Reserves for Losses and Loss Adjustment Expenses

3 Months Ended

Mar. 31, 2018

Reserves For Loss And Adjustment Expenses [Text Block]

Reserves for Losses and Loss Adjustment Expenses

The following table represents a reconciliation of beginning and ending consolidated loss and loss adjustment expenses (“LAE”) reserves for the three months ended March 31, 2018 and 2017 and the twelve months ended December 31, 2017:



	Three Months Ended March 31, 2018			Three Months Ended March 31, 2017			Twelve Months Ended December 31, 2017
	($ in millions)
Provision for losses and LAE at the start of the year	$	6,749.5		$	5,319.9		$	5,319.9
Less reinsurance recoverable	(1,515.2		)	(560.7		)	(560.7		)
Net loss and LAE at the start of the year	5,234.3			4,759.2			4,759.2

Net loss and LAE expenses (disposed)	—			—			(125.5		)

Provision for losses and LAE for claims incurred:
Current year	347.9			354.4			2,100.1
Prior years	(37.7		)	(26.2		)	(105.4		)
Total incurred	310.2			328.2			1,994.7
Losses and LAE payments for claims incurred:
Current year	(7.4		)	(14.8		)	(397.5		)
Prior years	(483.7		)	(383.6		)	(1,157.6		)
Total paid	(491.1		)	(398.4		)	(1,555.1		)

Foreign exchange losses/(gains)	14.7			41.1			161.0

Net losses and LAE reserves at period end	5,068.1			4,730.1			5,234.3
Plus reinsurance recoverable on unpaid losses at period end	1,611.3			635.8			1,515.2
Provision for losses and LAE at the end of the relevant period	$	6,679.4		$	5,365.9		$	6,749.5

For the three months ended March 31, 2018, there was a reduction of $37.7 million in the Company’s estimate of the ultimate claims to be paid in respect of prior accident years compared to a reduction of $26.2 million for the three months ended March 31, 2017. The Company ceded $125.5 million of reserves as part of an adverse development cover purchased during the twelve months ended December 31, 2017. For additional information on the reserve releases, please refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Reserves for Losses and Loss Adjustment Expenses” below.



	Insurance
	Incurred Claims, IBNR and Allocated Loss Adjustment Expenses, Net of Reinsurance								As at March 31, 2018
									Total of IBNR Plus Expected Development on Reported Claims	Cumulative Number of Reported Claims
	For the Years Ended December 31,
	Unaudited Prior Years
Accident Year	2012	2013	2014	2015	2016	2017	Q1 2018
	$ (in millions)
2012	611.2	632.4	661.7	676.3	661.1	644.4	644.3		29.3	15,648
2013		696.7	674.4	685.3	667.0	657.0	654.1		45.1	14,597
2014			763.0	737.6	709.6	702.6	705.4		70.8	18,855
2015				927.6	918.0	867.2	871.2		162.7	21,321
2016					920.4	892.3	887.7		300.0	21,042
2017						907.0	870.6		232.7	19,494
2018							159.8		113.8	2,636
						Total	$	4,793.1



	Insurance
	Cumulative Paid Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance

	For the Years Ended December 31,
	Unaudited Prior Years
Accident Year	2012	2013	2014	2015	2016	2017	Q1 2018
	($ in millions)
2012	118.5	310.6	382.2	457.5	508.0	530.2	532.0
2013		92.1	257.3	368.5	459.4	507.9	524.1
2014			100.2	249.8	393.1	470.4	479.1
2015				120.4	331.4	478.2	508.4
2016					118.7	349.9	399.9
2017						169.4	261.6
2018							5.0
					Total		$	2,710.1

	All outstanding liabilities for 2012 and subsequent years, net of reinsurance						$	2,083.0
		All outstanding liabilities before 2012, net of reinsurance					131.1
		Liabilities for claims and claim adjustment expenses, net of reinsurance					$	2,214.1



	Reinsurance
	Incurred Claims, IBNR and Allocated Loss Adjustment Expenses, Net of Reinsurance								As at March 31, 2018
									Total of IBNR Plus Expected Development on Reported Claims	Cumulative Number of Reported Claims
	For the Years Ended December 31,
	Unaudited Prior Years
Accident Year	2012	2013	2014	2015	2016	2017	Q1 2018
	$ (in millions)
2012	699.0	743.7	727.2	698.0	696.9	695.1	692.2		79.7	3,791
2013		588.2	581.4	560.5	533.9	514.3	513.2		72.6	3,641
2014			557.6	539.1	523.1	495.7	486.4		94.9	3,614
2015				590.3	574.7	568.1	562.4		142.0	3,770
2016					761.4	775.5	775.0		234.8	3,492
2017						1,204.4	1,213.1		483.7	3,240
2018							176.5		148.0	1,010
				Total			$	4,418.8



	Reinsurance
	Cumulative Paid Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance

	For the Years Ended December 31,
	Unaudited Prior Years
Accident Year	2012	2013	2014	2015	2016	2017	Q1 2018
	($ in millions)
2012	64.0	251.4	364.8	419.2	463.4	501.5	508.0
2013		64.2	190.9	284.0	326.3	366.6	373.3
2014			57.8	175.5	252.3	293.7	302.1
2015				58.1	174.6	276.9	297.9
2016					126.9	355.5	372.4
2017						229.3	415.8
2018							2.4
					Total		$	2,271.9

	All outstanding liabilities for 2012 and subsequent years, net of reinsurance						2,146.9
		All outstanding liabilities before 2012, net of reinsurance					660.0
		Liabilities for claims and claim adjustment expenses, net of reinsurance					$	2,806.9



	Three Months Ended March 31, 2018
	($ in millions)
Net outstanding liabilities:
Insurance lines	2,214.1
Reinsurance lines	2,806.9
Net loss and LAE	5,021.0

Reinsurance recoverable on unpaid losses:
Insurance lines	1,304.3
Reinsurance lines	307.0
Total reinsurance recoverable on unpaid losses	1,611.3

Insurance lines other than short-duration	—
Unallocated claims incurred	48.8
Other	(1.7	)
	47.1

Provision for losses and LAE at the end of the period	6,679.4