XML 27 R10.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Reserve For Losses, LAE And Future Policy Benefit Reserve | 12 Months Ended
--- | ---
Dec. 31, 2021
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. The following table provides a roll forward of the Company’s beginning and ending reserve for losses and LAE is summarized for the periods indicated:
| Years Ended December 31,
(Dollars in thousands) | 2021 |  | 2020 |  | 2019
Gross reserves beginning of period | $ | 16,322,143 |  | $ | 13,531,256 |  | $ | 13,098,158
Less reinsurance recoverables on unpaid losses |  | (1,843,691) |  |  | (1,640,712) |  |  | (1,619,641)
Net reserves beginning of period |  | 14,478,452 |  |  | 11,890,544 |  |  | 11,478,517
Incurred related to: |  |  |  |  |  |  |  |
Current year |  | 7,400,303 |  |  | 6,149,410 |  |  | 4,986,456
Prior years |  | (9,050) |  |  | 401,427 |  |  | (63,558)
Total incurred losses and LAE |  | 7,391,253 |  |  | 6,550,837 |  |  | 4,922,898
Paid related to: |  |  |  |  |  |  |  |
Current year |  | 2,490,645 |  |  | 2,046,260 |  |  | 2,042,246
Prior years |  | 2,226,457 |  |  | 2,077,613 |  |  | 2,519,950
Total paid losses and LAE |  | 4,717,102 |  |  | 4,123,873 |  |  | 4,562,196
Foreign exchange/translation adjustment |  | (89,481) |  |  | 160,944 |  |  | 51,325
Net reserves end of period |  | 17,063,121 |  |  | 14,478,452 |  |  | 11,890,544
Plus reinsurance recoverables on unpaid losses |  | 1,946,365 |  |  | 1,843,691 |  |  | 1,640,712
Gross reserves end of period | $ | 19,009,486 |  | $ | 16,322,143 |  | $ | 13,531,256
(Some amounts may not reconcile due to rounding.) |  |  |
Current year incurred losses were $7.4 billion, $6.1 billion and $5.0 billion in 2021, 2020 and 2019, respectively. The increase in current year incurred losses from 2020 to 2021 was primarily related to an increase of $710.0 million in current year catastrophe losses and an increase of $540.9 million in current year attritional losses. The increase in current year attritional losses was mainly due to the growth in premiums earned, partially mitigated by $511.1 million of losses related to COVID-19 in 2020 which did not recur in 2021. The increase in current year incurred losses from 2019 to 2020 was primarily due to an increase of $772.4 million in current year attritional losses primarily due to higher premiums earned and the previously mentioned $511.1 million of losses related to COVID-19 in 2020, partially offset by a $120.5 million decline in current year catastrophe losses. Incurred prior years losses were ($9.1) million in 2021, $401.4 million in 2020 and ($63.6) million in 2019. The favorable development on prior year reserves of ($9.1) million in 2021 is primarily driven by a commutation and reserve releases within the reinsurance segment. The increase for 2020 primarily related to higher ultimate loss estimates for long-tail casualty business in the reinsurance segment for accident years 2015 to 2018, notably general liability, professional lines, and auto liability. The reserve charge also includes actions on non-CAT property lines, primarily for the 2017 to 2019 accident years and driven by a few large losses to aggregate programs. The decrease for 2019 primarily related to reserve reductions associated with short-tail lines of business and worker’s compensation. The following is information about incurred and paid claims development as of December 31, 2021, 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, 2020 is presented as supplementary information. 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. Reinsurance – Casualty Business
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | At December 31, 2021
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Total of |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | IBNR Liabilities |  |
|  | Incurred Claims and Allocated Claim Adjustment Expenses, Net of reinsurance |  | Plus Expected |  | Cumulative
|  | Years Ended December 31, |  | Development |  | Number of
|  | 2012 |  | 2013 |  | 2014 |  | 2015 |  | 2016 |  | 2017 |  | 2018 |  | 2019 |  | 2020 |  | 2021 |  | on Reported |  | Reported
Accident Year |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  |  |  | Claims |  | Claims
(Dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2012 |  | $ | 913,235 |  | $ | 806,271 |  | $ | 707,089 |  | $ | 692,497 |  | $ | 676,252 |  | $ | 677,924 |  | $ | 682,447 |  | $ | 656,696 |  | $ | 635,281 |  | $ | 626,752 |  |  | 22,382 |  |  | N/A
2013 |  |  |  |  |  | 726,240 |  |  | 816,634 |  |  | 804,255 |  |  | 794,549 |  |  | 764,362 |  |  | 735,487 |  |  | 715,578 |  |  | 715,519 |  |  | 710,499 |  |  | 21,566 |  |  | N/A
2014 |  |  |  |  |  |  |  |  | 776,680 |  |  | 815,861 |  |  | 822,646 |  |  | 798,868 |  |  | 757,392 |  |  | 734,567 |  |  | 747,748 |  |  | 745,601 |  |  | 31,868 |  |  | N/A
2015 |  |  |  |  |  |  |  |  |  |  |  | 795,662 |  |  | 836,303 |  |  | 831,492 |  |  | 828,634 |  |  | 812,346 |  |  | 848,989 |  |  | 849,230 |  |  | 75,907 |  |  | N/A
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 808,757 |  |  | 885,069 |  |  | 882,087 |  |  | 877,209 |  |  | 952,811 |  |  | 954,364 |  |  | 129,447 |  |  | N/A
2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 894,903 |  |  | 854,313 |  |  | 861,180 |  |  | 942,467 |  |  | 950,788 |  |  | 199,152 |  |  | N/A
2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,340,402 |  |  | 1,337,894 |  |  | 1,414,891 |  |  | 1,445,481 |  |  | 466,230 |  |  | N/A
2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,721,440 |  |  | 1,786,629 |  |  | 1,788,763 |  |  | 907,117 |  |  | N/A
2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,943,096 |  |  | 1,914,757 |  |  | 1,482,711 |  |  | N/A
2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 2,513,341 |  |  | 1,951,060 |  |  | N/A
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 12,499,575 |  |  |  |  |  |
|  | Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
|  | Years Ended December 31,
|  | 2012 |  | 2013 |  | 2014 |  | 2015 |  | 2016 |  | 2017 |  | 2018 |  | 2019 |  | 2020 |  | 2021
Accident Year |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  |
(Dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2012 |  | $ | 41,756 |  | $ | 98,010 |  | $ | 179,993 |  | $ | 275,548 |  | $ | 355,728 |  | $ | 425,397 |  | $ | 504,848 |  | $ | 539,251 |  | $ | 549,564 |  | $ | 568,922
2013 |  |  |  |  |  | 49,581 |  |  | 123,813 |  |  | 214,769 |  |  | 314,826 |  |  | 389,143 |  |  | 496,373 |  |  | 548,578 |  |  | 574,706 |  |  | 603,638
2014 |  |  |  |  |  |  |  |  | 57,942 |  |  | 122,673 |  |  | 214,072 |  |  | 304,645 |  |  | 430,751 |  |  | 507,146 |  |  | 553,006 |  |  | 594,417
2015 |  |  |  |  |  |  |  |  |  |  |  | 57,114 |  |  | 160,199 |  |  | 267,841 |  |  | 413,852 |  |  | 503,917 |  |  | 573,637 |  |  | 621,569
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 90,184 |  |  | 190,818 |  |  | 326,011 |  |  | 433,583 |  |  | 548,345 |  |  | 629,704
2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 81,099 |  |  | 188,542 |  |  | 322,029 |  |  | 464,179 |  |  | 592,780
2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 154,910 |  |  | 290,083 |  |  | 463,099 |  |  | 638,435
2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 210,530 |  |  | 343,081 |  |  | 526,547
2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 190,530 |  |  | 268,027
2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 216,969
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 5,261,006
All outstanding liabilities prior to 2012, net of reinsurance |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 824,128
Liabilities for claims and claim adjustment expenses, net of reinsurance |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 8,062,697
|  | Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (unaudited)
Years |  | 1 |  | 2 |  | 3 |  | 4 |  | 5 |  | 6 |  | 7 |  | 8 |  | 9 |  | 10
Casualty |  | 9.2 | % |  | 8.5 | % |  | 12.4 | % |  | 13.6 | % |  | 12.7 | % |  | 10.4 | % |  | 7.7 | % |  | 4.9 | % |  | 2.9 | % |  | 3.1 | %
Reinsurance – Property Business
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | At December 31, 2021
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Total of |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | IBNR Liabilities |  |
|  | Incurred Claims and Allocated Claim Adjustment Expenses, Net of reinsurance |  | Plus Expected |  | Cumulative
|  | Years Ended December 31, |  | Development |  | Number of
|  | 2012 |  | 2013 |  | 2014 |  | 2015 |  | 2016 |  | 2017 |  | 2018 |  | 2019 |  | 2020 |  | 2021 |  | on Reported |  | Reported
Accident Year |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  |  |  | Claims |  | Claims
(Dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2012 |  | $ | 1,595,581 |  | $ | 1,282,432 |  | $ | 1,159,361 |  | $ | 1,158,272 |  | $ | 1,152,163 |  | $ | 1,144,478 |  | $ | 1,132,514 |  | $ | 1,151,907 |  | $ | 1,154,729 |  | $ | 1,152,601 |  |  | 10,597 |  |  |
2013 |  |  |  |  |  | 1,302,966 |  |  | 954,434 |  |  | 843,829 |  |  | 787,484 |  |  | 781,908 |  |  | 777,334 |  |  | 784,582 |  |  | 782,978 |  |  | 782,285 |  |  | 2,615 |  |  |
2014 |  |  |  |  |  |  |  |  | 1,366,519 |  |  | 1,207,588 |  |  | 1,055,896 |  |  | 963,339 |  |  | 963,168 |  |  | 964,131 |  |  | 956,387 |  |  | 956,892 |  |  | 5,114 |  |  |
2015 |  |  |  |  |  |  |  |  |  |  |  | 1,408,609 |  |  | 1,072,514 |  |  | 996,351 |  |  | 970,290 |  |  | 973,022 |  |  | 965,298 |  |  | 967,102 |  |  | 6,102 |  |  |
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,725,574 |  |  | 1,560,324 |  |  | 1,596,178 |  |  | 1,590,207 |  |  | 1,567,764 |  |  | 1,568,689 |  |  | 19,440 |  |  |
2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 2,799,762 |  |  | 3,422,515 |  |  | 3,533,258 |  |  | 3,662,032 |  |  | 3,707,890 |  |  | 9,592 |  |  |
2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 2,650,359 |  |  | 2,526,001 |  |  | 2,527,900 |  |  | 2,465,788 |  |  | 40,866 |  |  |
2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 2,122,117 |  |  | 2,153,458 |  |  | 2,098,665 |  |  | 176,930 |  |  |
2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 2,453,269 |  |  | 2,526,034 |  |  | 616,803 |  |  |
2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 2,802,843 |  |  | 1,445,812 |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 19,028,789 |  |  |  |  |  |
|  | Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
|  | Years Ended December 31,
|  | 2012 |  | 2013 |  | 2014 |  | 2015 |  | 2016 |  | 2017 |  | 2018 |  | 2019 |  | 2020 |  | 2021
Accident Year |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  |
(Dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2012 |  | $ | 404,621 |  | $ | 703,440 |  | $ | 896,790 |  | $ | 990,221 |  | $ | 1,024,725 |  | $ | 1,058,690 |  | $ | 1,069,836 |  | $ | 1,092,694 |  | $ | 1,101,861 |  | $ | 1,106,461
2013 |  |  |  |  |  | 384,956 |  |  | 530,340 |  |  | 663,255 |  |  | 720,662 |  |  | 741,032 |  |  | 751,190 |  |  | 760,516 |  |  | 761,755 |  |  | 762,225
2014 |  |  |  |  |  |  |  |  | 378,154 |  |  | 670,226 |  |  | 805,888 |  |  | 882,489 |  |  | 911,719 |  |  | 921,984 |  |  | 928,821 |  |  | 931,494
2015 |  |  |  |  |  |  |  |  |  |  |  | 386,340 |  |  | 626,200 |  |  | 787,370 |  |  | 875,529 |  |  | 904,827 |  |  | 926,506 |  |  | 937,534
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 489,865 |  |  | 1,035,935 |  |  | 1,336,301 |  |  | 1,460,922 |  |  | 1,520,320 |  |  | 1,539,568
2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 850,375 |  |  | 2,277,663 |  |  | 2,858,044 |  |  | 3,259,500 |  |  | 3,477,657
2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 558,319 |  |  | 1,563,718 |  |  | 1,941,282 |  |  | 2,125,022
2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 769,261 |  |  | 1,365,923 |  |  | 1,703,956
2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 606,518 |  |  | 1,385,266
2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 687,773
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 14,656,957
All outstanding liabilities prior to 2012, net of reinsurance |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 519,855
Liabilities for claims and claim adjustment expenses, net of reinsurance |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 4,891,687
|  | Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (unaudited)
Years |  | 1 |  | 2 |  | 3 |  | 4 |  | 5 |  | 6 |  | 7 |  | 8 |  | 9 |  | 10
Property |  | 29.0 | % |  | 32.9 | % |  | 16.2 | % |  | 8.8 | % |  | 4.3 | % |  | 1.8 | % |  | 1.0 | % |  | 0.9 | % |  | 0.5 | % |  | 0.4 | %
Insurance – Casualty Business
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | At December 31, 2021
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Total of |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | IBNR Liabilities |  |
|  | Incurred Claims and Allocated Claim Adjustment Expenses, Net of reinsurance |  | Plus Expected |  | Cumulative
|  | Years Ended December 31, |  | Development |  | Number of
|  | 2012 |  | 2013 |  | 2014 |  | 2015 |  | 2016 |  | 2017 |  | 2018 |  | 2019 |  | 2020 |  | 2021 |  | on Reported |  | Reported
Accident Year |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  |  |  | Claims |  | Claims
(Dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2012 |  | $ | 349,721 |  | $ | 351,526 |  | $ | 347,065 |  | $ | 348,260 |  | $ | 353,394 |  | $ | 344,007 |  | $ | 346,980 |  | $ | 351,441 |  | $ | 353,942 |  | $ | 354,697 |  |  | 31,942 |  |  | 15,782
2013 |  |  |  |  |  | 393,689 |  |  | 393,519 |  |  | 392,955 |  |  | 393,129 |  |  | 351,380 |  |  | 344,479 |  |  | 350,927 |  |  | 349,965 |  |  | 350,107 |  |  | 29,280 |  |  | 21,360
2014 |  |  |  |  |  |  |  |  | 431,297 |  |  | 457,270 |  |  | 454,801 |  |  | 460,862 |  |  | 397,307 |  |  | 398,126 |  |  | 399,021 |  |  | 397,889 |  |  | 44,649 |  |  | 25,265
2015 |  |  |  |  |  |  |  |  |  |  |  | 519,869 |  |  | 528,468 |  |  | 536,106 |  |  | 542,637 |  |  | 469,081 |  |  | 472,079 |  |  | 472,700 |  |  | 56,840 |  |  | 27,044
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 554,134 |  |  | 552,057 |  |  | 581,114 |  |  | 616,641 |  |  | 554,151 |  |  | 542,750 |  |  | 86,737 |  |  | 31,674
2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 614,528 |  |  | 604,615 |  |  | 627,426 |  |  | 659,359 |  |  | 635,622 |  |  | 156,575 |  |  | 35,627
2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 708,122 |  |  | 714,065 |  |  | 752,894 |  |  | 766,992 |  |  | 193,686 |  |  | 36,041
2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 852,407 |  |  | 855,266 |  |  | 888,280 |  |  | 288,688 |  |  | 39,219
2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 997,126 |  |  | 1,058,272 |  |  | 620,239 |  |  | 34,983
2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,196,128 |  |  | 782,844 |  |  | 31,679
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 6,663,437 |  |  |  |  |  |
|  | Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
|  | Years Ended December 31,
|  | 2012 |  | 2013 |  | 2014 |  | 2015 |  | 2016 |  | 2017 |  | 2018 |  | 2019 |  | 2020 |  | 2021
Accident Year |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  |
(Dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2012 |  | $ | 33,194 |  | $ | 101,300 |  | $ | 157,924 |  | $ | 213,488 |  | $ | 246,454 |  | $ | 272,113 |  | $ | 294,442 |  | $ | 306,934 |  | $ | 311,863 |  | $ | 317,249
2013 |  |  |  |  |  | 33,314 |  |  | 117,046 |  |  | 176,326 |  |  | 224,633 |  |  | 260,222 |  |  | 285,872 |  |  | 303,784 |  |  | 310,927 |  |  | 317,111
2014 |  |  |  |  |  |  |  |  | 41,194 |  |  | 124,936 |  |  | 201,688 |  |  | 256,885 |  |  | 297,760 |  |  | 326,008 |  |  | 339,484 |  |  | 350,976
2015 |  |  |  |  |  |  |  |  |  |  |  | 44,317 |  |  | 134,760 |  |  | 218,987 |  |  | 292,111 |  |  | 353,440 |  |  | 382,743 |  |  | 414,069
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 54,740 |  |  | 164,357 |  |  | 269,127 |  |  | 342,880 |  |  | 402,518 |  |  | 445,429
2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 53,918 |  |  | 172,415 |  |  | 281,339 |  |  | 381,169 |  |  | 457,197
2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 63,587 |  |  | 208,432 |  |  | 319,559 |  |  | 447,358
2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 72,394 |  |  | 234,915 |  |  | 398,600
2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 79,658 |  |  | 248,000
2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 109,311
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 3,505,299
All outstanding liabilities prior to 2012, net of reinsurance |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 226,081
Liabilities for claims and claim adjustment expenses, net of reinsurance |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 3,384,219
|  | Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (unaudited)
Years |  | 1 |  | 2 |  | 3 |  | 4 |  | 5 |  | 6 |  | 7 |  | 8 |  | 9 |  | 10
Casualty |  | 8.8 | % |  | 18.8 | % |  | 17.4 | % |  | 15.2 | % |  | 11.1 | % |  | 7.2 | % |  | 5.4 | % |  | 2.8 | % |  | 1.6 | % |  | 1.5 | %
Insurance – Property Business
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | At December 31, 2021
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Total of |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | IBNR Liabilities |  |
|  | Incurred Claims and Allocated Claim Adjustment Expenses, Net of reinsurance |  | Plus Expected |  | Cumulative
|  | Years Ended December 31, |  | Development |  | Number of
|  | 2012 |  | 2013 |  | 2014 |  | 2015 |  | 2016 |  | 2017 |  | 2018 |  | 2019 |  | 2020 |  | 2021 |  | on Reported |  | Reported
Accident Year |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  |  |  | Claims |  | Claims
(Dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2012 |  | $ | 106,363 |  | $ | 89,038 |  | $ | 81,773 |  | $ | 82,475 |  | $ | 82,045 |  | $ | 81,828 |  | $ | 82,005 |  | $ | 82,552 |  | $ | 82,613 |  | $ | 82,685 |  |  | 5 |  |  | N/A
2013 |  |  |  |  |  | 112,082 |  |  | 98,203 |  |  | 91,334 |  |  | 92,222 |  |  | 92,311 |  |  | 92,472 |  |  | 92,326 |  |  | 91,893 |  |  | 92,035 |  |  | 94 |  |  | N/A
2014 |  |  |  |  |  |  |  |  | 131,752 |  |  | 123,744 |  |  | 119,989 |  |  | 119,523 |  |  | 119,344 |  |  | 119,481 |  |  | 119,138 |  |  | 119,428 |  |  | 49 |  |  | N/A
2015 |  |  |  |  |  |  |  |  |  |  |  | 173,059 |  |  | 153,028 |  |  | 144,081 |  |  | 146,930 |  |  | 144,919 |  |  | 146,626 |  |  | 146,559 |  |  | 47 |  |  | N/A
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 291,182 |  |  | 275,740 |  |  | 280,797 |  |  | 292,750 |  |  | 295,140 |  |  | 297,417 |  |  | 380 |  |  | N/A
2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 498,044 |  |  | 502,601 |  |  | 496,195 |  |  | 499,323 |  |  | 493,370 |  |  | 480 |  |  | N/A
2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 409,168 |  |  | 403,013 |  |  | 398,243 |  |  | 411,160 |  |  | 693 |  |  | N/A
2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 349,061 |  |  | 351,599 |  |  | 355,692 |  |  | 5,808 |  |  | N/A
2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 599,613 |  |  | 507,281 |  |  | 45,162 |  |  | N/A
2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 649,738 |  |  | 191,897 |  |  | N/A
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 3,155,364 |  |  |  |  |  |
|  | Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
|  | Years Ended December 31,
|  | 2012 |  | 2013 |  | 2014 |  | 2015 |  | 2016 |  | 2017 |  | 2018 |  | 2019 |  | 2020 |  | 2021
Accident Year |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  | (unaudited) |  |
(Dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2012 |  | $ | 56,506 |  | $ | 81,798 |  | $ | 80,495 |  | $ | 81,776 |  | $ | 81,917 |  | $ | 81,708 |  | $ | 81,846 |  | $ | 82,483 |  | $ | 82,612 |  | $ | 82,669
2013 |  |  |  |  |  | 68,711 |  |  | 93,179 |  |  | 91,919 |  |  | 92,189 |  |  | 91,798 |  |  | 91,838 |  |  | 91,855 |  |  | 91,864 |  |  | 91,942
2014 |  |  |  |  |  |  |  |  | 81,853 |  |  | 116,089 |  |  | 118,277 |  |  | 118,270 |  |  | 118,605 |  |  | 118,724 |  |  | 118,799 |  |  | 118,808
2015 |  |  |  |  |  |  |  |  |  |  |  | 102,239 |  |  | 141,394 |  |  | 142,560 |  |  | 145,367 |  |  | 146,866 |  |  | 146,954 |  |  | 147,052
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 162,906 |  |  | 250,034 |  |  | 272,535 |  |  | 290,278 |  |  | 293,247 |  |  | 294,031
2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 179,403 |  |  | 425,384 |  |  | 460,130 |  |  | 482,817 |  |  | 486,538
2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 245,840 |  |  | 359,276 |  |  | 379,654 |  |  | 404,819
2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 227,630 |  |  | 317,766 |  |  | 339,411
2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 293,331 |  |  | 415,518
2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 328,207
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 2,708,995
All outstanding liabilities prior to 2012, net of reinsurance |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 557
Liabilities for claims and claim adjustment expenses, net of reinsurance |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 446,926
|  | Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (unaudited)
Years |  | 1 |  | 2 |  | 3 |  | 4 |  | 5 |  | 6 |  | 7 |  | 8 |  | 9 |  | 10
Property |  | 55.4 | % |  | 31.2 | % |  | 5.0 | % |  | 4.3 | % |  | 2.6 | % |  | 0.6 | % |  | 0.6 | % |  | 0.2 | % |  | 0.1 | % |  | 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, 2021
(Dollars in thousands) |  |
Net outstanding liabilities |  |
Reinsurance Casualty | $ | 8,062,697
Reinsurance Property |  | 4,891,687
Insurance Casualty |  | 3,384,219
Insurance Property |  | 446,926
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance |  | 16,785,529
Reinsurance recoverable on unpaid claims |  |
Reinsurance Casualty |  | 293,110
Reinsurance Property |  | 507,097
Insurance Casualty |  | 973,182
Insurance Property |  | 172,977
Total reinsurance recoverable on unpaid claims |  | 1,946,365
Insurance lines other than short-duration |  | -
Unallocated claims adjustment expenses |  | 235,391
Other |  | 42,199
|  | 277,590
Total gross liability for unpaid claims and claim adjustment expense | $ | 19,009,486
(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 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. Certain reserves, including losses from widespread catastrophic events and COVID-19 related losses, cannot be estimated using traditional actuarial methods. These types of events are reserved for separately using a variety of statistical and actuarial techniques. We estimate losses for these types of events based on information derived from catastrophe models, quantitative and qualitative exposure analyses, reports and communications from ceding companies and development patterns for historically similar events, where available. 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 Insurance Company’s, a former wholly owned subsidiary that was sold in 2015, 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) | 2021 |  | 2020 |  | 2019
Gross basis: |  |  |  |  |  |  |  |
Beginning of period reserves | $ | 219,341 |  | $ | 257,921 |  | $ | 347,495
Incurred losses |  | 10,862 |  |  | 1,540 |  |  | 2,070
Paid losses |  | (55,048) |  |  | (40,120) |  |  | (91,644)
End of period reserves | $ | 175,155 |  | $ | 219,341 |  | $ | 257,921
Net basis: |  |  |  |  |  |  |  |
Beginning of period reserves | $ | 198,255 |  | $ | 228,701 |  | $ | 261,456
Incurred losses |  | - |  |  | (772) |  |  | -
Paid losses |  | (42,139) |  |  | (29,674) |  |  | (32,756)
End of period reserves | $ | 156,115 |  | $ | 198,255 |  | $ | 228,701
In 2015, the Company sold Mt. McKinley to Clearwater Insurance Company, a subsidiary of Fairfax Financial. 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 $140.3 million, an amount equal to the net loss reserves as of the closing date. The maximum liability retroceded under the retrocession treaty will be $440.3 million, equal to the retrocession payment plus $300.0 million. 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 $43.4 million. In addition, the maximum liability permitted to be retroceded increased to $450.3 million. Reinsurance Recoverables. Reinsurance recoverables for both paid unpaid losses totaled $2.1 billion and $2.0 billion at December 31, 2021 and December 31, 2020, respectively. At December 31, 2021, $691.4 million, or 33.7%, was receivable from Mt. Logan Re collateralized segregated accounts; $221.9 million, or 10.8%, was receivable from Munich Reinsurance America, Inc. and $115.1 million, or 5.6%, was recoverable from Endurance Reinsurance Corporation of America. 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) | 2021 |  | 2020 |  | 2019
Balance at beginning of year | $ | 37,723 |  | $ | 42,592 |  | $ | 46,778
Liabilities assumed |  | 27 |  |  | 35 |  |  | 53
Adjustments to reserves |  | 719 |  |  | (1,113) |  |  | 350
Benefits paid in the current year |  | (2,800) |  |  | (3,791) |  |  | (4,589)
Balance at end of year | $ | 35,669 |  | $ | 37,723 |  | $ | 42,592
(Some amounts may not reconcile due to rounding.)

X
- Definition Reserve For Losses LAE And Future Policy Benefit Reserve [Abstract] + References No definition available. + Details
Name: | re_ReserveForLossesLaeAndFuturePolicyBenefitReserveAbstract
Namespace Prefix: | re_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

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: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration