XML 43 R18.htm IDEA: XBRL DOCUMENT
v3.25.0.1

Reinsurance | 12 Months Ended
--- | ---
Dec. 31, 2024
Reinsurance Disclosures [Abstract] |
Reinsurance | 12. 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, at December 31, 2024, balances recoverable from the ten largest reinsurers, by group, represented 63% of the $5.0 billion reinsurance recoverables before considering reinsurance allowances and collateral. As of December 31, 2023, balances recoverable from the ten largest reinsurers, by group, represented 65% of the $4.0 billion reinsurance recoverables before considering reinsurance allowances and collateral. At December 31, 2024, the largest reinsurance balance was due from RenaissanceRe and represented 19% of reinsurance recoverables before considering reinsurance allowances and collateral. Within its program services and ILS fronting operations, 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 the 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, at December 31, 2024, balances recoverable from the ten largest reinsurers, by group, represented 55% of the $6.0 billion reinsurance recoverables before considering reinsurance allowances and collateral. As of December 31, 2023, balances recoverable from the ten largest reinsurers, by group, represented 56% of the $4.9 billion reinsurance recoverables before considering reinsurance allowances and collateral. At December 31, 2024, the largest reinsurance balance was due from Lloyd's of London and represented 9% of reinsurance recoverables before considering reinsurance allowances and collateral. All of the Company's ILS fronting business is conducted by its Nephila ILS operations; therefore, substantially all of the reinsurance recoverables within these operations are attributable to entities managed by Nephila. See note 18. The following tables summarize the effect of reinsurance and retrocessional reinsurance on premiums written and earned.
| Year Ended December 31, 2024
(dollars in thousands) | Direct |  | Assumed |  | Ceded |  | Net Premiums
Underwriting: |  |  |  |  |  |  |
Written | $ | 8,860,015 |  |  | $ | 1,691,858 |  |  | $ | (2,252,122) |  |  | $ | 8,299,751 |
Earned | $ | 8,801,477 |  |  | $ | 1,628,408 |  |  | $ | (1,993,895) |  |  | $ | 8,435,990 |
Fronting: |  |  |  |  |  |  |
Written | 3,234,025 |  |  | 1,708,733 |  |  | (4,946,334) |  |  | (3,576) |
Earned | 3,053,947 |  |  | 1,559,599 |  |  | (4,617,124) |  |  | (3,578) |
Consolidated: |  |  |  |  |  |  |
Written | $ | 12,094,040 |  |  | $ | 3,400,591 |  |  | $ | (7,198,456) |  |  | $ | 8,296,175 |
Earned | $ | 11,855,424 |  |  | $ | 3,188,007 |  |  | $ | (6,611,019) |  |  | $ | 8,432,412 |
| 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 |
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 |
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 |
Substantially all of the premiums written and earned in the Company's fronting operations for the years ended December 31, 2024, 2023 and 2022 were ceded. The percentage of consolidated ceded earned premiums to gross earned premiums was 44%, 39% and 38% for the years ended December 31, 2024, 2023 and 2022, respectively. The percentage of consolidated assumed earned premiums to net earned premiums was 38%, 31% and 30% for the years ended December 31, 2024, 2023 and 2022, respectively. Substantially all of the incurred losses and loss adjustment expenses in the Company's fronting operations were ceded. These losses totaled $3.5 billion, $2.5 billion, and $3.0 billion for the years ended December 31, 2024, 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) | 2024 |  | 2023 |  | 2022
Gross losses and loss adjustment expenses | $ | 6,970,871 |  |  | $ | 6,817,630 |  |  | $ | 5,281,424 |
Ceded losses and loss adjustment expenses | (1,917,318) |  |  | (1,496,265) |  |  | (834,648) |
Net losses and loss adjustment expenses | $ | 5,053,553 |  |  | $ | 5,321,365 |  |  | $ | 4,446,776 |

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/1943274/2147477548/944-605-55-12 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/1943274/2147477548/944-605-55-15 + Details
Name: | us-gaap_ReinsuranceTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration