|
(Mark One)
|
|
☒
|
ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
|
|
22-1867895
|
(State or other jurisdiction of incorporation or organization)
|
|
|
(I.R.S. Employer Identification Number)
|
475 Steamboat Road
|
Greenwich,
|
CT
|
06830
|
(Address of principal executive offices)
|
|
|
(Zip Code)
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
|
|
|
Common Stock, par value $.20 per share
|
WRB
|
New York Stock Exchange
|
5.625% Subordinated Debentures due 2053
|
WRB PRB
|
New York Stock Exchange
|
5.90% Subordinated Debentures due 2056
|
WRB PRC
|
New York Stock Exchange
|
5.75% Subordinated Debentures due 2056
|
WRB PRD
|
New York Stock Exchange
|
5.70% Subordinated Debentures due 2058
|
WRB PRE
|
New York Stock Exchange
|
5.10% Subordinated Debentures due 2059
|
WRB PRF
|
New York Stock Exchange
|
Large accelerated filer
|
☒
|
|
Accelerated filer
|
☐
|
Non-accelerated filer
|
☐
|
|
Smaller reporting company
|
☐
|
|
|
|
Emerging growth company
|
☐
|
|
|
|
|
Page
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|
|||
|
PART I
|
|
|
ITEM
|
1.
|
||
ITEM
|
1A.
|
||
ITEM
|
1B.
|
||
ITEM
|
2.
|
||
ITEM
|
3.
|
||
ITEM
|
4.
|
||
|
|||
|
PART II
|
||
ITEM
|
5.
|
||
ITEM
|
6.
|
||
ITEM
|
7.
|
||
ITEM
|
7A.
|
||
ITEM
|
8.
|
||
ITEM
|
9.
|
||
ITEM
|
9A.
|
||
ITEM
|
9B.
|
||
|
|||
|
PART III
|
|
|
ITEM
|
10.
|
||
ITEM
|
11.
|
||
ITEM
|
12.
|
||
ITEM
|
13.
|
||
ITEM
|
14.
|
||
|
|||
|
PART IV
|
|
|
ITEM
|
15.
|
||
ITEM
|
16.
|
||
EX-4.1
|
|
|
|
EX-21
|
|
|
|
EX-23
|
|
|
|
EX-31.1
|
|
|
|
EX-31.2
|
|
|
|
EX-32.1
|
|
|
|
EX-101
|
|
INSTANCE DOCUMENT
|
|
EX-101
|
|
SCHEMA DOCUMENT
|
|
EX-101
|
|
CALCULATION LINKBASE DOCUMENT
|
|
EX-101
|
|
LABELS LINKBASE DOCUMENT
|
|
EX-101
|
|
PRESENTATION LINKBASE DOCUMENT
|
|
EX-101
|
|
DEFINITION LINKBASE DOCUMENT
|
|
|
This is a “Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995. This document may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Some of the forward-looking statements can be identified by the use of forward-looking words such as “believes,” “expects,” “potential,” “continued,” “may,” “will,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of those words or other comparable words. Any forward-looking statements contained in this report including statements related to our outlook for the industry and for our performance for the year 2020 and beyond, are based upon our historical performance and on current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by us that the future plans, estimates or expectations contemplated by us will be achieved. They are subject to various risks and uncertainties, including but not limited to:
|
•
|
the cyclical nature of the property casualty industry;
|
•
|
the impact of significant competition, including new alternative entrants to the industry;
|
•
|
the long-tail and potentially volatile nature of the insurance and reinsurance business;
|
•
|
product demand and pricing;
|
•
|
claims development and the process of estimating reserves;
|
•
|
investment risks, including those of our portfolio of fixed maturity securities and investments in equity securities, including investments in financial institutions, municipal bonds, mortgage-backed securities, loans receivable, investment funds, including real estate, merger arbitrage, energy related and private equity investments;
|
•
|
the effects of emerging claim and coverage issues;
|
•
|
the uncertain nature of damage theories and loss amounts, including claims for cyber security related risks;
|
•
|
natural and man-made catastrophic losses, including as a result of terrorist activities;
|
•
|
the impact of climate change, which may increase the frequency and severity of catastrophe events;
|
•
|
general economic and market activities, including inflation, interest rates and volatility in the credit and capital markets;
|
•
|
the impact of conditions in the financial markets and the global economy, and the potential effect of legislative, regulatory, accounting or other initiatives taken in response to it, on our results and financial condition;
|
•
|
foreign currency and political risks (including those associated with the United Kingdom's withdrawal from the European Union, or "Brexit") relating to our international operations;
|
•
|
our ability to attract and retain key personnel and qualified employees;
|
•
|
continued availability of capital and financing;
|
•
|
the success of our new ventures or acquisitions and the availability of other opportunities;
|
•
|
the availability of reinsurance;
|
•
|
our retention under the Terrorism Risk Insurance Program Reauthorization Act of 2015 ("TRIPRA");
|
•
|
the ability or willingness of our reinsurers to pay reinsurance recoverables owed to us;
|
•
|
other legislative and regulatory developments, including those related to business practices in the insurance industry;
|
•
|
credit risk relating to our policyholders, independent agents and brokers;
|
•
|
changes in the ratings assigned to us or our insurance company subsidiaries by rating agencies;
|
•
|
the availability of dividends from our insurance company subsidiaries;
|
•
|
potential difficulties with technology and/or cyber security issues;
|
•
|
the effectiveness of our controls to ensure compliance with guidelines, policies and legal and regulatory standards; and
|
•
|
other risks detailed in this Form 10-K and from time to time in our other filings with the Securities and Exchange Commission (“SEC”).
|
•
|
Insurance - predominantly commercial insurance business, including excess and surplus lines, admitted lines and specialty personal lines throughout the United States, as well as insurance business in the United Kingdom, Continental Europe, South America, Canada, Mexico, Scandinavia, Asia and Australia.
|
•
|
Reinsurance & Monoline Excess - reinsurance business on a facultative and treaty basis, primarily in the United States, the United Kingdom, Continental Europe, Australia, the Asia-Pacific region and South Africa, as well as operations that solely retain risk on an excess basis.
|
|
Year Ended December 31,
|
||||||||||||||||||
(In thousands)
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Net premiums written:
|
|
|
|
|
|
|
|
|
|
||||||||||
Insurance
|
$
|
6,086,009
|
|
|
$
|
5,791,905
|
|
|
$
|
5,555,515
|
|
|
$
|
5,597,147
|
|
|
$
|
5,414,261
|
|
Reinsurance & Monoline Excess
|
777,490
|
|
|
641,322
|
|
|
704,993
|
|
|
826,766
|
|
|
775,254
|
|
|||||
Total
|
$
|
6,863,499
|
|
|
$
|
6,433,227
|
|
|
$
|
6,260,508
|
|
|
$
|
6,423,913
|
|
|
$
|
6,189,515
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Percentage of net premiums written:
|
|
|
|
|
|
|
|
|
|
||||||||||
Insurance
|
88.7
|
%
|
|
90.0
|
%
|
|
88.7
|
%
|
|
87.1
|
%
|
|
87.5
|
%
|
|||||
Reinsurance & Monoline Excess
|
11.3
|
|
|
10.0
|
|
|
11.3
|
|
|
12.9
|
|
|
12.5
|
|
|||||
Total
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
Year Ended December 31,
|
||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
Acadia Insurance
|
5.9%
|
|
6.7%
|
|
7.0%
|
|
6.9%
|
|
6.9%
|
Admiral Insurance
|
5.9
|
|
5.8
|
|
5.8
|
|
5.7
|
|
5.0
|
Berkley Accident and Health
|
5.7
|
|
5.7
|
|
4.9
|
|
4.5
|
|
3.8
|
Berkley Agribusiness
|
1.1
|
|
1.2
|
|
1.2
|
|
1.1
|
|
0.9
|
Berkley Alliance Managers
|
3.0
|
|
2.6
|
|
2.0
|
|
1.5
|
|
0.7
|
Berkley Aspire
|
0.4
|
|
0.3
|
|
0.3
|
|
0.3
|
|
0.4
|
Berkley Canada
|
1.0
|
|
1.0
|
|
0.9
|
|
0.8
|
|
0.6
|
Berkley Custom Insurance
|
3.1
|
|
2.7
|
|
2.6
|
|
2.7
|
|
2.9
|
Berkley Cyber Risk Solutions
|
0.3
|
|
0.2
|
|
0.1
|
|
—
|
|
—
|
Berkley Entertainment
|
2.7
|
|
2.6
|
|
2.2
|
|
2.1
|
|
2.0
|
Berkley Environmental
|
4.9
|
|
5.1
|
|
4.7
|
|
4.2
|
|
3.8
|
Berkley FinSecure
|
0.9
|
|
0.9
|
|
1.0
|
|
0.9
|
|
1.0
|
Berkley Fire & Marine
|
0.7
|
|
0.6
|
|
0.5
|
|
0.4
|
|
0.3
|
Berkley Global Product Recall Management
|
0.5
|
|
0.5
|
|
0.3
|
|
0.2
|
|
—
|
Berkley Healthcare
|
1.6
|
|
1.2
|
|
1.1
|
|
1.0
|
|
1.0
|
Berkley Human Services
|
0.8
|
|
0.8
|
|
0.7
|
|
0.7
|
|
0.6
|
Berkley Industrial
|
0.9
|
|
0.9
|
|
0.8
|
|
0.7
|
|
0.8
|
Berkley Insurance Asia
|
0.6
|
|
0.4
|
|
0.2
|
|
—
|
|
—
|
Berkley Insurance Australia
|
1.2
|
|
1.2
|
|
1.0
|
|
1.1
|
|
0.8
|
Berkley Latinoamérica
|
3.6
|
|
4.2
|
|
4.9
|
|
4.2
|
|
4.8
|
Berkley Life Sciences
|
0.7
|
|
0.8
|
|
0.8
|
|
0.8
|
|
0.8
|
Berkley Luxury Group
|
1.3
|
|
1.4
|
|
1.4
|
|
1.3
|
|
1.3
|
Berkley Mid-Atlantic Group
|
1.2
|
|
1.2
|
|
1.1
|
|
1.2
|
|
1.8
|
Berkley Net Underwriters
|
3.0
|
|
5.0
|
|
6.8
|
|
8.2
|
|
4.1
|
Berkley North Pacific
|
0.8
|
|
1.2
|
|
1.5
|
|
1.6
|
|
1.7
|
Berkley Offshore Underwriting Managers
|
1.2
|
|
1.1
|
|
1.1
|
|
1.1
|
|
1.4
|
Berkley Oil & Gas
|
4.1
|
|
3.6
|
|
2.7
|
|
2.8
|
|
3.3
|
Berkley One
|
0.3
|
|
0.2
|
|
—
|
|
—
|
|
—
|
Berkley Professional Liability
|
2.9
|
|
1.9
|
|
1.6
|
|
1.6
|
|
1.8
|
Berkley Program Specialists
|
1.1
|
|
1.1
|
|
1.3
|
|
1.2
|
|
1.2
|
Berkley Public Entity
|
0.4
|
|
0.4
|
|
0.5
|
|
0.5
|
|
0.5
|
Berkley Risk
|
0.3
|
|
0.2
|
|
0.3
|
|
0.2
|
|
4.1
|
Berkley Select
|
2.8
|
|
3.2
|
|
3.5
|
|
4.0
|
|
4.1
|
Berkley Southeast
|
2.0
|
|
2.0
|
|
1.9
|
|
2.0
|
|
2.4
|
Berkley Surety
|
1.2
|
|
1.3
|
|
1.2
|
|
1.2
|
|
1.3
|
Berkley Technology Underwriters
|
0.7
|
|
0.7
|
|
0.7
|
|
0.6
|
|
0.5
|
Carolina Casualty
|
0.7
|
|
0.5
|
|
0.4
|
|
0.6
|
|
1.3
|
Continental Western Group
|
2.6
|
|
3.5
|
|
3.9
|
|
4.1
|
|
4.1
|
Gemini Transportation
|
2.9
|
|
2.3
|
|
2.1
|
|
1.9
|
|
1.1
|
Intrepid Direct
|
0.5
|
|
0.3
|
|
0.1
|
|
—
|
|
—
|
Key Risk
|
2.7
|
|
2.9
|
|
2.8
|
|
2.7
|
|
2.9
|
Nautilus Insurance Group
|
4.8
|
|
5.0
|
|
5.2
|
|
5.1
|
|
4.8
|
Preferred Employers Insurance
|
2.4
|
|
2.5
|
|
2.9
|
|
2.6
|
|
2.5
|
Union Standard
|
2.1
|
|
2.7
|
|
2.8
|
|
2.7
|
|
2.7
|
Vela Insurance Services
|
2.8
|
|
2.6
|
|
3.1
|
|
4.0
|
|
3.4
|
Verus Underwriting Managers
|
0.8
|
|
0.9
|
|
0.9
|
|
0.9
|
|
0.9
|
WRB Europe
|
1.4
|
|
1.9
|
|
1.8
|
|
1.8
|
|
1.9
|
W/R/B Underwriting
|
4.5
|
|
3.5
|
|
3.2
|
|
4.1
|
|
5.6
|
Other
|
3.0
|
|
1.5
|
|
2.2
|
|
2.2
|
|
2.5
|
Total
|
100.0%
|
|
100.0%
|
|
100.0%
|
|
100.0%
|
|
100.0%
|
|
Year Ended December 31,
|
||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
Other liability
|
33.9%
|
|
32.4%
|
|
31.4%
|
|
31.4%
|
|
30.1%
|
Short-tail lines (1)
|
23.5
|
|
23.5
|
|
23.5
|
|
23.6
|
|
24.8
|
Workers' compensation
|
17.8
|
|
20.6
|
|
22.7
|
|
23.4
|
|
23.8
|
Professional liability
|
13.3
|
|
12.0
|
|
11.2
|
|
11.0
|
|
9.7
|
Commercial auto
|
11.5
|
|
11.5
|
|
11.2
|
|
10.6
|
|
11.6
|
Total
|
100.0%
|
|
100.0%
|
|
100.0%
|
|
100.0%
|
|
100.0%
|
(1)
|
Short-tail lines include commercial multi-peril (non-liability), inland marine, accident and health, fidelity and surety, boiler and machinery and other lines.
|
|
Year Ended December 31,
|
|||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|||||
Berkley Re America
|
34.2
|
%
|
|
31.7
|
%
|
|
41.0
|
%
|
|
53.1
|
%
|
|
49.4
|
%
|
Berkley Re Asia Pacific
|
12.0
|
|
|
11.2
|
|
|
9.8
|
|
|
8.3
|
|
|
12.6
|
|
Berkley Re Solutions
|
12.2
|
|
|
10.7
|
|
|
10.0
|
|
|
7.6
|
|
|
6.6
|
|
Berkley Re UK
|
15.3
|
|
|
16.8
|
|
|
12.3
|
|
|
9.0
|
|
|
8.3
|
|
Lloyd's Syndicate 2791 Participation
|
4.8
|
|
|
5.1
|
|
|
4.3
|
|
|
3.7
|
|
|
4.2
|
|
Midwest Employers Casualty
|
21.5
|
|
|
24.5
|
|
|
22.0
|
|
|
17.8
|
|
|
18.9
|
|
Other
|
—
|
|
|
—
|
|
|
0.6
|
|
|
0.5
|
|
|
—
|
|
Total
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
Year Ended December 31,
|
|||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|||||
Casualty
|
55.7
|
%
|
|
53.0
|
%
|
|
52.2
|
%
|
|
47.9
|
%
|
|
52.6
|
%
|
Property
|
22.8
|
%
|
|
22.5
|
%
|
|
25.8
|
%
|
|
34.3
|
%
|
|
28.5
|
%
|
Monoline Excess
|
21.5
|
%
|
|
24.5
|
%
|
|
22.0
|
%
|
|
17.8
|
%
|
|
18.9
|
%
|
Total
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
Year Ended December 31,
|
||||||||||||||||||
(In thousands)
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Insurance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Revenue
|
$
|
6,397,074
|
|
|
$
|
6,208,290
|
|
|
$
|
6,003,130
|
|
|
$
|
5,935,268
|
|
|
$
|
5,664,654
|
|
Income before income taxes
|
814,862
|
|
|
717,154
|
|
|
623,746
|
|
|
671,347
|
|
|
658,748
|
|
|||||
Reinsurance & Monoline Excess
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue
|
877,551
|
|
|
848,966
|
|
|
922,478
|
|
|
990,065
|
|
|
957,125
|
|
|||||
Income before income taxes
|
189,188
|
|
|
201,001
|
|
|
117,131
|
|
|
226,069
|
|
|
212,697
|
|
|||||
Other (1)
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue
|
627,571
|
|
|
634,395
|
|
|
759,156
|
|
|
728,851
|
|
|
584,678
|
|
|||||
(Loss) income before income taxes
|
(151,130
|
)
|
|
(106,061
|
)
|
|
31,893
|
|
|
(978
|
)
|
|
(139,415
|
)
|
|||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Revenue
|
$
|
7,902,196
|
|
|
$
|
7,691,651
|
|
|
$
|
7,684,764
|
|
|
$
|
7,654,184
|
|
|
$
|
7,206,457
|
|
Income before income taxes
|
$
|
852,920
|
|
|
$
|
812,094
|
|
|
$
|
772,770
|
|
|
$
|
896,438
|
|
|
$
|
732,030
|
|
(1)
|
Represents corporate revenues and expenses, net investment gains and losses, and revenues and expenses from non-insurance businesses that are consolidated for financial reporting purposes.
|
|
Year Ended December 31,
|
|||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|||||
Insurance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss ratio
|
62.4
|
%
|
|
62.5
|
%
|
|
62.5
|
%
|
|
61.9
|
%
|
|
60.9
|
%
|
Expense ratio
|
31.1
|
|
|
32.6
|
|
|
33.0
|
|
|
32.5
|
|
|
32.6
|
|
Combined ratio
|
93.5
|
%
|
|
95.1
|
%
|
|
95.5
|
%
|
|
94.4
|
%
|
|
93.5
|
%
|
Reinsurance & Monoline Excess
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Loss ratio
|
61.5
|
%
|
|
61.0
|
%
|
|
70.0
|
%
|
|
55.7
|
%
|
|
57.7
|
%
|
Expense ratio
|
35.0
|
|
|
35.8
|
|
|
35.7
|
|
|
37.8
|
|
|
37.1
|
|
Combined ratio
|
96.5
|
%
|
|
96.8
|
%
|
|
105.7
|
%
|
|
93.5
|
%
|
|
94.8
|
%
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Loss ratio
|
62.3
|
%
|
|
62.4
|
%
|
|
63.4
|
%
|
|
61.1
|
%
|
|
60.5
|
%
|
Expense ratio
|
31.5
|
|
|
32.9
|
|
|
33.3
|
|
|
33.2
|
|
|
33.2
|
|
Combined ratio
|
93.8
|
%
|
|
95.3
|
%
|
|
96.7
|
%
|
|
94.3
|
%
|
|
93.7
|
%
|
|
Year Ended December 31,
|
||||||||||||||||||
(In thousands)
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Average investments, at cost (1)
|
$
|
19,145,567
|
|
|
$
|
18,392,297
|
|
|
$
|
17,530,590
|
|
|
$
|
16,730,964
|
|
|
$
|
15,970,931
|
|
Net investment income (1)
|
$
|
645,614
|
|
|
$
|
674,235
|
|
|
$
|
575,788
|
|
|
$
|
564,163
|
|
|
$
|
512,645
|
|
Percent earned on average investments (1)
|
3.4
|
%
|
|
3.7
|
%
|
|
3.3
|
%
|
|
3.4
|
%
|
|
3.2
|
%
|
|||||
Net realized and unrealized gains on investments (2)
|
$
|
120,703
|
|
|
$
|
154,488
|
|
|
$
|
335,858
|
|
|
$
|
267,005
|
|
|
$
|
92,324
|
|
Change in unrealized investment gains (losses) (3)
|
$
|
261,970
|
|
|
$
|
(302,737
|
)
|
|
$
|
(69,425
|
)
|
|
$
|
371,715
|
|
|
$
|
(192,186
|
)
|
(1)
|
Includes investments, cash and cash equivalents, trading accounts receivable from brokers and clearing organizations, trading account securities sold but not yet purchased and unsettled purchases.
|
(2)
|
Represents realized gains on investments not classified as trading account securities prior to 2018. The inclusion of change in unrealized gains on equity securities within net income commenced January 1, 2018 due to our adoption of ASU 2016-01. The twelve months ended December 31, 2019 includes net realized gains on investment sales of $36 million and increased by a change in unrealized gains on equity securities of $85 million. The twelve months ended December 31, 2018 includes net realized gains on investment sales of $480 million reduced by a change in unrealized gains on equity securities of $320 million as well as $6 million in other-than-temporary impairments.
|
(3)
|
Represents the change in unrealized investment gains (losses) for available for sale securities recognized in stockholders' equity. Effective January 1, 2018, the Company adopted accounting guidance that requires all equity investments with readily determinable fair values (subject to certain exceptions) to be measured at fair value with changes in the fair value recognized in net income. As a result of this guidance, the Company recorded a cumulative effect adjustment of $291 million that increased retained earnings and decreased accumulated other comprehensive income ("AOCI"), resulting in no net impact to total stockholders' equity.
|
|
Year Ended December 31,
|
|||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|||||
Barclays U.S. Aggregate Bond Index
|
3.2
|
%
|
|
3.0
|
%
|
|
3.0
|
%
|
|
3.0
|
%
|
|
3.0
|
%
|
S&P 500® Index
|
2.3
|
|
|
2.0
|
|
|
2.4
|
|
|
2.4
|
|
|
2.1
|
|
|
Year Ended December 31,
|
|||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|||||
1 year or less
|
6.5
|
%
|
|
6.9
|
%
|
|
5.0
|
%
|
|
7.9
|
%
|
|
5.8
|
%
|
Over 1 year through 5 years
|
35.9
|
|
|
34.3
|
|
|
37.2
|
|
|
39.6
|
|
|
33.6
|
|
Over 5 years through 10 years
|
24.7
|
|
|
22.3
|
|
|
24.8
|
|
|
24.6
|
|
|
30.5
|
|
Over 10 years
|
21.4
|
|
|
24.7
|
|
|
23.3
|
|
|
18.8
|
|
|
20.3
|
|
Mortgage-backed securities
|
11.5
|
|
|
11.8
|
|
|
9.7
|
|
|
9.1
|
|
|
9.8
|
|
Total
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
(In thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Net reserves at beginning of year
|
$
|
10,248,883
|
|
|
$
|
10,056,914
|
|
|
$
|
9,590,265
|
|
Net provision for losses and loss expenses:
|
|
|
|
|
|
|
|
||||
Claims occurring during the current year (1)
|
4,057,989
|
|
|
3,926,489
|
|
|
3,963,543
|
|
|||
Increase (decrease) in estimates for claims occurring in prior years (2)
|
34,079
|
|
|
6,831
|
|
|
(5,165
|
)
|
|||
Loss reserve discount amortization
|
39,048
|
|
|
41,382
|
|
|
43,970
|
|
|||
Total
|
4,131,116
|
|
|
3,974,702
|
|
|
4,002,348
|
|
|||
Net payments for claims:
|
|
|
|
|
|
|
|
||||
Current year
|
985,599
|
|
|
964,808
|
|
|
1,027,405
|
|
|||
Prior years
|
2,673,803
|
|
|
2,700,077
|
|
|
2,562,550
|
|
|||
Total
|
3,659,402
|
|
|
3,664,885
|
|
|
3,589,955
|
|
|||
Foreign currency translation
|
(22,599
|
)
|
|
(117,848
|
)
|
|
54,256
|
|
|||
Net reserves at end of year
|
10,697,998
|
|
|
10,248,883
|
|
|
10,056,914
|
|
|||
Ceded reserves at end of year
|
1,885,251
|
|
|
1,717,565
|
|
|
1,613,494
|
|
|||
Gross reserves at end of year
|
$
|
12,583,249
|
|
|
$
|
11,966,448
|
|
|
$
|
11,670,408
|
|
|
|
|
|
|
|
||||||
Net change in premiums and losses occurring in prior years:
|
|
|
|
|
|
||||||
(Increase) decrease in estimates for claims occurring in prior years (2)
|
$
|
(34,079
|
)
|
|
$
|
(6,831
|
)
|
|
$
|
5,165
|
|
Retrospective premium adjustments for claims occurring in prior years (3)
|
53,511
|
|
|
45,638
|
|
|
32,162
|
|
|||
Net favorable premium and reserve development on prior years
|
$
|
19,432
|
|
|
$
|
38,807
|
|
|
$
|
37,327
|
|
(1)
|
Claims occurring during the current year are net of loss reserve discounts of $20 million, $24 million and $22 million in 2019, 2018 and 2017, respectively.
|
(2)
|
The change in estimates for claims occurring in prior years is net of loss reserve discount. On an undiscounted basis, the estimates for claims occurring in prior years increased by $19 million in 2019, and decreased by $4 million in 2018 and $32 million in 2017, respectively.
|
(3)
|
For certain retrospectively rated insurance polices and reinsurance agreements, changes in loss and loss expenses for prior years are offset by additional or return premiums.
|
(1)
|
For statutory purposes, the Company discounts its workers’ compensation reinsurance reserves at 3.3% as prescribed or permitted by the Department of Insurance of the State of Delaware. In its GAAP financial statements, the Company discounts excess workers’ compensation reserves at the risk-free rate and assumed workers’ compensation reserves at the statutory rate.
|
•
|
regularly, no less than annually, conduct an ORSA to assess the adequacy of our risk management framework, and current and estimated projected future solvency position;
|
•
|
internally document the process and results of the assessment; and
|
•
|
provide a confidential high-level ORSA Summary Report annually to the Commissioner of Insurance of the State of Delaware (our lead state commissioner).
|
•
|
judicial expansion of policy coverage and a greater propensity to grant claimants more favorable amounts and the impact of new theories of liability;
|
•
|
plaintiffs targeting property and casualty insurers, including us, in purported class action litigation relating to claims-handling and other practices;
|
•
|
social inflation trends, including higher and more frequent claims, more favorable judgments and legislated increases;
|
•
|
medical developments that link health issues to particular causes, resulting in liability claims;
|
•
|
claims relating to unanticipated consequences of current or new technologies, including cyber security related risks;
|
•
|
claims relating to potentially changing climate conditions; and
|
•
|
increased claims due to third party funding of litigation.
|
•
|
standards of solvency, including risk-based capital measurements;
|
•
|
restrictions on the nature, quality and concentration of investments;
|
•
|
requirements pertaining to certain methods of accounting;
|
•
|
evaluating enterprise risk to an insurer;
|
•
|
rate and form regulation pertaining to certain of our insurance businesses;
|
•
|
potential assessments for the provision of funds necessary for the settlement of covered claims under certain policies provided by impaired, insolvent or failed insurance companies; and
|
•
|
involvement in the payment or adjudication of catastrophe or other claims beyond the terms of the policies.
|
•
|
our classified board of directors and the ability of our board to increase its size and to appoint directors to fill newly created directorships;
|
•
|
the requirement that 80% of our stockholders must approve mergers and other transactions between us and the holder of 5% or more of our shares, unless the transaction was approved by our board of directors prior to such holder's acquisition of 5% of our shares; and
|
•
|
the need for advance notice in order to raise business or make nominations at stockholders' meetings.
|
|
|
2014
|
2015
|
2016
|
2017
|
2018
|
2019
|
W. R. Berkley Corporation
|
Cum $
|
100.00
|
107.76
|
134.43
|
148.11
|
154.95
|
222.86
|
S&P 500 Index - Total Returns
|
Cum $
|
100.00
|
101.38
|
113.51
|
138.29
|
132.22
|
173.84
|
S&P 500 Property and Casualty Insurance Index
|
Cum $
|
100.00
|
109.53
|
126.73
|
155.10
|
147.83
|
186.07
|
|
Total Number of
Shares Purchased |
|
Average Price
Paid per Share |
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
|
Maximum Number of Shares that may yet be Purchased Under the Plans or Programs
|
||||
October 2019
|
—
|
|
|
—
|
|
|
—
|
|
|
13,367,095
|
|
November 2019
|
51,163
|
|
|
67.77
|
|
|
51,163
|
|
|
13,315,932
|
|
December 2019
|
217,909
|
|
|
67.72
|
|
|
217,909
|
|
|
13,098,023
|
|
|
As of and for the Year Ended December 31,
|
||||||||||||||||||
(In thousands, except per share data)
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Net premiums written
|
$
|
6,863,499
|
|
|
$
|
6,433,227
|
|
|
$
|
6,260,508
|
|
|
$
|
6,423,913
|
|
|
$
|
6,189,515
|
|
Net premiums earned
|
6,633,288
|
|
|
6,371,505
|
|
|
6,311,419
|
|
|
6,293,348
|
|
|
6,040,609
|
|
|||||
Net investment income
|
645,614
|
|
|
674,235
|
|
|
575,788
|
|
|
564,163
|
|
|
512,645
|
|
|||||
Net realized and unrealized gains on investments
|
120,703
|
|
|
154,488
|
|
|
335,858
|
|
|
267,005
|
|
|
92,324
|
|
|||||
Revenues from non-insurance businesses
|
406,541
|
|
|
372,985
|
|
|
326,165
|
|
|
390,348
|
|
|
421,102
|
|
|||||
Insurance service fees
|
92,680
|
|
|
117,757
|
|
|
134,729
|
|
|
138,944
|
|
|
139,440
|
|
|||||
Total revenues
|
7,902,196
|
|
|
7,691,651
|
|
|
7,684,764
|
|
|
7,654,184
|
|
|
7,206,457
|
|
|||||
Interest expense
|
153,409
|
|
|
157,185
|
|
|
147,297
|
|
|
140,896
|
|
|
130,946
|
|
|||||
Income before income taxes
|
852,920
|
|
|
812,094
|
|
|
772,770
|
|
|
896,438
|
|
|
732,030
|
|
|||||
Income tax expense
|
(168,935
|
)
|
|
(163,028
|
)
|
|
(219,433
|
)
|
|
(292,953
|
)
|
|
(227,923
|
)
|
|||||
Noncontrolling interests
|
(2,041
|
)
|
|
(8,317
|
)
|
|
(4,243
|
)
|
|
(1,569
|
)
|
|
(413
|
)
|
|||||
Net income to common stockholders
|
681,944
|
|
|
640,749
|
|
|
549,094
|
|
|
601,916
|
|
|
503,694
|
|
|||||
Data per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net income per basic share
|
3.58
|
|
|
3.37
|
|
|
2.93
|
|
|
3.27
|
|
|
2.71
|
|
|||||
Net income per diluted share
|
3.52
|
|
|
3.33
|
|
|
2.84
|
|
|
3.12
|
|
|
2.58
|
|
|||||
Common stockholders’ equity
|
33.12
|
|
|
29.72
|
|
|
29.69
|
|
|
27.76
|
|
|
24.87
|
|
|||||
Cash dividends declared
|
1.73
|
|
|
1.39
|
|
|
1.03
|
|
|
1.01
|
|
|
0.31
|
|
|||||
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic
|
190,722
|
|
|
190,048
|
|
|
187,265
|
|
|
183,977
|
|
|
186,060
|
|
|||||
Diluted
|
193,521
|
|
|
192,395
|
|
|
193,527
|
|
|
192,830
|
|
|
195,284
|
|
|||||
Investments
|
$
|
18,473,674
|
|
|
$
|
17,723,089
|
|
|
$
|
17,450,508
|
|
|
$
|
16,649,792
|
|
|
$
|
15,351,467
|
|
Total assets
|
26,643,428
|
|
|
24,895,977
|
|
|
24,299,917
|
|
|
23,364,844
|
|
|
21,730,967
|
|
|||||
Reserves for losses and loss expenses
|
12,583,249
|
|
|
11,966,448
|
|
|
11,670,408
|
|
|
11,197,195
|
|
|
10,669,150
|
|
|||||
Senior notes and other debt
|
1,427,575
|
|
|
1,882,028
|
|
|
1,769,052
|
|
|
1,760,595
|
|
|
1,844,621
|
|
|||||
Subordinated debentures
|
1,198,704
|
|
|
907,491
|
|
|
728,218
|
|
|
727,630
|
|
|
340,320
|
|
|||||
Common stockholders’ equity
|
6,074,939
|
|
|
5,437,851
|
|
|
5,411,344
|
|
|
5,047,208
|
|
|
4,600,246
|
|
(In thousands)
|
2019
|
|
2018
|
||||
Insurance
|
$
|
8,193,381
|
|
|
$
|
7,727,447
|
|
Reinsurance & Monoline Excess
|
2,504,617
|
|
|
2,521,436
|
|
||
Net reserves for losses and loss expenses
|
10,697,998
|
|
|
10,248,883
|
|
||
Ceded reserves for losses and loss expenses
|
1,885,251
|
|
|
1,717,565
|
|
||
Gross reserves for losses and loss expenses
|
$
|
12,583,249
|
|
|
$
|
11,966,448
|
|
(In thousands)
|
Reported Case
Reserves
|
|
Incurred But
Not Reported
|
|
Total
|
||||||
December 31, 2019
|
|
|
|
|
|
||||||
Other liability
|
$
|
1,421,378
|
|
|
$
|
2,522,957
|
|
|
$
|
3,944,335
|
|
Workers’ compensation (1)
|
918,619
|
|
|
964,102
|
|
|
1,882,721
|
|
|||
Professional liability
|
399,411
|
|
|
713,433
|
|
|
1,112,844
|
|
|||
Commercial automobile
|
412,036
|
|
|
300,339
|
|
|
712,375
|
|
|||
Short-tail lines (2)
|
271,192
|
|
|
269,914
|
|
|
541,106
|
|
|||
Total Insurance
|
3,422,636
|
|
|
4,770,745
|
|
|
8,193,381
|
|
|||
Reinsurance & Monoline Excess (1)
|
1,469,363
|
|
|
1,035,254
|
|
|
2,504,617
|
|
|||
Total
|
$
|
4,891,999
|
|
|
$
|
5,805,999
|
|
|
$
|
10,697,998
|
|
December 31, 2018
|
|
|
|
|
|
||||||
Other liability
|
$
|
1,307,068
|
|
|
$
|
2,329,659
|
|
|
$
|
3,636,727
|
|
Workers’ compensation (1)
|
962,664
|
|
|
955,711
|
|
|
1,918,375
|
|
|||
Professional liability
|
306,018
|
|
|
659,596
|
|
|
965,614
|
|
|||
Commercial automobile
|
365,253
|
|
|
290,217
|
|
|
655,470
|
|
|||
Short-tail lines (2)
|
294,122
|
|
|
257,139
|
|
|
551,261
|
|
|||
Total Insurance
|
3,235,125
|
|
|
4,492,322
|
|
|
7,727,447
|
|
|||
Reinsurance & Monoline Excess (1) (3)
|
1,479,604
|
|
|
1,041,832
|
|
|
2,521,436
|
|
|||
Total
|
$
|
4,714,729
|
|
|
$
|
5,534,154
|
|
|
$
|
10,248,883
|
|
(1)
|
Reserves for excess and assumed workers’ compensation business are net of an aggregate net discount of $530 million and $563 million as of December 31, 2019 and 2018, respectively.
|
(2)
|
Short-tail lines include commercial multi-peril (non-liability), inland marine, accident and health, fidelity and surety, boiler and machinery and other lines.
|
(3)
|
Reinsurance & Monoline Excess includes property and casualty reinsurance as well as operations that solely retain risk on an excess basis.
|
(In thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
(Increase) decrease in prior year loss reserves
|
$
|
(34,079
|
)
|
|
$
|
(6,831
|
)
|
|
$
|
5,165
|
|
Increase in prior year earned premiums
|
53,511
|
|
|
45,638
|
|
|
32,162
|
|
|||
Net favorable prior year development
|
$
|
19,432
|
|
|
$
|
38,807
|
|
|
$
|
37,327
|
|
($ in thousands)
|
Number of
Securities
|
|
Aggregate
Fair Value
|
|
Unrealized
Loss
|
|||||
Unrealized loss less than 20% of amortized cost
|
480
|
|
|
$
|
3,259,888
|
|
|
$
|
41,541
|
|
Unrealized loss of 20% or greater of amortized cost:
|
|
|
|
|
|
|||||
Less than twelve months
|
16
|
|
|
21,171
|
|
|
32,311
|
|
||
Twelve months and longer
|
13
|
|
|
60,173
|
|
|
62,534
|
|
||
Total
|
509
|
|
|
$
|
3,341,232
|
|
|
$
|
136,386
|
|
($ in thousands)
|
Number of
Securities
|
|
Aggregate
Fair Value
|
|
Unrealized
Loss
|
|||||
Foreign government
|
21
|
|
|
$
|
79,747
|
|
|
$
|
92,369
|
|
Corporate
|
14
|
|
|
65,710
|
|
|
4,319
|
|
||
Asset-backed securities
|
5
|
|
|
437
|
|
|
113
|
|
||
Mortgage-backed securities
|
5
|
|
|
954
|
|
|
17
|
|
||
Total
|
45
|
|
|
$
|
146,848
|
|
|
$
|
96,818
|
|
(In thousands)
|
Carrying
Value
|
|
Percent
of Total
|
|||
Pricing source:
|
|
|
|
|||
Independent pricing services
|
$
|
13,812,689
|
|
|
98.0
|
%
|
Syndicate manager
|
33,716
|
|
|
0.2
|
|
|
Directly by the Company based on:
|
|
|
|
|||
Observable data
|
255,873
|
|
|
1.8
|
|
|
Total
|
$
|
14,102,278
|
|
|
100.0
|
%
|
(In thousands)
|
2019
|
|
2018
|
||||
Insurance
|
|
|
|
||||
Gross premiums written
|
$
|
7,398,573
|
|
|
$
|
6,980,202
|
|
Net premiums written
|
6,086,009
|
|
|
5,791,905
|
|
||
Net premiums earned
|
5,919,819
|
|
|
5,702,073
|
|
||
Loss ratio
|
62.4
|
%
|
|
62.5
|
%
|
||
Expense ratio
|
31.1
|
|
|
32.6
|
|
||
GAAP combined ratio
|
93.5
|
|
|
95.1
|
|
||
Reinsurance & Monoline Excess
|
|
|
|
||||
Gross premiums written
|
$
|
863,646
|
|
|
$
|
722,292
|
|
Net premiums written
|
777,490
|
|
|
641,322
|
|
||
Net premiums earned
|
713,469
|
|
|
669,432
|
|
||
Loss ratio
|
61.5
|
%
|
|
61.0
|
%
|
||
Expense ratio
|
35.0
|
|
|
35.8
|
|
||
GAAP combined ratio
|
96.5
|
|
|
96.8
|
|
||
Consolidated
|
|
|
|
||||
Gross premiums written
|
$
|
8,262,219
|
|
|
$
|
7,702,494
|
|
Net premiums written
|
6,863,499
|
|
|
6,433,227
|
|
||
Net premiums earned
|
6,633,288
|
|
|
6,371,505
|
|
||
Loss ratio
|
62.3
|
%
|
|
62.4
|
%
|
||
Expense ratio
|
31.5
|
|
|
32.9
|
|
||
GAAP combined ratio
|
93.8
|
|
|
95.3
|
|
(In thousands, except per share data)
|
2019
|
|
2018
|
||||
Net income to common stockholders
|
$
|
681,944
|
|
|
$
|
640,749
|
|
Weighted average diluted shares
|
193,521
|
|
|
192,395
|
|
||
Net income per diluted share
|
$
|
3.52
|
|
|
$
|
3.33
|
|
•
|
Insurance gross premiums increased 6% to $7,398 million in 2019 from $6,980 million in 2018. Gross premiums increased $250 million (11%) for other liability, $146 million (17%) for professional liability, $96 million (6%) for short-tail lines and $50 million (6%) for commercial auto, and decreased $124 million (9%) for workers' compensation.
|
•
|
Reinsurance & Monoline Excess gross premiums increased 20% to $864 million in 2019 from $722 million in 2018. Gross premiums written increased $99 million (26%) for casualty lines, $34 million (21%) for property lines, and $9 million (5%) for monoline excess.
|
|
Amount
|
|
Average Annualized
Yield
|
||||||||||
(In thousands)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||
Fixed maturity securities, including cash and cash equivalents and loans receivable
|
$
|
517,925
|
|
|
$
|
519,269
|
|
|
3.4
|
%
|
|
3.6
|
%
|
Investment funds
|
69,194
|
|
|
109,349
|
|
|
5.2
|
|
|
8.8
|
|
||
Arbitrage trading account
|
34,585
|
|
|
28,157
|
|
|
7.8
|
|
|
4.7
|
|
||
Real estate
|
24,218
|
|
|
18,591
|
|
|
1.2
|
|
|
1.0
|
|
||
Equity securities
|
5,439
|
|
|
3,230
|
|
|
2.0
|
|
|
1.4
|
|
||
Gross investment income
|
651,361
|
|
|
678,596
|
|
|
3.4
|
|
|
3.7
|
|
||
Investment expenses
|
(5,747
|
)
|
|
(4,361
|
)
|
|
—
|
|
|
—
|
|
||
Total
|
$
|
645,614
|
|
|
$
|
674,235
|
|
|
3.4
|
%
|
|
3.7
|
%
|
•
|
Insurance - The loss ratio of 62.4% in 2019 was 0.1 points lower than the loss ratio of 62.5% in 2018. Catastrophe losses were $68 million in 2019 compared with $76 million in 2018. Favorable prior year reserve development was $21 million in 2019 compared with $19 million in 2018. The loss ratio excluding catastrophe losses and prior year reserve development increased 0.1 points to 61.6% in 2019 from 61.5% in 2018.
|
•
|
Reinsurance & Monoline Excess - The loss ratio of 61.5% in 2019 was 0.5 points higher than the loss ratio of 61.0% in 2018. Catastrophe losses were $22 million in 2019 compared with $30 million in 2018. Adverse prior year reserve development was $2 million in 2019 compared with favorable prior year reserve development of $20 million in 2018. The loss ratio excluding catastrophe losses and prior year reserve development decreased 1.5 points to 58.1% in 2019 from 59.6% in 2018.
|
(In thousands)
|
2019
|
|
2018
|
||||
Policy acquisition and insurance operating expenses
|
$
|
2,090,301
|
|
|
$
|
2,098,881
|
|
Insurance service expenses
|
101,317
|
|
|
118,357
|
|
||
Net foreign currency gains
|
(30,715
|
)
|
|
(27,067
|
)
|
||
Other costs and expenses
|
201,179
|
|
|
193,050
|
|
||
Total
|
$
|
2,362,082
|
|
|
$
|
2,383,221
|
|
(In thousands)
|
2018
|
|
2017
|
||||
Insurance
|
|
|
|
||||
Gross premiums written
|
$
|
6,980,202
|
|
|
$
|
6,699,171
|
|
Net premiums written
|
5,791,905
|
|
|
5,555,515
|
|
||
Net premiums earned
|
5,702,073
|
|
|
5,549,403
|
|
||
Loss ratio
|
62.5
|
%
|
|
62.5
|
%
|
||
Expense ratio
|
32.6
|
|
|
33.0
|
|
||
GAAP combined ratio
|
95.1
|
|
|
95.5
|
|
||
Reinsurance & Monoline Excess
|
|
|
|
||||
Gross premiums written
|
$
|
722,292
|
|
|
$
|
777,792
|
|
Net premiums written
|
641,322
|
|
|
704,993
|
|
||
Net premiums earned
|
669,432
|
|
|
762,016
|
|
||
Loss ratio
|
61.0
|
%
|
|
70.0
|
%
|
||
Expense ratio
|
35.8
|
|
|
35.7
|
|
||
GAAP combined ratio
|
96.8
|
|
|
105.7
|
|
||
Consolidated
|
|
|
|
||||
Gross premiums written
|
$
|
7,702,494
|
|
|
$
|
7,476,963
|
|
Net premiums written
|
6,433,227
|
|
|
6,260,508
|
|
||
Net premiums earned
|
6,371,505
|
|
|
6,311,419
|
|
||
Loss ratio
|
62.4
|
%
|
|
63.4
|
%
|
||
Expense ratio
|
32.9
|
|
|
33.3
|
|
||
GAAP combined ratio
|
95.3
|
|
|
96.7
|
|
(In thousands, except per share data)
|
2018
|
|
2017
|
||||
Net income to common stockholders
|
$
|
640,749
|
|
|
$
|
549,094
|
|
Weighted average diluted shares
|
192,395
|
|
|
193,527
|
|
||
Net income per diluted share
|
$
|
3.33
|
|
|
$
|
2.84
|
|
•
|
Insurance gross premiums increased 4% to $6,980 million in 2018 from $6,699 million in 2017. Gross premiums increased $157 million (7%) for other liability, $87 million (12%) for professional liability, $64 million (4%) for short-tail lines and $54 million (7%) for commercial auto, and decreased $81 million (5%) for workers' compensation.
|
•
|
Reinsurance & Monoline Excess gross premiums decreased 7% to $722 million in 2018 from $778 million in 2017. Gross premiums written decreased $38 million (19%) for property lines and $24 million (6%) for casualty lines and increased $6 million (4%) for monoline excess.
|
|
Amount
|
|
Average Annualized
Yield
|
||||||||||
(In thousands)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||
Fixed maturity securities, including cash and cash equivalents and loans receivable
|
$
|
519,269
|
|
|
$
|
473,101
|
|
|
3.6
|
%
|
|
3.3
|
%
|
Investment funds
|
109,349
|
|
|
68,169
|
|
|
8.8
|
|
|
5.7
|
|
||
Arbitrage trading account
|
28,157
|
|
|
19,145
|
|
|
4.7
|
|
|
3.6
|
|
||
Real estate
|
18,591
|
|
|
19,975
|
|
|
1.0
|
|
|
1.5
|
|
||
Equity securities
|
3,230
|
|
|
2,350
|
|
|
1.4
|
|
|
1.1
|
|
||
Gross investment income
|
678,596
|
|
|
582,740
|
|
|
3.7
|
|
|
3.3
|
|
||
Investment expenses
|
(4,361
|
)
|
|
(6,952
|
)
|
|
—
|
|
|
—
|
|
||
Total
|
$
|
674,235
|
|
|
$
|
575,788
|
|
|
3.7
|
%
|
|
3.3
|
%
|
•
|
Insurance - The loss ratio was 62.5% in both 2018 and 2017. Catastrophe losses were $76 million in 2018 compared with $107 million in 2017. Favorable prior year reserve development was $19 million in 2018 compared with $30 million in 2017. The loss ratio excluding catastrophe losses and prior year reserve development increased 0.4 points to 61.5% in 2018 from 61.1% in 2017.
|
•
|
Reinsurance & Monoline Excess - The loss ratio of 61.0% in 2018 was 9.0 points lower than the loss ratio of 70.0% in 2017. Catastrophe losses were $29 million in 2018 compared with $77 million in 2017. Favorable prior year reserve development was $20 million in 2018 compared with $7 million in 2017. The loss ratio excluding catastrophe losses and prior year reserve development decreased 1.1 points to 59.6% in 2018 from 60.7% in 2017.
|
(In thousands)
|
2018
|
|
2017
|
||||
Policy acquisition and insurance operating expenses
|
$
|
2,098,881
|
|
|
$
|
2,101,024
|
|
Insurance service expenses
|
118,357
|
|
|
129,776
|
|
||
Net foreign currency (gains) losses
|
(27,067
|
)
|
|
15,267
|
|
||
Other costs and expenses
|
193,050
|
|
|
190,865
|
|
||
Total
|
$
|
2,383,221
|
|
|
$
|
2,436,932
|
|
($ in thousands)
|
Carrying
Value
|
|
Percent
of Total
|
|||
Fixed maturity securities:
|
|
|
|
|||
U.S. government and government agencies
|
$
|
786,931
|
|
|
4.0
|
%
|
State and municipal:
|
|
|
|
|||
Special revenue
|
2,422,700
|
|
|
12.4
|
|
|
Local general obligation
|
469,855
|
|
|
2.4
|
|
|
State general obligation
|
421,704
|
|
|
2.2
|
|
|
Pre-refunded (1)
|
390,126
|
|
|
2.0
|
|
|
Corporate backed
|
261,559
|
|
|
1.3
|
|
|
Total state and municipal
|
3,965,944
|
|
|
20.3
|
|
|
Mortgage-backed securities:
|
|
|
|
|||
Agency
|
859,043
|
|
|
4.4
|
|
|
Residential-Prime
|
432,418
|
|
|
2.2
|
|
|
Commercial
|
309,374
|
|
|
1.6
|
|
|
Residential-Alt A
|
33,130
|
|
|
0.2
|
|
|
Total mortgage-backed securities
|
1,633,965
|
|
|
8.3
|
|
|
Asset-backed securities
|
2,790,630
|
|
|
14.3
|
|
|
Corporate:
|
|
|
|
|||
Industrial
|
2,329,173
|
|
|
12.0
|
|
|
Financial
|
1,481,152
|
|
|
7.6
|
|
|
Utilities
|
340,641
|
|
|
1.7
|
|
|
Other
|
5,449
|
|
|
—
|
|
|
Total corporate
|
4,156,415
|
|
|
21.3
|
|
|
Foreign government
|
847,076
|
|
|
4.3
|
|
|
Total fixed maturity securities
|
14,180,961
|
|
|
72.6
|
|
|
Equity securities available for sale:
|
|
|
|
|||
Preferred stocks
|
313,815
|
|
|
1.6
|
|
|
Common stocks
|
166,805
|
|
|
0.9
|
|
|
Total equity securities available for sale
|
480,620
|
|
|
2.5
|
|
|
Real estate
|
2,105,950
|
|
|
10.8
|
|
|
Investment funds
|
1,213,535
|
|
|
6.2
|
|
|
Cash and cash equivalents
|
1,023,710
|
|
|
5.3
|
|
|
Arbitrage trading account
|
400,809
|
|
|
2.1
|
|
|
Loans receivable
|
91,799
|
|
|
0.5
|
|
|
Total investments
|
$
|
19,497,384
|
|
|
100.0
|
%
|
(1)
|
Pre-refunded securities are securities for which an escrow account has been established to fund the remaining payments of principal and interest through maturity. Such escrow accounts are funded almost exclusively with U.S. Treasury and U.S. government agency securities.
|
•
|
Property reinsurance treaties - The Company purchases property reinsurance to reduce its exposure to large individual property losses and catastrophe events. Following is a summary of significant property reinsurance treaties in effect as of January 1, 2020: The Company’s property per risk reinsurance generally covers losses between $2.5 million and $60 million. The Company’s catastrophe excess of loss reinsurance program provides protection for net losses between $15 million and $395 million for the majority of business written by its U.S. Insurance segment operating units and Lloyd's Syndicate, excluding offshore energy. The Company’s catastrophe reinsurance agreements are subject to certain limits, exclusions and reinstatement premiums.
|
•
|
Casualty reinsurance treaties - The Company purchases casualty reinsurance to reduce its exposure to large individual casualty losses, workers’ compensation catastrophe losses and casualty losses involving multiple claimants or insureds for the majority of business written by its U.S. companies. A significant casualty treaty (casualty catastrophe) in effect as of January 1, 2020 provides significant protection for losses between $5 million and $75 million from single events with claims involving two or more insurable interests or for systemic events involving multiple insureds and/or policy years. The treaty also covers casualty contingency losses in excess of $2 million and up to $97 million. For losses involving two or more claimants for primary workers’ compensation business, coverage is generally in place for losses between $5 million and $270 million. For excess workers’ compensation business, such coverage is generally in place for losses between $25 million and $545 million.
|
•
|
Facultative reinsurance - The Company also purchases facultative reinsurance on certain individual policies or risks that are in excess of treaty reinsurance capacity.
|
•
|
Other reinsurance - Depending on the operating unit, the Company purchases specific additional reinsurance to supplement the above programs.
|
|
Year Ended December 31,
|
||||||||||
(In thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Earned premiums
|
$
|
1,328,843
|
|
|
$
|
1,236,049
|
|
|
$
|
1,161,936
|
|
Losses and loss expenses
|
836,831
|
|
|
829,742
|
|
|
601,769
|
|
(1)
|
S&P rating, or if not rated by S&P, A.M. Best rating.
|
(2)
|
Secured by letters of credit or other forms of collateral.
|
(3)
|
Many states require licensed insurers that provide workers' compensation insurance to participate in programs that provide workers' compensation to employers that cannot procure coverage from an insurer on a voluntary basis. Insurers can fulfill this residual market obligation by participating in pools where results are shared by the participating companies. The Company acts as a servicing carrier for workers' compensation pools in certain states. As a servicing carrier, the Company writes residual market business directly and then cedes 100% of this business to the respective pool. As a servicing carrier, the Company receives fee income for its services. The Company does not retain underwriting risk, and credit risk is limited as ceded balances are jointly shared by all the pool members.
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Estimated Payments By Periods
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
2024
|
|
Thereafter
|
||||||||||||
Gross reserves for losses
|
$
|
3,329,476
|
|
|
$
|
2,340,960
|
|
|
$
|
1,744,383
|
|
|
$
|
1,270,669
|
|
|
$
|
906,267
|
|
|
$
|
3,553,186
|
|
Operating lease obligations
|
49,293
|
|
|
47,107
|
|
|
41,652
|
|
|
37,510
|
|
|
31,152
|
|
|
78,820
|
|
||||||
Purchase obligations
|
125,828
|
|
|
64,798
|
|
|
43,172
|
|
|
40,014
|
|
|
40,383
|
|
|
—
|
|
||||||
Subordinated debentures
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,235,000
|
|
||||||
Debt maturities
|
305,934
|
|
|
1,120
|
|
|
426,503
|
|
|
—
|
|
|
—
|
|
|
701,750
|
|
||||||
Interest payments
|
142,552
|
|
|
126,427
|
|
|
119,771
|
|
|
103,584
|
|
|
103,584
|
|
|
2,775,560
|
|
||||||
Other long-term liabilities
|
3,346
|
|
|
2,998
|
|
|
2,650
|
|
|
2,382
|
|
|
2,131
|
|
|
24,696
|
|
||||||
Total
|
$
|
3,956,429
|
|
|
$
|
2,583,410
|
|
|
$
|
2,378,131
|
|
|
$
|
1,454,159
|
|
|
$
|
1,083,517
|
|
|
$
|
8,369,012
|
|
|
Effective
|
|
|
||
|
Duration
|
|
|
||
($ in thousands)
|
(Years)
|
|
Fair Value
|
||
State and municipal
|
3.9
|
|
$
|
3,978,944
|
|
Corporate
|
3.5
|
|
4,156,415
|
|
|
Mortgage-backed securities
|
3.3
|
|
1,634,959
|
|
|
Foreign government
|
2.4
|
|
847,076
|
|
|
U.S. government and government agencies
|
2.3
|
|
786,931
|
|
|
Asset-backed securities
|
1.3
|
|
2,790,630
|
|
|
Loans receivable
|
0.8
|
|
94,613
|
|
|
Cash and cash equivalents
|
—
|
|
1,023,710
|
|
|
Total
|
2.8
|
|
$
|
15,313,278
|
|
(In thousands)
|
Estimated Fair Value
|
|
Change in Fair Value
|
||||
Change in interest rates:
|
|||||||
300 basis point rise
|
$
|
13,953,211
|
|
|
$
|
(1,360,067
|
)
|
200 basis point rise
|
14,413,112
|
|
|
(900,167
|
)
|
||
100 basis point rise
|
14,866,470
|
|
|
(446,809
|
)
|
||
Base scenario
|
15,313,278
|
|
|
—
|
|
||
100 basis point decline
|
15,750,805
|
|
|
437,526
|
|
||
200 basis point decline
|
16,181,783
|
|
|
868,504
|
|
||
300 basis point decline
|
16,606,149
|
|
|
1,292,871
|
|
–
|
Examining the Company’s actuarial methodologies for compliance with Actuarial Standards of Practice;
|
–
|
Evaluating the Company’s actuarial point estimate by performing independent actuarial analyses for certain of the larger, more complex operating units;
|
–
|
Evaluating the Company’s actuarial point estimate by examining the Company actuaries’ procedures, and certain key assumptions for the remaining operating units;
|
–
|
Developing an independent range of reserves based on actuarial methodologies and assumptions and comparing to the Company’s reserves;
|
–
|
Evaluating the Company’s reserves and year-over-year movements of the Company’s reserves relative to, and within, the independently developed range of reserves; and
|
–
|
Evaluating the Company’s ability to discount certain reserves by comparing the expected payout pattern of claims paid to actual claims paid.
|
|
Year Ended December 31,
|
||||||||||
(In thousands, except per share data)
|
2019
|
|
2018
|
|
2017
|
||||||
REVENUES:
|
|
|
|
|
|
||||||
Net premiums written
|
$
|
6,863,499
|
|
|
$
|
6,433,227
|
|
|
$
|
6,260,508
|
|
Change in net unearned premiums
|
(230,211
|
)
|
|
(61,722
|
)
|
|
50,911
|
|
|||
Net premiums earned
|
6,633,288
|
|
|
6,371,505
|
|
|
6,311,419
|
|
|||
Net investment income
|
645,614
|
|
|
674,235
|
|
|
575,788
|
|
|||
Net realized and unrealized gains on investments:
|
|
|
|
|
|
||||||
Net realized and unrealized gains before OTTI
|
120,703
|
|
|
160,175
|
|
|
335,858
|
|
|||
Other-than-temporary impairments ("OTTI")
|
—
|
|
|
(5,687
|
)
|
|
—
|
|
|||
Net realized and unrealized gains on investments
|
120,703
|
|
|
154,488
|
|
|
335,858
|
|
|||
Revenues from non-insurance businesses
|
406,541
|
|
|
372,985
|
|
|
326,165
|
|
|||
Insurance service fees
|
92,680
|
|
|
117,757
|
|
|
134,729
|
|
|||
Other income
|
3,370
|
|
|
681
|
|
|
805
|
|
|||
Total revenues
|
7,902,196
|
|
|
7,691,651
|
|
|
7,684,764
|
|
|||
OPERATING COSTS AND EXPENSES:
|
|
|
|
|
|
||||||
Losses and loss expenses
|
4,131,116
|
|
|
3,974,702
|
|
|
4,002,348
|
|
|||
Other operating costs and expenses
|
2,362,082
|
|
|
2,383,221
|
|
|
2,436,932
|
|
|||
Expenses from non-insurance businesses
|
402,669
|
|
|
364,449
|
|
|
325,417
|
|
|||
Interest expense
|
153,409
|
|
|
157,185
|
|
|
147,297
|
|
|||
Total operating costs and expenses
|
7,049,276
|
|
|
6,879,557
|
|
|
6,911,994
|
|
|||
Income before income taxes
|
852,920
|
|
|
812,094
|
|
|
772,770
|
|
|||
Income tax expense
|
(168,935
|
)
|
|
(163,028
|
)
|
|
(219,433
|
)
|
|||
Net income before noncontrolling interests
|
683,985
|
|
|
649,066
|
|
|
553,337
|
|
|||
Noncontrolling interests
|
(2,041
|
)
|
|
(8,317
|
)
|
|
(4,243
|
)
|
|||
Net income to common stockholders
|
$
|
681,944
|
|
|
$
|
640,749
|
|
|
$
|
549,094
|
|
NET INCOME PER SHARE:
|
|
|
|
|
|
||||||
Basic
|
$
|
3.58
|
|
|
$
|
3.37
|
|
|
$
|
2.93
|
|
Diluted
|
$
|
3.52
|
|
|
$
|
3.33
|
|
|
$
|
2.84
|
|
|
Year Ended December 31,
|
||||||||||
(In thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Net income before noncontrolling interests
|
$
|
683,985
|
|
|
$
|
649,066
|
|
|
$
|
553,337
|
|
Other comprehensive gain (loss):
|
|
|
|
|
|
|
|
||||
Change in unrealized translation adjustments
|
37,166
|
|
|
(112,099
|
)
|
|
64,706
|
|
|||
Change in unrealized investment gains (losses), net of taxes
|
215,902
|
|
|
(252,327
|
)
|
|
(51,752
|
)
|
|||
Other comprehensive gain (loss)
|
253,068
|
|
|
(364,426
|
)
|
|
12,954
|
|
|||
Comprehensive income
|
937,053
|
|
|
284,640
|
|
|
566,291
|
|
|||
Comprehensive income to the noncontrolling interest
|
(2,144
|
)
|
|
(8,271
|
)
|
|
(4,262
|
)
|
|||
Comprehensive income to common stockholders
|
$
|
934,909
|
|
|
$
|
276,369
|
|
|
$
|
562,029
|
|
|
December 31,
|
||||||
(In thousands, except share data)
|
2019
|
|
2018
|
||||
Assets
|
|
|
|
|
|
||
Investments:
|
|
|
|
|
|
||
Fixed maturity securities
|
$
|
14,180,961
|
|
|
$
|
13,606,812
|
|
Investment funds
|
1,213,535
|
|
|
1,332,818
|
|
||
Real estate
|
2,105,950
|
|
|
1,957,092
|
|
||
Arbitrage trading account
|
400,809
|
|
|
452,548
|
|
||
Equity securities
|
480,620
|
|
|
279,006
|
|
||
Loans receivable
|
91,799
|
|
|
94,813
|
|
||
Total investments
|
18,473,674
|
|
|
17,723,089
|
|
||
Cash and cash equivalents
|
1,023,710
|
|
|
817,602
|
|
||
Premiums and fees receivable
|
1,997,186
|
|
|
1,807,762
|
|
||
Due from reinsurers
|
2,133,683
|
|
|
1,932,291
|
|
||
Deferred policy acquisition costs
|
517,364
|
|
|
497,629
|
|
||
Prepaid reinsurance premiums
|
567,595
|
|
|
498,880
|
|
||
Trading account receivable from brokers and clearing organizations
|
423,543
|
|
|
347,228
|
|
||
Property, furniture and equipment
|
422,091
|
|
|
416,372
|
|
||
Goodwill
|
169,652
|
|
|
173,037
|
|
||
Accrued investment income
|
138,789
|
|
|
144,481
|
|
||
Current federal and foreign income taxes
|
13,398
|
|
|
703
|
|
||
Deferred federal and foreign income taxes
|
—
|
|
|
35,490
|
|
||
Other assets
|
762,743
|
|
|
501,413
|
|
||
Total assets
|
$
|
26,643,428
|
|
|
$
|
24,895,977
|
|
Liabilities and Equity
|
|
|
|
|
|
||
Liabilities:
|
|
|
|
|
|
||
Reserves for losses and loss expenses
|
$
|
12,583,249
|
|
|
$
|
11,966,448
|
|
Unearned premiums
|
3,656,507
|
|
|
3,359,991
|
|
||
Due to reinsurers
|
360,314
|
|
|
256,917
|
|
||
Trading account securities sold but not yet purchased
|
36,143
|
|
|
38,120
|
|
||
Deferred federal and foreign income taxes
|
17,706
|
|
|
—
|
|
||
Other liabilities
|
1,244,888
|
|
|
1,005,184
|
|
||
Senior notes and other debt
|
1,427,575
|
|
|
1,882,028
|
|
||
Subordinated debentures
|
1,198,704
|
|
|
907,491
|
|
||
Total liabilities
|
20,525,086
|
|
|
19,416,179
|
|
||
Equity:
|
|
|
|
|
|
||
Preferred stock, par value $.10 per share:
|
|
|
|
|
|
||
Authorized 5,000,000 shares; issued and outstanding — none
|
—
|
|
|
—
|
|
||
Common stock, par value $.20 per share:
|
|
|
|
|
|
||
Authorized 500,000,000 shares, issued and outstanding, net of treasury shares, 183,411,907 and 182,993,640 shares, respectively
|
70,535
|
|
|
70,535
|
|
||
Additional paid-in capital
|
1,056,042
|
|
|
1,039,633
|
|
||
Retained earnings
|
7,932,372
|
|
|
7,558,619
|
|
||
Accumulated other comprehensive loss
|
(257,299
|
)
|
|
(510,470
|
)
|
||
Treasury stock, at cost, 169,264,857 and 169,683,237 shares, respectively
|
(2,726,711
|
)
|
|
(2,720,466
|
)
|
||
Total common stockholders’ equity
|
6,074,939
|
|
|
5,437,851
|
|
||
Noncontrolling interests
|
43,403
|
|
|
41,947
|
|
||
Total equity
|
6,118,342
|
|
|
5,479,798
|
|
||
Total liabilities and equity
|
$
|
26,643,428
|
|
|
$
|
24,895,977
|
|
|
Year Ended December 31,
|
||||||||||
(In thousands, except per share data)
|
2019
|
|
2018
|
|
2017
|
||||||
COMMON STOCK:
|
|
|
|
|
|
|
|
||||
Beginning and end of period
|
$
|
70,535
|
|
|
$
|
70,535
|
|
|
$
|
70,535
|
|
ADDITIONAL PAID IN CAPITAL:
|
|
|
|
|
|
|
|
||||
Beginning of period
|
$
|
1,039,633
|
|
|
$
|
1,024,772
|
|
|
$
|
1,013,935
|
|
Restricted stock units issued
|
(32,370
|
)
|
|
(19,547
|
)
|
|
(27,959
|
)
|
|||
Restricted stock units expensed
|
48,779
|
|
|
34,408
|
|
|
38,796
|
|
|||
End of period
|
$
|
1,056,042
|
|
|
$
|
1,039,633
|
|
|
$
|
1,024,772
|
|
RETAINED EARNINGS:
|
|
|
|
|
|
|
|
||||
Beginning of period
|
$
|
7,558,619
|
|
|
$
|
6,956,882
|
|
|
$
|
6,595,987
|
|
Cumulative effect adjustment resulting from changes in accounting principles
|
—
|
|
|
215,939
|
|
|
—
|
|
|||
Net income to common stockholders
|
681,944
|
|
|
640,749
|
|
|
549,094
|
|
|||
Dividends ($1.68, $1.39, and $1.03 per share, respectively)
|
(308,191
|
)
|
|
(254,951
|
)
|
|
(188,199
|
)
|
|||
End of period
|
$
|
7,932,372
|
|
|
$
|
7,558,619
|
|
|
$
|
6,956,882
|
|
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME:
|
|
|
|
|
|
|
|
||||
Unrealized investment gains (losses):
|
|
|
|
|
|
|
|
||||
Beginning of period
|
$
|
(91,491
|
)
|
|
$
|
375,421
|
|
|
$
|
427,154
|
|
Cumulative effect adjustment resulting from changes in accounting principles
|
—
|
|
|
(214,539
|
)
|
|
—
|
|
|||
Unrealized gains (losses) on securities not other-than-temporarily impaired
|
215,636
|
|
|
(252,241
|
)
|
|
(52,628
|
)
|
|||
Unrealized gains (losses) on other-than-temporarily impaired securities
|
369
|
|
|
(132
|
)
|
|
895
|
|
|||
End of period
|
124,514
|
|
|
(91,491
|
)
|
|
375,421
|
|
|||
Currency translation adjustments:
|
|
|
|
|
|
|
|
||||
Beginning of period
|
(418,979
|
)
|
|
(306,880
|
)
|
|
(371,586
|
)
|
|||
Net change in period
|
37,166
|
|
|
(112,099
|
)
|
|
64,706
|
|
|||
End of period
|
(381,813
|
)
|
|
(418,979
|
)
|
|
(306,880
|
)
|
|||
Total accumulated other comprehensive (loss) income
|
$
|
(257,299
|
)
|
|
$
|
(510,470
|
)
|
|
$
|
68,541
|
|
TREASURY STOCK:
|
|
|
|
|
|
|
|
||||
Beginning of period
|
$
|
(2,720,466
|
)
|
|
$
|
(2,709,386
|
)
|
|
$
|
(2,688,817
|
)
|
Stock exercised/vested
|
11,431
|
|
|
12,981
|
|
|
26,511
|
|
|||
Stock issued
|
549
|
|
|
689
|
|
|
727
|
|
|||
Stock repurchased
|
(18,225
|
)
|
|
(24,750
|
)
|
|
(47,807
|
)
|
|||
End of period
|
$
|
(2,726,711
|
)
|
|
$
|
(2,720,466
|
)
|
|
$
|
(2,709,386
|
)
|
NONCONTROLLING INTERESTS:
|
|
|
|
|
|
|
|
||||
Beginning of period
|
$
|
41,947
|
|
|
$
|
39,819
|
|
|
$
|
33,926
|
|
(Distributions) contributions
|
(688
|
)
|
|
(6,143
|
)
|
|
1,631
|
|
|||
Net income
|
2,041
|
|
|
8,317
|
|
|
4,243
|
|
|||
Other comprehensive income (loss), net of tax
|
103
|
|
|
(46
|
)
|
|
19
|
|
|||
End of period
|
$
|
43,403
|
|
|
$
|
41,947
|
|
|
$
|
39,819
|
|
|
Year Ended December 31,
|
||||||||||
(In thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
CASH FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
||||
Net income to common stockholders
|
$
|
681,944
|
|
|
$
|
640,749
|
|
|
$
|
549,094
|
|
Adjustments to reconcile net income to net cash from operating activities:
|
|
|
|
|
|
|
|
||||
Net realized and unrealized gains on investments
|
(120,703
|
)
|
|
(154,488
|
)
|
|
(335,858
|
)
|
|||
Depreciation and amortization
|
113,387
|
|
|
131,108
|
|
|
112,956
|
|
|||
Noncontrolling interests
|
2,041
|
|
|
8,317
|
|
|
4,243
|
|
|||
Investment funds
|
(69,194
|
)
|
|
(109,349
|
)
|
|
(69,333
|
)
|
|||
Stock incentive plans
|
49,274
|
|
|
36,591
|
|
|
40,490
|
|
|||
Change in:
|
|
|
|
|
|
|
|||||
Arbitrage trading account
|
(26,553
|
)
|
|
(19,093
|
)
|
|
(4,896
|
)
|
|||
Premiums and fees receivable
|
(189,151
|
)
|
|
(43,813
|
)
|
|
(67,752
|
)
|
|||
Reinsurance accounts
|
(165,898
|
)
|
|
(165,287
|
)
|
|
(66,542
|
)
|
|||
Deferred policy acquisition costs
|
(20,057
|
)
|
|
7,788
|
|
|
30,343
|
|
|||
Current income taxes
|
(12,530
|
)
|
|
(11,950
|
)
|
|
25,859
|
|
|||
Deferred income taxes
|
7,130
|
|
|
(74,761
|
)
|
|
(16,893
|
)
|
|||
Reserves for losses and loss expenses
|
612,254
|
|
|
339,015
|
|
|
438,530
|
|
|||
Unearned premiums
|
301,355
|
|
|
84,142
|
|
|
4,160
|
|
|||
Other
|
(19,506
|
)
|
|
(48,770
|
)
|
|
66,482
|
|
|||
Net cash from operating activities
|
1,143,793
|
|
|
620,199
|
|
|
710,883
|
|
|||
CASH FLOWS USED IN INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
||||
Proceeds from sale of fixed maturity securities
|
2,093,271
|
|
|
3,525,149
|
|
|
4,035,162
|
|
|||
Proceeds from sale of equity securities
|
79,963
|
|
|
497,989
|
|
|
195,270
|
|
|||
Distributions (contributions) from investment funds
|
194,663
|
|
|
(79,635
|
)
|
|
247,404
|
|
|||
Proceeds from maturities and prepayments of fixed maturity securities
|
2,933,980
|
|
|
2,676,455
|
|
|
3,556,744
|
|
|||
Purchase of fixed maturity securities
|
(5,352,886
|
)
|
|
(6,677,753
|
)
|
|
(7,940,957
|
)
|
|||
Purchase of equity securities
|
(172,978
|
)
|
|
(85,610
|
)
|
|
(27,522
|
)
|
|||
Real estate purchased
|
(146,752
|
)
|
|
(514,064
|
)
|
|
(236,039
|
)
|
|||
Change in loans receivable
|
3,481
|
|
|
(13,204
|
)
|
|
27,135
|
|
|||
Net additions to property, furniture and equipment
|
(60,457
|
)
|
|
(49,860
|
)
|
|
(115,719
|
)
|
|||
Change in balances due from security brokers
|
2,844
|
|
|
4,262
|
|
|
(4,372
|
)
|
|||
Cash received in connection with business disposition
|
—
|
|
|
8,664
|
|
|
—
|
|
|||
Payment for business purchased, net of cash acquired
|
—
|
|
|
(6,637
|
)
|
|
(70,570
|
)
|
|||
Net cash used in investing activities
|
(424,871
|
)
|
|
(714,244
|
)
|
|
(333,464
|
)
|
|||
CASH FLOWS USED IN FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
||||
Net proceeds from issuance of debt
|
290,974
|
|
|
294,562
|
|
|
6,983
|
|
|||
Repayment of senior notes and other debt
|
(456,360
|
)
|
|
(4,524
|
)
|
|
(20
|
)
|
|||
Cash dividends to common stockholders
|
(308,191
|
)
|
|
(254,951
|
)
|
|
(188,199
|
)
|
|||
Purchase of common treasury shares
|
(18,225
|
)
|
|
(24,750
|
)
|
|
(47,807
|
)
|
|||
Other, net
|
(21,391
|
)
|
|
(17,740
|
)
|
|
(6,043
|
)
|
|||
Net cash used in financing activities
|
(513,193
|
)
|
|
(7,403
|
)
|
|
(235,086
|
)
|
|||
Net impact on cash due to change in foreign exchange rates
|
379
|
|
|
(31,421
|
)
|
|
12,853
|
|
|||
Net increase (decrease) in cash and cash equivalents
|
206,108
|
|
|
(132,869
|
)
|
|
155,186
|
|
|||
Cash and cash equivalents at beginning of year
|
817,602
|
|
|
950,471
|
|
|
795,285
|
|
|||
Cash and cash equivalents at end of year
|
$
|
1,023,710
|
|
|
$
|
817,602
|
|
|
$
|
950,471
|
|
(In thousands)
|
|
|
|
|
|
||||||
December 31, 2018
|
Unrealized investment (losses) gains
|
|
Currency translation adjustments
|
|
Accumulated other comprehensive (loss) income
|
||||||
Changes in AOCI
|
|
|
|
|
|||||||
Beginning of period
|
$
|
375,421
|
|
|
$
|
(306,880
|
)
|
|
$
|
68,541
|
|
Cumulative effect adjustment resulting from changes in accounting principles
|
(214,539
|
)
|
|
—
|
|
|
(214,539
|
)
|
|||
Restated beginning of period
|
160,882
|
|
|
(306,880
|
)
|
|
(145,998
|
)
|
|||
Other comprehensive income before reclassifications
|
(246,535
|
)
|
|
(112,099
|
)
|
|
(358,634
|
)
|
|||
Amounts reclassified from AOCI
|
(5,792
|
)
|
|
—
|
|
|
(5,792
|
)
|
|||
Other comprehensive loss
|
(252,327
|
)
|
|
(112,099
|
)
|
|
(364,426
|
)
|
|||
Unrealized investment loss related to non-controlling interest
|
(46
|
)
|
|
—
|
|
|
(46
|
)
|
|||
Ending balance
|
$
|
(91,491
|
)
|
|
$
|
(418,979
|
)
|
|
$
|
(510,470
|
)
|
Amounts reclassified from AOCI
|
|
|
|
|
|
||||||
Pre-tax
|
$
|
(7,332
|
)
|
(1)
|
$
|
—
|
|
|
$
|
(7,332
|
)
|
Tax effect
|
1,540
|
|
(2)
|
—
|
|
|
1,540
|
|
|||
After-tax amounts reclassified
|
$
|
(5,792
|
)
|
|
$
|
—
|
|
|
$
|
(5,792
|
)
|
Other comprehensive loss
|
|
|
|
|
|
||||||
Pre-tax
|
$
|
(302,737
|
)
|
|
$
|
(112,099
|
)
|
|
$
|
(414,836
|
)
|
Tax effect
|
50,410
|
|
|
—
|
|
|
50,410
|
|
|||
Other comprehensive loss
|
$
|
(252,327
|
)
|
|
$
|
(112,099
|
)
|
|
$
|
(364,426
|
)
|
(In thousands)
|
Amortized
Cost |
|
Gross Unrealized
|
|
Fair
Value |
|
Carrying
Value |
||||||||||||
Gains
|
|
Losses
|
|||||||||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
||||||||||
Held to maturity:
|
|
|
|
|
|
|
|
|
|
||||||||||
State and municipal
|
$
|
70,312
|
|
|
$
|
13,000
|
|
|
$
|
—
|
|
|
$
|
83,312
|
|
|
$
|
70,312
|
|
Residential mortgage-backed
|
8,371
|
|
|
994
|
|
|
—
|
|
|
9,365
|
|
|
8,371
|
|
|||||
Total held to maturity
|
78,683
|
|
|
13,994
|
|
|
—
|
|
|
92,677
|
|
|
78,683
|
|
|||||
Available for sale:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. government and government agency
|
775,157
|
|
|
13,249
|
|
|
(1,475
|
)
|
|
786,931
|
|
|
786,931
|
|
|||||
State and municipal:
|
|
|
|
|
|
|
|
|
|
||||||||||
Special revenue
|
2,343,209
|
|
|
64,586
|
|
|
(4,152
|
)
|
|
2,403,643
|
|
|
2,403,643
|
|
|||||
State general obligation
|
359,298
|
|
|
22,074
|
|
|
(97
|
)
|
|
381,275
|
|
|
381,275
|
|
|||||
Pre-refunded
|
364,571
|
|
|
20,342
|
|
|
(128
|
)
|
|
384,785
|
|
|
384,785
|
|
|||||
Corporate backed
|
255,230
|
|
|
7,232
|
|
|
(903
|
)
|
|
261,559
|
|
|
261,559
|
|
|||||
Local general obligation
|
432,333
|
|
|
32,684
|
|
|
(647
|
)
|
|
464,370
|
|
|
464,370
|
|
|||||
Total state and municipal
|
3,754,641
|
|
|
146,918
|
|
|
(5,927
|
)
|
|
3,895,632
|
|
|
3,895,632
|
|
|||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential (1)
|
1,298,145
|
|
|
23,230
|
|
|
(5,155
|
)
|
|
1,316,220
|
|
|
1,316,220
|
|
|||||
Commercial
|
304,506
|
|
|
5,214
|
|
|
(346
|
)
|
|
309,374
|
|
|
309,374
|
|
|||||
Total mortgage-backed securities
|
1,602,651
|
|
|
28,444
|
|
|
(5,501
|
)
|
|
1,625,594
|
|
|
1,625,594
|
|
|||||
Asset-backed securities
|
2,802,588
|
|
|
9,532
|
|
|
(21,490
|
)
|
|
2,790,630
|
|
|
2,790,630
|
|
|||||
Corporate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Industrial
|
2,260,073
|
|
|
72,900
|
|
|
(3,800
|
)
|
|
2,329,173
|
|
|
2,329,173
|
|
|||||
Financial
|
1,447,589
|
|
|
37,681
|
|
|
(4,118
|
)
|
|
1,481,152
|
|
|
1,481,152
|
|
|||||
Utilities
|
325,762
|
|
|
15,281
|
|
|
(402
|
)
|
|
340,641
|
|
|
340,641
|
|
|||||
Other
|
5,219
|
|
|
230
|
|
|
—
|
|
|
5,449
|
|
|
5,449
|
|
|||||
Total corporate
|
4,038,643
|
|
|
126,092
|
|
|
(8,320
|
)
|
|
4,156,415
|
|
|
4,156,415
|
|
|||||
Foreign government
|
924,284
|
|
|
16,465
|
|
|
(93,673
|
)
|
|
847,076
|
|
|
847,076
|
|
|||||
Total available for sale
|
13,897,964
|
|
|
340,700
|
|
|
(136,386
|
)
|
|
14,102,278
|
|
|
14,102,278
|
|
|||||
Total investments in fixed maturity securities
|
$
|
13,976,647
|
|
|
$
|
354,694
|
|
|
$
|
(136,386
|
)
|
|
$
|
14,194,955
|
|
|
$
|
14,180,961
|
|
(In thousands)
|
Amortized
Cost |
|
Gross Unrealized
|
|
Fair
Value |
|
Carrying
Value |
||||||||||||
Gains
|
|
Losses
|
|||||||||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
Held to maturity:
|
|
|
|
|
|
|
|
|
|
||||||||||
State and municipal
|
$
|
67,891
|
|
|
$
|
11,549
|
|
|
$
|
—
|
|
|
$
|
79,440
|
|
|
$
|
67,891
|
|
Residential mortgage-backed
|
10,744
|
|
|
1,259
|
|
|
—
|
|
|
12,003
|
|
|
10,744
|
|
|||||
Total held to maturity
|
78,635
|
|
|
12,808
|
|
|
—
|
|
|
91,443
|
|
|
78,635
|
|
|||||
Available for sale:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. government and government agency
|
697,931
|
|
|
9,219
|
|
|
(4,910
|
)
|
|
702,240
|
|
|
702,240
|
|
|||||
State and municipal:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Special revenue
|
2,396,089
|
|
|
30,507
|
|
|
(19,790
|
)
|
|
2,406,806
|
|
|
2,406,806
|
|
|||||
State general obligation
|
335,626
|
|
|
11,951
|
|
|
(1,103
|
)
|
|
346,474
|
|
|
346,474
|
|
|||||
Pre-refunded
|
408,141
|
|
|
16,568
|
|
|
(30
|
)
|
|
424,679
|
|
|
424,679
|
|
|||||
Corporate backed
|
272,440
|
|
|
4,319
|
|
|
(2,350
|
)
|
|
274,409
|
|
|
274,409
|
|
|||||
Local general obligation
|
403,219
|
|
|
18,350
|
|
|
(1,339
|
)
|
|
420,230
|
|
|
420,230
|
|
|||||
Total state and municipal
|
3,815,515
|
|
|
81,695
|
|
|
(24,612
|
)
|
|
3,872,598
|
|
|
3,872,598
|
|
|||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential (1)
|
1,264,376
|
|
|
7,729
|
|
|
(20,225
|
)
|
|
1,251,880
|
|
|
1,251,880
|
|
|||||
Commercial
|
345,070
|
|
|
1,304
|
|
|
(3,708
|
)
|
|
342,666
|
|
|
342,666
|
|
|||||
Total mortgage-backed securities
|
1,609,446
|
|
|
9,033
|
|
|
(23,933
|
)
|
|
1,594,546
|
|
|
1,594,546
|
|
|||||
Asset-backed securities
|
2,462,303
|
|
|
10,131
|
|
|
(33,687
|
)
|
|
2,438,747
|
|
|
2,438,747
|
|
|||||
Corporate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Industrial
|
2,295,778
|
|
|
15,355
|
|
|
(53,312
|
)
|
|
2,257,821
|
|
|
2,257,821
|
|
|||||
Financial
|
1,502,427
|
|
|
7,178
|
|
|
(45,683
|
)
|
|
1,463,922
|
|
|
1,463,922
|
|
|||||
Utilities
|
330,326
|
|
|
2,997
|
|
|
(4,148
|
)
|
|
329,175
|
|
|
329,175
|
|
|||||
Other
|
60,238
|
|
|
322
|
|
|
(167
|
)
|
|
60,393
|
|
|
60,393
|
|
|||||
Total corporate
|
4,188,769
|
|
|
25,852
|
|
|
(103,310
|
)
|
|
4,111,311
|
|
|
4,111,311
|
|
|||||
Foreign government
|
822,093
|
|
|
11,753
|
|
|
(25,111
|
)
|
|
808,735
|
|
|
808,735
|
|
|||||
Total available for sale
|
13,596,057
|
|
|
147,683
|
|
|
(215,563
|
)
|
|
13,528,177
|
|
|
13,528,177
|
|
|||||
Total investments in fixed maturity securities
|
$
|
13,674,692
|
|
|
$
|
160,491
|
|
|
$
|
(215,563
|
)
|
|
$
|
13,619,620
|
|
|
$
|
13,606,812
|
|
(In thousands)
|
Amortized
Cost
|
|
Fair Value
|
||||
Due in one year or less
|
$
|
959,583
|
|
|
$
|
917,059
|
|
Due after one year through five years
|
5,010,862
|
|
|
5,087,806
|
|
||
Due after five years through ten years
|
3,391,154
|
|
|
3,511,621
|
|
||
Due after ten years
|
3,004,026
|
|
|
3,043,510
|
|
||
Mortgage-backed securities
|
1,611,022
|
|
|
1,634,959
|
|
||
Total
|
$
|
13,976,647
|
|
|
$
|
14,194,955
|
|
(In thousands)
|
Cost
|
|
Gross Unrealized
|
|
Fair
Value
|
|
Carrying
Value
|
||||||||||||
Gains
|
|
Losses
|
|
||||||||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Common stocks
|
$
|
175,928
|
|
|
$
|
16,967
|
|
|
$
|
(26,090
|
)
|
|
$
|
166,805
|
|
|
$
|
166,805
|
|
Preferred stocks
|
169,171
|
|
|
148,243
|
|
|
(3,599
|
)
|
|
313,815
|
|
|
313,815
|
|
|||||
Total
|
$
|
345,099
|
|
|
$
|
165,210
|
|
|
$
|
(29,689
|
)
|
|
$
|
480,620
|
|
|
$
|
480,620
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Common stocks
|
$
|
113,576
|
|
|
$
|
4,335
|
|
|
$
|
(19,719
|
)
|
|
$
|
98,192
|
|
|
$
|
98,192
|
|
Preferred stocks
|
115,201
|
|
|
72,364
|
|
|
(6,751
|
)
|
|
180,814
|
|
|
180,814
|
|
|||||
Total
|
$
|
228,777
|
|
|
$
|
76,699
|
|
|
$
|
(26,470
|
)
|
|
$
|
279,006
|
|
|
$
|
279,006
|
|
(In thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Investment income earned on:
|
|
|
|
|
|
|
|
|
|||
Fixed maturity securities, including cash and cash equivalents and loans receivable
|
$
|
517,925
|
|
|
$
|
519,269
|
|
|
$
|
473,101
|
|
Investment funds
|
69,194
|
|
|
109,349
|
|
|
68,169
|
|
|||
Arbitrage trading account
|
34,585
|
|
|
28,157
|
|
|
19,145
|
|
|||
Real estate
|
24,218
|
|
|
18,591
|
|
|
19,975
|
|
|||
Equity securities
|
5,439
|
|
|
3,230
|
|
|
2,350
|
|
|||
Gross investment income
|
651,361
|
|
|
678,596
|
|
|
582,740
|
|
|||
Investment expense
|
(5,747
|
)
|
|
(4,361
|
)
|
|
(6,952
|
)
|
|||
Net investment income
|
$
|
645,614
|
|
|
$
|
674,235
|
|
|
$
|
575,788
|
|
|
Carrying Value
as of December 31,
|
|
Income (Losses)
|
||||||||||||||||
(In thousands)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2017
|
||||||||||
Real estate
|
$
|
412,275
|
|
|
$
|
642,137
|
|
|
$
|
19,154
|
|
|
$
|
61,453
|
|
|
$
|
45,068
|
|
Financial services
|
280,705
|
|
|
195,706
|
|
|
29,005
|
|
|
11,044
|
|
|
3,762
|
|
|||||
Energy
|
156,869
|
|
|
183,627
|
|
|
(18,136
|
)
|
|
7,084
|
|
|
6,147
|
|
|||||
Transportation
|
147,034
|
|
|
136,640
|
|
|
14,193
|
|
|
15,390
|
|
|
1,686
|
|
|||||
Other funds
|
216,652
|
|
|
174,708
|
|
|
24,978
|
|
|
14,378
|
|
|
11,506
|
|
|||||
Total
|
$
|
1,213,535
|
|
|
$
|
1,332,818
|
|
|
$
|
69,194
|
|
|
$
|
109,349
|
|
|
$
|
68,169
|
|
|
As of December 31,
|
||||||
(In thousands)
|
2019
|
|
2018
|
||||
Properties in operation
|
$
|
1,351,249
|
|
|
$
|
1,279,584
|
|
Properties under development
|
754,701
|
|
|
677,508
|
|
||
Total
|
$
|
2,105,950
|
|
|
$
|
1,957,092
|
|
|
As of December 31,
|
||||||
(In thousands)
|
2019
|
|
2018
|
||||
Amortized cost (net of valuation allowance):
|
|
|
|
||||
Real estate loans
|
$
|
58,541
|
|
|
$
|
62,289
|
|
Commercial loans
|
33,258
|
|
|
32,524
|
|
||
Total
|
$
|
91,799
|
|
|
$
|
94,813
|
|
|
|
|
|
||||
Fair value:
|
|
|
|
||||
Real estate loans
|
$
|
59,853
|
|
|
$
|
63,047
|
|
Commercial loans
|
34,760
|
|
|
34,026
|
|
||
Total
|
$
|
94,613
|
|
|
$
|
97,073
|
|
|
|
|
|
||||
Valuation allowance:
|
|
|
|
||||
Specific
|
$
|
165
|
|
|
$
|
1,200
|
|
General
|
1,981
|
|
|
2,183
|
|
||
Total
|
$
|
2,146
|
|
|
$
|
3,383
|
|
|
|
|
|
||||
|
For the Year Ended December 31,
|
||||||
|
2019
|
|
2018
|
||||
Decrease in valuation allowance
|
$
|
(1,237
|
)
|
|
$
|
—
|
|
(In thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Net realized and unrealized gains (losses) on investments in earnings
|
|
|
|
|
|
|
|
|
|||
Fixed maturity securities:
|
|
|
|
|
|
|
|
|
|||
Gains
|
$
|
23,900
|
|
|
$
|
26,752
|
|
|
$
|
28,217
|
|
Losses
|
(13,636
|
)
|
|
(13,733
|
)
|
|
(5,342
|
)
|
|||
Equity securities (1):
|
|
|
|
|
|
||||||
Net realized gains on investment sales
|
23,306
|
|
|
435,150
|
|
|
154,539
|
|
|||
Change in unrealized gains (losses)
|
85,292
|
|
|
(320,413
|
)
|
|
—
|
|
|||
Investment funds (2)
|
(2,825
|
)
|
|
(212
|
)
|
|
125,423
|
|
|||
Real estate
|
5,965
|
|
|
27,816
|
|
|
12,880
|
|
|||
Loans receivable
|
(970
|
)
|
|
2,838
|
|
|
—
|
|
|||
Other
|
(329
|
)
|
|
1,977
|
|
|
20,141
|
|
|||
Net realized and unrealized gains on investments in earnings before OTTI
|
120,703
|
|
|
160,175
|
|
|
335,858
|
|
|||
Other-than-temporary impairments (3)
|
—
|
|
|
(5,687
|
)
|
|
—
|
|
|||
Net realized and unrealized gains on investments in earnings
|
120,703
|
|
|
154,488
|
|
|
335,858
|
|
|||
Income tax expense
|
(25,348
|
)
|
|
(32,442
|
)
|
|
(117,550
|
)
|
|||
After-tax net realized and unrealized gains on investments in earnings
|
$
|
95,355
|
|
|
$
|
122,046
|
|
|
$
|
218,308
|
|
Change in unrealized investment gains (losses) of available for sales securities:
|
|
|
|
|
|
|
|
|
|||
Fixed maturity securities
|
$
|
271,825
|
|
|
$
|
(297,084
|
)
|
|
$
|
(2,192
|
)
|
Previously impaired fixed maturity securities
|
369
|
|
|
(132
|
)
|
|
895
|
|
|||
Equity securities available for sale (4)
|
—
|
|
|
—
|
|
|
(77,971
|
)
|
|||
Investment funds
|
(2,299
|
)
|
|
(5,672
|
)
|
|
10,179
|
|
|||
Other
|
(7,925
|
)
|
|
151
|
|
|
(336
|
)
|
|||
Total change in unrealized investment gains (losses)
|
261,970
|
|
|
(302,737
|
)
|
|
(69,425
|
)
|
|||
Income tax (expense) benefit
|
(46,068
|
)
|
|
50,410
|
|
|
17,673
|
|
|||
Noncontrolling interests
|
103
|
|
|
(46
|
)
|
|
19
|
|
|||
After-tax change in unrealized investment gains (losses) of available for sale securities
|
$
|
216,005
|
|
|
$
|
(252,373
|
)
|
|
$
|
(51,733
|
)
|
|
Less Than 12 Months
|
|
12 Months or Greater
|
|
Total
|
||||||||||||||||||
(In thousands)
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
||||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. government and government agency
|
$
|
83,837
|
|
|
$
|
618
|
|
|
$
|
53,089
|
|
|
$
|
857
|
|
|
$
|
136,926
|
|
|
$
|
1,475
|
|
State and municipal
|
365,184
|
|
|
4,245
|
|
|
127,210
|
|
|
1,682
|
|
|
492,394
|
|
|
5,927
|
|
||||||
Mortgage-backed securities
|
301,358
|
|
|
2,281
|
|
|
180,148
|
|
|
3,220
|
|
|
481,506
|
|
|
5,501
|
|
||||||
Asset-backed securities
|
755,259
|
|
|
2,307
|
|
|
774,508
|
|
|
19,183
|
|
|
1,529,767
|
|
|
21,490
|
|
||||||
Corporate
|
307,367
|
|
|
3,148
|
|
|
121,470
|
|
|
5,172
|
|
|
428,837
|
|
|
8,320
|
|
||||||
Foreign government
|
164,536
|
|
|
32,028
|
|
|
107,266
|
|
|
61,645
|
|
|
271,802
|
|
|
93,673
|
|
||||||
Fixed maturity securities
|
$
|
1,977,541
|
|
|
$
|
44,627
|
|
|
$
|
1,363,691
|
|
|
$
|
91,759
|
|
|
$
|
3,341,232
|
|
|
$
|
136,386
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
U.S. government and government agency
|
$
|
195,359
|
|
|
$
|
933
|
|
|
$
|
130,815
|
|
|
$
|
3,977
|
|
|
$
|
326,174
|
|
|
$
|
4,910
|
|
State and municipal
|
701,700
|
|
|
6,874
|
|
|
744,905
|
|
|
17,738
|
|
|
1,446,605
|
|
|
24,612
|
|
||||||
Mortgage-backed securities
|
334,063
|
|
|
2,911
|
|
|
712,595
|
|
|
21,022
|
|
|
1,046,658
|
|
|
23,933
|
|
||||||
Asset-backed securities
|
1,687,665
|
|
|
28,965
|
|
|
342,855
|
|
|
4,722
|
|
|
2,030,520
|
|
|
33,687
|
|
||||||
Corporate
|
1,730,513
|
|
|
54,181
|
|
|
954,763
|
|
|
49,129
|
|
|
2,685,276
|
|
|
103,310
|
|
||||||
Foreign government
|
246,273
|
|
|
24,197
|
|
|
80,004
|
|
|
914
|
|
|
326,277
|
|
|
25,111
|
|
||||||
Fixed maturity securities
|
$
|
4,895,573
|
|
|
$
|
118,061
|
|
|
$
|
2,965,937
|
|
|
$
|
97,502
|
|
|
$
|
7,861,510
|
|
|
$
|
215,563
|
|
($ in thousands)
|
Number of
Securities
|
|
Aggregate
Fair Value
|
|
Gross
Unrealized
Loss
|
|||||
Foreign government
|
21
|
|
|
$
|
79,747
|
|
|
$
|
92,369
|
|
Corporate
|
14
|
|
|
65,710
|
|
|
4,319
|
|
||
Asset-backed securities
|
5
|
|
|
437
|
|
|
113
|
|
||
Mortgage-backed securities
|
5
|
|
|
954
|
|
|
17
|
|
||
Total
|
45
|
|
|
$
|
146,848
|
|
|
$
|
96,818
|
|
(In thousands)
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Fixed maturity securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|||||
U.S. government and government agency
|
$
|
786,931
|
|
|
$
|
—
|
|
|
$
|
786,931
|
|
|
$
|
—
|
|
State and municipal
|
3,895,632
|
|
|
—
|
|
|
3,895,632
|
|
|
—
|
|
||||
Mortgage-backed securities
|
1,625,594
|
|
|
—
|
|
|
1,625,594
|
|
|
—
|
|
||||
Asset-backed securities
|
2,790,630
|
|
|
—
|
|
|
2,790,630
|
|
|
—
|
|
||||
Corporate
|
4,156,415
|
|
|
—
|
|
|
4,156,415
|
|
|
—
|
|
||||
Foreign government
|
847,076
|
|
|
—
|
|
|
847,076
|
|
|
—
|
|
||||
Total fixed maturity securities available for sale
|
14,102,278
|
|
|
—
|
|
|
14,102,278
|
|
|
—
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Common stocks
|
166,805
|
|
|
157,752
|
|
|
—
|
|
|
9,053
|
|
||||
Preferred stocks
|
313,815
|
|
|
—
|
|
|
307,310
|
|
|
6,505
|
|
||||
Total equity securities
|
480,620
|
|
|
157,752
|
|
|
307,310
|
|
|
15,558
|
|
||||
Arbitrage trading account
|
400,809
|
|
|
381,061
|
|
|
19,748
|
|
|
—
|
|
||||
Total
|
$
|
14,983,707
|
|
|
$
|
538,813
|
|
|
$
|
14,429,336
|
|
|
$
|
15,558
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Trading account securities sold but not yet purchased
|
$
|
36,143
|
|
|
$
|
36,143
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Fixed maturity securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|||||
U.S. government and government agency
|
$
|
702,240
|
|
|
$
|
—
|
|
|
$
|
702,240
|
|
|
$
|
—
|
|
State and municipal
|
3,872,598
|
|
|
—
|
|
|
3,872,598
|
|
|
—
|
|
||||
Mortgage-backed securities
|
1,594,546
|
|
|
—
|
|
|
1,594,546
|
|
|
—
|
|
||||
Asset-backed securities
|
2,438,747
|
|
|
—
|
|
|
2,438,648
|
|
|
99
|
|
||||
Corporate
|
4,111,311
|
|
|
—
|
|
|
4,111,311
|
|
|
—
|
|
||||
Foreign government
|
808,735
|
|
|
—
|
|
|
808,735
|
|
|
—
|
|
||||
Total fixed maturity securities available for sale
|
13,528,177
|
|
|
—
|
|
|
13,528,078
|
|
|
99
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Common stocks
|
98,192
|
|
|
89,596
|
|
|
—
|
|
|
8,596
|
|
||||
Preferred stocks
|
180,814
|
|
|
—
|
|
|
176,869
|
|
|
3,945
|
|
||||
Total equity securities
|
279,006
|
|
|
89,596
|
|
|
176,869
|
|
|
12,541
|
|
||||
Arbitrage trading account
|
452,548
|
|
|
353,335
|
|
|
81,905
|
|
|
17,308
|
|
||||
Total
|
$
|
14,259,731
|
|
|
$
|
442,931
|
|
|
$
|
13,786,852
|
|
|
$
|
29,948
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Trading account securities sold but not yet purchased
|
$
|
38,120
|
|
|
$
|
37,327
|
|
|
$
|
—
|
|
|
$
|
793
|
|
|
Gains (Losses) Included in:
|
||||||||||||||||||||||||||||||||||
(In thousands)
|
Beginning Balance
|
|
Earnings (Losses)
|
|
Other Comprehensive Income (Losses)
|
|
Impairments
|
|
Purchases
|
|
Sales
|
|
Paydowns/Maturities
|
|
Transfers In / Out
|
|
Ending Balance
|
||||||||||||||||||
Year ended December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Fixed maturity securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Asset-backed securities
|
$
|
99
|
|
|
$
|
(26
|
)
|
|
$
|
61
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(134
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Total
|
99
|
|
|
(26
|
)
|
|
61
|
|
|
—
|
|
|
—
|
|
|
(134
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Common stocks
|
8,596
|
|
|
2,005
|
|
|
|
|
|
—
|
|
|
—
|
|
|
(1,548
|
)
|
|
—
|
|
|
—
|
|
|
9,053
|
|
|||||||||
Preferred stocks
|
3,945
|
|
|
(42
|
)
|
|
—
|
|
|
—
|
|
|
2,602
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,505
|
|
|||||||||
Total
|
12,541
|
|
|
1,963
|
|
|
—
|
|
|
—
|
|
|
2,602
|
|
|
(1,548
|
)
|
|
—
|
|
|
—
|
|
|
15,558
|
|
|||||||||
Arbitrage trading account
|
17,308
|
|
|
(8,731
|
)
|
|
—
|
|
|
—
|
|
|
14,767
|
|
|
(38,233
|
)
|
|
—
|
|
|
14,889
|
|
|
—
|
|
|||||||||
Total
|
$
|
29,948
|
|
|
$
|
(6,794
|
)
|
|
$
|
61
|
|
|
$
|
—
|
|
|
$
|
17,369
|
|
|
$
|
(39,915
|
)
|
|
$
|
—
|
|
|
$
|
14,889
|
|
|
$
|
15,558
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Trading account securities sold but not yet purchased
|
$
|
793
|
|
|
$
|
133
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7,609
|
|
|
$
|
(8,535
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Year ended December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Fixed maturity securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Asset-backed securities
|
$
|
172
|
|
|
$
|
(2
|
)
|
|
$
|
46
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(117
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
99
|
|
Total
|
172
|
|
|
(2
|
)
|
|
46
|
|
|
—
|
|
|
—
|
|
|
(117
|
)
|
|
—
|
|
|
—
|
|
|
99
|
|
|||||||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Common stocks
|
9,370
|
|
|
(548
|
)
|
|
|
|
|
—
|
|
|
—
|
|
|
(227
|
)
|
|
—
|
|
|
1
|
|
|
8,596
|
|
|||||||||
Preferred stocks
|
10,843
|
|
|
100
|
|
|
—
|
|
|
—
|
|
|
|
|
|
(6,998
|
)
|
|
—
|
|
|
—
|
|
|
3,945
|
|
|||||||||
Total
|
20,213
|
|
|
(448
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7,225
|
)
|
|
—
|
|
|
1
|
|
|
12,541
|
|
|||||||||
Arbitrage trading account
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
11,523
|
|
|
(11
|
)
|
|
—
|
|
|
5,802
|
|
|
17,308
|
|
|||||||||
Total
|
$
|
20,385
|
|
|
$
|
(456
|
)
|
|
$
|
46
|
|
|
$
|
—
|
|
|
$
|
11,523
|
|
|
$
|
(7,353
|
)
|
|
$
|
—
|
|
|
$
|
5,803
|
|
|
$
|
29,948
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Trading account securities sold but not yet purchased
|
$
|
—
|
|
|
$
|
(67
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
860
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
793
|
|
Loss and Loss Expenses Incurred, Net of Reinsurance
|
|
As of December 31, 2019
|
|||||||||||||||||||||||||||||||||
For the Year Ended December 31,
|
|
|
|
||||||||||||||||||||||||||||||||
|
Unaudited
|
|
|
|
|
||||||||||||||||||||||||||||||
Accident Year
|
2010
|
2011
|
2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
2019
|
|
IBNR
|
Cumulative Number of Reported Claims
|
||||||||||||||||||||||
2010
|
$
|
612,467
|
|
$
|
616,023
|
|
$
|
589,921
|
|
$
|
588,602
|
|
$
|
575,528
|
|
$
|
572,785
|
|
$
|
571,637
|
|
$
|
569,440
|
|
$
|
564,873
|
|
$
|
561,579
|
|
|
$
|
19,742
|
|
22
|
2011
|
—
|
|
665,420
|
|
671,537
|
|
657,679
|
|
656,976
|
|
651,973
|
|
647,091
|
|
643,195
|
|
632,382
|
|
642,774
|
|
|
22,746
|
|
23
|
|||||||||||
2012
|
—
|
|
—
|
|
691,803
|
|
700,539
|
|
701,144
|
|
707,326
|
|
711,287
|
|
721,460
|
|
715,996
|
|
714,020
|
|
|
32,727
|
|
23
|
|||||||||||
2013
|
—
|
|
—
|
|
—
|
|
750,054
|
|
790,314
|
|
782,260
|
|
782,039
|
|
802,908
|
|
809,250
|
|
803,856
|
|
|
49,079
|
|
25
|
|||||||||||
2014
|
—
|
|
—
|
|
—
|
|
—
|
|
847,034
|
|
848,641
|
|
846,644
|
|
851,044
|
|
863,899
|
|
870,017
|
|
|
83,500
|
|
26
|
|||||||||||
2015
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
951,028
|
|
986,655
|
|
961,441
|
|
964,598
|
|
966,662
|
|
|
134,615
|
|
25
|
|||||||||||
2016
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1,018,009
|
|
1,010,984
|
|
1,019,893
|
|
1,031,150
|
|
|
245,835
|
|
25
|
|||||||||||
2017
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1,066,362
|
|
1,100,127
|
|
1,122,209
|
|
|
377,307
|
|
25
|
|||||||||||
2018
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1,104,631
|
|
1,131,202
|
|
|
606,500
|
|
23
|
|||||||||||
2019
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1,237,276
|
|
|
937,110
|
|
20
|
|||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
$
|
9,080,745
|
|
|
|
|
Cumulative Paid Claims and Claim Adjustment Expenses, Net of Reinsurance
|
||||||||||||||||||||||||||||||
For the Year Ended December 31,
|
||||||||||||||||||||||||||||||
|
Unaudited
|
|
||||||||||||||||||||||||||||
Accident Year
|
2010
|
2011
|
2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
2019
|
||||||||||||||||||||
2010
|
$
|
45,194
|
|
$
|
128,948
|
|
$
|
246,647
|
|
$
|
334,054
|
|
$
|
414,945
|
|
$
|
459,478
|
|
$
|
489,077
|
|
$
|
506,283
|
|
$
|
522,939
|
|
$
|
531,085
|
|
2011
|
—
|
|
48,830
|
|
141,192
|
|
265,071
|
|
377,769
|
|
469,004
|
|
522,369
|
|
554,152
|
|
573,236
|
|
591,990
|
|
||||||||||
2012
|
—
|
|
—
|
|
57,568
|
|
157,316
|
|
298,095
|
|
415,890
|
|
511,601
|
|
578,617
|
|
620,507
|
|
651,000
|
|
||||||||||
2013
|
—
|
|
—
|
|
—
|
|
63,293
|
|
188,240
|
|
330,928
|
|
471,648
|
|
587,102
|
|
647,891
|
|
693,306
|
|
||||||||||
2014
|
—
|
|
—
|
|
—
|
|
—
|
|
78,921
|
|
190,876
|
|
338,365
|
|
480,418
|
|
594,488
|
|
680,436
|
|
||||||||||
2015
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
82,712
|
|
210,773
|
|
382,185
|
|
538,071
|
|
676,037
|
|
||||||||||
2016
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
69,477
|
|
208,991
|
|
390,231
|
|
558,539
|
|
||||||||||
2017
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
80,037
|
|
255,849
|
|
453,389
|
|
||||||||||
2018
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
86,858
|
|
264,392
|
|
||||||||||
2019
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
88,260
|
|
||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
$
|
5,188,434
|
|
|||||||||||||||||
|
Reserves for loss and loss adjustment expenses before 2010, net of reinsurance
|
|
106,200
|
|
||||||||||||||||||||||||||
|
Reserves for loss and loss adjustment expenses, net of reinsurance
|
|
$
|
3,998,511
|
|
Loss and Loss Expenses Incurred, Net of Reinsurance
|
|
As of December 31, 2019
|
|||||||||||||||||||||||||||||||||
For the Year Ended December 31,
|
|
|
|
||||||||||||||||||||||||||||||||
|
Unaudited
|
|
|
|
|
||||||||||||||||||||||||||||||
Accident Year
|
2010
|
2011
|
2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
2019
|
|
IBNR
|
Cumulative Number of Reported Claims
|
||||||||||||||||||||||
2010
|
$
|
352,138
|
|
$
|
355,305
|
|
$
|
411,527
|
|
$
|
420,604
|
|
$
|
426,622
|
|
$
|
429,952
|
|
$
|
429,762
|
|
$
|
427,698
|
|
$
|
424,374
|
|
$
|
424,195
|
|
|
$
|
13,552
|
|
45
|
2011
|
—
|
|
413,429
|
|
444,887
|
|
457,134
|
|
470,026
|
|
472,087
|
|
474,076
|
|
475,729
|
|
471,471
|
|
473,766
|
|
|
17,276
|
|
46
|
|||||||||||
2012
|
—
|
|
—
|
|
501,681
|
|
501,810
|
|
503,956
|
|
503,863
|
|
509,167
|
|
512,707
|
|
508,169
|
|
506,730
|
|
|
24,736
|
|
48
|
|||||||||||
2013
|
—
|
|
—
|
|
—
|
|
552,570
|
|
547,295
|
|
546,995
|
|
543,238
|
|
547,000
|
|
542,274
|
|
541,926
|
|
|
29,205
|
|
53
|
|||||||||||
2014
|
—
|
|
—
|
|
—
|
|
—
|
|
639,436
|
|
637,307
|
|
627,767
|
|
617,242
|
|
615,435
|
|
604,029
|
|
|
44,633
|
|
57
|
|||||||||||
2015
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
712,800
|
|
690,525
|
|
650,997
|
|
641,169
|
|
626,431
|
|
|
60,862
|
|
58
|
|||||||||||
2016
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
702,716
|
|
696,339
|
|
684,700
|
|
660,508
|
|
|
71,710
|
|
57
|
|||||||||||
2017
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
762,093
|
|
733,505
|
|
689,559
|
|
|
107,981
|
|
57
|
|||||||||||
2018
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
778,964
|
|
724,463
|
|
|
153,587
|
|
55
|
|||||||||||
2019
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
783,244
|
|
|
372,381
|
|
50
|
|||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
$
|
6,034,851
|
|
|
|
|
Cumulative Paid Claims and Claim Adjustment Expenses, Net of Reinsurance
|
||||||||||||||||||||||||||||||
For the Year Ended December 31,
|
||||||||||||||||||||||||||||||
|
Unaudited
|
|
||||||||||||||||||||||||||||
Accident Year
|
2010
|
2011
|
2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
2019
|
||||||||||||||||||||
2010
|
$
|
108,675
|
|
$
|
215,882
|
|
$
|
281,280
|
|
$
|
320,154
|
|
$
|
344,631
|
|
$
|
362,078
|
|
$
|
374,013
|
|
$
|
382,665
|
|
$
|
388,405
|
|
$
|
392,672
|
|
2011
|
—
|
|
106,899
|
|
236,207
|
|
309,509
|
|
355,909
|
|
385,759
|
|
408,304
|
|
420,945
|
|
428,811
|
|
436,905
|
|
||||||||||
2012
|
—
|
|
—
|
|
115,536
|
|
255,063
|
|
339,560
|
|
387,368
|
|
419,588
|
|
437,196
|
|
451,991
|
|
459,119
|
|
||||||||||
2013
|
—
|
|
—
|
|
—
|
|
117,900
|
|
277,538
|
|
363,028
|
|
414,160
|
|
447,894
|
|
466,580
|
|
479,104
|
|
||||||||||
2014
|
—
|
|
—
|
|
—
|
|
—
|
|
148,405
|
|
319,743
|
|
412,611
|
|
471,235
|
|
503,915
|
|
521,141
|
|
||||||||||
2015
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
139,320
|
|
323,744
|
|
421,734
|
|
477,541
|
|
512,933
|
|
||||||||||
2016
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
142,998
|
|
338,835
|
|
446,072
|
|
504,850
|
|
||||||||||
2017
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
153,456
|
|
362,299
|
|
468,817
|
|
||||||||||
2018
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
171,006
|
|
397,464
|
|
||||||||||
2019
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
184,715
|
|
||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
$
|
4,357,720
|
|
|||||||||||||||||
|
|
Reserves for loss and loss adjustment expenses before 2010, net of reinsurance
|
|
193,837
|
|
|||||||||||||||||||||||||
|
|
Reserves for loss and loss adjustment expenses, net of reinsurance
|
|
$
|
1,870,968
|
|
Loss and Loss Expenses Incurred, Net of Reinsurance
|
|
As of December 31, 2019
|
|||||||||||||||||||||||||||||||||
For the Year Ended December 31,
|
|
|
|
||||||||||||||||||||||||||||||||
|
Unaudited
|
|
|
|
|
||||||||||||||||||||||||||||||
Accident Year
|
2010
|
2011
|
2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
2019
|
|
IBNR
|
Cumulative Number of Reported Claims
|
||||||||||||||||||||||
2010
|
$
|
147,632
|
|
$
|
165,689
|
|
$
|
179,344
|
|
$
|
177,951
|
|
$
|
176,653
|
|
$
|
172,493
|
|
$
|
174,796
|
|
$
|
177,757
|
|
$
|
182,717
|
|
$
|
182,860
|
|
|
$
|
62
|
|
4
|
2011
|
—
|
|
179,818
|
|
165,291
|
|
187,074
|
|
189,988
|
|
176,936
|
|
173,309
|
|
176,606
|
|
175,689
|
|
176,230
|
|
|
2,187
|
|
4
|
|||||||||||
2012
|
—
|
|
—
|
|
238,978
|
|
242,541
|
|
265,690
|
|
251,230
|
|
239,458
|
|
245,945
|
|
244,730
|
|
245,338
|
|
|
7,091
|
|
5
|
|||||||||||
2013
|
—
|
|
—
|
|
—
|
|
269,993
|
|
248,080
|
|
243,887
|
|
249,797
|
|
271,469
|
|
280,018
|
|
285,262
|
|
|
14,062
|
|
6
|
|||||||||||
2014
|
—
|
|
—
|
|
—
|
|
—
|
|
253,992
|
|
247,373
|
|
260,498
|
|
244,454
|
|
239,982
|
|
258,781
|
|
|
26,194
|
|
6
|
|||||||||||
2015
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
260,216
|
|
258,780
|
|
275,608
|
|
276,842
|
|
292,401
|
|
|
37,634
|
|
7
|
|||||||||||
2016
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
311,099
|
|
325,241
|
|
361,996
|
|
402,929
|
|
|
56,934
|
|
8
|
|||||||||||
2017
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
333,758
|
|
332,864
|
|
339,021
|
|
|
112,457
|
|
9
|
|||||||||||
2018
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
335,728
|
|
322,952
|
|
|
168,475
|
|
9
|
|||||||||||
2019
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
337,228
|
|
|
259,157
|
|
9
|
|||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
$
|
2,843,002
|
|
|
|
|
Cumulative Paid Claims and Claim Adjustment Expenses, Net of Reinsurance
|
||||||||||||||||||||||||||||||
For the Year Ended December 31,
|
||||||||||||||||||||||||||||||
|
Unaudited
|
|
||||||||||||||||||||||||||||
Accident Year
|
2010
|
2011
|
2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
2019
|
||||||||||||||||||||
2010
|
$
|
14,806
|
|
$
|
58,851
|
|
$
|
108,438
|
|
$
|
129,619
|
|
$
|
144,336
|
|
$
|
160,466
|
|
$
|
164,894
|
|
$
|
171,206
|
|
$
|
178,756
|
|
$
|
179,865
|
|
2011
|
—
|
|
18,726
|
|
62,305
|
|
102,898
|
|
134,253
|
|
150,487
|
|
158,678
|
|
166,949
|
|
168,526
|
|
170,205
|
|
||||||||||
2012
|
—
|
|
—
|
|
21,697
|
|
86,734
|
|
128,245
|
|
159,285
|
|
190,584
|
|
214,821
|
|
223,988
|
|
232,160
|
|
||||||||||
2013
|
—
|
|
—
|
|
—
|
|
23,939
|
|
63,951
|
|
119,567
|
|
177,525
|
|
207,020
|
|
249,005
|
|
258,394
|
|
||||||||||
2014
|
—
|
|
—
|
|
—
|
|
—
|
|
19,446
|
|
83,694
|
|
138,678
|
|
176,134
|
|
199,337
|
|
216,228
|
|
||||||||||
2015
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
20,415
|
|
85,470
|
|
139,835
|
|
187,664
|
|
216,575
|
|
||||||||||
2016
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
28,631
|
|
102,661
|
|
201,854
|
|
255,841
|
|
||||||||||
2017
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
36,579
|
|
96,456
|
|
163,003
|
|
||||||||||
2018
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
28,231
|
|
99,789
|
|
||||||||||
2019
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
31,790
|
|
||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
$
|
1,823,850
|
|
|||||||||||||||||
|
Reserves for loss and loss adjustment expenses before 2010, net of reinsurance
|
|
15,104
|
|
||||||||||||||||||||||||||
|
Reserves for loss and loss adjustment expenses, net of reinsurance
|
|
$
|
1,034,256
|
|
Loss and Loss Expenses Incurred, Net of Reinsurance
|
|
As of December 31, 2019
|
|||||||||||||||||||||||||||||||||
For the Year Ended December 31,
|
|
|
|
||||||||||||||||||||||||||||||||
|
Unaudited
|
|
|
|
|
||||||||||||||||||||||||||||||
Accident Year
|
2010
|
2011
|
2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
2019
|
|
IBNR
|
Cumulative Number of Reported Claims
|
||||||||||||||||||||||
2010
|
$
|
310,591
|
|
$
|
320,098
|
|
$
|
330,224
|
|
$
|
328,901
|
|
$
|
332,748
|
|
$
|
331,615
|
|
$
|
330,586
|
|
$
|
330,297
|
|
$
|
329,976
|
|
$
|
329,768
|
|
|
$
|
144
|
|
37
|
2011
|
—
|
|
312,224
|
|
320,920
|
|
328,320
|
|
331,732
|
|
341,394
|
|
341,200
|
|
342,094
|
|
343,566
|
|
343,433
|
|
|
964
|
|
37
|
|||||||||||
2012
|
—
|
|
—
|
|
314,309
|
|
326,831
|
|
342,588
|
|
355,609
|
|
364,084
|
|
364,328
|
|
366,541
|
|
365,806
|
|
|
807
|
|
37
|
|||||||||||
2013
|
—
|
|
—
|
|
—
|
|
327,514
|
|
349,136
|
|
368,894
|
|
376,860
|
|
367,264
|
|
366,822
|
|
365,953
|
|
|
1,592
|
|
39
|
|||||||||||
2014
|
—
|
|
—
|
|
—
|
|
—
|
|
363,913
|
|
385,251
|
|
418,161
|
|
416,123
|
|
413,589
|
|
413,424
|
|
|
4,385
|
|
42
|
|||||||||||
2015
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
389,660
|
|
417,053
|
|
423,180
|
|
431,376
|
|
432,415
|
|
|
7,808
|
|
46
|
|||||||||||
2016
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
431,261
|
|
430,911
|
|
442,210
|
|
443,268
|
|
|
18,162
|
|
45
|
|||||||||||
2017
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
430,768
|
|
428,708
|
|
430,499
|
|
|
31,607
|
|
41
|
|||||||||||
2018
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
442,788
|
|
462,756
|
|
|
67,700
|
|
40
|
|||||||||||
2019
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
483,206
|
|
|
162,432
|
|
37
|
|||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
$
|
4,070,528
|
|
|
|
|
Cumulative Paid Claims and Claim Adjustment Expenses, Net of Reinsurance
|
||||||||||||||||||||||||||||||
For the Year Ended December 31,
|
||||||||||||||||||||||||||||||
|
Unaudited
|
|
||||||||||||||||||||||||||||
Accident Year
|
2010
|
2011
|
2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
2019
|
||||||||||||||||||||
2010
|
$
|
136,029
|
|
$
|
208,790
|
|
$
|
263,639
|
|
$
|
295,355
|
|
$
|
313,262
|
|
$
|
324,997
|
|
$
|
326,804
|
|
$
|
327,240
|
|
$
|
327,863
|
|
$
|
328,006
|
|
2011
|
—
|
|
135,350
|
|
211,756
|
|
262,685
|
|
296,370
|
|
321,814
|
|
333,987
|
|
338,325
|
|
340,360
|
|
340,799
|
|
||||||||||
2012
|
—
|
|
—
|
|
136,844
|
|
215,214
|
|
273,446
|
|
312,342
|
|
344,326
|
|
355,631
|
|
360,681
|
|
361,755
|
|
||||||||||
2013
|
—
|
|
—
|
|
—
|
|
142,929
|
|
218,596
|
|
267,253
|
|
322,441
|
|
343,556
|
|
353,424
|
|
362,152
|
|
||||||||||
2014
|
—
|
|
—
|
|
—
|
|
—
|
|
155,572
|
|
237,665
|
|
328,125
|
|
365,376
|
|
394,063
|
|
402,013
|
|
||||||||||
2015
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
160,024
|
|
265,083
|
|
324,976
|
|
370,037
|
|
397,666
|
|
||||||||||
2016
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
184,516
|
|
279,381
|
|
341,423
|
|
390,359
|
|
||||||||||
2017
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
180,755
|
|
267,587
|
|
327,135
|
|
||||||||||
2018
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
180,162
|
|
281,651
|
|
||||||||||
2019
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
185,344
|
|
||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
$
|
3,376,880
|
|
|||||||||||||||||
|
|
Reserves for loss and loss adjustment expenses before 2010, net of reinsurance
|
|
4,313
|
|
|||||||||||||||||||||||||
|
|
Reserves for loss and loss adjustment expenses, net of reinsurance
|
|
$
|
697,961
|
|
Loss and Loss Expenses Incurred, Net of Reinsurance
|
|
As of December 31, 2019
|
|||||||||||||||||||||||||||||||||
For the Year Ended December 31,
|
|
|
|
||||||||||||||||||||||||||||||||
|
Unaudited
|
|
|
|
|
||||||||||||||||||||||||||||||
Accident Year
|
2010
|
2011
|
2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
2019
|
|
IBNR
|
Cumulative Number of Reported Claims
|
||||||||||||||||||||||
2010
|
$
|
385,319
|
|
$
|
370,080
|
|
$
|
358,254
|
|
$
|
355,602
|
|
$
|
345,937
|
|
$
|
346,380
|
|
$
|
346,493
|
|
$
|
346,074
|
|
$
|
345,777
|
|
$
|
345,546
|
|
|
$
|
233
|
|
19
|
2011
|
—
|
|
478,520
|
|
471,678
|
|
463,253
|
|
460,030
|
|
457,182
|
|
450,325
|
|
449,529
|
|
451,410
|
|
451,064
|
|
|
649
|
|
21
|
|||||||||||
2012
|
—
|
|
—
|
|
529,564
|
|
537,716
|
|
538,141
|
|
533,491
|
|
507,509
|
|
506,464
|
|
508,354
|
|
507,416
|
|
|
2,229
|
|
28
|
|||||||||||
2013
|
—
|
|
—
|
|
—
|
|
576,784
|
|
586,382
|
|
577,353
|
|
553,680
|
|
552,192
|
|
548,673
|
|
546,766
|
|
|
3,405
|
|
30
|
|||||||||||
2014
|
—
|
|
—
|
|
—
|
|
—
|
|
707,121
|
|
712,320
|
|
664,718
|
|
663,342
|
|
664,169
|
|
664,416
|
|
|
4,366
|
|
34
|
|||||||||||
2015
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
743,454
|
|
731,950
|
|
728,186
|
|
726,748
|
|
718,506
|
|
|
10,676
|
|
37
|
|||||||||||
2016
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
773,945
|
|
777,270
|
|
764,278
|
|
758,881
|
|
|
12,383
|
|
40
|
|||||||||||
2017
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
753,512
|
|
753,803
|
|
748,451
|
|
|
18,189
|
|
46
|
|||||||||||
2018
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
760,474
|
|
750,780
|
|
|
33,738
|
|
52
|
|||||||||||
2019
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
726,820
|
|
|
168,528
|
|
42
|
|||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
$
|
6,218,646
|
|
|
|
|
Cumulative Paid Claims and Claim Adjustment Expenses, Net of Reinsurance
|
||||||||||||||||||||||||||||||
For the Year Ended December 31,
|
||||||||||||||||||||||||||||||
|
Unaudited
|
|
||||||||||||||||||||||||||||
Accident Year
|
2010
|
2011
|
2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
2019
|
||||||||||||||||||||
2010
|
$
|
245,037
|
|
$
|
325,163
|
|
$
|
337,688
|
|
$
|
346,622
|
|
$
|
340,066
|
|
$
|
342,773
|
|
$
|
343,899
|
|
$
|
344,887
|
|
$
|
344,908
|
|
$
|
344,989
|
|
2011
|
—
|
|
303,016
|
|
417,730
|
|
436,718
|
|
440,937
|
|
445,234
|
|
446,944
|
|
447,538
|
|
450,352
|
|
450,439
|
|
||||||||||
2012
|
—
|
|
—
|
|
281,830
|
|
454,731
|
|
504,954
|
|
515,520
|
|
498,207
|
|
499,355
|
|
503,614
|
|
504,342
|
|
||||||||||
2013
|
—
|
|
—
|
|
—
|
|
314,122
|
|
488,140
|
|
536,630
|
|
531,474
|
|
538,304
|
|
539,553
|
|
540,158
|
|
||||||||||
2014
|
—
|
|
—
|
|
—
|
|
—
|
|
372,670
|
|
599,119
|
|
613,530
|
|
632,796
|
|
648,072
|
|
655,332
|
|
||||||||||
2015
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
395,440
|
|
612,369
|
|
668,012
|
|
690,037
|
|
699,770
|
|
||||||||||
2016
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
417,424
|
|
671,219
|
|
712,815
|
|
728,122
|
|
||||||||||
2017
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
445,560
|
|
690,029
|
|
718,949
|
|
||||||||||
2018
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
415,206
|
|
662,185
|
|
||||||||||
2019
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
405,213
|
|
||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
$
|
5,709,499
|
|
|||||||||||||||||
|
Reserves for loss and loss adjustment expenses before 2010, net of reinsurance
|
|
1,019
|
|
||||||||||||||||||||||||||
|
Reserves for loss and loss adjustment expenses, net of reinsurance
|
|
$
|
510,166
|
|
Loss and Loss Expenses Incurred, Net of Reinsurance
|
|
As of December 31, 2019
|
||||||||||||||||||||||||||||||||
For the Year Ended December 31,
|
|
|
||||||||||||||||||||||||||||||||
|
Unaudited
|
|
|
|
||||||||||||||||||||||||||||||
Accident Year
|
2010
|
2011
|
2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
2019
|
|
IBNR
|
||||||||||||||||||||||
2010
|
$
|
290,438
|
|
$
|
298,265
|
|
$
|
288,146
|
|
$
|
276,049
|
|
$
|
265,455
|
|
$
|
256,271
|
|
$
|
252,900
|
|
$
|
250,596
|
|
$
|
249,599
|
|
$
|
249,472
|
|
|
$
|
14,322
|
|
2011
|
—
|
|
290,770
|
|
309,836
|
|
304,352
|
|
299,244
|
|
307,969
|
|
304,780
|
|
296,280
|
|
292,762
|
|
299,130
|
|
|
16,563
|
|
|||||||||||
2012
|
—
|
|
—
|
|
331,991
|
|
335,867
|
|
330,882
|
|
325,224
|
|
333,982
|
|
336,492
|
|
334,588
|
|
331,270
|
|
|
17,481
|
|
|||||||||||
2013
|
—
|
|
—
|
|
—
|
|
319,491
|
|
270,382
|
|
275,539
|
|
285,032
|
|
293,686
|
|
299,224
|
|
303,568
|
|
|
25,073
|
|
|||||||||||
2014
|
—
|
|
—
|
|
—
|
|
—
|
|
320,579
|
|
320,226
|
|
319,573
|
|
331,339
|
|
325,497
|
|
324,941
|
|
|
34,043
|
|
|||||||||||
2015
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
259,922
|
|
232,272
|
|
230,856
|
|
252,959
|
|
293,718
|
|
|
43,622
|
|
|||||||||||
2016
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
241,533
|
|
253,501
|
|
246,019
|
|
268,508
|
|
|
51,973
|
|
|||||||||||
2017
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
232,010
|
|
221,769
|
|
239,788
|
|
|
85,671
|
|
|||||||||||
2018
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
222,100
|
|
211,227
|
|
|
109,087
|
|
|||||||||||
2019
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
237,412
|
|
|
196,623
|
|
|||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
$
|
2,759,034
|
|
|
|
Cumulative Paid Claims and Claim Adjustment Expenses, Net of Reinsurance
|
||||||||||||||||||||||||||||||
For the Year Ended December 31,
|
||||||||||||||||||||||||||||||
|
Unaudited
|
|
||||||||||||||||||||||||||||
Accident Year
|
2010
|
2011
|
2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
2019
|
||||||||||||||||||||
2010
|
$
|
17,814
|
|
$
|
45,338
|
|
$
|
76,845
|
|
$
|
105,912
|
|
$
|
128,476
|
|
$
|
150,665
|
|
$
|
166,361
|
|
$
|
181,857
|
|
$
|
191,532
|
|
$
|
198,822
|
|
2011
|
—
|
|
17,812
|
|
52,231
|
|
97,476
|
|
133,808
|
|
169,219
|
|
192,724
|
|
208,347
|
|
220,566
|
|
232,452
|
|
||||||||||
2012
|
—
|
|
—
|
|
22,329
|
|
62,037
|
|
111,538
|
|
152,590
|
|
187,196
|
|
219,637
|
|
241,318
|
|
257,010
|
|
||||||||||
2013
|
—
|
|
—
|
|
—
|
|
28,910
|
|
63,718
|
|
110,306
|
|
144,405
|
|
178,174
|
|
205,716
|
|
226,083
|
|
||||||||||
2014
|
—
|
|
—
|
|
—
|
|
—
|
|
21,280
|
|
68,992
|
|
115,873
|
|
155,207
|
|
198,196
|
|
227,684
|
|
||||||||||
2015
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
17,866
|
|
48,445
|
|
91,198
|
|
141,348
|
|
178,657
|
|
||||||||||
2016
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
19,895
|
|
61,787
|
|
100,262
|
|
140,411
|
|
||||||||||
2017
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
16,473
|
|
40,138
|
|
69,465
|
|
||||||||||
2018
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
11,092
|
|
41,018
|
|
||||||||||
2019
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
14,574
|
|
||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
$
|
1,586,176
|
|
|||||||||||||||||
|
Reserves for loss and loss adjustment expenses before 2010, net of reinsurance
|
|
383,199
|
|
||||||||||||||||||||||||||
|
|
Reserves for loss and loss adjustment expenses, net of reinsurance
|
|
$
|
1,556,057
|
|
Loss and Loss Expenses Incurred, Net of Reinsurance
|
|
As of December 31, 2019
|
||||||||||||||||||||||||||||||||
For the Year Ended December 31,
|
|
|
||||||||||||||||||||||||||||||||
|
Unaudited
|
|
|
|
||||||||||||||||||||||||||||||
Accident Year
|
2010
|
2011
|
2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
2019
|
|
IBNR
|
||||||||||||||||||||||
2010
|
$
|
135,639
|
|
$
|
123,497
|
|
$
|
120,272
|
|
$
|
118,712
|
|
$
|
102,424
|
|
$
|
104,732
|
|
$
|
100,065
|
|
$
|
94,986
|
|
$
|
95,374
|
|
$
|
99,944
|
|
|
$
|
15,731
|
|
2011
|
—
|
|
88,650
|
|
93,993
|
|
98,051
|
|
89,031
|
|
85,299
|
|
83,850
|
|
78,246
|
|
74,109
|
|
72,091
|
|
|
14,075
|
|
|||||||||||
2012
|
—
|
|
—
|
|
72,366
|
|
73,230
|
|
73,670
|
|
73,653
|
|
72,441
|
|
67,878
|
|
69,361
|
|
67,205
|
|
|
11,249
|
|
|||||||||||
2013
|
—
|
|
—
|
|
—
|
|
63,995
|
|
50,355
|
|
46,025
|
|
42,419
|
|
38,551
|
|
35,120
|
|
31,752
|
|
|
12,626
|
|
|||||||||||
2014
|
—
|
|
—
|
|
—
|
|
—
|
|
63,561
|
|
57,558
|
|
49,478
|
|
45,758
|
|
41,671
|
|
42,541
|
|
|
15,347
|
|
|||||||||||
2015
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
69,977
|
|
57,897
|
|
50,099
|
|
45,115
|
|
39,682
|
|
|
19,040
|
|
|||||||||||
2016
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
72,657
|
|
70,281
|
|
71,404
|
|
64,957
|
|
|
23,676
|
|
|||||||||||
2017
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
76,701
|
|
80,508
|
|
70,749
|
|
|
29,999
|
|
|||||||||||
2018
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
77,820
|
|
72,505
|
|
|
36,930
|
|
|||||||||||
2019
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
78,929
|
|
|
48,526
|
|
|||||||||||
Total
|
|
|
|
|
|
|
|
|
|
$
|
640,355
|
|
|
|
Cumulative Paid Claims and Claim Adjustment Expenses, Net of Reinsurance
|
||||||||||||||||||||||||||||||
For the Year Ended December 31,
|
||||||||||||||||||||||||||||||
|
Unaudited
|
|
||||||||||||||||||||||||||||
Accident Year
|
2010
|
2011
|
2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
2019
|
||||||||||||||||||||
2010
|
$
|
2,867
|
|
$
|
4,003
|
|
$
|
5,571
|
|
$
|
8,701
|
|
$
|
11,260
|
|
$
|
11,699
|
|
$
|
14,261
|
|
$
|
18,821
|
|
$
|
22,355
|
|
$
|
28,431
|
|
2011
|
—
|
|
2,593
|
|
4,848
|
|
6,395
|
|
14,042
|
|
15,684
|
|
18,638
|
|
20,164
|
|
21,463
|
|
23,686
|
|
||||||||||
2012
|
—
|
|
—
|
|
1,127
|
|
6,097
|
|
10,815
|
|
11,167
|
|
13,234
|
|
15,738
|
|
17,982
|
|
20,004
|
|
||||||||||
2013
|
—
|
|
—
|
|
—
|
|
647
|
|
1,897
|
|
2,158
|
|
3,008
|
|
3,396
|
|
4,418
|
|
5,349
|
|
||||||||||
2014
|
—
|
|
—
|
|
—
|
|
—
|
|
377
|
|
1,729
|
|
3,354
|
|
4,175
|
|
5,808
|
|
7,595
|
|
||||||||||
2015
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
2,069
|
|
2,481
|
|
3,272
|
|
4,099
|
|
4,416
|
|
||||||||||
2016
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
2,498
|
|
4,783
|
|
5,573
|
|
5,928
|
|
||||||||||
2017
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
6,282
|
|
12,810
|
|
15,356
|
|
||||||||||
2018
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
6,141
|
|
8,230
|
|
||||||||||
2019
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
6,241
|
|
||||||||||
Total
|
|
|
|
|
|
|
|
|
|
$
|
125,236
|
|
||||||||||||||||||
|
Reserves for loss and loss adjustment expenses before 2010, net of reinsurance
|
|
765,323
|
|
||||||||||||||||||||||||||
|
Reserves for loss and loss adjustment expenses, net of reinsurance
|
|
$
|
1,280,442
|
|
Loss and Loss Expenses Incurred, Net of Reinsurance
|
|
As of December 31, 2019
|
||||||||||||||||||||||||||||||||
For the Year Ended December 31,
|
|
|
||||||||||||||||||||||||||||||||
|
Unaudited
|
|
|
|
||||||||||||||||||||||||||||||
Accident Year
|
2010
|
2011
|
2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
2019
|
|
IBNR
|
||||||||||||||||||||||
2010
|
$
|
58,367
|
|
$
|
55,399
|
|
$
|
52,306
|
|
$
|
51,186
|
|
$
|
51,230
|
|
$
|
50,694
|
|
$
|
50,571
|
|
$
|
50,398
|
|
$
|
50,630
|
|
$
|
50,362
|
|
|
$
|
208
|
|
2011
|
—
|
|
95,201
|
|
87,837
|
|
84,914
|
|
86,326
|
|
84,791
|
|
84,522
|
|
84,246
|
|
84,651
|
|
84,432
|
|
|
490
|
|
|||||||||||
2012
|
—
|
|
—
|
|
103,833
|
|
94,661
|
|
86,330
|
|
85,334
|
|
83,814
|
|
83,822
|
|
84,746
|
|
84,555
|
|
|
1,032
|
|
|||||||||||
2013
|
—
|
|
—
|
|
—
|
|
141,563
|
|
112,684
|
|
114,123
|
|
111,945
|
|
112,579
|
|
111,895
|
|
109,699
|
|
|
643
|
|
|||||||||||
2014
|
—
|
|
—
|
|
—
|
|
—
|
|
113,126
|
|
96,636
|
|
97,279
|
|
100,011
|
|
99,250
|
|
98,912
|
|
|
1,685
|
|
|||||||||||
2015
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
127,259
|
|
117,563
|
|
131,755
|
|
130,391
|
|
129,492
|
|
|
2,478
|
|
|||||||||||
2016
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
168,129
|
|
174,570
|
|
181,757
|
|
181,002
|
|
|
4,891
|
|
|||||||||||
2017
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
206,672
|
|
200,510
|
|
199,497
|
|
|
11,224
|
|
|||||||||||
2018
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
108,342
|
|
112,152
|
|
|
19,159
|
|
|||||||||||
2019
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
103,240
|
|
|
52,334
|
|
|||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
$
|
1,153,343
|
|
|
|
Cumulative Paid Claims and Claim Adjustment Expenses, Net of Reinsurance
|
||||||||||||||||||||||||||||||
For the Year Ended December 31,
|
||||||||||||||||||||||||||||||
|
Unaudited
|
|
||||||||||||||||||||||||||||
Accident Year
|
2010
|
2011
|
2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
2019
|
||||||||||||||||||||
2010
|
$
|
23,424
|
|
$
|
37,483
|
|
$
|
42,153
|
|
$
|
43,634
|
|
$
|
44,550
|
|
$
|
46,141
|
|
$
|
48,745
|
|
$
|
49,001
|
|
$
|
49,749
|
|
$
|
49,690
|
|
2011
|
—
|
|
31,402
|
|
58,702
|
|
73,142
|
|
75,778
|
|
78,357
|
|
81,560
|
|
82,094
|
|
83,169
|
|
83,250
|
|
||||||||||
2012
|
—
|
|
—
|
|
15,663
|
|
51,641
|
|
64,098
|
|
70,524
|
|
77,412
|
|
78,971
|
|
81,673
|
|
82,541
|
|
||||||||||
2013
|
—
|
|
—
|
|
—
|
|
36,578
|
|
74,573
|
|
92,619
|
|
101,539
|
|
104,326
|
|
106,045
|
|
107,606
|
|
||||||||||
2014
|
—
|
|
—
|
|
—
|
|
—
|
|
38,803
|
|
66,869
|
|
82,172
|
|
88,317
|
|
91,452
|
|
93,160
|
|
||||||||||
2015
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
53,477
|
|
89,153
|
|
109,090
|
|
118,603
|
|
122,621
|
|
||||||||||
2016
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
78,936
|
|
133,576
|
|
157,491
|
|
168,605
|
|
||||||||||
2017
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
72,132
|
|
141,389
|
|
171,745
|
|
||||||||||
2018
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
34,004
|
|
65,193
|
|
||||||||||
2019
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
23,051
|
|
||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
$
|
967,462
|
|
|||||||||||||||||
|
Reserves for loss and loss adjustment expenses before 2010, net of reinsurance
|
|
798
|
|
||||||||||||||||||||||||||
|
Reserves for loss and loss adjustment expenses, net of reinsurance
|
|
$
|
186,679
|
|
(In thousands)
|
December 31, 2019
|
|||||||||||
Undiscounted reserves for loss and loss expenses, net of reinsurance:
|
|
|||||||||||
|
|
Other liability
|
$
|
3,998,511
|
|
|||||||
|
|
Workers' compensation
|
1,870,968
|
|
||||||||
|
|
Professional liability
|
1,034,256
|
|
||||||||
|
|
Commercial automobile
|
697,961
|
|
||||||||
|
|
Short-tail lines
|
510,166
|
|
||||||||
|
|
Other
|
92,495
|
|
||||||||
|
|
Insurance
|
8,204,357
|
|
||||||||
|
|
Casualty
|
1,556,057
|
|
||||||||
|
|
Monoline excess
|
1,280,442
|
|
||||||||
|
|
Property
|
186,679
|
|
||||||||
|
|
Reinsurance & Monoline Excess
|
3,023,178
|
|
||||||||
Total undiscounted reserves for loss and loss expenses, net of reinsurance
|
$
|
11,227,535
|
|
(In thousands)
|
December 31, 2019
|
|||||||||||
Due from reinsurers on unpaid claims:
|
|
|||||||||||
|
|
Other liability
|
$
|
518,759
|
|
|||||||
|
|
Workers' compensation
|
300,966
|
|
||||||||
|
|
Professional liability
|
509,828
|
|
||||||||
|
|
Commercial automobile
|
24,486
|
|
||||||||
|
|
Short-tail lines
|
243,333
|
|
||||||||
|
|
Other
|
46,197
|
|
||||||||
|
|
Insurance
|
1,643,569
|
|
||||||||
|
|
Casualty
|
113,332
|
|
||||||||
|
|
Monoline excess
|
38,384
|
|
||||||||
|
|
Property
|
89,966
|
|
||||||||
|
|
Reinsurance & Monoline Excess
|
241,682
|
|
||||||||
Total due from reinsurers on unpaid claims
|
$
|
1,885,251
|
|
(In thousands)
|
December 31, 2019
|
|||||||||||
Loss reserve discount:
|
|
|||||||||||
|
|
Other liability
|
$
|
—
|
|
|||||||
|
|
Workers' compensation
|
(10,976
|
)
|
||||||||
|
|
Professional liability
|
—
|
|
||||||||
|
|
Commercial automobile
|
—
|
|
||||||||
|
|
Short-tail lines
|
—
|
|
||||||||
|
|
Other
|
—
|
|
||||||||
|
|
Insurance
|
(10,976
|
)
|
||||||||
|
|
Casualty
|
(107,929
|
)
|
||||||||
|
|
Monoline excess
|
(410,632
|
)
|
||||||||
|
|
Property
|
—
|
|
||||||||
|
|
Reinsurance & Monoline Excess
|
(518,561
|
)
|
||||||||
Total loss reserve discount
|
$
|
(529,537
|
)
|
|||||||||
Total gross reserves for loss and loss expenses
|
$
|
12,583,249
|
|
(In thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Net reserves at beginning of year
|
$
|
10,248,883
|
|
|
$
|
10,056,914
|
|
|
$
|
9,590,265
|
|
Net provision for losses and loss expenses:
|
|
|
|
|
|
||||||
Claims occurring during the current year (1)
|
4,057,989
|
|
|
3,926,489
|
|
|
3,963,543
|
|
|||
Increase (decrease) in estimates for claims occurring in prior years (2)
|
34,079
|
|
|
6,831
|
|
|
(5,165
|
)
|
|||
Loss reserve discount accretion
|
39,048
|
|
|
41,382
|
|
|
43,970
|
|
|||
Total
|
4,131,116
|
|
|
3,974,702
|
|
|
4,002,348
|
|
|||
Net payments for claims:
|
|
|
|
|
|
|
|
|
|||
Current year
|
985,599
|
|
|
964,808
|
|
|
1,027,405
|
|
|||
Prior year
|
2,673,803
|
|
|
2,700,077
|
|
|
2,562,550
|
|
|||
Total
|
3,659,402
|
|
|
3,664,885
|
|
|
3,589,955
|
|
|||
Foreign currency translation
|
(22,599
|
)
|
|
(117,848
|
)
|
|
54,256
|
|
|||
Net reserves at end of year
|
10,697,998
|
|
|
10,248,883
|
|
|
10,056,914
|
|
|||
Ceded reserve at end of year
|
1,885,251
|
|
|
1,717,565
|
|
|
1,613,494
|
|
|||
Gross reserves at end of year
|
$
|
12,583,249
|
|
|
$
|
11,966,448
|
|
|
$
|
11,670,408
|
|
|
|
|
|
|
|
||||||
Net change in premiums and losses occurring in prior years:
|
|
|
|
|
|
||||||
(Increase) decrease in estimates for claims occurring in prior years (2)
|
$
|
(34,079
|
)
|
|
$
|
(6,831
|
)
|
|
$
|
5,165
|
|
Retrospective premium adjustments for claims occurring in prior years (3)
|
53,511
|
|
|
45,638
|
|
|
32,162
|
|
|||
Net favorable premium and reserve development on prior years
|
$
|
19,432
|
|
|
$
|
38,807
|
|
|
$
|
37,327
|
|
(1)
|
Claims occurring during the current year are net of loss reserve discounts of $20 million, $24 million and $22 million in 2019, 2018, and 2017, respectively.
|
(2)
|
The change in estimates for claims occurring in prior years is net of loss reserve discount. On an undiscounted basis, the estimates for claims occurring in prior years increased by $19 million in 2019, and decreased $4 million and $32 million in 2018 and 2017, respectively.
|
(3)
|
For certain retrospectively rated insurance polices and reinsurance agreements, changes in loss and loss expenses for prior years are offset by additional or return premiums.
|
(In thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Written premiums:
|
|
|
|
|
|
|
|
|
|||
Direct
|
$
|
7,386,759
|
|
|
$
|
6,973,216
|
|
|
$
|
6,726,029
|
|
Assumed
|
875,459
|
|
|
729,278
|
|
|
750,934
|
|
|||
Ceded
|
(1,398,719
|
)
|
|
(1,269,267
|
)
|
|
(1,216,455
|
)
|
|||
Total net written premiums
|
$
|
6,863,499
|
|
|
$
|
6,433,227
|
|
|
$
|
6,260,508
|
|
|
|
|
|
|
|
||||||
Earned premiums:
|
|
|
|
|
|
|
|
||||
Direct
|
$
|
7,141,427
|
|
|
$
|
6,851,795
|
|
|
$
|
6,661,046
|
|
Assumed
|
820,705
|
|
|
755,759
|
|
|
812,309
|
|
|||
Ceded
|
(1,328,844
|
)
|
|
(1,236,049
|
)
|
|
(1,161,936
|
)
|
|||
Total net earned premiums
|
$
|
6,633,288
|
|
|
$
|
6,371,505
|
|
|
$
|
6,311,419
|
|
|
|
|
|
|
|
||||||
Ceded losses and loss expenses incurred
|
$
|
836,831
|
|
|
$
|
829,742
|
|
|
$
|
601,769
|
|
Ceded commission earned
|
$
|
314,191
|
|
|
$
|
268,037
|
|
|
$
|
241,983
|
|
|
|
|
|
|
Carrying Value
|
||||||||
(In thousands)
|
Interest Rate
|
|
Face Value
|
|
2019
|
|
2018
|
||||||
Senior notes due on:
|
|
|
|
|
|
|
|
|
|
|
|||
August 15, 2019
|
6.15%
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
140,568
|
|
September 15, 2019
|
7.375%
|
|
—
|
|
|
—
|
|
|
299,816
|
|
|||
September 15, 2020
|
5.375%
|
|
300,000
|
|
|
299,756
|
|
|
299,420
|
|
|||
January 1, 2022
|
8.7%
|
|
76,503
|
|
|
76,343
|
|
|
76,273
|
|
|||
March 15, 2022
|
4.625%
|
|
350,000
|
|
|
349,088
|
|
|
348,670
|
|
|||
February 15, 2037
|
6.25%
|
|
250,000
|
|
|
248,116
|
|
|
248,006
|
|
|||
August 1, 2044
|
4.75%
|
|
350,000
|
|
|
345,467
|
|
|
345,283
|
|
|||
Subsidiary debt (1) (2)
|
Various
|
|
108,804
|
|
|
108,805
|
|
|
123,992
|
|
|||
Total senior notes and other debt
|
|
|
$
|
1,435,307
|
|
|
$
|
1,427,575
|
|
|
$
|
1,882,028
|
|
Subordinated debentures due on:
|
|
|
|
|
|
|
|
||||||
April 30, 2053
|
5.625%
|
|
$
|
350,000
|
|
|
$
|
341,356
|
|
|
$
|
341,097
|
|
March 1, 2056
|
5.9%
|
|
110,000
|
|
|
106,262
|
|
|
106,159
|
|
|||
June 1, 2056
|
5.75%
|
|
290,000
|
|
|
281,777
|
|
|
281,551
|
|
|||
March 30, 2058
|
5.70%
|
|
185,000
|
|
|
178,845
|
|
|
178,684
|
|
|||
December 30, 2059
|
5.1%
|
|
300,000
|
|
|
290,464
|
|
|
—
|
|
|||
Total subordinated debentures
|
|
|
$
|
1,235,000
|
|
|
$
|
1,198,704
|
|
|
$
|
907,491
|
|
(In thousands)
|
Current
Expense
|
|
Deferred
Expense (Benefit)
|
|
Total
|
||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|||
Domestic
|
$
|
124,231
|
|
|
$
|
27,616
|
|
|
$
|
151,847
|
|
Foreign
|
9,030
|
|
|
8,058
|
|
|
17,088
|
|
|||
Total expense
|
$
|
133,261
|
|
|
$
|
35,674
|
|
|
$
|
168,935
|
|
|
|
|
|
|
|
||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|||
Domestic
|
$
|
188,712
|
|
|
$
|
(63,134
|
)
|
|
$
|
125,578
|
|
Foreign
|
13,963
|
|
|
23,487
|
|
|
37,450
|
|
|||
Total expense (benefit)
|
$
|
202,675
|
|
|
$
|
(39,647
|
)
|
|
$
|
163,028
|
|
|
|
|
|
|
|
||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|||
Domestic
|
$
|
225,694
|
|
|
$
|
(27,601
|
)
|
|
$
|
198,093
|
|
Foreign
|
8,803
|
|
|
12,537
|
|
|
21,340
|
|
|||
Total expense (benefit)
|
$
|
234,497
|
|
|
$
|
(15,064
|
)
|
|
$
|
219,433
|
|
(In thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Computed “expected” tax expense
|
$
|
179,113
|
|
|
$
|
170,540
|
|
|
$
|
270,470
|
|
Tax-exempt investment income
|
(14,666
|
)
|
|
(18,833
|
)
|
|
(37,209
|
)
|
|||
Change in valuation allowance
|
(1,945
|
)
|
|
18,576
|
|
|
11,161
|
|
|||
Impact of foreign tax rates
|
7,700
|
|
|
7,683
|
|
|
3,508
|
|
|||
State and local taxes
|
4,842
|
|
|
3,901
|
|
|
1,644
|
|
|||
Impact of change in U.S. tax rate
|
—
|
|
|
(10,950
|
)
|
|
(30,531
|
)
|
|||
Other, net
|
(6,109
|
)
|
|
(7,889
|
)
|
|
390
|
|
|||
Total expense
|
$
|
168,935
|
|
|
$
|
163,028
|
|
|
$
|
219,433
|
|
(In thousands)
|
2019
|
|
2018
|
||||
Deferred tax asset:
|
|
|
|
|
|
||
Loss reserve discounting
|
$
|
136,100
|
|
|
$
|
130,513
|
|
Unearned premiums
|
120,246
|
|
|
112,190
|
|
||
Net operating losses
|
37,147
|
|
|
37,463
|
|
||
Other-than-temporary impairments
|
8,049
|
|
|
9,910
|
|
||
Employee compensation plans
|
60,552
|
|
|
56,027
|
|
||
Other
|
63,633
|
|
|
58,809
|
|
||
Gross deferred tax asset
|
425,727
|
|
|
404,912
|
|
||
Less valuation allowance
|
(33,250
|
)
|
|
(35,195
|
)
|
||
Deferred tax asset
|
392,477
|
|
|
369,717
|
|
||
Deferred tax liability:
|
|
|
|
|
|
||
Amortization of intangibles
|
12,832
|
|
|
13,641
|
|
||
Loss reserve discounting - transition rule
|
29,697
|
|
|
41,088
|
|
||
Deferred policy acquisition costs
|
103,947
|
|
|
99,293
|
|
||
Unrealized investment gains
|
93,330
|
|
|
35,430
|
|
||
Property, furniture and equipment
|
47,082
|
|
|
39,239
|
|
||
Investment funds
|
73,083
|
|
|
51,712
|
|
||
Other
|
50,212
|
|
|
53,824
|
|
||
Deferred tax liability
|
410,183
|
|
|
334,227
|
|
||
Net deferred tax liability (asset)
|
$
|
17,706
|
|
|
$
|
(35,490
|
)
|
(In thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Net income
|
$
|
601,564
|
|
|
$
|
1,099,953
|
|
|
$
|
698,862
|
|
Statutory capital and surplus
|
$
|
6,013,062
|
|
|
$
|
5,587,930
|
|
|
$
|
5,479,603
|
|
(In thousands)
|
2019
|
|
2018
|
|
2017
|
|||
Basic
|
190,722
|
|
|
190,048
|
|
|
187,265
|
|
Diluted
|
193,521
|
|
|
192,395
|
|
|
193,527
|
|
|
2019
|
|
2018
|
|
2017
|
||
Balance, beginning of year
|
182,993,640
|
|
|
182,272,278
|
|
|
181,790,399
|
Shares issued
|
687,339
|
|
|
1,257,762
|
|
|
1,578,384
|
Shares repurchased
|
(269,072
|
)
|
|
(536,400
|
)
|
|
(1,096,505)
|
Balance, end of year
|
183,411,907
|
|
|
182,993,640
|
|
|
182,272,278
|
|
2019
|
|
2018
|
||||||||||||
(In thousands)
|
Carrying Value
|
|
Fair Value
|
|
Carrying Value
|
|
Fair Value
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Fixed maturity securities
|
$
|
14,180,961
|
|
|
$
|
14,194,955
|
|
|
$
|
13,606,812
|
|
|
$
|
13,619,620
|
|
Equity securities
|
480,620
|
|
|
480,620
|
|
|
279,006
|
|
|
279,006
|
|
||||
Arbitrage trading account
|
400,809
|
|
|
400,809
|
|
|
452,548
|
|
|
452,548
|
|
||||
Loans receivable
|
91,799
|
|
|
94,613
|
|
|
94,813
|
|
|
97,073
|
|
||||
Cash and cash equivalents
|
1,023,710
|
|
|
1,023,710
|
|
|
817,602
|
|
|
817,602
|
|
||||
Trading accounts receivable from brokers and clearing organizations
|
423,543
|
|
|
423,543
|
|
|
347,228
|
|
|
347,228
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Due to broker
|
27,116
|
|
|
27,116
|
|
|
20,144
|
|
|
20,144
|
|
||||
Trading account securities sold but not yet purchased
|
36,143
|
|
|
36,143
|
|
|
38,120
|
|
|
38,120
|
|
||||
Senior notes and other debt
|
1,427,575
|
|
|
1,582,290
|
|
|
1,882,028
|
|
|
1,968,996
|
|
||||
Subordinated debentures
|
1,198,704
|
|
|
1,274,088
|
|
|
907,491
|
|
|
840,002
|
|
|
|
Twelve Months Ended December 31, 2019
|
||
|
||||
(In thousands)
|
|
|||
Leases:
|
|
|
||
Lease cost
|
|
$
|
44,107
|
|
Cash paid for amounts included in the measurement of lease liabilities reported in operating cash flows
|
|
$
|
40,083
|
|
Right-of-use assets obtained in exchange for new lease liabilities
|
|
$
|
32,881
|
|
($ in thousands)
|
December 31, 2019
|
||
Right-of-use assets
|
$
|
193,311
|
|
Lease liabilities
|
$
|
230,338
|
|
Weighted-average remaining lease term
|
7.11 years
|
|
|
Weighted-average discount rate
|
5.97
|
%
|
(In thousands)
|
December 31, 2019
|
||
Contractual Maturities:
|
|
||
2020
|
$
|
49,293
|
|
2021
|
47,107
|
|
|
2022
|
41,652
|
|
|
2023
|
37,510
|
|
|
2024
|
31,152
|
|
|
Thereafter
|
78,820
|
|
|
Total undiscounted future minimum lease payments
|
285,534
|
|
|
Less: Discount impact
|
(55,196
|
)
|
|
Total lease liability
|
$
|
230,338
|
|
|
2019
|
|
2018
|
|
2017
|
|||
RSUs granted and unvested at beginning of period:
|
5,062,661
|
|
|
5,216,972
|
|
|
7,293,147
|
|
Granted
|
840,796
|
|
|
1,140,048
|
|
|
1,283,976
|
|
Vested
|
(1,447,522
|
)
|
|
(900,254
|
)
|
|
(2,990,261
|
)
|
Canceled
|
(331,675
|
)
|
|
(394,105
|
)
|
|
(369,890
|
)
|
RSUs granted and unvested at end of period:
|
4,124,260
|
|
|
5,062,661
|
|
|
5,216,972
|
|
(In thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Unearned compensation at beginning of year
|
$
|
129,669
|
|
|
$
|
122,910
|
|
|
$
|
115,965
|
|
RSUs granted, net of cancellations
|
53,583
|
|
|
52,204
|
|
|
52,897
|
|
|||
RSUs expensed
|
(47,329
|
)
|
|
(34,408
|
)
|
|
(38,796
|
)
|
|||
RSUs forfeitures
|
(7,533
|
)
|
|
(11,037
|
)
|
|
(7,156
|
)
|
|||
Unearned compensation at end of year
|
$
|
128,390
|
|
|
$
|
129,669
|
|
|
$
|
122,910
|
|
|
Units Outstanding
|
Maximum Value
|
Inception to date earned through December 31, 2019 on outstanding units
|
|||||
2015 grant
|
179,250
|
|
$
|
17,925,000
|
|
$
|
17,925,000
|
|
2016 grant
|
199,500
|
|
19,950,000
|
|
15,243,000
|
|
||
2017 grant
|
210,000
|
|
21,000,000
|
|
10,938,900
|
|
||
2018 grant
|
215,250
|
|
21,525,000
|
|
7,501,463
|
|
||
2019 grant
|
228,750
|
|
22,875,000
|
|
3,068,338
|
|
(In thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
2013 grant
|
$
|
—
|
|
|
$
|
(1,124
|
)
|
|
$
|
7,667
|
|
2014 grant
|
(558
|
)
|
|
3,227
|
|
|
3,167
|
|
|||
2015 grant
|
3,319
|
|
|
5,170
|
|
|
3,667
|
|
|||
2016 grant
|
3,548
|
|
|
5,148
|
|
|
3,601
|
|
|||
2017 grant
|
3,432
|
|
|
4,700
|
|
|
3,162
|
|
|||
2018 grant
|
3,310
|
|
|
4,317
|
|
|
—
|
|
|||
2019 grant
|
3,068
|
|
|
—
|
|
|
—
|
|
|||
Total
|
$
|
16,119
|
|
|
$
|
21,438
|
|
|
$
|
21,264
|
|
(In thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Amortization of deferred policy acquisition costs
|
$
|
1,001,611
|
|
|
$
|
915,246
|
|
|
$
|
1,111,489
|
|
Insurance operating expenses
|
1,088,690
|
|
|
1,183,635
|
|
|
989,535
|
|
|||
Insurance service expenses
|
101,317
|
|
|
118,357
|
|
|
129,776
|
|
|||
Net foreign currency (gains) losses
|
(30,715
|
)
|
|
(27,067
|
)
|
|
15,267
|
|
|||
Other costs and expenses
|
201,179
|
|
|
193,050
|
|
|
190,865
|
|
|||
Total
|
$
|
2,362,082
|
|
|
$
|
2,383,221
|
|
|
$
|
2,436,932
|
|
•
|
Insurance - predominantly commercial insurance business, including excess and surplus lines, admitted lines and specialty personal lines throughout the United States, as well as insurance business in the United Kingdom, Continental Europe, South America, Canada, Mexico, Scandinavia, Asia and Australia.
|
•
|
Reinsurance & Monoline Excess - reinsurance business on a facultative and treaty basis, primarily in the United States, United Kingdom, Continental Europe, Australia, the Asia-Pacific region and South Africa, as well as operations that solely retain risk on an excess basis.
|
|
Revenues
|
|
|
|
|
||||||||||||||||||
(In thousands)
|
Earned
Premiums (1)
|
|
Investment
Income
|
|
Other
|
|
Total (2)
|
|
Pre-Tax
Income
(Loss)
|
|
Net
Income
(Loss)
to Common Stockholders
|
||||||||||||
Year ended December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Insurance
|
$
|
5,919,819
|
|
|
$
|
429,405
|
|
|
$
|
47,850
|
|
|
$
|
6,397,074
|
|
|
$
|
814,862
|
|
|
$
|
650,510
|
|
Reinsurance & Monoline Excess
|
713,469
|
|
|
164,082
|
|
|
—
|
|
|
877,551
|
|
|
189,188
|
|
|
152,046
|
|
||||||
Corporate, other and eliminations (3)
|
—
|
|
|
52,127
|
|
|
454,741
|
|
|
506,868
|
|
|
(271,833
|
)
|
|
(215,967
|
)
|
||||||
Net investment gains
|
—
|
|
|
—
|
|
|
120,703
|
|
|
120,703
|
|
|
120,703
|
|
|
95,355
|
|
||||||
Consolidated
|
$
|
6,633,288
|
|
|
$
|
645,614
|
|
|
$
|
623,294
|
|
|
$
|
7,902,196
|
|
|
$
|
852,920
|
|
|
$
|
681,944
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Year ended December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Insurance
|
$
|
5,702,073
|
|
|
$
|
433,490
|
|
|
$
|
72,727
|
|
|
$
|
6,208,290
|
|
|
$
|
717,154
|
|
|
$
|
571,381
|
|
Reinsurance & Monoline Excess
|
669,432
|
|
|
179,534
|
|
|
—
|
|
|
848,966
|
|
|
201,001
|
|
|
160,791
|
|
||||||
Corporate, other and eliminations (3)
|
—
|
|
|
61,211
|
|
|
418,696
|
|
|
479,907
|
|
|
(260,549
|
)
|
|
(213,469
|
)
|
||||||
Net investment gains
|
—
|
|
|
—
|
|
|
154,488
|
|
|
154,488
|
|
|
154,488
|
|
|
122,046
|
|
||||||
Consolidated
|
$
|
6,371,505
|
|
|
$
|
674,235
|
|
|
$
|
645,911
|
|
|
$
|
7,691,651
|
|
|
$
|
812,094
|
|
|
$
|
640,749
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Year ended December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Insurance
|
$
|
5,549,403
|
|
|
$
|
366,862
|
|
|
$
|
86,865
|
|
|
$
|
6,003,130
|
|
|
$
|
623,746
|
|
|
$
|
437,953
|
|
Reinsurance & Monoline Excess
|
762,016
|
|
|
160,462
|
|
|
—
|
|
|
922,478
|
|
|
117,131
|
|
|
90,358
|
|
||||||
Corporate, other and eliminations (3)
|
—
|
|
|
48,464
|
|
|
374,834
|
|
|
423,298
|
|
|
(303,965
|
)
|
|
(197,525
|
)
|
||||||
Net investment gains
|
—
|
|
|
—
|
|
|
335,858
|
|
|
335,858
|
|
|
335,858
|
|
|
218,308
|
|
||||||
Consolidated
|
$
|
6,311,419
|
|
|
$
|
575,788
|
|
|
$
|
797,557
|
|
|
$
|
7,684,764
|
|
|
$
|
772,770
|
|
|
$
|
549,094
|
|
(In thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Insurance
|
|
|
|
|
|
|
|
|
|
|||
Other liability
|
|
$
|
2,063,401
|
|
|
$
|
1,912,071
|
|
|
$
|
1,843,826
|
|
Workers' compensation
|
|
1,301,980
|
|
|
1,327,206
|
|
|
1,324,801
|
|
|||
Short-tail lines
|
|
1,223,902
|
|
|
1,184,447
|
|
|
1,184,465
|
|
|||
Commercial automobile
|
|
750,051
|
|
|
722,236
|
|
|
650,441
|
|
|||
Professional liability
|
|
580,485
|
|
|
556,113
|
|
|
545,870
|
|
|||
Total Insurance
|
|
5,919,819
|
|
|
5,702,073
|
|
|
5,549,403
|
|
|||
Reinsurance & Monoline Excess
|
|
|
|
|
|
|
||||||
Casualty
|
|
405,063
|
|
|
362,886
|
|
|
377,650
|
|
|||
Monoline Excess
|
|
160,071
|
|
|
162,908
|
|
|
157,039
|
|
|||
Property
|
|
148,335
|
|
|
143,638
|
|
|
227,327
|
|
|||
Total Reinsurance & Monoline Excess
|
|
713,469
|
|
|
669,432
|
|
|
762,016
|
|
|||
Total
|
|
$
|
6,633,288
|
|
|
$
|
6,371,505
|
|
|
$
|
6,311,419
|
|
(In thousands, except per share data)
|
2019
|
||||||||||||||
Three months ended
|
March 31
|
|
June 30
|
|
September 30
|
|
December 31
|
||||||||
Revenues
|
$
|
1,937,022
|
|
|
$
|
2,023,384
|
|
|
$
|
1,965,716
|
|
|
$
|
1,976,074
|
|
Net income
|
180,722
|
|
|
216,709
|
|
|
165,208
|
|
|
119,306
|
|
||||
Net income per share (1)
|
|
|
|
|
|
|
|
||||||||
Basic (2)
|
0.95
|
|
|
1.14
|
|
|
0.87
|
|
|
0.62
|
|
||||
Diluted
|
0.94
|
|
|
1.12
|
|
|
0.85
|
|
|
0.62
|
|
|
2018
|
||||||||||||||
Three months ended
|
March 31
|
|
June 30
|
|
September 30
|
|
December 31
|
||||||||
Revenues
|
$
|
1,891,247
|
|
|
$
|
1,910,916
|
|
|
$
|
1,937,902
|
|
|
$
|
1,951,586
|
|
Net income
|
166,397
|
|
|
180,075
|
|
|
161,920
|
|
|
132,357
|
|
||||
Net income per share (1)
|
|
|
|
|
|
|
|
||||||||
Basic (2)
|
0.88
|
|
|
0.95
|
|
|
0.85
|
|
|
0.69
|
|
||||
Diluted
|
0.87
|
|
|
0.93
|
|
|
0.84
|
|
|
0.69
|
|
|
Index to Financial Statement Schedules
|
Page
|
|
||
|
||
|
||
|
||
|
Number
|
|
|
|
The Company’s Restated Certificate of Incorporation, as amended through May 10, 2004 (incorporated by reference to Exhibits 3.1 and 3.2 of the Company’s Quarterly Report on Form 10-Q (File No. 1-15202) filed with the Commission on August 6, 2003).
|
|
|
|
Amendment, dated May 11, 2004, to the Company’s Restated Certificate of Incorporation, as amended (incorporated by reference to Exhibit 3.2 of the Company’s Quarterly report on Form 10-Q (File No. 1-15202) filed with the Commission on August 5, 2004).
|
|
|
|
Amendment, dated May 16, 2006, to the Company’s Restated Certificate of Incorporation, as amended (incorporated by reference to Exhibit 3.2 of the Company’s Current Report on Form 8-K (File No. 1-15202) filed with the Commission on May 17, 2006).
|
|
|
|
Amended and Restated By-Laws (incorporated by reference to Exhibit 3 (ii) of the Company’s Current Report on Form 8-K (File No. 1-15202) filed with the Commission on August 5, 2015).
|
|
|
|
Description of Registrant’s Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934
|
|
|
|
Indenture, dated as of February 14, 2003, between the Company and The Bank of New York, as trustee (incorporated by reference to Exhibit 4.1 of the Company’s Annual Report on Form 10-K (File No. 1-15202) filed with the Commission of March 31, 2003).
|
|
|
|
Fifth Supplemental Indenture, dated as of February 9, 2007, between the Company and The Bank of New York, as Trustee, relating to $250,000,000 principal amount of the Company’s 6.25% Senior Notes due 2037, including form of the Notes as Exhibit A (incorporated by reference to Exhibit 4.7 of the Company’s Annual Report on Form 10-K (File No. 1-15202) filed with the Commission on March 1, 2007).
|
|
|
|
Seventh Supplemental Indenture, dated as of September 16, 2010, between the Company and The Bank of New York Mellon, as Trustee, relating to $300,000,000 principal amount of the Company’s 5.375% Senior Notes due 2020, including form of the Notes as Exhibit A (incorporated by reference to Exhibit 4.2 of the Company’s Current Report on Form 8-K (File No. 1-15202) filed with the Commission on September 16, 2010).
|
|
|
|
Eighth Supplemental Indenture, dated as of March 16, 2012, between the Company and The Bank of New York Mellon, as Trustee, relating to $350,000,000 principal amount of the Company’s 4.625% Senior Notes due 2022, including form of the Notes as Exhibit A (incorporated by reference to Exhibit 4.2 of the Company's Current Report on Form 8-K (File No. 1-15202) filed with the Commission on March 16, 2012).
|
|
|
|
Ninth Supplemental Indenture, dated as of August 6, 2014, between the Company and The Bank of New York Mellon, as Trustee, relating to $350,000,000 principal amount of the Company’s 4.75% Senior Notes due 2044, including form of the Notes as Exhibit A (incorporated by reference to Exhibit 4.2 of the Company's Current Report on Form 8-K (File No. 1-15202) filed with the Commission on August 6, 2014).
|
|
|
|
Subordinated Indenture, dated as of May 2, 2013, between the Company and The Bank of New York Mellon, as Trustee (incorporated by reference to Exhibit 4.1 of the Company's Current Report on Form 8-K (File No. 1-15202) filed with the Commission on May 2, 2013).
|
|
|
|
First Supplemental Indenture, dated as of May 2, 2013, between the Company and The Bank of New York Mellon, as Trustee, relating to $350,000,000 principal amount of the Company's 5.625% Subordinated Debentures due 2053, including the form of the Securities as Exhibit A (incorporated by reference to Exhibit 4.2 of the Company's Current Report on Form 8-K (File No. 1-15202) filed with the Commission on May 2, 2013).
|
|
|
|
(4.9)
|
Subordinated Indenture, dated as of March 1, 2016, between the Company and The Bank of New York Mellon, as Trustee (incorporated by reference to Exhibit 4.1 of the Company's Current Report on Form 8-K (File No. 1-15202) filed with the Commission on March 1, 2016).
|
|
|
(4.10)
|
First Supplemental Indenture, dated as of March 1, 2016, between the Company and The Bank of New York Mellon, as Trustee, relating to $110,000,000 principal amount of the Company's 5.9% Subordinated Debentures due 2056, including the form of the Securities as Exhibit A (incorporated by reference to Exhibit 4.2 of the Company's Current Report on Form 8-K (File No. 1-15202) filed with the Commission on March 1, 2016).
|
|
|
(4.11)
|
Second Supplemental Indenture, dated as of May 25, 2016, between the Company and The Bank of New York Mellon, as Trustee, relating to $290,000,000 principal amount of the Company's 5.75% Subordinated Debentures due 2056, including the form of the Securities as Exhibit A (incorporated by reference to Exhibit 4.2 of the Company's Current Report on Form 8-K (File No. 1-15202) filed with the Commission on May 25, 2016).
|
|
|
(4.12)
|
Subordinated Indenture, dated as of March 26, 2018, between the Company and The Bank of New York Mellon, as Trustee (incorporated by reference to Exhibit 4.1 of the Company’s Current Report on Form 8-K (File No. 1-15202) filed with the Commission on March 26, 2018).
|
|
|
First Supplemental Indenture, dated as of March 26, 2018, between the Company and The Bank of New York Mellon, as Trustee, relating to $175,000,000 principal amount of the Company’s 5.7% Subordinated Debentures due 2058, including the form of the Securities as Exhibit A (incorporated by reference to Exhibit 4.2 of the Company’s Current Report on Form 8-K (File No. 1-15202) filed with the Commission on March 26, 2018).
|
|
|
|
Second Supplemental Indenture, dated as of December 16, 2019, between the Company and the Bank of New York Mellon, as Trustee, relating to $300,000,000 principal amount of the Company's 5.10% Subordinated Debentures due 2059, including the form of the Securities as Exhibit A (incorporated by reference to Exhibit 4.2 of the Company's Current Report on Form 8-K (File No. 1-15202) filed with the Commission on December 16, 2019)
|
|
|
|
(4.15)
|
The instruments defining the rights of holders of the other long term debt securities of the Company are omitted pursuant to Section (b)(4)(iii)(A) of Item 601 of Regulation S-K. The Company agrees to furnish supplementally copies of these instruments to the Commission upon request.
|
|
|
W. R. Berkley Corporation 2018 Stock Incentive Plan (incorporated by reference to Annex A of the Company’s 2018 Proxy Statement (File No. 1-15202) filed with the Commission on April 19, 2018).
|
|
|
|
Form of Restricted Stock Unit Agreement for grant of April 4, 2003 (incorporated by reference to Exhibit 10.2 of the Company’s Quarterly Report on Form 10-Q (File No. 1-15202) filed with the Commission on August 6, 2003).
|
|
|
|
Form of Restricted Stock Unit Agreement under the W. R. Berkley Corporation 2003 Stock Incentive Plan (incorporated by reference to Exhibit 10.2 of the Company’s Quarterly Report on Form 10-Q (File No. 1-15202) filed with the Commission on May 3, 2005).
|
|
|
|
Form of Restricted Stock Unit Agreement under the W. R. Berkley Corporation 2003 Stock Incentive Plan (incorporated by reference to Exhibit 10.1 of the Company’s Quarterly Report on Form 10-Q (File No. 1-15202) filed with the Commission on August 6, 2010).
|
|
|
|
Form of Restricted Stock Unit Agreement under the W. R. Berkley Corporation 2012 Stock Incentive Plan (incorporated by reference to Exhibit 10.1 of the Company's Quarterly Report on Form 10-Q (File No. 1-15202) filed with the Commission on November 8, 2012).
|
|
|
|
(10.6)
|
Form of 2014 Performance-Based Restricted Stock Unit Agreement under the W. R. Berkley Corporation 2012 Stock Incentive Plan (incorporated by reference to Exhibit 10.1 of the Company's Quarterly Report on Form 10-Q (File No. 1-15202) filed with the Commission on November 7, 2014).
|
|
|
Form of 2015 Performance-Based Restricted Stock Unit Agreement under the W. R. Berkley Corporation 2012 Stock Incentive Plan (incorporated by reference to Exhibit 10.1 of the Company's Quarterly Report on Form 10-Q (File No. 1-15202) filed with the Commission on November 9, 2015).
|
|
|
|
Form of 2017 Performance-Based Restricted Stock Unit Agreement Under the W. R. Berkley Corporation 2012 Stock Incentive Plan (incorporated by reference to Exhibit 10.1 of the Company’s Quarterly Report on Form 10-Q (File No. 1-15202) filed with the Commission on November 8, 2017).
|
|
|
Form of 2018 Performance-Based Restricted Stock Unit Agreement Under the W. R. Berkley Corporation 2018 Stock Incentive Plan (incorporated by reference to Exhibit 10.1 of the Company’s Quarterly Report on Form 10-Q (File No. 1-15202) filed with the Commission on November 7, 2018).
|
|
|
|
W. R. Berkley Corporation Deferred Compensation Plan for Officers as amended and restated November 2, 2016 (incorporated by reference to Exhibit 10.2 of the Company’s Quarterly Report on Form 10-Q (File No. 1-15202) filed with the Commission on November 7, 2018).
|
|
|
|
W. R. Berkley Corporation Deferred Compensation Plan for Directors as amended and restated effective December 3, 2007 (incorporated by reference to Exhibit 10.2 of the Company’s Current Report on Form 8-K (File No. 1-15202) filed with the Commission on December 19, 2007).
|
|
|
|
W. R. Berkley Corporation Amended and Restated Annual Incentive Compensation Plan (incorporated by reference to Exhibit 10.1 of the Company's Current Report on Form 8-K (File No. 1-15202) filed with the Commission on February 25, 2019).
|
|
|
|
W. R. Berkley Corporation 2014 Long-Term Incentive Plan (incorporated by reference to Annex A of the Company’s 2014 Proxy Statement (File No. 1-15202) filed with the Commission on April 7, 2014).
|
|
|
|
Form of 2015 Performance Unit Award Agreement under the W. R. Berkley Corporation 2014 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.1 of the Company’s Quarterly Report on Form 10-Q (File No. 1-15202) filed with the Commission on May 4, 2015).
|
|
|
|
Form of 2016 Performance Unit Award Agreement under the W. R. Berkley Corporation 2014 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.1 of the Company’s Quarterly Report on Form 10-Q (File No. 1-15202) filed with the Commission on May 10, 2016).
|
|
|
|
Form of 2018 Performance Unit Award Agreement under the W. R. Berkley Corporation 2014 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.1 of the Company’s Quarterly Report on Form 10-Q (File No. 1-15202) filed with the Commission on May 7, 2018).
|
|
|
|
W. R. Berkley Corporation 2019 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.2 of the Company's current Report on Form 8-K (File No. 1-15202) filed with the Commission on February 25, 2019).
|
|
|
|
Form of 2019 Performance Unit Award Agreement under the W. R. Berkley Corporation 2019 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.3 of the Company’s Current Report on Form 8-K (File No. 1-15202) filed with the Commission on February 25, 2019).
|
|
|
|
W. R. Berkley Corporation 2009 Directors Stock Plan (incorporated by reference to Annex B of the Company’s 2015 Proxy Statement (File No. 1-15202) filed with the Commission on April 20, 2015).
|
|
|
|
Supplemental Benefits Agreement between William R. Berkley and the Company as amended and restated as of December 21, 2011 (incorporated by reference to Exhibit 10.14 of the Company's Annual Report on Form 10-K (File No. 1-15202) filed with the Commission on February 28, 2012).
|
|
|
|
Code of Ethics for Senior Financial Officers (incorporated by reference to Exhibit 14 of the Company’s Annual Report on Form 10-K (File No. 1-15202) filed with the Commission on March 14, 2005).
|
|
|
|
List of the Company’s subsidiaries.
|
|
|
|
Consent of Independent Registered Public Accounting Firm.
|
|
|
|
Certification of the Chief Executive Officer pursuant to Rule 13a-14(a)/ 15d-14(a).
|
|
By
|
/s/ W. Robert Berkley, Jr.
|
|
|
W. Robert Berkley, Jr.
President and Chief Executive Officer
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/ William R. Berkley
|
|
Executive Chairman
|
|
February 20, 2020
|
William R. Berkley
|
|
of the Board of Directors
|
|
|
|
|
|
|
|
/s/ W. Robert Berkley, Jr.
|
|
President
|
|
February 20, 2020
|
W. Robert Berkley, Jr.
|
|
Chief Executive Officer and Director
|
|
|
|
|
(Principal executive officer)
|
|
|
|
|
|
|
|
/s/ Christopher L. Augostini
|
|
Director
|
|
February 20, 2020
|
Christopher L. Augostini
|
|
|
|
|
|
|
|
|
|
/s/ Ronald E. Blaylock
|
|
Director
|
|
February 20, 2020
|
Ronald E. Blaylock
|
|
|
|
|
|
|
|
|
|
/s/ Mark E. Brockbank
|
|
Director
|
|
February 20, 2020
|
Mark E. Brockbank
|
|
|
|
|
|
|
|
|
|
/s/ Mary C. Farrell
|
|
Director
|
|
February 20, 2020
|
Mary C. Farrell
|
|
|
|
|
|
|
|
|
|
/s/ María Luisa Ferré
|
|
Director
|
|
February 20, 2020
|
María Luisa Ferré
|
|
|
|
|
|
|
|
|
|
/s/ Jack H. Nusbaum
|
|
Director
|
|
February 20, 2020
|
Jack H. Nusbaum
|
|
|
|
|
|
|
|
|
|
/s/ Leigh Ann Pusey
|
|
Director
|
|
February 20, 2020
|
Leigh Ann Pusey
|
|
|
|
|
|
|
|
|
|
/s/ Mark L. Shapiro
|
|
Director
|
|
February 20, 2020
|
Mark L. Shapiro
|
|
|
|
|
|
|
|
|
|
/s/ Jonathan Talisman
|
|
Director
|
|
February 20, 2020
|
Jonathan Talisman
|
|
|
|
|
|
|
|
|
|
/s/ Richard M. Baio
|
|
Executive Vice President
|
|
February 20, 2020
|
Richard M. Baio
|
|
Chief Financial Officer and Treasurer
|
|
|
|
|
(Principal financial officer
and principal accounting officer)
|
|
|
|
December 31,
|
||||||
(In thousands)
|
2019
|
|
2018
|
||||
Assets:
|
|
|
|
|
|
||
Cash and cash equivalents
|
$
|
389,801
|
|
|
$
|
83,950
|
|
Fixed maturity securities available for sale at fair value (cost $718,642 and $1,317,058 at December 31, 2019 and 2018, respectively)
|
723,959
|
|
|
1,307,347
|
|
||
Loans receivable
|
55,794
|
|
|
51,544
|
|
||
Equity securities, at fair value (cost $3,430 in 2019 and $3,430 in 2018)
|
3,430
|
|
|
3,430
|
|
||
Investment in subsidiaries
|
7,623,639
|
|
|
6,786,999
|
|
||
Current federal income taxes
|
18,857
|
|
|
9,068
|
|
||
Deferred federal income taxes
|
—
|
|
|
66,995
|
|
||
Property, furniture and equipment at cost, less accumulated depreciation
|
12,323
|
|
|
13,391
|
|
||
Other assets
|
13,294
|
|
|
12,340
|
|
||
Total assets
|
$
|
8,841,097
|
|
|
$
|
8,335,064
|
|
Liabilities and stockholders’ equity:
|
|
|
|
|
|||
Liabilities:
|
|
|
|
|
|||
Due to subsidiaries
|
$
|
107,245
|
|
|
$
|
116,125
|
|
Other liabilities
|
118,593
|
|
|
115,562
|
|
||
Deferred federal income taxes
|
22,846
|
|
|
—
|
|
||
Subordinated debentures
|
1,198,704
|
|
|
907,491
|
|
||
Senior notes
|
1,318,770
|
|
|
1,758,035
|
|
||
Total liabilities
|
2,766,158
|
|
|
2,897,213
|
|
||
Stockholders’ equity:
|
|
|
|
|
|||
Preferred stock
|
—
|
|
|
—
|
|
||
Common stock
|
70,535
|
|
|
70,535
|
|
||
Additional paid-in capital
|
1,056,042
|
|
|
1,039,633
|
|
||
Retained earnings (including accumulated undistributed net income of subsidiaries of $5,564,980 and $5,068,139 at December 31, 2019 and 2018, respectively)
|
7,932,372
|
|
|
7,558,619
|
|
||
Accumulated other comprehensive income
|
(257,299
|
)
|
|
(510,470
|
)
|
||
Treasury stock, at cost
|
(2,726,711
|
)
|
|
(2,720,466
|
)
|
||
Total stockholders’ equity
|
6,074,939
|
|
|
5,437,851
|
|
||
Total liabilities and stockholders’ equity
|
$
|
8,841,097
|
|
|
$
|
8,335,064
|
|
|
Year Ended December 31,
|
||||||||||
(In thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Management fees and investment income including dividends from subsidiaries of$416,027, $639,477, and $694,462 for the years ended December 31, 2019, 2018 and 2017, respectively
|
$
|
470,773
|
|
|
$
|
697,687
|
|
|
$
|
738,923
|
|
Net investment gains (losses)
|
850
|
|
|
(1,685
|
)
|
|
(4,286
|
)
|
|||
Other income
|
117
|
|
|
530
|
|
|
805
|
|
|||
Total revenues
|
471,740
|
|
|
696,532
|
|
|
735,442
|
|
|||
Operating costs and expense
|
204,812
|
|
|
191,873
|
|
|
182,145
|
|
|||
Interest expense
|
148,282
|
|
|
155,082
|
|
|
146,929
|
|
|||
Income before federal income taxes
|
118,646
|
|
|
349,577
|
|
|
406,368
|
|
|||
Federal income taxes:
|
|
|
|
|
|
|
|
|
|||
Federal income taxes provided by subsidiaries on a separate return basis
|
207,647
|
|
|
409,439
|
|
|
115,597
|
|
|||
Federal income tax expense on a consolidated return basis
|
(141,190
|
)
|
|
(113,138
|
)
|
|
(195,261
|
)
|
|||
Net federal income tax expense (benefit)
|
66,457
|
|
|
296,301
|
|
|
(79,664
|
)
|
|||
Income before undistributed equity in net income of subsidiaries
|
185,103
|
|
|
645,878
|
|
|
326,704
|
|
|||
Equity in undistributed net income (loss) of subsidiaries
|
496,841
|
|
|
(5,129
|
)
|
|
222,390
|
|
|||
Net income
|
$
|
681,944
|
|
|
$
|
640,749
|
|
|
$
|
549,094
|
|
|
Year Ended December 31,
|
||||||||||
(In thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|||
Net income
|
$
|
681,944
|
|
|
$
|
640,749
|
|
|
$
|
549,094
|
|
Adjustments to reconcile net income to net cash from operating activities:
|
|
|
|
|
|
||||||
Net investment (gains) losses
|
(850
|
)
|
|
1,685
|
|
|
4,286
|
|
|||
Depreciation and amortization
|
7,058
|
|
|
9,441
|
|
|
2,039
|
|
|||
Equity in undistributed earnings of subsidiaries
|
(496,841
|
)
|
|
5,129
|
|
|
(222,390
|
)
|
|||
Tax payments received from subsidiaries
|
192,407
|
|
|
282,084
|
|
|
98,313
|
|
|||
Federal income taxes provided by subsidiaries on a separate return basis
|
(207,646
|
)
|
|
(409,439
|
)
|
|
(115,597
|
)
|
|||
Stock incentive plans
|
28,389
|
|
|
28,531
|
|
|
38,075
|
|
|||
Change in:
|
|
|
|
|
|
||||||
Federal income taxes
|
11,841
|
|
|
(77,415
|
)
|
|
2,711
|
|
|||
Other assets
|
(5,343
|
)
|
|
1,348
|
|
|
(877
|
)
|
|||
Other liabilities
|
11,866
|
|
|
109,016
|
|
|
18,661
|
|
|||
Accrued investment income
|
4,395
|
|
|
(2,870
|
)
|
|
(2,818
|
)
|
|||
Net cash from operating activities
|
227,220
|
|
|
588,259
|
|
|
371,497
|
|
|||
Cash from (used) in investing activities:
|
|
|
|
|
|
|
|
|
|||
Proceeds from sales of fixed maturity securities
|
619,334
|
|
|
668,447
|
|
|
849,330
|
|
|||
Proceeds from maturities and prepayments of fixed maturity securities
|
435,473
|
|
|
255,528
|
|
|
316,611
|
|
|||
Cost of purchases of fixed maturity securities
|
(459,418
|
)
|
|
(1,188,821
|
)
|
|
(1,329,379
|
)
|
|||
Change in loans receivable
|
(4,250
|
)
|
|
1,475
|
|
|
(29,600
|
)
|
|||
Investments in and advances to subsidiaries, net
|
(36,170
|
)
|
|
(184,597
|
)
|
|
(21,139
|
)
|
|||
Change in balance due to security broker
|
245
|
|
|
—
|
|
|
—
|
|
|||
Net additions to real estate, furniture & equipment
|
(112
|
)
|
|
(264
|
)
|
|
(1,055
|
)
|
|||
Other, net
|
142
|
|
|
—
|
|
|
—
|
|
|||
Net cash from (used in) investing activities
|
555,244
|
|
|
(448,232
|
)
|
|
(215,232
|
)
|
|||
Cash used in financing activities:
|
|
|
|
|
|
|
|
|
|||
Net proceeds from issuance of senior notes
|
290,454
|
|
|
178,562
|
|
|
—
|
|
|||
Repayment of senior notes
|
(440,651
|
)
|
|
—
|
|
|
—
|
|
|||
Purchase of common treasury shares
|
(18,225
|
)
|
|
(24,750
|
)
|
|
(47,807
|
)
|
|||
Cash dividends to common stockholders
|
(308,191
|
)
|
|
(254,951
|
)
|
|
(188,199
|
)
|
|||
Net cash used in financing activities
|
(476,613
|
)
|
|
(101,139
|
)
|
|
(236,006
|
)
|
|||
Net increase (decrease) in cash and cash equivalents
|
305,851
|
|
|
38,888
|
|
|
(79,741
|
)
|
|||
Cash and cash equivalents at beginning of year
|
83,950
|
|
|
45,062
|
|
|
124,803
|
|
|||
Cash and cash equivalents at end of year
|
$
|
389,801
|
|
|
$
|
83,950
|
|
|
$
|
45,062
|
|
(In thousands)
|
Deferred
Policy
Acquisition
Cost
|
|
Reserve for
Losses and
Loss Expenses
|
|
Unearned
Premiums
|
|
Net Premiums
Earned
|
|
Net
Investment
Income
|
|
Loss and Loss
Expenses
|
|
Amortization of
Deferred Policy
Acquisition
Cost
|
|
Other
Operating Costs
and Expenses
|
|
Net
Premiums
Written
|
||||||||||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Insurance
|
$
|
438,082
|
|
|
$
|
9,836,950
|
|
|
$
|
3,304,152
|
|
|
$
|
5,919,819
|
|
|
$
|
429,405
|
|
|
$
|
3,692,551
|
|
|
$
|
840,333
|
|
|
$
|
1,049,328
|
|
|
$
|
6,086,009
|
|
Reinsurance & Monoline Excess
|
79,282
|
|
|
2,746,299
|
|
|
352,355
|
|
|
713,469
|
|
|
164,082
|
|
|
438,565
|
|
|
161,278
|
|
|
88,520
|
|
|
777,490
|
|
|||||||||
Corporate, other and eliminations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
52,127
|
|
|
—
|
|
|
—
|
|
|
222,623
|
|
|
—
|
|
|||||||||
Total
|
$
|
517,364
|
|
|
$
|
12,583,249
|
|
|
$
|
3,656,507
|
|
|
$
|
6,633,288
|
|
|
$
|
645,614
|
|
|
$
|
4,131,116
|
|
|
$
|
1,001,611
|
|
|
$
|
1,360,471
|
|
|
$
|
6,863,499
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Insurance
|
$
|
432,568
|
|
|
$
|
9,278,729
|
|
|
$
|
3,081,433
|
|
|
$
|
5,702,073
|
|
|
$
|
433,490
|
|
|
$
|
3,566,358
|
|
|
$
|
788,508
|
|
|
$
|
1,136,269
|
|
|
$
|
5,791,905
|
|
Reinsurance & Monoline Excess
|
65,061
|
|
|
2,687,719
|
|
|
278,558
|
|
|
669,432
|
|
|
179,534
|
|
|
408,344
|
|
|
126,738
|
|
|
112,885
|
|
|
641,322
|
|
|||||||||
Corporate, other and eliminations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
61,211
|
|
|
—
|
|
|
—
|
|
|
218,821
|
|
|
—
|
|
|||||||||
Total
|
$
|
497,629
|
|
|
$
|
11,966,448
|
|
|
$
|
3,359,991
|
|
|
$
|
6,371,505
|
|
|
$
|
674,235
|
|
|
$
|
3,974,702
|
|
|
$
|
915,246
|
|
|
$
|
1,467,975
|
|
|
$
|
6,433,227
|
|
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Insurance
|
$
|
428,535
|
|
|
$
|
8,858,926
|
|
|
$
|
2,987,805
|
|
|
$
|
5,549,403
|
|
|
$
|
366,862
|
|
|
$
|
3,469,175
|
|
|
$
|
908,746
|
|
|
$
|
1,001,463
|
|
|
$
|
5,555,515
|
|
Reinsurance & Monoline Excess
|
79,014
|
|
|
2,811,482
|
|
|
302,375
|
|
|
762,016
|
|
|
160,462
|
|
|
533,173
|
|
|
202,743
|
|
|
69,431
|
|
|
704,993
|
|
|||||||||
Corporate, other and eliminations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
48,464
|
|
|
—
|
|
|
—
|
|
|
254,549
|
|
|
—
|
|
|||||||||
Total
|
$
|
507,549
|
|
|
$
|
11,670,408
|
|
|
$
|
3,290,180
|
|
|
$
|
6,311,419
|
|
|
$
|
575,788
|
|
|
$
|
4,002,348
|
|
|
$
|
1,111,489
|
|
|
$
|
1,325,443
|
|
|
$
|
6,260,508
|
|
|
Premiums Written
|
|
|
|||||||||||||||
(In thousands, other than percentages)
|
Direct
Amount
|
|
Ceded
to Other
Companies
|
|
Assumed
from Other
Companies
|
|
Net
Amount
|
|
Percentage
of Amount
Assumed
to Net
|
|||||||||
Year ended December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Insurance
|
$
|
7,180,759
|
|
|
$
|
1,312,564
|
|
|
$
|
217,814
|
|
|
$
|
6,086,009
|
|
|
3.6
|
%
|
Reinsurance & Monoline Excess
|
206,000
|
|
|
86,155
|
|
|
657,645
|
|
|
777,490
|
|
|
84.6
|
%
|
||||
Total
|
$
|
7,386,759
|
|
|
$
|
1,398,719
|
|
|
$
|
875,459
|
|
|
$
|
6,863,499
|
|
|
12.8
|
%
|
Year ended December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Insurance
|
$
|
6,782,757
|
|
|
$
|
1,188,297
|
|
|
$
|
197,445
|
|
|
$
|
5,791,905
|
|
|
3.4
|
%
|
Reinsurance & Monoline Excess
|
190,459
|
|
|
80,970
|
|
|
531,833
|
|
|
641,322
|
|
|
82.9
|
%
|
||||
Total
|
$
|
6,973,216
|
|
|
$
|
1,269,267
|
|
|
$
|
729,278
|
|
|
$
|
6,433,227
|
|
|
11.3
|
%
|
Year ended December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Insurance
|
$
|
6,537,777
|
|
|
$
|
1,143,656
|
|
|
$
|
161,394
|
|
|
$
|
5,555,515
|
|
|
2.9
|
%
|
Reinsurance & Monoline Excess
|
188,252
|
|
|
72,799
|
|
|
589,540
|
|
|
704,993
|
|
|
83.6
|
%
|
||||
Total
|
$
|
6,726,029
|
|
|
$
|
1,216,455
|
|
|
$
|
750,934
|
|
|
$
|
6,260,508
|
|
|
12.0
|
%
|
(In thousands)
|
Opening
Balance
|
|
Additions-
Charged to
Expense
|
|
Deduction-
Amounts
Written Off
|
|
Ending
Balance
|
||||||||
Year ended December 31, 2019
|
|
|
|
|
|
|
|
||||||||
Premiums and fees receivable
|
$
|
39,093
|
|
|
$
|
(5,549
|
)
|
|
$
|
(6,998
|
)
|
|
$
|
26,546
|
|
Due from reinsurers
|
947
|
|
|
—
|
|
|
(257
|
)
|
|
690
|
|
||||
Deferred federal and foreign income taxes
|
35,195
|
|
|
1,298
|
|
|
(3,243
|
)
|
|
33,250
|
|
||||
Loan loss reserves
|
3,383
|
|
|
—
|
|
|
(1,237
|
)
|
|
2,146
|
|
||||
Total
|
$
|
78,618
|
|
|
$
|
(4,251
|
)
|
|
$
|
(11,735
|
)
|
|
$
|
62,632
|
|
Year ended December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
||||
Premiums and fees receivable
|
$
|
39,926
|
|
|
$
|
6,985
|
|
|
$
|
(7,817
|
)
|
|
$
|
39,093
|
|
Due from reinsurers
|
1,010
|
|
|
65
|
|
|
(128
|
)
|
|
947
|
|
||||
Deferred federal and foreign income taxes
|
16,619
|
|
|
18,772
|
|
|
(196
|
)
|
|
35,195
|
|
||||
Loan loss reserves
|
3,383
|
|
|
—
|
|
|
—
|
|
|
3,383
|
|
||||
Total
|
$
|
60,938
|
|
|
$
|
25,822
|
|
|
$
|
(8,141
|
)
|
|
$
|
78,618
|
|
Year ended December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
||||
Premiums and fees receivable
|
$
|
26,569
|
|
|
$
|
20,720
|
|
|
$
|
(7,363
|
)
|
|
$
|
39,926
|
|
Due from reinsurers
|
1,049
|
|
|
(29
|
)
|
|
(10
|
)
|
|
1,010
|
|
||||
Deferred federal and foreign income taxes
|
5,457
|
|
|
12,663
|
|
|
(1,501
|
)
|
|
16,619
|
|
||||
Loan loss reserves
|
3,397
|
|
|
(14
|
)
|
|
—
|
|
|
3,383
|
|
||||
Total
|
$
|
36,472
|
|
|
$
|
33,340
|
|
|
$
|
(8,874
|
)
|
|
$
|
60,938
|
|
(In thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Deferred policy acquisition costs
|
$
|
517,364
|
|
|
$
|
497,629
|
|
|
$
|
507,549
|
|
Reserves for losses and loss expenses
|
12,583,249
|
|
|
11,966,448
|
|
|
11,670,408
|
|
|||
Unearned premiums
|
3,656,507
|
|
|
3,359,991
|
|
|
3,290,180
|
|
|||
Net premiums earned
|
6,633,288
|
|
|
6,371,505
|
|
|
6,311,419
|
|
|||
Net investment income
|
645,614
|
|
|
674,235
|
|
|
575,788
|
|
|||
Losses and loss expenses incurred:
|
|
|
|
|
|
||||||
Current year
|
4,057,989
|
|
|
3,926,489
|
|
|
3,963,543
|
|
|||
Prior years
|
34,079
|
|
|
6,831
|
|
|
(5,165
|
)
|
|||
Loss reserve discount accretion
|
39,048
|
|
|
41,382
|
|
|
43,970
|
|
|||
Amortization of deferred policy acquisition costs
|
1,001,611
|
|
|
915,246
|
|
|
1,111,489
|
|
|||
Paid losses and loss expenses
|
3,659,402
|
|
|
3,664,885
|
|
|
3,589,955
|
|
|||
Net premiums written
|
6,863,499
|
|
|
6,433,227
|
|
|
6,260,508
|
|
•
|
declare or pay any dividends or distributions on, or redeem, purchase, acquire, or make a liquidation payment with respect to, any of our capital stock (which includes Common Stock and Preferred Stock);
|
•
|
make any payment of principal, interest or premium on or repay, repurchase or redeem any Indebtedness Ranking on a Parity with the Debentures or Indebtedness Ranking Junior to the Debentures; or
|
•
|
make any guarantee payments with respect to any guarantee by us of any securities of any of our subsidiaries if such guarantee ranks pari passu with or junior in right of payment to such class of Debentures;
|
•
|
dividends or distributions in shares of, or options, warrants or rights to subscribe for or purchase shares of, our capital stock where the dividend stock or stock issuable upon exercise of such options, warrants or other rights is the same stock as that on which the dividend is being paid or ranks equally with or junior to such stock;
|
•
|
any declaration of a dividend in connection with the implementation of a stockholder’s rights plan, or the issuance of capital stock under any such plan in the future, or the redemption or repurchase of any such rights pursuant thereto;
|
•
|
as a result of a reclassification of any series or class of our capital stock or the exchange or conversion of one class or series of our capital stock for or into another class or series of our capital stock;
|
•
|
the purchase of fractional interests in shares of our capital stock pursuant to an acquisition or the conversion or exchange provisions of such capital stock or the security being converted or exchanged;
|
•
|
purchases or acquisitions of shares of our capital stock in connection with any employment contract, benefit plan or other similar arrangement with or for the benefit of directors, officers, agents, consultants or employees or our satisfaction of our obligations under any dividend reinvestment plan or our director, officer, agent, consultant or employee stock purchase plans;
|
•
|
any exchange, redemption or conversion of any class or series of our capital stock, or the capital stock of one of our subsidiaries, for any other class or series of our capital stock, or of any class or series of our Indebtedness for any class or series of our capital stock;
|
•
|
purchases or acquisitions of shares of our capital stock in connection with our satisfaction of our obligations under any contract or security entered into before commencement of the optional deferral period; and
|
•
|
(i) payment of current or deferred interest on our Indebtedness Ranking on a Parity with the Debentures made pro rata to the amounts due on our Indebtedness Ranking on a Parity with the Debentures and the Debentures and (ii) payment of principal or current or deferred interest on our Indebtedness Ranking on a Parity with the Debentures that, if not made, would cause us to breach the terms of the instrument governing such Indebtedness Ranking on a Parity with the Debentures.
|
•
|
in whole at any time or in part from time to time on or after May 2, 2018 in the case of the 2053 Debentures, March 1, 2021 in the case of the 5.90% 2056 Debentures, June 1, 2021 in the case of the 5.75% 2056 Debentures, May 30, 2023 in the case of the 2058 Debentures and December 30, 2024 in the case of the 2059 Debentures, at a redemption price equal to their principal amount plus accrued and unpaid interest to, but excluding, the date of redemption; provided that if such class of Debentures is not redeemed in whole, at least $25 million aggregate principal amount of such class of Debentures must remain outstanding after giving effect to such redemption;
|
•
|
in whole, but not in part, at any time prior to May 2, 2018 in the case of the 2053 Debentures, March 1, 2021 in the case of the 5.90% 2056 Debentures, June 1, 2021 in the case of the 5.75% 2056 Debentures, May 30, 2023 in the case of the 2058 Debentures and December 30, 2024 in the case of the 2059 Debentures, within 90 days of the occurrence of a “tax event” (as defined below) at a
|
•
|
in whole, but not in part, at any time prior to May 2, 2018 in the case of the 2053 Debentures, March 1, 2021 in the case of the 5.90% 2056 Debentures, and June 1, 2021 in the case of the 5.75% 2056 Debentures, within 90 days of the occurrence of a “rating agency event” (as defined below) at a redemption price equal to the greater of (a) 100% of their principal amount or (b) the present value of a payment on such applicable date in an amount equal to their outstanding principal amount and scheduled payments of interest that would have accrued from the date of redemption to such applicable date on such class of Debentures, discounted to the date of redemption on a quarterly basis (assuming a 360 day year consisting of twelve 30-day months) at the Treasury Rate (as defined in the applicable prospectus supplement) plus 50 basis points, in each case, plus any accrued and unpaid interest to, but excluding, the date of redemption.
|
•
|
in whole, but not in part, at any time prior to May 30, 2023 in the case of the 2058 Debentures and December 30, 2024 in the case of the 2059 Debentures, within 90 days of the occurrence of a “rating agency event” at a redemption price equal to 102% of their principal amount plus any accrued and unpaid interest to, but excluding, the date of redemption.
|
•
|
amendment to, or change in (including any promulgation, enactment, execution or modification of) the laws (or any regulations under those laws) of the United States or any political subdivision thereof or therein affecting taxation;
|
•
|
official administrative pronouncement (including a private letter ruling, technical advice memorandum or similar pronouncement) or judicial decision or administrative action or other official pronouncement interpreting or applying the law or regulations enumerated in the preceding bullet point, by any court, governmental agency or regulatory authority; or
|
•
|
threatened challenge asserted in connection with an audit of us, or a threatened challenge asserted in writing against any taxpayer that has raised capital through the issuance of securities that are substantially similar to such class of Debentures,
|
•
|
the laws, or any regulations or rulings promulgated thereunder, of a taxing jurisdiction or any political subdivision or taxing authority thereof or therein, or
|
•
|
an official position regarding the application, administration, interpretation or enforcement of any such laws, regulations or rulings, including, without limitation, a holding by a court of competent jurisdiction or by a taxing authority in a taxing jurisdiction or any political subdivision thereof.
|
•
|
was a resident, domiciliary or national of, or engaged in business or maintained a permanent establishment or was physically present in, the relevant taxing jurisdiction or any political subdivision thereof or otherwise had some connection with the relevant taxing jurisdiction other than by reason of the mere ownership of, or receipt of payment under, such Debenture;
|
•
|
presented such Debenture for payment in the relevant taxing jurisdiction or any political subdivision thereof, unless such Debenture could not have been presented for payment elsewhere; or
|
•
|
presented such Debenture for payment more than 30 days after the date on which the payment in respect of such Debenture became due and payable or provided for, whichever is later, except to the extent that the holder would have been entitled to such additional amounts if it had presented such Debenture for payment on any day within that 30-day period;
|
•
|
to provide information concerning the nationality, residence or identity of the holder or such beneficial owner, or
|
•
|
to make any declaration or other similar claim or satisfy any information or reporting requirement, which is required or imposed by statute, treaty, regulation or administrative practice of the relevant taxing jurisdiction or any political subdivision thereof as a precondition to exemption from all or part of such tax, assessment or other governmental charge; or
|
(4)
|
any combination of items (1), (2) and (3) above.
|
•
|
in case the Company shall consolidate or amalgamate with or merge into another person or convey, transfer or lease its properties and assets as an entirety or substantially as an entirety to any person, the person formed by such consolidation or amalgamation or into which the Company is merged or the person which acquires by conveyance or transfer, or which leases, the properties and assets of the Company as an entirety or substantially as an entirety shall be a person organized and existing under the laws of the United States of America, any state thereof or the District of Columbia, Bermuda, the Cayman Islands, Ireland, Switzerland, the United Kingdom, or any other country which is on the date of the applicable Indenture a member of the Organization of Economic Cooperation and Development, and shall expressly assume, by supplemental indenture, all of our obligations under the Debentures and the applicable Indenture and, for each security that by its terms provides for conversion, provide for the right to convert such security in accordance with its terms;
|
•
|
immediately after giving effect to such transaction, no default or event of default under the applicable Indenture has occurred and is continuing; and
|
•
|
the trustee receives from us an officer’s certificate and an opinion of counsel that the consolidation, merger, conveyance, transfer or lease and, if a supplemental indenture is required in connection with such transaction, such supplemental indenture comply with the applicable provisions of the applicable Indenture.
|
•
|
the failure to pay interest, including compounded interest, in full on such class of Debentures for a period of 30 days after the conclusion of a five-year period following the commencement of any deferral period if such deferral period has not ended prior to the conclusion of such five-year period;
|
•
|
the failure to pay principal of or premium, if any, on, or additional amounts with respect to, such class of Debentures when due; or
|
•
|
the failure to comply with our covenants or agreements under the applicable Indenture or such class of Debentures.
|
•
|
a default in payment of principal or interest, or any additional amounts; or
|
•
|
a default under any provision of the applicable Indenture that itself cannot be modified or amended without the consent of the holders of all outstanding Debentures of such class.
|
•
|
to defease and be discharged from any and all obligations with respect to such Debentures, except for, among other things, the obligation to pay additional amounts, if any, upon the occurrence of certain events of taxation, assessment or governmental charge with respect to payments on such Debentures and other obligations to register the transfer or exchange of such Debentures, to replace temporary or mutilated, destroyed, lost or stolen Debentures, to maintain an office or agency with respect to such Debentures and to hold moneys for payment in trust; or
|
•
|
to be released from its obligations with respect to such Debentures under certain covenants as described in the related prospectus supplement, and any omission to comply with such obligations will not constitute a default or an event of default with respect to such Debentures.
|
•
|
the applicable defeasance or covenant defeasance does not result in a breach or violation of, or constitute a default under, the applicable Indenture or any other material agreement or instrument to which we are a party or by which we are bound;
|
•
|
no event of default or event which with notice or lapse of time or both would become an event of default with respect to the Debentures to be defeased will have occurred and be continuing on the date of establishment of such a trust and, with respect to defeasance only, at any time during the period ending on the 123rd day after such date; and
|
•
|
we have delivered to the trustee an opinion of counsel, as specified in the applicable Indenture, to the effect that the holders of such Debentures will not recognize income, gain or loss for United States Federal income tax purposes as a result of such defeasance or covenant defeasance and will be subject to United States Federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such defeasance or covenant defeasance had not occurred, and such opinion of counsel, in the case of defeasance, must refer to and be based upon a letter ruling of the Internal Revenue Service received by us, a Revenue Ruling published by the Internal Revenue Service or a change in applicable United States Federal income tax law occurring after the date of the applicable Indenture.
|
(1)
|
direct obligations of the United States of America or the government or the governments which issued the Foreign Currency in which the Debentures of a particular series are payable, for the payment of which its full faith and credit is pledged; or
|
(2)
|
obligations of a Person controlled or supervised by and acting as an agency or instrumentality of the United States of America or such government or governments which issued the Foreign Currency in which the Debentures of such series are payable, the timely payment of which is unconditionally guaranteed as a full faith and credit obligation by the United States of America or such other government or governments, which, in the case of clauses (1) and (2), are not callable or redeemable at the option of the issuer or issuers thereof, and will also include a depository receipt issued by a bank or trust company as custodian with respect to any such Government Obligation or a specific payment of interest on or principal of or any other amount with respect to any such Government Obligation held by such custodian for the account of the holder of such depository receipt, provided that, except as required by law, such custodian is not authorized to make any deduction from the amount payable to the holder of such depository receipt from any amount received by the custodian with respect to the Government Obligation or the specific payment of interest on or principal of or any other amount with respect to the Government Obligation evidenced by such depository receipt.
|
(1)
|
the holder of a Debenture of that series is entitled to, and does, elect pursuant to Section 3.1 of the applicable Indenture or the terms of such Debenture to receive payment in a currency other than that in which such deposit has been made in respect of such Debenture; or
|
(2)
|
a Conversion Event occurs in respect of the Foreign Currency in which such deposit has been made;
|
•
|
in the case of payments made pursuant to clause (1) above, the applicable market exchange rate for such currency in effect on the second business day prior to such payment date; or
|
•
|
with respect to a Conversion Event, the applicable market exchange rate for such Foreign Currency in effect, as nearly as feasible, at the time of the Conversion Event.
|
•
|
a Foreign Currency both by the government of the country or countries which issued such Foreign
|
•
|
any currency unit or composite currency for the purposes for which it was established.
|
Entity Name
|
Domicile
|
120dB Films Capital, LLC (90% ownership)
|
Delaware
|
120dB Films Lending, LLC
|
Delaware
|
27 Leadenhall Street Properties Limited
|
Jersey
|
34 Leadenhall Street Limited
|
Jersey
|
52 Lime Street Management Limited
|
United Kingdom
|
860 Development Co LLC
|
Delaware
|
860 Washington Street LLC (75% ownership)
|
Delaware
|
Abercrombie Textiles, LLC
|
Delaware
|
Acadia Insurance Company
|
Iowa
|
Acadia Insurance Group, LLC
|
Delaware
|
Admiral Indemnity Company
|
Delaware
|
Admiral Insurance Company
|
Delaware
|
Admiral Insurance Group, LLC
|
Delaware
|
All American Agency Facilities, Inc.
|
Delaware
|
All Claims of Nevada, Inc.
|
Nevada
|
American Mining Insurance Group, LLC
|
Delaware
|
Armada Insurance Services, Inc.
|
California
|
Banner Aerospace, Inc.
|
Delaware
|
Berkley Accident and Health, LLC
|
Delaware
|
Berkley Administrators of Connecticut, Inc.
|
Delaware
|
Berkley Alliance Managers, LLC
|
Delaware
|
Berkley Alternative Markets Insurance Services, LLC
|
Delaware
|
Berkley Argentina de Reaseguros S.A.
|
Argentina
|
Berkley Asset Protection Underwriters, LLC
|
Delaware
|
Berkley Assurance Company
|
Iowa
|
Berkley Aviation, LLC
|
Delaware
|
Berkley Canada Inc.
|
Canada
|
Berkley Capital Investors, LP
|
Delaware
|
Berkley Capital, LLC
|
Delaware
|
Berkley Casualty Company
|
Iowa
|
Berkley Connect Insurance Solutions, LLC
|
Delaware
|
Berkley Custom Insurance Managers, LLC
|
Delaware
|
Berkley Dean & Company, Inc.
|
Delaware
|
Berkley European Brokers AS
|
Norway
|
Berkley European Underwriters AS
|
Norway
|
Berkley Facultative Reinsurance Services, LLC
|
Delaware
|
Berkley FinSecure, LLC
|
Delaware
|
Berkley Global Underwriters, LLC
|
Delaware
|
Berkley Healthcare Professional Insurance Services, LLC
|
Delaware
|
Berkley Insurance Company
|
Delaware
|
Berkley Insurance Company – Escritorio De Representacao do Brasil Ltda.
|
Brazil
|
Berkley Insurance Services, LLC
|
Delaware
|
Berkley International Aseguradora de Riesgos del Trabajo S. A.
|
Argentina
|
Berkley International Brasil Participacoes Ltda.
|
Brazil
|
Berkley International Compania de Servicios Mexico, S. A de C. V.
|
Mexico
|
Berkley International Compania de Servicios Uruguay, S.A.
|
Uruguay
|
Berkley International do Brasil Seguros S. A.
|
Brazil
|
Berkley International Holdings, LLC
|
Delaware
|
Berkley International Latinoamerica S. A.
|
Argentina
|
Berkley International Puerto Rico, LLC
|
Puerto Rico
|
Berkley International Seguros Colombia S.A.
|
Colombia
|
Berkley International Seguros, S. A. (99.59% ownership)
|
Argentina
|
Berkley International Seguros, S. A. (Uruguay)
|
Uruguay
|
Berkley International Fianzas Mexico S.A. de C.V.
|
Mexico
|
Berkley International Seguros Mexico S.A. de C.V.
|
Mexico
|
Berkley International, LLC
|
New York
|
Berkley Latin America and Caribbean Managers, LLC
|
Delaware
|
Berkley Life and Health Insurance Company
|
Iowa
|
Berkley Life Sciences, LLC
|
Delaware
|
Berkley London Holdings, Inc.
|
Delaware
|
Berkley LS Insurance Solutions, LLC
|
Delaware
|
Berkley Managers Insurance Services, LLC
|
Delaware
|
Berkley Mid-Atlantic Group, LLC
|
Delaware
|
Berkley National Insurance Company
|
Iowa
|
Berkley Net Underwriters, LLC
|
Delaware
|
Berkley North Pacific Group, LLC
|
Delaware
|
Berkley Offshore Underwriting Managers UK, Limited
|
United Kingdom
|
Berkley Offshore Underwriting Managers, LLC
|
Delaware
|
Berkley Oil & Gas Specialty Services, LLC
|
Delaware
|
Berkley Product Recall Insurance Agency, LLC
|
Delaware
|
Berkley Professional Liability UK, Limited
|
United Kingdom
|
Berkley Professional Liability, LLC
|
Delaware
|
Berkley Program Specialists, LLC
|
Delaware
|
Berkley Public Entity Managers, LLC
|
Delaware
|
Berkley Re America, LLC
|
Delaware
|
Berkley Re Direct, LLC
|
Delaware
|
Berkley Re UK Limited
|
United Kingdom
|
Berkley Regional Insurance Company
|
Iowa
|
Berkley Regional Insurance Services, LLC
|
Delaware
|
Berkley Regional Specialty, LLC
|
Delaware
|
Berkley Risk Administrators Company, LLC
|
Minnesota
|
Berkley Risk Administrators of Texas, Inc.
|
Texas
|
Berkley Risk Services of Vermont, Inc.
|
Delaware
|
Berkley Risk Solutions, LLC
|
Delaware
|
Berkley Select, LLC
|
Delaware
|
Berkley Southeast Insurance Group, LLC
|
Delaware
|
Berkley Specialty Insurance Company
|
Delaware
|
Berkley Specialty Insurance Services, LLC
|
Delaware
|
Berkley Specialty Underwriting Managers, LLC
|
Delaware
|
Berkley Surety Group, LLC
|
Delaware
|
Berkley Technology Services LLC
|
Delaware
|
Berkley Technology Underwriters, LLC
|
Delaware
|
Berkley Ventures, LLC
|
Delaware
|
BI China, Limited
|
Hong Kong
|
BIA Japan Services GK
|
Japan
|
BIL Advisors, LLC
|
Delaware
|
Breckenridge Insurance Group, Inc.
|
Colorado
|
Breckenridge Insurance Services, LLC
|
California
|
Breckenridge IS, Inc.
|
Delaware
|
BXM Insurance Services, Inc.
|
Delaware
|
Carolina Casualty Insurance Company
|
Iowa
|
Carolina Casualty Insurance Group, LLC
|
Delaware
|
CC Equity Holdings, LLC
|
Delaware
|
CC Investors, LLC
|
Delaware
|
Center Place Holdings LLC (92.59% ownership)
|
Delaware
|
CGH Claims Service, Inc.
|
Pennsylvania
|
CGH Insurance Group, LLC
|
Alabama
|
Clermont Insurance Company
|
Iowa
|
Clermont Specialty Managers, Ltd
|
New Jersey
|
Commodore Re Management Corporation
|
New Jersey
|
Continental Western Group, LLC
|
Delaware
|
Continental Western Insurance Company
|
Iowa
|
Cornerstone Securityholder Representative, LLC
|
Delaware
|
Corporate Imaging Concepts, LLC (82.06% ownership)
|
Delaware
|
Cotasy Corporation S. A.
|
Uruguay
|
CPT Equity LLC
|
Delaware
|
Crypton Investment Holdings LLC (89.5% Owned)
|
Delaware
|
Crypton LLC
|
Michigan
|
Crypton-NewCo Real Estate LLC
|
Delaware
|
East Isles Reinsurance, Ltd.
|
Bermuda
|
eCompanyStore, LLC
|
Delaware
|
Facultative Resources, Inc.
|
Connecticut
|
Firemen's Insurance Company of Washington, D.C.
|
Delaware
|
Franchise Credit LLC
|
Delaware
|
Gemini Insurance Company
|
Delaware
|
Gemini Transportation Underwriters, LLC
|
Delaware
|
Great Divide Insurance Company
|
North Dakota
|
Greenwich AeroGroup Brazil Holdings, Inc.
|
Delaware
|
Greenwich AeroGroup Brazil Leasing, Inc.
|
Delaware
|
Greenwich AeroGroup International, Inc.
|
Delaware
|
Greenwich AeroGroup Serviços de Aviação do Brazil SA
|
Brazil
|
Greenwich AeroGroup, Inc.
|
Delaware
|
Greenwich Knight Insurance Company
|
Bermuda
|
GRG Investment Holdings, Ltd
|
Cayman Islands
|
Guangzhou Meridian Chemical Limited
|
China
|
Helivia Aero Taxi SA
|
Brazil
|
Helivia Participações do Brasil Ltda
|
Brazil
|
Insurance Networks Alliance, LLC
|
Delaware
|
Interlaken Capital Aviation Holdings, Inc.
|
Delaware
|
Interlaken Capital Aviation Services, Inc.
|
Delaware
|
Intrepid Direct Insurance Agency, LLC
|
Kansas
|
Intrepid Insurance Company
|
Iowa
|
Jersey International Brokerage Corporation
|
New Jersey
|
Key Care, LLC
|
North Carolina
|
Key Risk Insurance Company
|
Iowa
|
Key Risk Management Services, LLC
|
Delaware
|
Key Risk Underwriting Managers, LLC
|
Delaware
|
Lavalier Insurance Services, LLC
|
Delaware
|
Lex NY Equities LLC
|
Delaware
|
Loan Opportunity Fund I, LLC
|
Delaware
|
MADA Reciprocal Services, Inc.
|
Minnesota
|
Magaverse, Limited
|
Hong Kong
|
Maine Compensation Services, Inc.
|
Maine
|
Masterclass, Limited
|
Hong Kong
|
Mgaero LLC
|
Delaware
|
Middle Patent Capital, LLC
|
Delaware
|
Midwest Employers Casualty Company
|
Delaware
|
Midwest Employers Casualty Group, LLC
|
Delaware
|
Midwest Employers Services, LLC
|
Delaware
|
Mining Insurance Markets, Inc.
|
Alabama
|
Monitor Liability Managers, LLC
|
Delaware
|
MPC Bloomington LLC
|
Delaware
|
MPC Memphis HI LLC
|
Delaware
|
Nano-Tex Asia Limited
|
Hong Kong
|
Nano-Tex LLC
|
Michigan
|
Nautilus Excess Insurance Agency, LLC
|
Delaware
|
Nautilus Insurance Company
|
Arizona
|
Nautilus Insurance Group, LLC
|
Delaware
|
Northwest International Underwriting Manager, Inc.
|
Washington
|
Overby-Seawell Company
|
Georgia
|
Platinum Program Managers & Insurance Services, Inc.
|
California
|
Preferred Employers Group, LLC
|
Delaware
|
Preferred Employers Insurance Company
|
California
|
Professional Aircraft Accessories, Inc.
|
Delaware
|
Professional Aviation Associates, Inc.
|
Georgia
|
Queen's Island Insurance Company, Ltd.
|
Bermuda
|
Rasmussen Agency, Inc.
|
New Jersey
|
Regional Excess Underwriters, LLC
|
Delaware
|
Reinserco, Inc.
|
New Jersey
|
Riverport Insurance Company
|
Iowa
|
Riverport Insurance Services, LLC
|
Delaware
|
RPW Equity LLC
|
Delaware
|
Select Marketing Insurance Services, LLC
|
California
|
Signet Star Holdings, Inc.
|
Delaware
|
SilverCap-Greenwich, LLC (98.8% ownership)
|
Delaware
|
Southeastern Underwriters, Inc.
|
Virginia
|
StarNet Insurance Company
|
Iowa
|
Starnet Insurance Services, LLC
|
Delaware
|
Steamboat Asset Management, LLC
|
Delaware
|
Steamboat Opportunity Partners, LLC
|
Delaware
|
Summit Aviation, Inc.
|
Delaware
|
Surety-Pro Services, Inc.
|
Delaware
|
Target Markets, LLC
|
Delaware
|
Target Programs, LLC
|
Delaware
|
Tri-State Insurance Company of Minnesota
|
Iowa
|
Union Insurance Company
|
Iowa
|
|
/s/ W. Robert Berkley, Jr.
|
|
W. Robert Berkley, Jr.
|
|
President and Chief Executive Officer
|
|
/s/ Richard M. Baio
|
|
Richard M. Baio
|
|
Executive Vice President,
Chief Financial Officer and Treasurer
|
(1)
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ W. Robert Berkley, Jr.
|
W. Robert Berkley, Jr.
|
President and Chief Executive Officer
|
|
/s/ Richard M. Baio
|
Richard M. Baio
|
Executive Vice President — Chief Financial Officer and Treasurer
|