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Segment Reporting (Tables) | 9 Months Ended
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Sep. 30, 2018
Segment Reporting [Abstract] |
Summary of Gross and Net Written and Earned Premiums, Underwriting Results, Ratios and Reserves for Each of Company's Business Segments | The following tables provide a summary of gross and net written and earned premiums, underwriting results, ratios and reserves for each of the Company’s business segments for the three months ended September 30, 2018 and 2017:
| Three Months Ended September 30, 2018 |
| Reinsurance |  | Insurance |  | Total |
| ($ in millions) |
Underwriting Revenues |  |  |  |  |  |
Gross written premiums | $ | 396.4 |  |  | $ | 476.8 |  |  | $ | 873.2 |  |
Net written premiums | 356.4 |  |  | 222.5 |  |  | 578.9 |  |
Gross earned premiums | 475.3 |  |  | 498.3 |  |  | 973.6 |  |
Net earned premiums | 388.5 |  |  | 234.7 |  |  | 623.2 |  |
Underwriting Expenses |  |  |  |  |  |
Losses and loss adjustment expenses | 281.5 |  |  | 149.6 |  |  | 431.1 |  |
Amortization of deferred policy acquisition costs | 75.7 |  |  | 25.3 |  |  | 101.0 |  |
General and administrative expenses | 34.7 |  |  | 58.7 |  |  | 93.4 |  |
Underwriting (loss)/income | $ | (3.4 | ) |  | $ | 1.1 |  |  | (2.3 | ) |
Corporate expenses |  |  |  |  | (16.0 | ) |
Non-operating expenses (1) |  |  |  |  | (51.0 | ) |
Net investment income |  |  |  |  | 48.0 |  |
Realized and unrealized investment gains |  |  |  |  | 1.8 |  |
Realized and unrealized investment losses |  |  |  |  | (2.7 | ) |
Change in fair value of loan notes issued by variable interest entities |  |  |  |  | (1.7 | ) |
Change in fair value of derivatives |  |  |  |  | 7.2 |  |
Interest expense on long term debt |  |  |  |  | (5.4 | ) |
Net realized and unrealized foreign exchange losses |  |  |  |  | (9.5 | ) |
Other income |  |  |  |  | 1.4 |  |
Other expenses |  |  |  |  | (0.4 | ) |
(Loss) before tax |  |  |  |  | $ | (30.6 | ) |
Net reserves for loss and loss adjustment expenses | $ | 2,829.1 |  |  | $ | 2,130.0 |  |  | $ | 4,959.1 |  |
Ratios |  |  |  |  |  |
Loss ratio | 72.5 | % |  | 63.7 | % |  | 69.2 | % |
Policy acquisition expense ratio | 19.5 |  |  | 10.8 |  |  | 16.2 |  |
General and administrative expense ratio | 8.9 |  |  | 25.0 |  |  | 25.7 |  | (2)
Expense ratio | 28.4 |  |  | 35.8 |  |  | 41.9 |  |
Combined ratio | 100.9 | % |  | 99.5 | % |  | 111.1 | % |
(1) | Non-operating expenses includes $11.1 million of expenses related to the Company’s operating effectiveness and efficiency program (the “Effectiveness and Efficiency Program”) and $38.6 million of advisor fees related to the Merger.
(2) | The general and administrative expense ratio in the “Total” column includes corporate and non-operating expenses.
| Three Months Ended September 30, 2017 |
| Reinsurance |  | Insurance |  | Total |
| ( $ in millions) |
Underwriting Revenues |  |  |  |  |  |
Gross written premiums | $ | 431.5 |  |  | $ | 421.0 |  |  | $ | 852.5 |  |
Net written premiums | 363.6 |  |  | 243.8 |  |  | 607.4 |  |
Gross earned premiums | 464.0 |  |  | 449.3 |  |  | 913.3 |  |
Net earned premiums | 382.0 |  |  | 270.5 |  |  | 652.5 |  |
Underwriting Expenses |  |  |  |  |  |
Losses and loss adjustment expenses | 502.2 |  |  | 274.0 |  |  | 776.2 |  |
Amortization of deferred policy acquisition costs | 61.5 |  |  | 43.9 |  |  | 105.4 |  |
General and administrative expenses | 32.8 |  |  | 59.4 |  |  | 92.2 |  |
Underwriting (loss) | $ | (214.5 | ) |  | $ | (106.8 | ) |  | (321.3 | ) |
Corporate expenses |  |  |  |  | (13.5 | ) |
Non-operating expenses(1) |  |  |  |  | (5.2 | ) |
Net investment income |  |  |  |  | 46.4 |  |
Realized and unrealized investment gains |  |  |  |  | 29.9 |  |
Realized and unrealized investment losses |  |  |  |  | (12.4 | ) |
Change in fair value of loan notes issued by variable interest entities |  |  |  |  | 9.8 |  |
Change in fair value of derivatives |  |  |  |  | 4.5 |  |
Interest expense on long term debt |  |  |  |  | (7.4 | ) |
Net realized and unrealized foreign exchange gains |  |  |  |  | 8.4 |  |
Net other expense |  |  |  |  | (2.2 | ) |
(Loss) before tax |  |  |  |  | $ | (263.0 | ) |
Net reserves for loss and loss adjustment expenses | $ | 2,865.8 |  |  | $ | 2,255.3 |  |  | $ | 5,121.1 |  |
Ratios |  |  |  |  |  |
Loss ratio | 131.5 | % |  | 101.3 | % |  | 119.0 | % |
Policy acquisition expense ratio | 16.1 |  |  | 16.2 |  |  | 16.2 |  |
General and administrative expense ratio | 8.6 |  |  | 22.0 |  |  | 17.0 |  | (2)
Expense ratio | 24.7 |  |  | 38.2 |  |  | 33.2 |  |
Combined ratio | 156.2 | % |  | 139.5 | % |  | 152.2 | % |
(1) | Non-operating expenses includes $4.1 million of expenses related to the Company’s Effectiveness and Efficiency Program.
(2) | The general and administrative expense ratio in the “Total” column includes corporate and non-operating expenses.
The following tables provide a summary of gross and net written and earned premiums, underwriting results, ratios and reserves for each of the Company’s business segments for the nine months ended September 30, 2018 and 2017:
| Nine Months Ended September 30, 2018 |
| Reinsurance |  | Insurance |  | Total |
| ($ in millions) |
Underwriting Revenues |  |  |  |  |  |
Gross written premiums | $ | 1,345.9 |  |  | $ | 1,497.9 |  |  | $ | 2,843.8 |  |
Net written premiums | 1,048.3 |  |  | 652.1 |  |  | 1,700.4 |  |
Gross earned premiums | 1,216.5 |  |  | 1,445.2 |  |  | 2,661.7 |  |
Net earned premiums | 960.0 |  |  | 716.2 |  |  | 1,676.2 |  |
Underwriting Expenses |  |  |  |  |  |
Losses and loss adjustment expenses | 615.4 |  |  | 436.3 |  |  | 1,051.7 |  |
Amortization of deferred policy acquisition costs | 194.4 |  |  | 83.3 |  |  | 277.7 |  |
General and administrative expenses | 94.2 |  |  | 179.5 |  |  | 273.7 |  |
Underwriting income | $ | 56.0 |  |  | $ | 17.1 |  |  | 73.1 |  |
Corporate expenses |  |  |  |  | (45.7 | ) |
Non-operating expenses (1) |  |  |  |  | (72.2 | ) |
Net investment income |  |  |  |  | 145.7 |  |
Realized and unrealized investment gains |  |  |  |  | 105.9 |  |
Realized and unrealized investment losses |  |  |  |  | (165.2 | ) |
Realized loss on the debt extinguishment |  |  |  |  | (8.6 | ) |
Change in fair value of loan notes issued by variable interest entities |  |  |  |  | (4.1 | ) |
Change in fair value of derivatives |  |  |  |  | (15.4 | ) |
Interest expense on long term debt |  |  |  |  | (20.4 | ) |
Net realized and unrealized foreign exchange gains |  |  |  |  | (9.0 | ) |
Other income |  |  |  |  | 5.6 |  |
Other expenses |  |  |  |  | (2.1 | ) |
(Loss) before tax |  |  |  |  | $ | (12.4 | ) |
Net reserves for loss and loss adjustment expenses | $ | 2,829.1 |  |  | $ | 2,130.0 |  |  | $ | 4,959.1 |  |
Ratios |  |  |  |  |  |
Loss ratio | 64.1 | % |  | 60.9 | % |  | 62.7 | % |
Policy acquisition expense ratio | 20.3 |  |  | 11.6 |  |  | 16.6 |  |
General and administrative expense ratio | 9.8 |  |  | 25.1 |  |  | 23.4 |  | (2)
Expense ratio | 30.1 |  |  | 36.7 |  |  | 40.0 |  |
Combined ratio | 94.2 | % |  | 97.6 | % |  | 102.7 | % |
(1) | Non-operating expenses includes $31.5 million of expenses related to the Company’s Effectiveness and Efficiency Program and $38.6 million of advisor fees related to the Merger.
(2) | The general and administrative expense ratio in the “Total” column includes corporate and non-operating expenses.
| Nine Months Ended September 30, 2017 |
| Reinsurance |  | Insurance |  | Total |
| ( $ in millions) |
Underwriting Revenues |  |  |  |  |  |
Gross written premiums | $ | 1,332.4 |  |  | $ | 1,340.2 |  |  | $ | 2,672.6 |  |
Net written premiums | 1,097.3 |  |  | 775.0 |  |  | 1,872.3 |  |
Gross earned premiums | 1,112.2 |  |  | 1,302.1 |  |  | 2,414.3 |  |
Net earned premiums | 932.2 |  |  | 863.4 |  |  | 1,795.6 |  |
Underwriting Expenses |  |  |  |  |  |
Losses and loss adjustment expenses | 797.9 |  |  | 652.6 |  |  | 1,450.5 |  |
Amortization of deferred policy acquisition costs | 174.4 |  |  | 141.0 |  |  | 315.4 |  |
General and administrative expenses | 117.4 |  |  | 186.9 |  |  | 304.3 |  |
Underwriting (loss) | $ | (157.5 | ) |  | $ | (117.1 | ) |  | (274.6 | ) |
Corporate expenses |  |  |  |  | (38.3 | ) |
Non-operating expenses(1) |  |  |  |  | (9.5 | ) |
Net investment income |  |  |  |  | 141.5 |  |
Realized and unrealized investment gains |  |  |  |  | 130.1 |  |
Realized and unrealized investment losses |  |  |  |  | (24.4 | ) |
Change in fair value of loan notes issued by variable interest entities |  |  |  |  | 3.6 |  |
Change in fair value of derivatives |  |  |  |  | 25.2 |  |
Interest expense on long term debt |  |  |  |  | (22.2 | ) |
Net realized and unrealized foreign exchange (losses) |  |  |  |  | (21.1 | ) |
Other income |  |  |  |  | 5.0 |  |
Other expenses |  |  |  |  | (2.0 | ) |
(Loss) before tax |  |  |  |  | $ | (86.7 | ) |
Net reserves for loss and loss adjustment expenses | $ | 2,865.8 |  |  | $ | 2,255.3 |  |  | $ | 5,121.1 |  |
Ratios |  |  |  |  |  |
Loss ratio | 85.6 | % |  | 75.6 | % |  | 80.8 | % |
Policy acquisition expense ratio | 18.7 |  |  | 16.3 |  |  | 17.6 |  |
General and administrative expense ratio | 12.6 |  |  | 21.6 |  |  | 19.6 |  | (2)
Expense ratio | 31.3 |  |  | 37.9 |  |  | 37.2 |  |
Combined ratio | 116.9 | % |  | 113.5 | % |  | 118.0 | % |
(1) | Non-operating expenses includes $4.1 million of expenses related to the Company’s Effectiveness and Efficiency Program.
(2) | The general and administrative expense ratio in the “Total” column includes corporate and non-operating expenses.

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- Definition Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8736-108599 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8813-108599 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=108376223&loc=d3e13816-109267 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8721-108599 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8906-108599 + Details
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