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Reserve For Losses, LAE And Future Policy Benefit Reserve | 12 Months Ended
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Dec. 31, 2019
Reserve For Losses LAE And Future Policy Benefit Reserve [Abstract] |
Reserve For Losses LAE And Future Policy Benefit Reserve | 3. RESERVE FOR LOSSES, LAE AND FUTURE POLICY BENEFIT RESERVE Reserves for losses and LAE. Activity in the reserve for losses and LAE is summarized for the periods indicated:
| Years Ended December 31,
(Dollars in thousands) | 2019 |  | 2018 |  | 2017
Gross reserves beginning of period | $ | 13,119,090 |  | $ | 11,884,321 |  |  | 10,312,313
Less reinsurance recoverables |  | (1,619,641) |  |  | (1,212,649) |  |  | (990,862)
Net reserves beginning of period |  | 11,499,449 |  |  | 10,671,672 |  |  | 9,321,451
Incurred related to: |  |  |  |  |  |  |  |
Current year |  | 4,986,456 |  |  | 5,264,327 |  |  | 4,815,967
Prior years |  | (63,558) |  |  | 387,076 |  |  | (293,386)
Total incurred losses and LAE |  | 4,922,898 |  |  | 5,651,403 |  |  | 4,522,581
Paid related to: |  |  |  |  |  |  |  |
Current year |  | 2,042,246 |  |  | 1,700,765 |  |  | 1,280,605
Prior years |  | 2,460,825 |  |  | 3,011,175 |  |  | 2,062,634
Total paid losses and LAE |  | 4,503,071 |  |  | 4,711,940 |  |  | 3,343,239
Foreign exchange/translation adjustment |  | 51,325 |  |  | (111,686) |  |  | 170,879
Net reserves end of period |  | 11,970,601 |  |  | 11,499,449 |  |  | 10,671,672
Plus reinsurance recoverables |  | 1,640,712 |  |  | 1,619,641 |  |  | 1,212,649
Gross reserves end of period | $ | 13,611,313 |  | $ | 13,119,090 |  |  | 11,884,321
(Some amounts may not reconcile due to rounding.) |  |  |
Current year incurred losses were $4,986,456 thousand, $5,264,327 thousand and $4,815,967 thousand at December 31, 2019, 2018 and 2017, respectively. The decrease in current year incurred losses from 2018 to 2019 was primarily due to $693,458 thousand of lower catastrophe losses in 2019 compared to 2018, partially offset by $415,585 thousand of additional attritional losses related to higher premiums earned in 2019 compared to 2018. Incurred prior years losses decreased by $63,558 thousand in 2019, increased by $387,076 thousand in 2018 and decreased by $293,386 thousand in 2017. The decrease for 2019 primarily related to reserve reductions associated short-tail lines of business and worker’s compensation. The increase for 2018 was mainly due to $561,197 thousand of adverse development on prior years catastrophe losses, primarily related to Hurricanes Harvey, Irma and Maria, as well as the 2017 California wildfires. The increase in loss estimates for Hurricanes Harvey, Irma and Maria was mostly driven by re-opened claims, loss inflation from higher than expected loss adjustment expenses and in particular, their impact on aggregate covers. This reserve increase was partially offset by $174,121 thousand of favorable development on prior years attritional losses which mainly related to U.S. and international property and casualty reinsurance business, as well as favorable development in the Insurance segment which largely related to workers’ compensation business. The decrease for 2017 was attributable to favorable development in the reinsurance segments of $238,378 thousand, related primarily to property and short-tail business in the U.S. and Bermuda as well as favorable development on prior year catastrophe losses, partially offset by $37,137 thousand of adverse development on A&E reserves. The insurance segment also experienced favorable development on prior year reserves of $55,007 thousand mainly on its workers compensation business, which is largely written in California. The following is information about incurred and paid claims development as of December 31, 2019, net of reinsurance, as well as cumulative claim frequency and the total of incurred but not reported liabilities (IBNR) plus expected development on reported claims included within the net incurred claims amounts. Each of the Company’s financial reporting segments has been disaggregated into casualty and property business. The casualty and property segregation results in groups that have homogeneous loss development characteristics and are large enough to represent credible trends. Generally, casualty claims take longer to be reported and settled, resulting in longer payout patterns and increased volatility. Property claims on the other hand, tend to be reported and settled quicker and therefore tend to exhibit less volatility. The property business is more exposed to catastrophe losses, which can result in year over year fluctuations in incurred claims depending on the frequency and severity of catastrophes claims in any one accident year. The information about incurred and paid claims development for the years ended December 31, 2012 to December 31, 2018 is presented as supplementary information. These tables present eight years of incurred and paid claims development as it is impracticable to retrospectively create the tables for ten years. For the reinsurance groups, for the years prior to 2012, the total of IBNR plus expected development on reported claims was not prepared on an accident year basis. The Company calculated these IBNR amounts in the aggregate for each business unit in total as of prior year end points in time. While business written in the United States would have been allocated to accident year for regulatory reporting purposes, business written outside of the United States would not have been similarly allocated. Attempting to allocate the non-U.S. business IBNR reserves to accident year currently for older year end valuations would require making assumptions and estimates which may not be in line with assumptions that would have been made at the time. A similar situation applies to insurance where the accumulation of the business lines reported in the regulatory filings are not consistent with the breakout of the tables presented below. As a result of not being able to present the information prior to 2012, prospectively an additional year will be added to the tables each reporting year until a ten year table is presented. The Cumulative Number of Reported Claims is shown only for Insurance Casualty as it is impracticable to provide the information for the remaining groups. The reinsurance groups each include pro rata contracts for which ceding companies provide only summary information via a bordereau. This summary information does not include the number of reported claims underlying the paid and reported losses. Therefore, it is not possible to provide this information. The Insurance Property group includes Accident & Health insurance business. This business is written via a master contract and individual claim counts are not provided. This business represents a significant enough portion of the business in the Insurance Property group so that including the number of reported claims for the remaining business would distort any analytics performed on the group. The Cumulative Number of Reported Claims shown for the Insurance Casualty is determined by claim and line of business. For example, a claim event with three claimants in the same line of business is a single claim. However, a claim event with a single claimant that spans two lines of business contributes two claims. The following tables present the ultimate loss and ALAE and the paid loss and ALAE, net of reinsurance for casualty and property, as well as the average annual percentage payout of incurred claims by age, net of reinsurance for each of our disclosed lines of business. U.S. Reinsurance – Casualty Business
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | At December 31, 2019
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Total of |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | IBNR Liabilites |  |
| Incurred Claims and Allocated Claim Adjustment Expenses, Net of reinsurance |  | Plus Expected |  |
| Years Ended December 31, |  | Development |  | Cumulative
| 2012 |  | 2013 |  | 2014 |  | 2015 |  | 2016 |  | 2017 |  | 2018 |  | 2019 |  | on Reported |  | Number of
Accident Year | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  |  |  | Claims |  | Reported Claims
(Dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2012 | $ | 401,018 |  | $ | 395,794 |  | $ | 329,084 |  | $ | 325,134 |  | $ | 321,099 |  | $ | 320,958 |  | $ | 324,139 |  | $ | 312,483 |  |  | 1,539 |  |  | N/A
2013 |  |  |  |  | 310,935 |  |  | 388,323 |  |  | 385,643 |  |  | 388,287 |  |  | 372,409 |  |  | 362,781 |  |  | 355,118 |  |  | 3,851 |  |  | N/A
2014 |  |  |  |  |  |  |  | 367,492 |  |  | 383,657 |  |  | 392,379 |  |  | 375,404 |  |  | 357,608 |  |  | 351,033 |  |  | 2,232 |  |  | N/A
2015 |  |  |  |  |  |  |  |  |  |  | 326,346 |  |  | 354,265 |  |  | 352,983 |  |  | 350,790 |  |  | 337,332 |  |  | 10,184 |  |  | N/A
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  | 330,362 |  |  | 354,822 |  |  | 355,804 |  |  | 343,004 |  |  | 56,353 |  |  | N/A
2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 346,836 |  |  | 347,147 |  |  | 342,896 |  |  | 105,550 |  |  | N/A
2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 484,218 |  |  | 472,532 |  |  | 259,800 |  |  | N/A
2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 767,529 |  |  | 488,182 |  |  | N/A
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 3,281,926 |  |  |  |  |  |
(Some amounts may not reconcile due to rounding.)
| Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
| Years Ended December 31,
| 2012 |  | 2013 |  | 2014 |  | 2015 |  | 2016 |  | 2017 |  | 2018 |  | 2019
Accident Year | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  |
(Dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2012 | $ | 9,986 |  | $ | 38,496 |  | $ | 82,995 |  | $ | 143,510 |  | $ | 187,286 |  | $ | 218,653 |  | $ | 272,046 |  | $ | 286,409
2013 |  |  |  |  | 14,842 |  |  | 48,929 |  |  | 108,801 |  |  | 170,868 |  |  | 211,273 |  |  | 285,756 |  |  | 310,168
2014 |  |  |  |  |  |  |  | 18,809 |  |  | 54,255 |  |  | 110,249 |  |  | 164,552 |  |  | 254,077 |  |  | 294,533
2015 |  |  |  |  |  |  |  |  |  |  | 19,902 |  |  | 53,621 |  |  | 107,458 |  |  | 206,397 |  |  | 257,511
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  | 18,927 |  |  | 58,310 |  |  | 137,219 |  |  | 193,804
2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 25,800 |  |  | 73,023 |  |  | 142,335
2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 63,140 |  |  | 104,690
2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 103,453
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 1,692,901
All outstanding liabilities prior to 2012, net of reinsurance |  |  |  |  |  | 607,385
Liabilities for claims and claim adjustment expenses, net of reinsurance |  |  |  |  | $ | 2,196,410
(Some amounts may not reconcile due to rounding.) |  |  |
|  | Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (unaudited)
Years |  | 1 |  | 2 |  | 3 |  | 4 |  | 5 |  | 6 |  | 7 |  | 8
Casualty |  | 8.4 | % |  | 10.3 | % |  | 17.7 | % |  | 19.6 | % |  | 16.6 | % |  | 14.4 | % |  | 11.7 | % |  | 4.6 | %
U.S. Reinsurance – Property Business
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | At December 31, 2019
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Total of |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | IBNR Liabilites |  |
| Incurred Claims and Allocated Claim Adjustment Expenses, Net of reinsurance |  | Plus Expected |  |
| Years Ended December 31, |  | Development |  | Cumulative
| 2012 |  | 2013 |  | 2014 |  | 2015 |  | 2016 |  | 2017 |  | 2018 |  | 2019 |  | on Reported |  | Number of
Accident Year | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  |  |  | Claims |  | Reported Claims
(Dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2012 | $ | 937,720 |  | $ | 723,851 |  | $ | 723,151 |  | $ | 715,961 |  | $ | 713,237 |  | $ | 706,782 |  | $ | 692,079 |  | $ | 694,576 |  |  | 1,112 |  |  | N/A
2013 |  |  |  |  | 622,108 |  |  | 405,338 |  |  | 352,687 |  |  | 314,637 |  |  | 310,942 |  |  | 308,557 |  |  | 310,199 |  |  | 1,099 |  |  | N/A
2014 |  |  |  |  |  |  |  | 603,258 |  |  | 516,189 |  |  | 437,409 |  |  | 402,129 |  |  | 396,641 |  |  | 397,683 |  |  | 2,674 |  |  | N/A
2015 |  |  |  |  |  |  |  |  |  |  | 673,913 |  |  | 534,178 |  |  | 476,348 |  |  | 451,694 |  |  | 456,195 |  |  | 5,655 |  |  | N/A
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  | 972,881 |  |  | 816,765 |  |  | 797,339 |  |  | 788,551 |  |  | 10,293 |  |  | N/A
2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,564,165 |  |  | 2,117,747 |  |  | 2,231,384 |  |  | 16,538 |  |  | N/A
2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,728,705 |  |  | 1,572,138 |  |  | 88,063 |  |  | N/A
2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 970,831 |  |  | 329,576 |  |  | N/A
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 7,421,556 |  |  |  |  |  |
(Some amounts may not reconcile due to rounding.) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
| Years Ended December 31,
| 2012 |  | 2013 |  | 2014 |  | 2015 |  | 2016 |  | 2017 |  | 2018 |  | 2019
Accident Year | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  |  |  | (unaudited)
(Dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2012 | $ | 242,315 |  | $ | 402,305 |  | $ | 520,244 |  | $ | 598,289 |  | $ | 621,013 |  | $ | 646,572 |  | $ | 651,550 |  | $ | 666,768
2013 |  |  |  |  | 234,464 |  |  | 250,850 |  |  | 269,014 |  |  | 289,130 |  |  | 296,074 |  |  | 300,708 |  |  | 302,756
2014 |  |  |  |  |  |  |  | 189,598 |  |  | 289,430 |  |  | 338,030 |  |  | 362,825 |  |  | 373,060 |  |  | 375,988
2015 |  |  |  |  |  |  |  |  |  |  | 225,655 |  |  | 320,310 |  |  | 378,235 |  |  | 405,614 |  |  | 419,757
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  | 291,462 |  |  | 582,985 |  |  | 681,502 |  |  | 735,678
2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 545,551 |  |  | 1,422,328 |  |  | 1,744,822
2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 409,225 |  |  | 1,064,431
2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 568,556
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 5,878,758
All outstanding liabilities prior to 2012, net of reinsurance |  |  |  |  |  |  |  |  | 29,929
Liabilities for claims and claim adjustment expenses, net of reinsurance |  |  |  |  |  |  |  | $ | 1,572,727
(Some amounts may not reconcile due to rounding.) |  |  |
|  | Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (unaudited)
Years |  | 1 |  | 2 |  | 3 |  | 4 |  | 5 |  | 6 |  | 7 |  | 8
Property |  | 36.5 | % |  | 34.0 | % |  | 13.6 | % |  | 7.7 | % |  | 2.9 | % |  | 2.4 | % |  | 0.7 | % |  | 2.2 | %
International – Casualty Business
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | At December 31, 2019
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Total of |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | IBNR Liabilites |  |
| Incurred Claims and Allocated Claim Adjustment Expenses, Net of reinsurance |  | Plus Expected |  |
| Years Ended December 31, |  | Development |  | Cumulative
| 2012 |  | 2013 |  | 2014 |  | 2015 |  | 2016 |  | 2017 |  | 2018 |  | 2019 |  | on Reported |  | Number of
Accident Year | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  |  |  | Claims |  | Reported Claims
(Dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2012 | $ | 224,614 |  | $ | 146,421 |  | $ | 135,234 |  | $ | 135,230 |  | $ | 117,350 |  | $ | 118,941 |  | $ | 116,283 |  |  | 101,872 |  |  | 6,225 |  |  | N/A
2013 |  |  |  |  | 184,497 |  |  | 168,277 |  |  | 164,973 |  |  | 144,869 |  |  | 141,645 |  |  | 138,355 |  |  | 130,124 |  |  | 13,641 |  |  | N/A
2014 |  |  |  |  |  |  |  | 195,753 |  |  | 187,451 |  |  | 168,865 |  |  | 166,576 |  |  | 166,605 |  |  | 158,117 |  |  | 27,302 |  |  | N/A
2015 |  |  |  |  |  |  |  |  |  |  | 193,714 |  |  | 179,392 |  |  | 172,811 |  |  | 172,061 |  |  | 167,290 |  |  | 30,299 |  |  | N/A
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  | 184,267 |  |  | 180,284 |  |  | 177,979 |  |  | 178,255 |  |  | 46,648 |  |  | N/A
2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 191,492 |  |  | 139,214 |  |  | 150,276 |  |  | 48,308 |  |  | N/A
2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 309,673 |  |  | 319,752 |  |  | 148,582 |  |  | N/A
2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 291,237 |  |  | 189,506 |  |  | N/A
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 1,496,922 |  |  |  |  |  |
(Some amounts may not reconcile due to rounding.)
| Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
| Years Ended December 31,
| 2012 |  | 2013 |  | 2014 |  | 2015 |  | 2016 |  | 2017 |  | 2018 |  | 2019
Accident Year | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  |
(Dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2012 | $ | 18,875 |  | $ | 30,090 |  | $ | 46,015 |  | $ | 56,420 |  | $ | 66,234 |  | $ | 76,921 |  | $ | 83,253 |  | $ | 88,278
2013 |  |  |  |  | 17,865 |  |  | 41,481 |  |  | 54,619 |  |  | 67,605 |  |  | 75,964 |  |  | 86,851 |  |  | 95,799
2014 |  |  |  |  |  |  |  | 25,910 |  |  | 44,805 |  |  | 62,508 |  |  | 73,955 |  |  | 86,607 |  |  | 99,522
2015 |  |  |  |  |  |  |  |  |  |  | 24,237 |  |  | 48,806 |  |  | 69,674 |  |  | 82,465 |  |  | 96,180
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  | 26,446 |  |  | 50,824 |  |  | 70,108 |  |  | 87,191
2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 26,541 |  |  | 52,774 |  |  | 77,614
2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 57,962 |  |  | 97,222
2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 52,808
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 694,615
All outstanding liabilities prior to 2012, net of reinsurance |  |  |  |  |  | 116,104
Liabilities for claims and claim adjustment expenses, net of reinsurance |  |  |  |  | $ | 918,411
(Some amounts may not reconcile due to rounding.)
|  | Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (unaudited)
Years |  | 1 |  | 2 |  | 3 |  | 4 |  | 5 |  | 6 |  | 7 |  | 8
Casualty |  | 16.7 | % |  | 13.9 | % |  | 12.6 | % |  | 8.8 | % |  | 8.0 | % |  | 8.8 | % |  | 6.6 | % |  | 4.9 | %
International – Property Business
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | At December 31, 2019
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Total of |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | IBNR Liabilites |  |
| Incurred Claims and Allocated Claim Adjustment Expenses, Net of reinsurance |  | Plus Expected |  |
| Years Ended December 31, |  | Development |  | Cumulative
| 2012 |  | 2013 |  | 2014 |  | 2015 |  | 2016 |  | 2017 |  | 2018 |  | 2019 |  | on Reported |  | Number of
Accident Year | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  |  |  | Claims |  | Reported Claims
(Dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2012 | $ | 437,946 |  | $ | 397,747 |  | $ | 338,496 |  | $ | 346,116 |  | $ | 342,251 |  | $ | 340,618 |  | $ | 344,626 |  | $ | 358,428 |  |  | 754 |  |  | N/A
2013 |  |  |  |  | 473,767 |  |  | 413,959 |  |  | 374,216 |  |  | 366,182 |  |  | 365,106 |  |  | 362,370 |  |  | 369,876 |  |  | 920 |  |  | N/A
2014 |  |  |  |  |  |  |  | 589,489 |  |  | 541,484 |  |  | 497,317 |  |  | 443,210 |  |  | 445,914 |  |  | 446,412 |  |  | 3,613 |  |  | N/A
2015 |  |  |  |  |  |  |  |  |  |  | 545,360 |  |  | 393,027 |  |  | 388,795 |  |  | 384,816 |  |  | 385,980 |  |  | 4,466 |  |  | N/A
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  | 539,447 |  |  | 543,428 |  |  | 593,567 |  |  | 595,512 |  |  | 15,930 |  |  | N/A
2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 857,100 |  |  | 954,835 |  |  | 970,874 |  |  | 15,997 |  |  | N/A
2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 544,258 |  |  | 574,521 |  |  | 84,717 |  |  | N/A
2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 879,698 |  |  | 389,242 |  |  | N/A
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 4,581,301 |  |  |  |  |  |
(Some amounts may not reconcile due to rounding.)
| Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
| Years Ended December 31,
| 2012 |  | 2013 |  | 2014 |  | 2015 |  | 2016 |  | 2017 |  | 2018 |  | 2019
Accident Year | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  |
(Dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2012 | $ | 126,001 |  | $ | 230,203 |  | $ | 279,611 |  | $ | 303,002 |  | $ | 311,706 |  | $ | 319,112 |  | $ | 324,936 |  | $ | 355,887
2013 |  |  |  |  | 121,461 |  |  | 246,893 |  |  | 294,024 |  |  | 325,155 |  |  | 337,087 |  |  | 341,831 |  |  | 354,102
2014 |  |  |  |  |  |  |  | 162,647 |  |  | 295,731 |  |  | 360,679 |  |  | 392,731 |  |  | 410,715 |  |  | 416,735
2015 |  |  |  |  |  |  |  |  |  |  | 127,511 |  |  | 235,921 |  |  | 299,773 |  |  | 334,271 |  |  | 345,693
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  | 159,425 |  |  | 316,190 |  |  | 447,094 |  |  | 481,029
2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 247,895 |  |  | 641,832 |  |  | 773,790
2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 90,429 |  |  | 330,681
2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 151,893
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 3,209,811
All outstanding liabilities prior to 2012, net of reinsurance |  |  |  |  |  | 54,040
Liabilities for claims and claim adjustment expenses, net of reinsurance |  |  |  |  | $ | 1,425,530
(Some amounts may not reconcile due to rounding.)
|  | Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (unaudited)
Years |  | 1 |  | 2 |  | 3 |  | 4 |  | 5 |  | 6 |  | 7 |  | 8
Property |  | 25.9 | % |  | 34.1 | % |  | 15.6 | % |  | 7.2 | % |  | 3.2 | % |  | 1.5 | % |  | 2.5 | % |  | 8.6 | %
Bermuda – Casualty Business
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | At December 31, 2019
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Total of |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | IBNR Liabilites |  |
| Incurred Claims and Allocated Claim Adjustment Expenses, Net of reinsurance |  | Plus Expected |  |
| Years Ended December 31, |  | Development |  | Cumulative
| 2012 |  | 2013 |  | 2014 |  | 2015 |  | 2016 |  | 2017 |  | 2018 |  | 2019 |  | on Reported |  | Number of
Accident Year | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  |  |  | Claims |  | Reported Claims
(Dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2012 | $ | 284,509 |  | $ | 262,122 |  | $ | 240,949 |  | $ | 230,441 |  | $ | 236,883 |  | $ | 237,315 |  | $ | 241,312 |  | $ | 241,631 |  |  | 30,273 |  |  | N/A
2013 |  |  |  |  | 228,258 |  |  | 258,432 |  |  | 252,704 |  |  | 261,259 |  |  | 250,627 |  |  | 234,668 |  |  | 230,654 |  |  | 33,689 |  |  | N/A
2014 |  |  |  |  |  |  |  | 211,439 |  |  | 244,163 |  |  | 261,523 |  |  | 257,904 |  |  | 234,196 |  |  | 226,434 |  |  | 48,168 |  |  | N/A
2015 |  |  |  |  |  |  |  |  |  |  | 273,468 |  |  | 301,791 |  |  | 307,957 |  |  | 308,042 |  |  | 309,983 |  |  | 82,925 |  |  | N/A
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  | 292,353 |  |  | 351,182 |  |  | 349,522 |  |  | 357,169 |  |  | 114,651 |  |  | N/A
2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 354,391 |  |  | 365,767 |  |  | 365,823 |  |  | 181,139 |  |  | N/A
2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 547,267 |  |  | 546,367 |  |  | 376,744 |  |  | N/A
2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 667,150 |  |  | 551,529 |  |  | N/A
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 2,945,212 |  |  |  |  |  |
(Some amounts may not reconcile due to rounding.) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
| Years Ended December 31,
| 2012 |  | 2013 |  | 2014 |  | 2015 |  | 2016 |  | 2017 |  | 2018 |  | 2019
Accident Year | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  |
(Dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2012 | $ | 12,864 |  | $ | 29,660 |  | $ | 51,278 |  | $ | 75,680 |  | $ | 102,019 |  | $ | 130,159 |  | $ | 149,629 |  | $ | 164,775
2013 |  |  |  |  | 16,996 |  |  | 33,951 |  |  | 52,270 |  |  | 77,270 |  |  | 102,866 |  |  | 124,708 |  |  | 144,010
2014 |  |  |  |  |  |  |  | 13,580 |  |  | 24,915 |  |  | 42,872 |  |  | 67,716 |  |  | 91,981 |  |  | 115,098
2015 |  |  |  |  |  |  |  |  |  |  | 13,643 |  |  | 58,956 |  |  | 93,220 |  |  | 127,930 |  |  | 153,080
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  | 45,671 |  |  | 84,152 |  |  | 121,553 |  |  | 155,397
2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 29,904 |  |  | 64,197 |  |  | 103,915
2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 36,678 |  |  | 93,727
2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 61,239
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 991,242
All outstanding liabilities prior to 2012, net of reinsurance |  |  |  |  |  |  |  |  | 356,351
Liabilities for claims and claim adjustment expenses, net of reinsurance |  |  |  |  |  |  |  | $ | 2,310,321
(Some amounts may not reconcile due to rounding.) |  |  |
|  | Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (unaudited)
Years |  | 1 |  | 2 |  | 3 |  | 4 |  | 5 |  | 6 |  | 7 |  | 8
Casualty |  | 7.8 | % |  | 9.7 | % |  | 9.8 | % |  | 10.5 | % |  | 10.0 | % |  | 10.5 | % |  | 8.2 | % |  | 6.3 | %
Bermuda – Property Business
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | At December 31, 2019
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Total of |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | IBNR Liabilites |  |
| Incurred Claims and Allocated Claim Adjustment Expenses, Net of reinsurance |  | Plus Expected |  |
| Years Ended December 31, |  | Development |  | Cumulative
| 2012 |  | 2013 |  | 2014 |  | 2015 |  | 2016 |  | 2017 |  | 2018 |  | 2019 |  | on Reported |  | Number of
Accident Year | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  |  |  | Claims |  | Reported Claims
(Dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2012 | $ | 238,152 |  | $ | 180,775 |  | $ | 119,168 |  | $ | 117,221 |  | $ | 117,909 |  | $ | 118,999 |  | $ | 117,734 |  | $ | 120,824 |  |  | 593 |  |  | N/A
2013 |  |  |  |  | 217,531 |  |  | 142,666 |  |  | 124,191 |  |  | 115,029 |  |  | 114,252 |  |  | 114,800 |  |  | 112,900 |  |  | 272 |  |  | N/A
2014 |  |  |  |  |  |  |  | 186,492 |  |  | 164,139 |  |  | 138,381 |  |  | 134,776 |  |  | 137,389 |  |  | 136,813 |  |  | 1,092 |  |  | N/A
2015 |  |  |  |  |  |  |  |  |  |  | 192,520 |  |  | 157,711 |  |  | 143,625 |  |  | 146,196 |  |  | 143,266 |  |  | 2,204 |  |  | N/A
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  | 206,279 |  |  | 181,593 |  |  | 186,735 |  |  | 187,607 |  |  | 4,619 |  |  | N/A
2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 393,969 |  |  | 365,405 |  |  | 346,472 |  |  | 10,115 |  |  | N/A
2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 394,542 |  |  | 396,488 |  |  | 85,786 |  |  | N/A
2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 343,602 |  |  | 184,640 |  |  | N/A
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 1,787,971 |  |  |  |  |  |
(Some amounts may not reconcile due to rounding.)
| Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
| Years Ended December 31,
| 2012 |  | 2013 |  | 2014 |  | 2015 |  | 2016 |  | 2017 |  | 2018 |  | 2019
Accident Year | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  |
(Dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2012 | $ | 45,573 |  | $ | 85,175 |  | $ | 90,147 |  | $ | 108,172 |  | $ | 111,772 |  | $ | 113,508 |  | $ | 113,816 |  | $ | 116,429
2013 |  |  |  |  | 34,745 |  |  | 64,560 |  |  | 101,614 |  |  | 108,535 |  |  | 110,378 |  |  | 111,655 |  |  | 111,833
2014 |  |  |  |  |  |  |  | 32,813 |  |  | 86,611 |  |  | 106,564 |  |  | 126,552 |  |  | 129,891 |  |  | 131,455
2015 |  |  |  |  |  |  |  |  |  |  | 33,814 |  |  | 73,041 |  |  | 109,401 |  |  | 131,387 |  |  | 134,862
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  | 26,737 |  |  | 78,499 |  |  | 130,319 |  |  | 167,562
2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 38,106 |  |  | 137,127 |  |  | 250,661
2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 72,580 |  |  | 170,831
2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 66,370
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 1,150,003
All outstanding liabilities prior to 2012, net of reinsurance |  |  |  |  |  | 26,236
Liabilities for claims and claim adjustment expenses, net of reinsurance |  |  |  |  | $ | 664,204
(Some amounts may not reconcile due to rounding.)
|  | Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (unaudited)
Years |  | 1 |  | 2 |  | 3 |  |  | 4 |  | 5 |  | 6 |  |  | 7 |  | 8
Property |  | 19.6 | % |  | 28.5 | % |  | 25.2 | % |  | 14.9 | % |  | 2.4 | % |  | 1.2 | % |  | 0.2 | % |  | 2.2 | %
Insurance – Casualty Business
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | At December 31, 2019
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Total of |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | IBNR Liabilites |  |
| Incurred Claims and Allocated Claim Adjustment Expenses, Net of reinsurance |  | Plus Expected |  |
| Years Ended December 31, |  | Development |  | Cumulative
| 2012 |  | 2013 |  | 2014 |  | 2015 |  | 2016 |  | 2017 |  | 2018 |  | 2019 |  | on Reported |  | Number of
Accident Year | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  |  |  | Claims |  | Reported Claims
(Dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2012 | $ | 349,597 |  | $ | 351,402 |  | $ | 346,953 |  | $ | 348,180 |  | $ | 353,320 |  | $ | 343,931 |  | $ | 346,882 |  | $ | 351,320 |  |  | 20,199 |  |  | 15,769
2013 |  |  |  |  | 393,539 |  |  | 393,390 |  |  | 392,827 |  |  | 393,035 |  |  | 351,295 |  |  | 344,388 |  |  | 350,815 |  |  | 23,120 |  |  | 21,350
2014 |  |  |  |  |  |  |  | 431,068 |  |  | 457,043 |  |  | 454,576 |  |  | 460,642 |  |  | 397,061 |  |  | 397,834 |  |  | 38,872 |  |  | 25,188
2015 |  |  |  |  |  |  |  |  |  |  | 519,509 |  |  | 528,050 |  |  | 535,671 |  |  | 542,176 |  |  | 468,584 |  |  | 54,740 |  |  | 26,896
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  | 553,437 |  |  | 551,321 |  |  | 580,323 |  |  | 615,168 |  |  | 166,117 |  |  | 31,517
2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 612,967 |  |  | 602,985 |  |  | 625,039 |  |  | 226,898 |  |  | 34,701
2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 705,789 |  |  | 711,001 |  |  | 353,806 |  |  | 33,817
2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 850,832 |  |  | 653,255 |  |  | 30,144
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 4,370,593 |  |  |  |  |  |
(Some amounts may not reconcile due to rounding.)
| Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
| Years Ended December 31,
| 2012 |  | 2013 |  | 2014 |  | 2015 |  | 2016 |  | 2017 |  | 2018 |  | 2019
Accident Year | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  |
(Dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2012 | $ | 33,185 |  | $ | 101,288 |  | $ | 157,897 |  | $ | 213,451 |  | $ | 246,407 |  | $ | 272,055 |  | $ | 294,380 |  | $ | 306,833
2013 |  |  |  |  | 33,311 |  |  | 117,037 |  |  | 176,312 |  |  | 224,611 |  |  | 260,184 |  |  | 285,822 |  |  | 303,726
2014 |  |  |  |  |  |  |  | 41,190 |  |  | 124,915 |  |  | 201,646 |  |  | 256,807 |  |  | 297,644 |  |  | 325,856
2015 |  |  |  |  |  |  |  |  |  |  | 44,311 |  |  | 134,730 |  |  | 218,853 |  |  | 291,943 |  |  | 353,232
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  | 54,731 |  |  | 164,225 |  |  | 268,909 |  |  | 342,325
2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 53,898 |  |  | 172,200 |  |  | 280,797
2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 63,492 |  |  | 208,081
2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 72,375
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 2,193,224
All outstanding liabilities prior to 2012, net of reinsurance |  |  |  |  |  |  |  |  | 300,347
Liabilities for claims and claim adjustment expenses, net of reinsurance |  |  |  |  |  |  |  | $ | 2,477,716
(Some amounts may not reconcile due to rounding.) |  |  |
|  | Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (unaudited)
Years |  | 1 |  | 2 |  | 3 |  | 4 |  | 5 |  | 6 |  | 7 |  | 8
Casualty |  | 9.1 | % |  | 19.8 | % |  | 17.4 | % |  | 14.0 | % |  | 10.9 | % |  | 7.2 | % |  | 6.7 | % |  | 3.3 | %
Insurance – Property Business
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | At December 31, 2019
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Total of |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | IBNR Liabilites |  |
| Incurred Claims and Allocated Claim Adjustment Expenses, Net of reinsurance |  | Plus Expected |  |
| Years Ended December 31, |  | Development |  | Cumulative
| 2012 |  | 2013 |  | 2014 |  | 2015 |  | 2016 |  | 2017 |  | 2018 |  | 2019 |  | on Reported |  | Number of
Accident Year | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  |  |  | Claims |  | Reported Claims
(Dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2012 | $ | 106,325 |  | $ | 89,000 |  | $ | 81,747 |  | $ | 82,448 |  | $ | 82,019 |  | $ | 81,802 |  | $ | 81,979 |  | $ | 82,526 |  |  | 68 |  |  | N/A
2013 |  |  |  |  | 112,037 |  |  | 98,106 |  |  | 91,251 |  |  | 92,144 |  |  | 92,233 |  |  | 92,393 |  |  | 92,246 |  |  | 471 |  |  | N/A
2014 |  |  |  |  |  |  |  | 131,679 |  |  | 123,668 |  |  | 119,928 |  |  | 119,464 |  |  | 119,282 |  |  | 119,413 |  |  | 407 |  |  | N/A
2015 |  |  |  |  |  |  |  |  |  |  | 172,904 |  |  | 152,895 |  |  | 143,944 |  |  | 146,780 |  |  | 144,769 |  |  | 405 |  |  | N/A
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  | 290,264 |  |  | 275,154 |  |  | 280,170 |  |  | 291,672 |  |  | 736 |  |  | N/A
2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 496,905 |  |  | 501,407 |  |  | 494,844 |  |  | 13,043 |  |  | N/A
2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 407,855 |  |  | 401,900 |  |  | 14,862 |  |  | N/A
2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 348,590 |  |  | 81,655 |  |  | N/A
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 1,975,961 |  |  |  |  |  |
(Some amounts may not reconcile due to rounding.)
| Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
| Years Ended December 31,
| 2012 |  | 2013 |  | 2014 |  | 2015 |  | 2016 |  | 2017 |  | 2018 |  | 2019
Accident Year | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  |
(Dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2012 | $ | 56,504 |  | $ | 81,772 |  | $ | 80,469 |  | $ | 81,749 |  | $ | 81,891 |  | $ | 81,682 |  | $ | 81,820 |  | $ | 82,457
2013 |  |  |  |  | 68,695 |  |  | 93,110 |  |  | 91,841 |  |  | 92,110 |  |  | 91,720 |  |  | 91,759 |  |  | 91,777
2014 |  |  |  |  |  |  |  | 81,827 |  |  | 116,037 |  |  | 118,220 |  |  | 118,211 |  |  | 118,545 |  |  | 118,660
2015 |  |  |  |  |  |  |  |  |  |  | 102,170 |  |  | 141,280 |  |  | 142,437 |  |  | 145,225 |  |  | 146,719
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  | 162,548 |  |  | 249,517 |  |  | 271,938 |  |  | 289,194
2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 178,666 |  |  | 424,181 |  |  | 458,811
2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 244,772 |  |  | 358,324
2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 227,387
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 1,773,329
All outstanding liabilities prior to 2012, net of reinsurance |  |  |  |  |  |  |  |  | 644
Liabilities for claims and claim adjustment expenses, net of reinsurance |  |  |  |  |  |  |  | $ | 203,277
(Some amounts may not reconcile due to rounding.) |  |  |
|  | Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (unaudited)
Years |  | 1 |  | 2 |  | 3 |  | 4 |  | 5 |  | 6 |  | 7 |  | 8
Property |  | 56.8 | % |  | 35.0 | % |  | 4.7 | % |  | 3.0 | % |  | 0.4 | % |  | - | % |  | 0.1 | % |  | - | %
Reconciliation of the Disclosure of Incurred and Paid Claims Development to the Liability for Unpaid Claims and Claim Adjustment Expenses The reconciliation of the net incurred and paid claims development tables to the liability for claims and claim adjustment expenses in the consolidated statement of financial position is as follows.
| December 31, 2019
(Dollars in thousands) |  |
Net outstanding liabilities |  |
U.S. Reinsurance Casualty | $ | 2,196,410
U.S. Reinsurance Property |  | 1,572,727
International Casualty |  | 918,411
International Property |  | 1,425,530
Bermuda Casualty |  | 2,310,321
Bermuda Property |  | 664,204
Insurance Casualty |  | 2,477,716
Insurance Property |  | 203,277
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance |  | 11,768,596
Reinsurance recoverable on unpaid claims |  |
U.S. Reinsurance Casualty |  | 363,925
U.S. Reinsurance Property |  | 207,967
International Casualty |  | 91,193
International Property |  | 149,803
Bermuda Casualty |  | 9,975
Bermuda Property |  | 68,639
Insurance Casualty |  | 631,827
Insurance Property |  | 117,382
Total reinsurance recoverable on unpaid claims |  | 1,640,712
Insurance lines other than short-duration |  | -
Unallocated claims adjustment expenses |  | 163,563
Other |  | 38,442
|  | 202,005
Total gross liability for unpaid claims and claim adjustment expense | $ | 13,611,313
(Some amounts may not reconcile due to rounding.)
Reserving Methodology The Company maintains reserves equal to our estimated ultimate liability for losses and loss adjustment expense (LAE) for reported and unreported claims for our insurance and reinsurance businesses. Because reserves are based on estimates of ultimate losses and LAE by underwriting or accident year, the Company uses a variety of statistical and actuarial techniques to monitor reserve adequacy over time, evaluate new information as it becomes known, and adjust reserves whenever an adjustment appears warranted. The Company considers many factors when setting reserves including: (1) exposure base and projected ultimate premium; (2) expected loss ratios by product and class of business, which are developed collaboratively by underwriters and actuaries; (3) actuarial methodologies and assumptions which analyze loss reporting and payment experience, reports from ceding companies and historical trends, such as reserving patterns, loss payments, and product mix; (4) current legal interpretations of coverage and liability; and (5) economic conditions. Insurance and reinsurance loss and LAE reserves represent the Company’s best estimate of its ultimate liability. Actual loss and LAE ultimately paid may deviate, perhaps substantially, from such reserves. Net income (gain or loss) will be impacted in a period in which the change in estimated ultimate loss and LAE is recorded. The detailed data required to evaluate ultimate losses for the Company’s insurance business is accumulated from its underwriting and claim systems. Reserving for reinsurance requires evaluation of loss information received from ceding companies. Ceding companies report losses in many forms depending on the type of contract and the agreed or contractual reporting requirements. Generally, pro rata contracts require the submission of a monthly/quarterly account, which includes premium and loss activity for the period with corresponding reserves as established by the ceding company. This information is recorded into the Company’s records. For certain pro rata contracts, the Company may require a detailed loss report for claims that exceed a certain dollar threshold or relate to a particular type of loss. Excess of loss and facultative contracts generally require individual loss reporting with precautionary notices provided when a loss reaches a significant percentage of the attachment point of the contract or when certain causes of loss or types of injury occur. Experienced claims staff handles individual loss reports and supporting claim information. Based on evaluation of a claim, the Company may establish additional case reserves in addition to the case reserves reported by the ceding company. To ensure ceding companies are submitting required and accurate data, Everest’s Underwriting, Claim, Reinsurance Accounting, and Internal Audit Departments perform various reviews of ceding companies, particularly larger ceding companies, including on-site audits. The Company segments both reinsurance and insurance reserves into exposure groupings for actuarial analysis. The Company assigns business to exposure groupings so that the underlying exposures have reasonably homogeneous loss development characteristics and are large enough to facilitate credible estimation of ultimate losses. The Company periodically reviews its exposure groupings and may change groupings over time as business changes. The Company currently uses approximately 200 exposure groupings to develop reserve estimates. One of the key selection characteristics for the exposure groupings is the historical duration of the claims settlement process. Business in which claims are reported and settled relatively quickly are commonly referred to as short tail lines, principally property lines. On the other hand, casualty claims tend to take longer to be reported and settled and casualty lines are generally referred to as long tail lines. Estimates of ultimate losses for shorter tail lines, with the exception of loss estimates for large catastrophic events, generally exhibit less volatility than those for the longer tail lines. The Company uses a variety of actuarial methodologies, such as the expected loss ratio method, chain ladder methods, and Bornhuetter-Ferguson methods, supplemented by judgment where appropriate, to estimate ultimate loss and LAE for each exposure group. Expected Loss Ratio Method: The expected loss ratio method uses earned premium times an expected loss ratio to calculate ultimate losses for a given underwriting or accident year. This method relies entirely on expectation to project ultimate losses with no consideration given to actual losses. As such, it may be appropriate for an immature underwriting or accident year where few, if any, losses have been reported or paid, but less appropriate for a more mature year. Chain Ladder Method: Chain ladder methods use a standard loss development triangle to project ultimate losses. Age-to-age development factors are selected for each development period and combined to calculate age-to-ultimate development factors which are then applied to paid or reported losses to project ultimate losses. This method relies entirely on actual paid or reported losses to project ultimate losses. No other factors such as changes in pricing or other expectations are taken into account. It is most appropriate for groups with homogeneous, stable experience where past development patterns are expected to continue in the future. It is least appropriate for groups which have changed significantly over time or which are more volatile. Bornhuetter-Ferguson Method: The Bornhuetter-Ferguson method is a combination of the expected loss ratio method and the chain ladder method. Ultimate losses are projected based partly on actual paid or reported losses and partly on expectation. Incurred but not reported (IBNR) reserves are calculated using earned premium, an a priori loss ratio, and selected age-to-age development factors and added to actual reported (paid) losses to determine ultimate losses. It is more responsive to actual reported or paid development than the expected loss ratio method but less responsive than the chain ladder method. The reliability of the method depends on the accuracy of the selected a priori loss ratio. Although the Company uses similar actuarial methods for both short tail and long tail lines, the faster reporting of experience for the short tail lines allows the Company to have greater confidence in its estimates of ultimate losses for short tail lines at an earlier stage than for long tail lines. As a result, the Company utilizes, as well, exposure-based methods to estimate its ultimate losses for longer tail lines, especially for immature underwriting or accident years. For both short and long tail lines, the Company supplements these general approaches with analytically based judgments. Key actuarial assumptions contain no explicit provisions for reserve uncertainty nor does the Company supplement the actuarially determined reserves for uncertainty. Carried reserves at each reporting date are the Company’s best estimate of ultimate unpaid losses and LAE at that date. The Company completes detailed reserve studies for each exposure group annually for both reinsurance and insurance operations. The completed annual reserve studies are “rolled-forward” for each accounting period until the subsequent reserve study is completed. Analyzing the roll-forward process involves comparing actual reported losses to expected losses based on the most recent reserve study. The Company analyzes significant variances between actual and expected losses and post adjustments to its reserves as warranted. The Company continues to receive claims under expired insurance and reinsurance contracts asserting injuries and/or damages relating to or resulting from environmental pollution and hazardous substances, including asbestos. Environmental claims typically assert liability for (a) the mitigation or remediation of environmental contamination or (b) bodily injury or property damage caused by the release of hazardous substances into the land, air or water. Asbestos claims typically assert liability for bodily injury from exposure to asbestos or for property damage resulting from asbestos or products containing asbestos. The Company’s reserves include an estimate of the Company’s ultimate liability for A&E claims. The Company’s A&E liabilities emanate from Mt. McKinley’s direct insurance business and Everest Re’s assumed reinsurance business. All of the contracts of insurance and reinsurance, under which the Company has received claims during the past three years, expired more than 20 years ago. There are significant uncertainties surrounding the Company’s reserves for its A&E losses. A&E exposures represent a separate exposure group for monitoring and evaluating reserve adequacy. The following table summarizes incurred losses with respect to A&E reserves on both a gross and net of reinsurance basis for the periods indicated:
| At December 31,
(Dollars in thousands) | 2019 |  | 2018 |  | 2017
Gross basis: |  |  |  |  |  |  |  |
Beginning of period reserves | $ | 347,495 |  | $ | 448,994 |  | $ | 441,111
Incurred losses |  | 2,070 |  |  | (2,473) |  |  | 90,009
Paid losses |  | (91,644) |  |  | (99,026) |  |  | (82,126)
End of period reserves | $ | 257,921 |  | $ | 347,495 |  | $ | 448,994
Net basis: |  |  |  |  |  |  |  |
Beginning of period reserves | $ | 261,456 |  | $ | 318,081 |  | $ | 319,072
Incurred losses |  | - |  |  | - |  |  | 37,137
Paid losses |  | (32,756) |  |  | (56,624) |  |  | (38,128)
End of period reserves | $ | 228,701 |  | $ | 261,456 |  | $ | 318,081
In 2015, the Company sold Mt. McKinley, a Delaware domiciled insurance company and wholly-owned subsidiary of the Company to Clearwater Insurance Company, a Delaware domiciled insurance company. Concurrently with the closing, the Company entered into a retrocession treaty with an affiliate of Clearwater Insurance Company. Per the retrocession treaty, the Company retroceded 100% of the liabilities associated with certain Mt. McKinley policies, which related entirely to A&E business and had been reinsured by Bermuda Re. As consideration for entering into the retrocession treaty, Everest Re Bermuda transferred cash of $140,279 thousand, an amount equal to the net loss reserves as of the closing date. The maximum liability retroceded under the retrocession treaty will be $440,279 thousand, equal to the retrocession payment plus $300,000 thousand. The Company will retain liability for any amounts exceeding the maximum liability retroceded under the retrocession treaty. On December 20, 2019, the retrocession treaty was amended and included a partial commutation. As a result of this amendment and partial commutation, gross A&E reserves and correspondingly reinsurance receivable were reduced by $43,362 thousand. In addition, the maximum liability permitted to be retroceded increased to $,450298 thousand. Reinsurance Receivables. Reinsurance receivables for both paid and recoverable on unpaid losses totaled $1,763,471 thousand and $1,787,648 thousand at December 31, 2019 and December 31, 2018, respectively. At December 31, 2019, $682,845 thousand, or 38.7%, was receivable from Mt. Logan Re collateralized segregated accounts; $147,807 thousand, or 8.4% was receivable from Munich Reinsurance America, Inc. (“Munich Re”); and $95,481 thousand, or 5.4%, was receivable from Zurich Versicherungs Gesellschaft (“Zurich”). No other retrocessionaire accounted for more than 5% of our receivables. Future Policy Benefit Reserve. Activity in the reserve for future policy benefits is summarized for the periods indicated:
| At December 31,
(Dollars in thousands) | 2019 |  | 2018 |  | 2017
Balance at beginning of year | $ | 46,778 |  | $ | 51,014 |  | $ | 55,074
Liabilities assumed |  | 53 |  |  | 110 |  |  | 115
Adjustments to reserves |  | 350 |  |  | 806 |  |  | (437)
Benefits paid in the current year |  | (4,589) |  |  | (5,151) |  |  | (3,738)
Balance at end of year | $ | 42,592 |  | $ | 46,778 |  | $ | 51,014
(Some amounts may not reconcile due to rounding.)

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