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Segment Reporting (Tables)

12 Months Ended

Dec. 31, 2020

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 twelve months ended December 31, 2020, 2019 and 2018:

			Twelve Months Ended December 31, 2020
			Reinsurance						Insurance						Total
			($ in millions)
Underwriting Revenues
Gross written premiums			$	1,660.8					$	2,042.8					$	3,703.6
Net written premiums			1,302.1						1,280.8						2,582.9
Gross earned premiums			1,616.4						2,027.1						3,643.5
Net earned premiums			1,292.1						1,240.5						2,532.6
Underwriting Expenses
Losses and loss adjustment expenses			958.6						882.2						1,840.8
Amortization of deferred policy acquisition costs			246.0						219.7						465.7
General and administrative expenses			110.8						197.2						308.0
Underwriting (loss)			(23.3)						(58.6)						(81.9)
Corporate expenses															(70.2)
Non-operating expenses															(32.7)			(1)
Net investment income															154.6
Realized and unrealized investment gains															98.5
Realized and unrealized investment losses															(27.4)
Change in fair value of derivatives															(65.1)
Interest expense on long term debt															(33.9)
Net realized and unrealized foreign exchange (losses)															(12.4)
Other income															49.8			(2)
Other expenses															(10.8)
(Loss) before income taxes															(31.5)
Income tax (expense)															(8.6)
Net (loss)															$	(40.1)
Net reserves for loss and loss adjustment expenses			$	2,095.7					$	1,874.4					$	3,970.1
Ratios
Loss ratio			74.2		%				71.1		%				72.7		%
Policy acquisition expense ratio			19.0						17.7						18.4
General and administrative expense ratio			8.6						15.9						16.2			(3)
Expense ratio			27.6						33.6						34.6
Combined ratio			101.8		%				104.7		%				107.3		%

 _______________

(1)Non-operating expenses includes $18.2 million of costs related to severance, retention awards and other costs, $12.9 million of impairment charges related to lease assets as a result of sub-leasing certain office space and $1.6 million of amortization of intangible assets and other non-operating expenses.

(2)Includes the gain on sale of our renewal rights on our surety insurance book of business to a third party, totaling $43.1 million.

(3)The general and administrative expense ratio in the total column includes corporate and non-operating expenses.

			Twelve Months Ended December 31, 2019
			Reinsurance						Insurance						Total
			( $ in millions)
Underwriting Revenues
Gross written premiums			$	1,485.5					$	1,956.9					$	3,442.4
Net written premiums			1,251.1						1,176.8						2,427.9
Gross earned premiums			1,494.9						1,927.5						3,422.4
Net earned premiums			1,255.2						1,038.1						2,293.3
Underwriting Expenses
Losses and loss adjustment expenses			917.9						761.8						1,679.7
Amortization of deferred policy acquisition costs			264.9						147.8						412.7
General and administrative expenses			111.7						229.8						341.5
Underwriting (loss)			(39.3)						(101.3)						(140.6)
Corporate expenses															(54.5)
Non-operating expenses															(125.6)			(1)
Net investment income															197.3
Realized and unrealized investment gains															97.1
Realized and unrealized investment losses															(10.9)
Realized loss on debt extinguishment															(5.5)
Change in fair value of loan notes issued by variable interest entities															(3.1)
Change in fair value of derivatives															(144.2)
Interest expense on long term debt															(20.2)
Net realized and unrealized foreign exchange (losses)															(11.8)
Other income															4.9
Other expenses															(1.7)
(Loss) before income taxes															(218.8)
Income tax (expense)															(22.9)
Net (loss)															$	(241.7)
Net reserves for loss and loss adjustment expenses			$	2,605.9					$	2,026.1					$	4,632.0
Ratios
Loss ratio			73.1		%				73.4		%				73.2		%
Policy acquisition expense ratio			21.1						14.2						18.0
General and administrative expense ratio			8.9						22.1						22.7			(2)
Expense ratio			30.0						36.3						40.7
Combined ratio			103.1		%				109.7		%				113.9		%

 ________________

(1)Non-operating expenses includes $103.4 million of costs related to the Merger, severance, retention and other costs, $22.2 million of expenses related to the Company’s operating effectiveness and efficiency program, which includes $12.3 million of impairment charges related to lease assets as a result of sub-leasing certain office space.

(2)The general and administrative expense ratio in the total column includes corporate and non-operating expenses.

			Twelve Months Ended December 31, 2018
			Reinsurance						Insurance						Total
			($ in millions)
Underwriting Revenues
Gross written premiums			$	1,495.7					$	1,951.2					$	3,446.9
Net written premiums			1,182.9						899.1						2,082.0
Gross earned premiums			1,593.9						1,940.5						3,534.4
Net earned premiums			1,256.4						958.3						2,214.7
Underwriting Expenses
Losses and loss adjustment expenses			927.0						646.0						1,573.0
Amortization of deferred policy acquisition costs			260.9						110.7						371.6
General and administrative expenses			118.5						239.2						357.7
Underwriting (loss)			(50.0)						(37.6)						(87.6)
Corporate expenses															(56.8)
Non-operating expenses															(77.2)			(1)
Net investment income															198.2
Realized and unrealized investment gains															110.0
Realized and unrealized investment losses															(174.7)
Realized (loss) on debt extinguishment															(8.6)
Change in fair value of loan notes issued by variable interest entities															(4.4)
Change in fair value of derivatives															(31.8)
Interest expense on long term debt															(25.9)
Net realized and unrealized foreign exchange (losses)															(3.5)
Other income															9.0
Other expenses															(2.7)
(Loss) before income taxes															(156.0)
Income tax benefit															10.2
Net (loss)															$	(145.8)
Net reserves for loss and loss adjustment expenses			$	2,843.6					$	2,153.0					$	4,996.6
Ratios
Loss ratio			73.8		%				67.4		%				71.0		%
Policy acquisition expense ratio			20.8						11.6						16.8
General and administrative expense ratio			9.4						25.0						22.2			(2)
Expense ratio			30.2						36.6						39.0
Combined ratio			104.0		%				104.0		%				110.0		%

_______________

(1)Non-operating expenses includes $37.5 million of expenses related to Company’s operating effectiveness and efficiency program, $39.0 million of advisor fees related to the Merger and $11.3 million of retention costs, partially offset by the write back of a $14.1 million buy-out provision.

(2)The general and administrative expense ratio in the total column includes corporate and non-operating expenses.

Schedule of gross written premiums based on geographical areas

Geographical Areas. The following summary presents the Company’s gross written premiums based on the location of the insured risk for the twelve months ended December 31, 2020, 2019 and 2018.

						For the Twelve Months Ended
						December 31, 2020						December 31, 2019						December 31, 2018
						($ in millions)
Australia/Asia						$	259.7					$	215.9					$	175.9
Caribbean						6.0						9.3						7.7
Europe						92.5						82.8						92.6
United Kingdom						374.1						295.7						290.1
United States & Canada (1)						2,267.5						2,003.9						1,875.9
Worldwide excluding United States (2)						23.1						63.0						70.1
Worldwide including United States (3)						501.2						614.9						775.8
Others						179.5						156.9						158.8
Total						$	3,703.6					$	3,442.4					$	3,446.9

 ______________

(1)    “United States and Canada” comprises individual policies that insure risks specifically in the United States and/or Canada, but not elsewhere.

(2)    “Worldwide excluding the United States” comprises individual policies that insure risks wherever they may be across the world but specifically excludes the United States.

(3)    “Worldwide including the United States” comprises individual policies that insure risks wherever they may be across the world but specifically includes the United States.

X

- Definition

Tabular disclosure of information concerning material long-lived assets (excluding financial instruments, customer relationships with financial institutions, mortgage and other servicing rights, deferred policy acquisition costs, and deferred taxes assets) located in identified geographic areas and/or the amount of revenue from external customers attributed to that country from which revenue is material. An entity may also provide subtotals of geographic information about groups of countries.

+ References

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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.

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