Reserve for Losses and Loss Adjustment Expenses (Tables)

9 Months Ended

Sep. 30, 2021

Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract]

Analysis of losses and loss adjustment expenses and reconciliation of beginning and ending reserve balances

The following table represents an analysis of losses and loss adjustment expenses and a reconciliation of the beginning and ending reserve for losses and loss adjustment expenses:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
Reserve for losses and loss adjustment expenses at beginning of period	$	17,196,648	$	15,044,874	$	16,513,929	$	13,891,842
Unpaid losses and loss adjustment expenses recoverable	4,146,020		4,156,157		4,314,855		4,082,650
Net reserve for losses and loss adjustment expenses at beginning of period	13,050,628		10,888,717		12,199,074		9,809,192

Net incurred losses and loss adjustment expenses relating to losses occurring in:
Current year	1,348,528		1,264,315		3,812,381		3,673,346
Prior years	(122,509)		(48,042)		(223,431)		(111,132)
Total net incurred losses and loss adjustment expenses	1,226,019		1,216,273		3,588,950		3,562,214

Net losses and loss adjustment expense reserves of acquired business (2)	104,307		—		104,307		$	—

Retroactive reinsurance transactions (1)	—		—		(183,893)		60,635

Impact of deconsolidation of Watford (3)	(1,460,611)		—		(1,460,611)		—

Net foreign exchange (gains) losses	(78,152)		114,122		10,818		22,706

Net paid losses and loss adjustment expenses relating to losses occurring in:
Current year	(208,923)		(189,961)		(432,348)		(359,395)
Prior years	(417,368)		(512,263)		(1,610,397)		(1,578,464)
Total net paid losses and loss adjustment expenses	(626,291)		(702,224)		(2,042,745)		(1,937,859)

Net reserve for losses and loss adjustment expenses at end of period	12,215,900		11,516,888		12,215,900		11,516,888
Unpaid losses and loss adjustment expenses recoverable	5,115,147		4,383,638		5,115,147		4,383,638
Reserve for losses and loss adjustment expenses at end of period	$	17,331,047	$	15,900,526	$	17,331,047	$	15,900,526

(1) During the 2021 first quarter, the Company entered into a reinsurance to close and other related agreements with Premia Managing Agency Limited (“Premia”), in connection with the 2018 and prior years of account related to the acquisition of Barbican Group Holdings Limited (“Barbican”). During the 2020 first quarter, the Company entered into a reinsurance to close agreement of the 2017 and prior years of account previously covered by a third party arrangement.

(2) Represents activity related to the Company’s acquisitions in the 2021 period. See note 2.

(3) See note 12.