XML 39 R18.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Reinsurance | 12 Months Ended
--- | ---
Dec. 31, 2023
Reinsurance Disclosures [Abstract] |
Reinsurance | Reinsurance In reinsurance and retrocession transactions, an insurance or reinsurance company transfers, or cedes, all or part of its exposure in return for a premium. The ceding of insurance does not legally discharge the Company from its primary liability for the full amount of the policies, and the Company will be required to pay the loss and bear collection risk if the reinsurer fails to meet its obligations under the reinsurance or retrocessional agreement. A credit risk exists with ceded reinsurance to the extent that any reinsurer is unable to meet the obligations assumed under the reinsurance or retrocessional contracts. Allowances are established for credit losses expected to be recognized over the life of the reinsurance recoverables. Within its underwriting operations, the Company uses reinsurance and retrocessional reinsurance to manage its net retention on individual risks and overall exposure to losses while providing it with the ability to offer policies with sufficient limits to meet policyholder needs. Within the Company's underwriting operations, balances recoverable at December 31, 2023 from the ten largest reinsurers, by group, represented 65% of the $4.0 billion reinsurance recoverables before considering reinsurance allowances and collateral. As of December 31, 2022, balances recoverable from the ten largest reinsurers, by group, represented 62% of the $3.1 billion reinsurance recoverables before considering reinsurance allowances and collateral. At December 31, 2023, the largest reinsurance balance was due from RenaissanceRe and represented 17% of reinsurance recoverables before considering reinsurance allowances and collateral. Within its program services and other fronting businesses, the Company generally enters into quota share reinsurance agreements whereby the Company cedes to the capacity providers (reinsurers) substantially all of its gross liability under all policies issued by and on behalf of the Company by a general agent. However, there are certain programs that contain limits on the reinsurers' obligations to the Company that expose the Company to underwriting risk, including loss ratio caps, exclusions of the credit risk of producers and aggregate reinsurance limits that the Company believes are unlikely to be exceeded. The Company also remains exposed to the credit risk of the reinsurer, or the risk that one of its reinsurers becomes insolvent or otherwise unable or unwilling to pay policyholder claims. This credit risk is generally mitigated by either selecting well capitalized, highly rated authorized capacity providers or requiring that the capacity provider post substantial collateral to secure the reinsured risks, which, in some instances, exceeds the related reinsurance recoverable. Within the Company's program services business, balances recoverable at December 31, 2023 from the ten largest reinsurers, by group, represented 56% of the $4.9 billion reinsurance recoverables before considering reinsurance allowances and collateral. As of December 31, 2022, balances recoverable from the ten largest reinsurers, by group, represented 67% of the $4.9 billion reinsurance recoverables before considering reinsurance allowances and collateral. At December 31, 2023, the largest reinsurance balance was due from Knight Insurance Company and represented 10% of reinsurance recoverables before considering reinsurance allowances and collateral. All of the Company's other fronting business is conducted on behalf of its Nephila ILS operations; therefore, all of the reinsurance recoverables within these operations are attributable to entities it manages. See note 18. The following tables summarize the effect of reinsurance and retrocessional reinsurance on premiums written and earned.
| Year Ended December 31, 2023
(dollars in thousands) | Direct |  | Assumed |  | Ceded |  | Net Premiums
Underwriting: |  |  |  |  |  |  |
Written | $ | 8,657,266 |  |  | $ | 1,620,366 |  |  | $ | (1,878,844) |  |  | $ | 8,398,788 |
Earned | $ | 8,363,710 |  |  | $ | 1,616,630 |  |  | $ | (1,683,648) |  |  | $ | 8,296,692 |
Program services and other fronting: |  |  |  |  |  |  |
Written | 2,649,217 |  |  | 1,075,388 |  |  | (3,725,818) |  |  | (1,213) |
Earned | 2,636,179 |  |  | 937,400 |  |  | (3,574,792) |  |  | (1,213) |
Consolidated: |  |  |  |  |  |  |
Written | $ | 11,306,483 |  |  | $ | 2,695,754 |  |  | $ | (5,604,662) |  |  | $ | 8,397,575 |
Earned | $ | 10,999,889 |  |  | $ | 2,554,030 |  |  | $ | (5,258,440) |  |  | $ | 8,295,479 |
| Year Ended December 31, 2022
(dollars in thousands) | Direct |  | Assumed |  | Ceded |  | Net Premiums
Underwriting: |  |  |  |  |  |  |
Written | $ | 8,085,812 |  |  | $ | 1,761,726 |  |  | $ | (1,640,165) |  |  | $ | 8,207,373 |
Earned | $ | 7,379,766 |  |  | $ | 1,589,920 |  |  | $ | (1,378,191) |  |  | $ | 7,591,495 |
Program services and other fronting: |  |  |  |  |  |  |
Written | 2,644,138 |  |  | 710,006 |  |  | (3,358,127) |  |  | (3,983) |
Earned | 2,688,804 |  |  | 656,885 |  |  | (3,349,392) |  |  | (3,703) |
Consolidated: |  |  |  |  |  |  |
Written | $ | 10,729,950 |  |  | $ | 2,471,732 |  |  | $ | (4,998,292) |  |  | $ | 8,203,390 |
Earned | $ | 10,068,570 |  |  | $ | 2,246,805 |  |  | $ | (4,727,583) |  |  | $ | 7,587,792 |
| Year Ended December 31, 2021
(dollars in thousands) | Direct |  | Assumed |  | Ceded |  | Net Premiums
Underwriting: |  |  |  |  |  |  |
Written | $ | 6,863,229 |  |  | $ | 1,622,700 |  |  | $ | (1,360,763) |  |  | $ | 7,125,166 |
Earned | $ | 6,275,078 |  |  | $ | 1,482,755 |  |  | $ | (1,250,392) |  |  | $ | 6,507,441 |
Program services and other fronting: |  |  |  |  |  |  |
Written | 2,644,955 |  |  | 307,798 |  |  | (2,958,188) |  |  | (5,435) |
Earned | 2,453,990 |  |  | 261,591 |  |  | (2,719,993) |  |  | (4,412) |
Consolidated: |  |  |  |  |  |  |
Written | $ | 9,508,184 |  |  | $ | 1,930,498 |  |  | $ | (4,318,951) |  |  | $ | 7,119,731 |
Earned | $ | 8,729,068 |  |  | $ | 1,744,346 |  |  | $ | (3,970,385) |  |  | $ | 6,503,029 |
Substantially all of the premiums written and earned in the Company's program services and other fronting operations for the years ended December 31, 2023, 2022 and 2021 were ceded. The percentage of consolidated ceded earned premiums to gross earned premiums was 39%, 38% and 38% for the years ended December 31, 2023, 2022 and 2021, respectively. The percentage of consolidated assumed earned premiums to net earned premiums was 31%, 30% and 27% for the years ended December 31, 2023, 2022 and 2021, respectively. Substantially all of the incurred losses and loss adjustment expenses in the Company's program services and other fronting operations were ceded. These losses totaled $2.5 billion and $3.0 billion for the years ended December 31, 2023 and 2022, respectively. The following table summarizes the effect of reinsurance and retrocessional reinsurance on losses and loss adjustment expenses in the Company's underwriting operations.
| Years ended December 31,
(dollars in thousands) | 2023 |  | 2022 |  | 2021
Gross losses and loss adjustment expenses | $ | 6,817,630 |  |  | $ | 5,281,424 |  |  | $ | 4,477,752 |
Ceded losses and loss adjustment expenses | (1,496,265) |  |  | (834,648) |  |  | (893,230) |
Net losses and loss adjustment expenses | $ | 5,321,365 |  |  | $ | 4,446,776 |  |  | $ | 3,584,522 |

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

X
- Definition The entire disclosure pertaining to the existence, magnitude and information about insurance that has been ceded to or assumed from another insurance company, including the methodologies and assumptions used in determining recorded amounts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479838/944-20-50-3 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 4 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479838/944-20-50-4 Reference 3: http://www.xbrl.org/2003/role/exampleRef -Topic 944 -SubTopic 605 -Name Accounting Standards Codification -Section 55 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479629/944-605-55-12 Reference 4: http://www.xbrl.org/2003/role/exampleRef -Topic 944 -SubTopic 605 -Name Accounting Standards Codification -Section 55 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479629/944-605-55-15 + Details
Name: | us-gaap_ReinsuranceTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration