | $ 900 | $ 866 |
Almacantar Group S.A. | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 36.00% | 36.00% |
Equity method investments | $ 494 | $ 483 |
Derivatives - Balance Sheet (De
Derivatives - Balance Sheet (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative [Line Items] | |||
Asset derivatives at fair value | [1] | $ 11,599,000 | $ 8,805,000 |
Liability derivatives at fair value | [1] | (33,359,000) | (24,854,000) |
Derivatives designated as hedges | |||
Derivative [Line Items] | |||
Net notional exposure | 0 | ||
Derivatives designated as hedges | Foreign exchange forward contracts | |||
Derivative [Line Items] | |||
Net notional exposure | 0 | ||
Derivatives not designated as hedges | |||
Derivative [Line Items] | |||
Asset derivatives at fair value | 11,599,000 | 8,805,000 | |
Liability derivatives at fair value | (33,359,000) | (24,854,000) | |
Fair value | (21,760,000) | (16,049,000) | |
Derivatives not designated as hedges | Foreign exchange forward contracts | |||
Derivative [Line Items] | |||
Asset derivatives at fair value | 7,309,000 | 4,363,000 | |
Liability derivatives at fair value | (10,698,000) | (5,643,000) | |
Fair value | (3,389,000) | (1,280,000) | |
Net notional exposure | 3,843,436,000 | 3,028,063,000 | |
Derivatives not designated as hedges | Foreign currency option contracts | |||
Derivative [Line Items] | |||
Asset derivatives at fair value | 266,000 | ||
Liability derivatives at fair value | 0 | ||
Fair value | 266,000 | ||
Net notional exposure | 0 | ||
Derivatives not designated as hedges | Insurance-linked securities | |||
Derivative [Line Items] | |||
Asset derivatives at fair value | [2] | 3,074,000 | 2,728,000 |
Liability derivatives at fair value | [2] | (2,000,000) | (3,871,000) |
Fair value | [2] | 1,074,000 | (1,143,000) |
Net notional exposure | [2] | 18,850,000 | 46,250,000 |
Derivatives not designated as hedges | Total return swaps | |||
Derivative [Line Items] | |||
Asset derivatives at fair value | 797,000 | 1,448,000 | |
Liability derivatives at fair value | (3,152,000) | (2,962,000) | |
Fair value | (2,355,000) | (1,514,000) | |
Net notional exposure | 31,580,000 | 31,641,000 | |
Derivatives not designated as hedges | Interest rate swaps | |||
Derivative [Line Items] | |||
Asset derivatives at fair value | [3] | 0 | 0 |
Liability derivatives at fair value | [3] | (17,509,000) | (12,378,000) |
Fair value | [3] | (17,509,000) | (12,378,000) |
Net notional exposure | [3] | 0 | $ 0 |
Derivatives not designated as hedges | Other Investments | |||
Derivative [Line Items] | |||
Asset derivatives at fair value | 419,000 | ||
Liability derivatives at fair value | 0 | ||
Fair value | 419,000 | ||
Net notional exposure | $ 0 | ||
[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 includes 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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in fair value of designated cash flow hedges, net of reclassification adjustment | $ 0 | $ (1,877) | $ 1,877 |
Derivatives not designated as hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivatives recognized in income | (40,062) | (60,271) | 51,038 |
Derivatives not designated as hedges | Included in net foreign exchange gains and losses | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivatives recognized in income | (32,611) | (41,171) | 45,143 |
Derivatives not designated as hedges | Included in net foreign exchange gains and losses | Foreign exchange forward contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivatives recognized in income | (32,611) | (41,171) | 45,143 |
Derivatives not designated as hedges | Included in net realized and unrealized investment gains and losses | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivatives recognized in income | (7,451) | (19,100) | 5,895 |
Derivatives not designated as hedges | Included in net realized and unrealized investment gains and losses | Futures contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivatives recognized in income | 0 | (9,952) | 11,043 |
Derivatives not designated as hedges | Included in net realized and unrealized investment gains and losses | Insurance-linked securities | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivatives recognized in income | (2,341) | (4,381) | 6,134 |
Derivatives not designated as hedges | Included in net realized and unrealized investment gains and losses | Total return swaps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivatives recognized in income | (845) | 0 | 0 |
Derivatives not designated as hedges | Included in net realized and unrealized investment gains and losses | Interest rate swaps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivatives recognized in income | (5,131) | (5,230) | 2,332 |
Derivatives not designated as hedges | Included in net realized and unrealized investment gains and losses | TBAs | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivatives recognized in income | (510) | 0 | (13,614) |
Derivatives not designated as hedges | Included in net realized and unrealized investment gains and losses | Other | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivatives recognized in income | 1,376 | 463 | 0 |
Unrealized gain (loss) on investments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in fair value of designated cash flow hedges, net of reclassification adjustment | $ 0 | $ (1,877) | $ 1,877 |
Derivatives - Offsetting (Detai
Derivatives - Offsetting (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Gross amounts of recognized, asset | [1] | $ 11,599 | $ 8,805 |
Gross amount offset in the balance sheet | 0 | 0 | |
Net amounts of asset/ liabilities presented in the balance sheet, asset | 11,599 | 8,805 | |
Gross amounts not offset in the balance sheet, financial instruments, asset | 0 | 0 | |
Gross amounts not offset in the balance sheet, cash collateral received/ pledged | (26,853) | (19,537) | |
Net amount, asset | (15,254) | (10,732) | |
Gross amounts of recognized, liability | [1] | (33,359) | (24,854) |
Gross amount offset in the balance sheet | 0 | 0 | |
Net amounts presented in the balance sheet, liability | (33,359) | (24,854) | |
Gross amounts not offset in the balance sheet, financial instruments, liability | 0 | 0 | |
Gross amounts not offset in the balance sheet, cash collateral received | 11,503 | 2,977 | |
Net amount, liability | $ (21,856) | $ (21,877) | |
[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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
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 | 117,538 | |||
Amortization of intangible assets | (9,988) | (11,434) | (35,473) | |
Balance at end of year | 107,669 | 117,538 | ||
Definite-lived intangible assets | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Balance at beginning of year | 107,983 | 119,344 | 150,679 | |
Definite-lived intangible assets acquired during the year | 73 | [1] | 4,138 | |
Foreign exchange and other | 119 | |||
Amortization of intangible assets | (9,988) | (11,434) | (35,473) | |
Balance at end of year | 98,114 | 107,983 | 119,344 | |
Indefinite-lived intangible assets | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Balance at beginning of year | 9,555 | 9,555 | 9,555 | |
Indefinite-lived intangible assets acquired during the year | 0 | 0 | ||
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 | 117,538 | 128,899 | 160,234 | |
Total intangible assets acquired during the year | 119 | 73 | [1] | 4,138 |
Amortization of intangible assets | (9,988) | (11,434) | (35,473) | |
Balance at end of year | $ 107,669 | $ 117,538 | $ 128,899 | |
[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 $4 million. |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Gross Values And Amortization Of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill And Intangible Assets [Line Items] | ||||
Gross intangible assets excluding goodwill | $ 201,039 | $ 200,920 | ||
Accumulated amortization | (93,370) | (83,382) | ||
Intangible assets | 107,669 | 117,538 | ||
Definite-lived intangible assets | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Gross intangible assets excluding goodwill | 191,484 | 191,365 | ||
Accumulated amortization | (93,370) | (83,382) | ||
Intangible assets | 98,114 | 107,983 | $ 119,344 | $ 150,679 |
Definite-lived intangible assets | Renewal rights | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Gross intangible assets excluding goodwill | 48,163 | 48,163 | ||
Accumulated amortization | (38,205) | (35,238) | ||
Intangible assets | 9,958 | 12,925 | ||
Definite-lived intangible assets | Customer relationships | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Gross intangible assets excluding goodwill | 67,738 | 67,619 | ||
Accumulated amortization | (47,867) | (42,419) | ||
Intangible assets | 19,871 | 25,200 | ||
Definite-lived intangible assets | Life VOBA | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Gross intangible assets excluding goodwill | 75,583 | 75,583 | ||
Accumulated amortization | (7,298) | (5,725) | ||
Intangible assets | $ 68,285 | 69,858 | ||
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 | $ 9,555 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
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, 2020USD ($) |
Estimated amortization expense | |
2021 | $ 8,835 |
2022 | 8,901 |
2023 | 7,913 |
2024 | 7,256 |
2025 | 6,437 |
Thereafter | 58,772 |
Total | 98,114 |
VOBA | |
Estimated amortization expense | |
2021 | 1,486 |
2022 | 2,478 |
2023 | 2,272 |
2024 | 2,296 |
2025 | 2,070 |
Thereafter | 57,683 |
Total | 68,285 |
Other definite- lived intangible assets | |
Estimated amortization expense | |
2021 | 7,349 |
2022 | 6,423 |
2023 | 5,641 |
2024 | 4,960 |
2025 | 4,367 |
Thereafter | 1,089 |
Total | $ 29,829 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets - Narrative Disclosures (Details) - Claims Analytics Inc. $ in Millions | 1 Months Ended |
Jun. 30, 2018USD ($) | |
Goodwill And Intangible Assets [Line Items] | |
Percentage of voting interests acquired | 100.00% |
Customer relationships | |
Goodwill And Intangible Assets [Line Items] | |
Definite-lived intangible assets acquired during the year | $ 4 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Components of non-life reserves [Line Items] | ||||
Non-life reserves | $ 11,395,321 | $ 10,363,383 | ||
Non Life | ||||
Components of non-life reserves [Line Items] | ||||
Case reserves | 4,646,633 | 4,203,052 | ||
ACRs | 171,381 | 158,220 | ||
IBNR reserves | 6,577,307 | 6,002,111 | ||
Non-life reserves | $ 11,395,321 | $ 10,363,383 | $ 9,895,376 | $ 10,102,172 |
Non-life and Life and Health _4
Non-life and Life and Health Reserves - Non Life loss and loss expenses rollforward (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||||||
Gross liability at beginning of year | $ 10,363,383,000 | ||||||||
Reinsurance recoverable at beginning of year | 889,021,000 | ||||||||
Reinsurance recoverable at end of year | $ 901,063,000 | $ 889,021,000 | 901,063,000 | $ 889,021,000 | |||||
Gross liability at end of year | 11,395,321,000 | 10,363,383,000 | 11,395,321,000 | 10,363,383,000 | |||||
Wholesale transaction deferred gain | $ 14,000,000 | ||||||||
Loss portfolio transfer agreement percentage | 100.00% | ||||||||
Wholesale transaction gain | 14,000,000 | ||||||||
Portfolio Transfer Settlement, Invested Assets Amount | 64,000,000 | ||||||||
Non Life | |||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||||||
Gross liability at beginning of year | 10,363,383,000 | 9,895,376,000 | $ 10,102,172,000 | ||||||
Reinsurance recoverable at beginning of year | 754,795,000 | 850,946,000 | 719,998,000 | ||||||
Net liability at beginning of year | 9,608,588,000 | 9,044,430,000 | 9,382,174,000 | ||||||
Current year | [1] | 3,945,248,000 | 3,716,988,000 | 3,417,366,000 | |||||
Prior years | [1] | 71,456,000 | (56,848,000) | (248,719,000) | |||||
Net incurred losses | [1] | 4,016,704,000 | 3,660,140,000 | 3,168,647,000 | |||||
Current year | (459,718,000) | (439,285,000) | (336,584,000) | ||||||
Prior years | (2,772,886,000) | (2,651,385,000) | (2,585,403,000) | ||||||
Total Non-life Claims Paid | (3,232,604,000) | (3,090,670,000) | (2,921,987,000) | ||||||
Retroactive reinsurance recoverable | $ (81,000,000) | 0 | [2] | (81,013,000) | [2] | 0 | [2] | ||
Change in Paris Re Reserve Agreement | [3] | 0 | 0 | (397,493,000) | |||||
Effects of foreign exchange rate changes and other | 220,303,000 | 75,701,000 | (186,911,000) | ||||||
Net liability at end of year | 10,612,991,000 | 9,608,588,000 | 10,612,991,000 | 9,608,588,000 | 9,044,430,000 | ||||
Reinsurance recoverable at end of year | 782,330,000 | 754,795,000 | 782,330,000 | 754,795,000 | 850,946,000 | ||||
Gross liability at end of year | 11,395,321,000 | 10,363,383,000 | 11,395,321,000 | 10,363,383,000 | 9,895,376,000 | ||||
Reinsurance Recoverable for Paid and Unpaid Claims and Claims Adjustments wholesale transaction | (70,000,000) | ||||||||
Liability for Claims and Claims Adjustment Expense wholesale transaction | (70,000,000) | (70,000,000) | |||||||
Retroactive reinsurance recoverable | 81,000,000 | 0 | [2] | 81,013,000 | [2] | 0 | [2] | ||
Corporate and Other | |||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||||||
Gross liability at beginning of year | 6,000,000 | 9,000,000 | |||||||
Prior years | (3,000,000) | [1] | (3,000,000) | ||||||
Gross liability at end of year | $ 0 | $ 6,000,000 | $ 0 | $ 6,000,000 | $ 9,000,000 | ||||
[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 and $9 million at December 31, 2019 and 2018, respectively. There were no incurred losses or non-life reserves allocated to Corporate and Other during 2020. | ||||||||
[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 reinsurance recoverable of $81 million and a related deferred gain of $14 million, which was included in Accounts payable, accrued expenses and other in the Consolidated Balance Sheet at December 31, 2019. In the fourth quarter of 2020, the Company completed a business transfer to extinguish the remaining$70 million of non-life reserves and derecognized the $70 million of related reinsurance recoverables. As a result, during 2020, the $14 million deferred gain was recognized within Losses and loss expenses in the Consolidated Statement of Operations. At settlement, $64 million of invested assets were transferred, and there was a corresponding decrease in Other reinsurance balances payable. | ||||||||
[3] | The change in reserve agreement includes adverse development on Paris Re’s reserves which were guaranteed by Axa under the reserve agreement. In 2018, this balance also includes the reduction of the guaranteed reserves following the commutation of the agreement in the fourth quarter of 2018. |
Non-life and Life and Health _5
Non-life and Life and Health Reserves - Guaranteed reserves, asbestos, and environmental claims and narrative (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract] | ||||
Guaranteed Reserves | $ 426 | |||
Gain on reserve agreement commutation | $ 29 | |||
Net non-life reserves related to asbestos and environmental claims | $ 43 | $ 45 | ||
Gross non-life reserves related to asbestos and environmental claims | $ 50 | $ 51 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Loss and Loss Expenses Including Life Policy Benefits [Line Items] | |||
Reinsurance recoverable at beginning of year | $ 889,021 | ||
Reinsurance recoverable at end of year | 901,063 | $ 889,021 | |
Life and Health | |||
Reconciliation of Loss and Loss Expenses Including Life Policy Benefits [Line Items] | |||
Gross liability at beginning of period | 2,417,044 | 2,198,080 | $ 2,098,759 |
Reinsurance recoverable at beginning of year | 16,183 | 11,829 | 9,287 |
Net liability at beginning of period | 2,400,861 | 2,186,251 | 2,089,472 |
Net incurred losses | 1,318,196 | 1,263,016 | 1,024,608 |
Net losses paid | (1,230,383) | (1,071,487) | (818,916) |
Effects of foreign exchange rate changes and other | 179,893 | 23,081 | (108,913) |
Net liability at end of period | 2,668,567 | 2,400,861 | 2,186,251 |
Reinsurance recoverable at end of year | 35,662 | 16,183 | 11,829 |
Gross liability at end of period | 2,704,229 | $ 2,417,044 | $ 2,198,080 |
Life and Health | Europe | |||
Reconciliation of Loss and Loss Expenses Including Life Policy Benefits [Line Items] | |||
Net incurred losses | (28,000) | ||
Life and Health | Disability | |||
Reconciliation of Loss and Loss Expenses Including Life Policy Benefits [Line Items] | |||
Prior years' loss development | $ 52,000 | ||
Minimum | Life and Health | |||
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 | Life and Health | |||
Reconciliation of Loss and Loss Expenses Including Life Policy Benefits [Line Items] | |||
Interest rate assumption related to policy benefits for life and annuity contracts | 11.00% | 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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Losses and Loss Expenses by Segment [Line Items] | |||||
Losses and loss expenses | $ 5,334,900 | $ 4,923,156 | $ 4,193,255 | ||
Non Life | |||||
Losses and Loss Expenses by Segment [Line Items] | |||||
Losses and loss expenses | 4,016,704 | [1] | 3,660,140 | 3,168,647 | |
Prior years | [2] | (71,456) | 56,848 | 248,719 | |
Life and Health | |||||
Losses and Loss Expenses by Segment [Line Items] | |||||
Losses and loss expenses | 1,318,196 | 1,263,016 | $ 1,024,608 | ||
Corporate and Other | |||||
Losses and Loss Expenses by Segment [Line Items] | |||||
Prior years | $ 3,000 | [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 and $9 million at December 31, 2019 and 2018, respectively. There were no incurred losses or non-life reserves allocated to Corporate and Other during 2020. |
Non-life and Life and Health _8
Non-life and Life and Health Reserves - Claims development (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | 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 | $ 6,479,603 | ||||||||
Net paid losses and loss expenses | 4,732,443 | ||||||||
Net reserves for Accident Years and exposures included in the triangles | 1,747,160 | ||||||||
All outstanding liabilities before Accident Year 2012, net of reinsurance | 96,511 | ||||||||
Net liability at end of year | 1,843,671 | ||||||||
Total of IBNR plus expected development on reported claims | $ 840,589 | ||||||||
Average annual percentage payout of incurred claims by age: | |||||||||
Year One | 15.00% | ||||||||
Year Two | 52.00% | ||||||||
Year Three | 15.00% | ||||||||
Year Four | 6.00% | ||||||||
Year Five | 2.00% | ||||||||
Year Six | 1.00% | ||||||||
Year Seven | 1.00% | ||||||||
Year Eight | 1.00% | ||||||||
Year Nine | 0.00% | ||||||||
Property | 2012 | |||||||||
Claims Development [Line Items] | |||||||||
Net incurred losses and loss expenses | $ 529,800 | $ 530,578 | $ 541,206 | $ 553,162 | $ 553,571 | $ 569,161 | $ 585,528 | $ 665,457 | $ 669,251 |
Net paid losses and loss expenses | 517,970 | 518,029 | 510,674 | 507,557 | 498,174 | 486,598 | 452,456 | 358,758 | 100,426 |
Total of IBNR plus expected development on reported claims | 1,389 | ||||||||
Property | 2013 | |||||||||
Claims Development [Line Items] | |||||||||
Net incurred losses and loss expenses | 517,995 | 518,273 | 520,552 | 531,092 | 535,390 | 550,859 | 583,828 | 688,562 | |
Net paid losses and loss expenses | 505,337 | 503,187 | 498,952 | 495,869 | 477,517 | 442,974 | 341,662 | 90,133 | |
Total of IBNR plus expected development on reported claims | 9 | ||||||||
Property | 2014 | |||||||||
Claims Development [Line Items] | |||||||||
Net incurred losses and loss expenses | 441,020 | 442,768 | 444,502 | 448,016 | 450,396 | 471,863 | 517,561 | ||
Net paid losses and loss expenses | 432,996 | 429,160 | 424,068 | 414,395 | 388,024 | 323,437 | 91,891 | ||
Total of IBNR plus expected development on reported claims | 958 | ||||||||
Property | 2015 | |||||||||
Claims Development [Line Items] | |||||||||
Net incurred losses and loss expenses | 506,222 | 510,688 | 516,138 | 523,677 | 548,716 | 591,817 | |||
Net paid losses and loss expenses | 488,049 | 483,099 | 472,059 | 443,500 | 354,874 | 96,019 | |||
Total of IBNR plus expected development on reported claims | 3,806 | ||||||||
Property | 2016 | |||||||||
Claims Development [Line Items] | |||||||||
Net incurred losses and loss expenses | 613,810 | 617,028 | 637,316 | 684,070 | 726,247 | ||||
Net paid losses and loss expenses | 592,826 | 579,666 | 541,070 | 459,492 | 137,065 | ||||
Total of IBNR plus expected development on reported claims | (1,802) | ||||||||
Property | 2017 | |||||||||
Claims Development [Line Items] | |||||||||
Net incurred losses and loss expenses | 951,418 | 982,359 | 1,066,376 | 1,016,229 | |||||
Net paid losses and loss expenses | 891,247 | 839,658 | 729,810 | 223,598 | |||||
Total of IBNR plus expected development on reported claims | 6,426 | ||||||||
Property | 2018 | |||||||||
Claims Development [Line Items] | |||||||||
Net incurred losses and loss expenses | 886,662 | 899,055 | 854,166 | ||||||
Net paid losses and loss expenses | 715,182 | 573,855 | 77,248 | ||||||
Total of IBNR plus expected development on reported claims | 82,052 | ||||||||
Property | 2019 | |||||||||
Claims Development [Line Items] | |||||||||
Net incurred losses and loss expenses | 848,801 | 797,247 | |||||||
Net paid losses and loss expenses | 479,960 | 69,729 | |||||||
Total of IBNR plus expected development on reported claims | 90,827 | ||||||||
Property | 2020 | |||||||||
Claims Development [Line Items] | |||||||||
Net incurred losses and loss expenses | 1,183,875 | ||||||||
Net paid losses and loss expenses | 108,876 | ||||||||
Total of IBNR plus expected development on reported claims | 656,924 | ||||||||
Casualty | |||||||||
Claims Development [Line Items] | |||||||||
Net incurred losses and loss expenses | 8,089,499 | ||||||||
Net paid losses and loss expenses | 3,862,453 | ||||||||
Net reserves for Accident Years and exposures included in the triangles | 4,227,046 | ||||||||
All outstanding liabilities before Accident Year 2012, net of reinsurance | 1,059,637 | ||||||||
Net liability at end of year | 5,286,683 | ||||||||
Total of IBNR plus expected development on reported claims | $ 2,997,643 | ||||||||
Average annual percentage payout of incurred claims by age: | |||||||||
Year One | 7.00% | ||||||||
Year Two | 16.00% | ||||||||
Year Three | 13.00% | ||||||||
Year Four | 12.00% | ||||||||
Year Five | 11.00% | ||||||||
Year Six | 9.00% | ||||||||
Year Seven | 6.00% | ||||||||
Year Eight | 4.00% | ||||||||
Year Nine | 3.00% | ||||||||
Casualty | 2012 | |||||||||
Claims Development [Line Items] | |||||||||
Net incurred losses and loss expenses | $ 569,594 | 577,494 | 592,669 | 597,170 | 588,811 | 606,043 | 645,961 | 673,952 | 687,962 |
Net paid losses and loss expenses | 467,395 | 449,854 | 422,362 | 391,406 | 333,006 | 276,902 | 203,970 | 134,416 | 51,015 |
Total of IBNR plus expected development on reported claims | 41,729 | ||||||||
Casualty | 2013 | |||||||||
Claims Development [Line Items] | |||||||||
Net incurred losses and loss expenses | 705,107 | 719,484 | 721,980 | 725,500 | 729,592 | 747,617 | 796,525 | 800,809 | |
Net paid losses and loss expenses | 547,056 | 521,355 | 480,167 | 418,556 | 348,233 | 266,697 | 158,781 | 50,172 | |
Total of IBNR plus expected development on reported claims | 77,368 | ||||||||
Casualty | 2014 | |||||||||
Claims Development [Line Items] | |||||||||
Net incurred losses and loss expenses | 857,663 | 873,227 | 879,547 | 863,051 | 857,330 | 877,191 | 901,424 | ||
Net paid losses and loss expenses | 637,432 | 573,308 | 501,473 | 413,742 | 313,465 | 209,570 | 71,742 | ||
Total of IBNR plus expected development on reported claims | 103,508 | ||||||||
Casualty | 2015 | |||||||||
Claims Development [Line Items] | |||||||||
Net incurred losses and loss expenses | 855,377 | 861,603 | 858,788 | 816,250 | 840,261 | 899,355 | |||
Net paid losses and loss expenses | 575,490 | 501,468 | 398,324 | 300,083 | 187,339 | 67,091 | |||
Total of IBNR plus expected development on reported claims | 147,031 | ||||||||
Casualty | 2016 | |||||||||
Claims Development [Line Items] | |||||||||
Net incurred losses and loss expenses | 856,372 | 850,527 | 822,539 | 801,939 | 849,717 | ||||
Net paid losses and loss expenses | 468,089 | 380,668 | 263,687 | 163,317 | 33,049 | ||||
Total of IBNR plus expected development on reported claims | 174,156 | ||||||||
Casualty | 2017 | |||||||||
Claims Development [Line Items] | |||||||||
Net incurred losses and loss expenses | 767,640 | 757,962 | 729,564 | 761,089 | |||||
Net paid losses and loss expenses | 399,268 | 292,946 | 180,400 | 61,811 | |||||
Total of IBNR plus expected development on reported claims | 216,810 | ||||||||
Casualty | 2018 | |||||||||
Claims Development [Line Items] | |||||||||
Net incurred losses and loss expenses | 975,851 | 957,888 | 941,900 | ||||||
Net paid losses and loss expenses | 375,961 | 238,134 | 62,403 | ||||||
Total of IBNR plus expected development on reported claims | 418,539 | ||||||||
Casualty | 2019 | |||||||||
Claims Development [Line Items] | |||||||||
Net incurred losses and loss expenses | 1,223,746 | 1,214,328 | |||||||
Net paid losses and loss expenses | 294,178 | 89,228 | |||||||
Total of IBNR plus expected development on reported claims | 745,117 | ||||||||
Casualty | 2020 | |||||||||
Claims Development [Line Items] | |||||||||
Net incurred losses and loss expenses | 1,278,149 | ||||||||
Net paid losses and loss expenses | 97,584 | ||||||||
Total of IBNR plus expected development on reported claims | 1,073,385 | ||||||||
Specialty | |||||||||
Claims Development [Line Items] | |||||||||
Net incurred losses and loss expenses | 11,186,691 | ||||||||
Net paid losses and loss expenses | 8,166,455 | ||||||||
Net reserves for Accident Years and exposures included in the triangles | 3,020,236 | ||||||||
All outstanding liabilities before Accident Year 2012, net of reinsurance | 86,334 | ||||||||
Net liability at end of year | 3,106,570 | ||||||||
Total of IBNR plus expected development on reported claims | $ 1,936,464 | ||||||||
Average annual percentage payout of incurred claims by age: | |||||||||
Year One | 12.00% | ||||||||
Year Two | 46.00% | ||||||||
Year Three | 17.00% | ||||||||
Year Four | 8.00% | ||||||||
Year Five | 4.00% | ||||||||
Year Six | 2.00% | ||||||||
Year Seven | 1.00% | ||||||||
Year Eight | 1.00% | ||||||||
Year Nine | 0.00% | ||||||||
Specialty | 2012 | |||||||||
Claims Development [Line Items] | |||||||||
Net incurred losses and loss expenses | $ 1,013,907 | 1,020,059 | 1,027,484 | 1,034,403 | 1,010,778 | 1,010,081 | 1,058,950 | 1,108,594 | 1,282,475 |
Net paid losses and loss expenses | 939,220 | 935,655 | 913,820 | 898,366 | 875,046 | 839,022 | 779,228 | 558,670 | 130,895 |
Total of IBNR plus expected development on reported claims | 13,431 | ||||||||
Specialty | 2013 | |||||||||
Claims Development [Line Items] | |||||||||
Net incurred losses and loss expenses | 1,166,121 | 1,170,207 | 1,168,410 | 1,181,786 | 1,206,217 | 1,226,027 | 1,320,898 | 1,389,589 | |
Net paid losses and loss expenses | 1,120,611 | 1,114,346 | 1,093,109 | 1,064,712 | 1,023,283 | 937,967 | 795,323 | 102,820 | |
Total of IBNR plus expected development on reported claims | 16,089 | ||||||||
Specialty | 2014 | |||||||||
Claims Development [Line Items] | |||||||||
Net incurred losses and loss expenses | 1,157,281 | 1,160,979 | 1,159,996 | 1,160,392 | 1,195,070 | 1,264,246 | 1,413,504 | ||
Net paid losses and loss expenses | 1,083,802 | 1,073,796 | 1,041,536 | 997,356 | 914,726 | 778,820 | 139,248 | ||
Total of IBNR plus expected development on reported claims | 22,582 | ||||||||
Specialty | 2015 | |||||||||
Claims Development [Line Items] | |||||||||
Net incurred losses and loss expenses | 1,119,607 | 1,133,258 | 1,129,612 | 1,148,619 | 1,204,645 | 1,393,017 | |||
Net paid losses and loss expenses | 1,046,155 | 1,022,453 | 966,962 | 872,282 | 673,901 | 139,249 | |||
Total of IBNR plus expected development on reported claims | 20,818 | ||||||||
Specialty | 2016 | |||||||||
Claims Development [Line Items] | |||||||||
Net incurred losses and loss expenses | 1,174,582 | 1,167,917 | 1,160,967 | 1,193,882 | 1,337,041 | ||||
Net paid losses and loss expenses | 1,064,675 | 1,036,947 | 916,947 | 740,538 | 151,895 | ||||
Total of IBNR plus expected development on reported claims | 42,641 | ||||||||
Specialty | 2017 | |||||||||
Claims Development [Line Items] | |||||||||
Net incurred losses and loss expenses | 1,162,663 | 1,153,910 | 1,141,260 | 1,178,646 | |||||
Net paid losses and loss expenses | 949,498 | 819,492 | 591,218 | 100,559 | |||||
Total of IBNR plus expected development on reported claims | 113,543 | ||||||||
Specialty | 2018 | |||||||||
Claims Development [Line Items] | |||||||||
Net incurred losses and loss expenses | 1,296,272 | 1,300,072 | 1,229,779 | ||||||
Net paid losses and loss expenses | 919,226 | 618,980 | 118,950 | ||||||
Total of IBNR plus expected development on reported claims | 161,342 | ||||||||
Specialty | 2019 | |||||||||
Claims Development [Line Items] | |||||||||
Net incurred losses and loss expenses | 1,594,042 | 1,426,998 | |||||||
Net paid losses and loss expenses | 804,390 | 217,980 | |||||||
Total of IBNR plus expected development on reported claims | 486,235 | ||||||||
Specialty | 2020 | |||||||||
Claims Development [Line Items] | |||||||||
Net incurred losses and loss expenses | 1,502,216 | ||||||||
Net paid losses and loss expenses | 238,878 | ||||||||
Total of IBNR plus expected development on reported claims | 1,059,783 | ||||||||
Non Life | |||||||||
Claims Development [Line Items] | |||||||||
Net incurred losses and loss expenses | 25,755,793 | ||||||||
Net paid losses and loss expenses | 16,761,351 | ||||||||
Net reserves for Accident Years and exposures included in the triangles | 8,994,442 | ||||||||
All outstanding liabilities before Accident Year 2012, net of reinsurance | 1,242,482 | ||||||||
Net liability at end of year | 10,236,924 | ||||||||
Total of IBNR plus expected development on reported claims | $ 5,774,696 | ||||||||
Average annual percentage payout of incurred claims by age: | |||||||||
Year One | 11.00% | ||||||||
Year Two | 38.00% | ||||||||
Year Three | 16.00% | ||||||||
Year Four | 9.00% | ||||||||
Year Five | 6.00% | ||||||||
Year Six | 4.00% | ||||||||
Year Seven | 3.00% | ||||||||
Year Eight | 2.00% | ||||||||
Year Nine | 1.00% | ||||||||
Non Life | 2012 | |||||||||
Claims Development [Line Items] | |||||||||
Net incurred losses and loss expenses | $ 2,113,301 | 2,128,131 | 2,161,359 | 2,184,735 | 2,153,160 | 2,185,285 | 2,290,439 | 2,448,003 | 2,639,688 |
Net paid losses and loss expenses | 1,924,585 | 1,903,538 | 1,846,856 | 1,797,329 | 1,706,226 | 1,602,522 | 1,435,654 | 1,051,844 | $ 282,336 |
Total of IBNR plus expected development on reported claims | 56,549 | ||||||||
Non Life | 2013 | |||||||||
Claims Development [Line Items] | |||||||||
Net incurred losses and loss expenses | 2,389,223 | 2,407,964 | 2,410,942 | 2,438,378 | 2,471,199 | 2,524,503 | 2,701,251 | 2,878,960 | |
Net paid losses and loss expenses | 2,173,004 | 2,138,888 | 2,072,228 | 1,979,137 | 1,849,033 | 1,647,638 | 1,295,766 | $ 243,125 | |
Total of IBNR plus expected development on reported claims | 93,466 | ||||||||
Non Life | 2014 | |||||||||
Claims Development [Line Items] | |||||||||
Net incurred losses and loss expenses | 2,455,964 | 2,476,974 | 2,484,045 | 2,471,459 | 2,502,796 | 2,613,300 | 2,832,489 | ||
Net paid losses and loss expenses | 2,154,230 | 2,076,264 | 1,967,077 | 1,825,493 | 1,616,215 | 1,311,827 | $ 302,881 | ||
Total of IBNR plus expected development on reported claims | 127,048 | ||||||||
Non Life | 2015 | |||||||||
Claims Development [Line Items] | |||||||||
Net incurred losses and loss expenses | 2,481,206 | 2,505,549 | 2,504,538 | 2,488,546 | 2,593,622 | 2,884,189 | |||
Net paid losses and loss expenses | 2,109,694 | 2,007,020 | 1,837,345 | 1,615,865 | 1,216,114 | $ 302,359 | |||
Total of IBNR plus expected development on reported claims | 171,655 | ||||||||
Non Life | 2016 | |||||||||
Claims Development [Line Items] | |||||||||
Net incurred losses and loss expenses | 2,644,764 | 2,635,472 | 2,620,822 | 2,679,891 | 2,913,005 | ||||
Net paid losses and loss expenses | 2,125,590 | 1,997,281 | 1,721,704 | 1,363,347 | $ 322,009 | ||||
Total of IBNR plus expected development on reported claims | 214,995 | ||||||||
Non Life | 2017 | |||||||||
Claims Development [Line Items] | |||||||||
Net incurred losses and loss expenses | 2,881,721 | 2,894,231 | 2,937,200 | 2,955,964 | |||||
Net paid losses and loss expenses | 2,240,013 | 1,952,096 | 1,501,428 | $ 385,968 | |||||
Total of IBNR plus expected development on reported claims | 336,779 | ||||||||
Non Life | 2018 | |||||||||
Claims Development [Line Items] | |||||||||
Net incurred losses and loss expenses | 3,158,785 | 3,157,015 | 3,025,845 | ||||||
Net paid losses and loss expenses | 2,010,369 | 1,430,969 | $ 258,601 | ||||||
Total of IBNR plus expected development on reported claims | 661,933 | ||||||||
Non Life | 2019 | |||||||||
Claims Development [Line Items] | |||||||||
Net incurred losses and loss expenses | 3,666,589 | 3,438,573 | |||||||
Net paid losses and loss expenses | 1,578,528 | $ 376,937 | |||||||
Total of IBNR plus expected development on reported claims | 1,322,179 | ||||||||
Non Life | 2020 | |||||||||
Claims Development [Line Items] | |||||||||
Net incurred losses and loss expenses | 3,964,240 | ||||||||
Net paid losses and loss expenses | 445,338 | ||||||||
Total of IBNR plus expected development on reported claims | 2,790,092 | ||||||||
Non Life | Property | |||||||||
Claims Development [Line Items] | |||||||||
Net liability at end of year | 1,843,671 | ||||||||
Non Life | Casualty | |||||||||
Claims Development [Line Items] | |||||||||
Net liability at end of year | 5,286,683 | ||||||||
Non Life | Specialty | |||||||||
Claims Development [Line Items] | |||||||||
Net liability at end of year | $ 3,106,570 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||
Reinsurance recoverable on paid and unpaid losses | $ 901,063 | $ 889,021 | |||
Gross liability at end of year | 11,395,321 | 10,363,383 | |||
Property | |||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||
Total outstanding liability for unpaid claims | 1,843,671 | ||||
Casualty | |||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||
Total outstanding liability for unpaid claims | 5,286,683 | ||||
Specialty | |||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||
Total outstanding liability for unpaid claims | 3,106,570 | ||||
Non Life | |||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||
Total outstanding liability for unpaid claims | 10,236,924 | ||||
Other liabilities | 376,067 | ||||
Net liability at end of year | 10,612,991 | 9,608,588 | $ 9,044,430 | $ 9,382,174 | |
Reinsurance recoverable on paid and unpaid losses | 782,330 | 754,795 | 850,946 | 719,998 | |
Gross liability at end of year | 11,395,321 | $ 10,363,383 | $ 9,895,376 | $ 10,102,172 | |
Non Life | Unallocated loss expenses | |||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||
Other liabilities | 186,523 | ||||
Non Life | US Health net reserves | |||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||
Other liabilities | [1] | 188,879 | |||
Non Life | Other | |||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||
Other liabilities | 665 | ||||
Non Life | Property | |||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||
Total outstanding liability for unpaid claims | 1,843,671 | ||||
Reinsurance recoverable on paid and unpaid losses | 327,935 | ||||
Non Life | Casualty | |||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||
Total outstanding liability for unpaid claims | 5,286,683 | ||||
Reinsurance recoverable on paid and unpaid losses | 166,494 | ||||
Non Life | Specialty | |||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||
Total outstanding liability for unpaid claims | 3,106,570 | ||||
Reinsurance recoverable on paid and unpaid losses | $ 287,901 | ||||
[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, 2020 | Dec. 31, 2019 |
Reinsurance Disclosures [Abstract] | ||
Allowance for credit loss on reinsurance recoverable | $ 3 | $ 0 |
Reinsurance (Details)
Reinsurance (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Premiums Written, Net [Abstract] | ||||
Gross premiums written | $ 6,875,925 | $ 7,285,320 | $ 6,299,929 | |
Ceded Premiums Written | 575,067 | 376,262 | 496,565 | |
Net premiums written | 6,300,858 | 6,909,058 | 5,803,364 | |
Premiums Earned, Net [Abstract] | ||||
Assumed from other companies | 7,077,020 | 6,923,078 | 5,987,931 | |
Ceded to other companies | 540,194 | 397,860 | 474,121 | |
Net premiums earned | 6,536,826 | 6,525,218 | 5,513,810 | |
Loss and Loss Expenses and Life Policy Benefits | ||||
Assumed losses and loss expenses | 5,703,092 | 5,156,926 | 4,601,564 | |
Ceded losses and loss expenses | 368,192 | 233,770 | 408,309 | |
Losses and loss expenses | 5,334,900 | 4,923,156 | 4,193,255 | |
Allowance for credit loss on reinsurance recoverable | 3,000 | 0 | ||
Non Life | ||||
Premiums Written, Net [Abstract] | ||||
Gross premiums written | 5,376,703 | 5,792,542 | 5,064,780 | |
Ceded Premiums Written | 550,784 | 353,735 | 472,498 | |
Net premiums written | 4,825,919 | [1] | 5,438,807 | 4,592,282 |
Premiums Earned, Net [Abstract] | ||||
Assumed from other companies | 5,571,201 | 5,433,357 | 4,751,958 | |
Ceded to other companies | 516,672 | 375,301 | 450,096 | |
Net premiums earned | 5,054,529 | [1] | 5,058,056 | 4,301,862 |
Loss and Loss Expenses and Life Policy Benefits | ||||
Assumed losses and loss expenses | 4,358,975 | 3,879,242 | 3,566,201 | |
Ceded losses and loss expenses | 342,271 | 219,102 | 397,554 | |
Losses and loss expenses | 4,016,704 | [1] | 3,660,140 | 3,168,647 |
Life and Health | ||||
Premiums Written, Net [Abstract] | ||||
Gross premiums written | 1,499,222 | 1,492,778 | 1,235,149 | |
Ceded Premiums Written | 24,283 | 22,527 | 24,067 | |
Net premiums written | 1,474,939 | 1,470,251 | 1,211,082 | |
Premiums Earned, Net [Abstract] | ||||
Assumed from other companies | 1,505,819 | 1,489,721 | 1,235,973 | |
Ceded to other companies | 23,522 | 22,559 | 24,025 | |
Net premiums earned | 1,482,297 | 1,467,162 | 1,211,948 | |
Loss and Loss Expenses and Life Policy Benefits | ||||
Assumed losses and loss expenses | 1,344,117 | 1,277,684 | 1,035,363 | |
Ceded losses and loss expenses | 25,921 | 14,668 | 10,755 | |
Losses and loss expenses | $ 1,318,196 | $ 1,263,016 | $ 1,024,608 | |
[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, 2020USD ($) | Dec. 31, 2020EUR (€) | Dec. 31, 2019USD ($) | Jun. 19, 2019USD ($) | Nov. 30, 2006USD ($) |
Debt Instrument [Line Items] | |||||
Debt | $ 1,974,731 | $ 1,398,054 | |||
Fair Value | |||||
Debt Instrument [Line Items] | |||||
Debt related to senior notes | 1,571,409 | 1,406,397 | |||
Debt related to junior subordinated notes | 584,698 | 55,866 | |||
Debt | 2,156,107 | 1,462,263 | |||
Carrying Value | |||||
Debt Instrument [Line Items] | |||||
Debt related to senior notes | 1,410,391 | 1,327,965 | |||
Debt related to junior subordinated notes | 564,340 | 70,089 | |||
Debt | 1,974,731 | 1,398,054 | |||
Senior Notes | 3.7% notes maturing 2029 Issued By PartnerRe Finance B LLC | |||||
Debt Instrument [Line Items] | |||||
Commitment | 500,000 | $ 500,000 | |||
Senior Notes | 3.7% notes maturing 2029 Issued By PartnerRe Finance B LLC | Fair Value | |||||
Debt Instrument [Line Items] | |||||
Debt related to senior notes | 586,057 | 535,309 | |||
Senior Notes | 3.7% notes maturing 2029 Issued By PartnerRe Finance B LLC | Carrying Value | |||||
Debt Instrument [Line Items] | |||||
Debt related to senior notes | 496,168 | 495,614 | |||
2016 Euro Senior Notes | Notes Issued By PartnerRe Ireland Finance DAC | |||||
Debt Instrument [Line Items] | |||||
Commitment | € | € 750,000 | ||||
2016 Euro Senior Notes | Notes Issued By PartnerRe Ireland Finance DAC | Fair Value | |||||
Debt Instrument [Line Items] | |||||
Debt related to senior notes | 985,352 | 871,088 | |||
2016 Euro Senior Notes | Notes Issued By PartnerRe Ireland Finance DAC | Carrying Value | |||||
Debt Instrument [Line Items] | |||||
Debt related to senior notes | 914,223 | 832,351 | |||
Capital efficient notes | Notes Issued By PartnerRe Finance B LLC | |||||
Debt Instrument [Line Items] | |||||
Commitment | 500,000 | ||||
Capital efficient notes | Notes Issued By PartnerRe Finance B LLC | Fair Value | |||||
Debt Instrument [Line Items] | |||||
Debt related to junior subordinated notes | 523,685 | 0 | |||
Capital efficient notes | Notes Issued By PartnerRe Finance B LLC | Carrying Value | |||||
Debt Instrument [Line Items] | |||||
Debt related to junior subordinated notes | 494,251 | 0 | |||
Capital efficient notes | Notes Issued By PartnerRe Finance II Inc | |||||
Debt Instrument [Line Items] | |||||
Commitment | 62,484 | 62,000 | $ 250,000 | ||
Capital efficient notes | Notes Issued By PartnerRe Finance II Inc | Fair Value | |||||
Debt Instrument [Line Items] | |||||
Debt related to junior subordinated notes | 61,013 | 55,866 | |||
Capital efficient notes | Notes Issued By PartnerRe Finance II Inc | Carrying Value | |||||
Debt Instrument [Line Items] | |||||
Debt related to junior subordinated notes | $ 70,089 | $ 70,089 |
Debt - Narrative (Details)
Debt - Narrative (Details) € in Thousands, $ in Thousands | Jul. 19, 2019USD ($) | Jun. 06, 2019USD ($) | Mar. 13, 2009USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2020EUR (€) | Jun. 19, 2019USD ($) | Sep. 15, 2016 | Mar. 10, 2010USD ($) | Nov. 30, 2006USD ($) |
Debt Instrument [Line Items] | |||||||||||
Loss on redemption of debt | $ 0 | $ (15,175) | $ 0 | ||||||||
Proceeds from Issuance of Subordinated Long-term Debt | $ 494,000 | ||||||||||
Senior Notes | Notes Issued By Partner Re Finance B LLC | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Commitment | $ 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 PartnerRe Finance B LLC | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Commitment | $ 500,000 | $ 500,000 | |||||||||
Stated interest rate of debt instrument | 3.70% | 3.70% | 3.70% | ||||||||
Debt issuance percentage of fair value | 99.783% | ||||||||||
Issuance of senior notes | $ 496,000 | ||||||||||
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% | 3.70% | 5.50% | ||||||||
2016 Euro Senior Notes | Notes Issued By PartnerRe Ireland Finance DAC | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Commitment | € | € 750,000 | ||||||||||
Stated interest rate of debt instrument | 1.25% | 1.25% | |||||||||
Debt issuance percentage of fair value | 99.144% | ||||||||||
Maturity date | Sep. 15, 2026 | ||||||||||
Payment frequency | annually | ||||||||||
Date of first required interest payment | Sep. 15, 2017 | ||||||||||
Capital efficient notes | Notes Issued By PartnerRe Finance II Inc | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Commitment | $ 62,484 | $ 62,000 | $ 250,000 | ||||||||
Amount of debt extinguished | $ 1,000 | $ 187,000 | |||||||||
Maturity date range start | Dec. 1, 2016 | ||||||||||
Capital efficient notes | Notes Issued By PartnerRe Finance II Inc | June 1, 2007 - December 1, 2016 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rate of debt instrument | 6.44% | 6.44% | |||||||||
Payment frequency | semi-annually | ||||||||||
Capital efficient notes | Notes Issued By PartnerRe 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 | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.325% | ||||||||||
Capital efficient notes | Notes Issued To Partner Re Finance II Inc | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Commitment | $ 258,000 | ||||||||||
Carrying amount at balance sheet date | $ 70,000 | ||||||||||
Amount of debt extinguished | $ 1,000 | $ 187,000 | |||||||||
Maturity date range end | Dec. 1, 2066 | ||||||||||
Capital efficient notes | Notes Issued By PartnerRe Finance B LLC | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Commitment | $ 500,000 | ||||||||||
Stated interest rate of debt instrument | 4.50% | 4.50% | |||||||||
Maturity date | Oct. 1, 2050 | ||||||||||
Payment frequency | semi-annually | ||||||||||
Date of first required interest payment | Apr. 1, 2021 | ||||||||||
Maturity date range start | Oct. 1, 2030 | ||||||||||
Capital efficient notes | Notes Issued By PartnerRe Finance B LLC | October 1, 2030 To October 1, 2050 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Reference rate for variable rate interest payments | five-year treasury rate | ||||||||||
Capital efficient notes | Notes Issued By PartnerRe Finance B LLC | April 1, 2021 - October 1, 2030 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rate of debt instrument | 4.50% | 4.50% | |||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.815% | ||||||||||
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, 2020 | Dec. 31, 2019 |
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, 2020 | Dec. 31, 2019 | |
Class of Stock [Line Items] | ||||
Preferred shares, par value per share | $ 1 | $ 1 | ||
Preferred shares, shares outstanding | 25,489,636 | 28,169,062 | ||
Underwriting discounts and commissions | [1] | $ 21,300 | ||
Aggregate liquidation preference | $ 637,241 | $ 704,227 | ||
Restriction on common dividends | 67.00% | 67.00% | ||
Preferred shares, shares issued | 25,489,636 | 28,169,062 | ||
Series F 5.875% non-cumulative | ||||
Class of Stock [Line Items] | ||||
Preferred shares, shares outstanding | 2,679,426 | |||
Underwriting discounts and commissions | $ 2,000 | |||
Aggregate liquidation preference | $ 67,000 | |||
Preferred Stock, Redemption Price Per Share | $ 25 | |||
Preferred Stock Dividend Accrued at Redemption | $ 1,000 | |||
Series G 6.5% cumulative | ||||
Class of Stock [Line Items] | ||||
Preferred shares, shares outstanding | 6,415,264 | |||
Annual dividend rate | 6.50% | |||
Underwriting discounts and commissions | [1] | $ 5,400 | ||
Aggregate liquidation preference | $ 160,400 | |||
Liquidation preference per share | $ 25 | |||
Preferred Stock, Redemption Price Per Share | $ 25 | |||
Series H 7.25% cumulative | ||||
Class of Stock [Line Items] | ||||
Preferred shares, shares outstanding | 11,753,798 | |||
Annual dividend rate | 7.25% | |||
Underwriting discounts and commissions | [1] | $ 9,500 | ||
Aggregate liquidation preference | $ 293,800 | |||
Liquidation preference per share | $ 25 | |||
Preferred Stock, Redemption Price Per Share | $ 25 | |||
Series I 5.875% non-cumulative | ||||
Class of Stock [Line Items] | ||||
Preferred shares, shares outstanding | 7,320,574 | |||
Annual dividend rate | 5.875% | |||
Underwriting discounts and commissions | [1] | $ 6,400 | ||
Aggregate liquidation preference | $ 183,000 | |||
Liquidation preference per share | $ 25 | |||
Preferred Stock, Redemption Price Per Share | $ 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, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2020SGD ($) |
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 | $ 1,226 | ||||
Statutory net income (loss) | (45) | $ 863 | $ 138 | ||
Required statutory capital and surplus | 2,386 | 2,249 | |||
Actual statutory capital and surplus | 5,072 | 4,903 | |||
PartnerRe Europe | |||||
Statutory Accounting Practices [Line Items] | |||||
Statutory net income (loss) | 237 | 188 | 1 | ||
Required statutory capital and surplus | 1,618 | 1,535 | |||
Actual statutory capital and surplus | $ 2,417 | 2,218 | |||
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) | $ 28 | (106) | (197) | ||
Required statutory capital and surplus | 1,080 | 911 | |||
Actual statutory capital and surplus | $ 1,169 | 1,080 | |||
PartnerRe Asia | |||||
Statutory Accounting Practices [Line Items] | |||||
Percentage of basic capital requirement for payment of dividends | 120.00% | 120.00% | |||
Statutory net income (loss) | $ (6) | 17 | $ (40) | ||
Required statutory capital and surplus | 47 | 53 | $ 25 | ||
Actual statutory capital and surplus | $ 249 | $ 211 |
Taxation - Components of income
Taxation - Components of income tax expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current income tax expense | |||
Current income tax (benefit) expense | $ (52,391) | $ 76,968 | $ 27,015 |
Deferred income tax expense (benefit) | |||
Deferred income tax expense (benefit) | 35,372 | (21,582) | (37,062) |
Unrecognized tax expense (benefit) | |||
Unrecognized tax (benefit) expense | 3,928 | (2,850) | 1,113 |
Total income tax expense | |||
Total income tax (benefit) expense | (13,091) | 52,536 | (8,934) |
Income before taxes by jurisdiction | |||
Domestic (Bermuda) | 3,894 | 715,912 | 33,759 |
Foreign | 237,204 | 273,372 | (128,687) |
Income (loss) before taxes | 241,098 | 989,284 | (94,928) |
US | |||
Current income tax expense | |||
Current income tax (benefit) expense | (97,155) | 12,899 | (6,872) |
Deferred income tax expense (benefit) | |||
Deferred income tax expense (benefit) | 60,932 | (25,850) | (40,318) |
Unrecognized tax expense (benefit) | |||
Unrecognized tax (benefit) expense | 0 | 0 | 0 |
Total income tax expense | |||
Total income tax (benefit) expense | (36,223) | (12,951) | (47,190) |
Non-US | |||
Current income tax expense | |||
Current income tax (benefit) expense | 44,764 | 64,069 | 33,887 |
Deferred income tax expense (benefit) | |||
Deferred income tax expense (benefit) | (25,560) | 4,268 | 3,256 |
Unrecognized tax expense (benefit) | |||
Unrecognized tax (benefit) expense | 3,928 | (2,850) | 1,113 |
Total income tax expense | |||
Total income tax (benefit) expense | $ 23,132 | $ 65,487 | $ 38,256 |
Taxation - Reconciliation of ef
Taxation - Reconciliation of effective tax rate (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
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 | 15.50% | 6.50% | 14.30% |
Impact of foreign exchange (losses) gains | (8.10%) | (0.50%) | (4.20%) |
Unrecognized tax (benefit) expense | 1.60% | 0.20% | (1.20%) |
Tax-exempt income and expenses not deductible | (1.40%) | (0.60%) | 7.30% |
Foreign branch tax | (3.30%) | (1.20%) | (4.10%) |
Valuation allowance | 3.40% | 0.70% | (12.30%) |
Outside basis difference in subsidiary | 0.00% | 0.00% | 6.70% |
Other | (13.10%) | 0.20% | 2.90% |
Actual tax rate | (5.40%) | 5.30% | 9.40% |
Taxation - Components of net ta
Taxation - Components of net tax assets and liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Components Of Net Tax Assets And Liabilities [Abstract] | ||||
Net tax assets | $ 182,077 | $ 179,813 | ||
Net tax liabilities | (131,621) | (135,966) | ||
Net tax assets (liabilities) | 50,456 | 43,847 | ||
Net Tax Liabilities By Type [Abstract] | ||||
Net current tax assets | 112,992 | 65,000 | ||
Net deferred tax liabilities | (52,263) | (15,464) | ||
Net unrecognized tax benefit | (10,273) | (5,689) | $ (8,743) | $ (7,941) |
Net tax assets (liabilities) | $ 50,456 | $ 43,847 |
Taxation - Components of tax as
Taxation - Components of tax assets and tax liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets | ||
Discounting of loss reserves and adjustment to life policy reserves | $ 11,741 | $ 15,924 |
Foreign tax credit carryforwards | 198,263 | 173,936 |
Tax loss carryforwards | 57,485 | 80,523 |
Unearned premiums | 34,760 | 37,226 |
Unrealized appreciation and timing differences on foreign exchange revaluations | 20,493 | 0 |
Other deferred tax assets | 42,754 | 50,738 |
Deferred tax assets before valuation allowance | 365,496 | 358,347 |
Valuation allowance | (211,167) | (186,907) |
Deferred tax assets | 154,329 | 171,440 |
Deferred tax liabilities | ||
Deferred acquisition costs | 67,850 | 64,140 |
Goodwill and other intangibles | 58,224 | 61,773 |
Equalization reserves | 7,366 | 6,416 |
Unrealized appreciation and timing differences on investments | 46,389 | 26,752 |
Unrealized appreciation and timing differences on foreign exchange revaluations | 0 | 18,830 |
Other deferred tax liabilities | 26,763 | 8,993 |
Deferred tax liabilities | 206,592 | 186,904 |
Net deferred tax liabilities | $ (52,263) | $ (15,464) |
Taxation - Income tax uncertain
Taxation - Income tax uncertainties (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Contingency [Line Items] | |||
January 1 | $ 5,689 | $ 8,743 | $ 7,941 |
Changes in tax positions taken during a prior period - decrease | (4,229) | ||
Changes in tax positions taken during a prior period - increase | 3,870 | 764 | |
Tax positions taken during the current period - increase | 0 | 1,379 | 346 |
Change as a result of a lapse in the statute of limitations | 0 | 0 | 0 |
Impact of the change in foreign currency exchange rates | 714 | ||
Impact of the change in foreign currency exchange rates | (204) | (308) | |
December 31 | 10,273 | 5,689 | 8,743 |
Unrecognized tax benefits impacting effective tax rate | 0 | 0 | 0 |
Unrecognized tax benefits that, if recognized, would impact the effective tax rate | |||
Income Tax Contingency [Line Items] | |||
January 1 | 4,185 | 6,639 | 6,460 |
Changes in tax positions taken during a prior period - decrease | (3,560) | ||
Changes in tax positions taken during a prior period - increase | 1,415 | 73 | |
Tax positions taken during the current period - increase | 0 | 1,258 | 346 |
Change as a result of a lapse in the statute of limitations | 0 | 0 | 0 |
Impact of the change in foreign currency exchange rates | 480 | ||
Impact of the change in foreign currency exchange rates | (152) | (240) | |
December 31 | 6,080 | 4,185 | 6,639 |
Interest and penalties recognized on the above | |||
Income Tax Contingency [Line Items] | |||
January 1 | 1,504 | 2,104 | 1,481 |
Changes in tax positions taken during a prior period - decrease | (669) | ||
Changes in tax positions taken during a prior period - increase | 2,455 | 691 | |
Tax positions taken during the current period - increase | 0 | 121 | 0 |
Change as a result of a lapse in the statute of limitations | 0 | 0 | 0 |
Impact of the change in foreign currency exchange rates | 234 | ||
Impact of the change in foreign currency exchange rates | (52) | (68) | |
December 31 | $ 4,193 | $ 1,504 | $ 2,104 |
Taxation - Narrative (Details)
Taxation - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Taxation - Other Details [Line Items] | |||
Expected tax rate | 0.00% | 0.00% | 0.00% |
Valuation allowance on deferred tax assets | $ 211,167 | $ 186,907 | |
Amount of unrecognized tax benefit expected to reverse within 12 months | $ 5,000 | ||
CARES Act impact on effective tax rate | (13.10%) | 0.20% | 2.90% |
Ireland | |||
Taxation - Other Details [Line Items] | |||
Valuation allowance of foreign tax credit carryforwards | $ 198,000 | $ 174,000 | |
Hong Kong | |||
Taxation - Other Details [Line Items] | |||
Deferred tax asset on tax loss carryforwards | 2,000 | 2,000 | |
Singapore | |||
Taxation - Other Details [Line Items] | |||
Deferred tax asset on tax loss carryforwards | 23,000 | 18,000 | |
US | |||
Taxation - Other Details [Line Items] | |||
Income tax benefit resulting from reduction in corporate tax rate | 35,000 | ||
Valuation allowance on deferred tax assets | $ 7,000 | 8,000 | |
Deferred tax asset on tax loss carryforwards | 52,000 | ||
CARES Act impact on effective tax rate | 14.40% | ||
Canada | |||
Taxation - Other Details [Line Items] | |||
Valuation allowance on deferred tax assets | $ 3,000 | 5,000 | |
United Kingdom | |||
Taxation - Other Details [Line Items] | |||
Valuation allowance on deferred tax assets | 3,000 | ||
France | |||
Taxation - Other Details [Line Items] | |||
Deferred tax asset on tax loss carryforwards | $ 13,000 | ||
Switzerland | |||
Taxation - Other Details [Line Items] | |||
Income tax benefit resulting from reduction in corporate tax rate | $ 6,000 | ||
Change in enacted tax rate, impact on effective tax rate | 0.60% |
Share-Based Incentives Class B
Share-Based Incentives Class B rollforward (Details) - shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
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 | 281,768 | 345,644 |
Granted | 167,202 | 117,929 |
Purchased | 38,838 | 18,875 |
Repurchased | (213,144) | (200,680) |
Net expirations and exercises | 0 | |
Shares outstanding, end of year | 274,664 | 281,768 |
Restricted Class B shares | Class B Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares outstanding, beginning of year | 179,332 | 161,810 |
Granted | 167,202 | 117,929 |
Purchased | 0 | 0 |
Repurchased | (129,583) | (100,407) |
Expiration of restricted period | (27,785) | |
Shares outstanding, end of year | 189,166 | 179,332 |
Unrestricted Class B shares | Class B Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares outstanding, beginning of year | 102,436 | 183,834 |
Granted | 0 | 0 |
Purchased | 38,838 | 18,875 |
Repurchased | (83,561) | (100,273) |
Exercised | 27,785 | |
Shares outstanding, end of year | 85,498 | 102,436 |
Share-Based Incentives Narrativ
Share-Based Incentives Narrative (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($)$ / shares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | ||
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 | |||
Requisite service period, Class B shares | 3 years | |||
Shared Based Compensation, Minimum Multiplier of Target Value | 4 | |||
Share based compensation expense | $ 11,000 | $ 10,000 | $ 4,000 | |
Accounts payable, accrued expenses and other | 612,069 | 517,084 | ||
Redemption of Class B common shares | [1] | (5,157) | (6,540) | $ 0 |
Class B Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Accounts payable, accrued expenses and other | 15,000 | 13,000 | ||
Redemption of Class B common shares | (11,000) | (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) | (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 | $ (5,000) | $ (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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Disclosure - Defined contribution plan | ||||
Incurred expense for defined contribution arrangements | $ 13,000 | $ 13,000 | $ 13,000 | |
Zurich Plan | ||||
Funded status: | ||||
Unfunded pension obligation at beginning of year | 44,442 | 37,105 | ||
Change in pension obligation: | ||||
Service cost | 10,961 | 8,619 | ||
Interest cost | 520 | 1,584 | ||
Plan participants’ contributions | 4,056 | 3,604 | ||
Actuarial loss | 12,023 | 18,286 | ||
Plan amendments | 0 | 3,551 | ||
Benefits paid | (3,910) | (2,352) | ||
Foreign currency adjustments | 20,550 | 2,828 | ||
Change in pension obligation | 44,200 | 36,120 | ||
Change in fair value of plan assets: | ||||
Actual return on plan assets | 2,820 | 18,140 | ||
Employer contributions | 7,941 | 7,193 | ||
Plan participants’ contributions | 4,056 | 3,604 | ||
Benefits paid | (3,910) | (2,352) | ||
Foreign currency adjustments | 15,685 | 2,198 | ||
Change in fair value of plan assets | 26,592 | 28,783 | ||
Funded status: | ||||
Unfunded pension obligation at end of year | 62,050 | 44,442 | $ 37,105 | |
Additional information: | ||||
Projected benefit obligation at end of year | [1] | 242,112 | 197,912 | |
Accumulated pension obligation at end of year | [2] | $ 231,419 | $ 189,089 | |
Pension obligation - assumptions used | ||||
Discount rate | 0.10% | 0.25% | 1.00% | |
Interest crediting rate | 1.00% | 1.00% | 1.00% | |
Rate of compensation increase | 2.00% | 2.00% | 2.25% | |
Net periodic benefit cost - assumptions used | ||||
Discount rate | 0.25% | 1.00% | 0.75% | |
Interest crediting rate | 1.00% | 1.00% | 1.00% | |
Expected return on plan assets | 3.50% | 3.50% | 0.75% | |
Rate of compensation increase | 2.00% | 2.00% | 2.25% | |
Defined Benefit Plan Estimated Future Benefit Payments Abstract | ||||
2021 | $ 8,040 | |||
2022 | 7,478 | |||
2023 | 8,351 | |||
2024 | 8,727 | |||
2025 | 9,289 | |||
2026 to 2029 | 52,579 | |||
Significant other observable inputs (Level 2) | Insured funds | Zurich Plan | ||||
Additional information: | ||||
Fair value of plan assets at end of year | $ 180,062 | $ 153,470 | ||
Minimum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Contribution Plans, Accumulated Benefits, Vesting Period | 0 years | |||
Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Contribution Plans, Accumulated Benefits, Vesting Period | 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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Incurred expense for defined contribution arrangements | $ 13,000 | $ 13,000 | $ 13,000 | |
Zurich Plan | ||||
Additional information: | ||||
Unfunded pension obligation | (62,050) | (44,442) | (37,105) | |
Amounts recognized in AOCI | 30,000 | 16,000 | ||
Unfunded pension obligation, tax impact | 8,000 | 4,000 | ||
Net periodic benefit cost | 5,000 | 5,000 | $ 10,000 | |
Expected employer contributions in 2020 | 8,000 | |||
Plan amendments | $ 0 | $ 3,551 | ||
Coverage ration on partially insured pension scheme | 112.00% | 115.00% | 111.00% | |
Actual return on plan assets | $ 2,820 | $ 18,140 | ||
Actual return on plan assets recognized in Net income | 5,000 | |||
Actual return on Assets, reduction of the unfunded pension obligation | 13,000 | |||
Defined Benefit Plan, Benefit Obligation, Period Increase (Decrease) | 44,200 | 36,120 | ||
Foreign currency adjustments | 20,550 | 2,828 | ||
Foreign currency adjustments | 15,685 | 2,198 | ||
Employer contributions | 7,941 | 7,193 | ||
Change in fair value of plan assets | 26,592 | 28,783 | ||
Zurich Plan | Significant other observable inputs (Level 2) | Insured funds | ||||
Additional information: | ||||
Fair value of plan assets at end of year | $ 180,062 | $ 153,470 |
Commitments and Contingencies -
Commitments and Contingencies - Concentrations of Credit Risk (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Concentration Risk [Line Items] | ||
Fixed maturities, at fair value | $ 12,786,380 | $ 10,680,714 |
Provision for uncollectible premiums receivable | 9,000 | 7,000 |
Funds Held under Reinsurance Agreements, Allowance for Credit loss | 7,000 | 0 |
Deposit contracts, allowance for credit loss | 2,000 | |
Premium Receivable, Allowance for Credit Loss, Period Increase (Decrease) | 2,000 | |
Non US sovereign government supranational and government related | ||
Concentration Risk [Line Items] | ||
Fixed maturities, at fair value | 2,180,762 | 3,255,154 |
Fixed maturities | Non US sovereign government supranational and government related | The World Bank | ||
Concentration Risk [Line Items] | ||
Fair Value, Concentration of Risk, Investments | $ 1,110,000 | |
Fixed maturities | Canadian goverment | ||
Concentration Risk [Line Items] | ||
Fair Value, Concentration of Risk, Investments | $ 776,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Lease Arrangements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Commitments and Contingencies Disclosure [Abstract] | |||
Operating Lease, Cost | $ 16,403 | $ 15,893 | |
Variable Lease, Cost | 724 | 2,598 | |
Sublease Income | 1,194 | 1,515 | |
Lease, Cost | 15,933 | 16,976 | |
Operating Lease, Right-of-Use Asset | 64,746 | [1] | 75,774 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 852 | 86,157 | |
Operating Lease, Payments | $ 16,495 | $ 11,305 | |
Operating Lease, Weighted Average Remaining Lease Term | 9 years 1 month 6 days | [2] | 9 years 2 months 12 days |
Operating Lease, Weighted Average Discount Rate, Percent | 2.70% | [3] | 2.60% |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2021 | $ 13,211 | ||
2022 | 10,900 | ||
2023 | 10,264 | ||
2024 | 9,179 | ||
2025 | 8,621 | ||
2026 to 2038 | 32,905 | ||
Discount | (9,617) | ||
Total discounted operating lease liabilities | $ 75,463 | [4] | $ 85,777 |
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract | 10 years | ||
Operating lease, balance sheet location | us-gaap:AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent | us-gaap:AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent | |
Operating Lease, Expense - Not yet commenced | $ 30,000 | ||
[1] | Included in Other assets in the Consolidated Balance Sheets | ||
[2] | 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 | ||
[3] | 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 | ||
[4] | Included in Accounts payable, accrued expenses and other |
Commitments and Contingencies_3
Commitments and Contingencies - Other Agreements (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Strategic Investments [Member] | ||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
2021 | $ 318 | |
2022 | 303 | |
2023 | 147 | |
2024 | 25 | |
Total | 793 | |
Technology Equipment [Member] | ||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
2021 | 27 | |
2022 | 5 | |
Total | 38 | |
Structured Letter Of Credit [Member] | ||
Commitments and Contingencies Other Details [Line Items] | ||
LOC obligations guaranteed as of balance sheet date | $ 69 | $ 69 |
Line Of Credit Facility Term | 10 years | |
Maturity date of facility | Dec. 31, 2024 |
Credit Agreements (Details)
Credit Agreements (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Line of Credit Facility [Line Items] | |
Total amount of credit facilities available | $ 752 |
Combined Credit Facility | |
Line of Credit Facility [Line Items] | |
Total amount of credit facilities available | 400 |
Amount of unsecured borrowing capacity | 100 |
Committed Secured Letter Of Credit Facility | |
Line of Credit Facility [Line Items] | |
Total amount of credit facilities available | $ 250 |
Maturity date of facility | Dec. 31, 2022 |
Committed Secured Letter Of Credit Facility B [Member] | |
Line of Credit Facility [Line Items] | |
Total amount of credit facilities available | $ 100 |
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 | $ 508 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Almacantar | Almacantar Group S.A. | |||||
Related Party Transaction [Line Items] | |||||
Ownership percentage | 36.00% | ||||
Exor N.V. | |||||
Related Party Transaction [Line Items] | |||||
Related Party Advisory Services Agreement | $ 500 | $ 500 | $ 500 | ||
Exor N.V. | Real estate services [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related Party Consulting Services Agreement | 310 | 221 | 45 | ||
Exor N.V. | Investment advisory services [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related Party Advisory Services Agreement | 259 | 254 | 273 | ||
Exor N.V. | Private equity funds | |||||
Related Party Transaction [Line Items] | |||||
Payments to acquire investments | $ 500,000 | ||||
Investment carrying value | 1,039,000 | 948,000 | |||
Net realized and unrealized gain (loss) on related party investment | 91,000 | 385,000 | 12,000 | ||
Exor N.V. | Other invested assets | |||||
Related Party Transaction [Line Items] | |||||
Investment carrying value | 51,000 | 32,000 | |||
Retained earnings | |||||
Related Party Transaction [Line Items] | |||||
Dividends on common shares | $ 50,000 | $ 199,386 | $ 47,835 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) - 12 months ended Dec. 31, 2020 | 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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Segment Reporting [Line Items] | ||||
Gross premiums written | $ 6,875,925 | $ 7,285,320 | $ 6,299,929 | |
Net premiums written | 6,300,858 | 6,909,058 | 5,803,364 | |
(Increase) decrease in unearned premiums | 235,968 | (383,840) | (289,554) | |
Net premiums earned | 6,536,826 | 6,525,218 | 5,513,810 | |
Losses and loss expenses | (5,335,000) | (4,923,000) | (4,194,000) | |
Acquisition costs | (1,356,118) | (1,455,462) | (1,237,464) | |
Technical result | (154,000) | 147,000 | 83,000 | |
Other income | 13,491 | 15,321 | 50,127 | |
Other expenses | (355,647) | (369,969) | (305,568) | |
Underwriting result | (497,000) | (208,000) | (173,000) | |
Net investment income | 360,668 | 448,538 | 415,921 | |
Net realized and unrealized investment gains (losses) | 454,319 | 886,670 | (389,632) | |
Interest expense | (39,200) | (40,150) | (43,152) | |
Loss on redemption of debt | 0 | (15,175) | 0 | |
Amortization of intangible assets | (9,988) | (11,434) | (35,473) | |
Net foreign exchange (gains) losses | (51,964) | (86,760) | 119,151 | |
Income tax expense (benefit) | 13,091 | (52,536) | 8,934 | |
Interest in earnings of equity method investments | 23,611 | 15,643 | 10,607 | |
Net income (loss) | 254,189 | 936,748 | (85,994) | |
Non Life | ||||
Segment Reporting [Line Items] | ||||
Gross premiums written | 5,376,703 | 5,792,542 | 5,064,780 | |
Net premiums written | 4,825,919 | [1] | 5,438,807 | 4,592,282 |
(Increase) decrease in unearned premiums | 229,000 | (381,000) | (290,000) | |
Net premiums earned | 5,054,529 | [1] | 5,058,056 | 4,301,862 |
Losses and loss expenses | (4,017,000) | (3,663,000) | (3,169,000) | |
Acquisition costs | (1,254,000) | (1,306,000) | (1,108,000) | |
Technical result | (216,000) | 89,000 | 25,000 | |
Other income | (1,000) | (1,000) | 30,000 | |
Other expenses | (87,000) | (108,000) | (102,000) | |
Underwriting result | $ (304,000) | $ (20,000) | $ (47,000) | |
Reinsurance Ratios [Abstract] | ||||
Loss ratio | 79.50% | [2] | 72.40% | 73.70% |
Acquisition ratio | 24.80% | [3] | 25.80% | 25.80% |
Technical ratio | 104.30% | 98.20% | 99.50% | |
Other expense ratio | 1.70% | [4] | 2.10% | 2.40% |
Combined Ratio | 106.00% | [5] | 100.30% | 101.90% |
Non Life | P&C | ||||
Segment Reporting [Line Items] | ||||
Gross premiums written | $ 3,442,000 | $ 3,579,000 | $ 3,015,000 | |
Net premiums written | 3,044,000 | 3,302,000 | 2,722,000 | |
(Increase) decrease in unearned premiums | 119,000 | (231,000) | (187,000) | |
Net premiums earned | 3,163,000 | 3,071,000 | 2,535,000 | |
Losses and loss expenses | (2,389,000) | (2,167,000) | (2,073,000) | |
Acquisition costs | (784,000) | (783,000) | (606,000) | |
Technical result | (10,000) | 121,000 | (144,000) | |
Other income | (1,000) | (1,000) | 30,000 | |
Other expenses | (61,000) | (80,000) | (75,000) | |
Underwriting result | $ (72,000) | $ 40,000 | $ (189,000) | |
Reinsurance Ratios [Abstract] | ||||
Loss ratio | 75.50% | [2] | 70.60% | 81.80% |
Acquisition ratio | 24.80% | [3] | 25.50% | 23.90% |
Technical ratio | 100.30% | 96.10% | 105.70% | |
Other expense ratio | 1.90% | [4] | 2.60% | 3.00% |
Combined Ratio | 102.20% | [5] | 98.70% | 108.70% |
Non Life | Specialty | ||||
Segment Reporting [Line Items] | ||||
Gross premiums written | $ 1,935,000 | $ 2,213,000 | $ 2,050,000 | |
Net premiums written | 1,782,000 | 2,137,000 | 1,870,000 | |
(Increase) decrease in unearned premiums | 110,000 | (150,000) | (103,000) | |
Net premiums earned | 1,892,000 | 1,987,000 | 1,767,000 | |
Losses and loss expenses | (1,628,000) | (1,496,000) | (1,096,000) | |
Acquisition costs | (470,000) | (523,000) | (502,000) | |
Technical result | (206,000) | (32,000) | 169,000 | |
Other income | 0 | 0 | 0 | |
Other expenses | (26,000) | (28,000) | (27,000) | |
Underwriting result | $ (232,000) | $ (60,000) | $ 142,000 | |
Reinsurance Ratios [Abstract] | ||||
Loss ratio | 86.00% | [2] | 75.30% | 62.00% |
Acquisition ratio | 24.80% | [3] | 26.30% | 28.40% |
Technical ratio | 110.80% | 101.60% | 90.40% | |
Other expense ratio | 1.40% | [4] | 1.40% | 1.50% |
Combined Ratio | 112.20% | [5] | 103.00% | 91.90% |
Life and Health | ||||
Segment Reporting [Line Items] | ||||
Gross premiums written | $ 1,499,222 | $ 1,492,778 | $ 1,235,149 | |
Net premiums written | 1,474,939 | 1,470,251 | 1,211,082 | |
(Increase) decrease in unearned premiums | 7,000 | (3,000) | 1,000 | |
Net premiums earned | 1,482,297 | 1,467,162 | 1,211,948 | |
Losses and loss expenses | (1,318,000) | (1,263,000) | (1,025,000) | |
Acquisition costs | (102,000) | (149,000) | (129,000) | |
Technical result | 62,000 | 55,000 | 58,000 | |
Other income | 13,000 | 15,000 | 13,000 | |
Other expenses | (73,000) | (69,000) | (51,000) | |
Underwriting result | 2,000 | 1,000 | 20,000 | |
Net investment income | 68,000 | 72,000 | 66,000 | |
Allocated underwriting result | 70,000 | 73,000 | 86,000 | |
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 | 0 | 3,000 | 0 | |
Acquisition costs | 0 | 0 | 0 | |
Technical result | 0 | 3,000 | 0 | |
Other income | 1,000 | 1,000 | 7,000 | |
Other expenses | (196,000) | (193,000) | (153,000) | |
Net investment income | 293,000 | 377,000 | 350,000 | |
Net realized and unrealized investment gains (losses) | 454,000 | 887,000 | (390,000) | |
Interest expense | (39,000) | (40,000) | (43,000) | |
Loss on redemption of debt | (15,000) | |||
Amortization of intangible assets | (10,000) | (12,000) | (35,000) | |
Net foreign exchange (gains) losses | (52,000) | (87,000) | 119,000 | |
Income tax expense (benefit) | 13,000 | (53,000) | 9,000 | |
Interest in earnings of equity method investments | $ 24,000 | $ 16,000 | $ 11,000 | |
[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] | 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 (Distributi
Segment Information (Distribution of gross and net written premium) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | $ 6,875,925 | $ 7,285,320 | $ 6,299,929 |
Percentage Distribution of gross premiums written | 100.00% | 100.00% | 100.00% |
North America | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | $ 3,794,000 | $ 3,752,000 | $ 2,929,000 |
Percentage Distribution of gross premiums written | 55.00% | 51.00% | 47.00% |
Europe | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | $ 1,921,000 | $ 2,155,000 | $ 2,152,000 |
Percentage Distribution of gross premiums written | 28.00% | 30.00% | 34.00% |
Asia, Australia and New Zealand | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | $ 806,000 | $ 835,000 | $ 699,000 |
Percentage Distribution of gross premiums written | 12.00% | 11.00% | 11.00% |
Latin America and the Caribbean | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | $ 220,000 | $ 264,000 | $ 260,000 |
Percentage Distribution of gross premiums written | 3.00% | 4.00% | 4.00% |
Middle East, Africa, Russia and the Commonwealth of Independent States (CIS) | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | $ 135,000 | $ 279,000 | $ 260,000 |
Percentage Distribution of gross premiums written | 2.00% | 4.00% | 4.00% |
P&C | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | $ 3,442,000 | $ 3,579,000 | $ 3,015,000 |
P&C | Casualty | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | 1,430,000 | 1,394,000 | 1,052,000 |
P&C | Property | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | 641,000 | 644,000 | 615,000 |
P&C | Catastrophe | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | 545,000 | 537,000 | 478,000 |
P&C | Motor | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | 158,000 | 400,000 | 308,000 |
P&C | US Health | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | 379,000 | 391,000 | 405,000 |
P&C | Multiline & Other | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | 289,000 | 213,000 | 157,000 |
Specialty | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | 1,935,000 | 2,213,000 | 2,050,000 |
Specialty | Casualty | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | 4,000 | 13,000 | 42,000 |
Specialty | Property | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | 173,000 | 151,000 | 112,000 |
Specialty | Multiline & Other | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | 152,000 | 276,000 | 307,000 |
Specialty | Financial Risks | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | 568,000 | 587,000 | 549,000 |
Specialty | Agriculture | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | 468,000 | 483,000 | 506,000 |
Specialty | Aviation & space | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | 219,000 | 286,000 | 228,000 |
Specialty | Energy Reinsurance | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | 192,000 | 183,000 | 79,000 |
Specialty | Marine | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | 142,000 | 132,000 | 103,000 |
Specialty | Engineering | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | 17,000 | 102,000 | 124,000 |
Life and Health | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | $ 1,499,222 | $ 1,492,778 | $ 1,235,149 |
Segment Information (Broker det
Segment Information (Broker details) (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
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 | 30.00% | 28.00% | 22.00% |
Aon Group (including the Benfield Group) | |||
Economic Dependence [Line Items] | |||
Broker Percentage Of Gross Written Premium | 21.00% | 22.00% | 22.00% |
Non Life | P&C | |||
Economic Dependence [Line Items] | |||
Broker Percentage Of Gross Written Premium | 64.00% | 60.00% | 53.00% |
Non Life | Specialty | |||
Economic Dependence [Line Items] | |||
Broker Percentage Of Gross Written Premium | 64.00% | 62.00% | 52.00% |
Life and Health | |||
Economic Dependence [Line Items] | |||
Broker Percentage Of Gross Written Premium | 6.00% | 8.00% | 11.00% |
SCHEDULE I - Consolidated Sum_2
SCHEDULE I - Consolidated Summary of Investments Other Than Investments in Related Parties (Details) $ in Thousands | Dec. 31, 2020USD ($) | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Fair Value | $ 16,767,406 | |
Amount at which shown in the balance sheet | 17,734,889 | |
Fixed maturities | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Cost | 12,341,937 | |
Fair Value | 12,786,380 | |
Amount at which shown in the balance sheet | 12,786,380 | |
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 | 2,386,579 | [1] |
Fair Value | 2,409,540 | |
Amount at which shown in the balance sheet | 2,409,540 | |
U.S. states, territories and municipalities | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Cost | 110,155 | [1] |
Fair Value | 137,968 | |
Amount at which shown in the balance sheet | 137,968 | |
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 | 2,076,962 | [1] |
Fair Value | 2,180,762 | |
Amount at which shown in the balance sheet | 2,180,762 | |
Corporate bonds | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Cost | 3,185,741 | [1] |
Fair Value | 3,341,854 | |
Amount at which shown in the balance sheet | 3,341,854 | |
Asset-backed securities | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Cost | 17,537 | [1] |
Fair Value | 17,528 | |
Amount at which shown in the balance sheet | 17,528 | |
Residential mortgage-backed securities | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Cost | 4,564,926 | [1] |
Fair Value | 4,698,728 | |
Amount at which shown in the balance sheet | 4,698,728 | |
Other mortgage-backed securities | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Cost | 37 | [1] |
Fair Value | 0 | |
Amount at which shown in the balance sheet | 0 | |
Equities | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Cost | 847,066 | [1] |
Fair Value | 1,496,441 | |
Amount at which shown in the balance sheet | 1,496,441 | |
Banks, trust and insurance companies | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Cost | 2,727 | |
Fair Value | 3,646 | |
Amount at which shown in the balance sheet | 3,646 | |
Industrial, miscellaneous and all other | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Cost | 798,966 | |
Fair Value | 1,449,924 | |
Amount at which shown in the balance sheet | 1,449,924 | |
Short-term investments | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Cost | 416,059 | [1] |
Fair Value | 416,350 | |
Amount at which shown in the balance sheet | 416,350 | |
Other invested assets | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Fair Value | 2,068,235 | [2] |
Amount at which shown in the balance sheet | 2,967,738 | |
Equity method investments | 900,000 | |
Real Estate Investment | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Fair Value | 0 | |
Amount at which shown in the balance sheet | 67,980 | |
Nonredeemable Preferred Stock | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Cost | 45,373 | |
Fair Value | 42,871 | |
Amount at which shown in the balance sheet | $ 42,871 | |
[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 $900 million. |
SCHEDULE II - Condensed Balance
SCHEDULE II - Condensed Balance Sheets - Parent Company Only (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Nov. 30, 2006 | |
Assets | |||||
Fixed maturities, at fair value (amortized cost: 2020, $517,294; 2019, $56,096) | $ 12,786,380 | $ 10,680,714 | |||
Short-term investments, at fair value (amortized cost: 2020, $nil; 2019, $3,993) | 416,350 | 1,003,421 | |||
Other assets | 174,193 | 169,521 | |||
Total assets | 26,898,575 | 25,062,405 | |||
Liabilities | |||||
Accounts payable, accrued expenses and other | 612,069 | 517,084 | |||
Total liabilities | 19,571,578 | 17,792,236 | |||
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: 2020, 25,489,636 shares; 2019, 28,169,062 shares; aggregate liquidation value: 2020, $637,241; 2019, $704,227) | 25,490 | 28,169 | |||
Additional paid-in capital | 2,334,564 | 2,396,530 | |||
Accumulated other comprehensive loss | (96,005) | (75,925) | |||
Retained earnings | 5,062,948 | 4,921,395 | |||
Total shareholders’ equity | 7,326,997 | 7,270,169 | $ 6,516,514 | ||
Total liabilities and shareholders’ equity | 26,898,575 | 25,062,405 | |||
Other information | |||||
Amortized cost of trading securities, debt | 12,341,937 | 10,468,937 | |||
Short-term investments, amortized cost | $ 416,059 | $ 1,003,508 | |||
Common shares, par value | $ 0.00 | $ 0.00 | |||
Common shares, shares issued | 100,000,000 | 100,000,000 | |||
Preferred shares, par value per share | $ 1 | $ 1 | |||
Preferred shares, shares issued | 25,489,636 | 28,169,062 | |||
Preferred shares, shares outstanding | 25,489,636 | 28,169,062 | |||
Aggregate liquidation preference | $ 637,241 | $ 704,227 | |||
Notes Issued | 458,000 | ||||
Payments for Repurchase of Redeemable Preferred Stock | 66,985 | 0 | 0 | ||
Non-cash dividends received from subsidiaries | 979,000 | ||||
Non-cash capital contributions to subsidiaries | 22,000 | ||||
Non-cash exchange of intercompany balances | 204,000 | ||||
Notes Issued By PartnerRe Finance II Inc | Capital efficient notes | |||||
Other information | |||||
Commitment | 62,484 | 62,000 | $ 250,000 | ||
Parent Company | |||||
Assets | |||||
Fixed maturities, at fair value (amortized cost: 2020, $517,294; 2019, $56,096) | 519,967 | 58,161 | |||
Short-term investments, at fair value (amortized cost: 2020, $nil; 2019, $3,993) | 0 | 3,993 | |||
Cash and cash equivalents | 10,020 | 4,512 | 1,081 | $ 26,681 | |
Investment in subsidiaries | 9,291,985 | 8,896,352 | |||
Intercompany loans and balances receivable | 21,559 | 219,815 | |||
Other assets | 11,443 | 4,422 | |||
Total assets | 9,854,974 | 9,187,255 | |||
Liabilities | |||||
Intercompany loans and balances payable | 2,490,500 | 1,884,499 | |||
Accounts payable, accrued expenses and other | 37,477 | 32,587 | |||
Total liabilities | 2,527,977 | 1,917,086 | |||
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: 2020, 25,489,636 shares; 2019, 28,169,062 shares; aggregate liquidation value: 2020, $637,241; 2019, $704,227) | 25,490 | 28,169 | |||
Additional paid-in capital | 2,334,564 | 2,396,530 | |||
Accumulated other comprehensive loss | (96,005) | (75,925) | |||
Retained earnings | 5,062,948 | 4,921,395 | |||
Total shareholders’ equity | 7,326,997 | 7,270,169 | |||
Total liabilities and shareholders’ equity | 9,854,974 | 9,187,255 | |||
Other information | |||||
Amortized cost of trading securities, debt | 517,294 | 56,096 | |||
Short-term investments, amortized cost | $ 0 | $ 3,993 | |||
Common shares, par value | $ 0.00 | $ 0.00 | |||
Common shares, shares issued | 100,000,000 | 100,000,000 | |||
Preferred shares, par value per share | $ 1 | $ 1 | |||
Preferred shares, shares issued | 25,489,636 | 28,169,062 | |||
Preferred shares, shares outstanding | 25,489,636 | 28,169,062 | |||
Aggregate liquidation preference | $ 637,241 | $ 704,227 | |||
Parent Company | Financial Guarantee | Notes Issued By PartnerRe Finance II Inc | Capital efficient notes | |||||
Other information | |||||
Aggregate principal amount of guarantee obligations | $ 62,000 | ||||
Stated interest rate of debt instrument | 6.44% | ||||
Parent Company | Financial Guarantee | Notes issued by PartnerRe Finance B LLC | Capital efficient notes | |||||
Other information | |||||
Stated interest rate of debt instrument | 4.50% | ||||
Commitment | $ 500,000 | ||||
Parent Company | Financial Guarantee | Notes issued by PartnerRe Finance B LLC | Senior Notes | |||||
Other information | |||||
Percentage ownership | 100.00% | ||||
Stated interest rate of debt instrument | 3.70% | ||||
Parent Company | Financial Guarantee | 2016 Euro Senior Notes | Senior Notes | |||||
Other information | |||||
Stated interest rate of debt instrument | 1.25% | ||||
Subsidiaries | |||||
Other information | |||||
Payment of dividends by subsidiary on behalf of parent | $ 96,000 | $ 246,000 | $ 94,000 | ||
Payments for Repurchase of Redeemable Preferred Stock | 67,000 | ||||
Non-cash capital contributions to subsidiaries | $ 25,000 |
SCHEDULE II - Condensed Stateme
SCHEDULE II - Condensed Statements of Operations - Parent Company Only (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Condensed Income Statements, Captions [Line Items] | |||
Net investment income | $ 360,668 | $ 448,538 | $ 415,921 |
Net realized and unrealized investment gains (losses) | 454,319 | 886,670 | (389,632) |
Total revenues | 7,365,304 | 7,875,747 | 5,590,226 |
Other expenses | 355,647 | 369,969 | 305,568 |
Net foreign exchange losses (gains) | 51,964 | 86,760 | (119,151) |
Net income (loss) | 254,189 | 936,748 | (85,994) |
Preferred dividends | 45,990 | 46,416 | 46,416 |
Loss on redemption of preferred shares | 2,341 | 0 | 0 |
Net income (loss) attributable to common shareholder | 205,858 | 890,332 | (132,410) |
Other comprehensive (loss) income | (20,080) | 62,709 | (48,353) |
Comprehensive income (loss) | 234,109 | 999,457 | (134,347) |
Parent Company | |||
Condensed Income Statements, Captions [Line Items] | |||
Net investment income | 2,094 | 1,620 | 1,844 |
Interest income on intercompany loans | 0 | 12,215 | 13,015 |
Net realized and unrealized investment gains (losses) | 641 | 2,594 | (1,632) |
Other income (loss) | 113 | 112 | (6,778) |
Total revenues | 2,848 | 16,541 | 6,449 |
Other expenses | 53,458 | 51,115 | 25,792 |
Interest expense on intercompany loans | 17,188 | 14,757 | 15,041 |
Net foreign exchange losses (gains) | 82,986 | (26,885) | (50,276) |
Total expenses | 153,632 | 38,987 | (9,443) |
(Loss) income before equity in net income (loss) of subsidiaries | (150,784) | (22,446) | 15,892 |
Equity in net income (loss) of subsidiaries | 404,973 | 959,194 | (101,886) |
Net income (loss) | 254,189 | 936,748 | (85,994) |
Preferred dividends | 45,990 | 46,416 | 46,416 |
Loss on redemption of preferred shares | 2,341 | 0 | 0 |
Net income (loss) attributable to common shareholder | 205,858 | 890,332 | (132,410) |
Other comprehensive (loss) income | (20,080) | 62,709 | (48,353) |
Comprehensive income (loss) | $ 234,109 | $ 999,457 | $ (134,347) |
SCHEDULE II - Condensed State_2
SCHEDULE II - Condensed Statements of Cash Flows - Parent Company Only (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Cash flows from operating activities | ||||
Net income (loss) | $ 254,189 | $ 936,748 | $ (85,994) | |
Adjustments to reconcile net income to net cash used in operating activities: | ||||
Other, net | 55,004 | 150,340 | (141,808) | |
Net cash provided by operating activities | 1,124,893 | 998,869 | 447,493 | |
Cash flows from investing activities | ||||
Purchases of fixed maturities | (8,962,066) | (14,918,698) | (15,638,777) | |
Purchases of short-term investments | (5,006,397) | (3,142,818) | (733,431) | |
Other, net | 23,431 | (94,263) | (5,357) | |
Net cash used in investing activities | (632,748) | (117,994) | (1,260,911) | |
Redemption of preferred shares | (66,985) | 0 | 0 | |
Net cash used in financing activities | 328,362 | (267,868) | (94,251) | |
Supplemental cash flow information: | ||||
Non-cash dividends received from subsidiaries | 979,000 | |||
Non-cash capital contributions to subsidiaries | 22,000 | |||
Non-cash exchange of intercompany balances | 204,000 | |||
Notes Issued | 458,000 | |||
Parent Company | ||||
Cash flows from operating activities | ||||
Net income (loss) | 254,189 | 936,748 | (85,994) | |
Adjustments to reconcile net income to net cash used in operating activities: | ||||
Equity in net (income) loss of subsidiaries | (404,973) | (959,194) | 101,886 | |
Other, net | 87,789 | (17,167) | (29,283) | |
Net cash provided by operating activities | (62,995) | (39,613) | (13,391) | |
Cash flows from investing activities | ||||
Advances to/from subsidiaries, net (1) (2) (3) | [1],[2],[3] | 73,738 | (282,233) | (261,666) |
Net issue of intercompany loans receivable and payable (1) (4) | [3],[4] | 458,489 | 276,332 | 299,279 |
Sales and redemptions of fixed maturities | 32,230 | 72,724 | 65,025 | |
Sales and redemptions of short-term investments | 43,899 | 2,189 | 0 | |
Purchases of fixed maturities | (496,139) | (18,621) | (124,932) | |
Purchases of short-term investments | (39,913) | (6,173) | 0 | |
Other, net | (3,987) | (29) | (680) | |
Net cash used in investing activities | 68,317 | 44,189 | (22,974) | |
Net cash used in financing activities | 0 | 0 | 0 | |
Effect of foreign exchange rate changes on cash | 186 | (1,145) | 10,765 | |
Increase (decrease) in cash and cash equivalents | 5,508 | 3,431 | (25,600) | |
Cash and cash equivalents—beginning of year | 4,512 | 1,081 | 26,681 | |
Cash and cash equivalents—end of year | 10,020 | 4,512 | 1,081 | |
Subsidiaries | ||||
Cash flows from investing activities | ||||
Redemption of preferred shares | (67,000) | |||
Supplemental cash flow information: | ||||
Non-cash capital contributions to subsidiaries | 25,000 | |||
Payment of dividends by subsidiary on behalf of parent | $ 96,000 | $ 246,000 | $ 94,000 | |
[1] | During 2020, 2019 and 2018, dividends paid to common and preferred shareholders of $96 million, $246 million and $94 million, respectively, were paid by a Bermuda subsidiary on behalf of the parent, with a corresponding increase to intercompany balances payable. During 2020, the redemption of Series F preferred shares of $67 million was also paid by a Bermuda subsidiary on behalf of the parent, with a corresponding increase to intercompany balances payable. There transactions have therefore been excluded from the Condensed Statements of Cash Flows—Parent Company Only. | |||
[2] | During 2020, the parent recorded a non-cash capital contribution to a subsidiary of $25 million, with a corresponding change to the intercompany balances payable. During 2019, the Parent 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 balances receivable/payable. These non-cash transactions have therefore been excluded from the Condensed Statements of Cash Flows—Parent Company Only. | |||
[3] | During 2020, the parent recorded a non-cash exchange related to a reduction of intercompany loans and balances receivable of $204 million and a corresponding reduction of intercompany loans and balances payable of $204 million. This non-cash transaction has therefore been excluded from the Condensed Statements of Cash Flows—Parent Company Only. | |||
[4] | During 2020, the Company recorded a $458 million loan payable maturing in 2030 with a direct Bermuda subsidiary in exchange for shares of an indirectly owned subsidiary, which were subsequently transferred to another subsidiary in exchange for cash. The cash proceeds were primarily invested in fixed maturities. |
SCHEDULE III - Supplementary _2
SCHEDULE III - Supplementary Insurance Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | ||||
Deferred Policy Acquisition Costs | $ 819,971 | $ 874,608 | $ 743,046 | |
Gross Reserves | 11,395,321 | 10,363,383 | 9,895,376 | |
Unearned Premiums | 2,265,214 | 2,433,860 | 2,072,953 | |
Other Benefits Payable | 2,704,229 | 2,417,044 | 2,198,080 | |
Premium Revenue | 6,536,826 | 6,525,218 | 5,513,810 | |
Net Investment Income (1) | [1] | 360,668 | 448,538 | 415,921 |
Losses Incurred | 5,334,900 | 4,923,156 | 4,193,255 | |
Amortization of DAC | 1,356,118 | 1,455,462 | 1,237,464 | |
Other Expenses (2) | [2] | 355,647 | 369,969 | 305,568 |
Premiums Written | 6,300,858 | 6,909,058 | 5,803,364 | |
Non Life | ||||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | ||||
Deferred Policy Acquisition Costs | 543,416 | 640,442 | 553,535 | |
Gross Reserves | 11,395,321 | 10,357,981 | 9,885,913 | |
Unearned Premiums | 2,257,441 | 2,420,009 | 2,062,736 | |
Other Benefits Payable | 0 | 0 | 0 | |
Premium Revenue | 5,054,529 | 5,058,056 | 4,301,862 | |
Losses Incurred | 4,016,704 | 3,662,891 | 3,168,647 | |
Amortization of DAC | 1,254,067 | 1,306,388 | 1,107,760 | |
Other Expenses (2) | [2] | 87,163 | 107,414 | 102,397 |
Premiums Written | 4,825,919 | 5,438,807 | 4,592,282 | |
Life and Health | ||||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | ||||
Deferred Policy Acquisition Costs | 276,555 | 234,166 | 189,511 | |
Gross Reserves | 0 | 0 | 0 | |
Unearned Premiums | 7,773 | 13,851 | 10,217 | |
Other Benefits Payable | 2,704,229 | 2,417,044 | 2,198,080 | |
Premium Revenue | 1,482,297 | 1,467,162 | 1,211,948 | |
Net Investment Income (1) | [1] | 68,259 | 71,756 | 65,567 |
Losses Incurred | 1,318,196 | 1,263,016 | 1,024,608 | |
Amortization of DAC | 102,051 | 149,074 | 129,704 | |
Other Expenses (2) | [2] | 73,105 | 69,191 | 51,055 |
Premiums Written | 1,474,939 | 1,470,251 | 1,211,082 | |
Corporate and Other | ||||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | ||||
Deferred Policy Acquisition Costs | 0 | 0 | 0 | |
Gross Reserves | 0 | 5,402 | 9,463 | |
Unearned Premiums | 0 | 0 | 0 | |
Other Benefits Payable | 0 | 0 | 0 | |
Premium Revenue | 0 | 0 | 0 | |
Net Investment Income (1) | [1] | 292,409 | 376,782 | 350,354 |
Losses Incurred | 0 | (2,751) | 0 | |
Amortization of DAC | 0 | 0 | 0 | |
Other Expenses (2) | [2] | 195,379 | 193,364 | 152,116 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Life reinsurance in force | ||||
Gross amount | [1] | $ 0 | $ 0 | $ 0 |
Ceded to other companies | [1] | 18,764,660 | 17,632,050 | 16,349,433 |
Assumed from other companies | [1] | 398,443,383 | 359,376,352 | 349,064,323 |
Net amount | [1] | $ 379,678,723 | $ 341,744,302 | $ 332,714,890 |
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 | $ 269,691 | $ 275,923 | $ 248,501 | |
Ceded to other companies | 540,194 | 397,860 | 474,121 | |
Assumed from other companies | 6,807,329 | 6,647,155 | 5,739,430 | |
Net premiums earned | $ 6,536,826 | $ 6,525,218 | $ 5,513,810 | |
Percentage of amount assumed to net | 104.00% | 102.00% | 104.00% | |
Life [Member] | ||||
Reinsurance Premiums For Insurance Companies By Product Segment Net Amount [Abstract] | ||||
Gross amount | $ 0 | $ 0 | $ 0 | |
Ceded to other companies | 23,522 | 22,559 | 24,025 | |
Assumed from other companies | 1,483,298 | 1,427,723 | 1,184,604 | |
Net premiums earned | $ 1,459,776 | $ 1,405,164 | $ 1,160,579 | |
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 | 22,521 | 61,998 | 51,369 | |
Net premiums earned | $ 22,521 | $ 61,998 | $ 51,369 | |
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] | $ 269,691 | $ 275,923 | $ 248,501 |
Ceded to other companies | [2] | 516,672 | 375,301 | 450,096 |
Assumed from other companies | [2] | 5,301,510 | 5,157,434 | 4,503,457 |
Net premiums earned | [2] | $ 5,054,529 | $ 5,058,056 | $ 4,301,862 |
Percentage of amount assumed to net | [2] | 105.00% | 102.00% | 105.00% |
[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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Non Life | |||||
Supplemental Information Concerning Property-Casualty Insurance Operations [Line Items] | |||||
Deferred Policy Acquisition Costs | $ 543,416 | $ 640,442 | $ 553,535 | ||
Liability for Unpaid Losses and Loss Expenses | 11,395,321 | 10,363,383 | 9,895,376 | ||
Unearned Premiums | 2,257,441 | 2,420,009 | 2,062,736 | ||
Premiums Earned | 5,054,529 | 5,058,056 | 4,301,862 | ||
Losses and Loss Expenses Incurred Related to - Current year | 3,945,248 | [1] | 3,716,988 | 3,417,366 | |
Losses and Loss Expenses Incurred Related to - Prior year | 71,456 | [1] | (56,848) | (248,719) | |
Acquisition Costs | 1,254,067 | 1,306,388 | 1,107,760 | ||
Paid Losses and Loss Expenses | 3,232,604 | 3,090,670 | 2,921,987 | ||
Premiums Written | 4,825,919 | $ 5,438,807 | $ 4,592,282 | ||
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. |