Reserve for Claims and Claim Expenses (Tables)

12 Months Ended

Dec. 31, 2015

Schedule of Liability for Unpaid Claims and Claim Expenses

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.

Schedule of Prior Year Development of Liability for Unpaid Claims and Claim Expenses by Segment

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	)

Schedule of Details of Development of Liability for Unpaid Claims and Claim Expenses by Segment

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	)

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	)

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	)