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Reserve for Claims and Claim Expenses | 12 Months Ended
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Dec. 31, 2015
Insurance Loss Reserves [Abstract] |
Reserve for Claims and Claim Expenses | RESERVE FOR CLAIMS AND CLAIM EXPENSES The Company uses statistical and actuarial methods to estimate ultimate expected claims and claim expenses. The period of time from the reporting of a claim to the Company and the settlement of the Company’s liability may be many years. During this period, additional facts and trends will be revealed. As these factors become apparent, case reserves will be adjusted, sometimes requiring an increase or decrease in the overall reserve for claims and claim expenses of the Company, and at other times requiring a reallocation of incurred but not reported (“IBNR”) reserves to specific case reserves or additional case reserves. These estimates are reviewed regularly, and such adjustments, if any, are reflected in the results of operations in the period in which they become known and are accounted for as changes in estimates. Adjustments to the Company’s reserve for claims and claim expenses can impact current year net income (loss) by decreasing net income or increasing net loss if the estimates of prior years claims and claim expense reserves prove to be insufficient or by increasing net income or decreasing net loss if the estimates of prior years claims and claim expense reserves prove to be overstated. The Company’s estimates of claims and claim expenses are also based in part upon the estimation of claims resulting from natural and man-made disasters such as hurricanes, earthquakes, tsunamis, tornadoes, floods, winter storms, terrorist attacks and other catastrophic events. Estimation by the Company of claims resulting from catastrophic events is inherently difficult because of the potential severity of property catastrophe claims. Additionally, the Company has recently increased its specialty reinsurance business but does not have the benefit of a significant amount of its own historical experience in certain of these lines of business. Therefore, the Company uses both proprietary and commercially available models, as well as historical (re)insurance industry claims experience, for purposes of evaluating future trends and providing an estimate of ultimate claims costs. Activity in the liability for unpaid claims and claim expenses is summarized as follows:
| Year ended December 31, | 2015 |  | 2014 |  | 2013 |
| Net reserves as of January 1 | $ | 1,345,816 |  |  | $ | 1,462,705 |  |  | $ | 1,686,865 |  |
| Net incurred related to: |  |  |  |  |  |
| Current year | 610,685 |  |  | 341,745 |  |  | 315,241 |  |
| Prior years | (162,447 | ) |  | (143,798 | ) |  | (143,954 | ) |
| Total net incurred | 448,238 |  |  | 197,947 |  |  | 171,287 |  |
| Net paid related to: |  |  |  |  |  |
| Current year | 95,747 |  |  | 39,830 |  |  | 32,212 |  |
| Prior years | 459,905 |  |  | 275,006 |  |  | 363,235 |  |
| Total net paid | 555,652 |  |  | 314,836 |  |  | 395,447 |  |
| Amounts acquired (1) | 1,394,117 |  |  | — |  |  | — |  |
| Net reserves as of December 31 | 2,632,519 |  |  | 1,345,816 |  |  | 1,462,705 |  |
| Reinsurance recoverable as of December 31 | 134,526 |  |  | 66,694 |  |  | 101,025 |  |
| Gross reserves as of December 31 | $ | 2,767,045 |  |  | $ | 1,412,510 |  |  | $ | 1,563,730 |  |
(1) Represents the fair value of Platinum's reserve for claims and claim expenses and reinsurance recoverable acquired at March 2, 2015. The following table details the Company’s prior year development by segment of its liability for unpaid claims and claim expenses:
| Year ended December 31, | 2015 |  | 2014 |  | 2013 |
| Catastrophe Reinsurance | $ | (70,377 | ) |  | $ | (65,511 | ) |  | $ | (102,037 | ) |
| Specialty Reinsurance | (91,912 | ) |  | (55,909 | ) |  | (34,111 | ) |
| Lloyd’s | 340 |  |  | (16,241 | ) |  | (8,256 | ) |
| Other | (498 | ) |  | (6,137 | ) |  | 450 |  |
| Total favorable development of prior accident years net claims and claim expenses | $ | (162,447 | ) |  | $ | (143,798 | ) |  | $ | (143,954 | ) |
Catastrophe Reinsurance Segment The Company reviews substantially all of its catastrophe reinsurance claims and claim expense reserves quarterly. The Company’s quarterly review procedures include identifying events that have occurred up to the latest balance sheet date, determining the Company’s best estimate of the ultimate expected cost to settle all claims and administrative costs associated with those new events which have arisen during the reporting period, reviewing the ultimate expected cost to settle claims and administrative costs associated with those events which occurred during previous periods, and considering new estimation techniques, such as additional actuarial methods or other statistical techniques, that can assist the Company in developing its best estimate. This process is judgmental in that it involves reviewing changes in paid and reported claims each period and adjusting the Company’s estimates of the ultimate expected claims for each event where there are developments that are different from the Company’s previous expectations. If the Company determines that adjustments to an earlier estimate are appropriate, such adjustments are recorded in the period in which they are identified. The level of the Company’s claims associated with certain catastrophes can be very large. As a result, small percentage changes in the estimated ultimate claims of large catastrophic events can significantly impact the Company’s reserves for claims and claim expenses in subsequent periods. Specialty Reinsurance Segment When developing the Company’s claims and claims expense reserves for its Specialty Reinsurance segment, the Company considers several actuarial techniques such as the expected loss ratio method, the Bornhuetter-Ferguson actuarial method and the paid and reported chain ladder actuarial method. For classes of business where the Company lacks significant historical claims experience, it principally uses the Bornhuetter-Ferguson actuarial method. This method allows for greater weight to be applied to expected results in periods where little or no actual experience is available, and, hence, is less susceptible to the potential pitfall of being excessively swayed by one year or one quarter of actual paid and/or reported loss data. This method uses initial expected loss ratio expectations to the extent that the expected paid or reported losses are zero, and it assumes that past experience is not fully representative of the future. As the Company’s reserves for claims and claim expenses age, and actual claims experience becomes available, this method places less weight on expected experience and places more weight on actual experience. This experience, which represents the difference between expected reported claims and actual reported claims is reflected in the respective reporting period as a change in estimate. For classes of business where the Company has significant historical claims experience, estimates of ultimate losses that are not related to a specific event are generally initially determined based on the loss ratio method applied to each underwriting year and to each class of business. The selected ultimate losses are determined by multiplying the initial expected loss ratio by the earned premium. The initial expected loss ratios are key inputs that involve management judgment and are based on a variety of factors, including: (1) contract by contract expected loss ratios developed during the Company’s pricing process; and (2) the Company’s historical loss ratios and combined ratios adjusted for rate change and trend. These judgments take into account management’s view of past, current and future factors that may influence ultimate losses, including: (1) market conditions; (2) changes in the business underwritten; (3) changes in timing of the emergence of claims; and (4) other factors that may influence ultimate loss ratios and losses. The determination of when reported losses are sufficient and credible to warrant selection of an ultimate loss ratio different from the initial expected loss ratios also requires judgment. The Company generally makes adjustments for reported loss experience indicating unfavorable variances from initial expected loss ratios sooner than reported loss experience indicating favorable variances. This is because the reporting of losses in excess of expectations tends to have greater credibility than an absence or lower than expected level of reported losses. Over time, as a greater number of claims are reported and the credibility of reported losses improves, actuarial estimates of IBNR are based on the Bornhuetter-Ferguson actuarial method, as discussed above, and the reported chain ladder actuarial method. The reported chain ladder actuarial method utilizes actual reported losses and a loss development pattern to determine an estimate of ultimate losses that is independent of the initial expected ultimate loss ratio and earned premium. The Company believes this technique is most appropriate when there are a large number of reported losses with significant statistical credibility and a relatively stable loss development pattern. Loss development patterns are determined utilizing actuarial analysis, including management’s judgment, and are based on historical patterns of paid losses and reporting of case reserves to us, as well as industry loss development patterns. Information that may cause future loss development patterns to differ from historical loss development patterns is considered and reflected in our selected loss development patterns as appropriate. For certain reinsurance contracts, historical loss development patterns may be developed from ceding company data or other sources. In addition, certain of our specialty reinsurance coverages may be impacted by natural and man-made catastrophes. We estimate claim reserves for these losses after the event giving rise to these losses occurs, following a process that is similar to our Catastrophe Reinsurance segment described above. The Company reevaluates its actuarial reserving techniques on a periodic basis and reviews substantially all of its specialty reinsurance claims and claim expense reserves quarterly. Typically, the quarterly review procedures include reviewing paid and reported claims in the most recent reporting period, reviewing the development of paid and reported claims from prior periods, and reviewing the Company’s overall experience by underwriting year and in the aggregate. The Company monitors its expected ultimate claims and claim expense ratios and expected claims reporting assumptions on a quarterly basis and compares them to its actual experience. These actuarial assumptions are generally reviewed annually, based on input from the Company’s actuaries, underwriters, claims personnel and finance professionals, although adjustments may be made more frequently if needed. Assumption changes are made to adjust for changes in the pricing and terms of coverage the Company provides, changes in industry results for similar business, as well as its actual experience, to the extent the Company has enough data to rely on its own experience. If the Company determines that adjustments to an earlier estimate are appropriate, such adjustments are recorded in the period in which they are identified. Lloyd’s Segment The Company principally uses the Bornhuetter-Ferguson actuarial method to estimate claims and claim expenses within its Lloyd’s segment for its property and casualty (re)insurance contracts and quota share reinsurance business as it lacks significant historical claims information for this business. The comments discussed above relating to the Company’s reserving techniques and processes for the Company’s Specialty Reinsurance segment also apply to the Company’s Lloyd’s segment. In addition, certain of the Company’s coverages may be impacted by natural and man-made catastrophes. The Company estimates claim reserves for these claims after the event giving rise to these claims occurs, following a process that is similar to the Company’s Catastrophe Reinsurance segment discussed above. Other Category The Company uses the Bornhuetter-Ferguson actuarial method, as discussed above, to estimate claims and claim expenses within its Other category for its property and casualty insurance contracts and quota share reinsurance business. The comments discussed above relating to the Company’s reserving techniques and processes for the Company’s Specialty Reinsurance segment also apply to the Company’s Other category. In addition, certain of the Company’s coverages may be impacted by natural and man-made catastrophes. The Company estimates claim reserves for these claims after the event giving rise to these claims occurs, following a process that is similar to the Company’s Catastrophe Reinsurance segment discussed above. Development of Liability for Unpaid Claims and Claim Expenses The following table details the development of the Company’s liability for unpaid claims and claim expenses for each of its Catastrophe Reinsurance, Specialty Reinsurance and Lloyd’s segments and Other category, for 2015 split between catastrophe net claims and claim expenses and attritional net claims and claim expenses:
| Year ended December 31, 2015 | Catastrophe Reinsurance Segment |  | Specialty Reinsurance Segment |  | Lloyd's Segment |  | Other |  | Total |
| Catastrophe net claims and claim expenses | (Favorable) adverse development |
| Large catastrophe events |  |  |  |  |  |  |  |  |  |
| Thailand Floods (2011) | $ | (18,823 | ) |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (18,823 | ) |
| Tohoku Earthquake and Tsunami (2011) | (5,314 | ) |  | — |  |  | — |  |  | — |  |  | (5,314 | ) |
| New Zealand Earthquake (2011) | 22,754 |  |  | — |  |  | — |  |  | — |  |  | 22,754 |  |
| 2011 International Events | (1,383 | ) |  | — |  |  | — |  |  | — |  |  | (1,383 | ) |
| Storm Sandy (2012) | (10,436 | ) |  | (2,088 | ) |  | — |  |  | — |  |  | (12,524 | ) |
| April and May U.S. Tornadoes (2011) | (10,189 | ) |  | — |  |  | — |  |  | — |  |  | (10,189 | ) |
| Deepwater Horizon (2010) | — |  |  | (8,116 | ) |  | — |  |  | — |  |  | (8,116 | ) |
| Hurricanes Gustav and Ike (2008) | (4,673 | ) |  | — |  |  | — |  |  | — |  |  | (4,673 | ) |
| New Zealand Earthquake (2010) | 769 |  |  | 326 |  |  | — |  |  | — |  |  | 1,095 |  |
| Subprime (2007) | — |  |  | 8,459 |  |  | — |  |  | — |  |  | 8,459 |  |
| Other | (5,686 | ) |  | (343 | ) |  | — |  |  | (618 | ) |  | (6,647 | ) |
| Total large catastrophe events | (31,598 | ) |  | (1,762 | ) |  | — |  |  | (618 | ) |  | (33,978 | ) |
| Small catastrophe events |  |  |  |  |  |  |  |  |  |
| 2014 U.S. Winter Storms and Wind and Thunderstorm Events | (28,042 | ) |  | — |  |  | — |  |  | — |  |  | (28,042 | ) |
| European Floods (2013) | (2,272 | ) |  | — |  |  | — |  |  | — |  |  | (2,272 | ) |
| Other | (8,465 | ) |  | — |  |  | 1,566 |  |  | — |  |  | (6,899 | ) |
| Total small catastrophe events | (38,779 | ) |  | — |  |  | 1,566 |  |  | — |  |  | (37,213 | ) |
| Total catastrophe net claims and claim expenses | (70,377 | ) |  | (1,762 | ) |  | 1,566 |  |  | (618 | ) |  | (71,191 | ) |
| Attritional net claims and claim expenses |  |  |  |  |  |  |  |  |  |
| Actuarial methods - actual reported claims less than expected claims | — |  |  | (94,944 | ) |  | 309 |  |  | 120 |  |  | (94,515 | ) |
| Actuarial assumption changes | — |  |  | 4,794 |  |  | (1,535 | ) |  | — |  |  | 3,259 |  |
| Total attritional net claims and claim expenses | — |  |  | (90,150 | ) |  | (1,226 | ) |  | 120 |  |  | (91,256 | ) |
| Total favorable development of prior accident years net claims and claim expenses | $ | (70,377 | ) |  | $ | (91,912 | ) |  | $ | 340 |  |  | $ | (498 | ) |  | $ | (162,447 | ) |
Catastrophe Reinsurance Segment The favorable development of prior accident years net claims and claim expenses within the Company’s Catastrophe Reinsurance segment in 2015 of $70.4 million was comprised of $31.6 million and $38.8 million related to large and small catastrophe events, respectively. Included in the favorable development of prior accident years net claims and claim expenses related to large catastrophe events was $10.4 million related to Storm Sandy, $10.2 million related to the April and May 2011 U.S. Tornadoes and $4.7 million related to the 2008 Hurricanes (Gustav and Ike), each principally the result of changes in our estimated ultimate loss for each respective event. Included in the favorable development of prior accident years net claims and claim expenses related to small catastrophe events was $28.0 million related to 2014 U.S. winter storms and wind and thunderstorm events, each principally the result of changes in our estimated ultimate loss for each respective event. In addition, the Company experienced $17.0 million of favorable development related to a number of other large and small catastrophe events. Net favorable development of prior accident years net claims and claim expenses related to the 2011 New Zealand Earthquake, the 2011 Thailand Floods and the 2011 Tohoku Earthquake and Tsunami (collectively the “2011 International Events”) was $1.4 million and included reductions in reported losses on the 2011 Thailand Floods and Tohoku Earthquake and Tsunami, offset by a net increase in reported losses on the 2011 New Zealand Earthquake, with each respective movement principally driven by the same counterparties re-allocating losses between the 2011 International Events. Specialty Reinsurance Segment The favorable development of prior accident years net claims and claim expenses within the Company’s Specialty Reinsurance segment in 2015 of $91.9 million was comprised of $1.8 million and $90.2 million related to large catastrophe events and attritional net claims and claim expenses, respectively. Included in the favorable development of prior accident years net claims and claim expenses of $91.9 million in 2015 was $94.9 million related to attritional net claims and claim expenses reported coming in lower than expected on prior accident years events and $8.1 million related to reductions in estimated ultimate losses related to the Deepwater Horizon explosion and oil spill in 2010, partially offset by adverse development of $8.5 million related to the sub-prime related casualty losses from 2007 driven by reported claims from a number of cedants and adverse development of $4.8 million associated to actuarial assumption changes. Lloyd’s Segment The adverse development of prior accident years net claims and claim expenses within the Company’s Lloyd’s segment in 2015 of $0.3 million was comprised of adverse development of $1.6 million and favorable development of $1.2 million related to small catastrophe events and attritional net claims and claim expenses, respectively. Included in attritional net claims and claim expenses was $1.5 million of favorable development associated with actuarial assumption changes. Other Category The net favorable development on prior accident years of $0.5 million for 2015 within the Company’s Other category was principally the result of a reduction in the estimated ultimate losses on a number of catastrophe events. The following table details the development of the Company’s liability for unpaid claims and claim expenses for each of its Catastrophe Reinsurance, Specialty Reinsurance and Lloyd’s segments and Other category, for 2014 split between catastrophe net claims and claim expenses and attritional net claims and claim expenses:
| Year ended December 31, 2014 | Catastrophe Reinsurance Segment |  | Specialty Reinsurance Segment |  | Lloyd's Segment |  | Other |  | Total |
| Catastrophe net claims and claim expenses |  |  |  |  |  |  |  |  |  |
| Large catastrophe events |  |  |  |  |  |  |  |  |  |
| Storm Sandy (2012) | $ | (20,104 | ) |  | $ | — |  |  | $ | (4,128 | ) |  | $ | — |  |  | $ | (24,232 | ) |
| April and May U.S. Tornadoes (2011) | (13,939 | ) |  | — |  |  | — |  |  | — |  |  | (13,939 | ) |
| Thailand Floods (2011) | (9,254 | ) |  | (2,500 | ) |  | — |  |  | — |  |  | (11,754 | ) |
| LIBOR (2011 and 2012) | — |  |  | (10,500 | ) |  | (1,250 | ) |  | — |  |  | (11,750 | ) |
| Hurricanes Gustav and Ike (2008) | (6,647 | ) |  | — |  |  | — |  |  | — |  |  | (6,647 | ) |
| Tohoku Earthquake and Tsunami (2011) | (3,489 | ) |  | (1,642 | ) |  | — |  |  | — |  |  | (5,131 | ) |
| Hurricane Irene (2011) | (4,506 | ) |  | — |  |  | — |  |  | — |  |  | (4,506 | ) |
| Windstorm Kyrill (2007) | (3,615 | ) |  | — |  |  | — |  |  | — |  |  | (3,615 | ) |
| Subprime (2007) | — |  |  | 5,049 |  |  | — |  |  | — |  |  | 5,049 |  |
| New Zealand Earthquake (2010) | 24,692 |  |  | — |  |  | — |  |  | — |  |  | 24,692 |  |
| Other | (10,644 | ) |  | (1,826 | ) |  | (1,234 | ) |  | — |  |  | (13,704 | ) |
| Total large catastrophe events | (47,506 | ) |  | (11,419 | ) |  | (6,612 | ) |  | — |  |  | (65,537 | ) |
| Small catastrophe events |  |  |  |  |  |  |  |  |  |
| European Floods (2013) | (7,552 | ) |  | — |  |  | — |  |  | — |  |  | (7,552 | ) |
| U.S. PCS 24 Wind and Thunderstorm (2013) | (6,712 | ) |  | — |  |  | — |  |  | — |  |  | (6,712 | ) |
| U.S. PCS 73 Wind and Thunderstorm (2012) | 3,737 |  |  | — |  |  | — |  |  | — |  |  | 3,737 |  |
| U.S. PCS 70 Wind and Thunderstorm (2012) | 9,625 |  |  | — |  |  | — |  |  | — |  |  | 9,625 |  |
| Other | (17,103 | ) |  | — |  |  | (2,687 | ) |  | (6,137 | ) |  | (25,927 | ) |
| Total small catastrophe events | (18,005 | ) |  | — |  |  | (2,687 | ) |  | (6,137 | ) |  | (26,829 | ) |
| Total catastrophe net claims and claim expenses | (65,511 | ) |  | (11,419 | ) |  | (9,299 | ) |  | (6,137 | ) |  | (92,366 | ) |
| Attritional net claims and claim expenses |  |  |  |  |  |  |  |  |  |
| Bornhuetter-Ferguson actuarial method - actual reported claims less than expected claims | — |  |  | (44,490 | ) |  | (6,942 | ) |  | — |  |  | (51,432 | ) |
| Total attritional net claims and claim expenses | — |  |  | (44,490 | ) |  | (6,942 | ) |  | — |  |  | (51,432 | ) |
| Total favorable development of prior accident years net claims and claim expenses | $ | (65,511 | ) |  | $ | (55,909 | ) |  | $ | (16,241 | ) |  | $ | (6,137 | ) |  | $ | (143,798 | ) |
Catastrophe Reinsurance Segment The favorable development of prior accident years net claims and claim expenses within the Company’s Catastrophe Reinsurance segment in 2014 of $65.5 million was comprised of $47.5 million and $18.0 million related to large and small catastrophe events, respectively. Included in the favorable development of prior accident years net claims and claim expenses related to large catastrophe events was $20.1 million, $13.9 million, $9.3 million and $6.6 million related to Storm Sandy, the 2011 April and May U.S. Tornadoes, the 2011 Thailand Floods and the 2008 Hurricanes (Gustav and Ike), partially offset by adverse development of $24.7 million related to the 2010 New Zealand Earthquake, each principally the result of changes in estimated ultimate losses for each respective event. Included in the favorable development of prior accident years net claims and claim expenses related to small catastrophe events was $7.6 million and $6.7 million related to the 2013 European Floods and a 2013 U.S. wind and thunderstorm event, partially offset by adverse development of $13.4 million related certain 2012 U.S. wind and thunderstorm events, each principally the result of changes in estimated ultimate losses for each respective event. Specialty Reinsurance Segment The favorable development of prior accident years net claims and claim expenses within the Company’s Specialty Reinsurance segment in 2015 of $55.9 million was comprised of $11.4 million and $44.5 million related to large catastrophe events and attritional net claims and claim expenses, respectively. Included in the favorable development of prior accident years net claims and claim expenses related to large catastrophe events was a $10.5 million reduction in estimated ultimate losses with respect to potential exposure to LIBOR related claims from prior accident years, partially offset by adverse development of $5.0 million from subprime related events from 2007 driven by reported claims from a number of cedants. Favorable development of prior accident years net claims and claim expenses of $44.5 million related to attritional net claims and claim expenses was driven by the application of the Company's formulaic actuarial reserving methodology. There were no actuarial reserving assumption changes during 2014. Lloyd’s Segment The favorable development of prior accident years net claims and claim expenses within the Company’s Lloyd’s segment in 2015 of $16.2 million was comprised of $6.6 million, $2.7 million and $6.9 million related to large catastrophe events, small catastrophe events and attritional net claims and claim expenses, respectively. Included in the favorable development of prior accident years net claims and claim expenses is a $4.1 million reduction in the estimated ultimate loss related to Storm Sandy included in large catastrophe events, with the $6.9 million favorable development of prior accident years net claims and claim expenses related to attritional net claims and claim expenses principally due to reported claims activity coming in lower than expected on prior accident years events. There were no actuarial reserving assumption changes during 2014. Other Category The net favorable development on prior accident years of $6.1 million for 2014 within the Company’s Other category was principally the result of a reduction in the estimated ultimate losses on a proportional property contract. The following table details the development of the Company’s liability for unpaid claims and claim expenses for each of its Catastrophe Reinsurance, Specialty Reinsurance and Lloyd’s segments and Other category, for the 2013 split between catastrophe net claims and claim expenses and attritional net claims and claim expenses:
| Year ended December 31, 2013 | Catastrophe Reinsurance Segment |  | Specialty Reinsurance Segment |  | Lloyd’s Segment |  | Other |  | Total |
| Catastrophe net claims and claim expenses |  |  |  |  |  |  |  |  |  |
| Large catastrophe events |  |  |  |  |  |  |  |  |  |
| Storm Sandy (2012) | $ | (44,460 | ) |  | $ | — |  |  | $ | (3,825 | ) |  | $ | — |  |  | $ | (48,285 | ) |
| Tohoku Earthquake and Tsunami (2011) | (18,033 | ) |  | (1,000 | ) |  | — |  |  | — |  |  | (19,033 | ) |
| Hurricanes Gustav and Ike (2008) | (16,261 | ) |  | — |  |  | — |  |  | (404 | ) |  | (16,665 | ) |
| New Zealand Earthquake (2011) | (10,944 | ) |  | — |  |  | — |  |  | — |  |  | (10,944 | ) |
| Windstorm Kyrill (2007) | (8,244 | ) |  | — |  |  | — |  |  | — |  |  | (8,244 | ) |
| Hurricane Isaac (2012) | 2,610 |  |  | — |  |  | — |  |  | — |  |  | 2,610 |  |
| New Zealand Earthquake (2010) | 11,040 |  |  | 300 |  |  | — |  |  | — |  |  | 11,340 |  |
| Other | (776 | ) |  | (1,763 | ) |  | (1,442 | ) |  | (1,325 | ) |  | (5,306 | ) |
| Total large catastrophe events | (85,068 | ) |  | (2,463 | ) |  | (5,267 | ) |  | (1,729 | ) |  | (94,527 | ) |
| Small catastrophe events |  |  |  |  |  |  |  |  |  |
| U.S. PCS 83 Wind and Thunderstorm (2012) | (3,500 | ) |  | — |  |  | — |  |  | — |  |  | (3,500 | ) |
| U.S. PCS 76 Wind and Thunderstorm (2012) | (300 | ) |  | — |  |  | — |  |  | — |  |  | (300 | ) |
| U.S. PCS 70 Wind and Thunderstorm (2012) | 8,225 |  |  | — |  |  | — |  |  | — |  |  | 8,225 |  |
| Other | (21,394 | ) |  | — |  |  | — |  |  | — |  |  | (21,394 | ) |
| Total small catastrophe events | (16,969 | ) |  | — |  |  | — |  |  | — |  |  | (16,969 | ) |
| Total catastrophe net claims and claim expenses | $ | (102,037 | ) |  | $ | (2,463 | ) |  | $ | (5,267 | ) |  | $ | (1,729 | ) |  | $ | (111,496 | ) |
| Attritional net claims and claim expenses |  |  |  |  |  |  |  |  |  |
| Bornhuetter-Ferguson actuarial method - actual reported claims less than expected claims | $ | — |  |  | $ | (21,216 | ) |  | $ | (3,263 | ) |  | $ | 2,179 |  |  | $ | (22,300 | ) |
| Actuarial assumption changes | — |  |  | (10,432 | ) |  | 274 |  |  | — |  |  | (10,158 | ) |
| Total attritional net claims and claim expenses | $ | — |  |  | $ | (31,648 | ) |  | $ | (2,989 | ) |  | $ | 2,179 |  |  | $ | (32,458 | ) |
| Total favorable development of prior accident years net claims and claim expenses | $ | (102,037 | ) |  | $ | (34,111 | ) |  | $ | (8,256 | ) |  | $ | 450 |  |  | $ | (143,954 | ) |
Catastrophe Reinsurance Segment The favorable development of prior accident years net claims and claim expenses within the Company’s Catastrophe Reinsurance segment in 2013 of $102.0 million was primarily due to $44.5 million, $18.0 million, $16.3 million and $10.9 million of favorable development related to reductions in the expected ultimate net loss for Storm Sandy, the Tohoku Earthquake, the 2008 Hurricanes (Gustav and Ike) and the 2011 New Zealand Earthquake, respectively, as reported claims came in better than expected, and $34.2 million of net favorable development related to a number of other catastrophes principally the result of reported claims coming in less than expected, resulting in decreases to the ultimate claims for these events through the application of the Company’s formulaic actuarial reserving methodology. Partially offsetting the reductions noted above was adverse development on the 2010 New Zealand Earthquake, U.S. PSC 70 and Hurricane Isaac of $11.0 million, $8.2 million and $2.6 million, respectively, associated with an increase in reported gross ultimate losses. Specialty Reinsurance Segment The favorable development of prior accident years net claims and claim expenses within the Company’s Specialty Reinsurance segment in 2013 of $34.1 million was primarily driven by $10.4 million associated with actuarial assumption changes, principally in the Company’s casualty clash and casualty risk lines of business, and primarily as a result of revised claim development factors based on actual loss experience, and $23.7 million due to reported claims coming in lower than expected on prior accident years events, as a result of the application of the Company’s formulaic actuarial reserving methodology. Lloyd’s Segment The favorable development of prior accident years net claims and claim expenses within the Company’s Lloyd’s segment of $8.3 million during 2013 was principally driven by a $5.3 million decrease in the estimated ultimate net claims and claim expenses related to large catastrophes, including $3.8 million related to Storm Sandy, and $3.3 million related to reported claims coming in lower than expected on prior accident years events as a result of the application of the Company’s formulaic actuarial reserving methodology and partially offset by adverse development of $0.3 million related to assumption changes. Other Category The net adverse development on prior accident years of $0.5 million for 2013 within the Company’s Other category was principally the result of $2.2 million related to the application of the Company’s formulaic actuarial reserving methodology with the increases being due to actual paid and reported claim activity coming in higher than what was originally anticipated when setting the initial reserves; partially offset by favorable development of $1.7 million related to large catastrophe events. Assumed Reinsurance Contracts Classified As Deposit Contracts Net claims and claim expenses incurred were reduced by $0.3 million during 2015 (2014 – $0.3 million, 2013 – $0.4 million) related to income earned on assumed reinsurance contracts that were classified as deposit contracts with underwriting risk only. Other income was increased by $6.2 million during 2015 (2014 – other loss decreased by $0.1 million, 2013 – other loss decreased by $0.1 million) related to premiums and losses incurred on assumed reinsurance contracts that were classified as deposit contracts with timing risk only. Aggregate deposit liabilities of $32.3 million are included in reinsurance balances payable at December 31, 2015 (2014 – $39.0 million) and aggregate deposit assets of $Nil are included in other assets at December 31, 2015 (2014 – $Nil) associated with these contracts.

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