The Company’s actuaries perform an actuarial projection of the Company’s reserves quarterly and have a third-party actuarial review performed periodically. Reserves are estimated on an individual contract basis. The Company typically initially reserves individual contracts to the expected loss and loss expense ratio in its pricing analysis. The Company also considers the level of adequacy of the pricing loss ratio estimates, and may make upward or downward adjustments in the aggregate reserves if there is evidence that the pricing loss ratio estimates are biased in one direction or the other. As loss information is received from cedents, the Company incorporates other actuarial methods into its projection of ultimate losses and, hence, reserves.

In the Company’s pricing analyses, there is a significant amount of information unique to the individual client and, when necessary, the analysis is supplemented with industry data. Industry data primarily takes the form of paid and incurred development patterns from statutory financial statements and statistical agencies. For the Company’s actuarial reserve projections, the relevant information received from clients includes premium estimates, paid loss and loss adjustment expenses and case reserves. The Company’s actuaries review the data for reasonableness and research any noted anomalies. On each contract, the Company’s actuaries compare the expected paid and incurred amounts at each quarter-end with actual amounts reported. The Company’s actuaries also compare premiums received with projected premium receipts at each quarter end.

There is a time lag between when a covered loss event occurs and when it is reported to the Company’s cedents. There is also a time lag between when clients pay claims, establish case reserves and re-estimate their reserves, and when they notify the Company of the payments and/or new or revised case reserves. This reporting lag is typically 60 to 90 days after the end of a reporting period, but can be longer in some cases. The Company’s actuaries use techniques that adjust for this reporting lag. While it would be unusual to have lags that extend beyond 90 days, the Company’s actuarial techniques are designed to adjust for such a circumstance.

To estimate ultimate losses using the a priori loss ratio method, the Company multiplies earned premiums by an expected loss ratio. The expected loss ratio is selected as part of the pricing and utilizes individual client data, supplemented by industry data where necessary. This method is often useful when there is limited historical data due to few losses being incurred.

This method estimates ultimate losses by calculating past paid loss development factors and applying them to exposure periods with further expected paid loss development. The paid loss development method assumes that losses are paid at a rate consistent with the historical rate of payment. It provides an objective test of reported loss projections because paid losses contain no case reserve estimates. For some lines of business, claim payments are made slowly and it may take many years for claims to be fully reported and settled.

This method estimates ultimate losses by using past incurred loss development factors and applying them to exposure periods with further expected incurred loss development. Since incurred losses include payments and case reserves, changes in both of these amounts are incorporated in this method. This approach provides a larger volume of data to estimate ultimate losses than paid loss methods. Thus, incurred loss patterns may be less varied than paid loss patterns, especially for coverages that have historically been paid out over a long period of time but for which claims are incurred relatively early and case loss reserve estimates are established.

These methods are a weighted average of the a priori loss ratio method and the relevant development method. The weighting between the two methods depends on the maturity of the business. This means that for the more recent years a greater weight is placed on the a priori loss ratio method, while for the more mature years a greater weight is placed on the development methods. These methods avoid some of the distortions that could result from a large development factor being applied to a small base of paid or incurred losses to calculate ultimate losses. This method will react slowly if actual paid or incurred loss experience develops differently than historical paid or incurred loss experience because of major changes in rate levels, retentions or deductibles, the forms and conditions of coverage, the types of risks covered or a variety of other factors.

Key to the projection of ultimate loss is the amount of credibility or weight assigned to each actuarial method. Each method has advantages and disadvantages, and those can change depending on numerous factors including the reliability of the underlying data. The selection and weighting of the projection methods is a highly subjective process. In order to achieve a desirable amount of consistency from study to study and between contracts, the Company’s actuaries have implemented a weighting scheme that incorporates numerous “rules” for the weighting of actuarial methods. These rules attempt to effectively standardize the process used for selecting weights for the various methods. There are numerous circumstances where the rules would be modified for specific reinsurance contracts; examples would include a large market event or new information on historical years that may cause us to increase our a priori loss ratio.

Some of the Company’s contracts are exposed to losses from catastrophes (either natural catastrophes or man-made catastrophes). Given the high-severity, low-frequency nature of these events, the losses typically generated therefrom do not lend themselves to traditional actuarial reserving methods, such as those described above. Therefore, our reserving approach for these types of coverages is to estimate the ultimate cost associated with a single loss event rather than analyzing the historical development patterns of past losses for estimating ultimate losses for an entire contract. We estimate our reserves for these catastrophe events on a contract-by-contract basis by means of a review of policies with known or potential exposure to a particular loss event. We consider the following information when making these contract-by-contract estimates of catastrophe event losses: information provided by cedents and brokers; industry loss estimates; catastrophe model output; and the terms and conditions of the contracts with exposure to those events. Initial estimates are established in the period that a catastrophe event occurs and are then monitored each subsequent quarter, considering the latest information available.


	2020		2019		2018
Gross reserves for loss and loss adjustment expenses, beginning of year	$	1,111,692	$	937,157	$	720,570
Less: loss and loss adjustment expenses recoverable, beginning of year	(5,520)		(2,031)		(1,113)
Less: deferred charges on retroactive reinsurance contracts	(6,738)		(3,847)		—
Net reserves for loss and loss adjustment expenses, beginning of year	1,099,434		931,279		719,457
Increase (decrease) in net loss and loss adjustment expenses incurred in respect of losses occurring in:
Current year	431,506		489,994		434,276
Prior years	33,792		(86,495)		4,138
Total incurred loss and loss adjustment expenses	465,298		403,499		438,414
Net loss and loss adjustment expenses paid in respect of losses occurring in:
Current year	(73,550)		(63,638)		(85,173)
Prior years	(209,534)		(188,392)		(132,336)
Total net paid losses	(283,084)		(252,030)		(217,509)
Foreign currency translation	8,051		16,686		(9,083)
Net reserves for loss and loss adjustment expenses, end of year	1,289,699		1,099,434		931,279
Plus: loss and loss adjustment expenses recoverable, end of year	14,375		5,520		2,031
Plus: deferred charges on retroactive reinsurance contracts	5,994		6,738		3,847
Gross reserves for loss and loss adjustment expenses, end of year	$	1,310,068	$	1,111,692	$	937,157

Changes in the Company’s loss and loss adjustment expense reserves result from re-estimating loss reserves and from changes in premium earnings estimates. Furthermore, many of the Company’s contracts have sliding scale or profit commissions whereby loss reserve development can be offset by changes in acquisition costs that vary inversely with loss experience. In some instances, the Company can have loss reserve development on contracts where there is no sliding scale or profit commission or where the loss ratio falls outside of the loss ratio range to which the sliding scale or profit commission applies.

The $33.8 million net increase in prior years’ reserves for the year ended December 31, 2020 includes $18.8 million increase in loss reserves resulting from increases in premium earnings estimates on certain contracts and $15.0 million of net adverse reserve development related to increases in loss reserve estimates. The net increase in loss reserves as well as the changes in acquisition costs as a result of sliding scale or profit commissions is explained as follows:

•The $18.8 million net increase in loss and loss adjustment expenses incurred resulting from increases in premium earnings estimates was accompanied by a $5.0 million increase in acquisition costs, for a total of $23.8 million increase in loss and loss adjustment expenses incurred and acquisition costs. The increase in loss and loss adjustment expenses incurred and acquisition costs was due to an increase in prior period earned premium of $27.9 million. The increase in prior period earned premium was the result of changes in ultimate premium and earning pattern estimates. The net impact was a $4.1 million improvement in the net underwriting results for the year ended December 31, 2020.

•The $15.0 million of net adverse prior years’ reserve development related to increases in loss reserve estimates for the year ended December 31, 2020 was accompanied by net increases of $11.8 million in acquisition costs and net decreases of $7.8 million in earned premium, resulting in a $34.6 million increase in net underwriting loss, primarily due to:

experience. The adverse underwriting loss development is a result of accumulated loss experience and cedent reserving increases, indicating that underlying casualty loss trends are higher than initial pricing and reserving, consistent with the industry impact of social inflation. In addition, the current elevated level of uncertainty makes historical data less applicable for future projections, and has contributed to an increase in the estimate of ultimate losses on certain accounts; partially offset by

•$2.4 million of improvement in net underwriting loss development relating to one retroactive reinsurance contract as a result of better than expected loss experience. This retroactive reinsurance contract had profit commission terms such that the net favorable prior years’ reserve development of $21.6 million associated with this contract was offset by an increase in acquisition costs of $19.2 million.

The $86.5 million net decrease in prior years’ reserves for the year ended December 31, 2019 includes $98.5 million of net favorable reserve development related to decreases in loss reserve estimates, partially offset by a $12.0 million increase in loss reserves resulting from increases in premium earnings estimates on certain contracts. The net decrease in loss reserves as well as the impact of any offsetting changes in acquisition costs as a result of sliding scale or profit commissions is explained as follows:

•$0.5 million of improvement in net underwriting loss development relating to one retroactive reinsurance contract as a result of better than expected loss experience. This retroactive reinsurance contract had profit commission terms such that the net favorable reserve development associated with this contract of $69.4 million was offset by an increase in acquisition costs of $68.9 million; partially offset by

•The $12.0 million net increase in loss and loss adjustment expenses incurred resulting from increases in premium earnings estimates was accompanied by a $7.2 million decrease in acquisition costs, for a total of $4.8 million increase in loss and loss adjustment expenses incurred and acquisition costs. The increase in loss and loss adjustment expenses incurred and acquisition costs was due to an increase in prior period earned premium of $3.1 million. The increase in prior period earned premium was the result of changes in ultimate premium and earning pattern estimates. The net impact was a $1.7 million increase in net underwriting loss for the year ended December 31, 2019.

The $4.1 million net increase in prior years’ reserves for the year ended December 31, 2018 includes $12.9 million of net favorable reserve development related to decreases in loss reserve estimates and $17.0 million increase in loss reserves resulting from increases in premium earnings estimates on certain contracts. The net increase in loss reserves as well as the impact of any offsetting changes in acquisition costs as a result of sliding scale or profit commissions is explained as follows:

•The $17.0 million net increase in loss and loss adjustment expenses incurred resulting from increases in premium earnings estimates was accompanied by a $5.4 million increase in acquisition costs, for a total of $22.4 million increase in loss and loss adjustment expenses incurred and acquisition costs. The increase in loss and loss adjustment expenses incurred and acquisition costs was due to an increase in prior period earned premium of $23.4 million. The increase in prior period earned premium was the result of changes in ultimate premium and earning pattern estimates. The net impact was a $1.0 million improvement in the net underwriting results for the year ended December 31, 2018.

The Company manages its business on the basis of four operating segments, accident & health, specialty, property and runoff & other. The Company has disaggregated its loss information presented in the tables below by prospective and retroactive reinsurance. For its prospective reinsurance business, the Company further disaggregated by the different lines of business included in this segment. The Company’s retroactive reinsurance contracts have been presented by year of inception. The Company’s retroactive reinsurance contracts within each inception year share similar characteristics and as a result, have not been disaggregated further. The Company has presented the below development tables for all accident years shown using exchange rates as at December 31, 2020. All accident years prior to the current year have been restated and presented using the current year exchange rate.

The Company’s loss reserve analysis is based primarily on underwriting year data. The preparation of accident year development tables requires an allocation of underwriting year data to the corresponding accident years. For instance, a contract written in one particular underwriting year may have exposure to losses from two or more accident years. These allocations are done using accident year loss payment and reporting patterns, along with premium earnings patterns. These patterns are derived from either company-specific or industry historical loss data, depending on availability and applicability. The Company believes that its allocations are reasonable; however, to the extent that the Company’s allocation procedure for loss and loss adjustment expenses incurred differs from actual historical development, the actual loss development may differ materially from the loss development presented.

in premium estimates. In addition, many of the Company’s contracts have sliding scale or profit commissions whereby loss reserve development can be offset by changes in acquisition costs. See additional disclosure above on the net impact on underwriting income after considering the impact of changes in premium estimates and the impact of acquisition costs for the years ended December 31, 2020, 2019 and 2018.

The following tables provide a breakdown of the Company’s loss and loss adjustment expenses incurred, net and net loss and loss adjustment expenses paid by accident year by line of business for the Company’s prospective reinsurance contracts for the year ended December 31, 2020. The information related to loss and loss adjustment expenses incurred, net and net loss and loss adjustment expenses paid for the years ended December 31, 2012 through 2019 is presented as supplementary information and is unaudited:


Loss and loss adjustment expenses incurred, net
Accident year	2012		2013		2014		2015		2016		2017		2018		2019		2020		IBNR loss and LAE reserves, net

	<---------------------------------------------- Unaudited ---------------------------------------------->
2012	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2013	—		—		—		—		—		—		—		—		—		—
2014	—		—		—		—		—		—		—		—		—		—
2015	—		—		—		—		—		—		—		—		—		—
2016	—		—		—		—		—		—		—		—		—		—
2017	—		—		—		—		—		716		716		813		829		2
2018	—		—		—		—		—		—		2,624		2,982		3,039		7
2019	—		—		—		—		—		—		—		3,437		3,565		1,001
2020	—		—		—		—		—		—		—		—		3,153		2,671
Total																	$	10,586	$	3,681


Cumulative net losses and loss adjustment expenses paid
Accident year	2012		2013		2014		2015		2016		2017		2018		2019		2020

	<---------------------------------------------- Unaudited ---------------------------------------------->
2012	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2013	—		—		—		—		—		—		—		—		—
2014	—		—		—		—		—		—		—		—		—
2015	—		—		—		—		—		—		—		—		—
2016	—		—		—		—		—		—		—		—		—
2017	—		—		—		—		—		4		261		575		827
2018	—		—		—		—		—		—		957		2,109		3,032
2019	—		—		—		—		—		—		—		1,640		2,564
2020	—		—		—		—		—		—		—		—		482
Total																	$	6,905

Global A&H - net reserves for loss and loss adjustment expenses, end of year																	$	3,681


Loss and loss adjustment expenses incurred, net
Accident year	2012		2013		2014		2015		2016		2017		2018		2019		2020		IBNR loss and LAE reserves, net

	<---------------------------------------------- Unaudited ---------------------------------------------->
2012	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2013	—		—		—		—		—		—		—		—		—		—
2014	—		—		—		—		—		—		—		—		—		—
2015	—		—		—		—		—		—		—		—		—		—
2016	—		—		—		—		4,673		3,885		812		730		119		80
2017	—		—		—		—		—		3,932		2,829		3,212		3,478		525
2018	—		—		—		—		—		—		3,589		3,852		3,088		585
2019	—		—		—		—		—		—		—		3,967		4,250		2,839
2020	—		—		—		—		—		—		—		—		3,442		3,419
Total																	$	14,377	$	7,448


Cumulative net losses and loss adjustment expenses paid
Accident year	2012		2013		2014		2015		2016		2017		2018		2019		2020

	<---------------------------------------------- Unaudited ---------------------------------------------->
2012	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2013	—		—		—		—		—		—		—		—		—
2014	—		—		—		—		—		—		—		—		—
2015	—		—		—		—		—		—		—		—		—
2016	—		—		—		—		—		—		—		—		—
2017	—		—		—		—		—		—		—		—		126
2018	—		—		—		—		—		—		—		—		2,003
2019	—		—		—		—		—		—		—		—		153
2020	—		—		—		—		—		—		—		—		—
Total																	$	2,282

Marine & Energy - net reserves for loss and loss adjustment expenses, end of year																	$	12,095


Loss and loss adjustment expenses incurred, net
Accident year	2012		2013		2014		2015		2016		2017		2018		2019		2020		IBNR loss and LAE reserves, net

	<---------------------------------------------- Unaudited ---------------------------------------------->
2012	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2013	—		364		408		113		107		99		77		80		77		—
2014	—		—		5,844		2,657		2,430		2,204		1,384		1,454		1,341		—
2015	—		—		—		5,249		5,048		4,760		4,012		3,129		2,665		78
2016	—		—		—		—		10,750		10,732		10,825		6,564		6,752		1,247
2017	—		—		—		—		—		13,356		13,460		7,029		7,445		2,511
2018	—		—		—		—		—		—		17,415		10,661		12,035		4,947
2019	—		—		—		—		—		—		—		17,740		19,348		10,352
2020	—		—		—		—		—		—		—		—		22,803		9,402
Total																	$	72,466	$	28,537


Cumulative net losses and loss adjustment expenses paid
Accident year	2012		2013		2014		2015		2016		2017		2018		2019		2020

	<---------------------------------------------- Unaudited ---------------------------------------------->
2012	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2013	—		—		11		66		74		78		77		77		76
2014	—		—		42		784		1,038		1,318		1,322		1,344		1,310
2015	—		—		—		402		1,128		2,045		2,328		2,503		2,408
2016	—		—		—		—		1,013		2,326		3,419		4,197		4,213
2017	—		—		—		—		—		1,100		2,332		3,026		3,319
2018	—		—		—		—		—		—		897		2,716		3,989
2019	—		—		—		—		—		—		—		1,900		3,368
2020	—		—		—		—		—		—		—		—		8,230
Total																	$	26,913

Credit - net reserves for loss and loss adjustment expenses, end of year																	$	45,553


Loss and loss adjustment expenses incurred, net
Accident year	2012		2013		2014		2015		2016		2017		2018		2019		2020		IBNR loss and LAE reserves, net

	<---------------------------------------------- Unaudited ---------------------------------------------->
2012	$	17,284	$	16,798	$	16,842	$	17,130	$	17,148	$	17,053	$	17,230	$	17,287	$	17,377	$	7
2013	—		48,279		48,606		52,837		52,787		52,735		52,601		52,230		52,450		486
2014	—		—		167,001		174,182		174,714		168,861		168,102		167,237		170,052		11,237
2015	—		—		—		189,321		199,697		183,964		186,499		195,821		195,369		23,674
2016	—		—		—		—		206,074		202,618		205,252		208,768		215,964		48,630
2017	—		—		—		—		—		181,109		186,073		186,623		197,100		73,252
2018	—		—		—		—		—		—		196,161		195,043		203,571		99,702
2019	—		—		—		—		—		—		—		148,962		160,409		94,732
2020	—		—		—		—		—		—		—		—		123,722		101,140
Total																	$	1,336,014	$	452,860


Cumulative net losses and loss adjustment expenses paid
Accident year	2012		2013		2014		2015		2016		2017		2018		2019		2020

	<---------------------------------------------- Unaudited ---------------------------------------------->
2012	$	5,713	$	10,613	$	14,404	$	15,730	$	16,351	$	16,114	$	16,458	$	16,695	$	17,038
2013	—		11,260		26,386		35,526		41,892		46,319		48,545		49,855		50,281
2014	—		—		49,855		113,933		127,284		134,658		140,576		143,441		145,293
2015	—		—		—		45,434		95,143		112,164		126,400		134,143		141,579
2016	—		—		—		—		42,665		96,910		114,312		127,468		137,822
2017	—		—		—		—		—		29,550		63,183		78,105		97,029
2018	—		—		—		—		—		—		25,181		55,558		78,508
2019	—		—		—		—		—		—		—		16,826		42,471
2020	—		—		—		—		—		—		—		—		9,980
Total																	$	720,001

Casualty - net reserves for loss and loss adjustment expenses, end of year																	$	616,013


Loss and loss adjustment expenses incurred, net
Accident year	2012		2013		2014		2015		2016		2017		2018		2019		2020		IBNR loss and LAE reserves, net

	<---------------------------------------------- Unaudited ---------------------------------------------->
2012	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2013	—		2,317		4,272		4,564		4,564		4,564		4,564		4,564		4,564		—
2014	—		—		27,671		20,272		24,214		19,570		21,346		21,355		21,355		174
2015	—		—		—		61,160		84,198		81,934		81,186		81,320		81,312		525
2016	—		—		—		—		91,574		92,759		90,648		91,332		91,409		259
2017	—		—		—		—		—		80,058		85,255		86,544		86,900		1,754
2018	—		—		—		—		—		—		88,621		100,329		97,627		28,803
2019	—		—		—		—		—		—		—		134,382		152,307		86,385
2020	—		—		—		—		—		—		—		—		136,121		101,140
Total																	$	671,595	$	219,040


Cumulative net losses and loss adjustment expenses paid
Accident year	2012		2013		2014		2015		2016		2017		2018		2019		2020

	<---------------------------------------------- Unaudited ---------------------------------------------->
2012	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2013	—		—		1,243		4,563		4,563		4,563		4,563		4,563		4,563
2014	—		—		1,221		14,304		20,921		19,034		20,792		21,082		21,139
2015	—		—		—		30,999		66,086		74,904		77,815		79,727		80,301
2016	—		—		—		—		30,997		77,062		85,422		88,842		90,256
2017	—		—		—		—		—		54,370		75,379		81,290		84,079
2018	—		—		—		—		—		—		31,096		48,967		55,655
2019	—		—		—		—		—		—		—		19,930		49,036
2020	—		—		—		—		—		—		—		—		23,148
Total																	$	408,177

Other Specialty - net reserves for loss and loss adjustment expenses, end of year																	$	263,418


Loss and loss adjustment expenses incurred, net
Accident year	2012		2013		2014		2015		2016		2017		2018		2019		2020		IBNR loss and LAE reserves, net

	<---------------------------------------------- Unaudited ---------------------------------------------->
2012	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2013	—		—		—		—		—		—		—		—		—		—
2014	—		—		—		—		—		—		—		—		—		—
2015	—		—		—		—		—		—		—		—		—		—
2016	—		—		—		—		—		—		—		—		—		—
2017	—		—		—		—		—		—		—		—		—		—
2018	—		—		—		—		—		—		—		—		—		—
2019	—		—		—		—		—		—		—		39,582		39,250		11,000
2020	—		—		—		—		—		—		—		—		59,245		44,628
Total																	$	98,495	$	55,628


Cumulative net losses and loss adjustment expenses paid
Accident year	2012		2013		2014		2015		2016		2017		2018		2019		2020

	<---------------------------------------------- Unaudited ---------------------------------------------->
2012	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2013	—		—		—		—		—		—		—		—		—
2014	—		—		—		—		—		—		—		—		—
2015	—		—		—		—		—		—		—		—		—
2016	—		—		—		—		—		—		—		—		—
2017	—		—		—		—		—		—		—		—		—
2018	—		—		—		—		—		—		—		—		—
2019	—		—		—		—		—		—		—		470		15,326
2020	—		—		—		—		—		—		—		—		7,321
Total																	$	22,647

Property Catastrophe Excess Reinsurance - net reserves for loss and loss adjustment expenses, end of year																	$	75,848


Loss and loss adjustment expenses incurred, net
Accident year	2012		2013		2014		2015		2016		2017		2018		2019		2020		IBNR loss and LAE reserves, net

	<---------------------------------------------- Unaudited ---------------------------------------------->
2012	$	10,917	$	8,672	$	9,375	$	9,353	$	9,416	$	9,472	$	9,501	$	9,490	$	9,484	$	2
2013	—		27,765		24,980		25,766		25,882		25,785		26,170		26,051		26,378		232
2014	—		—		40,256		40,920		41,336		44,627		46,500		46,303		46,719		576
2015	—		—		—		50,330		52,533		54,635		56,313		56,201		56,583		902
2016	—		—		—		—		45,415		43,038		43,799		43,733		43,810		1,108
2017	—		—		—		—		—		41,237		41,833		41,753		41,926		1,576
2018	—		—		—		—		—		—		54,084		52,344		52,650		5,797
2019	—		—		—		—		—		—		—		53,597		53,713		7,096
2020	—		—		—		—		—		—		—		—		59,159		29,199
Total																	$	390,422	$	46,488


Cumulative net losses and loss adjustment expenses paid
Accident year	2012		2013		2014		2015		2016		2017		2018		2019		2020

	<---------------------------------------------- Unaudited ---------------------------------------------->
2012	$	4,656	$	8,381	$	9,075	$	9,186	$	9,352	$	9,400	$	9,482	$	9,483	$	9,482
2013	—		14,635		22,229		24,023		25,167		25,406		25,815		25,993		26,127
2014	—		—		19,420		34,381		38,448		42,775		44,533		45,312		45,937
2015	—		—		—		22,706		43,382		48,360		51,783		53,924		55,066
2016	—		—		—		—		21,593		31,871		37,044		39,651		41,872
2017	—		—		—		—		—		24,713		33,436		37,171		39,282
2018	—		—		—		—		—		—		26,458		35,169		45,146
2019	—		—		—		—		—		—		—		22,624		43,542
2020	—		—		—		—		—		—		—		—		24,454
Total																	$	330,908

Property Risk and Pro Rata - net reserves for loss and loss adjustment expenses, end of year																	$	59,514


Loss and loss adjustment expenses incurred, net
Accident year	2012		2013		2014		2015		2016		2017		2018		2019		2020		IBNR loss and LAE reserves, net

	<---------------------------------------------- Unaudited ---------------------------------------------->
2012	$	52,105	$	49,942	$	50,055	$	50,055	$	50,065	$	50,104	$	50,104	$	50,104	$	50,104	$	1
2013	—		23,273		24,274		23,450		23,138		23,135		23,138		23,125		23,128		1
2014	—		—		—		—		—		—		—		—		—		—
2015	—		—		—		—		—		—		—		—		—		—
2016	—		—		—		—		—		—		—		—		—		—
2017	—		—		—		—		—		—		—		—		—		—
2018	—		—		—		—		—		—		—		—		—		—
2019	—		—		—		—		—		—		—		—		—		—
2020	—		—		—		—		—		—		—		—		—		—
Total																	$	73,232	$	2


Cumulative net losses and loss adjustment expenses paid
Accident year	2012		2013		2014		2015		2016		2017		2018		2019		2020

	<---------------------------------------------- Unaudited ---------------------------------------------->
2012	$	2,666	$	48,455	$	50,024	$	50,025	$	50,067	$	50,103	$	50,103	$	50,103	$	50,103
2013	—		—		22,232		23,138		23,134		23,135		23,137		23,127		23,127
2014	—		—		—		—		—		—		—		—		—
2015	—		—		—		—		—		—		—		—		—
2016	—		—		—		—		—		—		—		—		—
2017	—		—		—		—		—		—		—		—		—
2018	—		—		—		—		—		—		—		—		—
2019	—		—		—		—		—		—		—		—		—
2020	—		—		—		—		—		—		—		—		—
Total																	$	73,230

Agriculture - net reserves for loss and loss adjustment expenses, end of year																	$	2


Loss and loss adjustment expenses incurred, net
Accident year	2012		2013		2014		2015		2016		2017		2018		2019		2020		IBNR loss and LAE reserves, net

	<---------------------------------------------- Unaudited ---------------------------------------------->
2012	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2013	—		—		—		—		—		—		—		—		—		—
2014	—		—		—		—		—		—		—		—		—		—
2015	—		—		—		—		—		—		—		—		—		—
2016	—		—		—		—		—		—		—		—		—		—
2017	—		—		—		—		—		—		—		—		—		—
2018	—		—		—		—		—		—		—		—		—		—
2019	—		—		—		—		—		—		—		—		—		—
2020	—		—		—		—		—		—		—		—		2,863		2,863
Total																	$	2,863	$	2,863


Cumulative net losses and loss adjustment expenses paid
Accident year	2012		2013		2014		2015		2016		2017		2018		2019		2020

	<---------------------------------------------- Unaudited ---------------------------------------------->
2012	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2013	—		—		—		—		—		—		—		—		—
2014	—		—		—		—		—		—		—		—		—
2015	—		—		—		—		—		—		—		—		—
2016	—		—		—		—		—		—		—		—		—
2017	—		—		—		—		—		—		—		—		—
2018	—		—		—		—		—		—		—		—		—
2019	—		—		—		—		—		—		—		—		—
2020	—		—		—		—		—		—		—		—		—
Total																	$	—

Other - net reserves for loss and loss adjustment expenses, end of year																	$	2,863

The Company writes reinsurance contracts that provide limited protection against adverse development on loss originating from multiple accident years. The Company has other retroactive exposure within contracts that provide primarily prospective coverage. These contracts are included in the prospective reinsurance tables above. These contracts are typically part of prospective reinsurance contracts with a small portion of retroactive exposure resulting from the delay between the dates when the relevant contract was bound and the dates on which each incepted. The information below includes loss and loss adjustment expenses incurred, net and loss and loss adjustment expenses paid, net, by accident year for the Company's retroactive reinsurance contracts presented by year of inception of the retroactive reinsurance contracts.

The Company's estimate for loss and loss adjustment expenses incurred, net, at inception of all retroactive reinsurance contracts entered into to date was the same when the contract incepted and at the relevant year end position. As a result, there was no development in the year of inception for any of the Company's retroactive reinsurance contracts written to date. In addition, there were no loss and loss adjustment expenses paid, net, at inception of the Company's retroactive reinsurance contracts. The information related to loss and loss adjustment expenses incurred, net and net loss and loss adjustment expenses paid for the years ended December 31, 2012 through 2019 is presented as supplementary information and is unaudited.


Loss and loss adjustment expenses incurred, net
Accident year	2013		2014		2015		2016		2017		2018		2019		2020		IBNR loss and LAE reserves, net

	<---------------------------------------- Unaudited --------------------------------------------------->
2011	$	5,419	$	4,173	$	4,173	$	4,173	$	4,173	$	4,173	$	4,173	$	4,173	$	—
2012	10,197		7,853		7,853		7,853		7,853		7,853		7,853		7,853		—
2013	4,908		3,779		3,779		3,779		3,779		3,779		3,779		3,779		—
2014	—		—		—		—		—		—		—		—		—
2015	—		—		—		—		—		—		—		—		—
2016	—		—		—		—		—		—		—		—		—
2017	—		—		—		—		—		—		—		—		—
2018	—		—		—		—		—		—		—		—		—
2019	—		—		—		—		—		—		—		—		—
2020	—		—		—		—		—		—		—		—		—
Total															$	15,805	$	—


Cumulative net loss and loss adjustment expenses paid
Accident year	2013		2014		2015		2016		2017		2018		2019		2020

	<---------------------------------------- Unaudited --------------------------------------------------->
2011	$	—	$	1,654	$	4,173	$	4,173	$	4,173	$	4,173	$	4,173	$	4,173
2012	—		3,113		7,853		7,853		7,853		7,853		7,853		7,853
2013	—		1,498		3,779		3,779		3,779		3,779		3,779		3,779
2014	—		—		—		—		—		—		—		—
2015	—		—		—		—		—		—		—		—
2016	—		—		—		—		—		—		—		—
2017	—		—		—		—		—		—		—		—
2018	—		—		—		—		—		—		—		—
2019	—		—		—		—		—		—		—		—
2020	—		—		—		—		—		—		—		—
Total															$	15,805
Net reserves for loss and loss adjustment expenses from 2011 to 2020															—
Net reserves for loss and loss adjustment expenses prior to 2011															—
Retroactive contracts incepting in the year ended December 31, 2013 - net reserves for loss and loss adjustment expenses, end of year															$	—


Loss and loss adjustment expenses incurred, net
Accident year	2014		2015		2016		2017		2018		2019		2020		IBNR loss and LAE reserves, net


	<---------------------------------------- Unaudited ----------------------------------->
2011	$	4,293	$	3,498	$	3,090	$	3,274	$	2,895	$	1,529	$	1,529	$	—
2012	12,343		10,930		9,655		10,230		9,045		4,778		4,778		—
2013	19,174		17,142		15,143		16,045		14,185		7,493		7,493		—
2014	10,851		9,711		8,578		9,089		8,035		4,245		4,245		—
2015	—		—		—		—		—		—		—		—
2016	—		—		—		—		—		—		—		—
2017	—		—		—		—		—		—		—		—
2018	—		—		—		—		—		—		—		—
2019	—		—		—		—		—		—		—		—
2020	—		—		—		—		—		—		—		—
Total													$	18,045	$	—


Cumulative net loss and loss adjustment expenses paid
Accident year	2014		2015		2016		2017		2018		2019		2020

	<---------------------------------------- Unaudited ----------------------------------->
2011	$	—	$	—	$	—	$	—	$	—	$	—	$	1,529
2012	—		—		—		—		—		—		4,778
2013	—		—		—		—		—		—		7,493
2014	—		—		—		—		—		—		4,245
2015	—		—		—		—		—		—		—
2016	—		—		—		—		—		—		—
2017	—		—		—		—		—		—		—
2018	—		—		—		—		—		—		—
2019	—		—		—		—		—		—		—
2020	—		—		—		—		—		—		—
Total													$	18,045
Net reserves for loss and loss adjustment expenses from 2011 to 2020													—
Net reserves for loss and loss adjustment expenses prior to 2011													—
Retroactive contracts incepting in the year ended December 31, 2014 - net reserves for loss and loss adjustment expenses, end of year													$	—


Loss and loss adjustment expenses incurred, net
Accident year	2015		2016		2017		2018		2019		2020		IBNR loss and LAE reserves, net


	<-------------------------------- Unaudited --------------------------->
2011	$	10,433	$	10,433	$	7,913	$	7,527	$	4,509	$	3,108	$	3,108
2012	15,400		15,400		11,820		11,482		6,817		4,480		4,480
2013	18,995		18,995		14,600		14,216		8,432		5,510		5,510
2014	41,992		41,992		32,545		32,143		18,953		11,971		11,971
2015	2,596		2,596		1,788		1,395		913		913		913
2016	—		—		—		—		—		—		—
2017	—		—		—		—		—		—		—
2018	—		—		—		—		—		—		—
2019	—		—		—		—		—		—		—
2020	—		—		—		—		—		—		—
Total											$	25,982	$	25,982


Cumulative net loss and loss adjustment expenses paid
Accident year	2015		2016		2017		2018		2019		2020

	<-------------------------------- Unaudited --------------------------->
2011	$	—	$	—	$	—	$	—	$	—	$	—
2012	—		—		—		—		—		—
2013	—		—		—		—		—		—
2014	—		—		—		—		—		—
2015	—		—		—		—		—		—
2016	—		—		—		—		—		—
2017	—		—		—		—		—		—
2018	—		—		—		—		—		—
2019	—		—		—		—		—		—
2020	—		—		—		—		—		—
Total											$	—
Net reserves for loss and loss adjustment expenses from 2011 to 2020											25,982
Net reserves for loss and loss adjustment expenses prior to 2011											3,454
Retroactive contracts incepting in the year ended December 31, 2015 - net reserves for loss and loss adjustment expenses, end of year											$	29,436


Loss and loss adjustment expenses incurred, net
Accident year	2017		2018		2019		2020		IBNR loss and LAE reserves, net

	<-------------- Unaudited -------------->
2011	$	1,693	$	1,612	$	966	$	871	$	871
2012	2,248		2,174		1,295		1,158		1,158
2013	3,460		3,365		2,000		1,783		1,783
2014	9,894		9,765		5,768		5,101		5,101
2015	13,002		12,805		7,570		6,703		6,703
2016	24,643		24,408		14,397		12,708		12,708
2017	50,570		50,588		29,719		26,090		26,090
2018	—		—		—		—		—
2019	—		—		—		—		—
2020	—		—		—		—		—
Total							$	54,414	$	54,414


Cumulative net loss and loss adjustment expenses paid
Accident year	2017		2018		2019		2020

	<-------------- Unaudited -------------->
2011	$	—	$	—	$	—	$	—
2012	—		—		—		—
2013	—		—		—		—
2014	—		—		—		—
2015	—		—		—		—
2016	—		—		—		—
2017	—		—		—		—
2018	—		—		—		—
2019	—		—		—		—
2020	—		—		—		—
Total							$	—
Net reserves for loss and loss adjustment expenses from 2011 to 2020							54,414
Net reserves for loss and loss adjustment expenses prior to 2011							485
Retroactive contracts incepting in the year ended December 31, 2017 - net reserves for loss and loss adjustment expenses, end of year							$	54,899


Loss and loss adjustment expenses incurred, net
Accident year	2018		2019		2020		IBNR loss and LAE reserves, net

	<------ Unaudited ------>
2011	$	200	$	132	$	132	$	129
2012	452		376		376		102
2013	2,300		2,072		2,072		148
2014	6,000		5,466		5,466		241
2015	13,184		12,092		12,092		330
2016	20,093		18,488		18,488		364
2017	17,847		16,439		16,439		280
2018	15,396		14,240		14,240		101
2019	—		—		—		—
2020	—		—		—		—
Total					$	69,305	$	1,695


Cumulative net loss and loss adjustment expenses paid
Accident year	2018		2019		2020
	<------ Unaudited ------>
2011	$	—	$	3	$	3
2012	—		274		274
2013	—		1,924		1,924
2014	—		5,225		5,225
2015	—		11,762		11,762
2016	—		18,124		18,124
2017	—		16,159		16,159
2018	—		14,139		14,139
2019	—		—		—
2020	—		—		—
Total					$	67,610
Net reserves for loss and loss adjustment expenses from 2011 to 2020					1,695
Net reserves for loss and loss adjustment expenses prior to 2011					348
Retroactive contracts incepting in the year ended December 31, 2018 - net reserves for loss and loss adjustment expenses, end of year					$	2,043


Loss and loss adjustment expenses incurred, net
Accident year	2019		2020		IBNR loss and LAE reserves, net

	Unaudited
2011	$	2,064	$	2,218	$	2,218
2012	1,211		1,286		1,286
2013	1,983		2,152		2,152
2014	4,328		4,750		4,750
2015	6,197		6,815		6,815
2016	10,858		12,106		12,106
2017	12,908		14,309		14,309
2018	16,769		18,544		18,544
2019	35,527		39,913		39,913
2020	—		—		—
Total			$	102,093	$	102,093

Cumulative net loss and loss adjustment expenses paid
Accident year	2019		2020
	Unaudited
2011	$	—	$	—
2012	—		—
2013	—		—
2014	—		—
2015	—		—
2016	—		—
2017	—		—
2018	—		—
2019	—		—
2020	—		—
Total			$	—
Net reserves for loss and loss adjustment expenses from 2011 to 2020			102,093
Net reserves for loss and loss adjustment expenses prior to 2011			2,553
Retroactive contracts incepting in the year ended December 31, 2019 - net reserves for loss and loss adjustment expenses, end of year			$	104,646


Loss and loss adjustment expenses incurred, net
Accident year	2020		IBNR loss and LAE reserves, net

2011	$	184	$	184
2012	177		177
2013	255		255
2014	630		630
2015	811		811
2016	2,089		2,090
2017	2,319		2,319
2018	2,336		2,336
2019	3,337		3,337
2020	7,540		7,541
Total	$	19,678	$	19,680

Cumulative net loss and loss adjustment expenses paid
Accident year	2020

2011	$	—
2012	—
2013	—
2014	—
2015	—
2016	—
2017	—
2018	—
2019	—
2020	—
Total	$	—
Net reserves for loss and loss adjustment expenses from 2011 to 2020	19,678
Net reserves for loss and loss adjustment expenses prior to 2011	10
Retroactive contracts incepting in the year ended December 31, 2020 - net reserves for loss and loss adjustment expenses, end of year	$	19,688


	2020
Prospective reinsurance contracts
Global A&H	$	3,681
Marine & Energy	12,095
Credit	45,553
Casualty	616,013
Other Specialty	263,418
Property Catastrophe Excess Reinsurance	75,848
Property Risk and Pro Rata	59,514
Agriculture	2
Other	2,863
Retroactive reinsurance contracts
Retroactive contracts incepting in the year ended December 31, 2012	—
Retroactive contracts incepting in the year ended December 31, 2013	—
Retroactive contracts incepting in the year ended December 31, 2014	—
Retroactive contracts incepting in the year ended December 31, 2015	29,436
Retroactive contracts incepting in the year ended December 31, 2016	—
Retroactive contracts incepting in the year ended December 31, 2017	54,899
Retroactive contracts incepting in the year ended December 31, 2018	2,043
Retroactive contracts incepting in the year ended December 31, 2019	104,646
Retroactive contracts incepting in the year ended December 31, 2020	19,688
Net reserves for loss and loss adjustment expenses, end of year	1,289,699

Loss and loss adjustment expenses recoverable
Global A&H	—
Marine & Energy	—
Credit	2,373
Casualty	8,982
Other Specialty	—
Property Catastrophe Excess Reinsurance	218
Property Risk and Pro Rata	2,801
Agriculture	1
Other	—
Total loss and loss adjustment expenses recoverable	14,375

Deferred charges on retroactive reinsurance contracts	5,994
Gross reserves for loss and loss adjustment expenses, end of year	$	1,310,068

The Company determined that the disclosure of claim frequency analysis was impracticable. As a result, no claims frequency information has been disclosed. The Company’s business is primarily comprised of reinsurance contracts written on a quota share or aggregate loss basis and the underlying claim count information is not provided for most contracts. Furthermore, even if claim counts were made available by the Company’s cedents, the quota share cession


	Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9
	(Unaudited)
Prospective reinsurance contracts
Global A&H	23.3	%	31.6	%	34.1	%	30.4	%	—	%	—	%	—	%	—	%	—	%
Marine & Energy	—	%	0.9	%	21.6	%	1.8	%	—	%	—	%	—	%	—	%	—	%
Credit	12.7	%	22.2	%	26.9	%	11.6	%	3.1	%	(1.1)	%	(1.4)	%	(1.5)	%	—	%
Casualty	19.2	%	24.2	%	11.8	%	7.8	%	4.9	%	2.1	%	1.9	%	1.1	%	2.0	%
Other Specialty	25.3	%	34.8	%	22.9	%	0.3	%	3.0	%	0.7	%	0.1	%	—	%	—	%
Property Catastrophe Excess Reinsurance	6.8	%	37.8	%	—	%	—	%	—	%	—	%	—	%	—	%	—	%
Property Risk and Pro Rata	47.6	%	29.5	%	10.2	%	5.3	%	3.1	%	1.4	%	1.0	%	0.3	%	—	%
Agriculture	2.7	%	93.8	%	3.5	%	—	%	—	%	—	%	—	%	—	%	—	%
Other	—	%	—	%	—	%	—	%	—	%	—	%	—	%	—	%	—	%
Retroactive reinsurance contracts
Retroactive contracts incepting in the year ended December 31, 2012	n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a
Retroactive contracts incepting in the year ended December 31, 2013	4.4	%	23.7	%	31.4	%	4.6	%	3.4	%	2.6	%	3.3	%	—	%	n/a
Retroactive contracts incepting in the year ended December 31, 2014	—	%	—	%	—	%	—	%	—	%	—	%	—	%	n/a		n/a
Retroactive contracts incepting in the year ended December 31, 2015	—	%	—	%	—	%	—	%	—	%	—	%	n/a		n/a		n/a
Retroactive contracts incepting in the year ended December 31, 2016	n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a
Retroactive contracts incepting in the year ended December 31, 2017	—	%	—	%	—	%	—	%	n/a		n/a		n/a		n/a		n/a
Retroactive contracts incepting in the year ended December 31, 2018	—	%	97.1	%	—	%	n/a		n/a		n/a		n/a		n/a		n/a
Retroactive contracts incepting in the year ended December 31, 2019	—	%	—	%	n/a		n/a		n/a		n/a		n/a		n/a		n/a
Retroactive contracts incepting in the year ended December 31, 2020	—	%	n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a