The Company's loss reserving process begins with the collection and analysis of paid and incurred claim data for each of the Company's segments. The segmental data is disaggregated by reserve class and further disaggregated by underwriting year and accident year. Underwriting year or accident year information is used to analyze the Company's business and to estimate reserves for losses and loss expenses. Reserve classes are selected to ensure that the underlying contracts have homogeneous loss development characteristics, while remaining large enough to make the estimation of trends credible. The Company's reserve classes are reviewed on a regular basis and adjusted over time as the Company's business evolves. The paid and incurred claim data, in addition to industry benchmarks, serves as a key input to many of the methods employed by the Company's actuaries. The relative weights assigned to the Company's historical loss data versus industry data vary based on a number of factors including the Company's historical track record and the development profile for the reserve class being evaluated (refer to 'Claim Tail Analysis' and 'Net Incurred and Paid Claims Development Tables By Accident Year' below for further details).

The following tables map the Company's lines of business to reserve classes and the expected claim tails:



Insurance segment
	Reserve class and tail

	Property and other	Marine	Aviation	Credit and political risk	Professional lines	Liability

	Short	Short	Short/Medium	Medium	Medium	Long

Reported lines of business
Property	X
Marine		X
Terrorism	X
Aviation			X
Credit and political risk				X
Professional lines					X
Liability						X
Accident and health	X
Discontinued lines - Novae	X				X	X



Reinsurance segment
	Reserve class and tail

	Property and other	Credit and surety	Professional lines	Motor	Liability

	Short	Medium	Medium	Long	Long

Reported lines of business
Catastrophe	X
Property	X
Credit and surety		X
Professional lines			X
Motor				X
Liability					X
Engineering	X
Agriculture	X
Marine and other	X
Accident and health	X
Discontinued lines - Novae	X			X	X

Multiple actuarial methods are available to estimate ultimate losses. Each method has its own assumptions and its own advantages and disadvantages, with no single estimation method being better than the others in all situations and no one set of assumption variables being meaningful for all reserve classes. The relative strengths and weaknesses of the particular estimation methods when applied to a particular group of claims can also change over time.

tends to produce volatile estimates of ultimate losses where there is volatility in the underlying incurred/paid patterns. In particular, where the expected percentage of incurred/paid losses is low, small deviations between actual and expected claims can lead to very volatile estimates of ultimate losses. As a result, this method is often unsuitable at early development stages for an accident year or underwriting year.

As part of the loss reserving process, the Company's actuaries employ the estimation method(s) that they believe will produce the most reliable estimate of ultimate losses, at that particular evaluation date, for each reserve class and accident year or underwriting year combination. Often, this is a blend (i.e. weighted average) of the results of two or more appropriate actuarial methods. These ultimate loss estimates are generally utilized to evaluate the adequacy of ultimate loss estimates for previous accident or underwriting years, established in the prior reporting period. For the initial estimate of the current accident or underwriting year, the available claim data is typically insufficient to produce a reliable estimate of ultimate losses. As a result, initial estimates for an accident or underwriting year are generally based on the ELR Method for longer tailed lines and a BF Method for shorter tailed lines. The initial ELR for each reserve class is established collaboratively by the Company's actuaries, underwriters and management at the start of the year as part of the planning process, taking into consideration prior accident years’ or underwriting years' experience and industry benchmarks, adjusted after considering factors such as loss and exposure trends, rate differences, changes in contract terms and conditions, business mix changes and other known differences between the current year and prior accident or underwriting years. The initial expected loss ratios for a given accident or underwriting year may be modified over time if the underlying assumptions, such as loss development or premium rate changes, differ from the original assumptions.

In earlier years, significant reliance was placed on industry benchmarks in establishing expected loss ratios and selecting loss development patterns. Over time, more reliance has been placed on historical loss experience in establishing these ratios and selecting these patterns where the Company believes the weight of its experience has become sufficiently credible for consideration. The weight given to the Company's experience differs for each of the three claim tail classes (refer to 'Claim Tail Analysis' below for further details). In establishing expected loss ratios for the insurance segment, consideration is given to a number of other factors, including exposure trends, rate adequacy on new and renewal business, ceded reinsurance costs, changes in claims emergence and underwriters’ view of terms and conditions in the market environment. For the reinsurance segment, expected loss ratios are based on a contract-by-contract review, which considers information provided by clients together with estimates provided by underwriters and actuaries about the impact of changes in pricing, terms and conditions and coverage. Market experience of some classes of business as compiled and analyzed by an independent actuarial firm has also been considered, as appropriate.

Short-tail business generally includes exposures for which losses are usually known and paid within a relatively short period of time after the underlying loss event has occurred. The key actuarial assumptions for short-tail business in early accident years were primarily developed with reference to industry benchmarks for expected loss ratios and loss development patterns. As the Company's historical loss experience amassed, it gained credibility and became relevant for consideration in establishing these key actuarial assumptions. As a result, the Company gradually increased the weighting assigned to its historical loss experience in selecting the expected loss ratios and loss development patterns utilized to establish estimates of ultimate losses for an accident year. Due to the relatively short reporting and settlement patterns for short-tail business, more weight is generally placed on experience-based methods and other qualitative considerations in establishing reserves for recent and more mature accident years. The majority of development for an accident year or underwriting year is expected to be recognized in the subsequent one to three years.

Medium-tail business generally has claim reporting and settlement periods that are longer than those of short-tail reserve classes. For the Company's earliest accident and underwriting years, initial key actuarial expected loss ratio and loss development assumptions were established utilizing industry benchmarks. Due to the longer claim tail, the length of time required to develop credible loss history for use in the reserve process is greater for medium-tail business than for short-tail business.

In contrast to short and medium-tail business, the claim tail for long-tail business is expected to be notably longer, as claims are often reported and ultimately paid or settled years, or even decades, after the related loss events occur. As a general rule, estimates of accident year or underwriting year ultimate losses for long-tail business are notably more uncertain than those for short and medium-tail business. To date, key actuarial assumptions for long-tail business have been derived from a combination of industry benchmarks supplemented with Company historical loss experience. While industry benchmarks that the Company believes reflect the nature and coverage of its business are considered, actual loss experience may differ from the benchmarks based on industry averages. Due to the length of the development tail for this business, reserve estimates for most accident years and underwriting years are predominantly based on the BF Method or ELR Method and the consideration of qualitative factors.

The Company cannot estimate losses from widespread catastrophic events, such as hurricanes and earthquakes, using the traditional actuarial methods described above. Loss reserves for such events are estimated by management after a catastrophe occurs by completing an in-depth analysis of individual contracts which may potentially have been impacted by the catastrophic event. This in-depth analysis may rely on several sources of information including:

A blend of these information sources is generally used to arrive at aggregate estimates of the ultimate losses arising from the catastrophic event. In subsequent reporting periods, changes in paid and incurred losses in relation to each significant catastrophe are reviewed and adjustments are made to estimates of ultimate losses for each event if there are developments that are different from previous expectations. Adjustments are recorded in the period in which they are identified.

The Company's loss reserving process involves the collaboration of its underwriting, claims, actuarial, legal, ceded reinsurance and finance departments, includes various segmental committee meetings and culminates with the approval of a single point best estimate by the Company's Group Reserving Committee, which comprises senior management. In selecting this best estimate, management considers actuarial estimates and applies informed judgment regarding qualitative factors that may not be fully captured in these actuarial estimates. Such factors include, but are not limited to, the timing of the emergence of claims, volume and complexity of claims, social and judicial trends, potential severity of individual claims and the extent of Company historical loss data versus industry information. While these qualitative factors are considered in arriving at the point estimate, no specific provisions for qualitative factors are established.




Year ended December 31,	2019			2018			2017

Gross reserve for losses and loss expenses, beginning of year	$	12,280,769		$	12,997,553		$	9,697,827
Less reinsurance recoverable on unpaid losses, beginning of year	(3,501,669		)	(3,159,514		)	(2,276,109		)
Net reserve for unpaid losses and loss expenses, beginning of year	8,779,100			9,838,039			7,421,718

Net incurred losses and loss expenses related to:
Current year	3,123,698			3,389,949			3,487,826
Prior years	(78,900		)	(199,662		)	(200,054		)
	3,044,798			3,190,287			3,287,772
Net paid losses and loss expenses related to:
Current year	(598,988		)	(724,199		)	(703,796		)
Prior years	(2,371,637		)	(2,368,615		)	(1,880,882		)
	(2,970,625		)	(3,092,814		)	(2,584,678		)

Foreign exchange and other	21,052			(1,156,412		)	1,713,227

Net reserve for unpaid losses and loss expenses, end of year	8,874,325			8,779,100			9,838,039
Reinsurance recoverable on unpaid losses, end of year	3,877,756			3,501,669			3,159,514
Gross reserve for losses and loss expenses, end of year	$	12,752,081		$	12,280,769		$	12,997,553

The Company writes business with loss experience generally characterized as low frequency and high severity in nature, which can result in volatility in its financial results. During 2019, 2018 and 2017, the Company recognized net losses and loss expenses, net of reinstatement premiums, of $336 million, $430 million and $835 million, respectively, attributable to catastrophe and weather-related events.

On December 15, 2019, the Company entered into a quota share retrocessional agreement with Harrington Re, a related party, which was deemed to have met the established criteria for retroactive reinsurance accounting. The Company recognized reinsurance recoverable on unpaid losses of $59 million related to this reinsurance agreement. This transaction was conducted at market rates consistent with negotiated arms-length contracts.

On April 16, 2018, the Company entered into a quota share retrocessional agreement with Harrington Re, a related party, which was deemed to have met the established criteria for retroactive reinsurance accounting. The Company recognized reinsurance recoverable on unpaid losses of $108 million related to this reinsurance agreement. This transaction was conducted at market rates consistent with negotiated arms-length contracts.

AXIS Managing Agency Ltd., the managing agent of Syndicate 2007 entered into an agreement for the Reinsurance to Close ("RITC") of the 2015 and prior years of account of Syndicate 2007, with an effective date of January 1, 2018. This agreement was accounted for as a novation reinsurance contract. At December 31, 2018, foreign exchange and other included a reduction in reserves for losses and loss expenses of $819 million related to this transaction.

The transfer of the insurance business of AXIS Specialty Australia to a reinsurer was approved by the Irish High Court on February 1, 2017 and the Federal Court of Australia of February 10, 2017. Consequently, the insurance policies, assets and liabilities of AXIS Specialty Australia were transferred to the reinsurer with effect from February 13, 2017. This resulted in the reduction of reserves for losses and loss expenses by $223 million and a reduction in reinsurance recoverable on unpaid and paid losses by $223 million.

At December 31, 2019, net reserve for losses and loss expenses included estimated amounts for numerous catastrophe events. The magnitude and/or complexity of losses arising from these events, in particular Japanese Typhoons Hagibis, Faxai and Tapah, Hurricane Dorian and the Australia Wildfires which occurred in 2019 together with Hurricanes Michael and Florence, California Wildfires and Typhoon Jebi which occurred in 2018 as well as Hurricanes Harvey, Irma and Maria, and the California Wildfires which occurred in 2017 inherently increase the level of uncertainty and, therefore, the level of management judgment involved in arriving at estimated net reserves for losses and loss expenses. As a result, actual losses for these events may ultimately differ materially from current estimates.

Net favorable prior year reserve development arises from changes to estimates for losses and loss expenses related to loss events that occurred in previous calendar years. The following table presents net prior year reserve development by segment:




	Insurance		Reinsurance		Total

Year ended December 31, 2019	$	53,302	$	25,598	$	78,900
Year ended December 31, 2018	92,806		106,856		199,662
Year ended December 31, 2017	60,459		139,595		200,054

These reserve classes recognized net adverse prior year reserve development of $85 million in 2019 including net adverse prior year reserve development of $133 million recognized by the reinsurance property and other reserve class, partially offset by net favorable prior year reserve development of $33 million contributed by the insurance marine reserve class and net favorable prior year reserve development of $11 million contributed by the insurance property and other reserve class.

The net adverse prior year reserve development of $133 million recognized by the reinsurance property and other reserve class was due to an increase in loss estimates attributable to Hurricanes Irma and Michael consistent with industry trends, an increase in loss estimates attributable Typhoon Jebi consistent with updated industry insured loss estimates, and reserve strengthening within the U.S. regional and commercial proportional property books of business and the European proportional property book of business.

For the year ended December 31, 2019, the insurance professional lines reserve class recorded net favorable prior year reserve development of $12 million (2018: $32 million, 2017: $26 million), reflecting generally favorable experience on older accident years as the Company continued to transition to more experience based actuarial methods.

For the year ended December 31, 2019, the insurance liability reserve class recognized net adverse prior year reserve development of $25 million (2018: $22 million, 2017: $8 million). The net adverse prior year reserve development in 2019 was primarily related to reserve strengthening within the Company's U.S. excess casualty and U.S. primary casualty books of business. The net adverse prior year reserve development in 2018 was primarily related to reserve strengthening within the Company's U.S. excess casualty book of business. The net adverse prior year reserve development in 2017 was primarily attributable to reserve strengthening within the Company's run-off Bermuda excess casualty book of business.

For the year ended December 31, 2019, the reinsurance liability reserve classes recognized net favorable prior year reserve development of $31 million (2018: $23 million, 2017: $43 million). The net favorable prior year reserve development in 2019, 2018 and 2017 was due to progressively increased weight given by management to experience based indications on older accident years.

For the year ended December 31, 2019, the reinsurance motor reserve class recognized net favorable prior year reserve development of $71 million (2018: $23 million 2017: $1 million). The net favorable prior year reserve development in 2019 was impacted by the increase in the Ogden discount rate and changes in related actuarial assumptions. The Ogden Rate which is used to calculate lump sum awards in U.K. bodily injury cases, changed from minus 0.75% to minus 0.25%, effective August 5, 2019. The net favorable prior year reserve development in 2018 was primarily attributable to non proportional treaty business on older accident years. The net favorable prior year development in 2017 was impacted by the decrease in the Ogden Rate, which changed from plus 2.5% to minus 0.75%, effective March 20, 2017.

The following tables present net incurred and paid claims development by accident year, total incurred-but-not-reported liabilities plus expected development on reported claims, cumulative reported claims frequency and claims duration for each reserve class. The loss development tables are presented on an accident year basis for the insurance and reinsurance segments. The Company does not discount reserves for losses and loss expenses.

Non-U.S. dollar denominated loss data is converted to U.S. dollar at the rates of exchange in effect at the balance sheet date for material underlying currencies. Fluctuations in foreign currency exchange rates may cause material shifts in loss development. Reserves for losses and loss expenses disclosed in the consolidated balance sheets are also remeasured using the rates of exchange in effect at the balance sheet date.

The reporting of cumulative claims frequency for the reserve classes within the insurance segment has been measured by counting the number of unique claim references including claim references assigned to nil and nominal case reserves. Claim references are grouped by claimant by loss event for each reserve class. For certain insurance facilities and business produced by managing general agents where underlying data is reported to the Company in an aggregated format, the information necessary to provide cumulative claims frequency is not available therefore reporting of claims frequency is deemed to be impracticable.

The property line of business provides physical loss or damage, business interruption and machinery breakdown cover for virtually all types of property, including commercial buildings, residential premises, construction projects and onshore energy installations. This line of business includes primary and excess risks, some of which are catastrophe-exposed.

The accident and health line of business includes accidental death, travel insurance and specialty health products for employer and affinity groups. The accident and health line of business contributed net premiums earned of $144 million to this reserve class for the year ended December 31, 2019. A large increase in reported claims related to this line of business was observed from 2012. In particular, an increase in limited benefits medical business written in 2017 resulted in a significant increase in reported claims observed in that year.

In general, reporting and payment patterns are relatively short-tailed although they can be volatile due to the incidence of catastrophe events.



Insurance property and other
	Incurred claims and allocated claim adjustment expenses, net of reinsurance																				At December 31, 2019
	For the years ended December 31,																				Total of incurred-but-not-reported liabilities plus expected development on reported claims			Cumulative number of reported claims
Accident year	2010 unaudited		2011 unaudited		2012 unaudited		2013 unaudited		2014 unaudited		2015 unaudited		2016 unaudited		2017 unaudited		2018 unaudited		2019
2010	$	173,118	$	155,512	$	148,126	$	122,897	$	117,406	$	116,477	$	116,172	$	115,712	$	114,614	$	114,355	$	684		4,423
2011			348,001		327,787		307,305		286,896		283,852		282,663		283,096		281,389		280,491		(18		)	6,350
2012					391,031		400,995		383,228		363,171		358,598		352,879		352,048		342,017		497			29,931
2013							309,937		299,498		272,642		268,704		268,350		278,790		275,074		1,505			53,191
2014									360,874		355,495		344,878		329,251		328,252		326,638		3,990			62,356
2015											278,554		270,793		259,725		255,392		252,560		4,077			48,424
2016													351,075		377,820		369,508		356,353		6,011			93,717
2017															885,486		829,016		808,602		2,992			697,983
2018																	721,266		759,300		41,900			705,592
2019																			429,987		113,754			445,460
																	Total		$	3,945,377



Insurance property and other
	Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
	For the years ended December 31,
Accident year	2010 unaudited		2011 unaudited		2012 unaudited		2013 unaudited		2014 unaudited		2015 unaudited		2016 unaudited		2017 unaudited		2018 unaudited		2019
2010	$	48,995	$	87,604	$	95,726	$	106,531	$	110,745	$	110,819	$	110,612	$	110,656	$	110,990	$	110,970
2011			85,346		193,949		250,251		272,530		271,483		271,287		271,960		272,402		272,372
2012					77,461		213,961		277,909		300,845		308,368		313,529		313,602		315,703
2013							75,831		198,955		237,714		248,746		259,787		262,819		264,607
2014									132,872		259,679		306,221		313,360		317,697		318,866
2015											99,120		202,649		227,237		241,586		242,270
2016													123,640		289,711		329,709		338,243
2017															253,400		628,364		744,285
2018																	284,651		577,243
2019																			187,430
Total																			3,371,989

All outstanding liabilities before 2010, net of reinsurance																			6,225

Liabilities for claims and claim adjustment expenses, net of reinsurance																			$	579,613

This reserve class includes the marine line of business which provides cover for traditional marine classes, including offshore energy, cargo, liability, recreational marine, fine art, specie, and hull and war. Offshore energy coverage includes physical damage, business interruption, operators extra expense and liability coverage for all aspects of offshore upstream energy, from exploration and construction through the operation and distribution phases. The complex nature of claims arising under marine policies tends to result in reporting and payment patterns that are longer than those of the property and other reserve class. Exposure to natural perils such as windstorm and earthquake can result in volatility.



Insurance marine
	Incurred claims and allocated claim adjustment expenses, net of reinsurance																				At December 31, 2019
	For the years ended December 31,																				Total of incurred-but-not-reported liabilities plus expected development on reported claims		Cumulative number of reported claims
Accident year	2010 unaudited		2011 unaudited		2012 unaudited		2013 unaudited		2014 unaudited		2015 unaudited		2016 unaudited		2017 unaudited		2018 unaudited		2019
2010	$	68,519	$	70,314	$	66,359	$	53,458	$	51,482	$	48,618	$	47,226	$	45,482	$	45,064	$	44,696	$	262	3,197
2011			90,776		78,807		72,875		65,973		65,921		66,156		68,318		69,011		68,330		976		3,830
2012					89,712		83,138		69,075		71,211		72,238		74,797		73,002		62,447		2,718		4,134
2013							79,578		100,757		96,164		97,250		82,487		82,073		81,070		1,174		2,353
2014									59,686		44,576		48,586		44,420		46,030		47,574		4,249		2,163
2015											160,063		141,317		137,180		129,914		117,587		3,079		2,228
2016													86,386		78,762		76,511		71,161		4,020		2,841
2017															173,222		170,775		166,796		27,726		3,976
2018																	182,232		191,005		45,347		4,232
2019																			169,381		94,818		3,525
																	Total		$	1,020,047



Insurance marine
	Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
	For the years ended December 31,
Accident year	2010 unaudited		2011 unaudited		2012 unaudited		2013 unaudited		2014 unaudited		2015 unaudited		2016 unaudited		2017 unaudited		2018 unaudited		2019
2010	$	18,017	$	28,603	$	33,296	$	42,325	$	45,159	$	45,944	$	46,918	$	43,286	$	43,372	$	43,377
2011			26,453		44,274		55,029		58,132		59,976		60,689		65,000		67,046		67,523
2012					10,708		38,594		44,884		49,631		50,448		52,841		54,863		55,950
2013							18,856		43,958		54,777		63,034		65,717		76,753		76,900
2014									6,357		15,179		26,905		26,930		36,020		40,895
2015											21,433		54,958		108,312		111,212		112,617
2016													12,487		31,817		57,314		63,333
2017															14,515		68,411		92,773
2018																	25,153		84,834
2019																			35,449
Total																			673,651

All outstanding liabilities before 2010, net of reinsurance																			4,296

Liabilities for claims and claim adjustment expenses, net of reinsurance																			$	350,692

This reserve class includes the aviation line of business which provides cover for hull and liability, and specific war cover primarily for passenger airlines but also for cargo operations, general aviation operations, airports, aviation authorities, security firms and product manufacturers. The claims reporting pattern varies by insurance coverage provided. Losses arising from war or terrorism and damage to hulls of aircraft are generally reported quickly compared with liability claims which involve passengers and third parties and generally exhibit longer reporting and payment patterns. To date, the claims reported to the Company have predominantly related to damage to hulls, therefore, reporting and payment patterns have typically exhibited a relatively short tail.



Insurance aviation
	Incurred claims and allocated claim adjustment expenses, net of reinsurance																				At December 31, 2019
	For the years ended December 31,																				Total of incurred-but-not-reported liabilities plus expected development on reported claims		Cumulative number of reported claims
Accident year	2010 unaudited		2011 unaudited		2012 unaudited		2013 unaudited		2014 unaudited		2015 unaudited		2016 unaudited		2017 unaudited		2018 unaudited		2019
2010	$	12,917	$	11,698	$	11,420	$	9,745	$	8,766	$	8,695	$	8,741	$	8,525	$	8,868	$	8,836	$	48	663
2011			17,724		15,391		12,781		9,555		8,424		7,277		7,234		7,192		6,952		118		4,202
2012					12,793		10,677		10,801		8,718		7,769		7,712		7,599		7,392		83		2,857
2013							15,652		16,330		15,205		15,249		15,585		15,470		16,763		255		3,017
2014									20,435		23,033		24,349		21,789		21,847		19,088		493		3,529
2015											29,782		28,502		29,833		29,567		27,512		299		4,140
2016													29,173		33,502		33,658		31,723		606		4,062
2017															55,581		62,035		66,896		3,747		4,272
2018																	57,990		63,753		6,841		4,258
2019																			42,360		11,632		2,305
																	Total		$	291,275



Insurance aviation
	Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
	For the years ended December 31,
Accident year	2010 unaudited		2011 unaudited		2012 unaudited		2013 unaudited		2014 unaudited		2015 unaudited		2016 unaudited		2017 unaudited		2018 unaudited		2019
2010	$	1,032	$	4,126	$	6,309	$	6,883	$	7,548	$	7,666	$	8,109	$	8,198	$	8,391	$	8,574
2011			639		2,822		4,513		5,030		5,564		5,814		6,035		6,177		6,222
2012					954		2,861		4,152		5,948		6,831		7,053		7,166		7,102
2013							4,400		7,328		9,749		11,450		13,560		14,167		14,487
2014									3,988		8,023		11,692		13,849		14,485		14,848
2015											8,085		16,159		20,959		23,217		24,676
2016													10,412		19,279		26,259		27,820
2017															21,105		40,159		50,642
2018																	21,442		40,368
2019																			16,856
Total																			211,595

All outstanding liabilities before 2010, net of reinsurance																			7,260

Liabilities for claims and claim adjustment expenses, net of reinsurance																			$	86,940

This reserve class includes the credit and political risk line of business which provides credit and political risk insurance products for banks, commodity traders, corporations and multilateral and export credit agencies. Cover is provided for a range of risks including sovereign default, credit default, political violence, currency inconvertibility and non-transfer, expropriation, aircraft non-repossession and contract frustration due to political events.

The credit insurance coverage is primarily for lenders seeking to mitigate the risk of non-payment from their borrowers. In order to claim compensation under a credit insurance contract, the insured (most often a bank) cannot assign, without the Company's prior agreement, the insured contract (most often a loan) to any third party and is normally obliged to hold a material portion of insured asset on their books, unhedged and uninsured. Claims for this business tend to be characterized by their severity risk, as opposed to their frequency risk. Claim reporting and payment patterns are anticipated to be volatile. Under the notification provisions of credit insurance policies issued by the Company, it anticipates being advised of an insured event within a relatively short time period. Consequently, the Company generally estimates ultimate losses based on a contract-by-contract analysis which considers the contracts’ terms, the facts and circumstances of underlying loss events and qualitative input from claims managers.



Insurance credit and political risk
	Incurred claims and allocated claim adjustment expenses, net of reinsurance																				At December 31, 2019
	For the years ended December 31,																				Total of incurred-but-not-reported liabilities plus expected development on reported claims		Cumulative number of reported claims
Accident year	2010 unaudited		2011 unaudited		2012 unaudited		2013 unaudited		2014 unaudited		2015 unaudited		2016 unaudited		2017 unaudited		2018 unaudited		2019
2010	$	62,415	$	63,179	$	63,259	$	65,597	$	64,980	$	65,014	$	72,104	$	90,888	$	99,423	$	99,633	$	339	6
2011			58,154		48,665		47,706		48,361		48,333		45,036		33,609		27,904		27,904		268		4
2012					32,602		15,672		12,435		12,447		10,322		46		198		198		155		4
2013							26,439		25,684		9,759		9,880		14,942		14,067		12,377		4,070		1
2014									38,825		70,713		67,109		68,324		69,589		71,274		2,822		6
2015											30,329		30,368		27,524		26,012		25,930		2,621		2
2016													45,391		44,891		42,401		42,972		18,275		1
2017															36,751		34,765		28,209		17,808		3
2018																	47,215		36,618		12,576		1
2019																			50,609		33,702		5
																	Total		$	395,724



Insurance credit and political risk
	Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
	For the years ended December 31,
Accident year	2010 unaudited		2011 unaudited		2012 unaudited		2013 unaudited		2014 unaudited		2015 unaudited		2016 unaudited		2017 unaudited		2018 unaudited		2019
2010	$	50,000	$	85,418	$	90,729	$	106,768	$	101,789	$	101,951	$	102,157	$	102,203	$	102,522	$	101,262
2011			32,788		37,205		27,636		27,636		27,636		27,636		27,636		27,636		27,636
2012					—		—		—		—		39		41		43		43
2013							745		2,235		3,726		5,216		11,769		13,828		13,828
2014									1,924		39,952		61,108		57,858		57,858		64,050
2015											—		23,309		23,309		23,309		23,309
2016													—		24,697		24,697		24,697
2017															1,523		5,593		11,019
2018																	4,937		13,545
2019																			15,528
Total																			294,917

All outstanding liabilities before 2010, net of reinsurance																			(2,588		)

Liabilities for claims and claim adjustment expenses, net of reinsurance																			$	98,219

This reserve class includes the professional lines line of business which provides directors’ and officers’ liability, errors and omissions liability, employment practices liability, fiduciary liability, crime, professional indemnity, cyber and privacy insurance, medical malpractice and other financial insurance related covers for public and private commercial enterprises, financial institutions, not-for-profit organizations and other professional service providers. This reserve class also includes discontinued lines - Novae specifically the financial institutions and professional indemnity lines of business that Novae exited or placed into run-off in the first quarter of 2017. This business is predominantly written on a claims-made basis. Typically, this reserve class is anticipated to exhibit medium to long tail claim reporting and payment patterns.

With respect to key actuarial assumptions, the Company relies on its loss experience when establishing expected loss ratios and selected loss development patterns. Loss reporting patterns for professional lines business tend to be volatile, causing instability in actuarial indications based on incurred loss data until an accident year or underwriting year matures. Consequently, initial loss reserves for an accident year or underwriting year are generally based on an ELR Method and the consideration of relevant qualitative factors. As accident years and underwriting years mature, the Company increasingly gives more weight to methods that reflect its experience until its selections are based almost exclusively on experience-based methods. The Company evaluates the appropriateness of the transition to experience-based methods at the reserve class level, commencing this transition when it believes that its incurred loss development is sufficient to produce meaningful actuarial indications. The rate at which the Company transitions fully to sole reliance on experience-based methods can vary by reserve class and by year, depending on its assessment of the stability and relevance of such indications. For some professional lines in the insurance segment, the



Insurance professional lines
	Incurred claims and allocated claim adjustment expenses, net of reinsurance																				At December 31, 2019
	For the years ended December 31,																				Total of incurred-but-not-reported liabilities plus expected development on reported claims		Cumulative number of reported claims
Accident year	2010 unaudited		2011 unaudited		2012 unaudited		2013 unaudited		2014 unaudited		2015 unaudited		2016 unaudited		2017 unaudited		2018 unaudited		2019
2010	$	232,002	$	237,156	$	234,655	$	206,406	$	183,237	$	158,729	$	180,704	$	167,917	$	187,464	$	185,116	$	17,194	5,698
2011			313,520		315,326		333,914		326,663		330,773		343,911		352,309		352,792		350,066		28,007		7,229
2012					328,397		375,164		376,603		375,549		362,534		364,443		353,182		351,283		34,964		8,326
2013							383,432		396,819		398,059		364,851		354,190		356,261		334,398		49,144		9,439
2014									412,523		411,232		421,093		391,952		371,407		353,994		76,580		9,802
2015											377,129		376,865		382,679		357,646		344,239		87,707		10,453
2016													349,030		351,990		358,368		359,813		105,971		11,763
2017															378,746		397,760		437,528		197,748		13,418
2018																	361,490		374,683		217,867		15,584
2019																			399,585		348,212		11,747
																	Total		$	3,490,705



Insurance professional lines
	Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
	For the years ended December 31,
Accident year	2010 unaudited		2011 unaudited		2012 unaudited		2013 unaudited		2014 unaudited		2015 unaudited		2016 unaudited		2017 unaudited		2018 unaudited		2019
2010	$	7,807	$	27,806	$	53,493	$	72,592	$	88,558	$	99,039	$	109,540	$	114,520	$	136,510	$	142,788
2011			7,402		32,897		74,461		108,598		165,806		238,401		283,510		294,678		302,151
2012					7,818		41,328		100,089		184,191		230,913		253,958		273,383		281,715
2013							17,690		73,077		129,671		175,835		213,225		242,860		263,325
2014									23,529		70,662		130,039		192,405		223,838		242,899
2015											20,197		67,725		137,738		169,555		203,542
2016													15,859		71,245		147,370		192,459
2017															20,946		71,779		139,143
2018																	20,091		81,986
2019																			25,911
Total																			1,875,919

All outstanding liabilities before 2010, net of reinsurance																			65,486

Liabilities for claims and claim adjustment expenses, net of reinsurance																			$	1,680,272

This reserve class includes the liability line of business which primarily targets primary and low to mid-level excess and umbrella commercial liability risks in the U.S. wholesale markets in addition to primary and excess of loss employers, public and products liability business predominately in the U.K. This reserve class also includes discontinued lines - Novae specifically the international liability line of business that Novae exited or placed into run-off in the fourth quarter of 2016. Target industry sectors include construction, manufacturing, transportation and trucking and other services. The delay between the writing of a contract, notification and subsequent settlement of a claim in respect of that contract results in claim reporting and payment patterns that are typically long-tail in nature. A consequence of the claim development tail is that this line of business is particularly exposed, among a number of uncertainties, to the potential for unanticipated levels of claim inflation relative to that assumed when the contracts were written. Factors influencing claim inflation on this class can include, but are not limited to, underlying economic and medical inflation, judicial inflation, mass tort and changing social trends.



Insurance liability
	Incurred claims and allocated claim adjustment expenses, net of reinsurance																				At December 31, 2019
	For the years ended December 31,																				Total of incurred-but-not-reported liabilities plus expected development on reported claims		Cumulative number of reported claims
Accident year	2010 unaudited		2011 unaudited		2012 unaudited		2013 unaudited		2014 unaudited		2015 unaudited		2016 unaudited		2017 unaudited		2018 unaudited		2019
2010	$	79,398	$	94,222	$	98,642	$	98,853	$	100,133	$	98,529	$	105,438	$	104,465	$	104,042	$	107,420	$	12,287	4,029
2011			72,580		75,329		83,925		87,770		85,792		84,079		82,312		82,657		85,036		14,042		3,571
2012					70,887		71,683		74,134		71,474		68,658		75,697		72,727		67,237		18,015		3,188
2013							93,233		95,306		95,174		88,241		93,681		95,981		91,941		16,997		3,568
2014									107,133		124,303		129,764		130,672		132,019		131,474		22,710		4,865
2015											128,437		127,353		137,568		165,073		183,088		43,822		6,225
2016													124,323		130,188		128,911		127,528		53,401		7,068
2017															162,446		166,573		183,793		76,834		6,710
2018																	168,146		167,614		95,288		5,454
2019																			191,121		165,431		3,714
																	Total		$	1,336,252



Insurance liability
	Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
	For the years ended December 31,
Accident year	2010 unaudited		2011 unaudited		2012 unaudited		2013 unaudited		2014 unaudited		2015 unaudited		2016 unaudited		2017 unaudited		2018 unaudited		2019
2010	$	1,030	$	15,977	$	30,800	$	53,594	$	61,044	$	66,129	$	71,803	$	86,454	$	88,007	$	88,476
2011			2,761		10,540		20,190		38,377		46,074		54,996		60,261		62,150		67,114
2012					1,663		5,514		15,411		30,145		37,139		42,740		46,540		48,034
2013							2,359		23,280		33,319		42,049		60,004		66,963		71,982
2014									1,414		18,640		49,836		71,595		84,374		93,574
2015											5,438		22,392		39,637		92,664		120,216
2016													6,319		23,280		36,385		56,446
2017															5,439		29,564		59,356
2018																	9,027		35,612
2019																			7,337
Total																			648,147

All outstanding liabilities before 2010, net of reinsurance																			50,617

Liabilities for claims and claim adjustment expenses, net of reinsurance																			$	738,722

The presentation of net incurred and paid claims development tables by accident year for the reinsurance segment is challenging due to the need to allocate loss information related to proportional treaties to the appropriate accident years. Information related to proportional treaty reinsurance contracts is generally submitted to the Company using quarterly bordereau reporting by underwriting year, with a supplemental listing of large losses. Large losses can be allocated to the corresponding accident years accurately. The remaining losses can generally only be allocated to accident years based on estimated premiums earned and loss reporting patterns. To the extent management’s assumptions and allocation procedures differ from the actual loss development patterns, the actual loss development may differ materially from the net incurred and paid claims development presented in the tables below.

The catastrophe line of business provides protection for most catastrophic losses that are covered in the underlying insurance policies written by the Company's cedants. The underlying policies principally cover property-related exposures but other exposures including workers compensation and personal accident are also covered. The principal perils covered by policies in this portfolio include hurricane and windstorm, earthquake, flood, tornado, hail and fire. In some instances, terrorism may be a covered peril or the only peril. This business is written on a proportional and an excess of loss basis.

The property line of business provides protection for property damage and related losses resulting from natural and man-made perils contained in underlying personal and commercial lines insurance policies written by the Company's cedants. The predominant exposure is to property damage, but other risks, including business interruption and other non-property losses, may also be covered when arising from a covered peril. The most significant perils covered by policies in this portfolio include windstorm, tornado and earthquake, but other perils such as freezes, riots, floods, industrial explosions, fires, hail and a number of other loss events are also included. This business is written on a proportional and excess of loss basis.

The agriculture line of business provides protection for risks associated with the production of food and fiber on a global basis for primary insurance companies writing multi-peril crop insurance, crop hail, and named peril covers, as well as custom risk transfer mechanisms for agricultural dependent industries with exposures to crop yield and/or price deviations. This business is written on a proportional and aggregate stop loss reinsurance basis.

The engineering line of business provides protection for all types of construction risks and risks associated with erection, testing and commissioning of machinery and plants during the construction stage. This line of business also includes coverage for losses arising from operational failures of machinery, plant and equipment, and electronic equipment as well as business interruption.



Reinsurance property and other
	Incurred claims and allocated claim adjustment expenses, net of reinsurance																				At December 31, 2019
	For the years ended December 31,																				Total of incurred-but-not-reported liabilities plus expected development on reported claims
Accident year	2010 unaudited		2011 unaudited		2012 unaudited		2013 unaudited		2014 unaudited		2015 unaudited		2016 unaudited		2017 unaudited		2018 unaudited		2019
2010	$	614,748	$	601,243	$	570,057	$	581,838	$	584,942	$	578,740	$	570,796	$	568,725	$	567,879	$	566,112	$	3,070
2011			1,111,563		1,116,669		1,116,042		1,084,197		1,067,100		1,041,136		1,039,379		1,040,759		1,041,771		7,782
2012					555,459		523,208		507,619		476,989		461,152		456,127		457,531		454,281		2,860
2013							578,725		560,658		529,856		509,526		503,539		503,026		499,736		1,904
2014									542,601		560,775		534,618		522,102		520,299		519,529		40,234
2015											477,301		464,588		459,487		454,225		450,182		6,030
2016													616,621		635,164		622,331		618,643		11,017
2017															1,076,967		1,081,415		1,107,597		75,459
2018																	882,829		1,008,505		166,887
2019																			959,771		729,042
																	Total		$	7,226,127



Reinsurance property and other
	Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
	For the years ended December 31,
Accident year	2010 unaudited		2011 unaudited		2012 unaudited		2013 unaudited		2014 unaudited		2015 unaudited		2016 unaudited		2017 unaudited		2018 unaudited		2019
2010	$	116,132	$	311,052	$	404,287	$	434,908	$	480,734	$	509,769	$	534,590	$	540,312	$	542,590	$	546,691
2011			251,855		587,047		794,575		893,746		923,166		996,481		1,011,283		1,013,858		1,019,917
2012					122,823		294,298		366,968		389,373		403,926		413,594		415,634		428,152
2013							107,628		324,839		441,138		471,380		481,066		482,480		483,105
2014									102,356		352,883		434,769		452,193		458,350		463,342
2015											71,477		265,896		368,698		400,980		413,477
2016													128,126		376,920		520,779		563,781
2017															252,360		723,826		868,458
2018																	195,707		648,622
2019																			161,293
Total																			5,596,838

All outstanding liabilities before 2010, net of reinsurance																			14,757

Liabilities for claims and claim adjustment expenses, net of reinsurance																			$	1,644,046

This reserve class includes the credit and surety line of business which provides reinsurance of trade credit insurance products and includes proportional and excess of loss structures. The underlying insurance indemnifies sellers of goods and services in the event of a payment default by the buyer of those goods and services. Surety reinsurance provides protection for losses arising from a broad array of surety bonds issued by insurers to satisfy regulatory demands or contract obligations in a variety of jurisdictions around the world. The Company also provides mortgage reinsurance to mortgage guaranty insurers and U.S. government sponsored entities for losses related to credit risk transfer into the private sector.

Initial and most recent underwriting year loss projections are generally based on the ELR Method, with consideration given to qualitative factors. Given that there is a quicker and more stable reporting pattern for trade credit and mortgage business, the Company generally commences the transition to experience-based methods sooner for these lines of business than for surety business.



Reinsurance credit and surety
	Incurred claims and allocated claim adjustment expenses, net of reinsurance																				At December 31, 2019
	For the years ended December 31,																				Total of incurred-but-not-reported liabilities plus expected development on reported claims
Accident year	2010 unaudited		2011 unaudited		2012 unaudited		2013 unaudited		2014 unaudited		2015 unaudited		2016 unaudited		2017 unaudited		2018 unaudited		2019
2010	$	119,180	$	99,460	$	92,848	$	90,029	$	85,856	$	78,247	$	76,937	$	74,913	$	73,672	$	71,911	$	1,751
2011			120,572		106,495		104,616		111,485		109,662		101,236		99,412		98,885		95,813		2,439
2012					159,507		147,627		150,137		147,406		139,097		131,120		127,576		124,552		3,883
2013							164,207		152,467		143,719		139,886		135,762		124,533		124,674		3,546
2014									136,419		135,525		142,703		139,015		127,683		126,397		6,726
2015											160,132		165,861		160,675		156,635		137,848		8,335
2016													141,639		141,128		148,943		123,366		9,849
2017															135,040		132,618		126,786		22,830
2018																	111,692		120,289		38,357
2019																			74,689		39,291
																	Total		$	1,126,325



Reinsurance credit and surety
	Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
	For the years ended December 31,
Accident year	2010 unaudited		2011 unaudited		2012 unaudited		2013 unaudited		2014 unaudited		2015 unaudited		2016 unaudited		2017 unaudited		2018 unaudited		2019
2010	$	28,190	$	48,274	$	59,074	$	59,804	$	61,466	$	62,585	$	64,020	$	65,024	$	65,346	$	65,781
2011			22,411		53,392		69,851		77,392		81,930		84,106		86,419		87,799		88,615
2012					49,482		85,228		99,046		104,876		108,391		110,150		111,441		113,402
2013							32,399		76,743		91,486		98,039		105,692		107,555		112,520
2014									35,552		61,076		85,984		95,079		102,670		107,082
2015											32,907		81,685		99,774		116,756		118,670
2016													42,028		73,201		92,187		101,822
2017															37,295		73,944		90,495
2018																	38,990		68,505
2019																			19,281
Total																			886,173

All outstanding liabilities before 2010, net of reinsurance																			16,847

Liabilities for claims and claim adjustment expenses, net of reinsurance																			$	256,999

This reserve class includes the professional line of business which provides protection for directors' and officers' liability, employment practices liability, medical malpractice, professional indemnity, environmental liability and miscellaneous errors and omissions insurance risks. The underlying business is predominantly written on a claims-made basis. This business is written on a proportional and excess of loss basis. Typically, this reserve class is anticipated to exhibit medium to long-tail claim reporting and payment patterns.

With respect to key actuarial assumptions, the Company relies on its experience when establishing expected loss ratios and selected loss development patterns. Loss reporting patterns for professional lines business tend to be volatile, causing instability in actuarial indications based on incurred loss data until an underwriting year matures. Consequently, initial loss reserves for an underwriting year are generally based on the ELR Method and the consideration of relevant qualitative factors. As underwriting years mature, the Company increasingly gives more weight to methods that reflect its experience until its selections are based almost exclusively on experience-based methods. The Company evaluates the appropriateness of the transition to experience-based methods at the reserve class level, commencing this transition when it believes that its incurred loss development is sufficient to produce meaningful actuarial indications. The rate at which the Company transitions fully to sole reliance on experience-based methods can vary by reserve class and by year, depending on its assessment of the stability and relevance of such indications.



Reinsurance professional lines
	Incurred claims and allocated claim adjustment expenses, net of reinsurance																				At December 31, 2019
	For the years ended December 31,																				Total of incurred-but-not-reported liabilities plus expected development on reported claims
Accident year	2010 unaudited		2011 unaudited		2012 unaudited		2013 unaudited		2014 unaudited		2015 unaudited		2016 unaudited		2017 unaudited		2018 unaudited		2019
2010	$	209,934	$	210,173	$	211,361	$	214,417	$	214,185	$	196,939	$	189,415	$	179,762	$	166,044	$	167,376	$	5,701
2011			201,013		201,364		202,620		211,367		209,088		208,219		200,437		177,405		166,951		6,047
2012					209,548		216,088		221,544		223,926		222,626		212,594		213,984		206,791		18,318
2013							209,292		214,396		215,562		213,745		213,182		205,733		181,563		35,871
2014									219,376		219,415		219,345		219,242		233,611		230,042		27,940
2015											212,031		212,024		214,344		225,139		231,980		63,050
2016													195,190		196,293		200,020		227,952		67,496
2017															155,137		155,759		162,116		72,727
2018																	146,387		148,921		132,683
2019																			139,150		130,571
																	Total		$	1,862,842



Reinsurance professional lines
	Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
	For the years ended December 31,
Accident year	2010 unaudited		2011 unaudited		2012 unaudited		2013 unaudited		2014 unaudited		2015 unaudited		2016 unaudited		2017 unaudited		2018 unaudited		2019
2010	$	1,757	$	12,026	$	31,243	$	52,138	$	76,798	$	107,363	$	123,981	$	130,610	$	138,047	$	142,994
2011			1,510		11,822		30,272		57,230		84,845		103,052		119,767		130,059		136,492
2012					778		10,392		29,622		53,629		85,972		107,224		131,853		145,866
2013							1,064		12,073		30,491		64,958		81,630		104,904		123,282
2014									2,019		13,073		48,854		74,577		109,239		147,194
2015											3,134		13,505		41,539		79,296		112,042
2016													1,768		20,534		52,617		95,283
2017															2,813		14,921		39,915
2018																	271		2,593
2019																			335
Total																			945,996

All outstanding liabilities before 2010, net of reinsurance																			52,321

Liabilities for claims and claim adjustment expenses, net of reinsurance																			$	969,167

This reserve class includes the motor line of business which provides protection to insurers for motor liability and motor property damage losses arising from any one occurrence. A loss occurrence can involve one or many claimants where the ceding insurer aggregates the claims from the occurrence. This reserve class also includes discontinued lines - Novae specifically the motor reinsurance line of business that Novae exited or placed into run-off in the first quarter of 2017. The Company offers traditional proportional and non-proportional reinsurance as well as structured solutions predominantly relating to European exposures.

The business written on a proportional basis has expanded significantly since 2010 and now represents the majority of the premium in this line of business. Most of the premium relates to a relatively small number of large United Kingdom ("U.K.") quota share reinsurance treaty contracts. The motor proportional class generally has a significantly shorter reported and payment pattern, relative to the motor non-proportional class.

The motor non-proportional business consists of standard excess of loss contracts written for cedants in several European countries with most of the premium related to two major markets, U.K. and France. Since 2009/2010, an increasing number of large bodily injury settlements in the U.K. market were settled using indexed annuities (Periodical Payment Orders "PPOs"). This led to a materially longer development tail on the older accident years for the U.K. non-proportional motor book. This also resulted in the inclusion of capitalization clauses on a number of U.K. motor treaties to help mitigate the lengthening of the development tail on more recent accident years.

In 2017, the U.K. Ministry of Justice announced a decrease in the discount rate to be used to calculate lump sum awards in U.K. bodily injury cases, known as the Ogden Rate. Effective March 20, 2017, the Ogden rate changed from plus 2.5% to minus 0.75%. This resulted in a trend toward a lower number of claims settlements using PPOs and an increase in projected ultimate losses, particularly related to recent accident years.

Effective August 5, 2019, the Ogden rate changed from minus 0.75% to minus 0.25%. This resulted in a decrease in projected ultimate losses, particularly related to recent accident years.



Reinsurance motor
	Incurred claims and allocated claim adjustment expenses, net of reinsurance																				At December 31, 2019
	For the years ended December 31,																				Total of incurred-but-not-reported liabilities plus expected development on reported claims
Accident year	2010 unaudited		2011 unaudited		2012 unaudited		2013 unaudited		2014 unaudited		2015 unaudited		2016 unaudited		2017 unaudited		2018 unaudited		2019
2010	$	100,219	$	107,538	$	108,183	$	107,264	$	101,343	$	96,235	$	86,803	$	83,112	$	80,901	$	80,028	$	21,660
2011			158,475		162,069		166,112		172,062		168,225		159,626		148,536		143,846		136,077		18,030
2012					180,137		170,848		159,446		151,899		147,041		137,585		134,685		126,507		15,534
2013							164,927		162,475		150,620		141,237		137,791		135,003		126,050		13,828
2014									185,279		186,947		182,237		179,510		174,719		171,403		6,302
2015											225,974		222,178		226,319		227,844		216,610		12,291
2016													249,616		268,525		270,264		259,959		21,855
2017															370,778		380,509		362,721		50,597
2018																	363,917		363,733		83,024
2019																			339,476		165,127
																	Total		$	2,182,564



Reinsurance motor
	Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
	For the years ended December 31,
Accident year	2010 unaudited		2011 unaudited		2012 unaudited		2013 unaudited		2014 unaudited		2015 unaudited		2016 unaudited		2017 unaudited		2018 unaudited		2019
2010	$	7,201	$	12,601	$	18,149	$	21,713	$	25,153	$	29,429	$	32,717	$	33,769	$	34,839	$	37,041
2011			23,943		47,991		62,861		73,562		80,349		86,466		91,165		92,201		94,155
2012					29,381		53,959		68,970		78,880		85,488		89,646		91,982		93,194
2013							34,133		54,274		68,502		78,744		84,512		90,165		93,234
2014									43,628		75,543		95,563		103,909		114,300		124,157
2015											58,231		95,172		115,903		133,528		149,813
2016													61,321		106,934		131,606		150,004
2017															72,859		137,217		168,855
2018																	84,564		145,561
2019																			90,291
Total																			1,146,305

All outstanding liabilities before 2010, net of reinsurance																			193,345

Liabilities for claims and claim adjustment expenses, net of reinsurance																			$	1,229,604

This reserve class includes the liability line of business which provides protection to insurers of admitted casualty business, excess and surplus lines casualty business and specialty casualty programs. The primary focus of the underlying business is general liability, workers' compensation, auto liability and excess casualty. This reserve class includes discontinued lines - Novae specifically the general liability reinsurance line of business that Novae exited or placed into run-off in the first quarter of 2017.

Claim reporting and payment patterns are typically long-tail in nature and, therefore, subject to increased uncertainty surrounding future loss development. In particular, claims can be subject to inflation from a number of sources including, but not limited to, economic and medical inflation, judicial inflation and changing social trends.



Reinsurance liability
	Incurred claims and allocated claim adjustment expenses, net of reinsurance																				At December 31, 2019
	For the years ended December 31,																				Total of incurred-but-not-reported liabilities plus expected development on reported claims
Accident year	2010 unaudited		2011 unaudited		2012 unaudited		2013 unaudited		2014 unaudited		2015 unaudited		2016 unaudited		2017 unaudited		2018 unaudited		2019
2010	$	172,823	$	171,775	$	183,347	$	183,715	$	202,007	$	190,921	$	181,962	$	165,983	$	159,230	$	156,113	$	13,119
2011			172,189		172,201		173,984		191,668		197,766		194,604		193,784		191,873		189,014		16,614
2012					166,386		162,945		167,366		172,341		173,501		170,979		164,309		158,342		16,994
2013							171,271		175,174		182,201		184,240		183,915		177,112		157,236		24,545
2014									199,433		202,939		204,657		200,557		199,340		197,187		53,905
2015											214,735		215,099		216,061		215,889		213,662		67,030
2016													240,440		245,820		250,868		254,154		99,784
2017															276,929		270,589		279,172		133,392
2018																	264,570		268,506		168,425
2019																			263,525		214,542
																	Total		$	2,136,911



Reinsurance liability
	Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
	For the years ended December 31,
Accident year	2010 unaudited		2011 unaudited		2012 unaudited		2013 unaudited		2014 unaudited		2015 unaudited		2016 unaudited		2017 unaudited		2018 unaudited		2019
2010	$	2,479	$	17,652	$	46,199	$	62,287	$	83,792	$	97,430	$	108,748	$	119,678	$	128,386	$	130,566
2011			5,197		21,291		40,009		70,083		92,477		112,347		123,403		135,627		141,483
2012					3,541		12,800		28,384		58,777		78,235		101,164		115,618		125,979
2013							5,971		22,235		52,328		69,055		88,262		102,593		113,127
2014									7,083		28,661		48,420		70,138		89,412		109,974
2015											7,270		27,455		54,517		80,865		108,961
2016													11,874		37,703		69,558		111,870
2017															12,438		42,147		78,477
2018																	19,303		49,795
2019																			19,157
Total																			989,389

All outstanding liabilities before 2010, net of reinsurance																			80,768

Liabilities for claims and claim adjustment expenses, net of reinsurance																			$	1,228,290



Reconciliation of the disclosure of incurred and paid claims development to the liability for unpaid claims and claim adjustment expenses

	At December 31, 2019
	Net outstanding liabilities		Reinsurance recoverable on unpaid claims		Gross outstanding liabilities

Insurance segment
Property and other	$	579,613	$	358,193	$	937,806
Marine	350,692		164,005		514,697
Aviation	86,940		36,094		123,034
Credit and political risk	98,219		34,615		132,834
Professional lines	1,680,272		1,105,684		2,785,956
Liability	738,722		1,108,382		1,847,104
Total insurance segment	3,534,458		2,806,973		6,341,431

Reinsurance segment
Property and other	1,644,046		448,885		2,092,931
Credit and surety	256,999		64,475		321,474
Professional lines	969,167		135,505		1,104,672
Motor	1,229,604		209,495		1,439,099
Liability	1,228,290		212,423		1,440,713
Total reinsurance segment	5,328,106		1,070,783		6,398,889
Total	$	8,862,564	$	3,877,756	12,740,320
Unallocated claims adjustment expenses					140,650
Foreign exchange and other⁽¹⁾					27,202
(Ceded)/assumed reserves related to retroactive transactions					(156,091		)

Total liability for unpaid claims and claims adjustment expense					$	12,752,081

Non-U.S. dollar denominated loss data is converted to U.S dollar at the rates of exchange in effect at the balance sheet date for material underlying currencies. Fluctuations in currency exchange rates may cause material shifts in loss development. Reserves for losses and loss expenses disclosed in the consolidated balance sheets are also remeasured using rates of exchange in effect at the balance sheet date.