Cover
Cover | 12 Months Ended |
Dec. 31, 2021shares | |
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, 2021 |
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 |
Title of 12(b) Security | 4.875% Series J Fixed Rate Non-Cumulative Preferred Shares, $1.00 par value |
Trading Symbol | PRE-J |
Security Exchange Name | NYSE |
Entity well known seasoned issuer | No |
Entity voluntary filers | No |
Entity current reporting status | Yes |
Entity Interactive Data Current | Yes |
Entity filer category | Non-accelerated Filer |
Entity emerging growth company | false |
ICFR Auditor Attestation Flag | false |
Document Accounting Standard | U.S. GAAP |
Entity shell company | false |
Document Fiscal Year Focus | 2021 |
Current fiscal year end date | --12-31 |
Entity central index key | 0000911421 |
Business Contact | |
Entity Listings [Line Items] | |
Contact Personnel Name | Nicolas Burnet |
Entity Address, Address Line One | 90 Pitts Bay Road |
Entity Address, City or Town | Pembroke |
Entity Address, Country | BM |
Entity Address, Postal Zip Code | HM 08 |
Contact Personnel Email Address | nicolas.burnet@partnerre.com |
Common shares | |
Entity Listings [Line Items] | |
Entity common stock shares outstanding | 100,000,000 |
Class B Shares | |
Entity Listings [Line Items] | |
Entity common stock shares outstanding | 222,659 |
Common Class C | |
Entity Listings [Line Items] | |
Entity common stock shares outstanding | 9,445 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Name | Ernst & Young Ltd. |
Auditor Location | Hamilton, Bermuda |
Auditor Firm ID | 1277 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Fixed maturities, at fair value (amortized cost: 2021, $14,181,310; 2020, $12,341,937) | $ 14,071,274 | $ 12,786,380 |
Short-term investments, at fair value (amortized cost: 2021, $213,047; 2020, $416,059) | 205,146 | 416,350 |
Equities, at fair value (cost: 2021, $903,314; 2020, $847,066) | 1,751,584 | 1,496,441 |
Investments in real estate | 67,539 | 67,980 |
Other invested assets | 3,601,245 | 2,967,738 |
Total investments | 19,696,788 | 17,734,889 |
Cash and cash equivalents | 660,897 | 2,350,833 |
Accrued investment income | 94,997 | 92,058 |
Reinsurance balances receivable | 3,063,153 | 3,118,870 |
Reinsurance recoverable on paid and unpaid losses | 1,787,493 | 901,063 |
Prepaid reinsurance premiums | 216,338 | 115,986 |
Funds held by reinsured companies | 561,576 | 704,768 |
Deferred acquisition costs | 920,779 | 819,971 |
Deposit assets | 109,528 | 139,818 |
Net tax assets | 154,472 | 182,077 |
Goodwill | 456,380 | 456,380 |
Intangible assets | 98,818 | 107,669 |
Other assets | 208,652 | 174,193 |
Total assets | 28,029,871 | 26,898,575 |
Liabilities | ||
Non-life reserves | 12,047,792 | 11,395,321 |
Life and health reserves | 2,638,086 | 2,704,229 |
Unearned premiums | 2,501,161 | 2,265,214 |
Other reinsurance balances payable | 744,735 | 482,468 |
Debt | 1,897,499 | 1,974,731 |
Deposit liabilities | 5,077 | 5,925 |
Net tax liabilities | 90,974 | 131,621 |
Accounts payable, accrued expenses and other | 560,561 | 612,069 |
Total liabilities | 20,485,885 | 19,571,578 |
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: 2021, 8,000,000 shares; 2020, 25,489,636 shares; aggregate liquidation value: 2021, $200,000; 2020, $637,241) | 8,000 | 25,490 |
Additional paid-in capital | 1,929,934 | 2,334,564 |
Accumulated other comprehensive loss | (29,706) | (96,005) |
Retained earnings | 5,635,758 | 5,062,948 |
Total shareholders’ equity | 7,543,986 | 7,326,997 |
Total liabilities and shareholders’ equity | $ 28,029,871 | $ 26,898,575 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Amortized cost of trading securities, debt | $ 14,181,310 | $ 12,341,937 |
Short-term investments, amortized cost | 213,047 | 416,059 |
Equities, at cost | $ 903,314 | $ 847,066 |
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 | 8,000,000 | 25,489,636 |
Preferred shares, shares outstanding | 8,000,000 | 25,489,636 |
Aggregate liquidation value | $ 200,000 | $ 637,241 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues | |||
Gross premiums written | $ 8,203,925 | $ 6,875,925 | $ 7,285,320 |
Net premiums written | 7,134,018 | 6,300,858 | 6,909,058 |
(Increase) decrease in unearned premiums | (177,496) | 235,968 | (383,840) |
Net premiums earned | 6,956,522 | 6,536,826 | 6,525,218 |
Net investment income | 376,469 | 360,668 | 448,538 |
Net realized and unrealized investment gains | 37,797 | 454,319 | 886,670 |
Other income | 28,748 | 13,491 | 15,321 |
Total revenues | 7,399,536 | 7,365,304 | 7,875,747 |
Expenses | |||
Losses and loss expenses | 4,883,984 | 5,334,900 | 4,923,156 |
Acquisition costs | 1,386,832 | 1,356,118 | 1,455,462 |
Other expenses | 398,542 | 355,647 | 369,969 |
Interest expense | 55,606 | 39,200 | 40,150 |
Loss on redemption of debt | 0 | 0 | 15,175 |
Amortization of intangible assets | 8,861 | 9,988 | 11,434 |
Net foreign exchange losses | 30,883 | 51,964 | 86,760 |
Total expenses | 6,764,708 | 7,147,817 | 6,902,106 |
Income before taxes and interest in earnings of equity method investments | 634,828 | 217,487 | 973,641 |
Income tax expense (benefit) | (38,219) | 13,091 | (52,536) |
Interest in earnings of equity method investments | 126,795 | 23,611 | 15,643 |
Net income | 723,404 | 254,189 | 936,748 |
Preferred dividends | 22,693 | 45,990 | 46,416 |
Loss on redemption of preferred shares | 21,234 | 2,341 | 0 |
Net income available to common shareholder | 679,477 | 205,858 | 890,332 |
Comprehensive income | |||
Net income | 723,404 | 254,189 | 936,748 |
Change in currency translation adjustment | 43,120 | (5,884) | 71,796 |
Change in unfunded pension obligation, net of tax | 23,307 | (14,383) | (6,803) |
Change in fair value of designated cash flow hedges, net of reclassification adjustment | 0 | 0 | (1,877) |
Change in unrealized gains or losses on investments, net of tax | (128) | 187 | (407) |
Other comprehensive income (loss) | 66,299 | (20,080) | 62,709 |
Comprehensive income | $ 789,703 | $ 234,109 | $ 999,457 |
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, 2018 | $ 0 | $ 28,169 | $ 2,396,530 | $ (138,634) | $ (131,700) | $ (9,185) | $ 2,251 | $ 4,230,449 | $ 0 | |
Issuance of preferred shares | 0 | 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 | 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 | ||||||||
Issuance of preferred shares | 0 | 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 | 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 | $ 0 |
Accounting Standards Update | Accounting Standards Update 2016-13 [Member] | |||||||||
Balance at end of period, tax impact | 7,559 | 0 | ||||||||
Issuance of preferred shares | 8,000 | 185,887 | ||||||||
Redemption of preferred shares | (25,490) | (590,517) | ||||||||
Change in currency translation adjustment | $ 43,120 | 43,120 | ||||||||
Change in unfunded pension obligation, net of tax | 23,307 | 23,307 | ||||||||
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 | (128) | (128) | ||||||||
Net income | 723,404 | 723,404 | ||||||||
Dividends on common shares | (106,667) | |||||||||
Dividends on preferred shares | (22,693) | (22,693) | ||||||||
Loss on redemption of preferred shares | (21,234) | (21,234) | ||||||||
Balance at end of year at Dec. 31, 2021 | $ 7,543,986 | $ 0 | $ 8,000 | $ 1,929,934 | $ (29,706) | $ (22,668) | (7,064) | 26 | $ 5,635,758 | |
Balance at end of period, tax impact | $ 1,840 | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Cash flows from operating activities | ||||
Net income | $ 723,404 | $ 254,189 | $ 936,748 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Amortization of net premium on investments | 57,900 | 34,708 | 14,478 | |
Amortization of intangible assets | 8,861 | 9,988 | 11,434 | |
Net realized and unrealized investment gains | (37,797) | (454,319) | (886,670) | |
Loss on redemption of debt | 0 | 0 | 15,175 | |
Changes in: | ||||
Reinsurance balances, net | 19,366 | 274,506 | (397,563) | |
Reinsurance recoverable on paid and unpaid losses, net of ceded premiums payable | (637,908) | 16,026 | 112,223 | |
Funds held by reinsured companies | 113,626 | 175,272 | 56,890 | |
Deferred acquisition costs | (122,739) | 74,871 | (128,426) | |
Net tax assets and liabilities | 3,256 | (23,647) | 17,118 | |
Non-life and life and health reserves | 903,324 | 944,263 | 713,281 | |
Unearned premiums, net of prepaid reinsurance premiums | 177,496 | (235,968) | 383,841 | |
Other net changes in operating assets and liabilities | 23,801 | 55,004 | 150,340 | |
Net cash provided by operating activities | 1,232,590 | 1,124,893 | 998,869 | |
Cash flows from investing activities | ||||
Sales of fixed maturities | 3,693,365 | 5,518,588 | 16,502,655 | |
Redemptions of fixed maturities | 2,381,821 | 1,821,934 | 738,478 | |
Purchases of fixed maturities | (8,141,246) | (8,962,066) | (14,918,698) | |
Sales of short-term investments | 252,527 | 3,637,532 | 1,914,640 | |
Redemptions of short-term investments | 321,609 | 1,971,826 | 724,033 | |
Purchases of short-term investments | (372,901) | (5,006,397) | (3,142,818) | |
Sales of equities | 161,501 | 143,932 | 133,891 | |
Purchases of equities | (144,537) | (151,292) | (296,687) | |
Sales and redemptions of other invested assets | 1,106,211 | 1,300,591 | 330,227 | |
Purchases of other invested assets | (1,555,569) | (930,827) | (2,009,452) | |
Other, net | (31,903) | 23,431 | (94,263) | |
Net cash used in investing activities | (2,329,122) | (632,748) | (117,994) | |
Cash flows from financing activities | ||||
Dividends paid to common and preferred shareholders | (129,360) | (95,990) | (245,802) | |
Issuance of unrestricted Class B common shares | [1] | 0 | 2,257 | 1,159 |
Redemption of Class B common shares | [1] | (581) | (5,157) | (6,540) |
Issuance of preferred shares | 193,887 | 0 | 0 | |
Redemption of preferred shares | (637,241) | (66,985) | 0 | |
Issuance of debt | 0 | 494,237 | 496,012 | |
Redemption of debt | 0 | 0 | (512,697) | |
Net cash (used in) provided by financing activities | (573,295) | 328,362 | (267,868) | |
Effect of foreign exchange rate changes on cash | (20,109) | 45,863 | (6,451) | |
(Decrease) increase in cash and cash equivalents | (1,689,936) | 866,370 | 606,556 | |
Cash and cash equivalents—beginning of year | 2,350,833 | 1,484,463 | 877,907 | |
Cash and cash equivalents—end of year | 660,897 | 2,350,833 | 1,484,463 | |
Supplemental cash flow information: | ||||
Taxes paid | 100,222 | 64,288 | 85,047 | |
Interest paid | $ 56,177 | $ 33,164 | $ 38,650 | |
[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, 2021 | |
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 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, 2021 and 2020, the Company's 100 million common shares (Class A shares) issued to EXOR Nederland N.V. were included in Shareholders' Equity in the Consolidated Balance Sheets (see Note 10). The Company also has Class B common shares (Class B shares), Class C common shares (Class C shares), and restricted share units outstanding, all of which are issued to certain executives and directors of the Company, and are recognized in Accounts payable, accrued expenses and other in the Consolidated Balance Sheets (see Note 13). On December 16, 2021, Exor announced that it had signed a definitive agreement with Covéa Cooperations S.A. (Covéa), under which Covéa will acquire PartnerRe's common shares. Preferred shares issued by PartnerRe will not be included in the proposed transaction, and consummation of this transaction is expected in mid-2022 and is subject to customary closing conditions, including antitrust, regulatory and other approvals. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
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. 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 recorded liabilities on an underlying reinsurance contract exceed premiums payable for retroactive coverage, a deferred gain is recognized in Accounts payable, accrued expenses and other on 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, SOFR). 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 branches in Switzerland and the United Kingdom 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. 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 and C shares and restricted share units to certain executives and directors. The compensation cost for grants of Class B and C shares and restricted share units 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 and C shares can be sold back to the Company at the option of the shareholder. Class B and C shares and restricted share units are accounted for as liabilities and included in Accounts payable, accrued expenses and other on the Consolidated Balance Sheets. See Note 13 for further details. (s) Recent Accounting Pronouncements Adopted during 2021 In October 2020, the FASB issued updated guidance to clarify that callable debt securities should be reevaluated each reporting period to determine if the amortized cost exceeds the amount repayable by the issuer at the next earliest call date and, if so, the excess should be amortized to the next call date. This guidance is effective for fiscal years beginning after December 15, 2020, and the Company adopted this guidance effective January 1, 2021 on a prospective basis for existing or newly purchased callable debt securities. The adoption did not have a material impact on the Company's Consolidated Financial Statements. In March 2020, the U.S. Securities and Exchange Commission (the SEC) adopted amendments to the financial disclosure requirements related to certain debt securities, including registered debt securities issued by a wholly-owned, operating subsidiary that are fully and unconditionally guaranteed by the parent company. In October 2020, the FASB issued updated guidance to reflect the SEC's new disclosure requirements. This new guidance narrows the circumstances that require separate financial statements of subsidiary issuers and guarantors and streamlines the alternative disclosures required in lieu of those statements. The amended SEC rules became effective on January 4, 2021, and the Company adopted the new disclosure requirements at that time. As the guidance is disclosure-related only, it did not have a material impact on the Company's Consolidated Financial Statements. 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. These updates amend four key areas pertaining to the accounting and disclosures for long-duration insurance and investment contracts: • The update requires cash flow assumptions used to measure the liability for future policy benefits to be reviewed at least annually and updated, if necessary. Assumptions no longer allow a provision for adverse deviation. The remeasurement of the liability associated with the update of assumptions is required to be recognized in Net income or loss. Loss recognition testing is eliminated for traditional and limited-payment contracts. The update also requires the discount rate used in measuring the liability to be an upper-medium grade fixed-income instrument yield, which is to be updated at each reporting date. The change in liability due to changes in the discount rate is to be recognized in Other comprehensive income or loss. • The update requires certain contract features meeting the definition of market risk benefits to be measured at fair value. Among the features included in this definition are guaranteed minimum death benefit (GMDB) products. The change in fair value of the market risk benefits is to be recognized in Net income or loss, excluding the portion attributable to changes in instrument-specific credit risk which is recognized in Other comprehensive income or loss. • The update simplifies the amortization of Deferred acquisition costs and other balances, requiring such balances to be amortized on a constant level basis over the expected term of the contracts. Deferred costs are required to be written off for unexpected contract terminations but are not subject to recoverability testing. • The update also introduces disclosure requirements around the liability for future policy benefits, market risk benefits and defe |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2021 | |
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; 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, 2021 and 2020, 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, 2021 Quoted prices in Significant Significant Total Fixed maturities U.S. government and government sponsored enterprises $ — $ 2,118,772 $ — $ 2,118,772 U.S. states, territories and municipalities — 12,878 95,181 108,059 Non-U.S. sovereign government, supranational and government related — 2,181,127 — 2,181,127 Corporate bonds — 5,441,908 — 5,441,908 Asset-backed securities — — 16,764 16,764 Residential mortgage-backed securities — 4,204,644 — 4,204,644 Fixed maturities $ — $ 13,959,329 $ 111,945 $ 14,071,274 Short-term investments $ — $ 205,146 $ — $ 205,146 Equities Real estate $ 97,854 $ — $ 2,097 $ 99,951 Consumer non-cyclical 343 — 10,081 10,424 Consumer cyclical 7,341 — 1,394 8,735 Diversified 4 — 7,468 7,472 Energy 1,112 — 2,368 3,480 Industrials 137 — 220 357 Finance — — 128 128 Insurance — 18 — 18 Mutual funds — — 1,621,019 1,621,019 Equities $ 106,791 $ 18 $ 1,644,775 $ 1,751,584 Other invested assets Derivative assets Foreign exchange forward contracts $ — $ 8,841 $ — $ 8,841 Total return swaps — — 153 153 Insurance-linked securities — — 5,663 5,663 Other — — 3,059 3,059 Other Corporate loans (1) — — 1,469,776 1,469,776 Notes and loans receivable and notes securitization — — 6,575 6,575 Private equities — — 1,280,731 1,280,731 Derivative liabilities Foreign exchange forward contracts — (6,657) — (6,657) Total return swaps — — (1,079) (1,079) Interest rate swaps — (10,489) — (10,489) Other invested assets $ — $ (8,305) $ 2,764,878 $ 2,756,573 Total $ 106,791 $ 14,156,188 $ 4,521,598 $ 18,784,577 (1) Corporate loans includes a portfolio of third-party, individually managed privately issued corporate loans that are managed under an externally managed mandate with a fair value of $1.0 billion and $0.9 billion at December 31, 2021 and 2020, respectively. The mandate primarily invests in U.S. floating rate, first lien, senior secured broadly syndicated loans with a focus on facility sizes greater than $300 million. Corporate loans also includes $0.5 billion and $0.4 billion of other privately issued corporate loans at December 31, 2021 and 2020 respectively . 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 At December 31, 2021 and 2020, the aggregate carrying amounts of items included in Other invested assets that the Company did not measure at fair value were $845 million and $900 million, respectively, which related to the Company’s investments that are accounted for using the equity method of accounting. Dividends on equity method investments for 2021 and 2020 were $10 million and $2 million, respectively. Refer to Note 4(f) for further information on the Company's equity method investments. At December 31, 2021 and 2020, the carrying value of accrued investment income approximated fair value due to its short-term nature. 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, 2021 and 2020, 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, 2021 and 2020, were as follows (in thousands of U.S. dollars): For the year ended December 31, 2021 Balance at Realized and Purchases Settlements and (1) Net Balance Change in Fixed maturities U.S. states, territories and municipalities $ 120,477 $ (7,330) $ — $ (17,966) $ — $ 95,181 $ (8,818) Asset-backed securities 17,528 — — (764) — 16,764 — Corporate bonds 16,530 165 — (16,695) — — — Fixed maturities $ 154,535 $ (7,165) $ — $ (35,425) $ — $ 111,945 $ (8,818) Equities Energy $ 34,448 $ 54,509 $ 6 $ (86,595) $ — $ 2,368 $ 1,326 Consumer non-cyclical 6,886 7,557 — — (4,362) 10,081 4,522 Insurance 4,000 — — (4,000) — — — Real estate 2,338 (241) — — — 2,097 (241) Consumer cyclical 475 (916) 1,835 — — 1,394 (916) Finance 138 (10) — — — 128 (10) Industrials 39 245 309 (334) (39) 220 99 Diversified 3,098 1,901 2,469 — — 7,468 1,901 Mutual funds 1,428,080 212,723 60,845 (80,629) — 1,621,019 195,927 Equities $ 1,479,502 $ 275,768 $ 65,464 $ (171,558) $ (4,401) $ 1,644,775 $ 202,608 Other invested assets Derivatives, net $ (862) $ 5,718 $ 3,059 $ (119) $ — $ 7,796 $ 4,018 Corporate loans 1,326,143 (10,668) 796,236 (641,935) — 1,469,776 (6,432) Notes and loan receivables and notes securitization 7,121 (71) 21 (496) — 6,575 (6,895) Private equities 756,731 291,160 587,956 (355,116) — 1,280,731 182,171 Other invested assets $ 2,089,133 $ 286,139 $ 1,387,272 $ (997,666) $ — $ 2,764,878 $ 172,862 Total $ 3,723,170 $ 554,742 $ 1,452,736 $ (1,204,649) $ (4,401) $ 4,521,598 $ 366,652 (1) Includes sales of Fixed maturities, Equities and Other invested assets of $17 million, $172 million and $738 million, respectively. Sales of Fixed maturities were comprised of U.S. states, territories and municipalities. Sales of Other invested assets included sales of corporate loans of $404 million and private equities of $334 million. During the year ended December 31, 2021, two equity securities valued at $4 million were transferred from Level 3 to Level 1 due to the availability of quoted prices in active markets. For the year ended December 31, 2020 Balance at Realized and Purchases Settlements and sales (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 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 non-cyclical — (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. 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, and a private equity security valued at $3 million was transferred from Level 3 to Level 1 due to the availability of quoted prices in active markets. The significant unobservable inputs used in the valuation of financial instruments measured at fair value using Level 3 inputs at December 31, 2021 and 2020 were as follows (fair value in thousands of U.S. dollars): December 31, 2021 Fair value Valuation techniques Unobservable inputs Range (Weighted average (1) ) Fixed maturities U.S. states, territories and municipalities $ 95,181 Discounted cash flow Credit spreads 2.5% – 254.5% (14.3%) Other invested assets Total return swaps, net (926) Discounted cash flow Credit spreads 2.4% – 41.3% (36.5%) Insurance-linked securities – longevity swaps 5,663 Discounted cash flow Credit spreads 1.7% (1.7%) Notes and loans receivables 1,791 Discounted cash flow Credit spreads 17.5% (17.5%) Gross revenue/fair value 1.1 (1.1) Note securitization 403 Discounted cash flow Credit spreads 2.5% (2.5%) Private equity - other 8,832 Discounted cash flow Effective yield 3.5% (3.5%) Private equity - funds 38,185 Reported market value Net asset value, as reported 100.0% (100.0%) Market adjustments (2.5)% ((2.5)%) 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 spreads 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%) (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 asset-backed securities and corporate bonds (included within Fixed maturities), equities and mutual fund investments (included within Equities), certain notes and loans receivables (included within Other invested assets), certain private equity funds (private equities included within Other invested assets), privately placed corporate loans (included within Other invested assets) and certain derivatives. Changes in the fair value of the Company’s financial instruments subject to the fair value option during the years ended December 31, 2021, 2020 and 2019 were as follows (in thousands of U.S. dollars): 2021 2020 2019 Fixed maturities and short-term investments $ (558,466) $ 219,946 $ 190,343 Equities 198,780 167,456 403,011 Other invested assets 184,209 63,669 50,857 Total $ (175,477) $ 451,071 $ 644,211 Substantially all of the above changes in fair value are included in Net realized and unrealized investment gains 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. 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. 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. For these investments, the Company utilizes prices from third-party sources without adjustment. Other invested assets The Company’s foreign exchange forward contracts and interest rate swaps 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. (b) Fair Value of Financial Instrument Liabilities At December 31, 2021 and 2020, the carrying values of financial instrument liabilities recorded in the Consolidated Balance Sheets approximate their fair values, with the exception of the Company's senior notes and junior subordinated notes. The fair value of the senior notes as of December 31, 2021 and 2020 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 junior subordinated notes as of December 31, 2021 and 2020 was calculated based on market data valuation models using observable inputs based on the aggregate principal amount outstanding of the debt. See Note 9 for further details related to the Company's debt, including the carrying values and fair values. At December 31, 2021 and 2020, the Company’s senior notes and junior subordinated notes were classified as Level 2 in the fair value hierarchy. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021, 2020 and 2019 were as follows (in thousands of U.S. dollars): 2021 2020 2019 Net realized investment gains on fixed maturities and short-term investments $ 19,893 $ 24,828 $ 243,508 Net realized investment gains on equities 78,501 21,538 6,545 Net realized investment gains (losses) on other invested assets 103,011 (30,436) 830 Net realized investment gains $ 201,405 $ 15,930 $ 250,883 Change in net unrealized investment (losses) gains on fixed maturities and short-term investments $ (558,466) $ 219,946 $ 190,343 Change in net unrealized investment gains on equities 198,780 167,456 403,011 Change in net unrealized investment gains on other invested assets 196,926 58,452 44,441 Net other realized and unrealized investment (losses) gains (848) (1,346) 969 Change in net unrealized investment (losses) gains $ (163,608) $ 444,508 $ 638,764 Impairment loss on investments in real estate $ — $ (6,119) $ (2,977) Net realized and unrealized investment gains $ 37,797 $ 454,319 $ 886,670 (b) Net Investment Income The components of net investment income for the years ended December 31, 2021, 2020 and 2019 were as follows (in thousands of U.S. dollars): 2021 2020 2019 Fixed maturities $ 301,391 $ 290,259 $ 379,939 Short-term investments and cash and cash equivalents 4,860 12,000 26,981 Other invested assets 90,442 89,129 68,879 Equities 12,686 3,918 (6,067) Funds held and other (1) 17,871 16,559 18,288 Investment expenses (50,781) (51,197) (39,482) Net investment income $ 376,469 $ 360,668 $ 448,538 (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 7.3%, 0.1% to 6.5% and 0.1% to 5.1% for the years ended December 31, 2021, 2020 and 2019, respectively. (c) Pledged and Restricted Assets At December 31, 2021 and 2020, approximately $105 million and $209 million, respectively, of cash and cash equivalents and approximately $5,483 million and $4,993 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, 2021 and 2020, receivables for securities sold of $45 million and $24 million, respectively, were recorded within Other assets. At December 31, 2021 and 2020, payables for securities purchased of $202 million and $286 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, 2021 and 2020 totaled $845 million and $900 million, respectively. At December 31, 2021 and 2020, 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 $561 million and $494 million, at December 31, 2021 and 2020, respectively, and is included within Other invested assets in the Consolidated Balance Sheets. The Company's other equity method investments are comprised primarily of passive investment interests focusing in the real estate sector. |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2021 | |
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 —The Company uses exchange traded treasury note futures contracts to manage portfolio duration and equity futures to hedge certain investments. Insurance-linked Securities —The Company enters into various derivatives for which the underlying risks reference parametric weather risks, pandemic outbreaks and mortality, 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, 2021 and 2020. 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, 2021 and 2020 were as follows (in thousands of U.S. dollars): Asset Liability Net derivatives December 31, 2021 Fair value Net notional Derivatives not designated as hedges Foreign exchange forward contracts $ 8,841 $ (6,657) $ 2,184 $ 3,092,396 Insurance-linked securities (1) 5,663 — 5,663 15,200 Total return swaps 153 (1,079) (926) 31,519 Interest rate swaps (2) — (10,489) (10,489) — Other 3,059 — 3,059 — Total derivatives not designated as hedges $ 17,716 $ (18,225) $ (509) 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) (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, 2021, 2020 and 2019 were as follows (in thousands of U.S. dollars): 2021 2020 2019 Foreign exchange forward contracts $ (16,788) $ (32,611) $ (41,171) Total included in Net foreign exchange losses $ (16,788) $ (32,611) $ (41,171) Futures contracts $ — $ — $ (9,952) Insurance-linked securities 4,807 (2,341) (4,381) Total return swaps 1,430 (845) — Interest rate swaps 7,020 (5,131) (5,230) TBAs (56) (510) — Other (298) 1,376 463 Total included in Net realized and unrealized investment gains $ 12,903 $ (7,451) $ (19,100) Total derivatives not designated as hedges $ (3,885) $ (40,062) $ (60,271) Offsetting of Derivatives The gross and net fair values of derivatives that are subject to offsetting in the Consolidated Balance Sheets at December 31, 2021 and 2020 were as follows (in thousands of U.S. dollars): Gross Net amounts of Gross amounts not offset December 31, 2021 Gross amounts recognized (1) Financial Cash collateral Net amount Total derivative assets $ 17,716 $ — $ 17,716 $ — $ (34,764) $ (17,048) Total derivative liabilities $ (18,225) $ — $ (18,225) $ — $ 1,671 $ (16,554) December 31, 2020 Total derivative assets $ 11,599 $ — $ 11,599 $ — $ (26,853) $ (15,254) Total derivative liabilities $ (33,359) $ — $ (33,359) $ — $ 11,503 $ (21,856) (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, 2021 | |
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, 2021, 2020 and 2019 were as follows (in thousands of U.S. dollars): Goodwill Definite- Indefinite- Total 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 Foreign currency translation — 10 — 10 Intangible assets amortization n/a (8,861) n/a (8,861) Balance at December 31, 2021 $ 456,380 $ 89,263 $ 9,555 $ 98,818 n/a: Not applicable The gross carrying value and accumulated amortization of intangible assets included in the Consolidated Balance Sheets at December 31, 2021 and 2020 were as follows (in thousands of U.S. dollars): December 31, 2021 December 31, 2020 Gross carrying Accumulated Net carrying value Gross carrying Accumulated Net carrying value Definite-lived intangible assets: Renewal rights $ 48,163 $ (40,786) $ 7,377 $ 48,163 $ (38,205) $ 9,958 Customer relationships 67,748 (52,661) 15,087 67,738 (47,867) 19,871 Life VOBA 75,583 (8,784) 66,799 75,583 (7,298) 68,285 Total definite-lived intangible assets $ 191,494 $ (102,231) $ 89,263 $ 191,484 $ (93,370) $ 98,114 Indefinite-lived intangible assets: Insurance licenses 9,555 n/a 9,555 9,555 n/a 9,555 Total intangible assets $ 201,049 $ (102,231) $ 98,818 $ 201,039 $ (93,370) $ 107,669 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, 2021 and 2020 was as follows (in thousands of U.S. dollars): 2021 2020 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- 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 2026 1,892 402 2,294 Thereafter 55,791 671 56,462 Total $ 66,799 $ 22,464 $ 89,263 |
Non-life and Life and Health Re
Non-life and Life and Health Reserves | 12 Months Ended |
Dec. 31, 2021 | |
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 at December 31, 2021 and 2020 was as follows (in thousands of U.S. dollars): December 31, 2021 December 31, 2020 Case reserves $ 4,881,892 $ 4,646,633 ACRs 140,464 171,381 IBNR reserves 7,025,436 6,577,307 Non-life reserves $ 12,047,792 $ 11,395,321 The reconciliation of the beginning and ending gross and net liability for non-life reserves for the years ended December 31, 2021, 2020 and 2019 was as follows (in thousands of U.S. dollars): 2021 2020 2019 Gross liability at beginning of year $ 11,395,321 $ 10,363,383 $ 9,895,376 Reinsurance recoverable at beginning of year 782,330 754,795 850,946 Net liability at beginning of year 10,612,991 9,608,588 9,044,430 Net incurred losses related to: (1) Current year 3,637,671 3,945,248 3,716,988 Prior years (194,426) 71,456 (56,848) 3,443,245 4,016,704 3,660,140 Net paid losses related to: Current year (437,938) (459,718) (439,285) Prior years (2,535,057) (2,772,886) (2,651,385) (2,972,995) (3,232,604) (3,090,670) Retroactive reinsurance recoverable (357,864) — (81,013) Effects of foreign exchange rate changes and other (210,251) 220,303 75,701 Net liability at end of year $ 10,515,126 $ 10,612,991 $ 9,608,588 Reinsurance recoverable at end of year 1,532,666 782,330 754,795 Gross liability at end of year $ 12,047,792 $ 11,395,321 $ 10,363,383 (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 at December 31, 2019. There were no incurred losses or non-life reserves allocated to Corporate and Other during 2021 or 2020. Prior Years' Reserve Development For the year ended December 31, 2021, the Company reported net favorable loss development for prior accident years resulting from favorable loss emergence in both the P&C and Specialty segments. The favorable loss emergence within the Specialty segment was across multiple accident years, predominantly from financial risks lines. The favorable loss emergence within the P&C segment was primarily from a refinement of loss estimates for certain large catastrophic events from accident years 2017 - 2019. 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. Retroactive Reinsurance Recoverable During the second quarter of 2021, the Company entered into a loss portfolio transfer and adverse development cover agreement related to prior underwriting years on the Company's U.S. casualty and auto business within the P&C segment. Premium paid for the loss portfolio transfer and adverse development cover agreement, resulted in a cash transfer for the premium at inception of the agreement, and a reinsurance recoverable of $358 million at December 31, 2021. At December 31, 2021 and as a result of adverse prior years reserve development ceded under this agreement, a deferred gain of $20 million was recorded in Accounts payable, accrued expense and other in the Consolidated Balance Sheet. This transaction is presented retrospectively in the net loss and loss expenses incurred development table for the Casualty business in Section (c) below. Reinsurance recoveries under this transaction are attributed to calendar year and accident year based on the underlying distribution of losses subject to the agreement. 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. 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. Asbestos and Environmental Claims The Company’s net non-life reserves at December 31, 2021 and 2020 included $44 million and $43 million, respectively, related to asbestos and environmental claims. The gross liability for such claims at December 31, 2021 and 2020 was $52 million and $50 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, 2021, 2020 and 2019 was as follows (in thousands of U.S. dollars): 2021 2020 2019 Gross liability at beginning of period $ 2,704,229 $ 2,417,044 $ 2,198,080 Reinsurance recoverable at beginning of period 35,662 16,183 11,829 Net liability at beginning of period $ 2,668,567 $ 2,400,861 $ 2,186,251 Net incurred losses (1) 1,440,739 1,318,196 1,263,016 Net losses paid (1,413,316) (1,230,383) (1,071,487) Effects of foreign exchange rate changes and other (78,904) 179,893 23,081 Net liability at end of period $ 2,617,086 $ 2,668,567 $ 2,400,861 Reinsurance recoverable at end of period 21,000 35,662 16,183 Gross liability at end of period $ 2,638,086 $ 2,704,229 $ 2,417,044 (1) During 2021 and 2020, certain life and health treaties were recaptured, resulting in total gains upon recapture of $15 million and $28 million respectively, recorded as a reduction to net incurred losses. Net incurred losses includes favorable prior years' reserve development of $5 million for the year ended December 31, 2021 and unfavorable prior years' reserve development of $52 million during the year ended December 31, 2020, which was 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, 2021, 2020 and 2019. 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 reserving segment level using either the ELR method or CL development 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, 2021, 2020 and 2019 were comprised as follows (in thousands of U.S. dollars): 2021 2020 2019 Non-life (1) $ 3,443,245 $ 4,016,704 $ 3,660,140 Life and Health 1,440,739 1,318,196 1,263,016 Losses and loss expenses $ 4,883,984 $ 5,334,900 $ 4,923,156 (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 2021, 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 2021, 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 2020 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, 2021 Accident year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Total of IBNR plus expected development on reported claims 2012 $ 2,342,553 $ 2,627,452 $ 2,371,984 $ 2,248,510 $ 2,495,148 $ 2,394,396 $ 2,243,436 $ 2,209,950 $ 2,197,815 $ 2,181,218 $ 10,086 2013 2,506,489 2,700,371 2,487,494 2,183,344 2,302,089 2,393,344 2,387,407 2,361,827 2,345,255 46,041 2014 2,416,677 2,596,191 2,478,039 2,467,234 2,477,572 2,434,886 2,400,662 2,385,988 65,254 2015 2,355,703 2,557,213 2,494,735 2,522,169 2,495,354 2,449,975 2,429,432 83,536 2016 2,398,444 2,597,779 2,570,484 2,544,389 2,522,270 2,537,312 167,323 2017 2,499,161 2,871,000 2,811,676 2,772,119 2,788,118 235,938 2018 2,548,563 3,093,669 3,120,388 3,130,397 333,906 2019 2,848,949 3,637,558 3,707,336 773,002 2020 4,051,824 3,867,443 1,728,949 2021 2,838,039 2,520,673 Total $ 28,210,538 $ 5,964,708 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 2021 2012 $ 294,313 $ 973,857 $ 1,338,878 $ 1,497,677 $ 1,593,864 $ 1,705,320 $ 1,754,704 $ 1,805,081 $ 1,825,434 $ 1,840,284 2013 287,566 1,275,211 1,623,541 1,825,345 1,961,269 2,055,408 2,123,294 2,161,355 2,188,318 2014 338,712 1,286,854 1,596,445 1,817,505 1,957,235 2,060,333 2,140,845 2,189,661 2015 335,368 1,191,883 1,603,381 1,842,842 2,004,838 2,114,625 2,191,493 2016 338,124 1,312,013 1,687,477 1,972,139 2,112,088 2,206,804 2017 406,218 1,447,213 1,853,527 2,148,343 2,276,982 2018 278,953 1,350,321 1,933,461 2,253,397 2019 445,090 1,574,942 2,154,188 2020 455,948 1,446,282 2021 412,023 Total $ 19,159,432 Net reserves for accident years and exposures included in the triangles $ 9,051,106 All outstanding liabilities before accident year 2012, net of reinsurance 1,102,911 Total outstanding liabilities for unpaid claims $ 10,154,017 AVERAGE ANNUAL PERCENTAGE PAYOUT OF INCURRED CLAIMS BY AGE, NET OF REINSURANCE - NON-LIFE Years 1 2 3 4 5 6 7 8 9 10 Non-life 13% 34% 16% 10% 5% 4% 3% 2% 1% 1% NET INCURRED LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - PROPERTY For the year ended December 31, December 31, 2021 Accident year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Total of IBNR plus expected development on reported claims 2012 $ 691,488 $ 658,283 $ 551,817 $ 533,256 $ 517,687 $ 518,564 $ 513,621 $ 502,869 $ 502,369 $ 494,145 $ 1,959 2013 639,026 586,694 546,588 531,833 525,745 517,468 515,376 514,873 512,546 842 2014 465,513 489,871 465,774 461,842 456,086 454,046 451,662 451,833 552 2015 550,216 581,923 557,092 548,666 545,180 541,160 546,732 3,810 2016 684,976 706,630 671,835 651,823 648,266 650,208 13,249 2017 973,654 1,039,936 973,452 945,066 937,829 20,219 2018 826,216 861,674 844,596 820,472 28,467 2019 741,448 849,547 831,461 47,475 2020 1,212,387 1,163,924 272,042 2021 809,517 572,794 Total $ 7,218,667 $ 961,409 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 2021 2012 $ 99,084 $ 345,731 $ 438,322 $ 472,761 $ 484,780 $ 494,267 $ 498,829 $ 505,649 $ 505,895 $ 508,477 2013 90,889 331,515 436,234 471,381 489,287 492,774 497,604 499,794 499,576 2014 97,352 319,121 393,013 421,164 431,055 436,472 441,065 443,167 2015 101,501 346,869 450,016 483,907 496,634 503,895 513,203 2016 148,109 469,162 567,654 609,863 626,616 637,028 2017 224,987 714,541 829,490 880,073 889,729 2018 80,881 530,024 669,153 710,866 2019 80,621 458,182 589,100 2020 111,470 537,865 2021 110,592 Total $ 5,439,603 Net reserves for accident years and exposures included in the triangles $ 1,779,064 All outstanding liabilities before accident year 2012, net of reinsurance 146,308 Total outstanding liabilities for unpaid claims $ 1,925,372 AVERAGE ANNUAL PERCENTAGE PAYOUT OF INCURRED CLAIMS BY AGE, NET OF REINSURANCE - PROPERTY Years 1 2 3 4 5 6 7 8 9 10 Property 16% 47% 16% 6% 2% 1% 1% 1% —% 1% NET INCURRED LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - CASUALTY For the year ended December 31, December 31, 2021 Accident year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Total of IBNR plus expected development on reported claims 2012 $ 706,442 $ 856,769 $ 769,092 $ 710,862 $ 698,668 $ 702,358 $ 696,110 $ 682,054 $ 677,161 $ 670,767 $ — 2013 748,691 880,676 784,615 763,208 761,477 757,032 747,422 728,645 724,170 39,469 2014 794,186 879,144 850,550 851,144 869,438 832,104 807,750 793,629 46,003 2015 684,702 808,679 788,933 830,644 794,732 775,384 752,036 64,297 2016 646,045 769,492 785,448 766,754 755,605 769,283 118,811 2017 594,988 748,588 738,743 729,083 736,701 154,030 2018 750,120 951,393 955,784 965,966 203,571 2019 949,925 1,245,536 1,301,249 458,841 2020 1,301,042 1,230,847 896,066 2021 926,608 1,304,107 Total $ 8,871,256 $ 3,285,195 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 2021 2012 $ 58,130 $ 136,891 $ 205,359 $ 280,428 $ 333,456 $ 385,934 $ 416,086 $ 440,686 $ 455,860 $ 469,540 2013 56,952 159,112 263,808 345,291 419,488 481,381 524,709 550,444 576,650 2014 74,189 196,301 300,377 398,606 486,503 556,159 619,160 657,810 2015 78,386 185,508 299,396 393,997 497,220 570,219 620,841 2016 29,216 144,840 252,780 383,788 471,880 539,688 2017 60,390 165,196 259,310 354,594 435,692 2018 60,039 206,791 335,624 446,609 2019 97,723 270,727 423,814 2020 99,909 269,206 2021 74,019 Total $ 4,513,869 Net reserves for accident years and exposures included in the triangles $ 4,357,387 All outstanding liabilities before accident year 2012, net of reinsurance 908,806 Total outstanding liabilities for unpaid claims $ 5,266,193 AVERAGE ANNUAL PERCENTAGE PAYOUT OF INCURRED CLAIMS BY AGE, NET OF REINSURANCE - CASUALTY Years 1 2 3 4 5 6 7 8 9 10 Casualty 8% 14% 13% 13% 11% 9% 6% 4% 3% 2% NET INCURRED LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - SPECIALTY For the year ended December 31, December 31, 2021 Accident year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Total of IBNR plus expected development on reported claims 2012 $ 944,623 $ 1,112,400 $ 1,051,075 $ 1,004,392 $ 1,278,793 $ 1,173,474 $ 1,033,705 $ 1,025,027 $ 1,018,285 $ 1,016,306 $ 8,127 2013 1,118,772 1,233,001 1,156,291 888,303 1,014,867 1,118,844 1,124,609 1,118,309 1,108,539 5,730 2014 1,156,978 1,227,176 1,161,715 1,154,248 1,152,048 1,148,736 1,141,250 1,140,526 18,699 2015 1,120,785 1,166,611 1,148,710 1,142,859 1,155,442 1,133,431 1,130,664 15,429 2016 1,067,423 1,121,657 1,113,201 1,125,812 1,118,399 1,117,821 35,263 2017 930,519 1,082,476 1,099,481 1,097,970 1,113,588 61,689 2018 972,227 1,280,602 1,320,008 1,343,959 101,868 2019 1,157,576 1,542,475 1,574,626 266,686 2020 1,538,395 1,472,672 560,841 2021 1,101,914 643,772 Total $ 12,120,615 $ 1,718,104 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 2021 2012 $ 137,099 $ 491,235 $ 695,197 $ 744,488 $ 775,628 $ 825,119 $ 839,789 $ 858,746 $ 863,679 $ 862,267 2013 139,725 784,584 923,499 1,008,673 1,052,494 1,081,253 1,100,981 1,111,117 1,112,092 2014 167,171 771,432 903,055 997,735 1,039,677 1,067,702 1,080,620 1,088,684 2015 155,481 659,506 853,969 964,938 1,010,984 1,040,511 1,057,449 2016 160,799 698,011 867,043 978,488 1,013,592 1,030,088 2017 120,841 567,476 764,727 913,676 951,561 2018 138,033 613,506 928,684 1,095,922 2019 266,746 846,033 1,141,274 2020 244,569 639,211 2021 227,412 Total $ 9,205,960 Net reserves for accident years and exposures included in the triangles $ 2,914,655 All outstanding liabilities before accident year 2012, net of reinsurance 47,797 Total outstanding liabilities for unpaid claims $ 2,962,452 AVERAGE ANNUAL PERCENTAGE PAYOUT OF INCURRED CLAIMS BY AGE, NET OF REINSURANCE - SPECIALTY Years 1 2 3 4 5 6 7 8 9 10 Specialty 15% 41% 17% 10% 4% 3% 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. 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, 2021 was as follows (in thousands of U.S. dollars): December 31, 2021 Total outstanding liability for unpaid claims Property $ 1,925,372 Casualty 5,266,193 Specialty 2,962,452 Total outstanding liabilities for unpaid claims $ 10,154,017 Unallocated loss expenses $ 187,139 U.S. health net reserves (1) 170,617 Other 3,353 Total other liabilities $ 361,109 Net liability at end of year $ 10,515,126 Reinsurance recoverable on unpaid claims Property $ 708,008 Casualty 519,597 Specialty 305,061 Reinsurance recoverable at end of year $ 1,532,666 Gross liability at end of year $ 12,047,792 (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, 2021 | |
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 either collateralized retrocessionaires or counterparties that have a credit rating of A- or higher. The Company established Lorenz Re Ltd. (“Lorenz Re”), a special purpose insurer registered as a segregated accounts company in Bermuda, as part of its third party capital platform to provide third party investors with access to portfolios of risk in the global reinsurance markets. Lorenz Re operates by providing fully collateralized reinsurance capacity to certain of the Company's operating subsidiaries in respect of multiple lines of business. Lorenz Re raises capital primarily from third party investors seeking exposure to the global reinsurance markets by issuing non-voting redeemable preferred shares in its individual segregated accounts. The proceeds from issuance of these preferred shares are deposited into trust accounts collateralizing varying portfolios of potential reinsurance recoverables, which have established investment guidelines that generally require assets to be held as either cash and cash equivalents or in U.S. government issued securities of high credit quality. For the years ended December 31, 2021, 2020 and 2019, the Company ceded premium written to Lorenz Re’s segregated cells of $634 million, $81 million and $70 million, respectively, and recorded a Reinsurance recoverable on paid and unpaid losses from the segregated cells of $592 million and $117 million as at December 31, 2021 and 2020, respectively. 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 assesses the current market conditions and reasonable and supportable forecasts for the likelihood of default. At December 31, 2021 and 2020, the Company's allowance for credit losses on its reinsurance recoverable balance was $3 million. (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, 2021, 2020 and 2019 were as follows (in thousands of U.S. dollars): Premiums Premiums Losses and Loss 2021 Non-life $ 6,557,055 $ 6,274,418 $ 4,212,465 Life and Health 1,646,870 1,651,485 1,454,065 Assumed $ 8,203,925 $ 7,925,903 $ 5,666,530 Non-life $ 1,046,227 $ 944,862 $ 769,220 Life and Health 23,680 24,519 13,326 Ceded $ 1,069,907 $ 969,381 $ 782,546 Non-life $ 5,510,828 $ 5,329,556 $ 3,443,245 Life and Health 1,623,190 1,626,966 1,440,739 Net $ 7,134,018 $ 6,956,522 $ 4,883,984 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 (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, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt The debt outstanding and the carrying value recorded in the Consolidated Balance Sheets at December 31, 2021 and 2020 was comprised as follows (in thousands): December 31, 2021 December 31, 2020 Commitment Carrying Value Fair Value Carrying Value Fair Value Senior notes due 2029 $ 500,000 $ 496,620 $ 561,099 $ 496,168 $ 586,057 Senior notes due 2026 € 750,000 843,950 882,126 914,223 985,352 Junior subordinated notes due 2050 $ 500,000 494,445 526,522 494,251 523,685 Capital efficient notes due 2066 $ 62,484 62,484 55,248 70,089 61,013 Debt $ 1,897,499 $ 2,024,995 $ 1,974,731 $ 2,156,107 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 initially determined that the U.S. financing entities were VIEs but that the Company was not the primary beneficiary and, as a result, did not consolidate the U.S. finance entities. At December 31, 2020 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 is recorded as Interest expense in the Consolidated Statements of Operations for the years ended December 31, 2020 and 2019. During 2021, the Company determined that it was the primary beneficiary of the U.S. finance entities and they are now consolidated as of and for the year ended December 31, 2021. As a result, the debt issued externally has been reflected as Debt in the Consolidated Balance Sheets at December 31, 2021 and the related interest is recorded as Interest expense in the Consolidated Statements of Operations for the year ended December 31, 2021. Consolidation of the U.S finance entities did not have a material impact to the Consolidated Financial Statements. The Irish finance entity is wholly-owned by PartnerRe Holdings Europe Limited, a wholly owned subsidiary of the Company. The Company determined that the Irish finance entity 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. Senior notes due 2020 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. On July 19, 2019, the Company early redeemed these senior notes 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. Senior notes due 2029 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. These senior notes are ranked as senior unsecured obligations of PartnerRe Finance B LLC and PartnerRe Ltd. has fully and unconditionally guaranteed all obligations of PartnerRe Finance B LLC related to these senior notes. PartnerRe Ltd.’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. Senior notes due 2026 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. Unless previously redeemed, the notes mature on September 15, 2026. These senior notes are ranked as senior unsecured obligations of PartnerRe Ireland Finance DAC. PartnerRe Ltd. has fully and unconditionally guaranteed all obligations of PartnerRe Ireland Finance DAC under these senior notes. PartnerRe Ltd.’s obligations under this guarantee are senior and unsecured and rank equally with all other senior unsecured indebtedness. Junior subordinated notes due 2050 In September 2020, PartnerRe Finance B LLC issued $500 million aggregate principal amount of 4.500% fixed-rate reset junior subordinated notes at par. The net proceeds of the issuance, after consideration of the underwriting expenses, commissions and other expenses, totaled $494 million. Commencing on April 1, 2021, interest on these notes is payable semi-annually at an annual fixed rate of 4.500% until the first reset date on October 1, 2030. From the first reset date, and resetting every five years thereafter, the notes will bear interest at an annual rate equal to the five-year treasury rate plus 3.815%. These junior subordinated notes may be redeemed at the option of the issuer, in whole or in part, at any time, with early redemption outside of a par call period requiring the payment of a make-whole premium. Par call periods occur between April 1 and October 1 in each year in which the interest rate resets. Early redemption prior to October 1, 2025 is subject to the Bermuda Monetary Authority's approval. Unless previously redeemed, the notes mature on October 1, 2050. These notes are ranked as unsecured junior subordinated obligations, and will rank junior in right of payment to all outstanding and future senior indebtedness of PartnerRe Finance B LLC and PartnerRe Ltd. has fully and unconditionally guaranteed all obligations of PartnerRe Finance B LLC related to these junior subordinated notes. PartnerRe Ltd.’s obligations under this guarantee are unsecured junior subordinated obligations and rank junior in right of payment to all its outstanding and future senior indebtedness, and equally in right of payment with all outstanding and future unsecured indebtedness that is by its terms equal in right of payment to the junior subordinated notes. Capital efficient notes due 2066 In November 2006, PartnerRe Finance II Inc. issued Fixed-to-Floating Rate Junior Subordinated Capital Efficient Notes (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, 2021 and 2020 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, 2021 and 2020 was $70 million. Interest on the CENts 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. 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. PartnerRe Ltd. has fully and unconditionally guaranteed all obligations of PartnerRe Finance II Inc. related to these junior subordinated notes. PartnerRe Ltd.’s obligations under this guarantee are unsecured junior subordinated obligations and rank junior in right of payment to all its outstanding and future senior indebtedness, and equally in right of payment with all outstanding and future unsecured indebtedness that is by its terms equal in right of payment to the junior subordinated notes. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Authorized Shares At December 31, 2021 and 2020, the total authorized share capital (common and preferred) of the Company was $200 million. Common Shares At December 31, 2021 and 2020, 100 million authorized and issued Class A common shares of $0.00000001 par value each were owned by EXOR Nederland N.V. See Note 13 for discussion of Class B and C common shares. Redeemable Preferred Shares At December 31, 2021, 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 J Date of issuance March 2021 Number of preferred shares outstanding 8,000,000 Annual dividend rate 4.875 % Underwriting discounts and commissions $ 6.1 Aggregate liquidation value, at $25 per share $ 200.0 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 6.500 % 7.250 % 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 series G, H and I shares as a result of the share exchange in May 2016 for $nil consideration. On May 3, 2021, the Company redeemed all outstanding Series G, Series H and Series I preferred shares at $25 per share for an aggregate liquidation value of $637 million. In addition, unpaid preferred dividends accrued to the redemption date totaling $7 million were paid. In connection with the redemption, the Company recognized a loss of $21 million related to the deferred issuance costs paid upon issuance which were included in Additional paid-in capital related to the Series G, H and I 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 $21 million was recognized as a deemed preferred dividend in retained earnings and in determining the Net income available to common shareholder. On March 15, 2021, the Company issued 8,000,000 4.875% Series J fixed rate non-cumulative redeemable preferred shares at a par value of $1.00 per share and a redemption price of $200 million. The Company incurred issuance costs directly attributable to the new preferred shares of $6 million. The Series J preferred shares will remain outstanding into perpetuity, unless and until the Company decides to redeem them. The shares are not callable by the Company until March 15, 2026. On and after March 15, 2026, the Series J Preferred Shares will be redeemable at the Company’s option, in whole or from time to time in part, at a redemption price equal to $25 per Series J Preferred Share, plus declared and unpaid dividends. Dividends on the Series J preferred shares are non-cumulative and are payable quarterly in arrears. In the event of liquidation of the Company, the Series J preferred shares rank senior to the common shares, and the holders of the preferred shares would receive a distribution of $25 per share plus any declared 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. |
Dividend Restrictions and Statu
Dividend Restrictions and Statutory Requirements | 12 Months Ended |
Dec. 31, 2021 | |
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. On December 16, 2021, Exor announced that it had signed a definitive agreement with Covéa Cooperations S.A. (Covéa), under which Covéa will acquire PartnerRe’s common shares. Pursuant to that definitive agreement, certain dividends may not be paid on common shares absent consent. At December 31, 2021, 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, 2021, 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, the deferral of gains on retroactive reinsurance on non-life business 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 minimum liquidity ratios, 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) and to maintain a minimum general business liquidity ratio equal to the value of its relevant assets at not less than 75% of the amount of its relevant liabilities. The ECR is calculated with reference to the Bermuda Solvency Capital Requirement model, which is a risk-based capital model. At December 31, 2021, the maximum dividend that PartnerRe Bermuda could pay without prior regulatory approval was approximately $805 million. The reporting deadline for the annual submission is April 30, 2022. 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, 2022. 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, 2022. 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, 2022. The statutory financial statements and returns of the Company’s reinsurance subsidiaries as at, and for the year ended, December 31, 2021 are due to be submitted to the relevant regulatory authorities later in 2022, 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 2020 and 2019. The statutory net income (loss) of PartnerRe Bermuda, PartnerRe Europe, PartnerRe U.S. and PartnerRe Asia for the years ended December 31, 2021, 2020 and 2019 was as follows (in millions of U.S. dollars): 2021 2020 2019 PartnerRe Bermuda $ 900 $ (52) $ 863 PartnerRe Europe $ 28 $ 237 $ 188 PartnerRe U.S. $ 68 $ 28 $ (106) PartnerRe Asia $ (22) $ (2) $ 17 The required and actual statutory capital and surplus of PartnerRe Bermuda, PartnerRe Europe, PartnerRe U.S. and PartnerRe Asia at December 31, 2021 and 2020 was as follows (in millions of U.S. dollars): PartnerRe Bermuda (1) PartnerRe Europe PartnerRe U.S. PartnerRe Asia 2021 2020 2021 2020 2021 2020 2021 2020 Required statutory capital and surplus $ 2,751 $ 2,359 $ 1,873 $ 1,618 $ 1,244 $ 1,080 $ 50 $ 48 Actual statutory capital and surplus $ 6,022 $ 5,070 $ 2,744 $ 2,417 $ 1,369 $ 1,169 $ 233 $ 253 (1) Required statutory capital and surplus is calculated at the Target Capital Level In addition to the required statutory capital and surplus requirements for the reinsurance subsidiaries in the table above, the Company is required to assess its solvency capital needs both at a Group and subsidiary level. The Company’s capital requirements determine the amount of capital available to be declared as dividends to its shareholders. As Group Supervisor, the Bermuda Monetary Authority is tasked with assessing the financial condition of the Group and coordinates the dissemination of information to other relevant authorities for the purpose of assisting in their regulatory functions and the enforcement of regulatory action against the Company or any of its subsidiaries, including the power to impose restrictions on the ability of the relevant subsidiaries to declare dividends to the Company, and the ability of the Company to pay dividends to shareholders. In addition, the Company is required to maintain the Group ECR imposed by the BMA under Bermuda law. The Company is currently completing the 2021 group BSCR, which must be filed with the BMA on or before May 31, 2022, and at this time, we believe we will exceed the ECR. |
Taxation
Taxation | 12 Months Ended |
Dec. 31, 2021 | |
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 2013-2021 in the U.S., 2016-2021 in Hong Kong, 2017-2021 in Canada, Singapore and Ireland, 2018-2021 in France and 2019-2021 in Switzerland. As a global organization, the Company may be subject to a variety of transfer pricing or permanent establishment challenges by taxing authorities in various jurisdictions. While management believes that adequate provision has been made in the Consolidated Financial Statements for any potential assessments that may result from tax examinations for all open tax years, the completion of tax examinations for open years may result in changes to the amounts recognized in the Consolidated Financial Statements. Income tax expense (benefit) for the years ended December 31, 2021, 2020 and 2019 was as follows (in thousands of U.S. dollars): 2021 2020 2019 Current income tax expense (benefit) U.S. $ 31,216 $ (97,155) $ 12,899 Non U.S. 18,293 44,764 64,069 Total current income tax expense (benefit) $ 49,509 $ (52,391) $ 76,968 Deferred income tax (benefit) expense U.S. $ (9,404) $ 60,932 $ (25,850) Non U.S. (1,687) (25,560) 4,268 Total deferred income tax (benefit) expense $ (11,091) $ 35,372 $ (21,582) Unrecognized tax (benefit) expense U.S. $ — $ — $ — Non U.S. (199) 3,928 (2,850) Total unrecognized tax (benefit) expense $ (199) $ 3,928 $ (2,850) Total income tax expense (benefit) U.S. $ 21,812 $ (36,223) $ (12,951) Non U.S. 16,407 23,132 65,487 Total income tax expense (benefit) $ 38,219 $ (13,091) $ 52,536 Income 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 before taxes was as follows for the years ended December 31, 2021, 2020 and 2019 (in thousands of U.S. dollars): 2021 2020 2019 Domestic (Bermuda) $ 636,043 $ 3,894 $ 715,912 Foreign 125,580 237,204 273,372 Income before taxes $ 761,623 $ 241,098 $ 989,284 Reconciliation of effective tax rate (% of income before taxes) Expected tax rate 0.0 % 0.0 % 0.0 % Foreign taxes at local expected tax rates 5.7 15.5 6.5 Impact of foreign exchange gains or losses (0.1) (8.1) (0.5) Unrecognized tax expense (benefit) — 1.6 0.2 Tax-exempt income and expenses not deductible (0.4) (1.4) (0.6) Foreign branch tax 0.1 (3.3) (1.2) Valuation allowance 0.6 3.4 0.7 Other (0.9) (13.1) 0.2 Actual tax rate 5.0 % (5.4) % 5.3 % 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, 2021 and 2020 were as follows (in thousands of U.S. dollars): December 31, 2021 December 31, 2020 Net tax assets $ 154,472 $ 182,077 Net tax liabilities (90,974) (131,621) Net tax assets $ 63,498 $ 50,456 December 31, 2021 December 31, 2020 Net current tax assets $ 117,872 $ 112,992 Net deferred tax liabilities (45,098) (52,263) Net unrecognized tax benefit (9,276) (10,273) Net tax assets $ 63,498 $ 50,456 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, 2021 and 2020 were as follows (in thousands of U.S. dollars): December 31, 2021 December 31, 2020 Deferred tax assets Discounting of loss reserves and adjustment to life policy reserves $ 18,340 $ 11,741 Foreign tax credit carryforwards 180,510 198,263 Tax loss carryforwards 106,555 57,485 Unearned premiums 36,421 34,760 Statutory basis funds held 58,899 — Unrealized appreciation and timing differences on foreign exchange revaluations 3,838 20,493 Other deferred tax assets 47,034 42,754 $ 451,597 $ 365,496 Valuation allowance (211,798) (211,167) Deferred tax assets $ 239,799 $ 154,329 Deferred tax liabilities Deferred acquisition costs $ 75,924 $ 67,850 Goodwill and other intangibles 56,870 58,224 Statutory basis reserves 114,240 — Equalization reserves 7,192 7,366 Unrealized appreciation and timing differences on investments 4,877 46,389 Other deferred tax liabilities 25,794 26,763 Deferred tax liabilities $ 284,897 $ 206,592 Net deferred tax liabilities $ (45,098) $ (52,263) 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, 2021 relates to a foreign tax credit carryforward of $181 million in Ireland, and net deferred tax assets of $6 million in Canada, $12 million in the United Kingdom and $13 million in the United States. The valuation allowance recorded at December 31, 2020 related 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. At December 31, 2021, the deferred tax assets included tax loss carryforwards (after valuation allowance) of $44 million in the United States, $19 million in Singapore, $6 million in Switzerland, $5 million in Canada and $2 million in Hong Kong. These can be carried forward for an unlimited period of time except Canada which is limited to twenty years and Switzerland which is limited to seven years. 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. The total amount of unrecognized tax benefits for the years ended December 31, 2021, 2020 and 2019 was as follows (in thousands of U.S. dollars): 2021 2020 2019 Balance at January 1 $ 10,273 $ 5,689 $ 8,743 Changes in tax positions taken during a prior year (199) 3,870 (4,229) Tax positions taken during the current year — — 1,379 Impact of the change in foreign currency exchange rates (798) 714 (204) Balance at December 31 $ 9,276 $ 10,273 $ 5,689 For the years ended December 31, 2021, 2020 and 2019, 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, 2021, an unrecognized tax benefit of $3 million is reasonably expected to reverse within twelve months. |
Share-Based Incentives
Share-Based Incentives | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Incentives | Share-Based Incentives The Company has issued Class B common shares (Class B shares), Class C common shares (Class C shares) and restricted share units to certain executives and directors of the Company. The Class B shares and Class C shares rank pari passu with each other in all respects. Class C Shares and Restricted Share Unit Plan During 2021, the Company designated a new class of voting Class C shares and also adopted a related restricted share unit plan and French sub-plan (collectively the “RSU Plan”). The RSU Plan provides for the award of restricted share units to certain executives of the Company (each a “Participant”). Grants under the RSU plan are split evenly between restricted share units and performance share units (collectively referred to as RSUs) which are adjusted for personal performance (range of 75% to 125% of target) and Company performance (range of 50% to 150% of target), respectively, after one year following the date of grant. RSUs are generally granted on March 1 of a given year, and the target number of RSUs initially granted is determined based on a long-term incentive (“LTI”) target award amount divided by the latest U.S. GAAP book value (or common shareholder’s equity) per share published as of December 31. The RSUs are granted at $nil consideration and cliff vest after a three Class C shares can also be purchased by or granted to certain executives or non-executive directors of the Company, provided requisite approvals have been granted, at the discretion of the Company's Board of Directors. Purchases of Class C shares are based on the latest U.S. GAAP book value as of the applicable valuation date. Unrestricted Class C shares can be sold back to the Company at a redemption price based on the Company’s U.S. GAAP book value per share as of the applicable valuation date, at the discretion of the Company as further defined in the RSU Agreement and RSU Plan. The RSU Plan requires that the Participant can only sell Class C shares back to the Company provided that the Participant holds cumulative Class B and Class C shares and RSUs in the amount of a minimum of two times their gross annual long-term incentive (LTI) target value, unless otherwise agreed (the “Minimum Holding Requirement”). Class B Shares During 2017, the Company designated a class of voting Class B shares. Prior to the approval of the new Class C shares and related RSU Plan in 2021, Class B shares could 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 Class B Certificate of Designation, or any sub-plan or addendum thereto. Effective 2021, the Company no longer grants Class B shares or authorizes new purchases of Class B shares. Prior to 2021, grants of restricted Class B shares were made by the Company twice per year as of March 1 or September 1, and the number of shares granted was determined based on a LTI award amount divided by the latest U.S. GAAP book value (or common shareholder's equity) per share published as of the most recent valuation date, being either December 31 or June 30. The granted Class B shares in some instances were issued net of share equivalent to settle related withholding taxes. Restricted Class B shares were 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, retirement of the shareholder, or change of control for the Company. Notwithstanding these provisions, the Company's Board of Directors has authority to accelerate the restriction period at its own discretion. Purchases of unrestricted Class B shares were based on the latest U.S. GAAP book value as of the applicable valuation date. Unrestricted Class B shares can be sold back to the Company, subject to the Minimum Holding Requirement or any applicable restrictions as per the Class B Certificate of Designation. Summary of Activity Restricted Class B shares, Class C shares and RSUs granted are recognized at fair value over the requisite service period. The Company has elected to recognize forfeitures as they occur rather than estimating service-based forfeitures over the requisite service period. The Class B shares, Class C shares and RSUs are accounted for as liabilities, with $24 million and $15 million included in Accounts payable, accrued expense and other in the Consolidated Balance Sheets at December 31, 2021 and 2020, respectively. The compensation expense related to Class B shares, Class C shares and RSUs for the years ended December 31, 2021, 2020, and 2019 was $13 million, $11 million and $10 million, respectively, included in Other expenses in the Company's Consolidated Statements of Operations. There were repurchases by the Company of $3 million and $11 million Class B shares for the years ended December 31, 2021 and 2020, respectively. The following table provides an activity summary of the Company's Class B shares, Class C shares, and RSUs outstanding: RSUs (1) Outstanding December 31, 2020 — Granted 263,214 Outstanding December 31, 2021 263,214 (1) For RSUs, the number of grants in the table are shown at the maximum number that can be attained if the performance conditions are fully met for personal and Company performance. Restricted Class C shares Unrestricted Class C shares Total Class C shares Outstanding December 31, 2020 — — — Granted 7,373 — 7,373 Purchased — 2,072 2,072 Outstanding December 31, 2021 7,373 2,072 9,445 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 Repurchased (29,048) (22,957) (52,005) Expiration of restricted period (20,298) 20,298 — Outstanding December 31, 2021 139,820 82,839 222,659 |
Retirement Benefit Arrangements
Retirement Benefit Arrangements | 12 Months Ended |
Dec. 31, 2021 | |
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. 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 The Company incurred expenses for these defined contribution arrangements of $13 million for the years ended December 31, 2021, 2020 and 2019, respectively, included within Other expenses in the Company's Consolidated Statements of Operations. Active Defined Benefit Plan The majority of the defined benefit obligation at December 31, 2021 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). At December 31, 2021 and 2020, the funded status of the Zurich Plan was as follows (in thousands of U.S. dollars): 2021 2020 Underfunded pension obligation at beginning of year $ 62,050 $ 44,442 Change in pension obligation Service cost $ 11,811 $ 10,961 Interest cost 228 520 Plan participants’ contributions 4,048 4,056 Actuarial (gain) loss (24,211) 12,023 Benefits paid (1,651) (3,910) Foreign currency adjustments (8,735) 20,550 Settlements (20,682) — Change in pension obligation $ (39,192) $ 44,200 Change in fair value of plan assets Actual return on plan assets $ 6,847 $ 2,820 Employer contributions 8,035 7,941 Plan participants’ contributions 4,048 4,056 Benefits paid (1,651) (3,910) Foreign currency adjustments (6,375) 15,685 Settlements (20,682) — Change in fair value of plan assets $ (9,778) $ 26,592 Underfunded pension obligation at end of year $ 32,636 $ 62,050 Additional information: Projected benefit obligation at end of year (1) $ 202,920 $ 242,112 Fair value of plan assets at end of year $ 170,284 $ 180,062 Underfunded pension obligation at end of year $ 32,636 $ 62,050 Accumulated pension obligation at end of year (2) $ 194,730 $ 231,419 (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, 2021 and 2020, the underfunded pension obligation of $33 million and $62 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, 2021 and 2020 were cumulative losses of $7 million (net of $2 million of taxes) and $30 million (net of $8 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, 2021, 2020 and 2019 was $8 million, $5 million and $5 million, respectively. The projected benefit obligation decreased by $39 million during 2021, driven primarily by an update of actuarial demographic assumptions to reflect recently released actuarial tables, a decrease in members and $21 million of settlements during the year. This was offset by decreases to the fair value of plan assets of $10 million, due primarily to $21 million of settlements during the year, partially offset by $8 million in employer contributions and the actual return on plan assets. In 2020 the increase in the projected benefit obligation was 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. This was offset by increases to the fair value of plan assets of $27 million, due primarily to $16 million in foreign currency adjustments and $8 million in employer contributions. 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. The Zurich Plan is a partially insured scheme participating in a single investment pool under the pension provider. As at December 31, 2021 and 2020, the coverage ratio was 115% and 112%, respectively, based on the performance of the assets. The actual return on plan assets for the years ended December 31, 2021 and 2020 was $7 million and $3 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, 2021 and 2020 was $170 million and $180 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). The assumptions used to determine the Zurich Plan’s pension obligation and net periodic benefit cost for the years ended December 31, 2021, 2020 and 2019 were as follows: 2021 2020 2019 Pension Net periodic Pension Net periodic Pension Net periodic Discount rate 0.20 % 0.10 % 0.10 % 0.25 % 0.25 % 1.00 % 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 % — 3.50 % Rate of compensation increase 2.00 % 2.00 % 2.00 % 2.00 % 2.00 % 2.00 % At December 31, 2021, estimated employer contributions to be paid in 2022 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 2022 $ 8,578 2023 $ 9,219 2024 $ 8,838 2025 $ 9,824 2026 $ 11,457 2027 to 2031 $ 49,075 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
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’ securities. At December 31, 2021, other than the U.S. government 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, 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. 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. At December 31, 2021 and 2020, the Company's allowance for credit losses for its reinsurance balances receivable was $10 million and $9 million, respectively. 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. At December 31, 2021, the Company's allowance for credit losses was $4 million for funds held by reinsured companies and $1 million for deposit assets. This compared to allowance for credit losses of $7 million for funds held by reinsured companies and $2 million for deposit assets, respectively, at December 31, 2020. 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, 2021 and 2020 (in thousands of U.S. dollars): 2021 2020 Operating lease costs $ 14,928 $ 16,403 Variable lease costs 904 724 Sublease income (368) (1,194) Total lease costs $ 15,464 $ 15,933 Other information: Operating lease right-of-use assets (1) $ 75,010 $ 64,746 Operating lease liabilities (2) $ 85,462 $ 75,463 Operating lease right-of-use assets obtained in exchange for lease obligations, non-cash $ 26,553 $ 852 Operating cash outflows from operating leases $ 16,874 $ 16,495 Weighted-average remaining lease term on operating leases (3) 8.9 Yrs 9.1 Yrs Weighted-average discount rate on operating leases (4) 2.4 % 2.7 % (1) Included in Other assets (2) Included in Accounts payable, accrued expenses and other (3) 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 (4) 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, 2021 (in thousands of U.S. dollars): Year Expected cash flows 2022 $ 13,453 2023 12,834 2024 14,452 2025 11,586 2026 10,751 2027 to 2038 34,104 Discount (11,718) Total discounted operating lease liabilities $ 85,462 The Company has additional lease commitments of $4 million related to leases that will not commence until 2022, with contractual lease terms of up to 8 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, 2021. (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 $34 million, with $19 million and $7 million to be paid during 2022 and 2023, respectively, and the remainder to be paid through 2029. The Company has entered into certain investments, including investments in VIEs (see Note 4(e)), with unfunded capital commitments. As of December 31, 2021, the Company expects to fund capital commitments totaling $687 million with $335 million, $130 million, $106 million, $25 million, and $91 million to be paid during 2022, 2023, 2024, 2025 and 2026, respectively. 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, 2021, 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. While the outcome of any such 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. In 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. |
Credit Agreements
Credit Agreements | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021, 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 each year on December 31, and automatically extends for a further year unless canceled by either counterparty. • $100 million secured credit facility, that matures each year on December 21, 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 $441 million on a secured basis at December 31, 2021 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, 2021, no conditions of default existed under these facilities. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions During 2021 and 2020, the Company declared and paid to EXOR Nederland N.V. common share dividends totaling $107 million and $50 million, respectively. In the normal course of its investment operations, the Company bought or held securities of companies affiliated with the Company, including the following: • In 2021, the Company invested in two Exor managed funds. At December 31, 2021, the carrying value of these investments totaled $468 million. Net unrealized gains related to these funds of $115 million were recorded in the Consolidated Statements of Operations for the year ended December 31, 2021. These investments are recorded at fair value and included within Other invested assets in the Consolidated Balance Sheets. • 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, the carrying value of the Company's investment in the limited partnership was $51 million, and was accounted for using the equity method and was included within Other invested assets in the Consolidated Balance Sheets. During 2021, the Company sold its interest in Exor Seeds L.P. to Exor S.A. at a transaction price of $51 million. • In 2017, the Company invested $500 million in two Exor managed public equity funds. At December 31, 2021 and 2020, the carrying value of these investments totaled $1,154 million and $1,039 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 $115 million, $91 million, and $385 million were recorded in the Consolidated Statements of Operations for the years ended December 31, 2021, 2020 and 2019, 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, 2021, 2020 and 2019, 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 $433 thousand, $310 thousand and $221 thousand for services rendered in 2021, 2020 and 2019, respectively. • investment advisory services and use of certain office space, where the Company paid $175 thousand, $259 thousand and $254 thousand related to services provided in 2021, 2020 and 2019, respectively. This agreement was terminated in 2021. • certain advisory services for a fixed annual fee of $350 thousand which was amended in 2021 from $500 thousand in 2020 and 2019. • consulting services related to certain investments such as alternative fixed income, real estate, public equity and private equity funds as well as co-invest opportunities. The related consulting service agreement was effective April 1, 2021 and the Company paid $2.6 million related to services provided in 2021. In the normal course of its underwriting activities, the Company has entered into reinsurance agreements with companies affiliated with the Company. Refer to Note 8(a) for further details. The transactions between related parties discussed above were entered into at arm's-length. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021, 2020 and 2019 are presented below (in millions of U.S. dollars, except ratios). Segment Information For the year ended December 31, 2021 P&C Specialty Total Life Corporate Total Gross premiums written $ 4,541 $ 2,016 $ 6,557 $ 1,647 $ — $ 8,204 Net premiums written $ 3,722 $ 1,789 $ 5,511 $ 1,623 $ — $ 7,134 (Increase) decrease in unearned premiums (194) 13 (181) 4 — (177) Net premiums earned $ 3,528 $ 1,802 $ 5,330 $ 1,627 $ — $ 6,957 Losses and loss expenses (2,391) (1,052) (3,443) (1,441) — (4,884) Acquisition costs (864) (415) (1,279) (108) — (1,387) Technical result $ 273 $ 335 $ 608 $ 78 $ — $ 686 Other income — — — 26 3 29 Other expenses (71) (30) (101) (88) (210) (399) Underwriting result $ 202 $ 305 $ 507 $ 16 n/a $ 316 Net investment income 81 295 376 Allocated underwriting result $ 97 n/a n/a Net realized and unrealized investment gains 38 38 Interest expense (56) (56) Amortization of intangible assets (9) (9) Net foreign exchange losses (31) (31) Income tax expense (38) (38) Interest in earnings of equity method investments 127 127 Net income n/a $ 723 Loss ratio (1) 67.8 % 58.4 % 64.6 % Acquisition ratio (2) 24.5 23.0 24.0 Technical ratio (3) 92.3 % 81.4 % 88.6 % Other expense ratio (4) 2.0 1.7 1.9 Combined ratio (5) 94.3 % 83.1 % 90.5 % (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, 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 75.5 % 86.0 % 79.5 % Acquisition ratio 24.8 24.8 24.8 Technical ratio 100.3 % 110.8 % 104.3 % Other expense ratio 1.9 1.4 1.7 Combined ratio 102.2 % 112.2 % 106.0 % 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 % The following table provides the geographic distribution of gross premiums written by region for the years ended December 31, 2021, 2020 and 2019 (in millions of U.S. dollars, except percentages): 2021 2020 2019 North America $ 4,649 57 % $ 3,794 55 % $ 3,752 51 % Europe 2,410 29 1,921 28 2,155 30 Asia, Australia and New Zealand 814 10 806 12 835 11 Latin America and the Caribbean 189 2 220 3 264 4 Middle East, Africa, Russia and the Commonwealth of Independent States (CIS) 142 2 135 2 279 4 Total $ 8,204 100 % $ 6,876 100 % $ 7,285 100 % The following table provides the gross premiums written by segment and line of business for the years ended December 31, 2021, 2020 and 2019 (in millions of U.S. dollars, except percentages): 2021 2020 2019 P&C Casualty $ 2,145 $ 1,430 $ 1,394 Catastrophe 924 545 537 Property 809 641 644 U.S. health 351 379 391 Multiline and other 183 289 213 Motor 129 158 400 Total P&C $ 4,541 $ 3,442 $ 3,579 Specialty Financial risks $ 510 $ 568 $ 587 Aviation and space 416 219 286 Energy 314 192 183 Property 277 173 151 Agriculture 205 468 483 Marine 174 142 132 Engineering 100 17 102 Multiline and other 20 152 276 Casualty — 4 13 Total Specialty $ 2,016 $ 1,935 $ 2,213 Life and Health $ 1,647 $ 1,499 $ 1,493 Total $ 8,204 $ 6,876 $ 7,285 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 5% of total gross premiums written during each of the years ended December 31, 2021, 2020 and 2019. The Company has two brokers that individually accounted for 10% or more of its gross premiums written during the years ended December 31, 2021, 2020 and 2019, as follows: 2021 2020 2019 Marsh (including Guy Carpenter) 28 % 30 % 28 % Aon Group (including the Benfield Group) 24 % 21 % 22 % The following table summarizes the percentage of gross premiums written through these two brokers by segment for the years ended December 31, 2021, 2020 and 2019: 2021 2020 2019 P&C 63 % 64 % 60 % Specialty 66 % 64 % 62 % Life and Health 6 % 6 % 8 % |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsOn February 17, 2021, the Company's Board of Directors declared a dividend for the period December 15, 2021 – March 14, 2022 of $0.3046875 per share on the Company’s 4.875%% Fixed Rate Non-Cumulative Redeemable Preferred Shares, Series J. The dividend is payable on March 15, 2022 to shareholders of record on February 28, 2022. |
SCHEDULE I - Consolidated Summa
SCHEDULE I - Consolidated Summary of Investments Other Than Investments in Related Parties | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 (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 $ 2,172,462 $ 2,118,772 $ 2,118,772 U.S. states, territories and municipalities 89,344 108,059 108,059 Non-U.S. sovereign government, supranational and government related 2,174,383 2,181,127 2,181,127 Corporate bonds 5,504,934 5,441,908 5,441,908 Asset-backed securities 16,764 16,764 16,764 Residential mortgage-backed securities 4,223,423 4,204,644 4,204,644 Fixed maturities $ 14,181,310 $ 14,071,274 $ 14,071,274 Equities Common stocks Banks, trust and insurance companies $ 99,202 $ 97,982 $ 97,982 Industrial, miscellaneous and all other 796,100 1,641,192 1,641,192 Nonredeemable preferred stocks 8,012 12,410 12,410 Equities $ 903,314 $ 1,751,584 $ 1,751,584 Short-term investments $ 213,047 $ 205,146 $ 205,146 Other invested assets (2) $ 2,756,573 $ 3,601,245 Investments in real estate (3) $ — $ 67,539 Total $ 18,784,577 $ 19,696,788 (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 $845 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, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Financial Information of Parent Company Only | SCHEDULE II PartnerRe Ltd. Condensed Balance Sheets—Parent Company Only (Expressed in thousands of U.S. dollars, except parenthetical share and per share data) December 31, 2021 December 31, 2020 Assets Fixed maturities, at fair value (amortized cost: 2021, $85,811; 2020, $517,294) $ 85,111 $ 519,967 Cash and cash equivalents 1,988 10,020 Investments in subsidiaries 9,757,268 9,291,985 Intercompany loans and balances receivable 24,834 21,559 Other 19,906 11,443 Total assets $ 9,889,107 $ 9,854,974 Liabilities Intercompany loans and balances payable (1) $ 2,297,350 $ 2,490,500 Accounts payable, accrued expenses and other 47,771 37,477 Total liabilities 2,345,121 2,527,977 Shareholders’ Equity Common shares (par value $0.00000001; issued and outstanding: 100,000,000 shares) — — Preferred shares (par value $1.00; issued and outstanding: 2021, 8,000,000 shares; 2020, 25,489,636 shares; aggregate liquidation value: 2021, $200,000; 2020, $637,241) 8,000 25,490 Additional paid-in capital 1,929,934 2,334,564 Accumulated other comprehensive loss (29,706) (96,005) Retained earnings 5,635,758 5,062,948 Total shareholders’ equity 7,543,986 7,326,997 Total liabilities and shareholders’ equity $ 9,889,107 $ 9,854,974 (1) The parent has fully and unconditionally guaranteed all obligations of PartnerRe Finance B LLC and PartnerRe Finance Ireland DAC, a 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. The parent has also fully and unconditionally guaranteed all obligations of PartnerRe Finance II Inc. and PartnerRe Finance B LLC, 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 junior subordinated obligations and rank junior in right of payment to all of the parent's outstanding and future senior indebtedness, and equally in right of payment with all outstanding and future unsecured indebtedness that is by its terms equal in right of payment to the junior subordinated notes. SCHEDULE II PartnerRe Ltd. Condensed Statements of Operations and Comprehensive Income —Parent Company Only (Expressed in thousands of U.S. dollars) For the year ended December 31, 2021 December 31, 2020 December 31, 2019 Revenues Net investment income $ 2,496 $ 2,094 $ 1,620 Interest income on intercompany loans — — 12,215 Net realized and unrealized investment (losses) gains (16,730) 641 2,594 Other income 148 113 112 Total revenues (14,086) 2,848 16,541 Expenses Other expenses 55,996 53,458 51,115 Interest expense on intercompany loans 35,204 17,188 14,757 Net foreign exchange (gains) losses (79,696) 82,986 (26,885) Total expenses 11,504 153,632 38,987 Loss before equity in net income of subsidiaries (25,590) (150,784) (22,446) Equity in net income of subsidiaries 748,994 404,973 959,194 Net income 723,404 254,189 936,748 Preferred dividends 22,693 45,990 46,416 Loss on redemption of preferred shares 21,234 2,341 — Net income available to common shareholder $ 679,477 $ 205,858 $ 890,332 Comprehensive income Net income $ 723,404 $ 254,189 $ 936,748 Other comprehensive income (loss) 66,299 (20,080) 62,709 Comprehensive income $ 789,703 $ 234,109 $ 999,457 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, 2021 December 31, 2020 December 31, 2019 Cash flows from operating activities Net income $ 723,404 $ 254,189 $ 936,748 Adjustments to reconcile net income to net cash used in operating activities: Equity in net income of subsidiaries (748,994) (404,973) (959,194) Other, net (51,783) 87,789 (17,167) Net cash used in operating activities (77,373) (62,995) (39,613) Cash flows from investing activities Advances to/from subsidiaries, net (1) 100,426 73,738 (282,233) Net issue of intercompany loans receivable and payable (1) (2) — 458,489 276,332 Sales and redemptions of fixed maturities 481,015 32,230 72,724 Sales and redemptions of short-term investments — 43,899 2,189 Purchases of fixed maturities (62,239) (496,139) (18,621) Purchases of short-term investments — (39,913) (6,173) Other, net (8,465) (3,987) (29) Net cash provided by investing activities 510,737 68,317 44,189 Cash flows from financing activities (1) Issuance of preferred shares (3) 193,887 — — Redemption of preferred shares (3) (637,241) — — Net cash used in financing activities (443,354) — — Effect of foreign exchange rate changes on cash 1,958 186 (1,145) (Decrease) increase in cash and cash equivalents (8,032) 5,508 3,431 Cash and cash equivalents—beginning of year 10,020 4,512 1,081 Cash and cash equivalents—end of year $ 1,988 $ 10,020 $ 4,512 (1) The following non-cash transactions were excluded from the Condensed Statement of Cash Flows - Parent Company Only: a. 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. b. During 2021, 2020 and 2019, dividends paid to common and preferred shareholders of $129 million, $96 million and $246 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 in 2020 was also paid by a Bermuda subsidiary on behalf of the parent, with a corresponding increase to intercompany balances payable. c. During 2021, the parent recorded a non-cash dividend received from a subsidiary of $350 million, with a corresponding change to intercompany balances payable. 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. (2) 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 and used during 2021 to redeem the Series G, H and I preferred shares. (3) During 2021, the parent issued 8 million 4.875% Series J fixed rate non-cumulative redeemable preferred shares at a par value of $1.00 per share and a redemption price of $200 million, and incurred preferred share issuance costs of $6 million. The parent also redeemed all outstanding Series G, H and I preferred shares at $25 per share for an aggregate liquidation value of $637 million during 2021. |
SCHEDULE III - Supplementary In
SCHEDULE III - Supplementary Insurance Information | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract] | |
Supplementary Insurance Information | PartnerRe Ltd. Supplementary Insurance Information For the years ended December 31, 2021, 2020 and 2019 (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 2021 Non-life $ 617,537 $ 12,047,792 $ 2,498,426 $ — $ 5,329,556 $ N/A $ 3,443,245 $ 1,279,039 $ 100,635 $ 5,510,828 Life and Health 303,242 — 2,735 2,638,086 1,626,966 81,226 1,440,739 107,793 88,069 1,623,190 Corporate and Other — — — — — 295,243 — — 209,838 — Total $ 920,779 $ 12,047,792 $ 2,501,161 $ 2,638,086 $ 6,956,522 $ 376,469 $ 4,883,984 $ 1,386,832 $ 398,542 $ 7,134,018 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 (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, 2021 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |
Reinsurance | PartnerRe Ltd. Reinsurance For the years ended December 31, 2021, 2020 and 2019 (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 2021 Life reinsurance in force (1) $ — 19,383,794 453,373,378 $ 433,989,584 104 % Premiums earned Life $ — $ 24,519 $ 1,620,130 $ 1,595,611 102 % Accident and health — — 31,355 31,355 100 % P&C (2) 318,058 944,862 5,956,360 5,329,556 112 % Total premiums $ 318,058 $ 969,381 $ 7,607,845 $ 6,956,522 109 % 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 % (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, 2021 | |
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters [Abstract] | |
Supplemental Information Concerning Property-Casualty Insurance Operations | PartnerRe Ltd. Supplemental Information Concerning Property-Casualty Insurance Operations (1) For the years ended December 31, 2021, 2020 and 2019 (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 2021 $ 617,537 $ 12,047,792 $ 2,498,426 $ 5,329,556 $ 3,637,671 $ (194,426) $ 1,279,039 $ 2,972,995 $ 5,510,828 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 (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, 2021 | |
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. |
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. |
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, SOFR). 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 branches in Switzerland and the United Kingdom 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. 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 and C shares and restricted share units to certain executives and directors. The compensation cost for grants of Class B and C shares and restricted share units 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 and C shares can be sold back to the Company at the option of the shareholder. Class B and C shares and restricted share units are accounted for as liabilities and included in Accounts payable, accrued expenses and other on the Consolidated Balance Sheets. See Note 13 for further details. |
Recent Accounting Pronouncements | Adopted during 2021 In October 2020, the FASB issued updated guidance to clarify that callable debt securities should be reevaluated each reporting period to determine if the amortized cost exceeds the amount repayable by the issuer at the next earliest call date and, if so, the excess should be amortized to the next call date. This guidance is effective for fiscal years beginning after December 15, 2020, and the Company adopted this guidance effective January 1, 2021 on a prospective basis for existing or newly purchased callable debt securities. The adoption did not have a material impact on the Company's Consolidated Financial Statements. In March 2020, the U.S. Securities and Exchange Commission (the SEC) adopted amendments to the financial disclosure requirements related to certain debt securities, including registered debt securities issued by a wholly-owned, operating subsidiary that are fully and unconditionally guaranteed by the parent company. In October 2020, the FASB issued updated guidance to reflect the SEC's new disclosure requirements. This new guidance narrows the circumstances that require separate financial statements of subsidiary issuers and guarantors and streamlines the alternative disclosures required in lieu of those statements. The amended SEC rules became effective on January 4, 2021, and the Company adopted the new disclosure requirements at that time. As the guidance is disclosure-related only, it did not have a material impact on the Company's Consolidated Financial Statements. 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. These updates amend four key areas pertaining to the accounting and disclosures for long-duration insurance and investment contracts: • The update requires cash flow assumptions used to measure the liability for future policy benefits to be reviewed at least annually and updated, if necessary. Assumptions no longer allow a provision for adverse deviation. The remeasurement of the liability associated with the update of assumptions is required to be recognized in Net income or loss. Loss recognition testing is eliminated for traditional and limited-payment contracts. The update also requires the discount rate used in measuring the liability to be an upper-medium grade fixed-income instrument yield, which is to be updated at each reporting date. The change in liability due to changes in the discount rate is to be recognized in Other comprehensive income or loss. • The update requires certain contract features meeting the definition of market risk benefits to be measured at fair value. Among the features included in this definition are guaranteed minimum death benefit (GMDB) products. The change in fair value of the market risk benefits is to be recognized in Net income or loss, excluding the portion attributable to changes in instrument-specific credit risk which is recognized in Other comprehensive income or loss. • The update simplifies the amortization of Deferred acquisition costs and other balances, requiring such balances to be amortized on a constant level basis over the expected term of the contracts. Deferred costs are required to be written off for unexpected contract terminations but are not subject to recoverability testing. • The update also introduces disclosure requirements around the liability for future policy benefits, market risk benefits and deferred acquisition costs. This includes disaggregated rollforward of these balances and information about significant inputs, judgments, assumptions and methods used in their measurement. This guidance is effective on January 1, 2023 and will be adopted using the modified retrospective method for all topics except for market risk benefits, which must be applied using the full retrospective method. The Company has created a governance framework and is managing a detailed implementation plan to support the timely application of the new guidance. During 2021, we continued to progress our implementation plan, refining key accounting policy decisions, technology solutions and updates to internal controls. Given the nature and extent of the changes, this guidance may have a material impact on our Consolidated Financial Statements, including a reduction in Shareholders' Equity primarily due to the impact of updating interest rates, and will require significant new disclosures. |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Financial instruments measured at fair value and categorized between Levels 1, 2 and 3 | At December 31, 2021 and 2020, 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, 2021 Quoted prices in Significant Significant Total Fixed maturities U.S. government and government sponsored enterprises $ — $ 2,118,772 $ — $ 2,118,772 U.S. states, territories and municipalities — 12,878 95,181 108,059 Non-U.S. sovereign government, supranational and government related — 2,181,127 — 2,181,127 Corporate bonds — 5,441,908 — 5,441,908 Asset-backed securities — — 16,764 16,764 Residential mortgage-backed securities — 4,204,644 — 4,204,644 Fixed maturities $ — $ 13,959,329 $ 111,945 $ 14,071,274 Short-term investments $ — $ 205,146 $ — $ 205,146 Equities Real estate $ 97,854 $ — $ 2,097 $ 99,951 Consumer non-cyclical 343 — 10,081 10,424 Consumer cyclical 7,341 — 1,394 8,735 Diversified 4 — 7,468 7,472 Energy 1,112 — 2,368 3,480 Industrials 137 — 220 357 Finance — — 128 128 Insurance — 18 — 18 Mutual funds — — 1,621,019 1,621,019 Equities $ 106,791 $ 18 $ 1,644,775 $ 1,751,584 Other invested assets Derivative assets Foreign exchange forward contracts $ — $ 8,841 $ — $ 8,841 Total return swaps — — 153 153 Insurance-linked securities — — 5,663 5,663 Other — — 3,059 3,059 Other Corporate loans (1) — — 1,469,776 1,469,776 Notes and loans receivable and notes securitization — — 6,575 6,575 Private equities — — 1,280,731 1,280,731 Derivative liabilities Foreign exchange forward contracts — (6,657) — (6,657) Total return swaps — — (1,079) (1,079) Interest rate swaps — (10,489) — (10,489) Other invested assets $ — $ (8,305) $ 2,764,878 $ 2,756,573 Total $ 106,791 $ 14,156,188 $ 4,521,598 $ 18,784,577 (1) Corporate loans includes a portfolio of third-party, individually managed privately issued corporate loans that are managed under an externally managed mandate with a fair value of $1.0 billion and $0.9 billion at December 31, 2021 and 2020, respectively. The mandate primarily invests in U.S. floating rate, first lien, senior secured broadly syndicated loans with a focus on facility sizes greater than $300 million. Corporate loans also includes $0.5 billion and $0.4 billion of other privately issued corporate loans at December 31, 2021 and 2020 respectively . 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 |
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, 2021 and 2020, were as follows (in thousands of U.S. dollars): For the year ended December 31, 2021 Balance at Realized and Purchases Settlements and (1) Net Balance Change in Fixed maturities U.S. states, territories and municipalities $ 120,477 $ (7,330) $ — $ (17,966) $ — $ 95,181 $ (8,818) Asset-backed securities 17,528 — — (764) — 16,764 — Corporate bonds 16,530 165 — (16,695) — — — Fixed maturities $ 154,535 $ (7,165) $ — $ (35,425) $ — $ 111,945 $ (8,818) Equities Energy $ 34,448 $ 54,509 $ 6 $ (86,595) $ — $ 2,368 $ 1,326 Consumer non-cyclical 6,886 7,557 — — (4,362) 10,081 4,522 Insurance 4,000 — — (4,000) — — — Real estate 2,338 (241) — — — 2,097 (241) Consumer cyclical 475 (916) 1,835 — — 1,394 (916) Finance 138 (10) — — — 128 (10) Industrials 39 245 309 (334) (39) 220 99 Diversified 3,098 1,901 2,469 — — 7,468 1,901 Mutual funds 1,428,080 212,723 60,845 (80,629) — 1,621,019 195,927 Equities $ 1,479,502 $ 275,768 $ 65,464 $ (171,558) $ (4,401) $ 1,644,775 $ 202,608 Other invested assets Derivatives, net $ (862) $ 5,718 $ 3,059 $ (119) $ — $ 7,796 $ 4,018 Corporate loans 1,326,143 (10,668) 796,236 (641,935) — 1,469,776 (6,432) Notes and loan receivables and notes securitization 7,121 (71) 21 (496) — 6,575 (6,895) Private equities 756,731 291,160 587,956 (355,116) — 1,280,731 182,171 Other invested assets $ 2,089,133 $ 286,139 $ 1,387,272 $ (997,666) $ — $ 2,764,878 $ 172,862 Total $ 3,723,170 $ 554,742 $ 1,452,736 $ (1,204,649) $ (4,401) $ 4,521,598 $ 366,652 (1) Includes sales of Fixed maturities, Equities and Other invested assets of $17 million, $172 million and $738 million, respectively. Sales of Fixed maturities were comprised of U.S. states, territories and municipalities. Sales of Other invested assets included sales of corporate loans of $404 million and private equities of $334 million. During the year ended December 31, 2021, two equity securities valued at $4 million were transferred from Level 3 to Level 1 due to the availability of quoted prices in active markets. For the year ended December 31, 2020 Balance at Realized and Purchases Settlements and sales (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 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 non-cyclical — (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. |
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, 2021 and 2020 were as follows (fair value in thousands of U.S. dollars): December 31, 2021 Fair value Valuation techniques Unobservable inputs Range (Weighted average (1) ) Fixed maturities U.S. states, territories and municipalities $ 95,181 Discounted cash flow Credit spreads 2.5% – 254.5% (14.3%) Other invested assets Total return swaps, net (926) Discounted cash flow Credit spreads 2.4% – 41.3% (36.5%) Insurance-linked securities – longevity swaps 5,663 Discounted cash flow Credit spreads 1.7% (1.7%) Notes and loans receivables 1,791 Discounted cash flow Credit spreads 17.5% (17.5%) Gross revenue/fair value 1.1 (1.1) Note securitization 403 Discounted cash flow Credit spreads 2.5% (2.5%) Private equity - other 8,832 Discounted cash flow Effective yield 3.5% (3.5%) Private equity - funds 38,185 Reported market value Net asset value, as reported 100.0% (100.0%) Market adjustments (2.5)% ((2.5)%) 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 spreads 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%) (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, 2021, 2020 and 2019 were as follows (in thousands of U.S. dollars): 2021 2020 2019 Fixed maturities and short-term investments $ (558,466) $ 219,946 $ 190,343 Equities 198,780 167,456 403,011 Other invested assets 184,209 63,669 50,857 Total $ (175,477) $ 451,071 $ 644,211 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021, 2020 and 2019 were as follows (in thousands of U.S. dollars): 2021 2020 2019 Net realized investment gains on fixed maturities and short-term investments $ 19,893 $ 24,828 $ 243,508 Net realized investment gains on equities 78,501 21,538 6,545 Net realized investment gains (losses) on other invested assets 103,011 (30,436) 830 Net realized investment gains $ 201,405 $ 15,930 $ 250,883 Change in net unrealized investment (losses) gains on fixed maturities and short-term investments $ (558,466) $ 219,946 $ 190,343 Change in net unrealized investment gains on equities 198,780 167,456 403,011 Change in net unrealized investment gains on other invested assets 196,926 58,452 44,441 Net other realized and unrealized investment (losses) gains (848) (1,346) 969 Change in net unrealized investment (losses) gains $ (163,608) $ 444,508 $ 638,764 Impairment loss on investments in real estate $ — $ (6,119) $ (2,977) Net realized and unrealized investment gains $ 37,797 $ 454,319 $ 886,670 |
Net investment income | The components of net investment income for the years ended December 31, 2021, 2020 and 2019 were as follows (in thousands of U.S. dollars): 2021 2020 2019 Fixed maturities $ 301,391 $ 290,259 $ 379,939 Short-term investments and cash and cash equivalents 4,860 12,000 26,981 Other invested assets 90,442 89,129 68,879 Equities 12,686 3,918 (6,067) Funds held and other (1) 17,871 16,559 18,288 Investment expenses (50,781) (51,197) (39,482) Net investment income $ 376,469 $ 360,668 $ 448,538 (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 7.3%, 0.1% to 6.5% and 0.1% to 5.1% for the years ended December 31, 2021, 2020 and 2019, respectively. |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 and 2020 were as follows (in thousands of U.S. dollars): Asset Liability Net derivatives December 31, 2021 Fair value Net notional Derivatives not designated as hedges Foreign exchange forward contracts $ 8,841 $ (6,657) $ 2,184 $ 3,092,396 Insurance-linked securities (1) 5,663 — 5,663 15,200 Total return swaps 153 (1,079) (926) 31,519 Interest rate swaps (2) — (10,489) (10,489) — Other 3,059 — 3,059 — Total derivatives not designated as hedges $ 17,716 $ (18,225) $ (509) 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) (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, 2021, 2020 and 2019 were as follows (in thousands of U.S. dollars): 2021 2020 2019 Foreign exchange forward contracts $ (16,788) $ (32,611) $ (41,171) Total included in Net foreign exchange losses $ (16,788) $ (32,611) $ (41,171) Futures contracts $ — $ — $ (9,952) Insurance-linked securities 4,807 (2,341) (4,381) Total return swaps 1,430 (845) — Interest rate swaps 7,020 (5,131) (5,230) TBAs (56) (510) — Other (298) 1,376 463 Total included in Net realized and unrealized investment gains $ 12,903 $ (7,451) $ (19,100) Total derivatives not designated as hedges $ (3,885) $ (40,062) $ (60,271) |
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, 2021 and 2020 were as follows (in thousands of U.S. dollars): Gross Net amounts of Gross amounts not offset December 31, 2021 Gross amounts recognized (1) Financial Cash collateral Net amount Total derivative assets $ 17,716 $ — $ 17,716 $ — $ (34,764) $ (17,048) Total derivative liabilities $ (18,225) $ — $ (18,225) $ — $ 1,671 $ (16,554) December 31, 2020 Total derivative assets $ 11,599 $ — $ 11,599 $ — $ (26,853) $ (15,254) Total derivative liabilities $ (33,359) $ — $ (33,359) $ — $ 11,503 $ (21,856) (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, 2021 | |
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, 2021, 2020 and 2019 were as follows (in thousands of U.S. dollars): Goodwill Definite- Indefinite- Total 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 Foreign currency translation — 10 — 10 Intangible assets amortization n/a (8,861) n/a (8,861) Balance at December 31, 2021 $ 456,380 $ 89,263 $ 9,555 $ 98,818 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, 2021 and 2020 were as follows (in thousands of U.S. dollars): December 31, 2021 December 31, 2020 Gross carrying Accumulated Net carrying value Gross carrying Accumulated Net carrying value Definite-lived intangible assets: Renewal rights $ 48,163 $ (40,786) $ 7,377 $ 48,163 $ (38,205) $ 9,958 Customer relationships 67,748 (52,661) 15,087 67,738 (47,867) 19,871 Life VOBA 75,583 (8,784) 66,799 75,583 (7,298) 68,285 Total definite-lived intangible assets $ 191,494 $ (102,231) $ 89,263 $ 191,484 $ (93,370) $ 98,114 Indefinite-lived intangible assets: Insurance licenses 9,555 n/a 9,555 9,555 n/a 9,555 Total intangible assets $ 201,049 $ (102,231) $ 98,818 $ 201,039 $ (93,370) $ 107,669 n/a: Not applicable |
Allocation of goodwill by segment | The allocation of the goodwill to the Company’s segments at December 31, 2021 and 2020 was as follows (in thousands of U.S. dollars): 2021 2020 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- 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 2026 1,892 402 2,294 Thereafter 55,791 671 56,462 Total $ 66,799 $ 22,464 $ 89,263 |
Non-life and Life and Health _2
Non-life and Life and Health Reserves (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 at December 31, 2021 and 2020 was as follows (in thousands of U.S. dollars): December 31, 2021 December 31, 2020 Case reserves $ 4,881,892 $ 4,646,633 ACRs 140,464 171,381 IBNR reserves 7,025,436 6,577,307 Non-life reserves $ 12,047,792 $ 11,395,321 |
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, 2021, 2020 and 2019 was as follows (in thousands of U.S. dollars): 2021 2020 2019 Gross liability at beginning of year $ 11,395,321 $ 10,363,383 $ 9,895,376 Reinsurance recoverable at beginning of year 782,330 754,795 850,946 Net liability at beginning of year 10,612,991 9,608,588 9,044,430 Net incurred losses related to: (1) Current year 3,637,671 3,945,248 3,716,988 Prior years (194,426) 71,456 (56,848) 3,443,245 4,016,704 3,660,140 Net paid losses related to: Current year (437,938) (459,718) (439,285) Prior years (2,535,057) (2,772,886) (2,651,385) (2,972,995) (3,232,604) (3,090,670) Retroactive reinsurance recoverable (357,864) — (81,013) Effects of foreign exchange rate changes and other (210,251) 220,303 75,701 Net liability at end of year $ 10,515,126 $ 10,612,991 $ 9,608,588 Reinsurance recoverable at end of year 1,532,666 782,330 754,795 Gross liability at end of year $ 12,047,792 $ 11,395,321 $ 10,363,383 (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 at December 31, 2019. There were no incurred losses or non-life reserves allocated to Corporate and Other during 2021 or 2020. |
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, 2021, 2020 and 2019 was as follows (in thousands of U.S. dollars): 2021 2020 2019 Gross liability at beginning of period $ 2,704,229 $ 2,417,044 $ 2,198,080 Reinsurance recoverable at beginning of period 35,662 16,183 11,829 Net liability at beginning of period $ 2,668,567 $ 2,400,861 $ 2,186,251 Net incurred losses (1) 1,440,739 1,318,196 1,263,016 Net losses paid (1,413,316) (1,230,383) (1,071,487) Effects of foreign exchange rate changes and other (78,904) 179,893 23,081 Net liability at end of period $ 2,617,086 $ 2,668,567 $ 2,400,861 Reinsurance recoverable at end of period 21,000 35,662 16,183 Gross liability at end of period $ 2,638,086 $ 2,704,229 $ 2,417,044 (1) During 2021 and 2020, certain life and health treaties were recaptured, resulting in total gains upon recapture of $15 million and $28 million respectively, 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, 2021, 2020 and 2019 were comprised as follows (in thousands of U.S. dollars): 2021 2020 2019 Non-life (1) $ 3,443,245 $ 4,016,704 $ 3,660,140 Life and Health 1,440,739 1,318,196 1,263,016 Losses and loss expenses $ 4,883,984 $ 5,334,900 $ 4,923,156 |
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 2020 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, 2021 Accident year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Total of IBNR plus expected development on reported claims 2012 $ 2,342,553 $ 2,627,452 $ 2,371,984 $ 2,248,510 $ 2,495,148 $ 2,394,396 $ 2,243,436 $ 2,209,950 $ 2,197,815 $ 2,181,218 $ 10,086 2013 2,506,489 2,700,371 2,487,494 2,183,344 2,302,089 2,393,344 2,387,407 2,361,827 2,345,255 46,041 2014 2,416,677 2,596,191 2,478,039 2,467,234 2,477,572 2,434,886 2,400,662 2,385,988 65,254 2015 2,355,703 2,557,213 2,494,735 2,522,169 2,495,354 2,449,975 2,429,432 83,536 2016 2,398,444 2,597,779 2,570,484 2,544,389 2,522,270 2,537,312 167,323 2017 2,499,161 2,871,000 2,811,676 2,772,119 2,788,118 235,938 2018 2,548,563 3,093,669 3,120,388 3,130,397 333,906 2019 2,848,949 3,637,558 3,707,336 773,002 2020 4,051,824 3,867,443 1,728,949 2021 2,838,039 2,520,673 Total $ 28,210,538 $ 5,964,708 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 2021 2012 $ 294,313 $ 973,857 $ 1,338,878 $ 1,497,677 $ 1,593,864 $ 1,705,320 $ 1,754,704 $ 1,805,081 $ 1,825,434 $ 1,840,284 2013 287,566 1,275,211 1,623,541 1,825,345 1,961,269 2,055,408 2,123,294 2,161,355 2,188,318 2014 338,712 1,286,854 1,596,445 1,817,505 1,957,235 2,060,333 2,140,845 2,189,661 2015 335,368 1,191,883 1,603,381 1,842,842 2,004,838 2,114,625 2,191,493 2016 338,124 1,312,013 1,687,477 1,972,139 2,112,088 2,206,804 2017 406,218 1,447,213 1,853,527 2,148,343 2,276,982 2018 278,953 1,350,321 1,933,461 2,253,397 2019 445,090 1,574,942 2,154,188 2020 455,948 1,446,282 2021 412,023 Total $ 19,159,432 Net reserves for accident years and exposures included in the triangles $ 9,051,106 All outstanding liabilities before accident year 2012, net of reinsurance 1,102,911 Total outstanding liabilities for unpaid claims $ 10,154,017 AVERAGE ANNUAL PERCENTAGE PAYOUT OF INCURRED CLAIMS BY AGE, NET OF REINSURANCE - NON-LIFE Years 1 2 3 4 5 6 7 8 9 10 Non-life 13% 34% 16% 10% 5% 4% 3% 2% 1% 1% NET INCURRED LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - PROPERTY For the year ended December 31, December 31, 2021 Accident year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Total of IBNR plus expected development on reported claims 2012 $ 691,488 $ 658,283 $ 551,817 $ 533,256 $ 517,687 $ 518,564 $ 513,621 $ 502,869 $ 502,369 $ 494,145 $ 1,959 2013 639,026 586,694 546,588 531,833 525,745 517,468 515,376 514,873 512,546 842 2014 465,513 489,871 465,774 461,842 456,086 454,046 451,662 451,833 552 2015 550,216 581,923 557,092 548,666 545,180 541,160 546,732 3,810 2016 684,976 706,630 671,835 651,823 648,266 650,208 13,249 2017 973,654 1,039,936 973,452 945,066 937,829 20,219 2018 826,216 861,674 844,596 820,472 28,467 2019 741,448 849,547 831,461 47,475 2020 1,212,387 1,163,924 272,042 2021 809,517 572,794 Total $ 7,218,667 $ 961,409 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 2021 2012 $ 99,084 $ 345,731 $ 438,322 $ 472,761 $ 484,780 $ 494,267 $ 498,829 $ 505,649 $ 505,895 $ 508,477 2013 90,889 331,515 436,234 471,381 489,287 492,774 497,604 499,794 499,576 2014 97,352 319,121 393,013 421,164 431,055 436,472 441,065 443,167 2015 101,501 346,869 450,016 483,907 496,634 503,895 513,203 2016 148,109 469,162 567,654 609,863 626,616 637,028 2017 224,987 714,541 829,490 880,073 889,729 2018 80,881 530,024 669,153 710,866 2019 80,621 458,182 589,100 2020 111,470 537,865 2021 110,592 Total $ 5,439,603 Net reserves for accident years and exposures included in the triangles $ 1,779,064 All outstanding liabilities before accident year 2012, net of reinsurance 146,308 Total outstanding liabilities for unpaid claims $ 1,925,372 AVERAGE ANNUAL PERCENTAGE PAYOUT OF INCURRED CLAIMS BY AGE, NET OF REINSURANCE - PROPERTY Years 1 2 3 4 5 6 7 8 9 10 Property 16% 47% 16% 6% 2% 1% 1% 1% —% 1% NET INCURRED LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - CASUALTY For the year ended December 31, December 31, 2021 Accident year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Total of IBNR plus expected development on reported claims 2012 $ 706,442 $ 856,769 $ 769,092 $ 710,862 $ 698,668 $ 702,358 $ 696,110 $ 682,054 $ 677,161 $ 670,767 $ — 2013 748,691 880,676 784,615 763,208 761,477 757,032 747,422 728,645 724,170 39,469 2014 794,186 879,144 850,550 851,144 869,438 832,104 807,750 793,629 46,003 2015 684,702 808,679 788,933 830,644 794,732 775,384 752,036 64,297 2016 646,045 769,492 785,448 766,754 755,605 769,283 118,811 2017 594,988 748,588 738,743 729,083 736,701 154,030 2018 750,120 951,393 955,784 965,966 203,571 2019 949,925 1,245,536 1,301,249 458,841 2020 1,301,042 1,230,847 896,066 2021 926,608 1,304,107 Total $ 8,871,256 $ 3,285,195 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 2021 2012 $ 58,130 $ 136,891 $ 205,359 $ 280,428 $ 333,456 $ 385,934 $ 416,086 $ 440,686 $ 455,860 $ 469,540 2013 56,952 159,112 263,808 345,291 419,488 481,381 524,709 550,444 576,650 2014 74,189 196,301 300,377 398,606 486,503 556,159 619,160 657,810 2015 78,386 185,508 299,396 393,997 497,220 570,219 620,841 2016 29,216 144,840 252,780 383,788 471,880 539,688 2017 60,390 165,196 259,310 354,594 435,692 2018 60,039 206,791 335,624 446,609 2019 97,723 270,727 423,814 2020 99,909 269,206 2021 74,019 Total $ 4,513,869 Net reserves for accident years and exposures included in the triangles $ 4,357,387 All outstanding liabilities before accident year 2012, net of reinsurance 908,806 Total outstanding liabilities for unpaid claims $ 5,266,193 AVERAGE ANNUAL PERCENTAGE PAYOUT OF INCURRED CLAIMS BY AGE, NET OF REINSURANCE - CASUALTY Years 1 2 3 4 5 6 7 8 9 10 Casualty 8% 14% 13% 13% 11% 9% 6% 4% 3% 2% NET INCURRED LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - SPECIALTY For the year ended December 31, December 31, 2021 Accident year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Total of IBNR plus expected development on reported claims 2012 $ 944,623 $ 1,112,400 $ 1,051,075 $ 1,004,392 $ 1,278,793 $ 1,173,474 $ 1,033,705 $ 1,025,027 $ 1,018,285 $ 1,016,306 $ 8,127 2013 1,118,772 1,233,001 1,156,291 888,303 1,014,867 1,118,844 1,124,609 1,118,309 1,108,539 5,730 2014 1,156,978 1,227,176 1,161,715 1,154,248 1,152,048 1,148,736 1,141,250 1,140,526 18,699 2015 1,120,785 1,166,611 1,148,710 1,142,859 1,155,442 1,133,431 1,130,664 15,429 2016 1,067,423 1,121,657 1,113,201 1,125,812 1,118,399 1,117,821 35,263 2017 930,519 1,082,476 1,099,481 1,097,970 1,113,588 61,689 2018 972,227 1,280,602 1,320,008 1,343,959 101,868 2019 1,157,576 1,542,475 1,574,626 266,686 2020 1,538,395 1,472,672 560,841 2021 1,101,914 643,772 Total $ 12,120,615 $ 1,718,104 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 2021 2012 $ 137,099 $ 491,235 $ 695,197 $ 744,488 $ 775,628 $ 825,119 $ 839,789 $ 858,746 $ 863,679 $ 862,267 2013 139,725 784,584 923,499 1,008,673 1,052,494 1,081,253 1,100,981 1,111,117 1,112,092 2014 167,171 771,432 903,055 997,735 1,039,677 1,067,702 1,080,620 1,088,684 2015 155,481 659,506 853,969 964,938 1,010,984 1,040,511 1,057,449 2016 160,799 698,011 867,043 978,488 1,013,592 1,030,088 2017 120,841 567,476 764,727 913,676 951,561 2018 138,033 613,506 928,684 1,095,922 2019 266,746 846,033 1,141,274 2020 244,569 639,211 2021 227,412 Total $ 9,205,960 Net reserves for accident years and exposures included in the triangles $ 2,914,655 All outstanding liabilities before accident year 2012, net of reinsurance 47,797 Total outstanding liabilities for unpaid claims $ 2,962,452 AVERAGE ANNUAL PERCENTAGE PAYOUT OF INCURRED CLAIMS BY AGE, NET OF REINSURANCE - SPECIALTY Years 1 2 3 4 5 6 7 8 9 10 Specialty 15% 41% 17% 10% 4% 3% 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, 2021 was as follows (in thousands of U.S. dollars): December 31, 2021 Total outstanding liability for unpaid claims Property $ 1,925,372 Casualty 5,266,193 Specialty 2,962,452 Total outstanding liabilities for unpaid claims $ 10,154,017 Unallocated loss expenses $ 187,139 U.S. health net reserves (1) 170,617 Other 3,353 Total other liabilities $ 361,109 Net liability at end of year $ 10,515,126 Reinsurance recoverable on unpaid claims Property $ 708,008 Casualty 519,597 Specialty 305,061 Reinsurance recoverable at end of year $ 1,532,666 Gross liability at end of year $ 12,047,792 (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, 2021 | |
Reinsurance Disclosures [Abstract] | |
Ceded reinsurance | Assumed, ceded and net amounts for the years ended December 31, 2021, 2020 and 2019 were as follows (in thousands of U.S. dollars): Premiums Premiums Losses and Loss 2021 Non-life $ 6,557,055 $ 6,274,418 $ 4,212,465 Life and Health 1,646,870 1,651,485 1,454,065 Assumed $ 8,203,925 $ 7,925,903 $ 5,666,530 Non-life $ 1,046,227 $ 944,862 $ 769,220 Life and Health 23,680 24,519 13,326 Ceded $ 1,069,907 $ 969,381 $ 782,546 Non-life $ 5,510,828 $ 5,329,556 $ 3,443,245 Life and Health 1,623,190 1,626,966 1,440,739 Net $ 7,134,018 $ 6,956,522 $ 4,883,984 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 (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, 2021 | |
Debt Disclosure [Abstract] | |
Summary of debt outstanding | The debt outstanding and the carrying value recorded in the Consolidated Balance Sheets at December 31, 2021 and 2020 was comprised as follows (in thousands): December 31, 2021 December 31, 2020 Commitment Carrying Value Fair Value Carrying Value Fair Value Senior notes due 2029 $ 500,000 $ 496,620 $ 561,099 $ 496,168 $ 586,057 Senior notes due 2026 € 750,000 843,950 882,126 914,223 985,352 Junior subordinated notes due 2050 $ 500,000 494,445 526,522 494,251 523,685 Capital efficient notes due 2066 $ 62,484 62,484 55,248 70,089 61,013 Debt $ 1,897,499 $ 2,024,995 $ 1,974,731 $ 2,156,107 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stock by Class [Table Text Block] | At December 31, 2021, 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 J Date of issuance March 2021 Number of preferred shares outstanding 8,000,000 Annual dividend rate 4.875 % Underwriting discounts and commissions $ 6.1 Aggregate liquidation value, at $25 per share $ 200.0 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 6.500 % 7.250 % 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 series G, H and I shares as a result of the share exchange in May 2016 for $nil consideration. |
Dividend Restrictions and Sta_2
Dividend Restrictions and Statutory Requirements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021, 2020 and 2019 was as follows (in millions of U.S. dollars): 2021 2020 2019 PartnerRe Bermuda $ 900 $ (52) $ 863 PartnerRe Europe $ 28 $ 237 $ 188 PartnerRe U.S. $ 68 $ 28 $ (106) PartnerRe Asia $ (22) $ (2) $ 17 The required and actual statutory capital and surplus of PartnerRe Bermuda, PartnerRe Europe, PartnerRe U.S. and PartnerRe Asia at December 31, 2021 and 2020 was as follows (in millions of U.S. dollars): PartnerRe Bermuda (1) PartnerRe Europe PartnerRe U.S. PartnerRe Asia 2021 2020 2021 2020 2021 2020 2021 2020 Required statutory capital and surplus $ 2,751 $ 2,359 $ 1,873 $ 1,618 $ 1,244 $ 1,080 $ 50 $ 48 Actual statutory capital and surplus $ 6,022 $ 5,070 $ 2,744 $ 2,417 $ 1,369 $ 1,169 $ 233 $ 253 (1) Required statutory capital and surplus is calculated at the Target Capital Level |
Taxation (Tables)
Taxation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Components of income tax expense | Income tax expense (benefit) for the years ended December 31, 2021, 2020 and 2019 was as follows (in thousands of U.S. dollars): 2021 2020 2019 Current income tax expense (benefit) U.S. $ 31,216 $ (97,155) $ 12,899 Non U.S. 18,293 44,764 64,069 Total current income tax expense (benefit) $ 49,509 $ (52,391) $ 76,968 Deferred income tax (benefit) expense U.S. $ (9,404) $ 60,932 $ (25,850) Non U.S. (1,687) (25,560) 4,268 Total deferred income tax (benefit) expense $ (11,091) $ 35,372 $ (21,582) Unrecognized tax (benefit) expense U.S. $ — $ — $ — Non U.S. (199) 3,928 (2,850) Total unrecognized tax (benefit) expense $ (199) $ 3,928 $ (2,850) Total income tax expense (benefit) U.S. $ 21,812 $ (36,223) $ (12,951) Non U.S. 16,407 23,132 65,487 Total income tax expense (benefit) $ 38,219 $ (13,091) $ 52,536 |
Income before taxes attributable to domestic and foreign operations | Income 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 before taxes was as follows for the years ended December 31, 2021, 2020 and 2019 (in thousands of U.S. dollars): 2021 2020 2019 Domestic (Bermuda) $ 636,043 $ 3,894 $ 715,912 Foreign 125,580 237,204 273,372 Income before taxes $ 761,623 $ 241,098 $ 989,284 |
Reconciliation of effective tax rate | Reconciliation of effective tax rate (% of income before taxes) Expected tax rate 0.0 % 0.0 % 0.0 % Foreign taxes at local expected tax rates 5.7 15.5 6.5 Impact of foreign exchange gains or losses (0.1) (8.1) (0.5) Unrecognized tax expense (benefit) — 1.6 0.2 Tax-exempt income and expenses not deductible (0.4) (1.4) (0.6) Foreign branch tax 0.1 (3.3) (1.2) Valuation allowance 0.6 3.4 0.7 Other (0.9) (13.1) 0.2 Actual tax rate 5.0 % (5.4) % 5.3 % |
Components of net tax assets and liabilities | The components of net tax assets and liabilities at December 31, 2021 and 2020 were as follows (in thousands of U.S. dollars): December 31, 2021 December 31, 2020 Net tax assets $ 154,472 $ 182,077 Net tax liabilities (90,974) (131,621) Net tax assets $ 63,498 $ 50,456 December 31, 2021 December 31, 2020 Net current tax assets $ 117,872 $ 112,992 Net deferred tax liabilities (45,098) (52,263) Net unrecognized tax benefit (9,276) (10,273) Net tax assets $ 63,498 $ 50,456 |
Significant components of net deferred tax assets and liabilities | Significant components of the net deferred tax assets and liabilities at December 31, 2021 and 2020 were as follows (in thousands of U.S. dollars): December 31, 2021 December 31, 2020 Deferred tax assets Discounting of loss reserves and adjustment to life policy reserves $ 18,340 $ 11,741 Foreign tax credit carryforwards 180,510 198,263 Tax loss carryforwards 106,555 57,485 Unearned premiums 36,421 34,760 Statutory basis funds held 58,899 — Unrealized appreciation and timing differences on foreign exchange revaluations 3,838 20,493 Other deferred tax assets 47,034 42,754 $ 451,597 $ 365,496 Valuation allowance (211,798) (211,167) Deferred tax assets $ 239,799 $ 154,329 Deferred tax liabilities Deferred acquisition costs $ 75,924 $ 67,850 Goodwill and other intangibles 56,870 58,224 Statutory basis reserves 114,240 — Equalization reserves 7,192 7,366 Unrealized appreciation and timing differences on investments 4,877 46,389 Other deferred tax liabilities 25,794 26,763 Deferred tax liabilities $ 284,897 $ 206,592 Net deferred tax liabilities $ (45,098) $ (52,263) |
Total amount of unrecognized tax benefits | The total amount of unrecognized tax benefits for the years ended December 31, 2021, 2020 and 2019 was as follows (in thousands of U.S. dollars): 2021 2020 2019 Balance at January 1 $ 10,273 $ 5,689 $ 8,743 Changes in tax positions taken during a prior year (199) 3,870 (4,229) Tax positions taken during the current year — — 1,379 Impact of the change in foreign currency exchange rates (798) 714 (204) Balance at December 31 $ 9,276 $ 10,273 $ 5,689 |
Share-Based Incentives (Tables)
Share-Based Incentives (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Activity summary of share-based incentives | The following table provides an activity summary of the Company's Class B shares, Class C shares, and RSUs outstanding: RSUs (1) Outstanding December 31, 2020 — Granted 263,214 Outstanding December 31, 2021 263,214 (1) For RSUs, the number of grants in the table are shown at the maximum number that can be attained if the performance conditions are fully met for personal and Company performance. Restricted Class C shares Unrestricted Class C shares Total Class C shares Outstanding December 31, 2020 — — — Granted 7,373 — 7,373 Purchased — 2,072 2,072 Outstanding December 31, 2021 7,373 2,072 9,445 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 Repurchased (29,048) (22,957) (52,005) Expiration of restricted period (20,298) 20,298 — Outstanding December 31, 2021 139,820 82,839 222,659 |
Retirement Benefit Arrangemen_2
Retirement Benefit Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Funded status | At December 31, 2021 and 2020, the funded status of the Zurich Plan was as follows (in thousands of U.S. dollars): 2021 2020 Underfunded pension obligation at beginning of year $ 62,050 $ 44,442 Change in pension obligation Service cost $ 11,811 $ 10,961 Interest cost 228 520 Plan participants’ contributions 4,048 4,056 Actuarial (gain) loss (24,211) 12,023 Benefits paid (1,651) (3,910) Foreign currency adjustments (8,735) 20,550 Settlements (20,682) — Change in pension obligation $ (39,192) $ 44,200 Change in fair value of plan assets Actual return on plan assets $ 6,847 $ 2,820 Employer contributions 8,035 7,941 Plan participants’ contributions 4,048 4,056 Benefits paid (1,651) (3,910) Foreign currency adjustments (6,375) 15,685 Settlements (20,682) — Change in fair value of plan assets $ (9,778) $ 26,592 Underfunded pension obligation at end of year $ 32,636 $ 62,050 Additional information: Projected benefit obligation at end of year (1) $ 202,920 $ 242,112 Fair value of plan assets at end of year $ 170,284 $ 180,062 Underfunded pension obligation at end of year $ 32,636 $ 62,050 Accumulated pension obligation at end of year (2) $ 194,730 $ 231,419 (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, 2021, 2020 and 2019 were as follows: 2021 2020 2019 Pension Net periodic Pension Net periodic Pension Net periodic Discount rate 0.20 % 0.10 % 0.10 % 0.25 % 0.25 % 1.00 % 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 % — 3.50 % Rate of compensation increase 2.00 % 2.00 % 2.00 % 2.00 % 2.00 % 2.00 % |
Expected future benefit payments | At December 31, 2021, estimated employer contributions to be paid in 2022 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 2022 $ 8,578 2023 $ 9,219 2024 $ 8,838 2025 $ 9,824 2026 $ 11,457 2027 to 2031 $ 49,075 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 and 2020 (in thousands of U.S. dollars): 2021 2020 Operating lease costs $ 14,928 $ 16,403 Variable lease costs 904 724 Sublease income (368) (1,194) Total lease costs $ 15,464 $ 15,933 Other information: Operating lease right-of-use assets (1) $ 75,010 $ 64,746 Operating lease liabilities (2) $ 85,462 $ 75,463 Operating lease right-of-use assets obtained in exchange for lease obligations, non-cash $ 26,553 $ 852 Operating cash outflows from operating leases $ 16,874 $ 16,495 Weighted-average remaining lease term on operating leases (3) 8.9 Yrs 9.1 Yrs Weighted-average discount rate on operating leases (4) 2.4 % 2.7 % (1) Included in Other assets (2) Included in Accounts payable, accrued expenses and other (3) 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 (4) 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, 2021 (in thousands of U.S. dollars): Year Expected cash flows 2022 $ 13,453 2023 12,834 2024 14,452 2025 11,586 2026 10,751 2027 to 2038 34,104 Discount (11,718) Total discounted operating lease liabilities $ 85,462 The Company has additional lease commitments of $4 million related to leases that will not commence until 2022, with contractual lease terms of up to 8 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, 2021. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment reporting table | The segment results for the years ended December 31, 2021, 2020 and 2019 are presented below (in millions of U.S. dollars, except ratios). Segment Information For the year ended December 31, 2021 P&C Specialty Total Life Corporate Total Gross premiums written $ 4,541 $ 2,016 $ 6,557 $ 1,647 $ — $ 8,204 Net premiums written $ 3,722 $ 1,789 $ 5,511 $ 1,623 $ — $ 7,134 (Increase) decrease in unearned premiums (194) 13 (181) 4 — (177) Net premiums earned $ 3,528 $ 1,802 $ 5,330 $ 1,627 $ — $ 6,957 Losses and loss expenses (2,391) (1,052) (3,443) (1,441) — (4,884) Acquisition costs (864) (415) (1,279) (108) — (1,387) Technical result $ 273 $ 335 $ 608 $ 78 $ — $ 686 Other income — — — 26 3 29 Other expenses (71) (30) (101) (88) (210) (399) Underwriting result $ 202 $ 305 $ 507 $ 16 n/a $ 316 Net investment income 81 295 376 Allocated underwriting result $ 97 n/a n/a Net realized and unrealized investment gains 38 38 Interest expense (56) (56) Amortization of intangible assets (9) (9) Net foreign exchange losses (31) (31) Income tax expense (38) (38) Interest in earnings of equity method investments 127 127 Net income n/a $ 723 Loss ratio (1) 67.8 % 58.4 % 64.6 % Acquisition ratio (2) 24.5 23.0 24.0 Technical ratio (3) 92.3 % 81.4 % 88.6 % Other expense ratio (4) 2.0 1.7 1.9 Combined ratio (5) 94.3 % 83.1 % 90.5 % (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, 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 75.5 % 86.0 % 79.5 % Acquisition ratio 24.8 24.8 24.8 Technical ratio 100.3 % 110.8 % 104.3 % Other expense ratio 1.9 1.4 1.7 Combined ratio 102.2 % 112.2 % 106.0 % 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 geographic distribution of premiums table | The following table provides the geographic distribution of gross premiums written by region for the years ended December 31, 2021, 2020 and 2019 (in millions of U.S. dollars, except percentages): 2021 2020 2019 North America $ 4,649 57 % $ 3,794 55 % $ 3,752 51 % Europe 2,410 29 1,921 28 2,155 30 Asia, Australia and New Zealand 814 10 806 12 835 11 Latin America and the Caribbean 189 2 220 3 264 4 Middle East, Africa, Russia and the Commonwealth of Independent States (CIS) 142 2 135 2 279 4 Total $ 8,204 100 % $ 6,876 100 % $ 7,285 100 % |
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, 2021, 2020 and 2019 (in millions of U.S. dollars, except percentages): 2021 2020 2019 P&C Casualty $ 2,145 $ 1,430 $ 1,394 Catastrophe 924 545 537 Property 809 641 644 U.S. health 351 379 391 Multiline and other 183 289 213 Motor 129 158 400 Total P&C $ 4,541 $ 3,442 $ 3,579 Specialty Financial risks $ 510 $ 568 $ 587 Aviation and space 416 219 286 Energy 314 192 183 Property 277 173 151 Agriculture 205 468 483 Marine 174 142 132 Engineering 100 17 102 Multiline and other 20 152 276 Casualty — 4 13 Total Specialty $ 2,016 $ 1,935 $ 2,213 Life and Health $ 1,647 $ 1,499 $ 1,493 Total $ 8,204 $ 6,876 $ 7,285 |
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, 2021, 2020 and 2019, as follows: 2021 2020 2019 Marsh (including Guy Carpenter) 28 % 30 % 28 % Aon Group (including the Benfield Group) 24 % 21 % 22 % The following table summarizes the percentage of gross premiums written through these two brokers by segment for the years ended December 31, 2021, 2020 and 2019: 2021 2020 2019 P&C 63 % 64 % 60 % Specialty 66 % 64 % 62 % Life and Health 6 % 6 % 8 % |
Organization (Details)
Organization (Details) - shares | Dec. 31, 2021 | Dec. 31, 2020 |
Class of Stock [Line Items] | ||
Common shares, shares issued | 100,000,000 | 100,000,000 |
Class A shares | ||
Class of Stock [Line Items] | ||
Common shares, shares issued | 100,000,000 | 100,000,000 |
Significant Accounting Polici_3
Significant Accounting Policies - Narrative (Details) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2021USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2021USD ($)Segment | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
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 | $ (7,543,986) | $ (7,543,986) | $ (7,543,986) | $ (7,326,997) | $ (7,270,169) | |
Retained earnings | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cumulative effect adjustment at beginning of period | $ (5,635,758) | $ (5,635,758) | $ (5,635,758) | (5,062,948) | (4,921,395) | $ (4,230,449) |
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 | $ 0 | $ 14,305 | $ 0 |
Fair Value - Hierarchy table (D
Fair Value - Hierarchy table (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, at fair value | $ 14,071,274 | $ 12,786,380 | |
Short-term investments | 205,146 | 416,350 | |
Equities | 1,751,584 | 1,496,441 | |
Other invested assets | 2,756,573 | 2,068,235 | |
Total | 18,784,577 | 16,767,406 | |
Derivative assets | Foreign exchange forward contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other invested assets | 8,841 | 7,309 | |
Derivative assets | Total return swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other invested assets | 153 | 797 | |
Derivative assets | Insurance-linked securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other invested assets | 5,663 | 3,074 | |
Derivative assets | Other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other invested assets | 3,059 | 419 | |
Corporate loans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other invested assets | [1] | 1,469,776 | 1,326,143 |
Notes and loan receivables and notes securitization | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other invested assets | 6,575 | 7,121 | |
Private equities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other invested assets | 1,280,731 | 756,731 | |
Derivative liabilities | Foreign exchange forward contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other invested assets | (6,657) | (10,698) | |
Derivative liabilities | Total return swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other invested assets | (1,079) | (3,152) | |
Derivative liabilities | Insurance-linked securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other invested assets | (2,000) | ||
Derivative liabilities | Interest rate swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other invested assets | (10,489) | (17,509) | |
Real estate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equities | 99,951 | 2,338 | |
Consumer noncyclical | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equities | 10,424 | 6,886 | |
Consumer cyclical | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equities | 8,735 | 13,787 | |
Diversified | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equities | 7,472 | 3,100 | |
Energy | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equities | 3,480 | 34,448 | |
Industrials | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equities | 357 | 39 | |
Finance | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equities | 128 | 3,646 | |
Insurance | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equities | 18 | 4,117 | |
Mutual funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equities | 1,621,019 | 1,428,080 | |
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 | 2,118,772 | 2,409,540 | |
U.S. states, territories and municipalities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, at fair value | 108,059 | 137,968 | |
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 | 2,181,127 | 2,180,762 | |
Corporate bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, at fair value | 5,441,908 | 3,341,854 | |
Asset-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, at fair value | 16,764 | 17,528 | |
Residential mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, at fair value | 4,204,644 | 4,698,728 | |
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 | 106,791 | 16,822 | |
Other invested assets | 0 | 0 | |
Total | 106,791 | 16,822 | |
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 | Other | |||
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) | 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 | ||
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) | Real estate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equities | 97,854 | 0 | |
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 | 343 | 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 | 7,341 | 13,312 | |
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 | 4 | 2 | |
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 | 1,112 | 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 | 137 | 0 | |
Quoted prices in active markets for identical assets (Level 1) | Finance | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equities | 0 | 3,508 | |
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 | 0 | |
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) | 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 | |
Significant other observable inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, at fair value | 13,959,329 | 12,631,845 | |
Short-term investments | 205,146 | 416,350 | |
Equities | 18 | 117 | |
Other invested assets | (8,305) | (20,898) | |
Total | 14,156,188 | 13,027,414 | |
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 | 8,841 | 7,309 | |
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 | Other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other invested assets | 0 | 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 | (6,657) | (10,698) | |
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 | ||
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 | (10,489) | (17,509) | |
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) | Consumer noncyclical | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equities | 0 | 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) | Diversified | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equities | 0 | 0 | |
Significant other observable inputs (Level 2) | Energy | |||
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) | Finance | |||
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 | 18 | 117 | |
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) | 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 | 2,118,772 | 2,409,540 | |
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 | 12,878 | 17,491 | |
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 | 2,181,127 | 2,180,762 | |
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 | 5,441,908 | 3,325,324 | |
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 | 4,204,644 | 4,698,728 | |
Significant unobservable inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, at fair value | 111,945 | 154,535 | |
Short-term investments | 0 | 0 | |
Equities | 1,644,775 | 1,479,502 | |
Other invested assets | 2,764,878 | 2,089,133 | |
Total | 4,521,598 | 3,723,170 | |
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 | 153 | 797 | |
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 | 5,663 | 3,074 | |
Significant unobservable inputs (Level 3) | Derivative assets | Other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other invested assets | 3,059 | 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] | 1,469,776 | 1,326,143 |
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 | 6,575 | 7,121 | |
Significant unobservable inputs (Level 3) | Private equities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other invested assets | 1,280,731 | 756,731 | |
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 | (1,079) | (3,152) | |
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) | ||
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) | Real estate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equities | 2,097 | 2,338 | |
Significant unobservable inputs (Level 3) | Consumer noncyclical | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equities | 10,081 | 6,886 | |
Significant unobservable inputs (Level 3) | Consumer cyclical | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equities | 1,394 | 475 | |
Significant unobservable inputs (Level 3) | Diversified | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equities | 7,468 | 3,098 | |
Significant unobservable inputs (Level 3) | Energy | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equities | 2,368 | 34,448 | |
Significant unobservable inputs (Level 3) | Industrials | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equities | 220 | 39 | |
Significant unobservable inputs (Level 3) | Finance | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equities | 128 | 138 | |
Significant unobservable inputs (Level 3) | Insurance | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equities | 0 | 4,000 | |
Significant unobservable inputs (Level 3) | Mutual funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equities | 1,621,019 | 1,428,080 | |
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 | 95,181 | 120,477 | |
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 | 0 | 16,530 | |
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 | 16,764 | 17,528 | |
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 | |
[1] | Corporate loans includes a portfolio of third-party, individually managed privately issued corporate loans that are managed under an externally managed mandate with a fair value of $1.0 billion and $0.9 billion at December 31, 2021 and 2020, respectively. The mandate primarily invests in U.S. floating rate, first lien, senior secured broadly syndicated loans with a focus on facility sizes greater than $300 million. Corporate loans also includes $0.5 billion and $0.4 billion of other privately issued corporate loans at December 31, 2021 and 2020 respectively . |
Fair Value - Level 3 rollforwar
Fair Value - Level 3 rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | |||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of year | $ 3,723,170 | $ 3,805,380 | ||
Realized and unrealized investment (losses) gains included in net income | 554,742 | 280,542 | ||
Purchases | 1,452,736 | 914,589 | ||
Settlements and sales | (1,204,649) | [1] | (1,279,173) | |
Level 3 transfers, Net | (4,401) | 1,832 | ||
Balance, end of year | 4,521,598 | 3,723,170 | ||
Change in unrealized investment (losses) gains relating to assets held at end of year | 366,652 | 318,819 | ||
Fixed maturities | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of year | 154,535 | 180,342 | ||
Realized and unrealized investment (losses) gains included in net income | (7,165) | (5,913) | ||
Purchases | 0 | 0 | ||
Settlements and sales | (35,425) | [1] | (19,894) | |
Level 3 transfers, Net | 0 | 0 | ||
Balance, end of year | 111,945 | 154,535 | ||
Change in unrealized investment (losses) gains relating to assets held at end of year | (8,818) | (5,908) | ||
Sales | 17,000 | |||
Fixed maturities | U.S. states, territories and municipalities | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of year | 120,477 | 143,427 | ||
Realized and unrealized investment (losses) gains included in net income | (7,330) | (5,785) | ||
Purchases | 0 | 0 | ||
Settlements and sales | (17,966) | (17,165) | [2] | |
Level 3 transfers, Net | 0 | 0 | ||
Balance, end of year | 95,181 | 120,477 | ||
Change in unrealized investment (losses) gains relating to assets held at end of year | (8,818) | (5,780) | ||
Fixed maturities | Asset-backed securities | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of year | 17,528 | 18,228 | ||
Realized and unrealized investment (losses) gains included in net income | 0 | 0 | ||
Purchases | 0 | 0 | ||
Settlements and sales | (764) | (700) | ||
Level 3 transfers, Net | 0 | 0 | ||
Balance, end of year | 16,764 | 17,528 | ||
Change in unrealized investment (losses) gains relating to assets held at end of year | 0 | 0 | ||
Fixed maturities | Corporate bonds | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of year | 16,530 | 18,687 | ||
Realized and unrealized investment (losses) gains included in net income | 165 | (128) | ||
Purchases | 0 | 0 | ||
Settlements and sales | (16,695) | (2,029) | ||
Level 3 transfers, Net | 0 | 0 | ||
Balance, end of year | 0 | 16,530 | ||
Change in unrealized investment (losses) gains relating to assets held at end of year | 0 | (128) | ||
Equities | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of year | 1,479,502 | 1,211,761 | ||
Realized and unrealized investment (losses) gains included in net income | 275,768 | 199,901 | ||
Purchases | 65,464 | 89,257 | ||
Settlements and sales | (171,558) | [1] | (25,911) | |
Level 3 transfers, Net | (4,401) | 4,494 | ||
Balance, end of year | 1,644,775 | 1,479,502 | ||
Change in unrealized investment (losses) gains relating to assets held at end of year | 202,608 | 204,908 | ||
Sales | 172,000 | 26,000 | ||
Equities | Energy | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of year | 34,448 | 0 | ||
Realized and unrealized investment (losses) gains included in net income | 54,509 | 3,419 | ||
Purchases | 6 | 31,128 | ||
Settlements and sales | (86,595) | (99) | ||
Level 3 transfers, Net | 0 | 0 | ||
Balance, end of year | 2,368 | 34,448 | ||
Change in unrealized investment (losses) gains relating to assets held at end of year | 1,326 | 3,320 | ||
Equities | Consumer noncyclical | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of year | 6,886 | 0 | ||
Realized and unrealized investment (losses) gains included in net income | 7,557 | (3,168) | ||
Purchases | 0 | 5,560 | ||
Settlements and sales | 0 | 0 | ||
Level 3 transfers, Net | (4,362) | 4,494 | ||
Balance, end of year | 10,081 | 6,886 | ||
Change in unrealized investment (losses) gains relating to assets held at end of year | 4,522 | 278 | ||
Equities | Insurance | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of year | 4,000 | 9,403 | ||
Realized and unrealized investment (losses) gains included in net income | 0 | (5,403) | ||
Purchases | 0 | 0 | ||
Settlements and sales | (4,000) | 0 | ||
Level 3 transfers, Net | 0 | 0 | ||
Balance, end of year | 0 | 4,000 | ||
Change in unrealized investment (losses) gains relating to assets held at end of year | 0 | 4,000 | ||
Equities | Real estate | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of year | 2,338 | 2,385 | ||
Realized and unrealized investment (losses) gains included in net income | (241) | (416) | ||
Purchases | 0 | 369 | ||
Settlements and sales | 0 | 0 | ||
Level 3 transfers, Net | 0 | 0 | ||
Balance, end of year | 2,097 | 2,338 | ||
Change in unrealized investment (losses) gains relating to assets held at end of year | (241) | (416) | ||
Equities | Consumer cyclical | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of year | 475 | 0 | ||
Realized and unrealized investment (losses) gains included in net income | (916) | 0 | ||
Purchases | 1,835 | 475 | ||
Settlements and sales | 0 | 0 | ||
Level 3 transfers, Net | 0 | 0 | ||
Balance, end of year | 1,394 | 475 | ||
Change in unrealized investment (losses) gains relating to assets held at end of year | (916) | 0 | ||
Equities | Industrials | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of year | 39 | 0 | ||
Realized and unrealized investment (losses) gains included in net income | 245 | (491) | ||
Purchases | 309 | 530 | ||
Settlements and sales | (334) | 0 | ||
Level 3 transfers, Net | (39) | 0 | ||
Balance, end of year | 220 | 39 | ||
Change in unrealized investment (losses) gains relating to assets held at end of year | 99 | (491) | ||
Equities | Finance | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of year | 138 | 126 | ||
Realized and unrealized investment (losses) gains included in net income | (10) | 12 | ||
Purchases | 0 | 0 | ||
Settlements and sales | 0 | 0 | ||
Level 3 transfers, Net | 0 | 0 | ||
Balance, end of year | 128 | 138 | ||
Change in unrealized investment (losses) gains relating to assets held at end of year | (10) | 12 | ||
Equities | Mutual funds | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of year | 1,428,080 | 1,199,847 | ||
Realized and unrealized investment (losses) gains included in net income | 212,723 | 206,654 | ||
Purchases | 60,845 | 47,391 | ||
Settlements and sales | (80,629) | (25,812) | ||
Level 3 transfers, Net | 0 | 0 | ||
Balance, end of year | 1,621,019 | 1,428,080 | ||
Change in unrealized investment (losses) gains relating to assets held at end of year | 195,927 | 198,911 | ||
Equities | Diversified | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of year | 3,098 | 0 | ||
Realized and unrealized investment (losses) gains included in net income | 1,901 | (706) | ||
Purchases | 2,469 | 3,804 | ||
Settlements and sales | 0 | 0 | ||
Level 3 transfers, Net | 0 | 0 | ||
Balance, end of year | 7,468 | 3,098 | ||
Change in unrealized investment (losses) gains relating to assets held at end of year | 1,901 | (706) | ||
Other invested assets | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of year | 2,089,133 | 2,413,277 | ||
Realized and unrealized investment (losses) gains included in net income | 286,139 | 86,554 | ||
Purchases | 1,387,272 | 825,332 | ||
Settlements and sales | (997,666) | [1] | (1,233,368) | |
Level 3 transfers, Net | 0 | (2,662) | ||
Balance, end of year | 2,764,878 | 2,089,133 | ||
Change in unrealized investment (losses) gains relating to assets held at end of year | 172,862 | 119,819 | ||
Sales | 738,000 | 1,100,000 | ||
Other invested assets | Derivatives, net | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of year | (862) | (2,657) | ||
Realized and unrealized investment (losses) gains included in net income | 5,718 | (8,217) | ||
Purchases | 3,059 | 5,008 | ||
Settlements and sales | (119) | 5,004 | ||
Level 3 transfers, Net | 0 | 0 | ||
Balance, end of year | 7,796 | (862) | ||
Change in unrealized investment (losses) gains relating to assets held at end of year | 4,018 | (5,085) | ||
Other invested assets | Corporate loans | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of year | 1,326,143 | 1,879,105 | ||
Realized and unrealized investment (losses) gains included in net income | (10,668) | (10,980) | ||
Purchases | 796,236 | 555,780 | ||
Settlements and sales | (641,935) | (1,097,762) | ||
Level 3 transfers, Net | 0 | 0 | ||
Balance, end of year | 1,469,776 | 1,326,143 | ||
Change in unrealized investment (losses) gains relating to assets held at end of year | (6,432) | 31,980 | ||
Sales | 404,000 | 981,000 | ||
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 | 7,121 | 3,085 | ||
Realized and unrealized investment (losses) gains included in net income | (71) | 124 | ||
Purchases | 21 | 4,448 | ||
Settlements and sales | (496) | (536) | ||
Level 3 transfers, Net | 0 | 0 | ||
Balance, end of year | 6,575 | 7,121 | ||
Change in unrealized investment (losses) gains relating to assets held at end of year | (6,895) | (979) | ||
Other invested assets | Private equities | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of year | 756,731 | 533,744 | ||
Realized and unrealized investment (losses) gains included in net income | 291,160 | 105,627 | ||
Purchases | 587,956 | 260,096 | ||
Settlements and sales | (355,116) | (140,074) | ||
Level 3 transfers, Net | 0 | (2,662) | ||
Balance, end of year | 1,280,731 | 756,731 | ||
Change in unrealized investment (losses) gains relating to assets held at end of year | 182,171 | 93,903 | ||
Sales | $ 334,000 | $ 137,000 | ||
[1] | Includes sales of Fixed maturities, Equities and Other invested assets of $17 million, $172 million and $738 million, respectively. Sales of Fixed maturities were comprised of U.S. states, territories and municipalities. Sales of Other invested assets included sales of corporate loans of $404 million and private equities of $334 million. | |||
[2] | Settlements and sales of Equities and Other invested assets included sales of $26 million and $1.1 billion, respectively. |
Fair Value - Valuation Techniqu
Fair Value - Valuation Technique and Inputs (Details) $ in Thousands | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fixed maturities, at fair value | $ 14,071,274 | $ 12,786,380 |
Other invested assets carried at fair value | 2,756,573 | 2,068,235 |
Significant unobservable inputs (Level 3) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fixed maturities, at fair value | 111,945 | 154,535 |
Other invested assets carried at fair value | 2,764,878 | 2,089,133 |
U.S. states, territories and municipalities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fixed maturities, at fair value | 108,059 | 137,968 |
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 | 95,181 | 120,477 |
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 | $ 95,181 | $ 120,477 |
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 | 0.025 |
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 | 2.545 | 2.832 |
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 | 0.143 | 0.148 |
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 | |
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 | |
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 | |
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 | |
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 | $ (926) | $ (2,355) |
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 | 0.024 | 0.027 |
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 | 0.413 | 0.367 |
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 | 0.365 | 0.298 |
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 | $ 5,663 | $ 3,074 |
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 | 0.017 | 0.018 |
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 | 0.017 | 0.018 |
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 | 0.017 | 0.018 |
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 | $ 1,791 | $ 6,446 |
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 | $ 403 | $ 675 |
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 | 0.025 |
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 | 0.025 |
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 | 0.025 |
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 | |
Other invested assets | Private equity funds | Significant unobservable inputs (Level 3) | Lag reported market value | Net asset value, as reported | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other invested assets, measurement input | 1 | |
Other invested assets | Private equity funds | Significant unobservable inputs (Level 3) | Lag reported market value | Net asset value, as reported | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other invested assets, measurement input | 1 | |
Other invested assets | Private equity funds | Significant unobservable inputs (Level 3) | Lag reported market value | Net asset value, as reported | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other invested assets, measurement input | 1 | |
Other invested assets | Private equity funds | Significant unobservable inputs (Level 3) | Lag reported market value | Market adjustments | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other invested assets, measurement input | 0.157 | |
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 | |
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 | |
Other invested assets | Private equity funds | Significant unobservable inputs (Level 3) | Reported market value | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other invested assets carried at fair value | $ 38,185 | |
Other invested assets | Private equity funds | Significant unobservable inputs (Level 3) | Reported market value | Net asset value, as reported | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other invested assets, measurement input | 1 | |
Other invested assets | Private equity funds | Significant unobservable inputs (Level 3) | Reported market value | Net asset value, as reported | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other invested assets, measurement input | 1 | |
Other invested assets | Private equity funds | Significant unobservable inputs (Level 3) | Reported market value | Net asset value, as reported | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other invested assets, measurement input | 1 | |
Other invested assets | Private equity funds | Significant unobservable inputs (Level 3) | Reported market value | Market adjustments | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other invested assets, measurement input | (0.025) | |
Other invested assets | Private equity funds | Significant unobservable inputs (Level 3) | Reported market value | Market adjustments | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other invested assets, measurement input | (0.025) | |
Other invested assets | Private equity funds | Significant unobservable inputs (Level 3) | Reported market value | Market adjustments | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other invested assets, measurement input | (0.025) | |
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 | $ 8,832 | $ 30,067 |
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 | 0.035 | 0.039 |
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 | 0.035 | 0.039 |
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 | 0.035 | 0.039 |
Fair Value - Change in fair val
Fair Value - Change in fair value option table (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Change in unrealized gain/loss | $ (175,477) | $ 451,071 | $ 644,211 |
Fixed maturities and short term investments | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Change in unrealized gain/loss | (558,466) | 219,946 | 190,343 |
Equities | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Change in unrealized gain/loss | 198,780 | 167,456 | 403,011 |
Other invested assets | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Change in unrealized gain/loss | $ 184,209 | $ 63,669 | $ 50,857 |
Fair Value - Narrative items (D
Fair Value - Narrative items (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value - Other Details [Line Items] | ||
Other invested assets carried at fair value | $ 2,756,573 | $ 2,068,235 |
Other invested assets | ||
Fair Value - Other Details [Line Items] | ||
Equity method investments | 845,000 | 900,000 |
Proceeds from Dividends Received - equity method investments | 10,000 | 2,000 |
Other invested assets | ||
Fair Value - Other Details [Line Items] | ||
Equity method investments | 845,000 | |
Equities | Consumer noncyclical | ||
Fair Value - Other Details [Line Items] | ||
Transfers into level 3 | 4,000 | |
Transfers out of level 3 | 4,000 | |
Individually managed private issue corporate loans | ||
Fair Value - Other Details [Line Items] | ||
Other invested assets carried at fair value | 1,000,000 | 900,000 |
Minimum threshold for inclusion in managed loan portfolio | 300,000 | 300,000 |
Other private issue corporate loans | ||
Fair Value - Other Details [Line Items] | ||
Other invested assets carried at fair value | 500,000 | 400,000 |
Private equities | ||
Fair Value - Other Details [Line Items] | ||
Other invested assets carried at fair value | $ 1,280,731 | 756,731 |
Private equities | Other invested assets | ||
Fair Value - Other Details [Line Items] | ||
Transfers out of level 3 | $ 3,000 |
Investments - Net Realized and
Investments - Net Realized and Unrealized Investment (Losses) Gains (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Investments [Abstract] | |||
Net realized investment gains on fixed maturities and short-term investments | $ 19,893 | $ 24,828 | $ 243,508 |
Net realized investment gains on equities | 78,501 | 21,538 | 6,545 |
Net realized investment gains (losses) on other invested assets | 103,011 | (30,436) | 830 |
Net realized investment gains | 201,405 | 15,930 | 250,883 |
Change in net unrealized investment (losses) gains on fixed maturities and short-term investments | (558,466) | 219,946 | 190,343 |
Change in net unrealized investment gains on equities | 198,780 | 167,456 | 403,011 |
Change in net unrealized investment gains on other invested assets | 196,926 | 58,452 | 44,441 |
Net other realized and unrealized investment (losses) gains | (848) | (1,346) | 969 |
Change in net unrealized investment (losses) gains | (163,608) | 444,508 | 638,764 |
Impairment loss on investments in real estate | 0 | (6,119) | (2,977) |
Net realized and unrealized investment gains | $ 37,797 | $ 454,319 | $ 886,670 |
Investments - Investment Income
Investments - Investment Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Net Investment Income [Line Items] | ||||
Net investment income | $ 376,469 | $ 360,668 | $ 448,538 | |
Funds held interest rate, low end of range | 0.10% | 0.10% | 0.10% | |
Funds held interest rate, high end of range | 7.30% | 6.50% | 5.10% | |
Fixed maturities | ||||
Net Investment Income [Line Items] | ||||
Net investment income | $ 301,391 | $ 290,259 | $ 379,939 | |
Short-term investments and cash and cash equivalents | ||||
Net Investment Income [Line Items] | ||||
Net investment income | 4,860 | 12,000 | 26,981 | |
Other invested assets | ||||
Net Investment Income [Line Items] | ||||
Net investment income | 90,442 | 89,129 | 68,879 | |
Equities | ||||
Net Investment Income [Line Items] | ||||
Net investment income | 12,686 | 3,918 | (6,067) | |
Funds held and other (1) | ||||
Net Investment Income [Line Items] | ||||
Net investment income | [1] | 17,871 | 16,559 | 18,288 |
Investment Expenses | ||||
Net Investment Income [Line Items] | ||||
Net investment income | $ (50,781) | $ (51,197) | $ (39,482) | |
[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 7.3%, 0.1% to 6.5% and 0.1% to 5.1% for the years ended December 31, 2021, 2020 and 2019, respectively. |
Investments - Pledged assets an
Investments - Pledged assets and net payable receivable for securities purchased sold (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Pledged assets and net payable for securities purchased [Line Items] | ||
Restricted cash and cash equivalents | $ 105 | $ 209 |
Restricted securities | 5,483 | 4,993 |
Other assets | ||
Pledged assets and net payable for securities purchased [Line Items] | ||
Receivable for securities sold | 45 | 24 |
Accounts payable, accrued expenses, and other | ||
Pledged assets and net payable for securities purchased [Line Items] | ||
Payable for securities purchased | $ 202 | $ 286 |
Investments - Equity Method Inv
Investments - Equity Method Investments (Details) - Other invested assets - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | $ 845 | $ 900 |
Almacantar Group S.A. | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 36.00% | 36.00% |
Equity method investments | $ 561 | $ 494 |
Derivatives - Balance Sheet (De
Derivatives - Balance Sheet (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative [Line Items] | |||
Asset derivatives at fair value | [1] | $ 17,716,000 | $ 11,599,000 |
Liability derivatives at fair value | [1] | (18,225,000) | (33,359,000) |
Derivatives designated as hedges | |||
Derivative [Line Items] | |||
Net notional exposure | 0 | 0 | |
Derivatives not designated as hedges | |||
Derivative [Line Items] | |||
Asset derivatives at fair value | 17,716,000 | 11,599,000 | |
Liability derivatives at fair value | (18,225,000) | (33,359,000) | |
Fair value | (509,000) | (21,760,000) | |
Derivatives not designated as hedges | Foreign exchange forward contracts | |||
Derivative [Line Items] | |||
Asset derivatives at fair value | 8,841,000 | 7,309,000 | |
Liability derivatives at fair value | (6,657,000) | (10,698,000) | |
Fair value | 2,184,000 | (3,389,000) | |
Net notional exposure | 3,092,396,000 | 3,843,436,000 | |
Derivatives not designated as hedges | Insurance-linked securities | |||
Derivative [Line Items] | |||
Asset derivatives at fair value | [2] | 5,663,000 | 3,074,000 |
Liability derivatives at fair value | [2] | 0 | (2,000,000) |
Fair value | [2] | 5,663,000 | 1,074,000 |
Net notional exposure | [2] | 15,200,000 | 18,850,000 |
Derivatives not designated as hedges | Total return swaps | |||
Derivative [Line Items] | |||
Asset derivatives at fair value | 153,000 | 797,000 | |
Liability derivatives at fair value | (1,079,000) | (3,152,000) | |
Fair value | (926,000) | (2,355,000) | |
Net notional exposure | 31,519,000 | 31,580,000 | |
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] | (10,489,000) | (17,509,000) |
Fair value | [3] | (10,489,000) | (17,509,000) |
Net notional exposure | [3] | 0 | 0 |
Derivatives not designated as hedges | Other Investments | |||
Derivative [Line Items] | |||
Asset derivatives at fair value | 3,059,000 | 419,000 | |
Liability derivatives at fair value | 0 | 0 | |
Fair value | 3,059,000 | 419,000 | |
Net notional exposure | $ 0 | $ 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) - Derivatives not designated as hedges - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivatives recognized in income | $ (3,885) | $ (40,062) | $ (60,271) |
Included in net foreign exchange gains and losses | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivatives recognized in income | (16,788) | (32,611) | (41,171) |
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 | (16,788) | (32,611) | (41,171) |
Included in net realized and unrealized investment gains and losses | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivatives recognized in income | 12,903 | (7,451) | (19,100) |
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 | 0 | (9,952) |
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 | 4,807 | (2,341) | (4,381) |
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 | 1,430 | (845) | 0 |
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 | 7,020 | (5,131) | (5,230) |
Included in net realized and unrealized investment gains and losses | TBAs | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivatives recognized in income | (56) | (510) | 0 |
Included in net realized and unrealized investment gains and losses | Other | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivatives recognized in income | $ (298) | $ 1,376 | $ 463 |
Derivatives - Offsetting (Detai
Derivatives - Offsetting (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Gross amounts of recognized, asset | [1] | $ 17,716 | $ 11,599 |
Gross amount offset in the balance sheet | 0 | 0 | |
Net amounts of asset/ liabilities presented in the balance sheet, asset | 17,716 | 11,599 | |
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 | (34,764) | (26,853) | |
Net amount, asset | (17,048) | (15,254) | |
Gross amounts of recognized, liability | [1] | (18,225) | (33,359) |
Gross amount offset in the balance sheet | 0 | 0 | |
Net amounts presented in the balance sheet, liability | (18,225) | (33,359) | |
Gross amounts not offset in the balance sheet, financial instruments, liability | 0 | 0 | |
Gross amounts not offset in the balance sheet, cash collateral received | 1,671 | 11,503 | |
Net amount, liability | $ (16,554) | $ (21,856) | |
[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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill And Intangible Assets [Line Items] | |||
Balance at beginning of year | $ 456,380 | $ 456,380 | $ 456,380 |
Foreign currency translation | 0 | 0 | 0 |
Balance at end of year | 456,380 | 456,380 | 456,380 |
Balance at beginning of year | 107,669 | ||
Amortization of intangible assets | (8,861) | (9,988) | (11,434) |
Balance at end of year | 98,818 | 107,669 | |
Definite-lived intangible assets | |||
Goodwill And Intangible Assets [Line Items] | |||
Balance at beginning of year | 98,114 | 107,983 | 119,344 |
Foreign currency translation | 10 | 119 | 73 |
Amortization of intangible assets | (8,861) | (9,988) | (11,434) |
Balance at end of year | 89,263 | 98,114 | 107,983 |
Indefinite-lived intangible assets | |||
Goodwill And Intangible Assets [Line Items] | |||
Balance at beginning of year | 9,555 | 9,555 | 9,555 |
Foreign currency translation | 0 | 0 | 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 | 107,669 | 117,538 | 128,899 |
Total foreign currency translation | 10 | 119 | 73 |
Amortization of intangible assets | (8,861) | (9,988) | (11,434) |
Balance at end of year | $ 98,818 | $ 107,669 | $ 117,538 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill And Intangible Assets [Line Items] | ||||
Intangible assets | $ 98,818 | $ 107,669 | ||
Definite-lived intangible assets | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Gross intangible assets excluding goodwill | 191,494 | 191,484 | ||
Accumulated amortization | (102,231) | (93,370) | ||
Intangible assets | 89,263 | 98,114 | $ 107,983 | $ 119,344 |
Definite-lived intangible assets | Renewal rights | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Gross intangible assets excluding goodwill | 48,163 | 48,163 | ||
Accumulated amortization | (40,786) | (38,205) | ||
Intangible assets | 7,377 | 9,958 | ||
Definite-lived intangible assets | Customer relationships | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Gross intangible assets excluding goodwill | 67,748 | 67,738 | ||
Accumulated amortization | (52,661) | (47,867) | ||
Intangible assets | 15,087 | 19,871 | ||
Definite-lived intangible assets | Life VOBA | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Gross intangible assets excluding goodwill | 75,583 | 75,583 | ||
Accumulated amortization | (8,784) | (7,298) | ||
Intangible assets | $ 66,799 | 68,285 | ||
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 | ||
Total intangible assets | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Gross intangible assets excluding goodwill | 201,049 | 201,039 | ||
Accumulated amortization | (102,231) | (93,370) | ||
Intangible assets | $ 98,818 | $ 107,669 | $ 117,538 | $ 128,899 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
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, 2021USD ($) |
Estimated amortization expense | |
2022 | $ 8,901 |
2023 | 7,913 |
2024 | 7,256 |
2025 | 6,437 |
2026 | 2,294 |
Thereafter | 56,462 |
Total | 89,263 |
VOBA | |
Estimated amortization expense | |
2022 | 2,478 |
2023 | 2,272 |
2024 | 2,296 |
2025 | 2,070 |
2026 | 1,892 |
Thereafter | 55,791 |
Total | 66,799 |
Other definite- lived intangible assets | |
Estimated amortization expense | |
2022 | 6,423 |
2023 | 5,641 |
2024 | 4,960 |
2025 | 4,367 |
2026 | 402 |
Thereafter | 671 |
Total | $ 22,464 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Components of non-life reserves [Line Items] | ||||
Non-life reserves | $ 12,047,792 | $ 11,395,321 | ||
Non Life | ||||
Components of non-life reserves [Line Items] | ||||
Case reserves | 4,881,892 | 4,646,633 | ||
ACRs | 140,464 | 171,381 | ||
IBNR reserves | 7,025,436 | 6,577,307 | ||
Non-life reserves | $ 12,047,792 | $ 11,395,321 | $ 10,363,383 | $ 9,895,376 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||||||
Gross liability at beginning of year | $ 11,395,321,000 | ||||||
Reinsurance recoverable at beginning of year | 901,063,000 | ||||||
Net paid losses related to: | |||||||
Reinsurance recoverable at end of year | $ 901,063,000 | 1,787,493,000 | $ 901,063,000 | ||||
Gross liability at end of year | 11,395,321,000 | 12,047,792,000 | 11,395,321,000 | ||||
Non Life | |||||||
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||||||
Gross liability at beginning of year | 11,395,321,000 | 10,363,383,000 | $ 9,895,376,000 | ||||
Reinsurance recoverable at beginning of year | 782,330,000 | 754,795,000 | 850,946,000 | ||||
Net liability at beginning of year | 10,612,991,000 | 9,608,588,000 | 9,044,430,000 | ||||
Net incurred losses related to: | |||||||
Current year | 3,637,671,000 | 3,945,248,000 | 3,716,988,000 | [1] | |||
Prior years | (194,426,000) | 71,456,000 | (56,848,000) | [1] | |||
Net incurred losses | 3,443,245,000 | 4,016,704,000 | 3,660,140,000 | [1] | |||
Net paid losses related to: | |||||||
Current year | (437,938,000) | (459,718,000) | (439,285,000) | ||||
Prior years | (2,535,057,000) | (2,772,886,000) | (2,651,385,000) | ||||
Total Non-life Claims Paid | (2,972,995,000) | (3,232,604,000) | (3,090,670,000) | ||||
Retroactive reinsurance recoverable | $ (81,000,000) | (357,864,000) | 0 | (81,013,000) | |||
Effects of foreign exchange rate changes and other | (210,251,000) | 220,303,000 | 75,701,000 | ||||
Net liability at end of year | 10,612,991,000 | 9,608,588,000 | 10,515,126,000 | 10,612,991,000 | 9,608,588,000 | ||
Reinsurance recoverable at end of year | 782,330,000 | 754,795,000 | 1,532,666,000 | 782,330,000 | 754,795,000 | ||
Gross liability at end of year | 11,395,321,000 | $ 10,363,383,000 | 12,047,792,000 | 11,395,321,000 | 10,363,383,000 | ||
Loss portfolio transfer and adverse development cover agreement deferred gain | 20,000,000 | ||||||
Loss portfolio transfer agreement percentage | 100.00% | ||||||
Wholesale transaction deferred gain | $ 14,000,000 | ||||||
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 | |||||
Wholesale transaction gain | 14,000,000 | ||||||
Portfolio Transfer Settlement, Invested Assets Amount | 64,000,000 | ||||||
Corporate and Other | |||||||
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||||||
Gross liability at beginning of year | 0 | 6,000,000 | |||||
Net incurred losses related to: | |||||||
Prior years | (3,000,000) | [1] | (3,000,000) | ||||
Net paid losses related to: | |||||||
Gross liability at end of year | $ 0 | $ 6,000,000 | $ 0 | $ 0 | $ 6,000,000 | ||
[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 $6 million at December 31, 2019. There were no incurred losses or non-life reserves allocated to Corporate and Other during 2021 or 2020. |
Non-life and Life and Health _5
Non-life and Life and Health Reserves - Guaranteed reserves, asbestos, and environmental claims and narrative (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract] | ||
Net non-life reserves related to asbestos and environmental claims | $ 44 | $ 43 |
Gross non-life reserves related to asbestos and environmental claims | $ 52 | $ 50 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Reconciliation of Loss and Loss Expenses Including Life Policy Benefits [Line Items] | |||||
Reinsurance recoverable at beginning of year | $ 901,063 | ||||
Reinsurance recoverable at end of year | 1,787,493 | $ 901,063 | |||
Life and Health | |||||
Reconciliation of Loss and Loss Expenses Including Life Policy Benefits [Line Items] | |||||
Gross liability at beginning of period | 2,704,229 | 2,417,044 | $ 2,198,080 | ||
Reinsurance recoverable at beginning of year | 35,662 | 16,183 | 11,829 | ||
Net liability at beginning of period | 2,668,567 | 2,400,861 | 2,186,251 | ||
Net incurred losses | 1,440,739 | [1] | 1,318,196 | [1] | 1,263,016 |
Net losses paid | (1,413,316) | (1,230,383) | (1,071,487) | ||
Effects of foreign exchange rate changes and other | (78,904) | 179,893 | 23,081 | ||
Net liability at end of period | 2,617,086 | 2,668,567 | 2,400,861 | ||
Reinsurance recoverable at end of year | 21,000 | 35,662 | 16,183 | ||
Gross liability at end of period | 2,638,086 | 2,704,229 | $ 2,417,044 | ||
Treaties recaptured gains | 15,000 | 28,000 | |||
Life and Health | Disability | |||||
Reconciliation of Loss and Loss Expenses Including Life Policy Benefits [Line Items] | |||||
Prior years' loss development | $ (5,000) | $ 52,000 | |||
Life and Health | Minimum | |||||
Reconciliation of Loss and Loss Expenses Including Life Policy Benefits [Line Items] | |||||
Interest rate assumption related to policy benefits for life and annuity contracts | 0.00% | 0.00% | 0.00% | ||
Life and Health | Maximum | |||||
Reconciliation of Loss and Loss Expenses Including Life Policy Benefits [Line Items] | |||||
Interest rate assumption related to policy benefits for life and annuity contracts | 11.00% | 11.00% | 11.00% | ||
[1] | During 2021 and 2020, certain life and health treaties were recaptured, resulting in total gains upon recapture of $15 million and $28 million respectively, recorded as a reduction to net incurred losses. |
Non-life and Life and Health _7
Non-life and Life and Health Reserves - Loss and loss expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Losses and Loss Expenses by Segment [Line Items] | ||||
Losses and loss expenses | $ 4,883,984 | $ 5,334,900 | $ 4,923,156 | |
Non Life | ||||
Losses and Loss Expenses by Segment [Line Items] | ||||
Losses and loss expenses | 3,443,245 | 4,016,704 | 3,660,140 | [1] |
Life and Health | ||||
Losses and Loss Expenses by Segment [Line Items] | ||||
Losses and loss expenses | $ 1,440,739 | $ 1,318,196 | $ 1,263,016 | |
[1] | Non-life Losses and loss expenses include amounts allocated to Corporate and Other as disclosed in Note 18. |
Non-life and Life and Health _8
Non-life and Life and Health Reserves - Claims development (Details) - Non Life - USD ($) $ in Thousands | Dec. 31, 2021 | 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 |
Claims Development [Line Items] | ||||||||||
Net incurred losses and loss expenses | $ 28,210,538 | |||||||||
Net paid losses and loss expenses | 19,159,432 | |||||||||
Net reserves for accident years and exposures included in the triangles | 9,051,106 | |||||||||
All outstanding liabilities before accident year 2012, net of reinsurance | 1,102,911 | |||||||||
Net liability at end of year | 10,154,017 | |||||||||
Total of IBNR plus expected development on reported claims | $ 5,964,708 | |||||||||
Average annual percentage payout of incurred claims by age: | ||||||||||
Year One | 13.00% | |||||||||
Year Two | 34.00% | |||||||||
Year Three | 16.00% | |||||||||
Year Four | 10.00% | |||||||||
Year Five | 5.00% | |||||||||
Year Six | 4.00% | |||||||||
Year Seven | 3.00% | |||||||||
Year Eight | 2.00% | |||||||||
Year Nine | 1.00% | |||||||||
Year Ten | 1.00% | |||||||||
2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net incurred losses and loss expenses | $ 2,181,218 | $ 2,197,815 | $ 2,209,950 | $ 2,243,436 | $ 2,394,396 | $ 2,495,148 | $ 2,248,510 | $ 2,371,984 | $ 2,627,452 | $ 2,342,553 |
Net paid losses and loss expenses | 1,840,284 | 1,825,434 | 1,805,081 | 1,754,704 | 1,705,320 | 1,593,864 | 1,497,677 | 1,338,878 | 973,857 | 294,313 |
Total of IBNR plus expected development on reported claims | 10,086 | |||||||||
2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net incurred losses and loss expenses | 2,345,255 | 2,361,827 | 2,387,407 | 2,393,344 | 2,302,089 | 2,183,344 | 2,487,494 | 2,700,371 | 2,506,489 | |
Net paid losses and loss expenses | 2,188,318 | 2,161,355 | 2,123,294 | 2,055,408 | 1,961,269 | 1,825,345 | 1,623,541 | 1,275,211 | 287,566 | |
Total of IBNR plus expected development on reported claims | 46,041 | |||||||||
2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net incurred losses and loss expenses | 2,385,988 | 2,400,662 | 2,434,886 | 2,477,572 | 2,467,234 | 2,478,039 | 2,596,191 | 2,416,677 | ||
Net paid losses and loss expenses | 2,189,661 | 2,140,845 | 2,060,333 | 1,957,235 | 1,817,505 | 1,596,445 | 1,286,854 | 338,712 | ||
Total of IBNR plus expected development on reported claims | 65,254 | |||||||||
2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net incurred losses and loss expenses | 2,429,432 | 2,449,975 | 2,495,354 | 2,522,169 | 2,494,735 | 2,557,213 | 2,355,703 | |||
Net paid losses and loss expenses | 2,191,493 | 2,114,625 | 2,004,838 | 1,842,842 | 1,603,381 | 1,191,883 | 335,368 | |||
Total of IBNR plus expected development on reported claims | 83,536 | |||||||||
2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net incurred losses and loss expenses | 2,537,312 | 2,522,270 | 2,544,389 | 2,570,484 | 2,597,779 | 2,398,444 | ||||
Net paid losses and loss expenses | 2,206,804 | 2,112,088 | 1,972,139 | 1,687,477 | 1,312,013 | 338,124 | ||||
Total of IBNR plus expected development on reported claims | 167,323 | |||||||||
2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net incurred losses and loss expenses | 2,788,118 | 2,772,119 | 2,811,676 | 2,871,000 | 2,499,161 | |||||
Net paid losses and loss expenses | 2,276,982 | 2,148,343 | 1,853,527 | 1,447,213 | 406,218 | |||||
Total of IBNR plus expected development on reported claims | 235,938 | |||||||||
2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net incurred losses and loss expenses | 3,130,397 | 3,120,388 | 3,093,669 | 2,548,563 | ||||||
Net paid losses and loss expenses | 2,253,397 | 1,933,461 | 1,350,321 | 278,953 | ||||||
Total of IBNR plus expected development on reported claims | 333,906 | |||||||||
2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net incurred losses and loss expenses | 3,707,336 | 3,637,558 | 2,848,949 | |||||||
Net paid losses and loss expenses | 2,154,188 | 1,574,942 | 445,090 | |||||||
Total of IBNR plus expected development on reported claims | 773,002 | |||||||||
2020 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net incurred losses and loss expenses | 3,867,443 | 4,051,824 | ||||||||
Net paid losses and loss expenses | 1,446,282 | 455,948 | ||||||||
Total of IBNR plus expected development on reported claims | 1,728,949 | |||||||||
2021 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net incurred losses and loss expenses | 2,838,039 | |||||||||
Net paid losses and loss expenses | 412,023 | |||||||||
Total of IBNR plus expected development on reported claims | 2,520,673 | |||||||||
Property | ||||||||||
Claims Development [Line Items] | ||||||||||
Net incurred losses and loss expenses | 7,218,667 | |||||||||
Net paid losses and loss expenses | 5,439,603 | |||||||||
Net reserves for accident years and exposures included in the triangles | 1,779,064 | |||||||||
All outstanding liabilities before accident year 2012, net of reinsurance | 146,308 | |||||||||
Net liability at end of year | 1,925,372 | |||||||||
Total of IBNR plus expected development on reported claims | $ 961,409 | |||||||||
Average annual percentage payout of incurred claims by age: | ||||||||||
Year One | 16.00% | |||||||||
Year Two | 47.00% | |||||||||
Year Three | 16.00% | |||||||||
Year Four | 6.00% | |||||||||
Year Five | 2.00% | |||||||||
Year Six | 1.00% | |||||||||
Year Seven | 1.00% | |||||||||
Year Eight | 1.00% | |||||||||
Year Nine | 0.00% | |||||||||
Year Ten | 1.00% | |||||||||
Property | 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net incurred losses and loss expenses | $ 494,145 | 502,369 | 502,869 | 513,621 | 518,564 | 517,687 | 533,256 | 551,817 | 658,283 | 691,488 |
Net paid losses and loss expenses | 508,477 | 505,895 | 505,649 | 498,829 | 494,267 | 484,780 | 472,761 | 438,322 | 345,731 | 99,084 |
Total of IBNR plus expected development on reported claims | 1,959 | |||||||||
Property | 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net incurred losses and loss expenses | 512,546 | 514,873 | 515,376 | 517,468 | 525,745 | 531,833 | 546,588 | 586,694 | 639,026 | |
Net paid losses and loss expenses | 499,576 | 499,794 | 497,604 | 492,774 | 489,287 | 471,381 | 436,234 | 331,515 | 90,889 | |
Total of IBNR plus expected development on reported claims | 842 | |||||||||
Property | 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net incurred losses and loss expenses | 451,833 | 451,662 | 454,046 | 456,086 | 461,842 | 465,774 | 489,871 | 465,513 | ||
Net paid losses and loss expenses | 443,167 | 441,065 | 436,472 | 431,055 | 421,164 | 393,013 | 319,121 | 97,352 | ||
Total of IBNR plus expected development on reported claims | 552 | |||||||||
Property | 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net incurred losses and loss expenses | 546,732 | 541,160 | 545,180 | 548,666 | 557,092 | 581,923 | 550,216 | |||
Net paid losses and loss expenses | 513,203 | 503,895 | 496,634 | 483,907 | 450,016 | 346,869 | 101,501 | |||
Total of IBNR plus expected development on reported claims | 3,810 | |||||||||
Property | 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net incurred losses and loss expenses | 650,208 | 648,266 | 651,823 | 671,835 | 706,630 | 684,976 | ||||
Net paid losses and loss expenses | 637,028 | 626,616 | 609,863 | 567,654 | 469,162 | 148,109 | ||||
Total of IBNR plus expected development on reported claims | 13,249 | |||||||||
Property | 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net incurred losses and loss expenses | 937,829 | 945,066 | 973,452 | 1,039,936 | 973,654 | |||||
Net paid losses and loss expenses | 889,729 | 880,073 | 829,490 | 714,541 | 224,987 | |||||
Total of IBNR plus expected development on reported claims | 20,219 | |||||||||
Property | 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net incurred losses and loss expenses | 820,472 | 844,596 | 861,674 | 826,216 | ||||||
Net paid losses and loss expenses | 710,866 | 669,153 | 530,024 | 80,881 | ||||||
Total of IBNR plus expected development on reported claims | 28,467 | |||||||||
Property | 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net incurred losses and loss expenses | 831,461 | 849,547 | 741,448 | |||||||
Net paid losses and loss expenses | 589,100 | 458,182 | 80,621 | |||||||
Total of IBNR plus expected development on reported claims | 47,475 | |||||||||
Property | 2020 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net incurred losses and loss expenses | 1,163,924 | 1,212,387 | ||||||||
Net paid losses and loss expenses | 537,865 | 111,470 | ||||||||
Total of IBNR plus expected development on reported claims | 272,042 | |||||||||
Property | 2021 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net incurred losses and loss expenses | 809,517 | |||||||||
Net paid losses and loss expenses | 110,592 | |||||||||
Total of IBNR plus expected development on reported claims | 572,794 | |||||||||
Casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
Net incurred losses and loss expenses | 8,871,256 | |||||||||
Net paid losses and loss expenses | 4,513,869 | |||||||||
Net reserves for accident years and exposures included in the triangles | 4,357,387 | |||||||||
All outstanding liabilities before accident year 2012, net of reinsurance | 908,806 | |||||||||
Net liability at end of year | 5,266,193 | |||||||||
Total of IBNR plus expected development on reported claims | $ 3,285,195 | |||||||||
Average annual percentage payout of incurred claims by age: | ||||||||||
Year One | 8.00% | |||||||||
Year Two | 14.00% | |||||||||
Year Three | 13.00% | |||||||||
Year Four | 13.00% | |||||||||
Year Five | 11.00% | |||||||||
Year Six | 9.00% | |||||||||
Year Seven | 6.00% | |||||||||
Year Eight | 4.00% | |||||||||
Year Nine | 3.00% | |||||||||
Year Ten | 2.00% | |||||||||
Casualty | 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net incurred losses and loss expenses | $ 670,767 | 677,161 | 682,054 | 696,110 | 702,358 | 698,668 | 710,862 | 769,092 | 856,769 | 706,442 |
Net paid losses and loss expenses | 469,540 | 455,860 | 440,686 | 416,086 | 385,934 | 333,456 | 280,428 | 205,359 | 136,891 | 58,130 |
Total of IBNR plus expected development on reported claims | 0 | |||||||||
Casualty | 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net incurred losses and loss expenses | 724,170 | 728,645 | 747,422 | 757,032 | 761,477 | 763,208 | 784,615 | 880,676 | 748,691 | |
Net paid losses and loss expenses | 576,650 | 550,444 | 524,709 | 481,381 | 419,488 | 345,291 | 263,808 | 159,112 | 56,952 | |
Total of IBNR plus expected development on reported claims | 39,469 | |||||||||
Casualty | 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net incurred losses and loss expenses | 793,629 | 807,750 | 832,104 | 869,438 | 851,144 | 850,550 | 879,144 | 794,186 | ||
Net paid losses and loss expenses | 657,810 | 619,160 | 556,159 | 486,503 | 398,606 | 300,377 | 196,301 | 74,189 | ||
Total of IBNR plus expected development on reported claims | 46,003 | |||||||||
Casualty | 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net incurred losses and loss expenses | 752,036 | 775,384 | 794,732 | 830,644 | 788,933 | 808,679 | 684,702 | |||
Net paid losses and loss expenses | 620,841 | 570,219 | 497,220 | 393,997 | 299,396 | 185,508 | 78,386 | |||
Total of IBNR plus expected development on reported claims | 64,297 | |||||||||
Casualty | 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net incurred losses and loss expenses | 769,283 | 755,605 | 766,754 | 785,448 | 769,492 | 646,045 | ||||
Net paid losses and loss expenses | 539,688 | 471,880 | 383,788 | 252,780 | 144,840 | 29,216 | ||||
Total of IBNR plus expected development on reported claims | 118,811 | |||||||||
Casualty | 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net incurred losses and loss expenses | 736,701 | 729,083 | 738,743 | 748,588 | 594,988 | |||||
Net paid losses and loss expenses | 435,692 | 354,594 | 259,310 | 165,196 | 60,390 | |||||
Total of IBNR plus expected development on reported claims | 154,030 | |||||||||
Casualty | 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net incurred losses and loss expenses | 965,966 | 955,784 | 951,393 | 750,120 | ||||||
Net paid losses and loss expenses | 446,609 | 335,624 | 206,791 | 60,039 | ||||||
Total of IBNR plus expected development on reported claims | 203,571 | |||||||||
Casualty | 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net incurred losses and loss expenses | 1,301,249 | 1,245,536 | 949,925 | |||||||
Net paid losses and loss expenses | 423,814 | 270,727 | 97,723 | |||||||
Total of IBNR plus expected development on reported claims | 458,841 | |||||||||
Casualty | 2020 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net incurred losses and loss expenses | 1,230,847 | 1,301,042 | ||||||||
Net paid losses and loss expenses | 269,206 | 99,909 | ||||||||
Total of IBNR plus expected development on reported claims | 896,066 | |||||||||
Casualty | 2021 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net incurred losses and loss expenses | 926,608 | |||||||||
Net paid losses and loss expenses | 74,019 | |||||||||
Total of IBNR plus expected development on reported claims | 1,304,107 | |||||||||
Specialty | ||||||||||
Claims Development [Line Items] | ||||||||||
Net incurred losses and loss expenses | 12,120,615 | |||||||||
Net paid losses and loss expenses | 9,205,960 | |||||||||
Net reserves for accident years and exposures included in the triangles | 2,914,655 | |||||||||
All outstanding liabilities before accident year 2012, net of reinsurance | 47,797 | |||||||||
Net liability at end of year | 2,962,452 | |||||||||
Total of IBNR plus expected development on reported claims | $ 1,718,104 | |||||||||
Average annual percentage payout of incurred claims by age: | ||||||||||
Year One | 15.00% | |||||||||
Year Two | 41.00% | |||||||||
Year Three | 17.00% | |||||||||
Year Four | 10.00% | |||||||||
Year Five | 4.00% | |||||||||
Year Six | 3.00% | |||||||||
Year Seven | 1.00% | |||||||||
Year Eight | 1.00% | |||||||||
Year Nine | 0.00% | |||||||||
Year Ten | 0.00% | |||||||||
Specialty | 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net incurred losses and loss expenses | $ 1,016,306 | 1,018,285 | 1,025,027 | 1,033,705 | 1,173,474 | 1,278,793 | 1,004,392 | 1,051,075 | 1,112,400 | 944,623 |
Net paid losses and loss expenses | 862,267 | 863,679 | 858,746 | 839,789 | 825,119 | 775,628 | 744,488 | 695,197 | 491,235 | $ 137,099 |
Total of IBNR plus expected development on reported claims | 8,127 | |||||||||
Specialty | 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net incurred losses and loss expenses | 1,108,539 | 1,118,309 | 1,124,609 | 1,118,844 | 1,014,867 | 888,303 | 1,156,291 | 1,233,001 | 1,118,772 | |
Net paid losses and loss expenses | 1,112,092 | 1,111,117 | 1,100,981 | 1,081,253 | 1,052,494 | 1,008,673 | 923,499 | 784,584 | $ 139,725 | |
Total of IBNR plus expected development on reported claims | 5,730 | |||||||||
Specialty | 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net incurred losses and loss expenses | 1,140,526 | 1,141,250 | 1,148,736 | 1,152,048 | 1,154,248 | 1,161,715 | 1,227,176 | 1,156,978 | ||
Net paid losses and loss expenses | 1,088,684 | 1,080,620 | 1,067,702 | 1,039,677 | 997,735 | 903,055 | 771,432 | $ 167,171 | ||
Total of IBNR plus expected development on reported claims | 18,699 | |||||||||
Specialty | 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net incurred losses and loss expenses | 1,130,664 | 1,133,431 | 1,155,442 | 1,142,859 | 1,148,710 | 1,166,611 | 1,120,785 | |||
Net paid losses and loss expenses | 1,057,449 | 1,040,511 | 1,010,984 | 964,938 | 853,969 | 659,506 | $ 155,481 | |||
Total of IBNR plus expected development on reported claims | 15,429 | |||||||||
Specialty | 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net incurred losses and loss expenses | 1,117,821 | 1,118,399 | 1,125,812 | 1,113,201 | 1,121,657 | 1,067,423 | ||||
Net paid losses and loss expenses | 1,030,088 | 1,013,592 | 978,488 | 867,043 | 698,011 | $ 160,799 | ||||
Total of IBNR plus expected development on reported claims | 35,263 | |||||||||
Specialty | 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net incurred losses and loss expenses | 1,113,588 | 1,097,970 | 1,099,481 | 1,082,476 | 930,519 | |||||
Net paid losses and loss expenses | 951,561 | 913,676 | 764,727 | 567,476 | $ 120,841 | |||||
Total of IBNR plus expected development on reported claims | 61,689 | |||||||||
Specialty | 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net incurred losses and loss expenses | 1,343,959 | 1,320,008 | 1,280,602 | 972,227 | ||||||
Net paid losses and loss expenses | 1,095,922 | 928,684 | 613,506 | $ 138,033 | ||||||
Total of IBNR plus expected development on reported claims | 101,868 | |||||||||
Specialty | 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net incurred losses and loss expenses | 1,574,626 | 1,542,475 | 1,157,576 | |||||||
Net paid losses and loss expenses | 1,141,274 | 846,033 | $ 266,746 | |||||||
Total of IBNR plus expected development on reported claims | 266,686 | |||||||||
Specialty | 2020 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net incurred losses and loss expenses | 1,472,672 | 1,538,395 | ||||||||
Net paid losses and loss expenses | 639,211 | $ 244,569 | ||||||||
Total of IBNR plus expected development on reported claims | 560,841 | |||||||||
Specialty | 2021 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net incurred losses and loss expenses | 1,101,914 | |||||||||
Net paid losses and loss expenses | 227,412 | |||||||||
Total of IBNR plus expected development on reported claims | $ 643,772 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||
Reinsurance recoverable on paid and unpaid losses | $ 1,787,493 | $ 901,063 | |||
Gross liability at end of year | 12,047,792 | 11,395,321 | |||
Non Life | |||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||
Total outstanding liability for unpaid claims | 10,154,017 | ||||
Other liabilities | 361,109 | ||||
Net liability at end of year | 10,515,126 | 10,612,991 | $ 9,608,588 | $ 9,044,430 | |
Reinsurance recoverable on paid and unpaid losses | 1,532,666 | 782,330 | 754,795 | 850,946 | |
Gross liability at end of year | 12,047,792 | $ 11,395,321 | $ 10,363,383 | $ 9,895,376 | |
Non Life | Unallocated loss expenses | |||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||
Other liabilities | 187,139 | ||||
Non Life | US Health net reserves | |||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||
Other liabilities | [1] | 170,617 | |||
Non Life | Other | |||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||
Other liabilities | 3,353 | ||||
Non Life | Property | |||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||
Total outstanding liability for unpaid claims | 1,925,372 | ||||
Reinsurance recoverable on paid and unpaid losses | 708,008 | ||||
Non Life | Casualty | |||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||
Total outstanding liability for unpaid claims | 5,266,193 | ||||
Reinsurance recoverable on paid and unpaid losses | 519,597 | ||||
Non Life | Specialty | |||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||
Total outstanding liability for unpaid claims | 2,962,452 | ||||
Reinsurance recoverable on paid and unpaid losses | $ 305,061 | ||||
[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, 2021 | Dec. 31, 2020 |
Reinsurance Disclosures [Abstract] | ||
Allowance for credit loss on reinsurance recoverable | $ 3 | $ 3 |
Reinsurance (Details)
Reinsurance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Premiums Written, Net [Abstract] | |||||
Gross premiums written | $ 8,203,925 | $ 6,875,925 | $ 7,285,320 | ||
Ceded Premiums Written | 1,069,907 | 575,067 | 376,262 | ||
Net premiums written | 7,134,018 | 6,300,858 | 6,909,058 | ||
Premiums Earned, Net [Abstract] | |||||
Assumed from other companies | 7,925,903 | 7,077,020 | 6,923,078 | ||
Ceded to other companies | 969,381 | 540,194 | 397,860 | ||
Net premiums earned | 6,956,522 | 6,536,826 | 6,525,218 | ||
Loss and Loss Expenses and Life Policy Benefits | |||||
Assumed losses and loss expenses | 5,666,530 | 5,703,092 | 5,156,926 | ||
Ceded losses and loss expenses | 782,546 | 368,192 | 233,770 | ||
Losses and loss expenses | 4,883,984 | 5,334,900 | 4,923,156 | ||
Reinsurance recoverable on paid and unpaid losses | 1,787,493 | 901,063 | |||
Affiliated Entity | Lorenz Re | |||||
Premiums Written, Net [Abstract] | |||||
Ceded Premiums Written | 634,000 | 81,000 | 70,000 | ||
Loss and Loss Expenses and Life Policy Benefits | |||||
Reinsurance recoverable on paid and unpaid losses | 592,000 | 117,000 | |||
Non Life | |||||
Premiums Written, Net [Abstract] | |||||
Gross premiums written | 6,557,055 | 5,376,703 | 5,792,542 | [1] | |
Ceded Premiums Written | 1,046,227 | 550,784 | 353,735 | [1] | |
Net premiums written | 5,510,828 | 4,825,919 | 5,438,807 | [1] | |
Premiums Earned, Net [Abstract] | |||||
Assumed from other companies | 6,274,418 | 5,571,201 | 5,433,357 | [1] | |
Ceded to other companies | 944,862 | 516,672 | 375,301 | [1] | |
Net premiums earned | 5,329,556 | 5,054,529 | 5,058,056 | [1] | |
Loss and Loss Expenses and Life Policy Benefits | |||||
Assumed losses and loss expenses | 4,212,465 | 4,358,975 | 3,879,242 | [1] | |
Ceded losses and loss expenses | 769,220 | 342,271 | 219,102 | [1] | |
Losses and loss expenses | 3,443,245 | 4,016,704 | 3,660,140 | [1] | |
Reinsurance recoverable on paid and unpaid losses | 1,532,666 | 782,330 | 754,795 | $ 850,946 | |
Life and Health | |||||
Premiums Written, Net [Abstract] | |||||
Gross premiums written | 1,646,870 | 1,499,222 | 1,492,778 | ||
Ceded Premiums Written | 23,680 | 24,283 | 22,527 | ||
Net premiums written | 1,623,190 | 1,474,939 | 1,470,251 | ||
Premiums Earned, Net [Abstract] | |||||
Assumed from other companies | 1,651,485 | 1,505,819 | 1,489,721 | ||
Ceded to other companies | 24,519 | 23,522 | 22,559 | ||
Net premiums earned | 1,626,966 | 1,482,297 | 1,467,162 | ||
Loss and Loss Expenses and Life Policy Benefits | |||||
Assumed losses and loss expenses | 1,454,065 | 1,344,117 | 1,277,684 | ||
Ceded losses and loss expenses | 13,326 | 25,921 | 14,668 | ||
Losses and loss expenses | 1,440,739 | 1,318,196 | 1,263,016 | ||
Reinsurance recoverable on paid and unpaid losses | $ 21,000 | $ 35,662 | $ 16,183 | $ 11,829 | |
[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 Millions | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Sep. 30, 2016EUR (€) | Nov. 30, 2006USD ($) |
Debt Instrument [Line Items] | ||||||
Debt | $ 1,897,499 | $ 1,974,731 | ||||
Fair Value | ||||||
Debt Instrument [Line Items] | ||||||
Debt | 2,024,995 | 2,156,107 | ||||
Carrying Value | ||||||
Debt Instrument [Line Items] | ||||||
Debt | 1,897,499 | 1,974,731 | ||||
Senior Notes | 3.7% notes maturing 2029 Issued By PartnerRe Finance B LLC | ||||||
Debt Instrument [Line Items] | ||||||
Commitment | $ 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 | 561,099 | 586,057 | ||||
Senior Notes | 3.7% notes maturing 2029 Issued By PartnerRe Finance B LLC | Carrying Value | ||||||
Debt Instrument [Line Items] | ||||||
Debt related to senior notes | 496,620 | 496,168 | ||||
2016 Euro Senior Notes | Notes Issued By PartnerRe Ireland Finance DAC | ||||||
Debt Instrument [Line Items] | ||||||
Commitment | € | € 750 | |||||
2016 Euro Senior Notes | Notes Issued By PartnerRe Ireland Finance DAC | Fair Value | ||||||
Debt Instrument [Line Items] | ||||||
Debt related to senior notes | 882,126 | 985,352 | ||||
2016 Euro Senior Notes | Notes Issued By PartnerRe Ireland Finance DAC | Carrying Value | ||||||
Debt Instrument [Line Items] | ||||||
Debt related to senior notes | 843,950 | 914,223 | ||||
Junior Subordinated Debt [Member] | Notes Issued By PartnerRe Finance B LLC | ||||||
Debt Instrument [Line Items] | ||||||
Commitment | $ 500,000 | |||||
Junior Subordinated Debt [Member] | Notes Issued By PartnerRe Finance B LLC | Fair Value | ||||||
Debt Instrument [Line Items] | ||||||
Junior Subordinated Notes | 526,522 | 523,685 | ||||
Junior Subordinated Debt [Member] | Notes Issued By PartnerRe Finance B LLC | Carrying Value | ||||||
Debt Instrument [Line Items] | ||||||
Junior Subordinated Notes | 494,445 | 494,251 | ||||
Junior Subordinated Debt [Member] | Notes Issued By PartnerRe Finance II Inc | ||||||
Debt Instrument [Line Items] | ||||||
Commitment | 62,484 | 62,000 | $ 250,000 | |||
Junior Subordinated Debt [Member] | Notes Issued By PartnerRe Finance II Inc | Fair Value | ||||||
Debt Instrument [Line Items] | ||||||
Junior Subordinated Notes | 55,248 | 61,013 | ||||
Junior Subordinated Debt [Member] | Notes Issued By PartnerRe Finance II Inc | Carrying Value | ||||||
Debt Instrument [Line Items] | ||||||
Junior Subordinated Notes | $ 62,484 | $ 70,089 |
Debt - Narrative (Details)
Debt - Narrative (Details) $ in Thousands, € in Millions | Jul. 19, 2019USD ($) | Jun. 06, 2019USD ($) | Mar. 13, 2009USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Sep. 30, 2016EUR (€) | Mar. 31, 2010USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Nov. 30, 2006USD ($) |
Debt Instrument [Line Items] | |||||||||||
Loss on redemption of debt | $ 0 | $ 0 | $ (15,175) | ||||||||
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 | ||||||||||
Stated interest rate of debt instrument | 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 | ||||||||||
2016 Euro Senior Notes | Notes Issued By PartnerRe Ireland Finance DAC | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Commitment | € | € 750 | ||||||||||
Stated interest rate of debt instrument | 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 | ||||||||||
Junior Subordinated Debt [Member] | Notes Issued By PartnerRe Finance B LLC | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Commitment | $ 500,000 | ||||||||||
Stated interest rate of debt instrument | 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 | ||||||||||
Proceeds from issuance of subordinated debt | $ 494,000 | ||||||||||
Junior Subordinated Debt [Member] | 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 | ||||||||||
Spread on variable rate (as a percent) | 3.815% | ||||||||||
Junior Subordinated Debt [Member] | 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% | ||||||||||
Junior Subordinated Debt [Member] | 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 | ||||||||||
Junior Subordinated Debt [Member] | 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% | ||||||||||
Payment frequency | semi-annually | ||||||||||
Junior Subordinated Debt [Member] | 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 | ||||||||||
Spread on variable rate (as a percent) | 2.325% | ||||||||||
Junior Subordinated Debt [Member] | Notes Issued To Partner Re Finance II Inc | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Commitment | $ 258,000 | ||||||||||
Amount of debt extinguished | $ 1,000 | $ 187,000 | |||||||||
Maturity date range end | Dec. 1, 2066 | ||||||||||
Carrying amount at balance sheet date | $ 70,000 | $ 70,000 | |||||||||
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, 2021 | Dec. 31, 2020 |
Class of Stock [Line Items] | ||
Common shares, shares issued | 100,000,000 | 100,000,000 |
Common shares, par value | $ 0.00 | $ 0.00 |
Authorized Shares | ||
Authorized Share Capital Value | $ 200 | $ 200 |
Class A shares | ||
Class of Stock [Line Items] | ||
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 | May 03, 2021 | Mar. 15, 2021 | Oct. 22, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Class of Stock [Line Items] | |||||||
Preferred shares, par value per share | $ 1 | $ 1 | |||||
Preferred shares, shares outstanding | 8,000,000 | 25,489,636 | |||||
Underwriting discounts and commissions | $ 21,000 | $ 21,300 | [1] | ||||
Aggregate liquidation preference | 637,000 | $ 200,000 | $ 637,241 | ||||
Accrued dividends at redemption | $ 7,000 | ||||||
Series J Preferred Stock | |||||||
Class of Stock [Line Items] | |||||||
Preferred shares, par value per share | $ 1 | $ 1 | |||||
Preferred shares, shares outstanding | 8,000,000 | ||||||
Shares issued during the period (in shares) | 8,000,000 | ||||||
Annual dividend rate | 4.875% | 4.875% | |||||
Underwriting discounts and commissions | $ 6,000 | $ 6,100 | |||||
Aggregate liquidation preference | $ 200,000 | $ 200,000 | |||||
Liquidation preference per share | $ 25 | ||||||
Preferred shares, redemption price per share (in dollars per share) | $ 25 | ||||||
Preferred Stock, Call or Exercise Features | March 15, 2026 | ||||||
Series G 6.5% cumulative | |||||||
Class of Stock [Line Items] | |||||||
Preferred shares, par value per share | $ 1 | ||||||
Preferred shares, shares outstanding | 6,415,264 | ||||||
Annual dividend rate | 6.50% | ||||||
Underwriting discounts and commissions | [1] | $ 5,400 | |||||
Aggregate liquidation preference | $ 160,400 | ||||||
Preferred shares, redemption price per share (in dollars per share) | $ 25 | ||||||
Preferred Stock, Redemption Date | May 3, 2021 | ||||||
Series H 7.25% cumulative | |||||||
Class of Stock [Line Items] | |||||||
Preferred shares, par value per share | $ 1 | ||||||
Preferred shares, shares outstanding | 11,753,798 | ||||||
Annual dividend rate | 7.25% | ||||||
Underwriting discounts and commissions | [1] | $ 9,500 | |||||
Aggregate liquidation preference | $ 293,800 | ||||||
Preferred shares, redemption price per share (in dollars per share) | $ 25 | ||||||
Preferred Stock, Redemption Date | May 3, 2021 | ||||||
Series I 5.875% non-cumulative | |||||||
Class of Stock [Line Items] | |||||||
Preferred shares, par value per share | $ 1 | ||||||
Preferred shares, shares outstanding | 7,320,574 | ||||||
Annual dividend rate | 5.875% | ||||||
Underwriting discounts and commissions | [1] | $ 6,400 | |||||
Aggregate liquidation preference | $ 183,000 | ||||||
Preferred shares, redemption price per share (in dollars per share) | $ 25 | ||||||
Preferred Stock, Redemption Date | May 3, 2021 | ||||||
Series F 5.875% non-cumulative | |||||||
Class of Stock [Line Items] | |||||||
Underwriting discounts and commissions | $ 2,000 | ||||||
Aggregate liquidation preference | $ 67,000 | ||||||
Preferred shares, redemption price per share (in dollars per share) | $ 25 | ||||||
Preferred Stock, Redemption Date | Oct. 22, 2020 | ||||||
Shares redeemed during the period (in shares) | 2,679,426 | ||||||
Accrued dividends at redemption | $ 1,000 | ||||||
[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 series G, H and I shares as a result of the share exchange in May 2016 for $nil consideration |
Dividend Restrictions and Sta_3
Dividend Restrictions and Statutory Requirements (Details) $ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2021SGD ($) | |
PartnerRe Bermuda | ||||
Statutory Accounting Practices [Line Items] | ||||
Minimum required liquidity ratio (as a percent) | 75.00% | 75.00% | ||
Percentage of statutory capital and surplus requirement for payment of dividends | 120.00% | 120.00% | ||
Amount available for dividends without regulatory approval | $ 805 | |||
Statutory net income (loss) | 900 | $ (52) | $ 863 | |
Required statutory capital and surplus | 2,751 | 2,359 | ||
Actual statutory capital and surplus | 6,022 | 5,070 | ||
PartnerRe Europe | ||||
Statutory Accounting Practices [Line Items] | ||||
Statutory net income (loss) | 28 | 237 | 188 | |
Required statutory capital and surplus | 1,873 | 1,618 | ||
Actual statutory capital and surplus | $ 2,744 | 2,417 | ||
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) | $ 68 | 28 | (106) | |
Required statutory capital and surplus | 1,244 | 1,080 | ||
Actual statutory capital and surplus | $ 1,369 | 1,169 | ||
PartnerRe Asia | ||||
Statutory Accounting Practices [Line Items] | ||||
Percentage of basic capital requirement for payment of dividends | 120.00% | 120.00% | ||
Statutory net income (loss) | $ (22) | (2) | $ 17 | |
Required statutory capital and surplus | 50 | 48 | $ 25 | |
Actual statutory capital and surplus | $ 233 | $ 253 |
Taxation - Components of income
Taxation - Components of income tax expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current income tax expense | |||
Current income tax expense (benefit) | $ 49,509 | $ (52,391) | $ 76,968 |
Deferred income tax expense (benefit) | |||
Deferred income tax (benefit) expense | (11,091) | 35,372 | (21,582) |
Unrecognized tax expense (benefit) | |||
Unrecognized tax (benefit) expense | (199) | 3,928 | (2,850) |
Total income tax expense | |||
Total income tax expense (benefit) | 38,219 | (13,091) | 52,536 |
Income before taxes by jurisdiction | |||
Domestic (Bermuda) | 636,043 | 3,894 | 715,912 |
Foreign | 125,580 | 237,204 | 273,372 |
Income before taxes | 761,623 | 241,098 | 989,284 |
US | |||
Current income tax expense | |||
Current income tax expense (benefit) | 31,216 | (97,155) | 12,899 |
Deferred income tax expense (benefit) | |||
Deferred income tax (benefit) expense | (9,404) | 60,932 | (25,850) |
Unrecognized tax expense (benefit) | |||
Unrecognized tax (benefit) expense | 0 | 0 | 0 |
Total income tax expense | |||
Total income tax expense (benefit) | 21,812 | (36,223) | (12,951) |
Non-US | |||
Current income tax expense | |||
Current income tax expense (benefit) | 18,293 | 44,764 | 64,069 |
Deferred income tax expense (benefit) | |||
Deferred income tax (benefit) expense | (1,687) | (25,560) | 4,268 |
Unrecognized tax expense (benefit) | |||
Unrecognized tax (benefit) expense | (199) | 3,928 | (2,850) |
Total income tax expense | |||
Total income tax expense (benefit) | $ 16,407 | $ 23,132 | $ 65,487 |
Taxation - Reconciliation of ef
Taxation - Reconciliation of effective tax rate (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
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 | 5.70% | 15.50% | 6.50% |
Impact of foreign exchange gains or losses | (0.10%) | (8.10%) | (0.50%) |
Unrecognized tax expense (benefit) | 0.00% | 1.60% | 0.20% |
Tax-exempt income and expenses not deductible | (0.40%) | (1.40%) | (0.60%) |
Foreign branch tax | 0.10% | (3.30%) | (1.20%) |
Valuation allowance | 0.60% | 3.40% | 0.70% |
Other | (0.90%) | (13.10%) | 0.20% |
Actual tax rate | 5.00% | (5.40%) | 5.30% |
Taxation - Components of net ta
Taxation - Components of net tax assets and liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Components Of Net Tax Assets And Liabilities [Abstract] | ||||
Net tax assets | $ 154,472 | $ 182,077 | ||
Net tax liabilities | (90,974) | (131,621) | ||
Net tax assets | 63,498 | 50,456 | ||
Net Tax Liabilities By Type [Abstract] | ||||
Net current tax assets | 117,872 | 112,992 | ||
Net deferred tax liabilities | (45,098) | (52,263) | ||
Net unrecognized tax benefit | (9,276) | (10,273) | $ (5,689) | $ (8,743) |
Net tax assets | $ 63,498 | $ 50,456 |
Taxation - Components of tax as
Taxation - Components of tax assets and tax liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets | ||
Discounting of loss reserves and adjustment to life policy reserves | $ 18,340 | $ 11,741 |
Foreign tax credit carryforwards | 180,510 | 198,263 |
Tax loss carryforwards | 106,555 | 57,485 |
Unearned premiums | 36,421 | 34,760 |
Statutory basis funds held | 58,899 | 0 |
Unrealized appreciation and timing differences on foreign exchange revaluations | 3,838 | 20,493 |
Other deferred tax assets | 47,034 | 42,754 |
Deferred tax assets before valuation allowance | 451,597 | 365,496 |
Valuation allowance | (211,798) | (211,167) |
Deferred tax assets | 239,799 | 154,329 |
Deferred tax liabilities | ||
Deferred acquisition costs | 75,924 | 67,850 |
Goodwill and other intangibles | 56,870 | 58,224 |
Statutory basis reserves | 114,240 | 0 |
Equalization reserves | 7,192 | 7,366 |
Unrealized appreciation and timing differences on investments | 4,877 | 46,389 |
Other deferred tax liabilities | 25,794 | 26,763 |
Deferred tax liabilities | 284,897 | 206,592 |
Net deferred tax liabilities | $ (45,098) | $ (52,263) |
Taxation - Income tax uncertain
Taxation - Income tax uncertainties (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Unrecognized tax benefits, rollforward | |||
January 1 | $ 10,273 | $ 5,689 | $ 8,743 |
Changes in tax positions taken during a prior period - increase | 3,870 | ||
Changes in tax positions taken during a prior period - decrease | (199) | (4,229) | |
Tax positions taken during the current period - increase | 0 | 0 | 1,379 |
Impact of change in foreign currency exchange rates - Increase | 714 | ||
Impact of change in foreign currency exchange rates - Decrease | (798) | (204) | |
December 31 | 9,276 | 10,273 | 5,689 |
Unrecognized tax benefits impacting effective tax rate | $ 0 | $ 0 | $ 0 |
Taxation - Narrative (Details)
Taxation - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Taxation - Other Details [Line Items] | |||
Expected tax rate | 0.00% | 0.00% | 0.00% |
Valuation allowance on deferred tax assets | $ 211,798 | $ 211,167 | |
Amount of unrecognized tax benefit expected to reverse within 12 months | $ 3,000 | ||
Other | (0.90%) | (13.10%) | 0.20% |
Ireland | |||
Taxation - Other Details [Line Items] | |||
Valuation allowance of foreign tax credit carryforwards | $ 181,000 | $ 198,000 | |
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 | 19,000 | 23,000 | |
US | |||
Taxation - Other Details [Line Items] | |||
Income tax benefit resulting from reduction in corporate tax rate | 35,000 | ||
Valuation allowance on deferred tax assets | 13,000 | $ 7,000 | |
Deferred tax asset on tax loss carryforwards | 44,000 | ||
Other | 14.40% | ||
Canada | |||
Taxation - Other Details [Line Items] | |||
Valuation allowance on deferred tax assets | 6,000 | $ 3,000 | |
Deferred tax asset on tax loss carryforwards | 5,000 | ||
United Kingdom | |||
Taxation - Other Details [Line Items] | |||
Valuation allowance on deferred tax assets | 12,000 | 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 | ||
Deferred tax asset on tax loss carryforwards | $ 6,000 | ||
Change in enacted tax rate, impact on effective tax rate | 0.60% |
Share-Based Incentives rollforw
Share-Based Incentives rollforward (Details) - shares | 12 Months Ended | |||
Dec. 31, 2021 | 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 | 274,664 | 281,768 | 345,644 | |
Granted | 167,202 | 117,929 | ||
Purchased | 38,838 | 18,875 | ||
Repurchased | (52,005) | (213,144) | (200,680) | |
Net expirations and exercises | 0 | 0 | ||
Shares outstanding, end of year | 222,659 | 274,664 | 281,768 | |
Common Class C | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares outstanding, beginning of year | 0 | |||
Granted | 7,373 | |||
Purchased | 2,072 | |||
Shares outstanding, end of year | 9,445 | 0 | ||
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares outstanding, beginning of year | 0 | |||
Granted | [1] | 263,214 | ||
Shares outstanding, end of year | 263,214 | 0 | ||
Restricted Shares | Class B Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares outstanding, beginning of year | 189,166 | 179,332 | 161,810 | |
Granted | 167,202 | 117,929 | ||
Purchased | 0 | 0 | ||
Repurchased | (29,048) | (129,583) | (100,407) | |
Expiration of restricted period | (20,298) | (27,785) | ||
Shares outstanding, end of year | 139,820 | 189,166 | 179,332 | |
Restricted Shares | Common Class C | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares outstanding, beginning of year | 0 | |||
Granted | 7,373 | |||
Purchased | 0 | |||
Shares outstanding, end of year | 7,373 | 0 | ||
Unrestricted shares | Class B Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares outstanding, beginning of year | 85,498 | 102,436 | 183,834 | |
Granted | 0 | 0 | ||
Purchased | 38,838 | 18,875 | ||
Repurchased | (22,957) | (83,561) | (100,273) | |
Exercised | 20,298 | 27,785 | ||
Shares outstanding, end of year | 82,839 | 85,498 | 102,436 | |
Unrestricted shares | Common Class C | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares outstanding, beginning of year | 0 | |||
Granted | 0 | |||
Purchased | 2,072 | |||
Shares outstanding, end of year | 2,072 | 0 | ||
[1] | For RSUs, the number of grants in the table are shown at the maximum number that can be attained if the performance conditions are fully met for personal and Company performance. |
Share-Based Incentives Narrativ
Share-Based Incentives Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price of share based awards | $ 0 | |||
Requisite service period, Class B shares | 3 years | |||
Accounts payable, accrued expenses and other | $ 560,561 | $ 612,069 | ||
Redemption of unrestricted Class B common shares (1) | [1] | 581 | 5,157 | $ 6,540 |
Class B Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Redemption of unrestricted Class B common shares (1) | $ 3,000 | 11,000 | ||
Common Class C,B and RSU stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shared Based Compensation, Minimum Multiplier of Target Value | 200.00% | |||
Share based compensation expense | $ 13,000 | 11,000 | $ 10,000 | |
Accounts payable, accrued expenses and other | $ 24,000 | $ 15,000 | ||
Restricted Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance period | 1 year | |||
Restricted Shares | Minimum | Personal Performance | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance target percentage | 75.00% | |||
Restricted Shares | Minimum | Company performance | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance target percentage | 50.00% | |||
Restricted Shares | Maximum | Personal Performance | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance target percentage | 125.00% | |||
Restricted Shares | Maximum | Company performance | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance target percentage | 150.00% | |||
Restricted Shares | Class B Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Requisite service period, Class B shares | 3 years | |||
[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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
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 | 62,050 | 44,442 | ||
Change in pension obligation: | ||||
Service cost | 11,811 | 10,961 | ||
Interest cost | 228 | 520 | ||
Plan participants’ contributions | 4,048 | 4,056 | ||
Actuarial (gain) loss | (24,211) | 12,023 | ||
Benefits paid | (1,651) | (3,910) | ||
Foreign currency adjustments | (8,735) | 20,550 | ||
Settlements | (20,682) | 0 | ||
Change in pension obligation | (39,192) | 44,200 | ||
Change in fair value of plan assets: | ||||
Actual return on plan assets | 6,847 | 2,820 | ||
Employer contributions | 8,035 | 7,941 | ||
Plan participants’ contributions | 4,048 | 4,056 | ||
Benefits paid | (1,651) | (3,910) | ||
Foreign currency adjustments | (6,375) | 15,685 | ||
Settlements | (20,682) | 0 | ||
Change in fair value of plan assets | (9,778) | 26,592 | ||
Funded status: | ||||
Unfunded pension obligation at end of year | 32,636 | 62,050 | $ 44,442 | |
Additional information: | ||||
Projected benefit obligation at end of year | [1] | 202,920 | 242,112 | |
Accumulated pension obligation at end of year | [2] | $ 194,730 | $ 231,419 | |
Pension obligation - assumptions used | ||||
Discount rate | 0.20% | 0.10% | 0.25% | |
Interest crediting rate | 1.00% | 1.00% | 1.00% | |
Rate of compensation increase | 2.00% | 2.00% | 2.00% | |
Net periodic benefit cost - assumptions used | ||||
Discount rate | 0.10% | 0.25% | 1.00% | |
Interest crediting rate | 1.00% | 1.00% | 1.00% | |
Expected return on plan assets | 3.50% | 3.50% | 3.50% | |
Rate of compensation increase | 2.00% | 2.00% | 2.00% | |
Defined Benefit Plan Estimated Future Benefit Payments Abstract | ||||
2022 | $ 8,578 | |||
2023 | 9,219 | |||
2024 | 8,838 | |||
2025 | 9,824 | |||
2026 | 11,457 | |||
2027 to 2031 | 49,075 | |||
Significant other observable inputs (Level 2) | Insured funds | Zurich Plan | ||||
Additional information: | ||||
Fair value of plan assets at end of year | $ 170,284 | $ 180,062 | ||
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Incurred expense for defined contribution arrangements | $ 13,000 | $ 13,000 | $ 13,000 |
Maximum | |||
Additional information: | |||
Defined Contribution Plans, Accumulated Benefits, Vesting Period | 4 years | ||
Zurich Plan | |||
Additional information: | |||
Unfunded pension obligation | $ (32,636) | (62,050) | (44,442) |
Amounts recognized in AOCI | 7,000 | 30,000 | |
Unfunded pension obligation, tax impact | 2,000 | 8,000 | |
Net periodic benefit cost | 8,000 | $ 5,000 | 5,000 |
Expected employer contributions in 2022 | $ 8,000 | ||
Coverage ration on partially insured pension scheme | 115.00% | 112.00% | |
Actual return on plan assets | $ 6,847 | $ 2,820 | |
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) | (39,192) | 44,200 | |
Foreign currency adjustments | (8,735) | 20,550 | |
Foreign currency adjustments | (6,375) | 15,685 | |
Employer contributions | 8,035 | 7,941 | |
Change in fair value of plan assets | (9,778) | 26,592 | |
Settlements | 20,682 | 0 | |
Zurich Plan | Significant other observable inputs (Level 2) | Insured funds | |||
Additional information: | |||
Fair value of plan assets at end of year | $ 170,284 | $ 180,062 |
Commitments and Contingencies -
Commitments and Contingencies - Concentrations of Credit Risk (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Concentration Risk [Line Items] | ||
Provision for uncollectible premiums receivable | $ 10 | $ 9 |
Funds Held under Reinsurance Agreements, Allowance for Credit loss | 4 | 7 |
Deposit contracts, allowance for credit loss | $ 1 | 2 |
Fixed maturities | Canadian goverment | ||
Concentration Risk [Line Items] | ||
Fair Value, Concentration of Risk, Investments | $ 776 |
Commitments and Contingencies_2
Commitments and Contingencies - Lease Arrangements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
Commitments and Contingencies Disclosure [Abstract] | |||
Operating lease costs | $ 14,928 | $ 16,403 | |
Variable lease costs | 904 | 724 | |
Sublease Income | 368 | 1,194 | |
Total lease costs | 15,464 | 15,933 | |
Operating lease right-of-use assets | 75,010 | [1] | 64,746 |
Operating lease right-of-use assets obtained in exchange for lease obligations, non-cash | 26,553 | 852 | |
Operating cash outflows from operating leases | $ 16,874 | $ 16,495 | |
Weighted-average remaining lease term on operating leases | 8 years 10 months 24 days | [2] | 9 years 1 month 6 days |
Weighted-average discount rate on operating leases | 2.40% | [3] | 2.70% |
Right-of-use asset, balance sheet location | Other assets | Other assets | |
Operating lease liability, balance sheet location | Accounts payable, accrued expenses and other | Accounts payable, accrued expenses and other | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2022 | $ 13,453 | ||
2023 | 12,834 | ||
2024 | 14,452 | ||
2025 | 11,586 | ||
2026 | 10,751 | ||
2027 to 2038 | 34,104 | ||
Discount | (11,718) | ||
Total discounted operating lease liabilities | 85,462 | [4] | $ 75,463 |
Lease commitments | $ 4,000 | ||
Leases not yet commenced, term of contract | 8 years | ||
[1] | Included in Other assets | ||
[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) $ in Millions | Dec. 31, 2021USD ($) |
Investment commitments | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
2022 | $ 335 |
2023 | 130 |
2024 | 106 |
2025 | 25 |
2026 | 91 |
Total | 687 |
Technology support and equipment | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
2022 | 19 |
2023 | 7 |
Total | $ 34 |
Credit Agreements (Details)
Credit Agreements (Details) $ in Millions | Dec. 31, 2021USD ($) |
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 |
Committed Secured Letter Of Credit Facility B [Member] | |
Line of Credit Facility [Line Items] | |
Total amount of credit facilities available | 100 |
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 | $ 441 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2017 | Dec. 31, 2016 | |
Exor N.V. | |||||
Related Party Transaction [Line Items] | |||||
Related Party Advisory Services Agreement | $ 350 | $ 500 | $ 500 | ||
Exor N.V. | Real estate services | |||||
Related Party Transaction [Line Items] | |||||
Related Party Consulting Services Agreement | 433 | 310 | 221 | ||
Exor N.V. | Investment advisory services | |||||
Related Party Transaction [Line Items] | |||||
Related Party Consulting Services Agreement | 2,600 | ||||
Related Party Advisory Services Agreement | 175 | 259 | 254 | ||
Exor N.V. | Private equity funds | |||||
Related Party Transaction [Line Items] | |||||
Investment carrying value | 468,000 | ||||
Net realized and unrealized gain (loss) on related party investment | 115,000 | ||||
Exor N.V. | Other invested assets | |||||
Related Party Transaction [Line Items] | |||||
Investment carrying value | 51,000 | ||||
Transaction amount | 51,000 | ||||
Exor N.V. | Equity funds | |||||
Related Party Transaction [Line Items] | |||||
Investment carrying value | 1,154,000 | 1,039,000 | |||
Payments to acquire investments | $ 500,000 | ||||
Net realized and unrealized gain (loss) on related party investment | 115,000 | 91,000 | 385,000 | ||
Almacantar | Almacantar Group S.A. | |||||
Related Party Transaction [Line Items] | |||||
Ownership percentage | 36.00% | ||||
Retained earnings | |||||
Related Party Transaction [Line Items] | |||||
Dividends on common shares | $ 106,667 | $ 50,000 | $ 199,386 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) - 12 months ended Dec. 31, 2021 | 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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Segment Reporting [Line Items] | |||||
Gross premiums written | $ 8,203,925 | $ 6,875,925 | $ 7,285,320 | ||
Net premiums written | 7,134,018 | 6,300,858 | 6,909,058 | ||
(Increase) decrease in unearned premiums | (177,496) | 235,968 | (383,840) | ||
Net premiums earned | 6,956,522 | 6,536,826 | 6,525,218 | ||
Losses and loss expenses | (4,884,000) | (5,335,000) | (4,923,000) | ||
Acquisition costs | (1,386,832) | (1,356,118) | (1,455,462) | ||
Technical result | 686,000 | (154,000) | 147,000 | ||
Other income | 28,748 | 13,491 | 15,321 | ||
Other expenses | (398,542) | (355,647) | (369,969) | ||
Underwriting result | 316,000 | (497,000) | (208,000) | ||
Net investment income | 376,469 | 360,668 | 448,538 | ||
Net realized and unrealized investment gains | 37,797 | 454,319 | 886,670 | ||
Interest expense | (55,606) | (39,200) | (40,150) | ||
Loss on redemption of debt | 0 | 0 | (15,175) | ||
Amortization of intangible assets | (8,861) | (9,988) | (11,434) | ||
Net foreign exchange (gains) losses | (30,883) | (51,964) | (86,760) | ||
Income tax expense (benefit) | (38,219) | 13,091 | (52,536) | ||
Interest in earnings of equity method investments | 126,795 | 23,611 | 15,643 | ||
Net income | 723,404 | 254,189 | 936,748 | ||
Non Life | |||||
Segment Reporting [Line Items] | |||||
Gross premiums written | 6,557,055 | 5,376,703 | 5,792,542 | [1] | |
Net premiums written | 5,510,828 | 4,825,919 | 5,438,807 | [1] | |
(Increase) decrease in unearned premiums | (181,000) | 229,000 | (381,000) | ||
Net premiums earned | 5,329,556 | 5,054,529 | 5,058,056 | [1] | |
Losses and loss expenses | (3,443,000) | (4,017,000) | (3,663,000) | ||
Acquisition costs | (1,279,000) | (1,254,000) | (1,306,000) | ||
Technical result | 608,000 | (216,000) | 89,000 | ||
Other income | 0 | (1,000) | (1,000) | ||
Other expenses | (101,000) | (87,000) | (108,000) | ||
Underwriting result | $ 507,000 | $ (304,000) | $ (20,000) | ||
Reinsurance Ratios [Abstract] | |||||
Loss ratio | [2] | 64.60% | 79.50% | 72.40% | |
Acquisition ratio | [3] | 24.00% | 24.80% | 25.80% | |
Technical ratio | [4] | 88.60% | 104.30% | 98.20% | |
Other expense ratio | [5] | 1.90% | 1.70% | 2.10% | |
Combined Ratio | [6] | 90.50% | 106.00% | 100.30% | |
Non Life | P&C | |||||
Segment Reporting [Line Items] | |||||
Gross premiums written | $ 4,541,000 | $ 3,442,000 | $ 3,579,000 | ||
Net premiums written | 3,722,000 | 3,044,000 | 3,302,000 | ||
(Increase) decrease in unearned premiums | (194,000) | 119,000 | (231,000) | ||
Net premiums earned | 3,528,000 | 3,163,000 | 3,071,000 | ||
Losses and loss expenses | (2,391,000) | (2,389,000) | (2,167,000) | ||
Acquisition costs | (864,000) | (784,000) | (783,000) | ||
Technical result | 273,000 | (10,000) | 121,000 | ||
Other income | 0 | (1,000) | (1,000) | ||
Other expenses | (71,000) | (61,000) | (80,000) | ||
Underwriting result | $ 202,000 | $ (72,000) | $ 40,000 | ||
Reinsurance Ratios [Abstract] | |||||
Loss ratio | [2] | 67.80% | 75.50% | 70.60% | |
Acquisition ratio | [3] | 24.50% | 24.80% | 25.50% | |
Technical ratio | [4] | 92.30% | 100.30% | 96.10% | |
Other expense ratio | [5] | 2.00% | 1.90% | 2.60% | |
Combined Ratio | [6] | 94.30% | 102.20% | 98.70% | |
Non Life | Specialty | |||||
Segment Reporting [Line Items] | |||||
Gross premiums written | $ 2,016,000 | $ 1,935,000 | $ 2,213,000 | ||
Net premiums written | 1,789,000 | 1,782,000 | 2,137,000 | ||
(Increase) decrease in unearned premiums | 13,000 | 110,000 | (150,000) | ||
Net premiums earned | 1,802,000 | 1,892,000 | 1,987,000 | ||
Losses and loss expenses | (1,052,000) | (1,628,000) | (1,496,000) | ||
Acquisition costs | (415,000) | (470,000) | (523,000) | ||
Technical result | 335,000 | (206,000) | (32,000) | ||
Other income | 0 | 0 | 0 | ||
Other expenses | (30,000) | (26,000) | (28,000) | ||
Underwriting result | $ 305,000 | $ (232,000) | $ (60,000) | ||
Reinsurance Ratios [Abstract] | |||||
Loss ratio | [2] | 58.40% | 86.00% | 75.30% | |
Acquisition ratio | [3] | 23.00% | 24.80% | 26.30% | |
Technical ratio | [4] | 81.40% | 110.80% | 101.60% | |
Other expense ratio | [5] | 1.70% | 1.40% | 1.40% | |
Combined Ratio | [6] | 83.10% | 112.20% | 103.00% | |
Life and Health | |||||
Segment Reporting [Line Items] | |||||
Gross premiums written | $ 1,646,870 | $ 1,499,222 | $ 1,492,778 | ||
Net premiums written | 1,623,190 | 1,474,939 | 1,470,251 | ||
(Increase) decrease in unearned premiums | 4,000 | 7,000 | (3,000) | ||
Net premiums earned | 1,626,966 | 1,482,297 | 1,467,162 | ||
Losses and loss expenses | (1,441,000) | (1,318,000) | (1,263,000) | ||
Acquisition costs | (108,000) | (102,000) | (149,000) | ||
Technical result | 78,000 | 62,000 | 55,000 | ||
Other income | 26,000 | 13,000 | 15,000 | ||
Other expenses | (88,000) | (73,000) | (69,000) | ||
Underwriting result | 16,000 | 2,000 | 1,000 | ||
Net investment income | 81,000 | 68,000 | 72,000 | ||
Allocated underwriting result | 97,000 | 70,000 | 73,000 | ||
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 | 0 | 3,000 | ||
Acquisition costs | 0 | 0 | 0 | ||
Technical result | 0 | 0 | 3,000 | ||
Other income | 3,000 | 1,000 | 1,000 | ||
Other expenses | (210,000) | (196,000) | (193,000) | ||
Net investment income | 295,000 | 293,000 | 377,000 | ||
Net realized and unrealized investment gains | 38,000 | 454,000 | 887,000 | ||
Interest expense | (56,000) | (39,000) | (40,000) | ||
Loss on redemption of debt | (15,000) | ||||
Amortization of intangible assets | (9,000) | (10,000) | (12,000) | ||
Net foreign exchange (gains) losses | (31,000) | (52,000) | (87,000) | ||
Income tax expense (benefit) | (38,000) | 13,000 | (53,000) | ||
Interest in earnings of equity method investments | $ 127,000 | $ 24,000 | $ 16,000 | ||
[1] | Non-life Losses and loss expenses include amounts allocated to Corporate and Other as disclosed in Note 18. | ||||
[2] | Loss ratio is obtained by dividing losses and loss expenses by net premiums earned. | ||||
[3] | Acquisition ratio is obtained by dividing acquisition costs by net premiums earned. | ||||
[4] | Technical ratio is defined as the sum of the loss ratio and the acquisition ratio. | ||||
[5] | Other expense ratio is obtained by dividing other expenses by net premiums earned. | ||||
[6] | Combined ratio is defined as the sum of the technical ratio and the other expense ratio. |
Segment Information (Distributi
Segment Information (Distribution of gross and net written premium) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | $ 8,203,925 | $ 6,875,925 | $ 7,285,320 |
Percentage Distribution of gross premiums written | 100.00% | 100.00% | 100.00% |
North America | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | $ 4,649,000 | $ 3,794,000 | $ 3,752,000 |
Percentage Distribution of gross premiums written | 57.00% | 55.00% | 51.00% |
Europe | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | $ 2,410,000 | $ 1,921,000 | $ 2,155,000 |
Percentage Distribution of gross premiums written | 29.00% | 28.00% | 30.00% |
Asia, Australia and New Zealand | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | $ 814,000 | $ 806,000 | $ 835,000 |
Percentage Distribution of gross premiums written | 10.00% | 12.00% | 11.00% |
Latin America and the Caribbean | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | $ 189,000 | $ 220,000 | $ 264,000 |
Percentage Distribution of gross premiums written | 2.00% | 3.00% | 4.00% |
Middle East, Africa, Russia and the Commonwealth of Independent States (CIS) | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | $ 142,000 | $ 135,000 | $ 279,000 |
Percentage Distribution of gross premiums written | 2.00% | 2.00% | 4.00% |
P&C | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | $ 4,541,000 | $ 3,442,000 | $ 3,579,000 |
P&C | Casualty | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | 2,145,000 | 1,430,000 | 1,394,000 |
P&C | Catastrophe | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | 924,000 | 545,000 | 537,000 |
P&C | Property | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | 809,000 | 641,000 | 644,000 |
P&C | US Health | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | 351,000 | 379,000 | 391,000 |
P&C | Multiline & Other | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | 183,000 | 289,000 | 213,000 |
P&C | Motor | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | 129,000 | 158,000 | 400,000 |
Specialty | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | 2,016,000 | 1,935,000 | 2,213,000 |
Specialty | Casualty | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | 0 | 4,000 | 13,000 |
Specialty | Property | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | 277,000 | 173,000 | 151,000 |
Specialty | Multiline & Other | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | 20,000 | 152,000 | 276,000 |
Specialty | Financial Risks | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | 510,000 | 568,000 | 587,000 |
Specialty | Aviation & space | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | 416,000 | 219,000 | 286,000 |
Specialty | Energy Reinsurance | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | 314,000 | 192,000 | 183,000 |
Specialty | Agriculture | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | 205,000 | 468,000 | 483,000 |
Specialty | Marine | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | 174,000 | 142,000 | 132,000 |
Specialty | Engineering | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | 100,000 | 17,000 | 102,000 |
Life and Health | |||
Distribution Of Gross Premiums Written [Line Items] | |||
Gross premiums written | $ 1,646,870 | $ 1,499,222 | $ 1,492,778 |
Segment Information (Broker det
Segment Information (Broker details) (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Economic Dependence [Line Items] | |||
Cedant Percentage Of Gross Written Premium | 5.00% | 5.00% | 5.00% |
Marsh (including Guy Carpenter) | |||
Economic Dependence [Line Items] | |||
Broker Percentage Of Gross Written Premium | 28.00% | 30.00% | 28.00% |
Aon Group (including the Benfield Group) | |||
Economic Dependence [Line Items] | |||
Broker Percentage Of Gross Written Premium | 24.00% | 21.00% | 22.00% |
Non Life | P&C | |||
Economic Dependence [Line Items] | |||
Broker Percentage Of Gross Written Premium | 63.00% | 64.00% | 60.00% |
Non Life | Specialty | |||
Economic Dependence [Line Items] | |||
Broker Percentage Of Gross Written Premium | 66.00% | 64.00% | 62.00% |
Life and Health | |||
Economic Dependence [Line Items] | |||
Broker Percentage Of Gross Written Premium | 6.00% | 6.00% | 8.00% |
Subsequent Events (Details)
Subsequent Events (Details) - Series J Preferred Stock - $ / shares | Feb. 17, 2022 | Mar. 15, 2021 | Dec. 31, 2021 |
Subsequent Event [Line Items] | |||
Preferred shares, dividend rate | 4.875% | 4.875% | |
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Dividends declared (per share) | $ 0.3046875 | ||
Preferred shares, dividend rate | 4.875% |
SCHEDULE I - Consolidated Sum_2
SCHEDULE I - Consolidated Summary of Investments Other Than Investments in Related Parties (Details) $ in Thousands | Dec. 31, 2021USD ($) | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Fair Value | $ 18,784,577 | |
Amount at which shown in the balance sheet | 19,696,788 | |
Fixed maturities | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Cost | 14,181,310 | |
Fair Value | 14,071,274 | |
Amount at which shown in the balance sheet | 14,071,274 | |
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 | 2,172,462 | [1] |
Fair Value | 2,118,772 | |
Amount at which shown in the balance sheet | 2,118,772 | |
U.S. states, territories and municipalities | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Cost | 89,344 | [1] |
Fair Value | 108,059 | |
Amount at which shown in the balance sheet | 108,059 | |
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 | 2,174,383 | [1] |
Fair Value | 2,181,127 | |
Amount at which shown in the balance sheet | 2,181,127 | |
Corporate bonds | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Cost | 5,504,934 | [1] |
Fair Value | 5,441,908 | |
Amount at which shown in the balance sheet | 5,441,908 | |
Asset-backed securities | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Cost | 16,764 | [1] |
Fair Value | 16,764 | |
Amount at which shown in the balance sheet | 16,764 | |
Residential mortgage-backed securities | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Cost | 4,223,423 | [1] |
Fair Value | 4,204,644 | |
Amount at which shown in the balance sheet | 4,204,644 | |
Equities | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Cost | 903,314 | [1] |
Fair Value | 1,751,584 | |
Amount at which shown in the balance sheet | 1,751,584 | |
Banks, trust and insurance companies | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Cost | 99,202 | [1] |
Fair Value | 97,982 | |
Amount at which shown in the balance sheet | 97,982 | |
Industrial, miscellaneous and all other | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Cost | 796,100 | [1] |
Fair Value | 1,641,192 | |
Amount at which shown in the balance sheet | 1,641,192 | |
Nonredeemable Preferred Stock | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Cost | 8,012 | [1] |
Fair Value | 12,410 | |
Amount at which shown in the balance sheet | 12,410 | |
Short-term investments | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Cost | 213,047 | [1] |
Fair Value | 205,146 | |
Amount at which shown in the balance sheet | 205,146 | |
Other invested assets | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Fair Value | 2,756,573 | [2] |
Amount at which shown in the balance sheet | 3,601,245 | |
Equity method investments | 845,000 | |
Real Estate Investment | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Fair Value | 0 | [3] |
Amount at which shown in the balance sheet | $ 67,539 | [3] |
[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 $845 million. | |
[3] | Investments in real estate are carried at original cost less any impairments. |
SCHEDULE II - Condensed Balance
SCHEDULE II - Condensed Balance Sheets - Parent Company Only (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||||
Dec. 31, 2021 | May 03, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Nov. 30, 2006 | ||
Assets | ||||||||
Fixed maturities, at fair value (amortized cost: 2021, $85,811; 2020, $517,294) | $ 14,071,274 | $ 12,786,380 | ||||||
Other assets | 208,652 | 174,193 | ||||||
Total assets | 28,029,871 | 26,898,575 | ||||||
Liabilities | ||||||||
Accounts payable, accrued expenses and other | 560,561 | 612,069 | ||||||
Total liabilities | 20,485,885 | 19,571,578 | ||||||
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: 2021, 8,000,000 shares; 2020, 25,489,636 shares; aggregate liquidation value: 2021, $200,000; 2020, $637,241) | 8,000 | 25,490 | ||||||
Additional paid-in capital | 1,929,934 | 2,334,564 | ||||||
Accumulated other comprehensive loss | (29,706) | (96,005) | ||||||
Retained earnings | 5,635,758 | 5,062,948 | ||||||
Total shareholders’ equity | 7,543,986 | 7,326,997 | $ 7,270,169 | |||||
Total liabilities and shareholders’ equity | 28,029,871 | 26,898,575 | ||||||
Other information | ||||||||
Amortized cost of trading securities, debt | $ 14,181,310 | $ 12,341,937 | ||||||
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 | 8,000,000 | 25,489,636 | ||||||
Preferred shares, shares outstanding | 8,000,000 | 25,489,636 | ||||||
Aggregate liquidation preference | $ 200,000 | $ 637,000 | $ 637,241 | |||||
Junior Subordinated Debt [Member] | Notes Issued By PartnerRe Finance II Inc | ||||||||
Other information | ||||||||
Commitment | 62,484 | 62,000 | $ 250,000 | |||||
Junior Subordinated Debt [Member] | Notes Issued By PartnerRe Finance B LLC | ||||||||
Other information | ||||||||
Stated interest rate of debt instrument | 4.50% | |||||||
Commitment | $ 500,000 | |||||||
Parent Company | ||||||||
Assets | ||||||||
Fixed maturities, at fair value (amortized cost: 2021, $85,811; 2020, $517,294) | 85,111 | 519,967 | ||||||
Cash and cash equivalents | 1,988 | 10,020 | $ 4,512 | $ 1,081 | ||||
Investment in subsidiaries | 9,757,268 | 9,291,985 | ||||||
Intercompany loans and balances receivable | 24,834 | 21,559 | ||||||
Other assets | 19,906 | 11,443 | ||||||
Total assets | 9,889,107 | 9,854,974 | ||||||
Liabilities | ||||||||
Intercompany loans and balances payable | [1] | 2,297,350 | 2,490,500 | |||||
Accounts payable, accrued expenses and other | 47,771 | 37,477 | ||||||
Total liabilities | 2,345,121 | 2,527,977 | ||||||
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: 2021, 8,000,000 shares; 2020, 25,489,636 shares; aggregate liquidation value: 2021, $200,000; 2020, $637,241) | 8,000 | 25,490 | ||||||
Additional paid-in capital | 1,929,934 | 2,334,564 | ||||||
Accumulated other comprehensive loss | (29,706) | (96,005) | ||||||
Retained earnings | 5,635,758 | 5,062,948 | ||||||
Total shareholders’ equity | 7,543,986 | 7,326,997 | ||||||
Total liabilities and shareholders’ equity | 9,889,107 | 9,854,974 | ||||||
Other information | ||||||||
Amortized cost of trading securities, debt | $ 85,811 | $ 517,294 | ||||||
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 | 8,000,000 | 25,489,636 | ||||||
Preferred shares, shares outstanding | 8,000,000 | 25,489,636 | ||||||
Aggregate liquidation preference | $ 200,000 | $ 637,241 | ||||||
Subsidiary Issuer | Junior Subordinated Debt [Member] | Notes Issued By PartnerRe Finance II Inc | ||||||||
Other information | ||||||||
Stated interest rate of debt instrument | 6.44% | |||||||
Aggregate principal amount of guarantee obligations | $ 62,000 | |||||||
Subsidiary Issuer | Junior Subordinated Debt [Member] | Notes Issued By PartnerRe Finance B LLC | ||||||||
Other information | ||||||||
Stated interest rate of debt instrument | 4.50% | |||||||
Commitment | $ 500,000 | |||||||
Subsidiary Issuer | PartnerRe Finance B LLC | ||||||||
Other information | ||||||||
Percentage ownership | 100.00% | |||||||
Subsidiary Issuer | PartnerRe Finance B LLC | Senior Notes | 3.7% notes maturing 2029 Issued By PartnerRe Finance B LLC | ||||||||
Other information | ||||||||
Stated interest rate of debt instrument | 3.70% | |||||||
Subsidiary Issuer | PartnerRe Finance Ireland DAC | ||||||||
Other information | ||||||||
Percentage ownership | 100.00% | |||||||
Subsidiary Issuer | PartnerRe Finance Ireland DAC | Senior Notes | 2016 Euro Senior Notes | ||||||||
Other information | ||||||||
Stated interest rate of debt instrument | 1.25% | |||||||
Subsidiary Issuer | PartnerRe Finance II Inc | ||||||||
Other information | ||||||||
Percentage ownership | 100.00% | |||||||
[1] | The parent has fully and unconditionally guaranteed all obligations of PartnerRe Finance B LLC and PartnerRe Finance Ireland DAC, a 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.The parent has also fully and unconditionally guaranteed all obligations of PartnerRe Finance II Inc. and PartnerRe Finance B LLC, 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 $500 million aggregate principal amount of 4.500% Fixed-Rate Reset junior subordinated notes, respectively. The parent’s obligations under these guarantees are unsecured junior subordinated obligations and rank junior in right of payment to all of the parent's outstanding and future senior indebtedness, and equally in right of payment with all outstanding and future unsecured indebtedness that is by its terms equal in right of payment to the junior subordinated notes. |
SCHEDULE II - Condensed Stateme
SCHEDULE II - Condensed Statements of Operations - Parent Company Only (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Condensed Income Statements, Captions [Line Items] | |||
Net investment income | $ 376,469 | $ 360,668 | $ 448,538 |
Net realized and unrealized investment gains | 37,797 | 454,319 | 886,670 |
Total revenues | 7,399,536 | 7,365,304 | 7,875,747 |
Other expenses | 398,542 | 355,647 | 369,969 |
Net foreign exchange losses | 30,883 | 51,964 | 86,760 |
Net income | 723,404 | 254,189 | 936,748 |
Preferred dividends | 22,693 | 45,990 | 46,416 |
Loss on redemption of preferred shares | 21,234 | 2,341 | 0 |
Net income available to common shareholder | 679,477 | 205,858 | 890,332 |
Other comprehensive income (loss) | 66,299 | (20,080) | 62,709 |
Comprehensive income | 789,703 | 234,109 | 999,457 |
Parent Company | |||
Condensed Income Statements, Captions [Line Items] | |||
Net investment income | 2,496 | 2,094 | 1,620 |
Interest income on intercompany loans | 0 | 0 | 12,215 |
Net realized and unrealized investment gains | (16,730) | 641 | 2,594 |
Other income | 148 | 113 | 112 |
Total revenues | (14,086) | 2,848 | 16,541 |
Other expenses | 55,996 | 53,458 | 51,115 |
Interest expense on intercompany loans | 35,204 | 17,188 | 14,757 |
Net foreign exchange losses | (79,696) | 82,986 | (26,885) |
Total expenses | 11,504 | 153,632 | 38,987 |
Loss before equity in net income of subsidiaries | (25,590) | (150,784) | (22,446) |
Equity in net income of subsidiaries | 748,994 | 404,973 | 959,194 |
Net income | 723,404 | 254,189 | 936,748 |
Preferred dividends | 22,693 | 45,990 | 46,416 |
Loss on redemption of preferred shares | 21,234 | 2,341 | 0 |
Net income available to common shareholder | 679,477 | 205,858 | 890,332 |
Other comprehensive income (loss) | 66,299 | (20,080) | 62,709 |
Comprehensive income | $ 789,703 | $ 234,109 | $ 999,457 |
SCHEDULE II - Condensed State_2
SCHEDULE II - Condensed Statements of Cash Flows - Parent Company Only (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 15, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | May 03, 2021 | ||
Cash flows from operating activities | |||||||
Net income | $ 723,404 | $ 254,189 | $ 936,748 | ||||
Adjustments to reconcile net income to net cash used in operating activities: | |||||||
Other, net | 23,801 | 55,004 | 150,340 | ||||
Net cash provided by operating activities | 1,232,590 | 1,124,893 | 998,869 | ||||
Cash flows from investing activities | |||||||
Purchases of fixed maturities | (8,141,246) | (8,962,066) | (14,918,698) | ||||
Purchases of short-term investments | (372,901) | (5,006,397) | (3,142,818) | ||||
Other, net | (31,903) | 23,431 | (94,263) | ||||
Net cash used in investing activities | (2,329,122) | (632,748) | (117,994) | ||||
Issuance of preferred shares | 193,887 | 0 | 0 | ||||
Redemption of preferred shares | (637,241) | (66,985) | 0 | ||||
Net cash used in financing activities | $ (573,295) | 328,362 | (267,868) | ||||
Supplemental cash flow information: | |||||||
Non-cash exchange of intercompany balances | $ 204,000 | ||||||
Preferred shares, par value per share | $ 1 | $ 1 | |||||
Aggregate liquidation preference | $ 200,000 | $ 637,241 | $ 637,000 | ||||
Underwriting discounts and commissions | $ 21,300 | [1] | $ 21,000 | ||||
Series J Preferred Stock | |||||||
Supplemental cash flow information: | |||||||
Shares issued during the period (in shares) | 8,000,000 | ||||||
Annual dividend rate | 4.875% | 4.875% | |||||
Preferred shares, par value per share | $ 1 | $ 1 | |||||
Aggregate liquidation preference | $ 200,000 | $ 200,000 | |||||
Underwriting discounts and commissions | $ 6,000 | 6,100 | |||||
Preferred shares, redemption price per share (in dollars per share) | $ 25 | ||||||
Series G 6.5% cumulative | |||||||
Supplemental cash flow information: | |||||||
Annual dividend rate | 6.50% | ||||||
Preferred shares, par value per share | $ 1 | ||||||
Aggregate liquidation preference | $ 160,400 | ||||||
Underwriting discounts and commissions | [1] | $ 5,400 | |||||
Preferred shares, redemption price per share (in dollars per share) | $ 25 | ||||||
Series I 5.875% non-cumulative | |||||||
Supplemental cash flow information: | |||||||
Annual dividend rate | 5.875% | ||||||
Preferred shares, par value per share | $ 1 | ||||||
Aggregate liquidation preference | $ 183,000 | ||||||
Underwriting discounts and commissions | [1] | $ 6,400 | |||||
Preferred shares, redemption price per share (in dollars per share) | 25 | ||||||
Series H 7.25% cumulative | |||||||
Supplemental cash flow information: | |||||||
Annual dividend rate | 7.25% | ||||||
Preferred shares, par value per share | $ 1 | ||||||
Aggregate liquidation preference | $ 293,800 | ||||||
Underwriting discounts and commissions | [1] | 9,500 | |||||
Preferred shares, redemption price per share (in dollars per share) | $ 25 | ||||||
Parent Company | |||||||
Cash flows from operating activities | |||||||
Net income | 723,404 | 254,189 | 936,748 | ||||
Adjustments to reconcile net income to net cash used in operating activities: | |||||||
Equity in net income of subsidiaries | (748,994) | (404,973) | (959,194) | ||||
Other, net | (51,783) | 87,789 | (17,167) | ||||
Net cash provided by operating activities | (77,373) | (62,995) | (39,613) | ||||
Cash flows from investing activities | |||||||
Advances to/from subsidiaries, net (1) | [2] | 100,426 | 73,738 | (282,233) | |||
Net issue of intercompany loans receivable and payable (1) (2) | [2],[3] | 0 | 458,489 | 276,332 | |||
Sales and redemptions of fixed maturities | 481,015 | 32,230 | 72,724 | ||||
Sales and redemptions of short-term investments | 0 | 43,899 | 2,189 | ||||
Purchases of fixed maturities | (62,239) | (496,139) | (18,621) | ||||
Purchases of short-term investments | 0 | (39,913) | (6,173) | ||||
Other, net | (8,465) | (3,987) | (29) | ||||
Net cash used in investing activities | 510,737 | 68,317 | 44,189 | ||||
Issuance of preferred shares | [4] | 193,887 | 0 | 0 | |||
Redemption of preferred shares | [4] | (637,241) | 0 | 0 | |||
Net cash used in financing activities | (443,354) | 0 | 0 | ||||
Effect of foreign exchange rate changes on cash | 1,958 | 186 | (1,145) | ||||
(Decrease) increase in cash and cash equivalents | (8,032) | 5,508 | 3,431 | ||||
Cash and cash equivalents—beginning of year | 10,020 | 4,512 | 1,081 | ||||
Cash and cash equivalents—end of year | $ 1,988 | $ 10,020 | 4,512 | ||||
Supplemental cash flow information: | |||||||
Preferred shares, par value per share | $ 1 | $ 1 | |||||
Aggregate liquidation preference | $ 200,000 | $ 637,241 | |||||
Subsidiaries | |||||||
Cash flows from investing activities | |||||||
Redemption of preferred shares | (67,000) | ||||||
Supplemental cash flow information: | |||||||
Payment of dividends by subsidiary on behalf of parent | 129,000 | 96,000 | 246,000 | ||||
Non-cash dividends received from subsidiaries | $ 350,000 | 979,000 | |||||
Non-cash capital contributions to subsidiaries | 25,000 | $ 22,000 | |||||
Notes Issued | $ 458,000 | ||||||
[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 series G, H and I shares as a result of the share exchange in May 2016 for $nil consideration | ||||||
[2] | The following non-cash transactions were excluded from the Condensed Statement of Cash Flows - Parent Company Only: a. 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. b. During 2021, 2020 and 2019, dividends paid to common and preferred shareholders of $129 million, $96 million and $246 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 in 2020 was also paid by a Bermuda subsidiary on behalf of the parent, with a corresponding increase to intercompany balances payable. c. During 2021, the parent recorded a non-cash dividend received from a subsidiary of $350 million, with a corresponding change to intercompany balances payable. 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. | ||||||
[3] | 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 and used during 2021 to redeem the Series G, H and I preferred shares. | ||||||
[4] | During 2021, the parent issued 8 million 4.875% Series J fixed rate non-cumulative redeemable preferred shares at a par value of $1.00 per share and a redemption price of $200 million, and incurred preferred share issuance costs of $6 million. The parent also redeemed all outstanding Series G, H and I preferred shares at $25 per share for an aggregate liquidation value of $637 million during 2021. |
SCHEDULE III - Supplementary _2
SCHEDULE III - Supplementary Insurance Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | ||||
Deferred Policy Acquisition Costs | $ 920,779 | $ 819,971 | $ 874,608 | |
Gross Reserves | 12,047,792 | 11,395,321 | 10,363,383 | |
Unearned Premiums | 2,501,161 | 2,265,214 | 2,433,860 | |
Other Benefits Payable | 2,638,086 | 2,704,229 | 2,417,044 | |
Premium Revenue | 6,956,522 | 6,536,826 | 6,525,218 | |
Net Investment Income (1) | [1] | 376,469 | 360,668 | 448,538 |
Losses Incurred | 4,883,984 | 5,334,900 | 4,923,156 | |
Amortization of DAC | 1,386,832 | 1,356,118 | 1,455,462 | |
Other Expenses (2) | [2] | 398,542 | 355,647 | 369,969 |
Premiums Written | 7,134,018 | 6,300,858 | 6,909,058 | |
Non Life | ||||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | ||||
Deferred Policy Acquisition Costs | 617,537 | 543,416 | 640,442 | |
Gross Reserves | 12,047,792 | 11,395,321 | 10,357,981 | |
Unearned Premiums | 2,498,426 | 2,257,441 | 2,420,009 | |
Other Benefits Payable | 0 | 0 | 0 | |
Premium Revenue | 5,329,556 | 5,054,529 | 5,058,056 | |
Losses Incurred | 3,443,245 | 4,016,704 | 3,662,891 | |
Amortization of DAC | 1,279,039 | 1,254,067 | 1,306,388 | |
Other Expenses (2) | [2] | 100,635 | 87,163 | 107,414 |
Premiums Written | 5,510,828 | 4,825,919 | 5,438,807 | |
Life and Health | ||||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | ||||
Deferred Policy Acquisition Costs | 303,242 | 276,555 | 234,166 | |
Gross Reserves | 0 | 0 | 0 | |
Unearned Premiums | 2,735 | 7,773 | 13,851 | |
Other Benefits Payable | 2,638,086 | 2,704,229 | 2,417,044 | |
Premium Revenue | 1,626,966 | 1,482,297 | 1,467,162 | |
Net Investment Income (1) | [1] | 81,226 | 68,259 | 71,756 |
Losses Incurred | 1,440,739 | 1,318,196 | 1,263,016 | |
Amortization of DAC | 107,793 | 102,051 | 149,074 | |
Other Expenses (2) | [2] | 88,069 | 73,105 | 69,191 |
Premiums Written | 1,623,190 | 1,474,939 | 1,470,251 | |
Corporate and Other | ||||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | ||||
Deferred Policy Acquisition Costs | 0 | 0 | 0 | |
Gross Reserves | 0 | 0 | 5,402 | |
Unearned Premiums | 0 | 0 | 0 | |
Other Benefits Payable | 0 | 0 | 0 | |
Premium Revenue | 0 | 0 | 0 | |
Net Investment Income (1) | [1] | 295,243 | 292,409 | 376,782 |
Losses Incurred | 0 | 0 | (2,751) | |
Amortization of DAC | 0 | 0 | 0 | |
Other Expenses (2) | [2] | 209,838 | 195,379 | 193,364 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Life reinsurance in force | ||||
Gross amount | [1] | $ 0 | $ 0 | $ 0 |
Ceded to other companies | [1] | 19,383,794 | 18,764,660 | 17,632,050 |
Assumed from other companies | [1] | 453,373,378 | 398,443,383 | 359,376,352 |
Net amount | [1] | $ 433,989,584 | $ 379,678,723 | $ 341,744,302 |
Percentage of amount assumed to net | [1] | 104.00% | 105.00% | 105.00% |
Reinsurance Premiums For Insurance Companies By Product Segment Net Amount [Abstract] | ||||
Gross amount | $ 318,058 | $ 269,691 | $ 275,923 | |
Ceded to other companies | 969,381 | 540,194 | 397,860 | |
Assumed from other companies | 7,607,845 | 6,807,329 | 6,647,155 | |
Net premiums earned | $ 6,956,522 | $ 6,536,826 | $ 6,525,218 | |
Percentage of amount assumed to net | 109.00% | 104.00% | 102.00% | |
Life | ||||
Reinsurance Premiums For Insurance Companies By Product Segment Net Amount [Abstract] | ||||
Gross amount | $ 0 | $ 0 | $ 0 | |
Ceded to other companies | 24,519 | 23,522 | 22,559 | |
Assumed from other companies | 1,620,130 | 1,483,298 | 1,427,723 | |
Net premiums earned | $ 1,595,611 | $ 1,459,776 | $ 1,405,164 | |
Percentage of amount assumed to net | 102.00% | 102.00% | 102.00% | |
Accident and health | ||||
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 | 31,355 | 22,521 | 61,998 | |
Net premiums earned | $ 31,355 | $ 22,521 | $ 61,998 | |
Percentage of amount assumed to net | 100.00% | 100.00% | 100.00% | |
Property and casualty | ||||
Reinsurance Premiums For Insurance Companies By Product Segment Net Amount [Abstract] | ||||
Gross amount | [2] | $ 318,058 | $ 269,691 | $ 275,923 |
Ceded to other companies | [2] | 944,862 | 516,672 | 375,301 |
Assumed from other companies | [2] | 5,956,360 | 5,301,510 | 5,157,434 |
Net premiums earned | [2] | $ 5,329,556 | $ 5,054,529 | $ 5,058,056 |
Percentage of amount assumed to net | [2] | 112.00% | 105.00% | 102.00% |
[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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Non Life | |||||
Supplemental Information Concerning Property-Casualty Insurance Operations [Line Items] | |||||
Deferred Policy Acquisition Costs | [1] | $ 617,537 | $ 543,416 | $ 640,442 | |
Liability for Unpaid Losses and Loss Expenses | [1] | 12,047,792 | 11,395,321 | 10,363,383 | |
Unearned Premiums | [1] | 2,498,426 | 2,257,441 | 2,420,009 | |
Premiums Earned | [1] | 5,329,556 | 5,054,529 | 5,058,056 | |
Losses and Loss Expenses Incurred Related to - Current year | [1] | 3,637,671 | 3,945,248 | 3,716,988 | [2] |
Losses and Loss Expenses Incurred Related to - Prior year | [1] | (194,426) | 71,456 | (56,848) | [2] |
Acquisition Costs | [1] | 1,279,039 | 1,254,067 | 1,306,388 | |
Paid Losses and Loss Expenses | [1] | 2,972,995 | 3,232,604 | 3,090,670 | |
Premiums Written | [1] | 5,510,828 | $ 4,825,919 | $ 5,438,807 | |
Corporate and Other | |||||
Supplemental Information Concerning Property-Casualty Insurance Operations [Line Items] | |||||
Losses and Loss Expenses Incurred Related to - Current year | [2] | $ 3,000 | |||
[1] | (1) Includes the Company's P&C and Specialty segments. | ||||
[2] | (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. |