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RESERVE FOR LOSSES AND LOSS EXPENSES | 12 Months Ended
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Dec. 31, 2022
Insurance Loss Reserves [Abstract] |
RESERVE FOR LOSSES AND LOSS EXPENSES | Reserving Methodology Sources of Information 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 segment data is disaggregated by line of business 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. Lines of business are reviewed 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 lines of business are reviewed on a regular basis and adjusted over time as the Company's business evolves. The paid and incurred claim data serves as a key input to many of the methods employed by the Company's actuaries. The following tables map the Company's lines of business to expected claim tails:
Insurance segment
| Expected claims tail
| Short | Medium | Long
Lines of business |  |  |
Property | X |  |
Accident and health | X |  |
Marine and aviation | X |  |
Cyber |  | X |
Professional lines |  | X |
Credit and political risk |  | X |
Liability |  |  | X
Reinsurance segment |  |
| Expected claims tail
| Short | Medium | Long
Lines of business |  |  |
Accident and health | X |  |
Agriculture | X |  |
Marine and aviation | X |  |
Professional lines |  | X |
Credit and surety |  | X |
Motor |  |  | X
Liability |  |  | X
Run-off lines |  |  |
Catastrophe | X |  |
Property | X |  |
Engineering | X |  |
Actuarial Analysis 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 lines of business. The relative strengths and weaknesses of the particular estimation methods when applied to a particular group of claims can also change over time. The following is a brief description of the reserve estimation methods commonly employed by the Company's actuaries including a discussion of their particular strengths and weaknesses: •Expected Loss Ratio Method ("ELR Method"): This method estimates ultimate losses for an accident year or underwriting year by applying an expected loss ratio ("ELR") to the earned or written premium for that year. Generally, expected loss ratios are based on one or more of (a) an analysis of historical loss experience to date, (b) pricing information and (c) industry data, adjusted as appropriate, to reflect changes in rates, loss and exposure trends, and terms and conditions. This method is insensitive to actual incurred losses for the accident year or underwriting year in question and is, therefore, often useful in the early stages of development when very few losses have been incurred. Conversely, the lack of sensitivity to incurred/paid losses for the accident year or underwriting year in question means that this method is usually inappropriate in later stages of an accident year or underwriting year’s development. •Loss Development Method (also referred to as the "Chain Ladder Method" or "Link Ratio Method"): This method assumes that the losses incurred/paid for each accident year or underwriting year at a particular development stage follow a relatively similar pattern. It assumes that on average, every accident year or underwriting year will display the same percentage of ultimate losses incurred/paid at the same point in time after the inception of that year. The percentages incurred/paid are established for each development stage (e.g., 12 months, 24 months, etc.) after examining averages from historical loss development data and/or, in limited instances, external industry benchmark information. Ultimate losses are then estimated by multiplying the actual incurred/paid losses by the reciprocal of the established incurred/paid percentage. The strengths of this method are that it reacts to loss emergence/payments and that it makes full use of historical claim emergence/payment experience. However, this method has weaknesses when the underlying assumption of stable loss development/payment patterns is not valid. This could be the consequence of changes in business mix, claim inflation trends or claim reporting practices and/or the presence of large claims, among other things. Furthermore, this method 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. •Bornhuetter-Ferguson Method ("BF Method"): This method can be seen as a combination of the ELR and Loss Development Methods, under which the Loss Development Method is given progressively more weight as an accident year or underwriting year matures. The main advantage of the BF Method is that it provides a more stable estimate of ultimate losses than the Loss Development Method at earlier stages of development, while remaining more responsive to emerging loss development than the ELR Method. In addition, the BF Method allows for the incorporation of external market information through the use of expected loss ratios, whereas the Loss Development Method does not incorporate such information. 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 line of business 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 line of business is established by the Company's actuaries 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. Key Actuarial Assumptions The use of the above actuarial methods requires the Company to make certain explicit assumptions, the most significant of which are: (1) expected loss ratios and (2) loss development patterns. The Company relies on historical loss experience in establishing expected loss ratios and selecting loss development patterns. 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 the Company's 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 the Company's underwriters and actuaries about the impact of changes in pricing, terms and conditions and coverage. Market experience for some lines of business as compiled and analyzed by an independent actuarial firm is also considered, as appropriate. Claim Tail Analysis Short-tail Business 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. Short-tail business includes the underlying exposures in the property, accident and health, marine and aviation lines of business in the insurance segment, and the underlying exposures in the accident and health, agriculture, marine and aviation, and run-off (catastrophe, property and engineering) lines of business in the reinsurance segment. The key actuarial assumptions for short-tail business are primarily developed with reference to the Company's historical loss experience for expected loss ratios and loss development patterns utilized to establish estimates of ultimate losses for an accident year or underwriting 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 or underwriting years. The majority of development for an accident year or underwriting year is expected to be recognized in the subsequent one to three years. Refer to 'Net incurred and Paid Claims Development Tables by Accident Year' for further details on key actuarial assumptions associated with these lines of business. Medium-tail Business Medium-tail business generally has claim reporting and settlement periods that are longer than those of short-tail lines of business. Medium-tail business includes the underlying exposures in the cyber, professional lines, and credit and political risk lines of business in the insurance segment, and professional lines, and credit and surety lines of business in the reinsurance segment. The Company considers credit and political risk business to have a medium-tail, due to the complex nature of claims and the potential additional time that may be required to realize subrogation assets. With respect to key actuarial assumptions, the Company relies on its loss experience when establishing expected loss ratios and selecting loss development patterns. Loss reporting patterns for medium tail 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 reserves for losses and loss expenses 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 line of business 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 line of business and by year, depending on its assessment of the stability and relevance of such indications. Refer to 'Net incurred and Paid Claims Development Tables by Accident Year' for further details on key actuarial assumptions associated with these lines of business. Long-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. Long-tail business includes the underlying exposures in the liability line of business in the insurance segment and the liability and motor line of business in the reinsurance segment. 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. Key actuarial assumptions for long-tail business were derived from the Company's historical loss experience. 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. 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 line of business can include, but are not limited to, underlying financial and medical inflation, judicial inflation, mass tort and changing social trends. Refer to 'Net incurred and Paid Claims Development Tables by Accident Year' for further details on key actuarial assumptions associated with these lines of business. Reserving for Catastrophic Events The Company cannot estimate losses from widespread catastrophic events, such as hurricanes and earthquakes, using the traditional actuarial methods described above. The magnitude and complexity of losses associated with certain of these events 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 reserves for losses and loss expenses related to the COVID-19 pandemic represents the Company's best estimate of losses and loss expenses that have been incurred at December 31, 2022. The determination of these net reserves for losses and loss expenses was based on the Company's ground-up assessment of coverage from individual contracts and treaties across all lines of business, and included a review of modeling analyses and market information, where appropriate. In addition, the Company considered information received from clients, brokers and loss adjusters. The estimate of net reserves for losses and loss expenses related to the COVID-19 pandemic is subject to significant uncertainty. This uncertainty is driven by the inherent difficulty in making assumptions around the impact of the COVID-19 pandemic due to the lack of comparable events, the ongoing nature of the event, and its far-reaching impacts on world-wide economies and the health of the population. These assumptions include: •the nature and the duration of the pandemic; •the effects on health, the economy and the Company's customers; •the response of government bodies including legislative, regulatory or judicial actions and social influences that could alter the interpretation of the Company's contracts; •the coverage provided under the Company's contracts; •the coverage provided by the Company's ceded reinsurance; and •the evaluation of the loss and impact of loss mitigation actions. While the Company believes its estimate of net reserves for losses and loss expenses is adequate for losses and loss expenses that have been incurred at December 31, 2022 based on current facts and circumstances, the Company continues to monitor the appropriateness of these assumptions as new information comes to light, and adjustments are made to the estimate of ultimate losses related to the COVID-19 pandemic if there are developments that are different from previous expectations. Adjustments are recorded in the period in which they are identified. Actual losses for this event may ultimately differ materially from the Company's current estimates. Net reserves for losses and loss expenses related to catastrophes other than the COVID-19 pandemic represent the Company's best estimate of losses and loss expenses that have been incurred at December 31, 2022. The determination of these net reserves for losses and loss expenses is 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: •estimates of the size of insured industry losses from the catastrophic event and the Company's corresponding market share; •a review of the Company's portfolio of contracts to identify those contracts which may be exposed to the catastrophic event; •a review of modeled loss estimates based on information previously reported by customers and brokers, including exposure data obtained during the underwriting process; •a review of the coverage provided by the Company's ceded reinsurance; •discussions of the impact of the event with customers and brokers; and •catastrophe bulletins published by various independent statistical reporting agencies. A blend of these information sources is generally used to arrive at aggregate estimates of the ultimate losses arising from these catastrophic events. While the Company believes its estimate of net reserves for losses and loss expenses is adequate for losses and loss expenses that have been incurred at December 31, 2022 based on current facts and circumstances, the Company monitors changes in paid and incurred losses in relation to each catastrophe in subsequent reporting periods 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. Actual losses for these events may ultimately differ materially from the Company's current estimates. Selection of Reported Reserves – Management’s Best Estimate The Company's loss reserving process involves the collaboration of its underwriting, claims, actuarial, ceded reinsurance and finance departments, including multiple 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. Reserve for Losses and Loss Expenses Reserve for losses and loss expenses comprise the following:
| At December 31, | 2022 |  | 2021 |
| Reserve for reported losses and loss expenses | $ | 5,555,865 |  |  | $ | 5,539,971 |  |
| Reserve for losses incurred but not reported | 9,612,998 |  |  | 9,113,123 |  |
| Reserve for losses and loss expenses | $ | 15,168,863 |  |  | $ | 14,653,094 |  |
Reserve Roll-forward The following table presents a reconciliation of the Company's beginning and ending gross reserves for losses and loss expenses and net reserves for unpaid losses and loss expenses:
| Year ended December 31, | 2022 |  | 2021 |  | 2020 |
| Gross reserve for losses and loss expenses, beginning of year | $ | 14,653,094 |  |  | $ | 13,926,766 |  |  | $ | 12,752,081 |  |
| Less reinsurance recoverable on unpaid losses, beginning of year | (5,017,611) |  |  | (4,496,641) |  |  | (3,877,756) |  |
| Net reserve for unpaid losses and loss expenses, beginning of year | 9,635,483 |  |  | 9,430,125 |  |  | 8,874,325 |  |
| Net incurred losses and loss expenses related to: |  |  |  |  |  |
| Current year | 3,267,943 |  |  | 3,041,193 |  |  | 3,297,161 |  |
| Prior years | (25,533) |  |  | (32,410) |  |  | (15,909) |  |
|  | 3,242,410 |  |  | 3,008,783 |  |  | 3,281,252 |  |
| Net paid losses and loss expenses related to: |  |  |  |  |  |
| Current year | (457,857) |  |  | (490,011) |  |  | (571,442) |  |
| Prior years | (2,397,213) |  |  | (2,274,240) |  |  | (2,365,959) |  |
|  | (2,855,070) |  |  | (2,764,251) |  |  | (2,937,401) |  |
| Foreign exchange and other | (685,132) |  |  | (39,174) |  |  | 211,949 |  |
| Net reserve for unpaid losses and loss expenses, end of year | 9,337,691 |  |  | 9,635,483 |  |  | 9,430,125 |  |
| Reinsurance recoverable on unpaid losses, end of year | 5,831,172 |  |  | 5,017,611 |  |  | 4,496,641 |  |
| Gross reserve for losses and loss expenses, end of year | $ | 15,168,863 |  |  | $ | 14,653,094 |  |  | $ | 13,926,766 |  |
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 2022, 2021 and 2020, the Company recognized catastrophe and weather-related losses, net of reinstatement premiums, of $403 million, $443 million and $774 million. On December 9, 2022, the Company entered into loss portfolio transfer reinsurance agreements with a third-party reinsurer which were deemed to have met the established criteria for retroactive reinsurance accounting. At December 31, 2022, foreign exchange and other included an increase in reinsurance recoverable on unpaid losses of $422 million related to this transaction. At December 31, 2021, foreign exchange and other included a decrease in reinsurance recoverable on unpaid losses of $49 million related to the Reinsurance to Close of the 2018 year of account of Syndicate 2007. Estimates for Catastrophe Events At December 31, 2022, net reserve for losses and loss expenses included estimated amounts for numerous catastrophe events. The magnitude and complexity of losses arising from certain of these events 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. These events include Hurricane Ian, Winter Storm Elliot, June European Convective Storms, the Russia-Ukraine war and COVID-19 in 2022, Hurricane Ida, U.S. Winter Storms Uri and Viola, and July European Floods in 2021, and the COVID-19 pandemic, Hurricanes Laura, Sally, Zeta and Delta, Midwest derecho and wildfires across the West Coast of the United States in 2020. As a result, actual losses for these events may ultimately differ materially from current estimates. Prior Year Reserve Development The Company's 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:
|  | Net Favorable Prior Year Reserve Development |  |
|  | Insurance |  | Reinsurance |  | Total |  |
| Year ended December 31, 2022 | $ | 16,350 |  |  | $ | 9,183 |  |  | $ | 25,533 |  |  |
| Year ended December 31, 2021 | $ | 18,360 |  |  | $ | 14,049 |  |  | $ | 32,410 |  |  |
| Year ended December 31, 2020 | $ | 8,937 |  |  | $ | 6,972 |  |  | $ | 15,909 |  |  |
The following sections provide further details on net prior year reserve development by segment, line of business and accident year. Insurance Segment:
|  | Favorable (Adverse) |
| Years ended December 31, | 2022 |  | 2021 |  | 2020 |
| Property | $ | 52,512 |  |  | $ | 71,032 |  |  | $ | 44,054 |  |
| Accident and health | (12,856) |  |  | 15,844 |  |  | 2,738 |  |
| Marine and aviation | 27,927 |  |  | 42,535 |  |  | 23,195 |  |
| Cyber | 8,416 |  |  | (7,329) |  |  | 2,205 |  |
| Professional lines | (29,093) |  |  | (71,258) |  |  | (37,866) |  |
| Credit and political risk | 24,361 |  |  | 10,363 |  |  | (745) |  |
| Liability | (54,917) |  |  | (42,827) |  |  | (24,644) |  |
| Total | $ | 16,350 |  |  | $ | 18,360 |  |  | $ | 8,937 |  |
In 2022, we recognized $16 million of net favorable prior year reserve development, the principal components of which were: •$53 million of net favorable prior year reserve development on property business primarily due to better than expected loss emergence attributable to 2018 and 2020 catastrophe events and decreases in loss estimates attributable to specific large claims related to 2012 and older accident years. •$28 million of net favorable prior year reserve development on marine and aviation business primarily due to better than expected loss emergence attributable to the marine cargo and specie, and marine offshore energy books of business mainly related to the 2018, 2019 and 2021 accident years, and better than expected loss emergence attributable to aviation business mainly related to the 2021 accident year. •$24 million of net favorable prior year reserve development on credit and political risk business primarily due to better than expected loss emergence mainly related to the 2017 through 2021 accident years. •$8 million of net favorable prior year reserve development on cyber business primarily due to better than expected loss emergence mainly related to 2020 and older accident years, partially offset by reserve strengthening related to the 2021 accident year. •$55 million of net adverse prior year reserve development on liability business primarily due to reserve strengthening within the U.S. programs book of business mainly related to the 2016 through 2021 accident years, and the U.S. primary casualty book of business mainly related to the 2015 through 2018 and the 2021 accident years. •$29 million of net adverse prior year reserve development on professional lines business primarily due to reserve strengthening within the U.S. commercial management solutions book of business mainly related to the 2015, 2018 and 2019 accident years. •$13 million of net adverse prior year development on accident and health business primarily due to reserve strengthening mainly related to the 2019 through 2021 accident years. In 2021, we recognized $18 million of net favorable prior year reserve development, the principal components of which were: •$71 million of net favorable prior year reserve development on pr operty busine ss primarily due to decreases in loss estimates attributable to specific large claims related to the 2011 and 2012 accident years, and better than expected loss emergence attributable to 2018 to 2020 catastrophe events, and the global property book of business related to the 2017 through 2019 accident years. •$43 million of net favorable prior year reserve development on marine and aviation business primarily due to better than expected loss emergence attributable to marine cargo, marine offshore energy and marine specie books of business mainly related to the 2017, 2018 and 2020 accident years, decreases in loss estimates attributable to specific large marine claims related to the 2012 accident year, and better than expected loss emergence attributable to aviation business mainly related to the 2020 accident year. •$16 million of net favorable prior year reserve development on accident and health business primarily due to better than expected loss emergence related to the 2019 and 2020 accident years. •$10 million of net favorable prior year reserve development on credit and political risk business primarily due to better than expected loss emergence mainly related to the 2018 and 2019 accident years. •$71 million of net adverse prior year reserve development on professional lines business primarily due to reserve strengthening within run-off lines of business mainly related to the 2016 through 2019 accident years and the U.S. commercial management solutions book of business mainly related to the 2017 and 2019 accident years. •$43 million of net adverse prior year reserve development on liability business primarily due to reserve strengthening within the program book of business mainly related to the 2018 and 2019 accident years. •$7 million of net adverse prior year reserve development on cyber business primarily due to reserve strengthening within the global cyber and technology book of business mainly related to the 2019 accident year. In 2020, we recognized $9 million of net favorable prior year reserve development, the principal components of which were: •$44 million of net favorable prior year reserve development on property business primarily due to better than expected loss emergence mainly related to the 2018 and 2019 accident years, and better than expected loss emergence attributable to 2017 to 2019 catastrophe events. •$23 million of net favorable prior year reserve development on marine and aviation business primarily due to better than expected loss emergence attributable to marine business mainly related to the 2018 accident year. •$38 million of net adverse prior year reserve development on professional lines business primarily due to reserve strengthening within the European professional indemnity and financial institutions books of business and the U.S. commercial management solutions book of business mainly related to the 2018 and 2019 accident years, and an increase in the loss estimate attributable to a specific large claim related to the 2009 accident year. •$25 million of net adverse prior year reserve development on liability business primarily due to reserve strengthening within the U.S. primary casualty, U.S. excess casualty and program books of business mainly related to the 2017 and 2018 accident years. Reinsurance Segment:
|  | Favorable (Adverse) |
| Years ended December 31, | 2022 |  | 2021 |  | 2020 |
| Accident and health | $ | 14,199 |  |  | $ | 5,861 |  |  | $ | 7,373 |  |
| Agriculture | 11,703 |  |  | 423 |  |  | 5,606 |  |
| Marine and aviation | 2,597 |  |  | (10,767) |  |  | (12,664) |  |
| Professional lines | (54,820) |  |  | (23,718) |  |  | (15,352) |  |
| Credit and surety | 43,567 |  |  | 3,436 |  |  | 36,828 |  |
| Motor | 18,161 |  |  | 43,968 |  |  | 21,086 |  |
| Liability | (58,148) |  |  | (17,919) |  |  | (29,656) |  |
| Run-off lines |  |  |  |  |  |
| Catastrophe | (504) |  |  | (36) |  |  | (3,547) |  |
| Property | 42,523 |  |  | 17,651 |  |  | 6,818 |  |
| Engineering | (10,095) |  |  | (4,850) |  |  | (9,520) |  |
| Total run-off lines | 31,924 |  |  | 12,765 |  |  | (6,249) |  |
| Total | $ | 9,183 |  |  | $ | 14,049 |  |  | $ | 6,972 |  |
In 2022, we recognized $9 million of net favorable prior year reserve development, the principal components of which were: •$44 million of net favorable development on credit and surety business primarily due to better than expected loss emergence mainly related to the 2015 through 2021 accident years, most notably within the mortgage book of business related to the 2020 and 2021 accident years. •$18 million of net favorable prior year reserve development on motor business primarily due to better than expected loss emergence mainly related to the 2017 through 2020 accident years. •$14 million of net favorable development on accident and health business primarily due to better than expected loss emergence mainly related to the 2019 through 2021 accident years. •$12 million of net favorable development on agriculture business primarily due to better than expected loss emergence mainly related to the 2019 and 2021 accident years. •$58 million of net adverse development on liability business primarily due to increases in loss estimates attributable to specific large claims related to the 2018 and 2021 accident years and reserve strengthening within the U.S. non-proportional books of business related to the 2016 through 2019 accident years. •$55 million of net adverse prior year reserve development on professional lines business primarily due to increases in loss estimates attributable to one cedant related to several accident years, and reserve strengthening within the U.S. public D&O proportional books of business related to 2017 and older accident years. Run-off lines •$43 million of net favorable development on property business primarily due to better than expected loss emergence attributable to 2017 through 2021 catastrophe events and better than expected attritional loss emergence attributable to the 2021 accident year. •$10 million of net adverse prior year reserve development on engineering business primarily due to increases in loss estimates attributable to specific large claims mainly related to the 2011, 2018 and 2019 accident years. In 2021, we rec ognized $14 million of net favorable prior year reserve development, the principal components of which were: •$44 million of net favorable prior year reserve development on motor business primarily due to proportional and non-proportional treaty business mainly related to 2016 and older accident years. •$6 million of net favorable prior year development on accident and health business primarily due to better than expected loss emergence mainly related to the 2019 and 2020 accident years. •$24 million of net adverse prior year reserve development on professional lines business primarily due to reserve strengthening within the U.S. and European books of business related to the 2015 through 2018 accident years and increases in the loss estimates attributable to specific large claims related to the 2015 to 2017 accident years. •$18 million of net adverse prior year reserve development on liability business primarily due to increases in loss estimates attributable to specific large claims related to the 2017 and 2018 accident years and reserve strengthening within the commercial auto liability and U.S. multiline/regional books of business related to the 2018 accident year. •$11 million of net adverse prior year development on marine and aviation business primarily due to an increase in the loss estimate attributable to specific large claim mainly related to 2018 accident year. Run-off line s •$18 million of net favorable prior year reserve development on property business primarily due to decreases in loss estimates attributable to specific large claims related to the 2009, and 2017 through 2019 accident years, and better than expected loss emergence attributable to 2017 through 2019 catastrophe events, partially offset by reserve strengthening attributable to 2020 catastrophe events. •$5 million of net adverse prior year development on engineering business primarily due to reserve strengthening mainly related to the 2016, 2017 and 2019 accident years, partially offset by decreases in loss estimates attributable to specific large claims related to the 2018 accident year. In 2020, we recognized $7 million of net favorable prior year reserve development, the principal components of which were: •$37 million of net favorable prior year reserve development on credit and surety business primarily due to better than expected loss emergence related to several accident years. •$21 million of net favorable prior year reserve development on motor business primarily due to non-proportional treaty business mainly related to older accident years, partially offset by increases in loss estimates for proportional treaty business mainly related to the 2018 accident year. •$7 million of net favorable prior year development on accident and health business primarily due to better than expected loss emergence mainly related to 2018 and 2019 accident years. •$6 million of net favorable prior year development on agriculture business primarily due to better than expected loss emergence mainly related to 2018 and 2019 accident years. •$30 million of net adverse prior year reserve development on liability business primarily due to reserve strengthening within the U.S. casualty, the U.S. multiline/regional and the European books of business mainly related to the 2016 through 2019 accident years and an increase in the loss estimate attributable to a specific large claim related to the 2009 accident year. •$15 million of net adverse prior year reserve development on professional lines business primarily due to an increase in the loss estimate attributable to a specific large claim related to the 2016 accident year and reserve strengthening within the European book of business mainly related to the 2016 to 2018 accident years. •$13 million of net adverse prior year development on marine and aviation business primarily due to an increase in the loss estimate attributable to a specific large claim related to the 2019 accident year. Run-off line s •$7 million of net favorable prior year development on property business primarily due to better than expected loss emergence attributable to 2019 catastrophe events. •$10 million of net adverse prior year development in engineering business primarily due to reserve strengthening mainly related to the 2016 through 2018 accident years. Net Incurred and Paid Claims Development Tables by Accident Year 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 average annual percentage payout of incurred claims by age for each lines of business. The loss development tables are presented on an accident year basis for each line of business in 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. There are many considerations in establishing net reserves for losses and loss expenses. An attempt to evaluate net reserves for losses and loss expenses using solely the paid losses and claim counts presented in these tables could be misleading. When projecting net reserves for losses and loss expenses, the Company relies on several inputs in addition to the information presented in this disclosure including case incurred loss projections, changes in mix of business, external trends, and additional qualitative information. The Company cautions against mechanical application of standard actuarial methodologies to project ultimate losses using data presented in this disclosure. Insurance Segment The reporting of cumulative claims frequency for the lines of business 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 lines of business. 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. Insurance Property 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 renewable energy installations, and physical damage and business interruption following an act of terrorism. This line of business includes primary and excess risks, some of which are catastrophe-exposed. In general, reporting and payment patterns are relatively short-tailed although they can be volatile due to the incidence of catastrophe events.
Insurance property
| Incurred claims and allocated claim adjustment expenses, net of reinsurance | At December 31, 2022
| 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 | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 unaudited | 2020 unaudited | 2021 unaudited | 2022
2013 | $ | 269,749 |  | $ | 263,335 |  | $ | 236,276 |  | $ | 232,389 |  | $ | 231,357 |  | $ | 241,593 |  | $ | 240,025 |  | $ | 239,742 |  | $ | 239,749 |  | $ | 239,662 |  | $ | 608 |  | 3,455
2014 |  | 288,993 |  | 287,038 |  | 276,777 |  | 262,345 |  | 261,928 |  | 259,507 |  | 255,612 |  | 252,918 |  | 252,842 |  | 846 |  | 4,128
2015 |  |  | 207,460 |  | 199,738 |  | 191,987 |  | 189,724 |  | 186,403 |  | 188,334 |  | 178,338 |  | 180,614 |  | 322 |  | 4,168
2016 |  |  |  | 263,277 |  | 286,359 |  | 278,599 |  | 264,244 |  | 258,563 |  | 259,012 |  | 258,432 |  | 1,763 |  | 6,589
2017 |  |  |  |  | 790,282 |  | 696,217 |  | 688,738 |  | 679,272 |  | 674,642 |  | 674,955 |  | 16,736 |  | 10,037
2018 |  |  |  |  |  | 601,920 |  | 648,546 |  | 628,383 |  | 620,745 |  | 619,470 |  | 8,696 |  | 9,586
2019 |  |  |  |  |  |  | 365,895 |  | 354,498 |  | 344,865 |  | 356,278 |  | 3,174 |  | 9,470
2020 |  |  |  |  |  |  |  | 639,024 |  | 625,403 |  | 574,412 |  | 45,011 |  | 12,282
2021 |  |  |  |  |  |  |  |  | 375,903 |  | 371,684 |  | 22,282 |  | 7,562
2022 |  |  |  |  |  |  |  |  |  | 412,001 |  | 168,886 |  | 5,412
|  |  |  |  |  |  |  |  | Total | $ | 3,940,350 |  |  |
Insurance property |  |  |  |  |  |
| Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance |  |  |  |  |  |
| For the years ended December 31, |  |  |  |  |  |
Accident year | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 unaudited | 2020 unaudited | 2021 unaudited | 2022 |  |  |  |  |  |
2013 | $ | 58,733 |  | $ | 167,580 |  | $ | 204,735 |  | $ | 214,480 |  | $ | 225,390 |  | $ | 228,191 |  | $ | 229,834 |  | $ | 233,526 |  | $ | 236,432 |  | $ | 236,997 |  |  |  |  |  |  |
2014 |  | 100,650 |  | 201,651 |  | 244,033 |  | 249,980 |  | 253,810 |  | 254,575 |  | 251,427 |  | 252,414 |  | 252,430 |  |  |  |  |  |  |
2015 |  |  | 67,511 |  | 144,649 |  | 165,616 |  | 179,204 |  | 178,913 |  | 185,314 |  | 176,515 |  | 181,344 |  |  |  |  |  |  |
2016 |  |  |  | 82,211 |  | 206,273 |  | 242,194 |  | 249,831 |  | 250,150 |  | 255,203 |  | 252,620 |  |  |  |  |  |  |
2017 |  |  |  |  | 190,341 |  | 509,810 |  | 617,753 |  | 645,828 |  | 640,919 |  | 630,476 |  |  |  |  |  |  |
2018 |  |  |  |  |  | 218,618 |  | 463,312 |  | 556,715 |  | 566,699 |  | 584,059 |  |  |  |  |  |  |
2019 |  |  |  |  |  |  | 145,706 |  | 251,353 |  | 297,493 |  | 334,179 |  |  |  |  |  |  |
2020 |  |  |  |  |  |  |  | 181,569 |  | 419,718 |  | 473,647 |  |  |  |  |  |  |
2021 |  |  |  |  |  |  |  |  | 133,811 |  | 284,795 |  |  |  |  |  |  |
2022 |  |  |  |  |  |  |  |  |  | 97,207 |  |  |  |  |  |  |
Total | 3,327,754 |  |  |  |  |  |  |
All outstanding liabilities before 2013, net of reinsurance | 12,328 |  |  |  |  |  |  |
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ | 624,924 |  |  |  |  |  |  |
Insurance property
Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited)
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10
32.9% | 41.6% | 13.9% | 4.7% | 1.4% | 1.1% | (1.6%) | 1.5% | 0.6% | 0.2%
Insurance Accident and Health The accident and health line of business includes accidental death, travel insurance and specialty health products for employer and affinity groups. In general, reporting and payment patterns are relatively short-tailed although they can be volatile due to the incidence of catastrophe events. An increase in limited benefits medical business written in 2017 resulted in a significant increase in reported claims observed in that year.
Insurance accident and health
| Incurred claims and allocated claim adjustment expenses, net of reinsurance | At December 31, 2022
| 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 | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 unaudited | 2020 unaudited | 2021 unaudited | 2022
2013 | $ | 38,763 |  | $ | 34,160 |  | $ | 34,413 |  | $ | 34,383 |  | $ | 35,045 |  | $ | 35,245 |  | $ | 33,026 |  | $ | 32,794 |  | $ | 33,916 |  | $ | 35,353 |  | $ | 1,220 |  | 49,549
2014 |  | 70,803 |  | 66,137 |  | 65,588 |  | 64,057 |  | 63,685 |  | 64,420 |  | 63,645 |  | 62,846 |  | 61,479 |  | 656 |  | 58,081
2015 |  |  | 69,643 |  | 67,991 |  | 64,511 |  | 62,720 |  | 63,278 |  | 62,966 |  | 62,298 |  | 62,958 |  | 1,495 |  | 44,138
2016 |  |  |  | 84,024 |  | 83,697 |  | 84,118 |  | 85,247 |  | 84,921 |  | 85,938 |  | 85,738 |  | 1,597 |  | 87,001
2017 |  |  |  |  | 112,583 |  | 118,736 |  | 116,690 |  | 114,782 |  | 114,855 |  | 114,738 |  | 160 |  | 688,000
2018 |  |  |  |  |  | 109,900 |  | 113,711 |  | 112,819 |  | 110,861 |  | 111,865 |  | 170 |  | 738,139
2019 |  |  |  |  |  |  | 72,971 |  | 74,084 |  | 64,586 |  | 68,074 |  | (482) |  | 668,008
2020 |  |  |  |  |  |  |  | 69,316 |  | 63,476 |  | 66,975 |  | 1,475 |  | 713,198
2021 |  |  |  |  |  |  |  |  | 69,349 |  | 71,672 |  | 1,695 |  | 418,260
2022 |  |  |  |  |  |  |  |  |  | 98,419 |  | 46,362 |  | 227,274
|  |  |  |  |  |  |  |  | Total | $ | 777,271 |  |  |
Insurance accident and health
| Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance |  |  |
| For the years ended December 31, |  |  |
Accident year | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 unaudited | 2020 unaudited | 2021 unaudited | 2022 |  |  |
2013 | $ | 16,332 |  | $ | 29,732 |  | $ | 31,088 |  | $ | 32,330 |  | $ | 32,455 |  | $ | 32,675 |  | $ | 32,744 |  | $ | 32,902 |  | $ | 34,324 |  | $ | 34,385 |  |  |  |
2014 |  | 31,094 |  | 55,506 |  | 59,416 |  | 60,571 |  | 61,226 |  | 61,556 |  | 61,428 |  | 60,364 |  | 60,773 |  |  |  |
2015 |  |  | 30,760 |  | 55,604 |  | 58,702 |  | 59,574 |  | 60,585 |  | 60,461 |  | 61,116 |  | 61,208 |  |  |  |
2016 |  |  |  | 40,548 |  | 77,102 |  | 80,888 |  | 81,731 |  | 82,791 |  | 83,188 |  | 83,896 |  |  |  |
2017 |  |  |  |  | 62,112 |  | 106,988 |  | 112,172 |  | 113,583 |  | 114,694 |  | 113,874 |  |  |  |
2018 |  |  |  |  |  | 60,816 |  | 104,196 |  | 106,590 |  | 110,259 |  | 111,146 |  |  |  |
2019 |  |  |  |  |  |  | 44,546 |  | 60,783 |  | 62,277 |  | 67,232 |  |  |  |
2020 |  |  |  |  |  |  |  | 36,155 |  | 51,948 |  | 60,375 |  |  |  |
2021 |  |  |  |  |  |  |  |  | 39,096 |  | 61,291 |  |  |  |
2022 |  |  |  |  |  |  |  |  |  | 46,279 |  |  |  |
Total | 700,459 |  |  |  |
All outstanding liabilities before 2013, net of reinsurance | 50 |  |  |  |
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ | 76,862 |  |  |  |
Insurance accident and health
Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited)
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10
52.2% | 35.1% | 5.1% | 2.8% | 1.0% | 0.1% | 0.5% | (0.4%) | 2.4% | 0.2%
Insurance Marine and Aviation The marine line of business provides cover for traditional marine classes, including offshore energy, renewable offshore energy, cargo, liability including kidnap and ransom, fine art, specie, and hull 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 line of business with marine liability exhibiting the longest marine reporting and payment patterns as claims involve passengers and third parties. Exposure to natural perils such as windstorm and earthquake can result in volatility. The aviation line of business 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 marine and aviation
| Incurred claims and allocated claim adjustment expenses, net of reinsurance | At December 31, 2022
| 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 | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 unaudited | 2020 unaudited | 2021 unaudited | 2022
2013 | $ | 94,098 |  | $ | 115,403 |  | $ | 109,330 |  | $ | 110,382 |  | $ | 95,998 |  | $ | 95,389 |  | $ | 95,565 |  | $ | 94,661 |  | $ | 95,315 |  | $ | 94,037 |  | $ | 618 |  | 3,401
2014 |  | 79,979 |  | 66,912 |  | 71,356 |  | 64,952 |  | 66,228 |  | 64,264 |  | 56,132 |  | 53,409 |  | 52,696 |  | 922 |  | 3,550
2015 |  |  | 187,548 |  | 166,614 |  | 162,516 |  | 154,835 |  | 141,433 |  | 146,923 |  | 146,411 |  | 146,338 |  | 1,083 |  | 4,292
2016 |  |  |  | 115,466 |  | 111,852 |  | 109,445 |  | 101,880 |  | 101,293 |  | 100,428 |  | 101,331 |  | 1,236 |  | 4,821
2017 |  |  |  |  | 260,951 |  | 228,267 |  | 229,379 |  | 227,315 |  | 219,372 |  | 219,134 |  | 13,765 |  | 8,537
2018 |  |  |  |  |  | 236,572 |  | 261,748 |  | 247,886 |  | 241,156 |  | 234,514 |  | 22,650 |  | 8,699
2019 |  |  |  |  |  |  | 211,337 |  | 205,829 |  | 208,657 |  | 221,420 |  | 9,334 |  | 7,566
2020 |  |  |  |  |  |  |  | 206,992 |  | 178,479 |  | 161,972 |  | 24,006 |  | 6,741
2021 |  |  |  |  |  |  |  |  | 240,192 |  | 221,510 |  | 68,116 |  | 6,354
2022 |  |  |  |  |  |  |  |  |  | 264,395 |  | 179,643 |  | 5,240
|  |  |  |  |  |  |  |  | Total | $ | 1,717,347 |  |  |
Insurance marine and aviation
| Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
| For the years ended December 31,
Accident year | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 unaudited | 2020 unaudited | 2021 unaudited | 2022
2013 | $ | 22,659 |  | $ | 50,207 |  | $ | 62,893 |  | $ | 72,520 |  | $ | 77,260 |  | $ | 88,864 |  | $ | 89,309 |  | $ | 92,036 |  | $ | 93,247 |  | $ | 93,057 |
2014 |  | 10,323 |  | 22,841 |  | 37,098 |  | 39,607 |  | 48,895 |  | 53,363 |  | 54,548 |  | 48,832 |  | 50,668 |
2015 |  |  | 29,478 |  | 69,837 |  | 126,054 |  | 131,005 |  | 133,809 |  | 136,606 |  | 143,207 |  | 143,363 |
2016 |  |  |  | 22,870 |  | 50,925 |  | 82,993 |  | 90,225 |  | 92,182 |  | 94,129 |  | 97,216 |
2017 |  |  |  |  | 35,017 |  | 105,590 |  | 139,027 |  | 170,989 |  | 179,649 |  | 183,484 |
2018 |  |  |  |  |  | 47,056 |  | 122,623 |  | 158,852 |  | 172,496 |  | 184,154 |
2019 |  |  |  |  |  |  | 53,681 |  | 102,330 |  | 144,781 |  | 170,142 |
2020 |  |  |  |  |  |  |  | 44,436 |  | 83,842 |  | 105,653 |
2021 |  |  |  |  |  |  |  |  | 26,908 |  | 69,711 |
2022 |  |  |  |  |  |  |  |  |  | 29,843 |
Total | 1,127,291 |
All outstanding liabilities before 2013, net of reinsurance | 15,112 |
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ | 605,168 |
Insurance marine and aviation
Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited)
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10
19.8% | 26.5% | 21.8% | 8.2% | 5.9% | 5.3% | 2.6% | (2.6%) | 2.4% | (0.2%)
Insurance Cyber The cyber line of business provides cover for cyber, technology errors and omissions, media and miscellaneous professional liability. Cover is provided for a range of risks including data recovery and bricking, cyber-crime, liability and regulatory actions, business interruption, extortion, reputational harm, Payment Card Industry Data Security Standard and media liability. Typically, this line of business is anticipated to exhibit medium-tail claim reporting and payment patterns with specific first party coverages tending to develop more quickly, on average.
Insurance cyber
| Incurred claims and allocated claim adjustment expenses, net of reinsurance | At December 31, 2022 |
| 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 | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 unaudited | 2020 unaudited | 2021 unaudited | 2022 |
2013 | $ | 67,211 |  | $ | 66,409 |  | $ | 65,870 |  | $ | 47,310 |  | $ | 42,557 |  | $ | 34,399 |  | $ | 33,537 |  | $ | 32,591 |  | $ | 32,557 |  | $ | 35,564 |  | $ | 5,447 |  | 1,335 |
2014 |  | 70,557 |  | 69,690 |  | 69,955 |  | 57,876 |  | 47,342 |  | 42,887 |  | 39,516 |  | 43,576 |  | 39,832 |  | 1,733 |  | 1,114 |
2015 |  |  | 65,231 |  | 63,595 |  | 63,066 |  | 51,250 |  | 50,357 |  | 50,758 |  | 52,526 |  | 49,795 |  | 5,857 |  | 1,337 |
2016 |  |  |  | 58,741 |  | 56,565 |  | 58,261 |  | 40,266 |  | 37,322 |  | 29,929 |  | 27,873 |  | 4,478 |  | 1,532 |
2017 |  |  |  |  | 53,187 |  | 50,794 |  | 56,910 |  | 52,058 |  | 51,050 |  | 49,327 |  | 6,722 |  | 1,623 |
2018 |  |  |  |  |  | 33,429 |  | 32,155 |  | 34,151 |  | 31,009 |  | 27,332 |  | 5,745 |  | 1,966 |
2019 |  |  |  |  |  |  | 54,671 |  | 58,702 |  | 81,757 |  | 81,402 |  | 16,951 |  | 2,796 |
2020 |  |  |  |  |  |  |  | 113,744 |  | 105,868 |  | 102,606 |  | 22,194 |  | 2,821 |
2021 |  |  |  |  |  |  |  |  | 124,596 |  | 133,673 |  | 50,583 |  | 2,356 |
2022 |  |  |  |  |  |  |  |  |  | 127,970 |  | 110,682 |  | 1,341 |
|  |  |  |  |  |  |  |  | Total | $ | 675,374 |  |  |  |
Insurance cyber
| Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
| For the years ended December 31,
Accident year | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 unaudited | 2020 unaudited | 2021 unaudited | 2022
2013 | $ | 2,179 |  | $ | 10,833 |  | $ | 18,990 |  | $ | 21,149 |  | $ | 24,114 |  | $ | 25,564 |  | $ | 28,104 |  | $ | 28,626 |  | $ | 28,745 |  | $ | 29,117 |
2014 |  | 3,136 |  | 12,162 |  | 23,330 |  | 29,962 |  | 31,260 |  | 33,819 |  | 33,732 |  | 35,440 |  | 36,070 |
2015 |  |  | 5,572 |  | 15,333 |  | 25,544 |  | 28,501 |  | 30,865 |  | 39,470 |  | 42,515 |  | 43,635 |
2016 |  |  |  | 1,348 |  | 4,637 |  | 14,141 |  | 18,502 |  | 21,333 |  | 23,136 |  | 23,207 |
2017 |  |  |  |  | 9,354 |  | 19,165 |  | 28,331 |  | 35,897 |  | 38,029 |  | 40,553 |
2018 |  |  |  |  |  | 2,171 |  | 7,327 |  | 9,874 |  | 14,786 |  | 19,193 |
2019 |  |  |  |  |  |  | 2,775 |  | 20,810 |  | 32,193 |  | 60,129 |
2020 |  |  |  |  |  |  |  | 17,712 |  | 50,038 |  | 63,216 |
2021 |  |  |  |  |  |  |  |  | 24,082 |  | 65,391 |
2022 |  |  |  |  |  |  |  |  |  | 7,825 |
Total | 388,336 |
All outstanding liabilities before 2013, net of reinsurance | 9,363 |
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ | 296,401 |
Insurance cyber
Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited)
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10
10.2% | 22.4% | 20.0% | 16.0% | 7.8% | 7.9% | 3.3% | 2.7% | 1.0% | 1.0%
Insurance Professional Lines The professional lines line of business provides directors’ and officers’ liability, errors and omissions liability, employment practices liability, fiduciary liability, crime, professional indemnity, 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 business is predominantly written on a claims-made basis. Typically, this line of business is anticipated to exhibit medium to long-tail claim reporting and payment patterns. For some professional lines in the insurance segment, the Company also relies on the evaluation of the open claim inventory in addition to the commonly employed actuarial methods when establishing reserves.
Insurance professional lines
| Incurred claims and allocated claim adjustment expenses, net of reinsurance | At December 31, 2022
| 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 | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 unaudited | 2020 unaudited | 2021 unaudited | 2022
2013 | $ | 314,230 |  | $ | 327,011 |  | $ | 326,531 |  | $ | 311,998 |  | $ | 305,212 |  | $ | 315,038 |  | $ | 294,284 |  | $ | 298,702 |  | $ | 295,366 |  | $ | 290,531 |  | $ | 23,664 |  | 8,148
2014 |  | 335,549 |  | 335,403 |  | 344,642 |  | 327,693 |  | 317,641 |  | 304,932 |  | 302,187 |  | 301,754 |  | 299,310 |  | 39,805 |  | 8,759
2015 |  |  | 307,130 |  | 307,995 |  | 314,890 |  | 301,324 |  | 287,955 |  | 270,904 |  | 269,672 |  | 281,916 |  | 24,939 |  | 9,211
2016 |  |  |  | 286,248 |  | 291,012 |  | 295,253 |  | 313,363 |  | 325,816 |  | 335,757 |  | 338,634 |  | 32,529 |  | 10,424
2017 |  |  |  |  | 335,706 |  | 338,031 |  | 371,629 |  | 371,589 |  | 388,973 |  | 389,053 |  | 72,532 |  | 12,380
2018 |  |  |  |  |  | 322,911 |  | 338,625 |  | 387,583 |  | 417,600 |  | 445,652 |  | 93,119 |  | 14,996
2019 |  |  |  |  |  |  | 342,656 |  | 358,459 |  | 373,074 |  | 408,585 |  | 121,148 |  | 14,335
2020 |  |  |  |  |  |  |  | 319,015 |  | 317,999 |  | 299,008 |  | 166,308 |  | 9,128
2021 |  |  |  |  |  |  |  |  | 374,828 |  | 366,258 |  | 305,139 |  | 7,766
2022 |  |  |  |  |  |  |  |  |  | 456,192 |  | 436,877 |  | 6,263
|  |  |  |  |  |  |  |  | Total | $ | 3,575,139 |  |  |
Insurance professional lines
| Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
| For the years ended December 31,
Accident year | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 unaudited | 2020 unaudited | 2021 unaudited | 2022
2013 | $ | 15,377 |  | $ | 61,522 |  | $ | 108,641 |  | $ | 151,750 |  | $ | 185,538 |  | $ | 212,579 |  | $ | 229,734 |  | $ | 241,651 |  | $ | 255,952 |  | $ | 257,104 |
2014 |  | 20,125 |  | 56,706 |  | 103,662 |  | 158,890 |  | 188,401 |  | 204,705 |  | 214,481 |  | 236,458 |  | 242,244 |
2015 |  |  | 14,049 |  | 51,053 |  | 110,009 |  | 138,047 |  | 169,213 |  | 198,709 |  | 211,058 |  | 222,361 |
2016 |  |  |  | 14,319 |  | 65,614 |  | 130,415 |  | 170,747 |  | 208,400 |  | 232,648 |  | 273,693 |
2017 |  |  |  |  | 11,370 |  | 51,064 |  | 107,837 |  | 165,575 |  | 196,308 |  | 266,468 |
2018 |  |  |  |  |  | 18,191 |  | 74,216 |  | 141,868 |  | 202,837 |  | 262,939 |
2019 |  |  |  |  |  |  | 24,826 |  | 75,955 |  | 131,776 |  | 203,957 |
2020 |  |  |  |  |  |  |  | 8,631 |  | 43,796 |  | 97,171 |
2021 |  |  |  |  |  |  |  |  | 9,697 |  | 38,372 |
2022 |  |  |  |  |  |  |  |  |  | 10,715 |
Total | 1,875,024 |
All outstanding liabilities before 2013, net of reinsurance | 93,016 |
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ | 1,793,131 |
Insurance professional lines
Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited)
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10
4.2% | 12.4% | 16.7% | 14.5% | 10.9% | 10.1% | 6.4% | 5.1% | 3.4% | 0.4%
Insurance Credit and Political Risk The credit and political risk line of business 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 and corporate 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 and are generally medium-tailed. 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, 2022
| 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 | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 unaudited | 2020 unaudited | 2021 unaudited | 2022
2013 | $ | 26,439 |  | $ | 25,684 |  | $ | 9,759 |  | $ | 9,880 |  | $ | 14,942 |  | $ | 14,067 |  | $ | 12,377 |  | $ | 12,739 |  | $ | 12,614 |  | $ | 12,151 |  | $ | — |  | 2
2014 |  | 38,825 |  | 70,712 |  | 67,109 |  | 68,323 |  | 69,589 |  | 71,274 |  | 70,748 |  | 69,112 |  | 69,677 |  | — |  | 6
2015 |  |  | 30,329 |  | 30,368 |  | 27,524 |  | 26,012 |  | 25,930 |  | 24,851 |  | 24,189 |  | 23,309 |  | — |  | 2
2016 |  |  |  | 44,175 |  | 45,485 |  | 42,995 |  | 43,566 |  | 27,352 |  | 26,371 |  | 25,291 |  | — |  | 1
2017 |  |  |  |  | 47,934 |  | 32,612 |  | 27,007 |  | 19,234 |  | 16,952 |  | 11,993 |  | 4,283 |  | 3
2018 |  |  |  |  |  | 42,588 |  | 35,296 |  | 34,240 |  | 26,231 |  | 22,577 |  | 9,191 |  | 2
2019 |  |  |  |  |  |  | 50,079 |  | 77,987 |  | 72,450 |  | 70,888 |  | 7,985 |  | 20
2020 |  |  |  |  |  |  |  | 59,758 |  | 68,347 |  | 59,519 |  | 25,535 |  | 39
2021 |  |  |  |  |  |  |  |  | 42,229 |  | 36,943 |  | 30,912 |  | 17
2022 |  |  |  |  |  |  |  |  |  | 45,231 |  | 40,828 |  | 13
|  |  |  |  |  |  |  |  | Total | $ | 377,579 |  |  |
Insurance credit and political risk
| Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
| For the years ended December 31,
Accident year | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 unaudited | 2020 unaudited | 2021 unaudited | 2022
2013 | $ | 745 |  | $ | 2,235 |  | $ | 3,726 |  | $ | 5,216 |  | $ | 11,769 |  | $ | 13,828 |  | $ | 13,828 |  | $ | 13,828 |  | $ | 12,151 |  | $ | 12,151 |
2014 |  | 1,924 |  | 39,951 |  | 61,108 |  | 57,857 |  | 57,857 |  | 64,050 |  | 70,223 |  | 70,223 |  | 69,677 |
2015 |  |  | — |  | 23,309 |  | 23,309 |  | 23,309 |  | 23,309 |  | 23,309 |  | 23,309 |  | 23,309 |
2016 |  |  |  | — |  | 25,291 |  | 25,291 |  | 25,291 |  | 25,291 |  | 25,291 |  | 25,291 |
2017 |  |  |  |  | 388 |  | 3,916 |  | 9,008 |  | 11,427 |  | 10,640 |  | 10,100 |
2018 |  |  |  |  |  | 5,215 |  | 13,128 |  | 15,117 |  | 11,314 |  | 19,396 |
2019 |  |  |  |  |  |  | 15,684 |  | 46,055 |  | 53,331 |  | 56,531 |
2020 |  |  |  |  |  |  |  | 9,618 |  | 89,146 |  | 56,769 |
2021 |  |  |  |  |  |  |  |  | 2,769 |  | (382) |
2022 |  |  |  |  |  |  |  |  |  | 2,797 |
Total | 275,639 |
All outstanding liabilities before 2013, net of reinsurance | 607 |
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ | 102,547 |
Insurance credit and political risk
Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited)
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10
8.7% | 55.5% | 6.2% | 2.2% | 13.9% | 4.3% | 2.2% | —% | (7.3%) | —%
Insurance Liability The liability line of business 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. Target industry sectors include construction, manufacturing, transportation and trucking and other services. Typically, this line of business is anticipated to exhibit long-tail claim reporting and payment patterns.
Insurance liability
| Incurred claims and allocated claim adjustment expenses, net of reinsurance | At December 31, 2022
| 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 | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 unaudited | 2020 unaudited | 2021 unaudited | 2022
2013 | $ | 93,230 |  | $ | 95,304 |  | $ | 95,170 |  | $ | 88,237 |  | $ | 93,677 |  | $ | 95,978 |  | $ | 91,938 |  | $ | 89,897 |  | $ | 94,196 |  | $ | 97,047 |  | $ | 12,187 |  | 3,737
2014 |  | 107,115 |  | 124,264 |  | 129,725 |  | 130,659 |  | 132,006 |  | 131,461 |  | 132,551 |  | 132,029 |  | 132,659 |  | 12,691 |  | 5,531
2015 |  |  | 128,435 |  | 127,236 |  | 137,385 |  | 164,915 |  | 182,612 |  | 187,927 |  | 186,853 |  | 188,577 |  | 22,972 |  | 6,574
2016 |  |  |  | 124,307 |  | 130,127 |  | 128,782 |  | 127,366 |  | 120,116 |  | 120,101 |  | 125,644 |  | 21,537 |  | 7,417
2017 |  |  |  |  | 166,717 |  | 165,415 |  | 184,847 |  | 200,470 |  | 204,612 |  | 215,101 |  | 21,746 |  | 8,629
2018 |  |  |  |  |  | 166,973 |  | 167,808 |  | 190,809 |  | 204,879 |  | 216,530 |  | 29,705 |  | 8,473
2019 |  |  |  |  |  |  | 190,645 |  | 191,683 |  | 221,266 |  | 236,959 |  | 43,102 |  | 7,936
2020 |  |  |  |  |  |  |  | 223,579 |  | 223,996 |  | 230,421 |  | 113,650 |  | 5,848
2021 |  |  |  |  |  |  |  |  | 231,189 |  | 244,972 |  | 150,924 |  | 5,965
2022 |  |  |  |  |  |  |  |  |  | 322,048 |  | 282,198 |  | 4,657
|  |  |  |  |  |  |  |  | Total | $ | 2,009,958 |  |  |
Insurance liability
| Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
| For the years ended December 31,
Accident year | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 unaudited | 2020 unaudited | 2021 unaudited | 2022
2013 | $ | 2,356 |  | $ | 23,276 |  | $ | 33,315 |  | $ | 42,046 |  | $ | 60,000 |  | $ | 66,959 |  | $ | 71,978 |  | $ | 73,309 |  | $ | 78,018 |  | $ | 82,483 |
2014 |  | 1,409 |  | 18,623 |  | 49,818 |  | 71,582 |  | 84,362 |  | 93,562 |  | 103,033 |  | 106,197 |  | 113,142 |
2015 |  |  | 5,437 |  | 22,303 |  | 39,522 |  | 92,535 |  | 120,061 |  | 140,732 |  | 150,562 |  | 158,924 |
2016 |  |  |  | 6,308 |  | 23,237 |  | 36,336 |  | 56,367 |  | 66,237 |  | 79,464 |  | 95,688 |
2017 |  |  |  |  | 5,395 |  | 29,335 |  | 58,801 |  | 115,213 |  | 142,927 |  | 168,012 |
2018 |  |  |  |  |  | 9,321 |  | 34,803 |  | 72,091 |  | 118,945 |  | 158,358 |
2019 |  |  |  |  |  |  | 7,791 |  | 39,746 |  | 83,533 |  | 138,832 |
2020 |  |  |  |  |  |  |  | 8,138 |  | 25,129 |  | 75,820 |
2021 |  |  |  |  |  |  |  |  | 13,388 |  | 51,815 |
2022 |  |  |  |  |  |  |  |  |  | 13,199 |
Total | 1,056,273 |
All outstanding liabilities before 2013, net of reinsurance | 50,544 |
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ | 1,004,229 |
Insurance liability
Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited)
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10
3.5% | 12.9% | 15.6% | 20.1% | 13.6% | 9.5% | 7.6% | 2.7% | 5.1% | 4.6%
Reinsurance Segment 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 via quarterly bordereaux 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 reporting of cumulative claims frequency for the lines of business within the reinsurance segment is deemed to be impracticable as the information necessary to provide cumulative claims frequency for these reserve classes is not available to the Company. Reinsurance Accident and Health The accident and health line of business includes personal accident, specialty health, accidental death, travel, life and disability reinsurance products which are offered on a proportional and catastrophic or per life excess of loss basis. In general, reporting and payment patterns are relatively short-tailed although they can be volatile due to the incidence of catastrophe events.
Reinsurance accident and health |  |
| Incurred claims and allocated claim adjustment expenses, net of reinsurance | At December 31, 2022 |
| For the years ended December 31, | Total of incurred-but-not-reported liabilities plus expected development on reported claims |
Accident Year | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 unaudited | 2020 unaudited | 2021 unaudited | 2022 |
2013 | $ | 108,977 |  | $ | 113,631 |  | $ | 113,009 |  | $ | 111,623 |  | $ | 111,155 |  | $ | 111,162 |  | $ | 111,162 |  | $ | 111,198 |  | $ | 111,277 |  | $ | 111,294 |  | $ | 757 |  |
2014 |  | 101,383 |  | 102,354 |  | 89,238 |  | 86,765 |  | 86,772 |  | 86,774 |  | 87,734 |  | 88,021 |  | 87,906 |  | 1,106 |  |
2015 |  |  | 93,792 |  | 100,434 |  | 93,964 |  | 93,722 |  | 93,007 |  | 93,341 |  | 92,350 |  | 92,313 |  | (1,876) |  |
2016 |  |  |  | 170,644 |  | 191,188 |  | 188,320 |  | 189,929 |  | 189,403 |  | 190,426 |  | 190,356 |  | (613) |  |
2017 |  |  |  |  | 183,817 |  | 189,430 |  | 183,286 |  | 182,097 |  | 183,120 |  | 183,077 |  | 1,528 |  |
2018 |  |  |  |  |  | 193,667 |  | 200,269 |  | 198,105 |  | 200,854 |  | 200,190 |  | 4,693 |  |
2019 |  |  |  |  |  |  | 217,320 |  | 211,896 |  | 207,347 |  | 204,951 |  | 5,896 |  |
2020 |  |  |  |  |  |  |  | 226,549 |  | 220,334 |  | 213,230 |  | (7,052) |  |
2021 |  |  |  |  |  |  |  |  | 231,754 |  | 226,659 |  | 26,816 |  |
2022 |  |  |  |  |  |  |  |  |  | 267,359 |  | 146,819 |  |
|  |  |  |  |  |  |  |  | Total | $ | 1,777,335 |  |  |
Reinsurance accident and health
| Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
| For the years ended December 31,
Accident Year | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 unaudited | 2020 unaudited | 2021 unaudited | 2022
2013 | $ | 52,853 |  | $ | 103,977 |  | $ | 108,306 |  | $ | 110,927 |  | $ | 111,011 |  | $ | 111,018 |  | $ | 111,018 |  | $ | 111,090 |  | $ | 110,328 |  | $ | 110,537 |
2014 |  | 36,558 |  | 79,933 |  | 85,870 |  | 86,266 |  | 86,466 |  | 86,553 |  | 87,239 |  | 86,319 |  | 86,702 |
2015 |  |  | 23,404 |  | 77,264 |  | 88,667 |  | 91,872 |  | 91,981 |  | 92,441 |  | 93,864 |  | 93,677 |
2016 |  |  |  | 50,036 |  | 149,883 |  | 180,978 |  | 187,142 |  | 189,128 |  | 188,726 |  | 189,679 |
2017 |  |  |  |  | 79,209 |  | 157,032 |  | 171,864 |  | 178,605 |  | 179,117 |  | 179,772 |
2018 |  |  |  |  |  | 72,863 |  | 165,053 |  | 191,605 |  | 191,161 |  | 194,276 |
2019 |  |  |  |  |  |  | 67,728 |  | 169,257 |  | 195,575 |  | 196,306 |
2020 |  |  |  |  |  |  |  | 81,657 |  | 171,632 |  | 210,006 |
2021 |  |  |  |  |  |  |  |  | 68,381 |  | 179,025 |
2022 |  |  |  |  |  |  |  |  |  | 101,308 |
Total | 1,541,288 |
All outstanding liabilities before 2013, net of reinsurance | 47 |
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ | 236,094 |
Reinsurance accident and health
Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited)
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10
36.0% | 48.3% | 11.5% | 1.9% | 0.6% | 0.2% | 0.7% | (0.4%) | (0.2%) | 0.2%
Reinsurance Agriculture 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. In general, reporting and payment patterns are relatively short-tailed although they can be volatile due to the incidence of extreme weather events and in some territories take longer to settle due to government involvement in the loss adjustment process.
Reinsurance agriculture
| Incurred claims and allocated claim adjustment expenses, net of reinsurance | At December 31, 2022
| For the years ended December 31, | Total of incurred-but-not-reported liabilities plus expected development on reported claims
Accident Year | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 unaudited | 2020 unaudited | 2021 unaudited | 2022
2013 | $ | 107,068 |  | $ | 117,467 |  | $ | 121,107 |  | $ | 120,795 |  | $ | 120,807 |  | $ | 120,799 |  | $ | 120,919 |  | $ | 121,805 |  | $ | 120,853 |  | $ | 121,752 |  | $ | (330) |
2014 |  | 183,242 |  | 164,334 |  | 162,814 |  | 162,382 |  | 162,308 |  | 162,321 |  | 162,239 |  | 162,061 |  | 162,756 |  | 437 |
2015 |  |  | 103,172 |  | 95,592 |  | 95,334 |  | 95,320 |  | 95,326 |  | 95,504 |  | 95,490 |  | 95,621 |  | (33) |
2016 |  |  |  | 123,798 |  | 117,507 |  | 110,630 |  | 109,218 |  | 109,457 |  | 108,647 |  | 108,599 |  | (227) |
2017 |  |  |  |  | 151,649 |  | 144,281 |  | 138,357 |  | 139,427 |  | 138,898 |  | 137,431 |  | (238) |
2018 |  |  |  |  |  | 140,936 |  | 147,271 |  | 140,806 |  | 140,538 |  | 139,907 |  | 1,412 |
2019 |  |  |  |  |  |  | 184,177 |  | 185,218 |  | 187,685 |  | 183,289 |  | 1,679 |
2020 |  |  |  |  |  |  |  | 62,593 |  | 62,738 |  | 63,778 |  | 3,775 |
2021 |  |  |  |  |  |  |  |  | 69,759 |  | 61,225 |  | 9,475 |
2022 |  |  |  |  |  |  |  |  |  | 100,872 |  | 77,550 |
|  |  |  |  |  |  |  |  | Total | $ | 1,175,230 |  |
Reinsurance agriculture
| Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
| For the years ended December 31,
Accident Year | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 unaudited | 2020 unaudited | 2021 unaudited | 2022
2013 | $ | 3,609 |  | $ | 78,089 |  | $ | 118,317 |  | $ | 119,549 |  | $ | 120,144 |  | $ | 120,138 |  | $ | 120,204 |  | $ | 119,990 |  | $ | 120,258 |  | $ | 121,997 |
2014 |  | 15,615 |  | 133,132 |  | 162,343 |  | 161,569 |  | 161,492 |  | 162,005 |  | 160,509 |  | 161,161 |  | 162,061 |
2015 |  |  | 1,716 |  | 65,858 |  | 92,967 |  | 94,523 |  | 94,860 |  | 95,455 |  | 95,444 |  | 95,599 |
2016 |  |  |  | 9,489 |  | 62,155 |  | 107,972 |  | 109,511 |  | 108,991 |  | 108,752 |  | 108,792 |
2017 |  |  |  |  | 7,444 |  | 124,479 |  | 137,421 |  | 138,555 |  | 137,396 |  | 137,343 |
2018 |  |  |  |  |  | 5,115 |  | 127,514 |  | 135,594 |  | 141,688 |  | 138,316 |
2019 |  |  |  |  |  |  | 28,854 |  | 154,480 |  | 174,173 |  | 178,181 |
2020 |  |  |  |  |  |  |  | 17,454 |  | 47,316 |  | 54,180 |
2021 |  |  |  |  |  |  |  |  | 2,953 |  | 32,781 |
2022 |  |  |  |  |  |  |  |  |  | 15,345 |
Total | 1,044,595 |
All outstanding liabilities before 2013, net of reinsurance | 734 |
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ | 131,369 |
Reinsurance agriculture
Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited)
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10
9.5% | 65.1% | 19.8% | 1.6% | (0.5%) | 0.1% | (0.2%) | 0.1% | 0.4% | 1.4%
Reinsurance Marine and Aviation The marine line of business includes specialty marine classes such as cargo, hull, pleasure craft, marine liability, inland marine and offshore energy. The principal perils covered by policies in this portfolio include physical loss, damage and/or liability arising from natural perils of the seas or land, man-made events including fire and explosion, stranding/sinking/salvage, pollution, shipowners and maritime employers liability. This business is written on a non-proportional and proportional basis. The aviation line of business provides cover for airline, aerospace and general aviation exposures. This business is written on a proportional and non-proportional basis. The Company exited Aviation business effective January 1, 2023. Losses arising from marine and aviation lines of business are generally reported quickly with the exception of marine and aviation liability claims which tend to exhibit longer reporting and payment patterns as claims involve passengers and third parties.
Reinsurance marine and aviation
| Incurred claims and allocated claim adjustment expenses, net of reinsurance | At December 31, 2022
| For the years ended December 31, | Total of incurred-but-not-reported liabilities plus expected development on reported claims
Accident Year | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 unaudited | 2020 unaudited | 2021 unaudited | 2022
2013 | $ | 11,961 |  | $ | 12,441 |  | $ | 6,676 |  | $ | 6,487 |  | $ | 6,560 |  | $ | 6,523 |  | $ | 6,226 |  | $ | 6,558 |  | $ | 6,575 |  | $ | 6,599 |  | $ | (565) |
2014 |  | 10,183 |  | 9,142 |  | 7,990 |  | 7,182 |  | 9,166 |  | 8,514 |  | 8,764 |  | 9,003 |  | 9,505 |  | 423 |
2015 |  |  | 10,363 |  | 9,217 |  | 10,806 |  | 14,979 |  | 12,620 |  | 12,251 |  | 12,016 |  | 11,968 |  | 418 |
2016 |  |  |  | 32,280 |  | 35,330 |  | 35,605 |  | 36,996 |  | 35,511 |  | 35,834 |  | 36,238 |  | 625 |
2017 |  |  |  |  | 55,072 |  | 42,760 |  | 41,360 |  | 46,608 |  | 43,230 |  | 40,887 |  | 844 |
2018 |  |  |  |  |  | 18,830 |  | 28,072 |  | 27,609 |  | 44,042 |  | 47,522 |  | 443 |
2019 |  |  |  |  |  |  | 69,056 |  | 81,480 |  | 79,146 |  | 80,976 |  | 5,760 |
2020 |  |  |  |  |  |  |  | 40,548 |  | 42,071 |  | 38,273 |  | 4,380 |
2021 |  |  |  |  |  |  |  |  | 43,886 |  | 40,968 |  | 15,886 |
2022 |  |  |  |  |  |  |  |  |  | 68,898 |  | 54,268 |
|  |  |  |  |  |  |  |  | Total | $ | 381,834 |  |
Reinsurance marine and aviation
| Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
| For the years ended December 31,
Accident Year | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 unaudited | 2020 unaudited | 2021 unaudited | 2022
2013 | $ | 465 |  | $ | 2,502 |  | $ | 3,685 |  | $ | 4,180 |  | $ | 5,416 |  | $ | 5,845 |  | $ | 6,029 |  | $ | 6,574 |  | $ | 6,593 |  | $ | 6,698 |
2014 |  | 1,117 |  | 2,301 |  | 4,377 |  | 5,244 |  | 6,308 |  | 6,486 |  | 6,990 |  | 7,357 |  | 7,549 |
2015 |  |  | 416 |  | 2,655 |  | 6,430 |  | 8,641 |  | 10,198 |  | 10,994 |  | 10,820 |  | 10,902 |
2016 |  |  |  | 2,695 |  | 19,119 |  | 26,202 |  | 30,133 |  | 32,878 |  | 33,927 |  | 34,519 |
2017 |  |  |  |  | 2,746 |  | 23,508 |  | 28,826 |  | 33,764 |  | 36,809 |  | 36,920 |
2018 |  |  |  |  |  | 1,779 |  | 10,831 |  | 24,246 |  | 30,685 |  | 34,293 |
2019 |  |  |  |  |  |  | 10,715 |  | 27,093 |  | 34,278 |  | 52,688 |
2020 |  |  |  |  |  |  |  | 4,017 |  | 16,729 |  | 24,112 |
2021 |  |  |  |  |  |  |  |  | 5,491 |  | 12,381 |
2022 |  |  |  |  |  |  |  |  |  | 7,775 |
Total | 227,837 |
All outstanding liabilities before 2013, net of reinsurance | 2,076 |
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ | 156,073 |
Reinsurance marine and aviation
Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited)
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10
8.9% | 27.5% | 20.0% | 13.5% | 10.9% | 3.7% | 2.1% | 4.3% | 1.2% | 1.6%
Reinsurance Professional Lines The professional lines line of business provides protection for directors' and officers' liability, employment practices liability, medical malpractice, professional indemnity, environmental liability, cyber, 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.
Reinsurance professional lines
| Incurred claims and allocated claim adjustment expenses, net of reinsurance | At December 31, 2022
| For the years ended December 31, | Total of incurred-but-not-reported liabilities plus expected development on reported claims
Accident year | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 unaudited | 2020 unaudited | 2021 unaudited | 2022
2013 | $ | 208,838 |  | $ | 213,826 |  | $ | 214,632 |  | $ | 212,750 |  | $ | 212,039 |  | $ | 204,246 |  | $ | 180,269 |  | $ | 168,466 |  | $ | 164,383 |  | $ | 168,014 |  | $ | 5,422 |
2014 |  | 218,770 |  | 218,664 |  | 218,600 |  | 218,251 |  | 232,493 |  | 228,865 |  | 227,327 |  | 225,276 |  | 233,317 |  | 5,973 |
2015 |  |  | 211,463 |  | 211,312 |  | 213,463 |  | 224,028 |  | 230,650 |  | 227,545 |  | 234,298 |  | 240,255 |  | 12,860 |
2016 |  |  |  | 194,725 |  | 195,775 |  | 199,369 |  | 226,932 |  | 254,459 |  | 254,339 |  | 266,249 |  | 28,900 |
2017 |  |  |  |  | 154,457 |  | 154,910 |  | 161,029 |  | 176,930 |  | 186,713 |  | 209,111 |  | 31,256 |
2018 |  |  |  |  |  | 145,212 |  | 147,533 |  | 154,366 |  | 164,966 |  | 172,749 |  | 37,223 |
2019 |  |  |  |  |  |  | 136,846 |  | 136,277 |  | 140,144 |  | 144,336 |  | 48,864 |
2020 |  |  |  |  |  |  |  | 139,748 |  | 140,003 |  | 134,318 |  | 82,908 |
2021 |  |  |  |  |  |  |  |  | 147,961 |  | 139,493 |  | 112,421 |
2022 |  |  |  |  |  |  |  |  |  | 168,473 |  | 154,252 |
|  |  |  |  |  |  |  |  | Total | $ | 1,876,315 |  |
Reinsurance professional lines
| Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
| For the years ended December 31,
Accident year | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 unaudited | 2020 unaudited | 2021 unaudited | 2022
2013 | $ | 1,059 |  | $ | 12,023 |  | $ | 30,381 |  | $ | 64,795 |  | $ | 81,423 |  | $ | 104,549 |  | $ | 122,775 |  | $ | 128,090 |  | $ | 132,401 |  | $ | 138,470 |
2014 |  | 2,019 |  | 13,047 |  | 48,700 |  | 74,330 |  | 108,767 |  | 146,520 |  | 157,828 |  | 177,465 |  | 189,224 |
2015 |  |  | 3,134 |  | 13,502 |  | 41,493 |  | 79,172 |  | 111,527 |  | 131,056 |  | 151,873 |  | 169,963 |
2016 |  |  |  | 1,758 |  | 20,414 |  | 52,455 |  | 94,853 |  | 124,553 |  | 153,251 |  | 180,770 |
2017 |  |  |  |  | 2,812 |  | 14,785 |  | 39,764 |  | 62,498 |  | 88,494 |  | 115,904 |
2018 |  |  |  |  |  | 272 |  | 2,539 |  | 31,091 |  | 56,685 |  | 81,417 |
2019 |  |  |  |  |  |  | 365 |  | 13,549 |  | 33,395 |  | 52,849 |
2020 |  |  |  |  |  |  |  | 3,822 |  | 13,845 |  | 26,664 |
2021 |  |  |  |  |  |  |  |  | 4,337 |  | 11,343 |
2022 |  |  |  |  |  |  |  |  |  | 3,233 |
Total | 969,837 |
All outstanding liabilities before 2013, net of reinsurance | 92,109 |
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ | 998,587 |
Reinsurance professional lines
Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited)
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10
1.3% | 5.7% | 12.7% | 14.6% | 12.7% | 12.4% | 8.7% | 6.4% | 3.8% | 3.6%
Reinsurance Credit and Surety 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, 2022
| For the years ended December 31, | Total of incurred-but-not-reported liabilities plus expected development on reported claims
Accident year | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 unaudited | 2020 unaudited | 2021 unaudited | 2022
2013 | $ | 162,254 |  | $ | 149,561 |  | $ | 140,520 |  | $ | 136,726 |  | $ | 132,814 |  | $ | 121,824 |  | $ | 122,035 |  | $ | 124,850 |  | $ | 123,641 |  | $ | 124,760 |  | $ | 1,647 |
2014 |  | 132,954 |  | 132,589 |  | 139,686 |  | 136,104 |  | 125,086 |  | 123,854 |  | 120,171 |  | 118,853 |  | 119,216 |  | 133 |
2015 |  |  | 157,589 |  | 161,881 |  | 156,701 |  | 152,946 |  | 134,568 |  | 135,496 |  | 136,667 |  | 131,093 |  | 1,530 |
2016 |  |  |  | 139,437 |  | 138,424 |  | 146,132 |  | 120,945 |  | 113,526 |  | 111,192 |  | 108,856 |  | 1,206 |
2017 |  |  |  |  | 136,280 |  | 129,727 |  | 123,877 |  | 115,202 |  | 112,679 |  | 112,383 |  | 2,461 |
2018 |  |  |  |  |  | 109,771 |  | 117,215 |  | 111,340 |  | 108,388 |  | 103,324 |  | 9,933 |
2019 |  |  |  |  |  |  | 73,090 |  | 66,316 |  | 66,175 |  | 63,943 |  | 9,256 |
2020 |  |  |  |  |  |  |  | 76,516 |  | 83,053 |  | 68,410 |  | 16,290 |
2021 |  |  |  |  |  |  |  |  | 51,721 |  | 43,485 |  | 21,500 |
2022 |  |  |  |  |  |  |  |  |  | 63,125 |  | 50,105 |
|  |  |  |  |  |  |  |  | Total | $ | 938,595 |  |
Reinsurance credit and surety
| Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
| For the years ended December 31,
Accident year | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 unaudited | 2020 unaudited | 2021 unaudited | 2022
2013 | $ | 32,161 |  | $ | 75,085 |  | $ | 89,348 |  | $ | 95,770 |  | $ | 103,368 |  | $ | 105,102 |  | $ | 110,064 |  | $ | 112,241 |  | $ | 110,508 |  | $ | 111,765 |
2014 |  | 35,281 |  | 59,703 |  | 83,972 |  | 92,889 |  | 100,457 |  | 104,858 |  | 105,238 |  | 105,054 |  | 106,252 |
2015 |  |  | 32,782 |  | 79,855 |  | 97,094 |  | 113,683 |  | 115,605 |  | 119,204 |  | 120,060 |  | 118,811 |
2016 |  |  |  | 41,790 |  | 71,774 |  | 90,226 |  | 99,722 |  | 100,768 |  | 99,276 |  | 99,003 |
2017 |  |  |  |  | 37,115 |  | 72,267 |  | 88,330 |  | 99,844 |  | 97,952 |  | 100,868 |
2018 |  |  |  |  |  | 38,682 |  | 66,694 |  | 70,623 |  | 82,182 |  | 83,907 |
2019 |  |  |  |  |  |  | 19,224 |  | 30,187 |  | 43,443 |  | 45,510 |
2020 |  |  |  |  |  |  |  | 25,293 |  | 33,823 |  | 39,253 |
2021 |  |  |  |  |  |  |  |  | 4,466 |  | 9,045 |
2022 |  |  |  |  |  |  |  |  |  | 6,865 |
Total | 721,279 |
All outstanding liabilities before 2013, net of reinsurance | 14,199 |
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ | 231,515 |
Reinsurance credit and surety
Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited)
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10
27.8% | 24.1% | 13.6% | 8.4% | 2.5% | 1.8% | 1.2% | 0.2% | (0.2%) | 1.0%
Reinsurance Motor The motor line of business 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. 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 business generally has a significantly shorter reported and payment pattern, relative to the motor non-proportional business. 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 which allow reinsurers to settle claims arising under PPOs with a lump sum payment, 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, 2022
| For the years ended December 31, | Total of incurred-but-not-reported liabilities plus expected development on reported claims
Accident year | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 unaudited | 2020 unaudited | 2021 unaudited | 2022
2013 | $ | 154,629 |  | $ | 148,570 |  | $ | 137,357 |  | $ | 128,421 |  | $ | 125,052 |  | $ | 122,196 |  | $ | 113,999 |  | $ | 111,011 |  | $ | 107,275 |  | $ | 107,772 |  | $ | 5,350 |
2014 |  | 174,534 |  | 171,207 |  | 166,277 |  | 163,297 |  | 159,020 |  | 155,735 |  | 152,566 |  | 152,080 |  | 152,730 |  | 2,906 |
2015 |  |  | 214,064 |  | 204,962 |  | 208,365 |  | 210,117 |  | 199,861 |  | 198,653 |  | 196,003 |  | 196,266 |  | 6,881 |
2016 |  |  |  | 236,330 |  | 246,951 |  | 248,315 |  | 238,949 |  | 230,691 |  | 228,144 |  | 231,759 |  | 3,531 |
2017 |  |  |  |  | 347,985 |  | 350,773 |  | 340,571 |  | 341,108 |  | 342,097 |  | 337,372 |  | 12,195 |
2018 |  |  |  |  |  | 343,073 |  | 335,555 |  | 345,746 |  | 342,114 |  | 330,259 |  | 12,092 |
2019 |  |  |  |  |  |  | 328,062 |  | 325,918 |  | 325,792 |  | 317,512 |  | 23,908 |
2020 |  |  |  |  |  |  |  | 205,885 |  | 207,767 |  | 205,512 |  | 38,657 |
2021 |  |  |  |  |  |  |  |  | 173,077 |  | 173,409 |  | 36,756 |
2022 |  |  |  |  |  |  |  |  |  | 154,531 |  | 69,678 |
|  |  |  |  |  |  |  |  | Total | $ | 2,207,122 |  |
Reinsurance motor
| Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
| For the years ended December 31,
Accident year | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 unaudited | 2020 unaudited | 2021 unaudited | 2022
2013 | $ | 32,749 |  | $ | 49,088 |  | $ | 61,273 |  | $ | 70,288 |  | $ | 75,368 |  | $ | 80,462 |  | $ | 83,161 |  | $ | 74,002 |  | $ | 87,158 |  | $ | 88,695 |
2014 |  | 41,942 |  | 68,998 |  | 86,680 |  | 93,883 |  | 103,115 |  | 111,744 |  | 106,510 |  | 126,822 |  | 129,313 |
2015 |  |  | 56,617 |  | 88,152 |  | 106,450 |  | 122,679 |  | 137,554 |  | 137,597 |  | 159,792 |  | 164,738 |
2016 |  |  |  | 59,225 |  | 98,649 |  | 120,556 |  | 137,362 |  | 149,042 |  | 172,139 |  | 179,208 |
2017 |  |  |  |  | 70,213 |  | 126,902 |  | 155,191 |  | 188,658 |  | 209,638 |  | 231,594 |
2018 |  |  |  |  |  | 82,020 |  | 134,503 |  | 196,187 |  | 204,301 |  | 227,538 |
2019 |  |  |  |  |  |  | 89,709 |  | 180,671 |  | 195,770 |  | 216,677 |
2020 |  |  |  |  |  |  |  | 43,190 |  | 92,231 |  | 110,939 |
2021 |  |  |  |  |  |  |  |  | 41,457 |  | 73,915 |
2022 |  |  |  |  |  |  |  |  |  | 34,696 |
Total | 1,457,313 |
All outstanding liabilities before 2013, net of reinsurance | 252,523 |
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ | 1,002,332 |
Reinsurance motor
Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited)
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10
25.4% | 18.9% | 10.3% | 6.8% | 6.1% | 5.4% | 3.4% | 2.4% | 6.9% | 1.4%
Reinsurance Liability The liability line of business 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. Typically, this line of business is anticipated to exhibit long-tail claim reporting and payment patterns.
Reinsurance liability
| Incurred claims and allocated claim adjustment expenses, net of reinsurance | At December 31, 2022
| For the years ended December 31, | Total of incurred-but-not-reported liabilities plus expected development on reported claims
Accident year | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 unaudited | 2020 unaudited | 2021 unaudited | 2022
2013 | $ | 171,362 |  | $ | 175,116 |  | $ | 181,007 |  | $ | 183,051 |  | $ | 182,782 |  | $ | 176,171 |  | $ | 156,816 |  | $ | 155,720 |  | $ | 154,142 |  | $ | 157,106 |  | $ | 9,769 |
2014 |  | 198,852 |  | 201,764 |  | 203,470 |  | 199,379 |  | 198,098 |  | 195,959 |  | 186,489 |  | 182,375 |  | 188,328 |  | 16,201 |
2015 |  |  | 213,612 |  | 213,954 |  | 214,899 |  | 214,736 |  | 212,574 |  | 212,908 |  | 202,698 |  | 205,594 |  | 19,016 |
2016 |  |  |  | 239,071 |  | 244,275 |  | 249,096 |  | 252,359 |  | 262,011 |  | 265,953 |  | 273,312 |  | 33,727 |
2017 |  |  |  |  | 273,964 |  | 268,712 |  | 278,111 |  | 286,761 |  | 296,174 |  | 305,418 |  | 46,899 |
2018 |  |  |  |  |  | 262,831 |  | 267,501 |  | 272,753 |  | 285,643 |  | 305,168 |  | 61,173 |
2019 |  |  |  |  |  |  | 262,191 |  | 271,050 |  | 273,061 |  | 271,247 |  | 88,379 |
2020 |  |  |  |  |  |  |  | 282,871 |  | 283,457 |  | 277,697 |  | 146,037 |
2021 |  |  |  |  |  |  |  |  | 303,482 |  | 310,759 |  | 196,806 |
2022 |  |  |  |  |  |  |  |  |  | 346,385 |  | 298,804 |
|  |  |  |  |  |  |  |  | Total | $ | 2,641,014 |  |
Reinsurance liability
| Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
| For the years ended December 31,
Accident year | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 unaudited | 2020 unaudited | 2021 unaudited | 2022
2013 | $ | 5,966 |  | $ | 22,218 |  | $ | 52,304 |  | $ | 69,024 |  | $ | 88,217 |  | $ | 102,527 |  | $ | 113,053 |  | $ | 123,563 |  | $ | 127,966 |  | $ | 133,020 |
2014 |  | 7,072 |  | 28,641 |  | 48,362 |  | 69,985 |  | 89,217 |  | 109,681 |  | 129,370 |  | 136,624 |  | 147,798 |
2015 |  |  | 7,268 |  | 27,442 |  | 54,466 |  | 80,784 |  | 108,707 |  | 130,587 |  | 141,300 |  | 151,688 |
2016 |  |  |  | 11,858 |  | 37,601 |  | 69,254 |  | 111,403 |  | 142,420 |  | 166,054 |  | 188,883 |
2017 |  |  |  |  | 12,432 |  | 42,092 |  | 78,435 |  | 120,553 |  | 158,338 |  | 192,889 |
2018 |  |  |  |  |  | 19,354 |  | 49,875 |  | 85,126 |  | 127,737 |  | 166,117 |
2019 |  |  |  |  |  |  | 19,305 |  | 45,266 |  | 79,739 |  | 120,278 |
2020 |  |  |  |  |  |  |  | 16,939 |  | 49,073 |  | 82,357 |
2021 |  |  |  |  |  |  |  |  | 10,942 |  | 58,524 |
2022 |  |  |  |  |  |  |  |  |  | 18,061 |
Total | 1,259,615 |
All outstanding liabilities before 2013, net of reinsurance | 123,029 |
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ | 1,504,428 |
Reinsurance liability
Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited)
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10
4.8% | 10.8% | 12.8% | 13.3% | 12.1% | 10.1% | 7.7% | 5.2% | 4.4% | 3.2%
Reinsurance Run-off lines Run-off lines include catastrophe, property, and engineering lines of business. 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 Company exited this line of business in June 2022. The property line of business provides protection for property damage and related losses resulting from natural and man-made perils that are covered 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 Company exited this line of business in June 2022. 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. The Company exited this line of business in 2020. In general, reporting and payment patterns are relatively short-tailed although they can be volatile due to the incidence of catastrophe events. Although short-tail in nature, losses from engineering exposures tend to develop slower than the other reinsurance run-off lines of business.
Reinsurance run-off
| Incurred claims and allocated claim adjustment expenses, net of reinsurance | At December 31, 2022
| For the years ended December 31, | Total of incurred-but-not-reported liabilities plus expected development on reported claims
Accident year | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 unaudited | 2020 unaudited | 2021 unaudited | 2022
2013 | $ | 339,293 |  | $ | 308,714 |  | $ | 282,546 |  | $ | 265,575 |  | $ | 260,012 |  | $ | 259,488 |  | $ | 256,433 |  | $ | 254,589 |  | $ | 252,736 |  | $ | 251,472 |  | $ | 927 |
2014 |  | 241,052 |  | 245,246 |  | 235,489 |  | 226,620 |  | 223,003 |  | 222,835 |  | 218,807 |  | 218,620 |  | 217,746 |  | 1,354 |
2015 |  |  | 265,915 |  | 254,255 |  | 254,344 |  | 245,175 |  | 243,963 |  | 248,890 |  | 246,716 |  | 244,839 |  | 4,350 |
2016 |  |  |  | 284,047 |  | 284,044 |  | 280,767 |  | 275,463 |  | 278,910 |  | 279,338 |  | 279,384 |  | 5,861 |
2017 |  |  |  |  | 703,634 |  | 703,287 |  | 742,280 |  | 743,340 |  | 741,329 |  | 732,026 |  | 22,110 |
2018 |  |  |  |  |  | 523,856 |  | 617,378 |  | 632,623 |  | 618,695 |  | 604,626 |  | 14,356 |
2019 |  |  |  |  |  |  | 454,804 |  | 439,421 |  | 419,002 |  | 401,170 |  | 30,117 |
2020 |  |  |  |  |  |  |  | 517,487 |  | 548,722 |  | 542,837 |  | 60,793 |
2021 |  |  |  |  |  |  |  |  | 425,525 |  | 434,809 |  | 54,826 |
2022 |  |  |  |  |  |  |  |  |  | 263,372 |  | 139,192 |
|  |  |  |  |  |  |  |  | Total | $ | 3,972,281 |  |
Reinsurance run-off
| Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
| For the years ended December 31,
Accident year | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 unaudited | 2020 unaudited | 2021 unaudited | 2022
2013 | $ | 50,430 |  | $ | 137,729 |  | $ | 207,125 |  | $ | 232,338 |  | $ | 239,868 |  | $ | 240,785 |  | $ | 241,051 |  | $ | 240,341 |  | $ | 244,594 |  | $ | 245,659 |
2014 |  | 49,123 |  | 135,883 |  | 179,797 |  | 196,310 |  | 201,136 |  | 205,235 |  | 202,701 |  | 209,411 |  | 210,684 |
2015 |  |  | 46,120 |  | 118,635 |  | 177,080 |  | 201,981 |  | 212,210 |  | 216,642 |  | 230,483 |  | 232,113 |
2016 |  |  |  | 64,831 |  | 141,113 |  | 199,912 |  | 230,829 |  | 245,034 |  | 251,866 |  | 257,213 |
2017 |  |  |  |  | 163,361 |  | 419,474 |  | 532,087 |  | 590,316 |  | 614,420 |  | 649,936 |
2018 |  |  |  |  |  | 116,922 |  | 335,059 |  | 430,939 |  | 483,699 |  | 530,773 |
2019 |  |  |  |  |  |  | 54,866 |  | 220,795 |  | 281,860 |  | 318,273 |
2020 |  |  |  |  |  |  |  | 105,210 |  | 240,691 |  | 323,592 |
2021 |  |  |  |  |  |  |  |  | 87,885 |  | 233,487 |
2022 |  |  |  |  |  |  |  |  |  | 50,148 |
Total | 3,051,878 |
All outstanding liabilities before 2013, net of reinsurance | 38,217 |
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ | 958,620 |
Reinsurance run-off
Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited)
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10
19.9% | 33.6% | 19.3% | 9.2% | 4.3% | 2.3% | 1.6% | 1.2% | 1.2% | 0.4%
Reconciliation of Loss Development Tables to Consolidated Balance Sheet The following table reconciles the reserve for losses and loss expenses at December 31, 2022, included in the loss development tables to the reserve for losses and loss expenses reported in the consolidated balance sheet:
Reconciliation of the disclosure of incurred and paid claims development to the liability for unpaid claims and claim adjustment expenses
|  | At December 31, 2022
|  | Net outstanding liabilities |  | Reinsurance recoverable on unpaid claims |  | Gross outstanding liabilities
Insurance segment |  |  |  |  |  |
Property |  | $ | 624,924 |  |  | $ | 398,826 |  |  | $ | 1,023,750 |
Accident and health |  | 76,862 |  |  | 6,518 |  |  | 83,380 |
Marine and aviation |  | 605,168 |  |  | 278,976 |  |  | 884,144 |
Cyber |  | 296,401 |  |  | 393,436 |  |  | 689,837 |
Professional lines |  | 1,793,131 |  |  | 1,474,539 |  |  | 3,267,670 |
Credit and political risk |  | 102,547 |  |  | 34,391 |  |  | 136,938 |
Liability |  | 1,004,229 |  |  | 1,546,520 |  |  | 2,550,749 |
Total insurance segment |  | 4,503,262 |  |  | 4,133,206 |  |  | 8,636,468 |
Reinsurance segment |  |  |  |  |  |
Accident and health |  | 236,094 |  |  | 38,647 |  |  | 274,741 |
Agriculture |  | 131,369 |  |  | 10,018 |  |  | 141,387 |
Marine and aviation |  | 156,073 |  |  | 57,692 |  |  | 213,765 |
Professional lines |  | 998,587 |  |  | 303,849 |  |  | 1,302,436 |
Credit and surety |  | 231,515 |  |  | 79,309 |  |  | 310,824 |
Motor |  | 1,002,332 |  |  | 258,483 |  |  | 1,260,815 |
Liability |  | 1,504,428 |  |  | 527,513 |  |  | 2,031,941 |
Run-off lines |  | 958,620 |  |  | 422,455 |  |  | 1,381,075 |
Total reinsurance segment |  | 5,219,018 |  |  | 1,697,966 |  |  | 6,916,984 |
Total |  | $ | 9,722,280 |  |  | $ | 5,831,172 |  |  | 15,553,452 |
Unallocated claims adjustment expenses |  |  |  |  |  | 168,308 |
Foreign exchange and other(1) |  |  |  |  |  | 21,972 |
Ceded reserves related to retroactive transactions |  |  |  |  |  | (574,869) |
Total liability for unpaid claims and claims adjustment expense |  |  |  |  |  | $ | 15,168,863 |
(1) 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.

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- Definition The entire disclosure for liabilities related to future policy benefits and unpaid claims and claim adjustments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 40 -URI https://asc.fasb.org/subtopic&trid=2560295 + Details
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