XML 28 R15.htm IDEA: XBRL DOCUMENT
v3.20.2

Unpaid Losses And Loss Adjustment Expenses | 6 Months Ended
--- | ---
Jun. 30, 2020
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred Claims [Abstract] |
Unpaid Losses And Loss Adjustment Expenses | Unpaid Losses and Loss Adjustment Expenses The following table presents a reconciliation of consolidated beginning and ending reserves for losses and loss adjustment expenses.
| Six Months Ended June 30, |  |
(dollars in thousands) | 2020 |  | 2019
Net reserves for losses and loss adjustment expenses, beginning of year | $ | 9,475,261 |  |  | $ | 9,214,443 |
Effect of foreign currency rate changes on beginning of year balance | (75,037) |  |  | (2,866) |
Effect of adoption of ASC 326 (see note 2) | 3,849 |  |  | — |
Adjusted net reserves for losses and loss adjustment expenses, beginning of year | 9,404,073 |  |  | 9,211,577 |
Incurred losses and loss adjustment expenses: |  |  |
Current accident year | 2,057,729 |  |  | 1,554,682 |
Prior accident years | (268,220) |  |  | (188,949) |
Total incurred losses and loss adjustment expenses | 1,789,509 |  |  | 1,365,733 |
Payments: |  |  |
Current accident year | 217,466 |  |  | 206,461 |
Prior accident years | 1,033,176 |  |  | 1,173,743 |
Total payments | 1,250,642 |  |  | 1,380,204 |
Effect of foreign currency rate changes on current year activity | (1,997) |  |  | 760 |
Net reserves for losses and loss adjustment expenses, end of period | 9,940,943 |  |  | 9,197,866 |
Reinsurance recoverables on unpaid losses | 5,304,562 |  |  | 5,137,917 |
Gross reserves for losses and loss adjustment expenses, end of period | $ | 15,245,505 |  |  | $ | 14,335,783 |
Underwriting results for the six months ended June 30, 2020 included $325.0 million of net losses and loss adjustment expenses directly attributed to the COVID-19 pandemic, for which COVID-19 was identified as the proximate, or direct, cause of loss. These losses and loss adjustment expenses were net of ceded losses of $58.0 million. Both the gross and net loss estimates for direct losses attributed to the COVID-19 pandemic represent the Company's best estimate of losses based upon information currently available. The Company's estimate for these losses and loss adjustment expenses is based on reported claims, as well as detailed policy level reviews and reviews of in-force assumed reinsurance contracts for potential exposures. This estimate also considered analysis provided by brokers and claims counsel. There are no historical events with similar characteristics to COVID-19, and therefore the Company has no past loss experience on which to base its estimates. Additionally, the economic and social impacts of the pandemic continue to evolve. Significant assumptions on which the Company's estimates of reserves for COVID-19 losses and loss adjustment expenses are based include: •the scope of coverage provided under the Company's policies, particularly those that provide for business interruption coverage; •coverage provided under the Company's ceded reinsurance contracts; •the expected duration of the disruption caused by the COVID-19 pandemic; and •the ability of insureds to mitigate some or all of their losses. The Company's estimates are based on broad assumptions about coverage, liability and reinsurance, which ultimately may be subjected to judicial review or government action. Additionally, it is highly likely that there will be significant litigation involved in the handling of claims associated with COVID-19, and in certain instances, assessing the validity of policy exclusions for pandemics and interpreting policy terms to determine coverage for pandemics, which are in the process of being tested in various judicial systems. While the Company believes the net reserves for losses and loss adjustment expenses for COVID-19 as of June 30, 2020 are adequate based on information available at this time, the Company will continue to closely monitor reported claims, government actions, judicial decisions and changes in the levels of worldwide social disruption and economic activity arising from the pandemic and will adjust the estimates of gross and net losses as new information becomes available. Such adjustments to the Company's reserves for COVID-19 losses and loss adjustment expenses may be material to the Company's results of operations, financial condition and cash flows. For the six months ended June 30, 2020, incurred losses and loss adjustment expenses included $268.2 million of favorable development on prior years' loss reserves, which included $206.6 million of favorable development on the Company's professional liability, general liability and workers' compensation product lines within the Insurance segment and property and general liability product lines within the Reinsurance segment.For the six months ended June 30, 2019, incurred losses and loss adjustment expenses included $188.9 million of favorable development on prior years' loss reserves, which included $168.1 million of favorable development on the Company's general liability, workers' compensation and personal lines product lines within the Insurance segment and aviation, whole account and auto product lines within the Reinsurance segment.

X
- Definition The entire disclosure for liabilities related to future policy benefits and unpaid claims and claim adjustments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 40 -URI http://asc.fasb.org/subtopic&trid=2560295 + Details
Name: | us-gaap_LiabilityForFuturePolicyBenefitsAndUnpaidClaimsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_LiabilityForUnpaidClaimsAndClaimsAdjustmentExpenseIncurredClaimsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration