Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common shares, par value $0.0125 per share | AXS | New York Stock Exchange | ||||||
Depositary Shares, each representing a 1/100th interest in a 5.50% Series E preferred shares
|
AXS PRE
|
New York Stock Exchange
|
Page | ||||||||
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. |
Year ended December 31, | 2020 | 2019 | 2018 | ||||||||||||||||||||
Insurance | $ | 4,018,399 | $ | 3,675,931 | $ | 3,797,592 | |||||||||||||||||
Reinsurance | 2,808,539 | 3,222,927 | 3,112,473 | ||||||||||||||||||||
Total | $ | 6,826,938 | $ | 6,898,858 | $ | 6,910,065 | |||||||||||||||||
Years ended December 31, | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||||||||||
Marsh & McLennan Companies Inc. | $ | 496,913 | 12 | % | $ | 434,108 | 12 | % | $ | 380,238 | 10 | % | |||||||||||||||||||||||||||||
Aon plc | 485,113 | 12 | % | 393,645 | 11 | % | 405,281 | 11 | % | ||||||||||||||||||||||||||||||||
Other brokers | 2,310,687 | 58 | % | 2,015,822 | 54 | % | 2,067,447 | 54 | % | ||||||||||||||||||||||||||||||||
Managing general agencies and underwriters | 725,686 | 18 | % | 832,356 | 23 | % | 944,626 | 25 | % | ||||||||||||||||||||||||||||||||
Total | $ | 4,018,399 | 100 | % | $ | 3,675,931 | 100 | % | $ | 3,797,592 | 100 | % | |||||||||||||||||||||||||||||
Years ended December 31, | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||||||||||
Marsh & McLennan Companies Inc. | $ | 818,821 | 29 | % | $ | 838,617 | 26 | % | $ | 779,375 | 25 | % | |||||||||||||||||||||||||||||
Aon plc | 694,712 | 25 | % | 887,602 | 28 | % | 765,779 | 25 | % | ||||||||||||||||||||||||||||||||
Willis Tower Watson PLC | 435,498 | 16 | % | 403,402 | 13 | % | 361,983 | 12 | % | ||||||||||||||||||||||||||||||||
Other brokers | 582,368 | 20 | % | 795,352 | 24 | % | 864,601 | 28 | % | ||||||||||||||||||||||||||||||||
Direct | 105,777 | 4 | % | 135,614 | 4 | % | 178,568 | 6 | % | ||||||||||||||||||||||||||||||||
Managing general agencies and underwriters | 171,363 | 6 | % | 162,339 | 5 | % | 162,167 | 5 | % | ||||||||||||||||||||||||||||||||
Total | $ | 2,808,539 | 100 | % | $ | 3,222,927 | 100 | % | $ | 3,112,473 | 100 | % | |||||||||||||||||||||||||||||
Employees | |||||||||||
North America | 1,212 | ||||||||||
Europe, Middle East and Africa | 677 | ||||||||||
Asia Pacific | 32 | ||||||||||
Total employees | 1,921 | ||||||||||
Women | Men | |||||||||||||
Total employees(1)
|
43% | 55% | ||||||||||||
All U.S. Employees(2)(3)
|
|||||||||||
Black / African American | 14% | ||||||||||
Asian | 10% | ||||||||||
Hispanic / Latinx | 4% | ||||||||||
White | 59% | ||||||||||
Multiracial, Native American and Pacific Islander | 2% | ||||||||||
At January 1,
(in millions of U.S. dollars) |
2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||
Single zone/single event | Perils |
50 Year
Return Period |
100 Year
Return Period |
250 Year
Return Period |
50 Year
Return Period |
100 Year
Return Period |
250 Year
Return Period |
||||||||||||||||||||||||||||||||||||||||
Southeast | U.S. Hurricane | $ | 286 | $ | 408 | $ | 625 | $ | 262 | $ | 310 | $ | 428 | ||||||||||||||||||||||||||||||||||
Northeast | U.S. Hurricane | 42 | 115 | 262 | 53 | 145 | 236 | ||||||||||||||||||||||||||||||||||||||||
Mid-Atlantic | U.S. Hurricane | 90 | 263 | 520 | 120 | 214 | 349 | ||||||||||||||||||||||||||||||||||||||||
Gulf of Mexico | U.S. Hurricane | 175 | 263 | 431 | 202 | 249 | 283 | ||||||||||||||||||||||||||||||||||||||||
California | Earthquake | 193 | 396 | 504 | 176 | 249 | 292 | ||||||||||||||||||||||||||||||||||||||||
Europe | Windstorm | 136 | 182 | 240 | 195 | 238 | 316 | ||||||||||||||||||||||||||||||||||||||||
Japan | Earthquake | 103 | 179 | 336 | 138 | 247 | 414 | ||||||||||||||||||||||||||||||||||||||||
Japan | Windstorm | 113 | 186 | 220 | 114 | 195 | 256 | ||||||||||||||||||||||||||||||||||||||||
Period |
Total number
of shares
purchased(a) (b)
|
Average
price paid per share |
Total number of shares
purchased as part of publicly announced plans or programs |
Maximum number (or approximate
dollar value) of shares that
may yet be purchased under the
plans or programs(b)
|
||||||||||
October 1-31, 2020 | 9 | $44.98 | — | — | ||||||||||
November 1-30, 2020 | 29 | $42.69 | — | — | ||||||||||
December 1-31, 2020 | 1 | $51.99 | — | — | ||||||||||
Total | 39 | — | — |
At and for the year ended December 31, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||||||||||||||||||||
Selected Statements of Operations Data: | |||||||||||||||||||||||||||||||||||
Gross premiums written | $ | 6,826,938 | $ | 6,898,858 | $ | 6,910,065 | $ | 5,556,273 | $ | 4,970,208 | |||||||||||||||||||||||||
Net premiums earned | 4,371,309 | 4,587,178 | 4,791,495 | 4,148,760 | 3,705,625 | ||||||||||||||||||||||||||||||
Net investment income | 349,601 | 478,572 | 438,507 | 400,805 | 353,335 | ||||||||||||||||||||||||||||||
Net investment gains (losses) | 129,133 | 91,233 | (150,218) | 28,226 | (60,525) | ||||||||||||||||||||||||||||||
Net losses and loss expenses | 3,281,252 | 3,044,798 | 3,190,287 | 3,287,772 | 2,204,197 | ||||||||||||||||||||||||||||||
Acquisition costs | 929,517 | 1,024,582 | 968,835 | 823,591 | 746,876 | ||||||||||||||||||||||||||||||
General and administrative expenses | 579,790 | 634,831 | 627,389 | 579,428 | 602,717 | ||||||||||||||||||||||||||||||
Interest expense and financing costs | 75,049 | 68,107 | 67,432 | 54,811 | 51,360 | ||||||||||||||||||||||||||||||
Preferred share dividends | 30,250 | 41,112 | 42,625 | 46,810 | 46,597 | ||||||||||||||||||||||||||||||
Net income (loss) available (attributable) to common shareholders(1) (2) (3)
|
$ | (150,674) | $ | 282,361 | $ | 396 | $ | (415,779) | $ | 465,462 | |||||||||||||||||||||||||
Per share data: | |||||||||||||||||||||||||||||||||||
Earnings (loss) per common share | $ | (1.79) | $ | 3.37 | $ | — | $ | (4.94) | $ | 5.13 | |||||||||||||||||||||||||
Earnings (loss) per diluted common share | $ | (1.79) | $ | 3.34 | $ | — | $ | (4.94) | $ | 5.08 | |||||||||||||||||||||||||
Cash dividends declared per common share | $ | 1.65 | $ | 1.61 | $ | 1.57 | $ | 1.53 | $ | 1.43 | |||||||||||||||||||||||||
Weighted average common shares outstanding | 84,262 | 83,894 | 83,501 | 84,108 | 90,772 | ||||||||||||||||||||||||||||||
Weighted average diluted common shares outstanding
|
84,262 | 84,473 | 84,007 | 84,108 | 91,547 | ||||||||||||||||||||||||||||||
Operating Ratios:(4)
|
|||||||||||||||||||||||||||||||||||
Net losses and loss expenses ratio | 75.1 | % | 66.4 | % | 66.6 | % | 79.2 | % | 59.5 | % | |||||||||||||||||||||||||
Acquisition cost ratio | 21.3 | % | 22.3 | % | 20.2 | % | 19.9 | % | 20.2 | % | |||||||||||||||||||||||||
General and administrative expense ratio | 13.2 | % | 13.9 | % | 13.1 | % | 14.0 | % | 16.2 | % | |||||||||||||||||||||||||
Combined ratio | 109.6 | % | 102.6 | % | 99.9 | % | 113.1 | % | 95.9 | % | |||||||||||||||||||||||||
Selected Balance Sheet Data: | |||||||||||||||||||||||||||||||||||
Investments | $ | 14,258,796 | $ | 14,302,375 | $ | 13,155,560 | $ | 14,784,210 | $ | 13,459,507 | |||||||||||||||||||||||||
Cash and cash equivalents | 1,503,232 | 1,576,457 | 1,830,020 | 1,363,786 | 1,241,507 | ||||||||||||||||||||||||||||||
Reinsurance recoverable on unpaid and paid losses and loss expenses | 4,930,842 | 4,205,551 | 3,781,902 | 3,338,840 | 2,334,922 | ||||||||||||||||||||||||||||||
Total assets | 25,877,687 | 25,604,054 | 24,132,566 | 24,760,177 | 20,813,691 | ||||||||||||||||||||||||||||||
Reserve for losses and loss expenses | 13,926,766 | 12,752,081 | 12,280,769 | 12,997,553 | 9,697,827 | ||||||||||||||||||||||||||||||
Unearned premiums | 3,685,886 | 3,626,246 | 3,635,758 | 3,641,399 | 2,969,498 | ||||||||||||||||||||||||||||||
Debt | 1,309,695 | 1,808,157 | 1,341,961 | 1,376,529 | 992,950 | ||||||||||||||||||||||||||||||
Total shareholders’ equity | 5,295,694 | 5,544,008 | 5,030,071 | 5,341,264 | 6,272,370 | ||||||||||||||||||||||||||||||
Book value per common share(5)
|
$ | 56.26 | $ | 56.80 | $ | 50.91 | $ | 54.91 | $ | 59.54 | |||||||||||||||||||||||||
Book value per diluted common share(5)
|
$ | 55.09 | $ | 55.79 | $ | 49.93 | $ | 53.88 | $ | 58.27 | |||||||||||||||||||||||||
Common shares outstanding | 84,353 | 83,959 | 83,586 | 83,161 | 86,441 | ||||||||||||||||||||||||||||||
Diluted common shares outstanding | 86,143 | 85,489 | 85,229 | 84,745 | 88,317 | ||||||||||||||||||||||||||||||
Page | |||||
2020 Financial Highlights | |||||
Overview | |||||
Consolidated Results of Operations | |||||
Results by Segment: | |||||
i) Insurance Segment | |||||
ii) Reinsurance Segment | |||||
Net Investment Income and Net Investment Gains (Losses) | |||||
Other Expenses (Revenues), Net | |||||
Financial Measures | |||||
Non-GAAP Financial Measures Reconciliation | |||||
Cash and Investments | |||||
Liquidity and Capital Resources | |||||
Critical Accounting Estimates | |||||
i) Reserve for Losses and Loss Expenses | |||||
ii) Reinsurance Recoverable on Unpaid Losses and Loss Expenses | |||||
iii) Gross Premiums Written and Net Premiums Earned | |||||
iv) Fair Value Measurements of Financial Assets and Liabilities | |||||
v) Impairment Losses and the Allowance for Expected Credit Losses - Fixed Maturities Available for Sale | |||||
Recent Accounting Pronouncements | |||||
Off-Balance Sheet and Special Purpose Entity Arrangements |
Years ended December 31, | 2020 | % Change | 2019 | % Change | 2018 | ||||||||||||||||||||||||||||||||||||
Underwriting revenues: | |||||||||||||||||||||||||||||||||||||||||
Gross premiums written | $ | 6,826,938 | (1%) | $ | 6,898,858 | —% | $ | 6,910,065 | |||||||||||||||||||||||||||||||||
Net premiums written | 4,336,409 | (3%) | 4,489,615 | (4%) | 4,658,962 | ||||||||||||||||||||||||||||||||||||
Net premiums earned | 4,371,309 | (5%) | 4,587,178 | (4%) | 4,791,495 | ||||||||||||||||||||||||||||||||||||
Other insurance related income (loss) | (8,089) | nm | 16,444 | 55% | 10,622 | ||||||||||||||||||||||||||||||||||||
Underwriting expenses: | |||||||||||||||||||||||||||||||||||||||||
Net losses and loss expenses | (3,281,252) | 8% | (3,044,798) | (5%) | (3,190,287) | ||||||||||||||||||||||||||||||||||||
Acquisition costs | (929,517) | (9%) | (1,024,582) | 6% | (968,835) | ||||||||||||||||||||||||||||||||||||
Underwriting-related general and administrative expenses(1)
|
(477,968) | (5%) | (505,735) | (3%) | (519,168) | ||||||||||||||||||||||||||||||||||||
Underwriting income (loss) | $ | (325,517) | $ | 28,507 | $ | 123,827 | |||||||||||||||||||||||||||||||||||
Net investment income | 349,601 | (27%) | 478,572 | 9% | 438,507 | ||||||||||||||||||||||||||||||||||||
Net investment gains (losses) | 129,133 | 42% | 91,233 | nm | (150,218) | ||||||||||||||||||||||||||||||||||||
Corporate expenses(1)
|
(101,822) | (21%) | (129,096) | 19% | (108,221) | ||||||||||||||||||||||||||||||||||||
Foreign exchange (losses) gains | (81,069) | nm | 12,041 | (59%) | 29,165 | ||||||||||||||||||||||||||||||||||||
Interest expense and financing costs | (75,049) | 10% | (68,107) | 1% | (67,432) | ||||||||||||||||||||||||||||||||||||
Reorganization expenses | (7,881) | (79%) | (37,384) | (44%) | (66,940) | ||||||||||||||||||||||||||||||||||||
Amortization of value of business acquired | (5,139) | (81%) | (26,722) | (84%) | (172,332) | ||||||||||||||||||||||||||||||||||||
Amortization of intangible assets | (11,390) | (2%) | (11,597) | (16%) | (13,814) | ||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes and interest in income (loss) of equity method investments | $ | (129,133) | $ | 337,447 | $ | 12,542 | |||||||||||||||||||||||||||||||||||
Income tax (expense) benefit | 12,321 | nm | (23,692) | nm | 29,486 | ||||||||||||||||||||||||||||||||||||
Interest in income (loss) of equity method investments | (3,612) | nm | 9,718 | nm | 993 | ||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | (120,424) | $ | 323,473 | $ | 43,021 | |||||||||||||||||||||||||||||||||||
Preferred share dividends | $ | (30,250) | (26%) | $ | (41,112) | (4%) | $ | (42,625) | |||||||||||||||||||||||||||||||||
Net income (loss) available (attributable) to common shareholders | $ | (150,674) | $ | 282,361 | $ | 396 | |||||||||||||||||||||||||||||||||||
Years ended December 31, | 2020 | % Change | 2019 | % Change | 2018 | ||||||||||||||||||||||||||||||
Gross premiums written: | |||||||||||||||||||||||||||||||||||
Insurance | $ | 4,018,399 | 9% | $ | 3,675,931 | (3%) | $ | 3,797,592 | |||||||||||||||||||||||||||
Reinsurance | 2,808,539 | (13%) | 3,222,927 | 4% | 3,112,473 | ||||||||||||||||||||||||||||||
Total gross premiums written | $ | 6,826,938 | (1%) | $ | 6,898,858 | nm | $ | 6,910,065 | |||||||||||||||||||||||||||
Percent of gross premiums written ceded: | |||||||||||||||||||||||||||||||||||
Insurance | 41% | 1 pt | 40% | 1 pt | 39% | ||||||||||||||||||||||||||||||
Reinsurance | 30% | 1 pt | 29% | 4 pts | 25% | ||||||||||||||||||||||||||||||
Total percent of gross premiums ceded | 36% | 1 pt | 35% | 2 pts | 33% | ||||||||||||||||||||||||||||||
Net premiums written: | |||||||||||||||||||||||||||||||||||
Insurance | $ | 2,357,501 | 7% | $ | 2,209,155 | (5%) | $ | 2,324,747 | |||||||||||||||||||||||||||
Reinsurance | 1,978,908 | (13%) | 2,280,460 | (2%) | 2,334,215 | ||||||||||||||||||||||||||||||
Total net premiums written | $ | 4,336,409 | (3%) | $ | 4,489,615 | (4%) | $ | 4,658,962 | |||||||||||||||||||||||||||
Net premiums earned: | |||||||||||||||||||||||||||||||||||
Insurance | $ | 2,299,038 | 5% | $ | 2,190,084 | (7%) | $ | 2,362,606 | |||||||||||||||||||||||||||
Reinsurance | 2,072,271 | (14%) | 2,397,094 | (1%) | 2,428,889 | ||||||||||||||||||||||||||||||
Total net premiums earned | $ | 4,371,309 | (5%) | $ | 4,587,178 | (4%) | $ | 4,791,495 | |||||||||||||||||||||||||||
Years ended December 31, | 2020 |
% Point
Change |
2019 |
% Point
Change |
2018 | ||||||||||||||||||||||||||||||
Current accident year loss ratio excluding catastrophe and weather-related losses | 57.7 | % | (2.9) | 60.6 | % | (1.1) | 61.7 | % | |||||||||||||||||||||||||||
Catastrophe and weather-related losses ratio | 17.7 | % | 10.2 | 7.5 | % | (1.5) | 9.0 | % | |||||||||||||||||||||||||||
Current accident year loss ratio | 75.4 | % | 7.3 | 68.1 | % | (2.6) | 70.7 | % | |||||||||||||||||||||||||||
Prior year reserve development ratio | (0.3 | %) | 1.4 | (1.7 | %) | 2.4 | (4.1 | %) | |||||||||||||||||||||||||||
Net losses and loss expenses ratio | 75.1 | % | 8.7 | 66.4 | % | (0.2) | 66.6 | % | |||||||||||||||||||||||||||
Acquisition cost ratio | 21.3 | % | (1.0) | 22.3 | % | 2.1 | 20.2 | % | |||||||||||||||||||||||||||
General and administrative expense ratio(1)
|
13.2 | % | (0.7) | 13.9 | % | 0.8 | 13.1 | % | |||||||||||||||||||||||||||
Combined ratio | 109.6 | % | 7.0 | 102.6 | % | 2.7 | 99.9 | % | |||||||||||||||||||||||||||
Year ended December 31, | 2020 | % Change | 2019 | % Change | 2018 | ||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||
Gross premiums written | $ | 4,018,399 | 9% | $ | 3,675,931 | (3%) | $ | 3,797,592 | |||||||||||||||||||||||||||
Net premiums written | 2,357,501 | 7% | 2,209,155 | (5%) | 2,324,747 | ||||||||||||||||||||||||||||||
Net premiums earned | 2,299,038 | 5% | 2,190,084 | (7%) | 2,362,606 | ||||||||||||||||||||||||||||||
Other insurance related income | 2,647 | (7%) | 2,858 | (17%) | 3,460 | ||||||||||||||||||||||||||||||
Expenses: | |||||||||||||||||||||||||||||||||||
Current accident year net losses and loss expenses | (1,705,951) | (1,331,981) | (1,587,129) | ||||||||||||||||||||||||||||||||
Prior year reserve development | 8,937 | 53,302 | 92,806 | ||||||||||||||||||||||||||||||||
Acquisition costs | (461,533) | (468,281) | (399,193) | ||||||||||||||||||||||||||||||||
Underwriting-related general and administrative expenses | (378,839) | (401,963) | (395,252) | ||||||||||||||||||||||||||||||||
Underwriting income (loss) | $ | (235,701) | $ | 44,019 | $ | 77,298 | |||||||||||||||||||||||||||||
Ratios: |
% Point
Change |
% Point
Change |
|||||||||||||||||||||||||||||||||
Current accident year loss ratio excluding catastrophe and weather-related losses | 55.1 | % | (1.9) | 57.0 | % | (1.5) | 58.5 | % | |||||||||||||||||||||||||||
Catastrophe and weather-related losses ratio | 19.1 | % | 15.3 | 3.8 | % | (4.9) | 8.7 | % | |||||||||||||||||||||||||||
Current accident year loss ratio | 74.2 | % | 13.4 | 60.8 | % | (6.4) | 67.2 | % | |||||||||||||||||||||||||||
Prior year reserve development ratio | (0.4 | %) | 2.0 | (2.4 | %) | 1.6 | (4.0 | %) | |||||||||||||||||||||||||||
Net losses and loss expenses ratio | 73.8 | % | 15.4 | 58.4 | % | (4.8) | 63.2 | % | |||||||||||||||||||||||||||
Acquisition cost ratio | 20.1 | % | (1.3) | 21.4 | % | 4.5 | 16.9 | % | |||||||||||||||||||||||||||
Underwriting-related general and administrative expense ratio | 16.5 | % | (1.8) | 18.3 | % | 1.5 | 16.8 | % | |||||||||||||||||||||||||||
Combined ratio | 110.4 | % | 12.3 | 98.1 | % | 1.2 | 96.9 | % | |||||||||||||||||||||||||||
% Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended December 31, | 2020 | 2019 | 2018 | 2019 to 2020 | 2018 to 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||
Property | $ | 996,650 | 26 | % | $ | 943,760 | 26 | % | $ | 1,192,807 | 31 | % | 6 | % | (21 | %) | |||||||||||||||||||||||||||||||||||||
Marine | 419,405 | 10 | % | 411,309 | 11 | % | 367,047 | 10 | % | 2 | % | 12 | % | ||||||||||||||||||||||||||||||||||||||||
Terrorism | 55,781 | 1 | % | 60,120 | 2 | % | 61,663 | 2 | % | (7 | %) | (3 | %) | ||||||||||||||||||||||||||||||||||||||||
Aviation | 87,671 | 2 | % | 74,670 | 2 | % | 89,673 | 2 | % | 17 | % | (17 | %) | ||||||||||||||||||||||||||||||||||||||||
Credit and political risk | 156,414 | 4 | % | 154,999 | 4 | % | 190,433 | 5 | % | 1 | % | (19 | %) | ||||||||||||||||||||||||||||||||||||||||
Professional lines | 1,378,503 | 34 | % | 1,177,274 | 32 | % | 1,115,213 | 29 | % | 17 | % | 6 | % | ||||||||||||||||||||||||||||||||||||||||
Liability | 763,155 | 19 | % | 699,876 | 19 | % | 553,461 | 15 | % | 9 | % | 26 | % | ||||||||||||||||||||||||||||||||||||||||
Accident and health | 158,585 | 4 | % | 144,103 | 4 | % | 210,502 | 6 | % | 10 | % | (32 | %) | ||||||||||||||||||||||||||||||||||||||||
Discontinued lines - Novae | 2,235 | — | % | 9,820 | — | % | 16,793 | — | % | nm | (42 | %) | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 4,018,399 | 100 | % | $ | 3,675,931 | 100 | % | $ | 3,797,592 | 100 | % | 9 | % | (3 | %) | |||||||||||||||||||||||||||||||||||||
% Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended December 31, | 2020 | 2019 | 2018 | 2019 to 2020 | 2018 to 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||
Property | $ | 605,650 | 26 | % | $ | 633,550 | 29 | % | $ | 796,945 | 34 | % | (4 | %) | (21 | %) | |||||||||||||||||||||||||||||||||||||
Marine | 293,746 | 13 | % | 281,764 | 13 | % | 300,944 | 13 | % | 4 | % | (6 | %) | ||||||||||||||||||||||||||||||||||||||||
Terrorism | 47,378 | 2 | % | 47,345 | 2 | % | 49,150 | 2 | % | — | % | (4 | %) | ||||||||||||||||||||||||||||||||||||||||
Aviation | 70,910 | 3 | % | 55,028 | 3 | % | 74,203 | 3 | % | 29 | % | (26 | %) | ||||||||||||||||||||||||||||||||||||||||
Credit and political risk | 105,869 | 5 | % | 91,698 | 4 | % | 102,825 | 4 | % | 15 | % | (11 | %) | ||||||||||||||||||||||||||||||||||||||||
Professional lines | 715,276 | 31 | % | 661,250 | 30 | % | 570,241 | 24 | % | 8 | % | 16 | % | ||||||||||||||||||||||||||||||||||||||||
Liability | 313,291 | 14 | % | 264,667 | 12 | % | 229,373 | 10 | % | 18 | % | 15 | % | ||||||||||||||||||||||||||||||||||||||||
Accident and health | 143,723 | 6 | % | 144,499 | 7 | % | 207,777 | 9 | % | (1 | %) | (30 | %) | ||||||||||||||||||||||||||||||||||||||||
Discontinued lines - Novae | 3,195 | — | % | 10,283 | — | % | 31,148 | 1 | % | (69 | %) | (67 | %) | ||||||||||||||||||||||||||||||||||||||||
Total | $ | 2,299,038 | 100 | % | $ | 2,190,084 | 100 | % | $ | 2,362,606 | 100 | % | 5 | % | (7 | %) | |||||||||||||||||||||||||||||||||||||
Year ended December 31, | 2020 |
% Point
Change |
2019 |
% Point
Change |
2018 | ||||||||||||||||||||||||||||||
Current accident year loss ratio | 74.2 | % | 13.4 | 60.8 | % | (6.4) | 67.2 | % | |||||||||||||||||||||||||||
Prior year reserve development ratio | (0.4 | %) | 2.0 | (2.4 | %) | 1.6 | (4.0 | %) | |||||||||||||||||||||||||||
Loss ratio | 73.8 | % | 15.4 | 58.4 | % | (4.8) | 63.2 | % | |||||||||||||||||||||||||||
Year ended December 31, | 2020 | % Change | 2019 | % Change | 2018 | ||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||
Gross premiums written | $ | 2,808,539 | (13%) | $ | 3,222,927 | 4% | $ | 3,112,473 | |||||||||||||||||||||||||||
Net premiums written | 1,978,908 | (13%) | 2,280,460 | (2%) | 2,334,215 | ||||||||||||||||||||||||||||||
Net premiums earned | 2,072,271 | (14%) | 2,397,094 | (1%) | 2,428,889 | ||||||||||||||||||||||||||||||
Other insurance related income (loss) | (10,736) | nm | 13,586 | nm | 7,162 | ||||||||||||||||||||||||||||||
Expenses: | |||||||||||||||||||||||||||||||||||
Current accident year net losses and loss expenses | (1,591,210) | (1,791,717) | (1,802,820) | ||||||||||||||||||||||||||||||||
Prior year reserve development | 6,972 | 25,598 | 106,856 | ||||||||||||||||||||||||||||||||
Acquisition costs | (467,984) | (556,301) | (569,642) | ||||||||||||||||||||||||||||||||
Underwriting-related general and administrative expenses | (99,129) | (103,772) | (123,916) | ||||||||||||||||||||||||||||||||
Underwriting income (loss) | $ | (89,816) | $ | (15,512) | $ | 46,529 | |||||||||||||||||||||||||||||
Ratios: |
% Point
Change |
% Point
Change |
|||||||||||||||||||||||||||||||||
Current accident year loss ratio excluding catastrophe and weather-related losses | 60.6 | % | (3.4) | 64.0 | % | (0.8) | 64.8 | % | |||||||||||||||||||||||||||
Catastrophe and weather-related losses ratio | 16.2 | % | 5.5 | 10.7 | % | 1.3 | 9.4 | % | |||||||||||||||||||||||||||
Current accident year loss ratio | 76.8 | % | 2.1 | 74.7 | % | 0.5 | 74.2 | % | |||||||||||||||||||||||||||
Prior year reserve development ratio | (0.4 | %) | 0.6 | (1.0 | %) | 3.4 | (4.4 | %) | |||||||||||||||||||||||||||
Net losses and loss expenses ratio | 76.4 | % | 2.7 | 73.7 | % | 3.9 | 69.8 | % | |||||||||||||||||||||||||||
Acquisition cost ratio | 22.6 | % | (0.6) | 23.2 | % | (0.3) | 23.5 | % | |||||||||||||||||||||||||||
Underwriting-related general and administrative expense ratio | 4.8 | % | 0.5 | 4.3 | % | (0.8) | 5.1 | % | |||||||||||||||||||||||||||
Combined ratio | 103.8 | % | 2.6 | 101.2 | % | 2.8 | 98.4 | % | |||||||||||||||||||||||||||
% Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended December 31, | 2020 | 2019 | 2018 | 2019 to 2020 | 2018 to 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||
Catastrophe | $ | 551,143 | 19 | % | $ | 718,514 | 24 | % | $ | 536,243 | 17 | % | (23 | %) | 34 | % | |||||||||||||||||||||||||||||||||||||
Property | 245,744 | 9 | % | 304,166 | 9 | % | 342,789 | 11 | % | (19 | %) | (11 | %) | ||||||||||||||||||||||||||||||||||||||||
Credit and surety | 232,699 | 8 | % | 269,733 | 8 | % | 329,126 | 11 | % | (14 | %) | (18 | %) | ||||||||||||||||||||||||||||||||||||||||
Professional lines | 312,935 | 11 | % | 261,072 | 8 | % | 268,181 | 9 | % | 20 | % | (3 | %) | ||||||||||||||||||||||||||||||||||||||||
Motor | 304,439 | 11 | % | 334,887 | 10 | % | 499,727 | 16 | % | (9 | %) | (33 | %) | ||||||||||||||||||||||||||||||||||||||||
Liability | 618,913 | 22 | % | 546,479 | 17 | % | 438,767 | 14 | % | 13 | % | 25 | % | ||||||||||||||||||||||||||||||||||||||||
Engineering | 25,886 | 1 | % | 57,028 | 2 | % | 60,358 | 2 | % | (55 | %) | (6 | %) | ||||||||||||||||||||||||||||||||||||||||
Agriculture | 70,500 | 3 | % | 224,961 | 7 | % | 226,246 | 7 | % | (69 | %) | (1 | %) | ||||||||||||||||||||||||||||||||||||||||
Marine and aviation | 73,103 | 3 | % | 74,781 | 2 | % | 44,741 | 1 | % | (2 | %) | 67 | % | ||||||||||||||||||||||||||||||||||||||||
Accident and health | 371,828 | 13 | % | 432,670 | 13 | % | 365,660 | 12 | % | (14 | %) | 18 | % | ||||||||||||||||||||||||||||||||||||||||
Discontinued lines - Novae | 1,349 | — | % | (1,364) | — | % | 635 | — | % | nm | nm | ||||||||||||||||||||||||||||||||||||||||||
Total | $ | 2,808,539 | 100 | % | $ | 3,222,927 | 100 | % | $ | 3,112,473 | 100 | % | (13 | %) | 4 | % | |||||||||||||||||||||||||||||||||||||
% Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended December 31, | 2020 | 2019 | 2018 | 2019 to 2020 | 2018 to 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||
Catastrophe | $ | 244,934 | 12 | % | $ | 267,591 | 10 | % | $ | 250,016 | 12 | % | (8 | %) | 7 | % | |||||||||||||||||||||||||||||||||||||
Property | 256,244 | 12 | % | 311,625 | 13 | % | 317,038 | 13 | % | (18 | %) | (2 | %) | ||||||||||||||||||||||||||||||||||||||||
Credit and surety | 187,721 | 9 | % | 208,717 | 9 | % | 250,276 | 10 | % | (10 | %) | (17 | %) | ||||||||||||||||||||||||||||||||||||||||
Professional lines | 207,605 | 10 | % | 206,328 | 9 | % | 220,687 | 9 | % | 1 | % | (7 | %) | ||||||||||||||||||||||||||||||||||||||||
Motor | 255,916 | 12 | % | 398,565 | 17 | % | 438,693 | 18 | % | (36 | %) | (9 | %) | ||||||||||||||||||||||||||||||||||||||||
Liability | 396,906 | 19 | % | 373,664 | 16 | % | 363,292 | 15 | % | 6 | % | 3 | % | ||||||||||||||||||||||||||||||||||||||||
Engineering | 60,521 | 3 | % | 63,899 | 3 | % | 67,932 | 3 | % | (5 | %) | (6 | %) | ||||||||||||||||||||||||||||||||||||||||
Agriculture | 73,696 | 4 | % | 188,925 | 8 | % | 176,435 | 7 | % | (61 | %) | 7 | % | ||||||||||||||||||||||||||||||||||||||||
Marine and aviation | 53,516 | 3 | % | 59,209 | 2 | % | 35,570 | 1 | % | (10 | %) | 66 | % | ||||||||||||||||||||||||||||||||||||||||
Accident and health | 333,996 | 16 | % | 319,619 | 13 | % | 299,813 | 12 | % | 4 | % | 7 | % | ||||||||||||||||||||||||||||||||||||||||
Discontinued lines - Novae | 1,216 | — | % | (1,048) | — | % | 9,137 | — | % | nm | nm | ||||||||||||||||||||||||||||||||||||||||||
Total | $ | 2,072,271 | 100 | % | $ | 2,397,094 | 100 | % | $ | 2,428,889 | 100 | % | (14 | %) | (1 | %) | |||||||||||||||||||||||||||||||||||||
Year ended December 31, | 2020 |
% Point
Change |
2019 |
% Point
Change |
2018 | |||||||||||||||||||||||||||||||||
Current accident year loss ratio | 76.8 | % | 2.1 | 74.7 | % | 0.5 | 74.2 | % | ||||||||||||||||||||||||||||||
Prior year reserve development ratio | (0.4 | %) | 0.6 | (1.0 | %) | 3.4 | (4.4 | %) | ||||||||||||||||||||||||||||||
Loss ratio | 76.4 | % | 2.7 | 73.7 | % | 3.9 | 69.8 | % | ||||||||||||||||||||||||||||||
Year ended December 31, | 2020 | % Change | 2019 | % Change | 2018 | ||||||||||||||||||||||||||||||
Fixed maturities | $ | 317,121 | (17%) | $ | 384,053 | 8% | $ | 356,273 | |||||||||||||||||||||||||||
Other investments | 16,059 | (73%) | 60,038 | 23% | 48,959 | ||||||||||||||||||||||||||||||
Equity securities | 9,328 | (11%) | 10,434 | 4% | 10,077 | ||||||||||||||||||||||||||||||
Mortgage loans | 15,432 | 5% | 14,712 | 8% | 13,566 | ||||||||||||||||||||||||||||||
Cash and cash equivalents | 13,582 | (49%) | 26,882 | (2%) | 27,566 | ||||||||||||||||||||||||||||||
Short-term investments | 2,749 | (61%) | 7,053 | (25%) | 9,365 | ||||||||||||||||||||||||||||||
Gross investment income | 374,271 | (26%) | 503,172 | 8% | 465,806 | ||||||||||||||||||||||||||||||
Investment expense | (24,670) | —% | (24,600) | (10%) | (27,299) | ||||||||||||||||||||||||||||||
Net investment income | $ | 349,601 | (27%) | $ | 478,572 | 9% | $ | 438,507 | |||||||||||||||||||||||||||
Pre-tax yield:(1)
|
|||||||||||||||||||||||||||||||||||
Fixed maturities | 2.6 | % | 3.2 | % | 3.0 | % | |||||||||||||||||||||||||||||
Year ended December 31, | 2020 | 2019 | 2018 | ||||||||||||||||||||
Hedge, direct lending, private equity and real estate funds | $ | 16,267 | $ | 42,186 | $ | 40,295 | |||||||||||||||||
Other privately held investments | 5,809 | 18,050 | 2,036 | ||||||||||||||||||||
CLO-Equities | (6,017) | (198) | 6,628 | ||||||||||||||||||||
Total net investment income from other investments(1)
|
$ | 16,059 | $ | 60,038 | $ | 48,959 | |||||||||||||||||
Pre-tax return on other investments(2)
|
2.2 | % | 8.5 | % | 6.4 | % | |||||||||||||||||
Year ended December 31, | 2020 | 2019 | 2018 | ||||||||||||||||||||
On sale of investments: | |||||||||||||||||||||||
Fixed maturities and short-term investments | $ | 92,119 | $ | 36,645 | $ | (96,086) | |||||||||||||||||
Equity securities | 19,808 | 3,126 | 17,046 | ||||||||||||||||||||
111,927 | 39,771 | (79,040) | |||||||||||||||||||||
Allowance for expected credit losses | (323) | — | — | ||||||||||||||||||||
Impairment losses (1)
|
(1,486) | — | — | ||||||||||||||||||||
OTTI losses | — | (6,984) | (9,733) | ||||||||||||||||||||
Change in fair value of investment derivatives | (2,434) | (1,823) | 5,445 | ||||||||||||||||||||
Net unrealized gains (losses) on equity securities | 21,449 | 60,269 | (66,890) | ||||||||||||||||||||
Net investment gains (losses) | $ | 129,133 | $ | 91,233 | $ | (150,218) | |||||||||||||||||
Year ended December 31, | 2020 | 2019 | 2018 | ||||||||||||||||||||
Net investment income | $ | 349,601 | $ | 478,572 | $ | 438,507 | |||||||||||||||||
Net investments gains (losses) | 129,133 | 91,233 | (150,218) | ||||||||||||||||||||
Change in net unrealized gains (losses) on fixed maturities(1)
|
269,937 | 385,364 | (191,529) | ||||||||||||||||||||
Interest in income (loss) of equity method investments | (3,612) | 9,718 | 993 | ||||||||||||||||||||
Total | $ | 745,059 | $ | 964,887 | $ | 97,753 | |||||||||||||||||
Average cash and investments(2)
|
$ | 15,562,097 | $ | 15,322,688 | $ | 15,361,287 | |||||||||||||||||
Total return on average cash and investments, pre-tax: | |||||||||||||||||||||||
Including investment related foreign exchange movements | 4.8 | % | 6.3 | % | 0.6 | % | |||||||||||||||||
Excluding investment related foreign exchange movements(3)
|
4.4 | % | 6.1 | % | 0.9 | % | |||||||||||||||||
Year ended December 31, | 2020 | % Change | 2019 | % Change | 2018 | ||||||||||||||||||||||||||||||
Corporate expenses | $ | 101,822 | (21%) | $ | 129,096 | 19% | $ | 108,221 | |||||||||||||||||||||||||||
Foreign exchange losses (gains) | 81,069 | nm | (12,041) | nm | (29,165) | ||||||||||||||||||||||||||||||
Interest expense and financing costs | 75,049 | 10% | 68,107 | 1% | 67,432 | ||||||||||||||||||||||||||||||
Income tax expense (benefit) | (12,321) | nm | 23,692 | nm | (29,486) | ||||||||||||||||||||||||||||||
Total | $ | 245,619 | $ | 208,854 | $ | 117,002 | |||||||||||||||||||||||||||||
Year ended and at December 31, | 2020 | 2019 | 2018 | ||||||||||||||||||||
Return on average common equity(1)
|
(3.2 | %) | 6.3 | % | — | % | |||||||||||||||||
Operating return on average common equity(2)
|
(3.7 | %) | 4.7 | % | 3.6 | % | |||||||||||||||||
Book value per diluted common share(3)
|
$ | 55.09 | $ | 55.79 | $ | 49.93 | |||||||||||||||||
Cash dividends declared per common share | $ | 1.65 | $ | 1.61 | $ | 1.57 | |||||||||||||||||
Increase (decrease) in book value per diluted common share adjusted for dividends | $ | 0.95 | $ | 7.47 | $ | (2.38) | |||||||||||||||||
Years ended December 31, | 2020 | 2019 | 2018 | |||||||||||||||||||||||
Net income (loss) available (attributable) to common shareholders | $ | (150,674) | $ | 282,361 | $ | 396 | ||||||||||||||||||||
Net investment (gains) losses(1)
|
(129,133) | (91,233) | 150,218 | |||||||||||||||||||||||
Foreign exchange losses (gains)(2)
|
81,069 | (12,041) | (29,165) | |||||||||||||||||||||||
Reorganization expenses(3)
|
7,881 | 37,384 | 66,940 | |||||||||||||||||||||||
Interest in (income) loss of equity method investments(4)
|
3,612 | (9,718) | (993) | |||||||||||||||||||||||
Income tax expense (benefit) | 13,023 | 6,656 | (26,697) | |||||||||||||||||||||||
Operating income (loss) | $ | (174,222) | $ | 213,409 | $ | 160,699 | ||||||||||||||||||||
Earnings (loss) per diluted common share (5)
|
$ | (1.79) | $ | 3.34 | $ | — | ||||||||||||||||||||
Net investment (gains) losses | (1.53) | (1.08) | 1.79 | |||||||||||||||||||||||
Foreign exchange losses (gains) | 0.96 | (0.14) | (0.35) | |||||||||||||||||||||||
Reorganization expenses | 0.09 | 0.44 | 0.80 | |||||||||||||||||||||||
Interest in (income) loss of equity method investments | 0.04 | (0.12) | (0.01) | |||||||||||||||||||||||
Income tax expense (benefit) | 0.15 | 0.08 | (0.32) | |||||||||||||||||||||||
Operating income (loss) per diluted common share(5)
|
$ | (2.08) | $ | 2.52 | $ | 1.91 | ||||||||||||||||||||
Weighted average diluted common shares outstanding(6)
|
84,262 | 84,473 | 84,007 | |||||||||||||||||||||||
Average common shareholders' equity | $ | 4,757,351 | $ | 4,512,040 | $ | 4,410,668 | ||||||||||||||||||||
Return on average common equity | (3.2%) | 6.3% | —% | |||||||||||||||||||||||
Operating return on average common equity | (3.7%) | 4.7% | 3.6% | |||||||||||||||||||||||
December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||
Fair value | Fair value | ||||||||||||||||||||||||||||
Fixed maturities | $ | 12,041,799 | $ | 12,468,205 | |||||||||||||||||||||||||
Equity securities | 518,445 | 474,207 | |||||||||||||||||||||||||||
Mortgage loans | 593,290 | 432,748 | |||||||||||||||||||||||||||
Other investments | 829,156 | 770,923 | |||||||||||||||||||||||||||
Equity method investments | 114,209 | 117,821 | |||||||||||||||||||||||||||
Short-term investments | 161,897 | 38,471 | |||||||||||||||||||||||||||
Total investments | $ | 14,258,796 | $ | 14,302,375 | |||||||||||||||||||||||||
Cash and cash equivalents(1)
|
$ | 1,503,232 | $ | 1,576,457 | |||||||||||||||||||||||||
December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||
Fair value | % of total | Fair value | % of total | ||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||||
U.S. government and agency | $ | 1,918,699 | 16 | % | $ | 2,112,881 | 17 | % | |||||||||||||||||||||
Non-U.S. government | 671,273 | 6 | % | 576,592 | 5 | % | |||||||||||||||||||||||
Corporate debt | 4,655,951 | 39 | % | 4,930,254 | 38 | % | |||||||||||||||||||||||
Agency RMBS | 1,286,209 | 11 | % | 1,592,584 | 13 | % | |||||||||||||||||||||||
CMBS | 1,353,587 | 11 | % | 1,365,052 | 11 | % | |||||||||||||||||||||||
Non-agency RMBS | 140,104 | 1 | % | 84,922 | 1 | % | |||||||||||||||||||||||
ABS | 1,720,078 | 14 | % | 1,598,693 | 13 | % | |||||||||||||||||||||||
Municipals(1)
|
295,898 | 2 | % | 207,227 | 2 | % | |||||||||||||||||||||||
Total | $ | 12,041,799 | 100 | % | $ | 12,468,205 | 100 | % | |||||||||||||||||||||
Credit ratings: | |||||||||||||||||||||||||||||
U.S. government and agency | $ | 1,918,699 | 16 | % | $ | 2,112,881 | 17 | % | |||||||||||||||||||||
AAA(2)
|
4,551,312 | 37 | % | 4,896,833 | 38 | % | |||||||||||||||||||||||
AA | 913,707 | 8 | % | 865,601 | 7 | % | |||||||||||||||||||||||
A | 1,896,407 | 16 | % | 1,848,331 | 15 | % | |||||||||||||||||||||||
BBB | 1,732,058 | 14 | % | 1,684,589 | 14 | % | |||||||||||||||||||||||
Below BBB(3)
|
1,029,616 | 9 | % | 1,059,970 | 9 | % | |||||||||||||||||||||||
Total | $ | 12,041,799 | 100 | % | $ | 12,468,205 | 100 | % | |||||||||||||||||||||
December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||||||||
Country | Fair value | % of total |
Weighted
average credit rating |
Fair value | % of total |
Weighted
average credit rating |
|||||||||||||||||||||||||||||||||||
Eurozone countries: | |||||||||||||||||||||||||||||||||||||||||
Supranationals(1)
|
$ | 19,773 | 3 | % | AAA | $ | 11,928 | 2 | % | AAA | |||||||||||||||||||||||||||||||
Netherlands | $ | 14,482 | 2 | % | AA+ | $ | 12,034 | 2 | % | AA+ | |||||||||||||||||||||||||||||||
Germany | 3,689 | 1 | % | AAA | 4,356 | 1 | % | AAA | |||||||||||||||||||||||||||||||||
Austria | 3,629 | 1 | % | AA+ | 3,972 | 1 | % | AA+ | |||||||||||||||||||||||||||||||||
France | 503 | — | % | AA | 4,908 | 1 | % | AA | |||||||||||||||||||||||||||||||||
Total eurozone | $ | 42,076 | 7 | % | AA+ | $ | 37,198 | 7 | % | AA+ | |||||||||||||||||||||||||||||||
Other concentrations: | |||||||||||||||||||||||||||||||||||||||||
United Kingdom | $ | 305,083 | 45 | % | AA- | $ | 238,238 | 41 | % | AA | |||||||||||||||||||||||||||||||
Canada | 139,834 | 21 | % | AAA | 129,191 | 22 | % | AA+ | |||||||||||||||||||||||||||||||||
Mexico | 21,404 | 3 | % | BBB | 22,402 | 4 | % | BBB+ | |||||||||||||||||||||||||||||||||
Other | 162,876 | 24 | % | AA | 149,563 | 26 | % | AA+ | |||||||||||||||||||||||||||||||||
Total other concentrations | $ | 629,197 | 93 | % | AA+ | $ | 539,394 | 93 | % | AA+ | |||||||||||||||||||||||||||||||
Total non-U.S. government | $ | 671,273 | 100 | % | AA- | $ | 576,592 | 100 | % | AA- | |||||||||||||||||||||||||||||||
December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||||||||
Fair value | % of total |
Weighted
average credit rating |
Fair value | % of total |
Weighted
average credit rating |
||||||||||||||||||||||||||||||||||||
Financial institutions: | |||||||||||||||||||||||||||||||||||||||||
U.S. banking | $ | 905,944 | 19 | % | A | $ | 969,570 | 20 | % | A- | |||||||||||||||||||||||||||||||
Foreign banking | 274,462 | 6 | % | A+ | 370,981 | 8 | % | A | |||||||||||||||||||||||||||||||||
Corporate/commercial finance | 273,682 | 6 | % | BBB- | 358,008 | 7 | % | BBB- | |||||||||||||||||||||||||||||||||
Insurance | 135,843 | 3 | % | A+ | 147,287 | 3 | % | A | |||||||||||||||||||||||||||||||||
Investment brokerage | 62,340 | 1 | % | A- | 53,173 | 1 | % | A- | |||||||||||||||||||||||||||||||||
Total financial institutions | 1,652,271 | 35 | % | A- | 1,899,019 | 39 | % | A- | |||||||||||||||||||||||||||||||||
Consumer non-cyclicals | 660,513 | 14 | % | BBB | 614,605 | 12 | % | BBB- | |||||||||||||||||||||||||||||||||
Consumer cyclical | 463,953 | 10 | % | BB+ | 452,375 | 9 | % | BBB- | |||||||||||||||||||||||||||||||||
Communications | 427,266 | 9 | % | BBB- | 454,400 | 9 | % | BB+ | |||||||||||||||||||||||||||||||||
Industrials | 424,506 | 9 | % | BB | 346,289 | 7 | % | BB | |||||||||||||||||||||||||||||||||
Technology | 339,666 | 7 | % | BBB- | 354,449 | 7 | % | BBB- | |||||||||||||||||||||||||||||||||
Utilities | 181,641 | 4 | % | BBB+ | 141,104 | 3 | % | BBB+ | |||||||||||||||||||||||||||||||||
Energy | 179,570 | 4 | % | BBB+ | 239,857 | 5 | % | BBB | |||||||||||||||||||||||||||||||||
Other | 326,565 | 8 | % | A+ | 428,156 | 9 | % | A+ | |||||||||||||||||||||||||||||||||
Total | $ | 4,655,951 | 100 | % | BBB | $ | 4,930,254 | 100 | % | BBB+ | |||||||||||||||||||||||||||||||
Credit quality summary: | |||||||||||||||||||||||||||||||||||||||||
Investment grade | $ | 3,720,558 | 80 | % | A- | $ | 3,935,941 | 80 | % | A- | |||||||||||||||||||||||||||||||
Non-investment grade | 935,393 | 20 | % | B | 994,313 | 20 | % | B+ | |||||||||||||||||||||||||||||||||
Total | $ | 4,655,951 | 100 | % | BBB | $ | 4,930,254 | 100 | % | BBB+ | |||||||||||||||||||||||||||||||
December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||
RMBS | CMBS | RMBS | CMBS | ||||||||||||||||||||||||||
Government agency | $ | 1,286,209 | $ | 311,698 | $ | 1,592,584 | $ | 332,383 | |||||||||||||||||||||
AAA | 109,903 | 972,222 | 64,685 | 991,627 | |||||||||||||||||||||||||
AA | 8,378 | 64,459 | 1,377 | 37,872 | |||||||||||||||||||||||||
A | 7,101 | 1,608 | 1,107 | 3,170 | |||||||||||||||||||||||||
BBB | 677 | 2,375 | 1,760 | — | |||||||||||||||||||||||||
Below BBB(1)
|
14,045 | 1,225 | 15,993 | — | |||||||||||||||||||||||||
Total | $ | 1,426,313 | $ | 1,353,587 | $ | 1,677,506 | $ | 1,365,052 | |||||||||||||||||||||
Asset-backed securities | |||||||||||||||||||||||||||||||||||||||||
AAA | AA | A | BBB | Below BBB | Total | ||||||||||||||||||||||||||||||||||||
At December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||
CLO - debt tranches | $ | 820,870 | $ | 55,107 | $ | 48,269 | $ | 46,150 | $ | 75,954 | $ | 1,046,350 | |||||||||||||||||||||||||||||
Auto | 278,964 | — | — | — | — | 278,964 | |||||||||||||||||||||||||||||||||||
Student loan | 113,294 | 7,513 | — | — | — | 120,807 | |||||||||||||||||||||||||||||||||||
Credit card | 10,254 | — | — | — | — | 10,254 | |||||||||||||||||||||||||||||||||||
Other | 214,749 | 15,744 | 17,075 | 15,641 | 494 | 263,703 | |||||||||||||||||||||||||||||||||||
Total | $ | 1,438,131 | $ | 78,364 | $ | 65,344 | $ | 61,791 | $ | 76,448 | $ | 1,720,078 | |||||||||||||||||||||||||||||
% of total | 84% | 5% | 4% | 4% | 3% | 100% | |||||||||||||||||||||||||||||||||||
At December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||
CLO - debt tranches | $ | 840,999 | $ | 46,463 | $ | 16,682 | $ | 10,385 | $ | 23,447 | $ | 937,976 | |||||||||||||||||||||||||||||
Auto | 349,103 | — | — | — | — | 349,103 | |||||||||||||||||||||||||||||||||||
Student loan | 69,690 | 5,003 | — | — | — | 74,693 | |||||||||||||||||||||||||||||||||||
Credit card | 19,657 | — | — | — | — | 19,657 | |||||||||||||||||||||||||||||||||||
Other | 177,488 | 9,142 | 27,860 | 2,186 | 588 | 217,264 | |||||||||||||||||||||||||||||||||||
Total | $ | 1,456,937 | $ | 60,608 | $ | 44,542 | $ | 12,571 | $ | 24,035 | $ | 1,598,693 | |||||||||||||||||||||||||||||
% of total | 91% | 4% | 3% | 1% | 1% | 100% | |||||||||||||||||||||||||||||||||||
G.O. | Revenue | Total |
% of total
fair value |
Gross
unrealized gains |
Gross
unrealized losses |
Weighted
average credit rating |
|||||||||||||||||||||||||||||||||||||||||
At December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
New York | $ | 18,346 | $ | 39,597 | $ | 57,943 | 20% | $ | 3,287 | $ | — | AA | |||||||||||||||||||||||||||||||||||
California | 8,041 | 33,340 | 41,381 | 14% | 1,881 | (2) | AA- | ||||||||||||||||||||||||||||||||||||||||
Texas | 8,884 | 25,193 | 34,077 | 12% | 1,635 | — | AA | ||||||||||||||||||||||||||||||||||||||||
Massachusetts | 21,090 | 10,842 | 31,932 | 11% | 700 | — | AA+ | ||||||||||||||||||||||||||||||||||||||||
Michigan | — | 15,413 | 15,413 | 5% | 948 | — | AA- | ||||||||||||||||||||||||||||||||||||||||
Other | 20,426 | 94,726 | 115,152 | 38% | 4,697 | (29) | A+ | ||||||||||||||||||||||||||||||||||||||||
$ | 76,787 | $ | 219,111 | $ | 295,898 | 100% | $ | 13,148 | $ | (31) | AA- | ||||||||||||||||||||||||||||||||||||
At December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||
New York | $ | 5,011 | $ | 44,549 | $ | 49,560 | 24% | $ | 1,139 | $ | (35) | AA+ | |||||||||||||||||||||||||||||||||||
California | 21,333 | 21,416 | 42,749 | 21% | 1,088 | (4) | AA | ||||||||||||||||||||||||||||||||||||||||
Massachusetts | 16,122 | 522 | 16,644 | 8% | 22 | (117) | AA | ||||||||||||||||||||||||||||||||||||||||
Texas | 3,702 | 11,232 | 14,934 | 7% | 418 | (88) | AA | ||||||||||||||||||||||||||||||||||||||||
Michigan | — | 13,952 | 13,952 | 7% | 194 | (17) | AA- | ||||||||||||||||||||||||||||||||||||||||
Other | 12,796 | 56,592 | 69,388 | 33% | 1,498 | (146) | A+ | ||||||||||||||||||||||||||||||||||||||||
$ | 58,964 | $ | 148,263 | $ | 207,227 | 100% | $ | 4,359 | $ | (407) | AA | ||||||||||||||||||||||||||||||||||||
December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||||||||
Severity of
Unrealized Loss |
Fair value |
Gross
unrealized losses |
% of
total gross unrealized losses |
Fair value |
Gross
unrealized losses |
% of
total gross unrealized losses |
|||||||||||||||||||||||||||||||||||
0-10% | $ | 1,212,074 | $ | (9,553) | 87 | % | $ | 2,961,063 | $ | (24,823) | 96 | % | |||||||||||||||||||||||||||||
10-20% | 6,102 | (726) | 7 | % | 6,571 | (1,006) | 4 | % | |||||||||||||||||||||||||||||||||
20-30% | 2,374 | (626) | 6 | % | 10 | (3) | — | % | |||||||||||||||||||||||||||||||||
30-40% | — | — | — | % | — | — | — | % | |||||||||||||||||||||||||||||||||
40-50% | — | — | — | % | — | — | — | % | |||||||||||||||||||||||||||||||||
> 50% | — | — | — | % | — | — | — | % | |||||||||||||||||||||||||||||||||
Total | $ | 1,220,550 | $ | (10,905) | 100 | % | $ | 2,967,644 | $ | (25,832) | 100 | % | |||||||||||||||||||||||||||||
December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||||||||
Severity of
Unrealized Loss |
Fair value |
Gross
unrealized losses |
% of
total gross unrealized losses |
Fair value |
Gross
unrealized losses |
% of
total gross unrealized losses |
|||||||||||||||||||||||||||||||||||
0-10% | $ | 220,424 | $ | (4,833) | 60 | % | $ | 197,731 | $ | (4,319) | 72 | % | |||||||||||||||||||||||||||||
10-20% | 14,068 | (1,889) | 24 | % | 7,577 | (1,063) | 18 | % | |||||||||||||||||||||||||||||||||
20-30% | 258 | (87) | 1 | % | 1,893 | (557) | 9 | % | |||||||||||||||||||||||||||||||||
30-40% | 1,279 | (799) | 10 | % | 106 | (63) | 1 | % | |||||||||||||||||||||||||||||||||
40-50% | 88 | (1) | — | % | — | — | — | % | |||||||||||||||||||||||||||||||||
> 50% | 346 | (397) | 5 | % | 13 | (18) | — | % | |||||||||||||||||||||||||||||||||
Total | $ | 236,463 | $ | (8,006) | 100 | % | $ | 207,320 | $ | (6,020) | 100 | % | |||||||||||||||||||||||||||||
December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||
Hedge funds | |||||||||||||||||||||||||||||
Long/short equity funds | $ | 25,300 | 3 | % | $ | 31,248 | 4 | % | |||||||||||||||||||||
Multi-strategy funds | 121,420 | 15 | % | 136,542 | 18 | % | |||||||||||||||||||||||
Total hedge funds | 146,720 | 18 | % | 167,790 | 22 | % | |||||||||||||||||||||||
Direct lending funds | 272,131 | 33 | % | 277,395 | 36 | % | |||||||||||||||||||||||
Private equity funds | 124,706 | 15 | % | 80,412 | 10 | % | |||||||||||||||||||||||
Real estate funds | 164,250 | 20 | % | 130,112 | 17 | % | |||||||||||||||||||||||
Total hedge, direct lending, private equity and real estate funds | 707,807 | 86 | % | 655,709 | 85 | % | |||||||||||||||||||||||
CLO-Equities | 6,173 | 1 | % | 14,328 | 2 | % | |||||||||||||||||||||||
Other privately held investments | 70,011 | 8 | % | 36,934 | 5 | % | |||||||||||||||||||||||
Overseas deposits | 45,165 | 5 | % | 63,952 | 8 | % | |||||||||||||||||||||||
Total other investments | $ | 829,156 | 100 | % | $ | 770,923 | 100 | % | |||||||||||||||||||||
Total cash provided by (used in)(1)
|
2020 | 2019 | 2018 | ||||||||||||||||||||
Operating activities | $ | 343,503 | $ | 199,004 | $ | 10,773 | |||||||||||||||||
Investing activities | 489,921 | (774,315) | 638,554 | ||||||||||||||||||||
Financing activities | (908,803) | 277,510 | (186,207) | ||||||||||||||||||||
Effect of exchange rate changes on cash | 2,154 | 44,238 | 3,114 | ||||||||||||||||||||
Increase (decrease) in cash and cash equivalents | $ | (73,225) | $ | (253,563) | $ | 466,234 | |||||||||||||||||
At December 31, | 2020 | 2019 | |||||||||||||||
Debt | $ | 1,309,695 | $ | 1,808,157 | |||||||||||||
Preferred shares | 550,000 | 775,000 | |||||||||||||||
Common equity | 4,745,694 | 4,769,008 | |||||||||||||||
Shareholders’ equity | 5,295,694 | 5,544,008 | |||||||||||||||
Total capital | $ | 6,605,389 | $ | 7,352,165 | |||||||||||||
Ratio of debt to total capital | 19.8 | % | 24.6 | % | |||||||||||||
Ratio of debt and preferred equity to total capital | 28.2 | % | 35.1 | % | |||||||||||||
Year ended December 31, | 2020 | 2019 | ||||||||||||||||||
Common equity - opening | $ | 4,769,008 | $ | 4,255,071 | ||||||||||||||||
Net income (loss) | (120,424) | 323,473 | ||||||||||||||||||
Change in unrealized gains on available for sale investments, net of tax | 239,114 | 349,886 | ||||||||||||||||||
Share repurchases | (10,382) | (10,165) | ||||||||||||||||||
Common share dividends | (142,405) | (138,487) | ||||||||||||||||||
Preferred share dividends | (30,250) | (41,112) | ||||||||||||||||||
Share-based compensation expense | 35,574 | 29,675 | ||||||||||||||||||
Foreign currency translation adjustment | 3,571 | (1,066) | ||||||||||||||||||
Other | 1,888 | 1,733 | ||||||||||||||||||
Common equity - closing | $ | 4,745,694 | $ | 4,769,008 | ||||||||||||||||
Rating agency | Agency’s description of rating | Rating and outlook |
Agency’s rating
definition |
Ranking of rating | ||||||||||||||||||||||||||||
Standard & Poor’s | An "opinion about the financial security characteristics of an insurance organization, with respect to its ability to pay under its insurance policies and contracts, in accordance with their terms". |
A+
(Negative) (1)
|
"Strong capacity to meet its financial commitments" | The ‘A’ category is the third highest out of ten major rating categories. The second through eighth major rating categories may be modified by the addition of a plus or minus sign to show relative standing within the major rating categories. | ||||||||||||||||||||||||||||
A.M. Best | An "opinion of an insurer’s financial strength and ability to meet its ongoing insurance policy and contract obligations". |
A
(Stable) (2)
|
"Excellent ability to meet ongoing insurance obligations" | The ‘A’ category is the third highest rating out of fourteen. Ratings outlooks (‘Positive’, ‘Negative’ and ‘Stable’) are assigned to indicate a rating’s potential direction over an intermediate term, generally defined as 36 months. | ||||||||||||||||||||||||||||
Moody’s Investors Service | "Opinions of the ability of insurance companies to pay punctually senior policyholder claims and obligations." |
A2
(Negative) (3)
|
"Offers good financial security" | The ‘A’ category is the third highest out of nine rating categories. Each of the second through seventh categories are subdivided into three subcategories, as indicated by an appended numerical modifier of ‘1’, ‘2’ and ‘3’. The ‘1’ modifier indicates that the obligation ranks in the higher end of the rating category, the ‘2’ modifier indicates a mid-category ranking and the ‘3’ modifier indicates a ranking in the lower end of the rating category. |
Payment due by period | ||||||||||||||||||||||||||||||||||||||
Contractual obligations and commitments | Total |
Less than 1
year |
1-3 years | 3-5 years |
More than
5 years |
|||||||||||||||||||||||||||||||||
Operating activities | ||||||||||||||||||||||||||||||||||||||
Estimated gross losses and loss expenses payments(1)
|
$ | 13,926,766 | $ | 3,839,180 | $ | 4,618,273 | $ | 2,400,797 | $ | 3,068,516 | ||||||||||||||||||||||||||||
Operating lease obligations(2)
|
140,263 | 17,215 | 35,044 | 21,990 | 66,014 | |||||||||||||||||||||||||||||||||
Investing activities | ||||||||||||||||||||||||||||||||||||||
Unfunded investment commitments(3)
|
634,206 | 249,609 | 112,109 | 125,563 | 146,925 | |||||||||||||||||||||||||||||||||
Financing activities | ||||||||||||||||||||||||||||||||||||||
Debt (principal payments)(4)
|
1,325,000 | — | — | — | 1,325,000 | |||||||||||||||||||||||||||||||||
Debt (interest payments)(4)(5)
|
863,561 | 60,680 | 121,539 | 121,796 | 559,546 | |||||||||||||||||||||||||||||||||
Total | $ | 16,889,796 | $ | 4,166,684 | $ | 4,886,965 | $ | 2,670,146 | $ | 5,166,001 | ||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||
At December 31, | Case reserves | IBNR | Total | Case reserves | IBNR | Total | |||||||||||||||||||||||||||||||||||
Insurance segment: | |||||||||||||||||||||||||||||||||||||||||
Property and other | $ | 704,107 | $ | 642,413 | $ | 1,346,520 | $ | 655,262 | $ | 327,475 | $ | 982,737 | |||||||||||||||||||||||||||||
Marine | 221,243 | 317,869 | 539,112 | 235,549 | 281,677 | 517,226 | |||||||||||||||||||||||||||||||||||
Aviation | 132,613 | 38,018 | 170,631 | 116,932 | 31,445 | 148,377 | |||||||||||||||||||||||||||||||||||
Credit and political risk | 8,917 | 152,134 | 161,051 | 5,905 | 124,109 | 130,014 | |||||||||||||||||||||||||||||||||||
Professional lines | 801,565 | 2,279,712 | 3,081,277 | 806,780 | 2,041,317 | 2,848,097 | |||||||||||||||||||||||||||||||||||
Liability | 376,486 | 1,635,421 | 2,011,907 | 396,837 | 1,473,280 | 1,870,117 | |||||||||||||||||||||||||||||||||||
Total Insurance | 2,244,931 | 5,065,567 | 7,310,498 | 2,217,265 | 4,279,303 | 6,496,568 | |||||||||||||||||||||||||||||||||||
Reinsurance segment: | |||||||||||||||||||||||||||||||||||||||||
Property and other | 1,086,265 | 1,027,316 | 2,113,581 | 879,301 | 1,186,655 | 2,065,958 | |||||||||||||||||||||||||||||||||||
Credit and surety | 149,778 | 157,196 | 306,974 | 125,029 | 190,368 | 315,397 | |||||||||||||||||||||||||||||||||||
Professional lines | 516,011 | 673,082 | 1,189,093 | 429,576 | 688,439 | 1,118,015 | |||||||||||||||||||||||||||||||||||
Motor | 809,389 | 540,623 | 1,350,012 | 778,534 | 516,148 | 1,294,681 | |||||||||||||||||||||||||||||||||||
Liability | 525,526 | 1,131,082 | 1,656,608 | 431,211 | 1,030,252 | 1,461,462 | |||||||||||||||||||||||||||||||||||
Total Reinsurance | 3,086,969 | 3,529,299 | 6,616,268 | 2,643,651 | 3,611,862 | 6,255,513 | |||||||||||||||||||||||||||||||||||
Total | $ | 5,331,900 | $ | 8,594,866 | $ | 13,926,766 | $ | 4,860,916 | $ | 7,891,165 | $ | 12,752,081 | |||||||||||||||||||||||||||||
INSURANCE | |||||||||||||||||||||||
Development pattern | Expected loss ratio | ||||||||||||||||||||||
Property and other | 5% lower | Unchanged | 5% higher | ||||||||||||||||||||
3 months shorter | $ | (57,199) | $ | (50,476) | $ | (43,738) | |||||||||||||||||
Unchanged | (9,188) | — | 9,172 | ||||||||||||||||||||
3 months longer | 44,366 | 56,197 | 68,014 | ||||||||||||||||||||
Marine | 5% lower | Unchanged | 5% higher | ||||||||||||||||||||
3 months shorter | $ | (47,269) | $ | (36,735) | $ | (26,215) | |||||||||||||||||
Unchanged | (12,303) | — | 12,293 | ||||||||||||||||||||
3 months longer | 15,612 | 29,302 | 42,988 | ||||||||||||||||||||
Aviation | 5% lower | Unchanged | 5% higher | ||||||||||||||||||||
3 months shorter | $ | (11,765) | $ | (10,282) | $ | (8,799) | |||||||||||||||||
Unchanged | (1,997) | — | 1,997 | ||||||||||||||||||||
3 months longer | 19,663 | 22,800 | 25,937 | ||||||||||||||||||||
Credit and political risk | 10% lower | Unchanged | 10% higher | ||||||||||||||||||||
3 months shorter | $ | (10,793) | $ | (40) | $ | 16,612 | |||||||||||||||||
Unchanged | (10,763) | — | 16,663 | ||||||||||||||||||||
3 months longer | (10,714) | 59 | 16,731 | ||||||||||||||||||||
Professional lines | 10% lower | Unchanged | 10% higher | ||||||||||||||||||||
6 months shorter | $ | (425,931) | $ | (117,973) | $ | 191,070 | |||||||||||||||||
Unchanged | (320,129) | — | 320,504 | ||||||||||||||||||||
6 months longer | (174,634) | 162,369 | 499,595 | ||||||||||||||||||||
Liability | 10% lower | Unchanged | 10% higher | ||||||||||||||||||||
6 months shorter | $ | (254,234) | $ | (47,019) | $ | 160,201 | |||||||||||||||||
Unchanged | (211,750) | — | 211,752 | ||||||||||||||||||||
6 months longer | (157,773) | 59,784 | 277,338 | ||||||||||||||||||||
REINSURANCE | |||||||||||||||||||||||
Development pattern | Expected loss ratio | ||||||||||||||||||||||
Property and other | 5% lower | Unchanged | 5% higher | ||||||||||||||||||||
3 months shorter | $ | (112,472) | $ | (53,558) | $ | 5,654 | |||||||||||||||||
Unchanged | (64,593) | — | 55,802 | ||||||||||||||||||||
3 months longer | (6,530) | 55,296 | 117,196 | ||||||||||||||||||||
Credit and surety | 10% lower | Unchanged | 10% higher | ||||||||||||||||||||
6 months shorter | $ | (33,479) | $ | (20,454) | $ | (7,198) | |||||||||||||||||
Unchanged | (11,616) | — | 13,995 | ||||||||||||||||||||
6 months longer | 30,774 | 43,182 | 57,935 | ||||||||||||||||||||
Professional lines | 10% lower | Unchanged | 10% higher | ||||||||||||||||||||
6 months shorter | $ | (121,004) | $ | (51,246) | $ | 21,768 | |||||||||||||||||
Unchanged | (65,076) | — | 70,517 | ||||||||||||||||||||
6 months longer | 105 | 71,519 | 142,065 | ||||||||||||||||||||
Motor | 10% lower | Unchanged | 10% higher | ||||||||||||||||||||
6 months shorter | $ | (74,686) | $ | (31,742) | $ | 13,676 | |||||||||||||||||
Unchanged | (44,892) | — | 46,875 | ||||||||||||||||||||
6 months longer | 12,492 | 61,015 | 110,035 | ||||||||||||||||||||
Liability | 10% lower | Unchanged | 10% higher | ||||||||||||||||||||
6 months shorter | $ | (201,254) | $ | (75,630) | $ | 72,860 | |||||||||||||||||
Unchanged | (119,751) | — | 129,118 | ||||||||||||||||||||
6 months longer | (20,305) | 107,362 | 229,220 | ||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||
At December 31, |
Case
reserves |
IBNR | Total |
Case
reserves |
IBNR | Total | |||||||||||||||||||||||||||||||||||
Insurance segment: | |||||||||||||||||||||||||||||||||||||||||
Property and other | $ | 232,796 | $ | 275,429 | $ | 508,225 | $ | 241,029 | $ | 117,165 | $ | 358,194 | |||||||||||||||||||||||||||||
Marine | 74,065 | 88,331 | 162,396 | 70,927 | 93,078 | 164,005 | |||||||||||||||||||||||||||||||||||
Aviation | 60,955 | 3,297 | 64,252 | 34,298 | 1,796 | 36,094 | |||||||||||||||||||||||||||||||||||
Credit and political risk | 7,239 | 44,428 | 51,667 | 9,730 | 24,885 | 34,615 | |||||||||||||||||||||||||||||||||||
Professional lines | 317,600 | 909,583 | 1,227,183 | 318,850 | 786,834 | 1,105,684 | |||||||||||||||||||||||||||||||||||
Liability | 185,453 | 997,191 | 1,182,644 | 215,203 | 893,178 | 1,108,381 | |||||||||||||||||||||||||||||||||||
Total Insurance | 878,108 | 2,318,259 | 3,196,367 | 890,037 | 1,916,936 | 2,806,973 | |||||||||||||||||||||||||||||||||||
Reinsurance segment: | |||||||||||||||||||||||||||||||||||||||||
Property and other * | 235,508 | 261,703 | 497,211 | 171,741 | * | 277,144 | * | 448,885 | |||||||||||||||||||||||||||||||||
Credit and surety | 29,138 | 41,005 | 70,143 | 18,490 | 45,985 | 64,475 | |||||||||||||||||||||||||||||||||||
Professional lines | 58,646 | 127,599 | 186,245 | 23,968 | 111,537 | 135,505 | |||||||||||||||||||||||||||||||||||
Motor | 105,793 | 122,660 | 228,453 | 99,730 | 109,765 | 209,495 | |||||||||||||||||||||||||||||||||||
Liability | 76,352 | 241,870 | 318,222 | 39,722 | 172,701 | 212,423 | |||||||||||||||||||||||||||||||||||
Total Reinsurance | 505,437 | 794,837 | 1,300,274 | 353,651 | 717,132 | 1,070,783 | |||||||||||||||||||||||||||||||||||
Total | $ | 1,383,545 | $ | 3,113,096 | $ | 4,496,641 | $ | 1,243,688 | $ | 2,634,068 | $ | 3,877,756 | |||||||||||||||||||||||||||||
Year ended December 31, | 2020 | 2019 | 2018 | ||||||||||||||||||||
Catastrophe | $ | 13,863 | $ | 17,149 | $ | 12,944 | |||||||||||||||||
Property | 135,312 | 184,552 | 237,527 | ||||||||||||||||||||
Credit and surety | 91,940 | 162,948 | 221,260 | ||||||||||||||||||||
Professional lines | 156,643 | 159,234 | 174,126 | ||||||||||||||||||||
Motor | 228,754 | 194,871 | 361,471 | ||||||||||||||||||||
Liability | 265,358 | 251,515 | 246,554 | ||||||||||||||||||||
Engineering | 15,472 | 51,052 | 48,692 | ||||||||||||||||||||
Agriculture | 52,682 | 194,379 | 205,116 | ||||||||||||||||||||
Accident and health | 300,646 | 335,538 | 284,675 | ||||||||||||||||||||
Marine and Aviation | 19,065 | 22,697 | 11,360 | ||||||||||||||||||||
Total estimated premiums | $ | 1,279,735 | $ | 1,573,935 | $ | 1,803,725 | |||||||||||||||||
Gross premiums written (reinsurance segment) | $ | 2,808,539 | $ | 3,222,927 | $ | 3,112,473 | |||||||||||||||||
As a % of total gross premiums written | 46 | % | 49 | % | 58 | % | |||||||||||||||||
At December 31, | 2020 | 2019 | |||||||||||||||
Default rates | 4.5% | 3.5% | |||||||||||||||
Loss severity rate | 50.0% | 35.0% | |||||||||||||||
Collateral spreads | 3.0% | 3.0% | |||||||||||||||
Estimated maturity dates | 5 years | 7 years | |||||||||||||||
At December 31, | 2020 | 2019 | |||||||||||||||
Discount rate | 1.3% | — | |||||||||||||||
Default rate | 0.5% | — | |||||||||||||||
Loss absorption yield | 1.0% | — | |||||||||||||||
Estimated maturity date | 5 years | — | |||||||||||||||
Fair value | Potential adverse change in fair value | ||||||||||||||||||||||||||||
Increase in
interest rate by 100 basis points |
Widening of
credit spreads by 100 basis points |
Total | |||||||||||||||||||||||||||
At December 31, 2020 | |||||||||||||||||||||||||||||
U.S. government and agency | $ | 1,918,699 | $ | (67,495) | $ | — | $ | (67,495) | |||||||||||||||||||||
Non-U.S. government | 671,273 | (23,491) | — | (23,491) | |||||||||||||||||||||||||
Agency RMBS | 1,286,209 | (41,345) | — | (41,345) | |||||||||||||||||||||||||
Securities exposed to credit spreads: | |||||||||||||||||||||||||||||
Corporate debt | 4,655,951 | (169,961) | (174,114) | (344,075) | |||||||||||||||||||||||||
CMBS | 1,353,587 | (64,430) | (68,978) | (133,408) | |||||||||||||||||||||||||
Non-agency RMBS | 140,104 | (2,137) | (4,022) | (6,159) | |||||||||||||||||||||||||
ABS | 1,720,078 | (15,460) | (53,007) | (68,467) | |||||||||||||||||||||||||
Municipals | 295,898 | (15,314) | (15,375) | (30,689) | |||||||||||||||||||||||||
$ | 12,041,799 | $ | (399,633) | $ | (315,496) | $ | (715,129) | ||||||||||||||||||||||
At December 31, 2019 | |||||||||||||||||||||||||||||
U.S. government and agency | $ | 2,112,881 | $ | (78,364) | $ | — | $ | (78,364) | |||||||||||||||||||||
Non-U.S. government | 576,592 | (20,430) | — | (20,430) | |||||||||||||||||||||||||
Agency RMBS | 1,592,584 | (54,850) | — | (54,850) | |||||||||||||||||||||||||
Securities exposed to credit spreads: | |||||||||||||||||||||||||||||
Corporate debt | 4,930,254 | (154,282) | (162,741) | (317,023) | |||||||||||||||||||||||||
CMBS | 1,365,052 | (69,922) | (74,549) | (144,471) | |||||||||||||||||||||||||
Non-agency RMBS | 84,922 | (1,766) | (3,205) | (4,971) | |||||||||||||||||||||||||
ABS | 1,598,693 | (10,951) | (47,745) | (58,696) | |||||||||||||||||||||||||
Municipals | 207,227 | (9,045) | (9,399) | (18,444) | |||||||||||||||||||||||||
$ | 12,468,205 | $ | (399,610) | $ | (297,639) | $ | (697,249) | ||||||||||||||||||||||
AUD | NZD | CAD | EUR | GBP | JPY | Other | Total | ||||||||||||||||||||||||||||||||||||||||||||||
At December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net managed assets (liabilities), excluding derivatives
|
$ | 7,100 | $ | 2,067 | $ | 231,382 | $ | (527,046) | $ | (412,049) | $ | (125,523) | $ | 70,496 | $ | (753,573) | |||||||||||||||||||||||||||||||||||||
Foreign currency derivatives, net
|
(769) | 5,752 | (205,005) | 466,006 | 329,055 | 122,459 | 9,097 | 726,595 | |||||||||||||||||||||||||||||||||||||||||||||
Net managed foreign currency exposure
|
6,331 | 7,819 | 26,377 | (61,040) | (82,994) | (3,064) | 79,593 | (26,978) | |||||||||||||||||||||||||||||||||||||||||||||
Other net foreign currency exposure | 1 | — | 118 | (2,369) | (1,245) | — | 38,631 | 35,136 | |||||||||||||||||||||||||||||||||||||||||||||
Total net foreign currency exposure | $ | 6,332 | $ | 7,819 | $ | 26,495 | $ | (63,409) | $ | (84,239) | $ | (3,064) | $ | 118,224 | $ | 8,158 | |||||||||||||||||||||||||||||||||||||
Net foreign currency exposure as a percentage of total shareholders’ equity
|
0.1 | % | 0.1 | % | 0.5 | % | (1.2 | %) | (1.6 | %) | (0.1 | %) | 2.2 | % | 0.2 | % | |||||||||||||||||||||||||||||||||||||
Pre-tax impact of net foreign currency exposure on shareholders’ equity given a hypothetical 10% rate movement(1)
|
$ | 633 | $ | 782 | $ | 2,650 | $ | (6,341) | $ | (8,424) | $ | (306) | $ | 11,822 | $ | 816 | |||||||||||||||||||||||||||||||||||||
At December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net managed assets (liabilities), excluding derivatives
|
$ | 42,435 | $ | (2,247) | $ | 157,512 | $ | (442,481) | $ | (198,535) | $ | (160,737) | $ | 114,073 | $ | (489,980) | |||||||||||||||||||||||||||||||||||||
Foreign currency derivatives, net
|
(23,881) | 6,407 | (125,019) | 356,501 | 144,866 | 204,918 | 4,366 | 568,158 | |||||||||||||||||||||||||||||||||||||||||||||
Net managed foreign currency exposure
|
18,554 | 4,160 | 32,493 | (85,980) | (53,669) | 44,181 | 118,439 | 78,178 | |||||||||||||||||||||||||||||||||||||||||||||
Other net foreign currency exposure | 1 | — | 116 | (319) | (316) | — | 51,323 | 50,805 | |||||||||||||||||||||||||||||||||||||||||||||
Total net foreign currency exposure | $ | 18,555 | $ | 4,160 | $ | 32,609 | $ | (86,299) | $ | (53,985) | $ | 44,181 | $ | 169,762 | $ | 128,983 | |||||||||||||||||||||||||||||||||||||
Net foreign currency exposure as a percentage of total shareholders’ equity
|
0.3 | % | 0.1 | % | 0.6 | % | (1.6 | %) | (1.0 | %) | 0.8 | % | 3.1 | % | 2.3 | % | |||||||||||||||||||||||||||||||||||||
Pre-tax impact of net foreign currency exposure on shareholders’ equity given a hypothetical 10% rate movement(1)
|
$ | 1,856 | $ | 416 | $ | 3,261 | $ | (8,630) | $ | (5,399) | $ | 4,418 | $ | 16,976 | $ | 12,898 | |||||||||||||||||||||||||||||||||||||
Index to Consolidated Financial Statements and Accompanying Notes | Page | ||||
Report of Independent Registered Public Accounting Firm | |||||
Consolidated Balance Sheets at December 31, 2020 and 2019 | |||||
Consolidated Statements of Operations for the years ended December 31, 2020, 2019 and 2018 | |||||
Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2020, 2019 and 2018 | |||||
Consolidated Statements of Changes in Shareholders' Equity for the years ended December 31, 2020, 2019 and 2018 | |||||
Consolidated Statements of Cash Flows for the years ended December 31, 2020, 2019 and 2018 | |||||
Notes to Consolidated Financial Statements | |||||
Note 1 – Organization | |||||
Note 2 – Basis of Presentation and Significant Accounting Policies | |||||
Note 3 – Segment Information | |||||
Note 4 – Goodwill and Intangible Assets | |||||
Note 5 – Investments | |||||
Note 6 – Fair Value Measurements | |||||
Note 7 – Derivative Instruments | |||||
Note 8 – Reserve for Losses and Loss Expenses | |||||
Note 9 – Reinsurance | |||||
Note 10 – Debt and Financing Arrangements | |||||
Note 11 – Commitments and Contingencies | |||||
Note 12 – Leases | |||||
Note 13 – Earnings Per Common Share | |||||
Note 14 – Shareholders’ Equity | |||||
Note 15 – Retirement Plans | |||||
Note 16 – Share-Based Compensation | |||||
Note 17 – Related Party Transactions | |||||
Note 18 – Reorganization Expenses | |||||
Note 19 – Income Taxes | |||||
Note 20 – Other Comprehensive Income (Loss) | |||||
Note 21 – Statutory Financial Information | |||||
Note 22 – Unaudited Condensed Quarterly Financial Data | |||||
Note 23 – Subsequent Events | |||||
/s/ Deloitte Ltd. | ||
Hamilton, Bermuda | ||
February 26, 2021 |
2020 | 2019 | ||||||||||
(in thousands) | |||||||||||
Assets | |||||||||||
Investments: | |||||||||||
Fixed maturities, available for sale, at fair value
(Amortized cost 2020: $11,566,930; 2019: $12,263,240
Allowance for expected credit losses 2020: $323)
|
$ | 12,041,799 | $ | 12,468,205 | |||||||
Equity securities, at fair value
(Cost 2020: $421,744; 2019: $398,956)
|
518,445 | 474,207 | |||||||||
Mortgage loans, held for investment, at fair value
(Allowance for expected credit losses 2020: $nil)
|
593,290 | 432,748 | |||||||||
Other investments, at fair value | 829,156 | 770,923 | |||||||||
Equity method investments | 114,209 | 117,821 | |||||||||
Short-term investments, at fair value | 161,897 | 38,471 | |||||||||
Total investments | 14,258,796 | 14,302,375 | |||||||||
Cash and cash equivalents | 902,831 | 1,241,109 | |||||||||
Restricted cash and cash equivalents | 600,401 | 335,348 | |||||||||
Accrued interest receivable | 65,020 | 78,085 | |||||||||
Insurance and reinsurance premium balances receivable
(Allowance for expected credit losses 2020: $8,836)
|
2,738,342 | 3,071,390 | |||||||||
Reinsurance recoverable on unpaid losses and loss expenses
(Allowance for expected credit losses 2020: $23,711)
|
4,496,641 | 3,877,756 | |||||||||
Reinsurance recoverable on paid losses and loss expenses | 434,201 | 327,795 | |||||||||
Deferred acquisition costs | 431,439 | 492,119 | |||||||||
Prepaid reinsurance premiums | 1,194,455 | 1,101,889 | |||||||||
Receivable for investments sold | 2,150 | 35,659 | |||||||||
Goodwill | 100,801 | 102,003 | |||||||||
Intangible assets | 219,633 | 230,550 | |||||||||
Value of business acquired | 3,854 | 8,992 | |||||||||
Operating lease right-of-use assets | 123,579 | 111,092 | |||||||||
Other assets | 305,544 | 287,892 | |||||||||
Total assets | $ | 25,877,687 | $ | 25,604,054 | |||||||
Liabilities | |||||||||||
Reserve for losses and loss expenses | $ | 13,926,766 | $ | 12,752,081 | |||||||
Unearned premiums | 3,685,886 | 3,626,246 | |||||||||
Insurance and reinsurance balances payable | 1,092,042 | 1,349,082 | |||||||||
Debt | 1,309,695 | 1,808,157 | |||||||||
Payable for investments purchased | 104,777 | 32,985 | |||||||||
Operating lease liabilities | 140,263 | 115,584 | |||||||||
Other liabilities | 322,564 | 375,911 | |||||||||
Total liabilities | 20,581,993 | 20,060,046 | |||||||||
Commitments and Contingencies | |||||||||||
Shareholders' equity | |||||||||||
Preferred shares | 550,000 | 775,000 | |||||||||
Common shares (shares issued 2020: 176,580; 2019: 176,580
shares outstanding 2020: 84,353; 2019: 83,959)
|
2,206 | 2,206 | |||||||||
Additional paid-in capital | 2,330,054 | 2,317,212 | |||||||||
Accumulated other comprehensive income | 414,395 | 171,710 | |||||||||
Retained earnings | 5,763,607 | 6,056,686 | |||||||||
Treasury shares, at cost (2020: 92,227; 2019: 92,621)
|
(3,764,568) | (3,778,806) | |||||||||
Total shareholders’ equity | 5,295,694 | 5,544,008 | |||||||||
Total liabilities and shareholders’ equity | $ | 25,877,687 | $ | 25,604,054 |
2020 | 2019 | 2018 | |||||||||||||||
(in thousands, except for per share data) | |||||||||||||||||
Revenues | |||||||||||||||||
Net premiums earned | $ | 4,371,309 | $ | 4,587,178 | $ | 4,791,495 | |||||||||||
Net investment income | 349,601 | 478,572 | 438,507 | ||||||||||||||
Other insurance related income (loss) | (8,089) | 16,444 | 10,622 | ||||||||||||||
Net investment gains (losses): | |||||||||||||||||
Allowance for expected credit losses | (323) | — | — | ||||||||||||||
Impairment losses | (1,486) | — | — | ||||||||||||||
Other-than-temporary impairment ("OTTI") losses | — | (6,984) | (9,733) | ||||||||||||||
Other realized and unrealized investment gains (losses) | 130,942 | 98,217 | (140,485) | ||||||||||||||
Total net investment gains (losses) | 129,133 | 91,233 | (150,218) | ||||||||||||||
Total revenues | 4,841,954 | 5,173,427 | 5,090,406 | ||||||||||||||
Expenses | |||||||||||||||||
Net losses and loss expenses | 3,281,252 | 3,044,798 | 3,190,287 | ||||||||||||||
Acquisition costs | 929,517 | 1,024,582 | 968,835 | ||||||||||||||
General and administrative expenses | 579,790 | 634,831 | 627,389 | ||||||||||||||
Foreign exchange losses (gains) | 81,069 | (12,041) | (29,165) | ||||||||||||||
Interest expense and financing costs | 75,049 | 68,107 | 67,432 | ||||||||||||||
Reorganization expenses | 7,881 | 37,384 | 66,940 | ||||||||||||||
Amortization of value of business acquired | 5,139 | 26,722 | 172,332 | ||||||||||||||
Amortization of intangible assets | 11,390 | 11,597 | 13,814 | ||||||||||||||
Total expenses | 4,971,087 | 4,835,980 | 5,077,864 | ||||||||||||||
Income (loss) before income taxes and interest in income (loss) of equity method investments | (129,133) | 337,447 | 12,542 | ||||||||||||||
Income tax (expense) benefit | 12,321 | (23,692) | 29,486 | ||||||||||||||
Interest in income (loss) of equity method investments | (3,612) | 9,718 | 993 | ||||||||||||||
Net income (loss) | (120,424) | 323,473 | 43,021 | ||||||||||||||
Preferred share dividends | 30,250 | 41,112 | 42,625 | ||||||||||||||
Net income (loss) available (attributable) to common shareholders | $ | (150,674) | $ | 282,361 | $ | 396 | |||||||||||
Per share data | |||||||||||||||||
Earnings (loss) per common share: | |||||||||||||||||
Earnings (loss) per common share
|
$ | (1.79) | $ | 3.37 | $ | — | |||||||||||
Earnings (loss) per diluted common share | $ | (1.79) | $ | 3.34 | $ | — | |||||||||||
Weighted average common shares outstanding | 84,262 | 83,894 | 83,501 | ||||||||||||||
Weighted average diluted common shares outstanding | 84,262 | 84,473 | 84,007 |
2020 | 2019 | 2018 | |||||||||||||||
(in thousands) | |||||||||||||||||
Net income (loss) | $ | (120,424) | $ | 323,473 | $ | 43,021 | |||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||
Available for sale investments: | |||||||||||||||||
Unrealized gains (losses) arising during the year for which an allowance for expected credit losses has not been recognized | 317,166 | 374,615 | (291,731) | ||||||||||||||
Unrealized gains (losses) arising during the year for which an allowance for expected credit losses has been recognized | (40) | — | — | ||||||||||||||
Adjustment for reclassification of net realized (gains) losses, impairment losses and OTTI losses recognized in net income (loss) | (78,012) | (24,729) | 100,902 | ||||||||||||||
Unrealized gains (losses) arising during the year, net of reclassification adjustment | 239,114 | 349,886 | (190,829) | ||||||||||||||
Foreign currency translation adjustment | 3,571 | (1,066) | (11,165) | ||||||||||||||
Total other comprehensive income (loss), net of tax | 242,685 | 348,820 | (201,994) | ||||||||||||||
Comprehensive income (loss) | $ | 122,261 | $ | 672,293 | $ | (158,973) |
2020 | 2019 | 2018 | |||||||||||||||
(in thousands) | |||||||||||||||||
Preferred shares | |||||||||||||||||
Balance at beginning of year | $ | 775,000 | $ | 775,000 | $ | 775,000 | |||||||||||
Shares repurchased | (225,000) | — | — | ||||||||||||||
Balance at end of year | 550,000 | 775,000 | 775,000 | ||||||||||||||
Common shares (par value) | |||||||||||||||||
Balance at beginning and end of year | 2,206 | 2,206 | 2,206 | ||||||||||||||
Additional paid-in capital | |||||||||||||||||
Balance at beginning of year | 2,317,212 | 2,308,583 | 2,299,166 | ||||||||||||||
Treasury shares reissued | (22,732) | (21,046) | (24,088) | ||||||||||||||
Share-based compensation expense | 35,574 | 29,675 | 33,505 | ||||||||||||||
Balance at end of year | 2,330,054 | 2,317,212 | 2,308,583 | ||||||||||||||
Accumulated other comprehensive income (loss) | |||||||||||||||||
Balance at beginning of year | 171,710 | (177,110) | 92,382 | ||||||||||||||
Unrealized gains (losses) on available-for-sale investments, net of tax: | |||||||||||||||||
Balance at beginning of year | 181,521 | (168,365) | 89,962 | ||||||||||||||
Cumulative effect of adoption of ASU No. 2018-02
|
— | — | 2,106 | ||||||||||||||
Cumulative effect of adoption of ASU No. 2016-01, net of taxes
|
— | — | (69,604) | ||||||||||||||
Unrealized gains (losses) arising during the year, net of reclassification adjustment | 239,114 | 349,886 | (190,829) | ||||||||||||||
Balance at end of year | 420,635 | 181,521 | (168,365) | ||||||||||||||
Cumulative foreign currency translation adjustments, net of tax: | |||||||||||||||||
Balance at beginning of year | (9,811) | (8,745) | 2,420 | ||||||||||||||
Foreign currency translation adjustment | 3,571 | (1,066) | (11,165) | ||||||||||||||
Balance at end of year | (6,240) | (9,811) | (8,745) | ||||||||||||||
Balance at end of year | 414,395 | 171,710 | (177,110) | ||||||||||||||
Retained earnings | |||||||||||||||||
Balance at beginning of year | 6,056,686 | 5,912,812 | 5,979,666 | ||||||||||||||
Cumulative effect of adoption of ASU No. 2018-02 | — | — | (2,106) | ||||||||||||||
Cumulative effect of adoption of ASU No. 2016-01, net of taxes | — | — | 69,604 | ||||||||||||||
Net income (loss) | (120,424) | 323,473 | 43,021 | ||||||||||||||
Preferred share dividends (1)
|
(30,250) | (41,112) | (42,625) | ||||||||||||||
Common share dividends (1)
|
(142,405) | (138,487) | (134,748) | ||||||||||||||
Balance at end of year | 5,763,607 | 6,056,686 | 5,912,812 | ||||||||||||||
Treasury shares, at cost | |||||||||||||||||
Balance at beginning of year | (3,778,806) | (3,791,420) | (3,807,156) | ||||||||||||||
Shares repurchased | (10,382) | (10,165) | (10,080) | ||||||||||||||
Shares reissued | 24,620 | 22,779 | 25,816 | ||||||||||||||
Balance at end of year | (3,764,568) | (3,778,806) | (3,791,420) | ||||||||||||||
Total shareholders' equity | $ | 5,295,694 | $ | 5,544,008 | $ | 5,030,071 | |||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in thousands) | |||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||
Net income (loss) | $ | (120,424) | $ | 323,473 | $ | 43,021 | |||||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||||||||
Net investment (gains) losses | (129,133) | (91,233) | 144,297 | ||||||||||||||
Net realized and unrealized gains on other investments | (16,059) | (60,038) | (45,153) | ||||||||||||||
Amortization of fixed maturities | 32,893 | 18,499 | 24,663 | ||||||||||||||
Interest in (income) loss of equity method investments | 3,612 | (9,718) | 495 | ||||||||||||||
Amortization of value of business acquired | 5,139 | 26,722 | 172,332 | ||||||||||||||
Other amortization and depreciation | 65,797 | 75,229 | 9,795 | ||||||||||||||
Share-based compensation expense, net of cash payments | 29,005 | 32,491 | 34,346 | ||||||||||||||
Non-cash foreign exchange gains | — | (6,043) | — | ||||||||||||||
Changes in: | |||||||||||||||||
Accrued interest receivable | 13,097 | 2,140 | (3,184) | ||||||||||||||
Reinsurance recoverable on unpaid and paid losses and loss expenses | (723,860) | (412,076) | (766,690) | ||||||||||||||
Deferred acquisition costs | 60,828 | 74,331 | (98,329) | ||||||||||||||
Prepaid reinsurance premiums | (94,122) | (88,789) | (212,654) | ||||||||||||||
Reserve for losses and loss expenses | 1,178,292 | 467,428 | 442,839 | ||||||||||||||
Unearned premiums | 62,999 | (7,958) | 29,760 | ||||||||||||||
Insurance and reinsurance balances, net | 72,503 | (51,075) | 208,783 | ||||||||||||||
Other items | (97,064) | (94,379) | 26,452 | ||||||||||||||
Net cash provided by operating activities | 343,503 | 199,004 | 10,773 | ||||||||||||||
Cash flows from investing activities: | |||||||||||||||||
Purchases of: | |||||||||||||||||
Fixed maturities | (10,494,198) | (9,994,025) | (8,464,140) | ||||||||||||||
Equity securities | (117,883) | (58,022) | (73,107) | ||||||||||||||
Mortgage loans | (199,259) | (194,020) | (106,171) | ||||||||||||||
Other investments | (166,602) | (218,178) | (180,126) | ||||||||||||||
Short-term investments | (365,170) | (179,230) | (305,670) | ||||||||||||||
Proceeds from the sale of: | |||||||||||||||||
Fixed maturities | 9,784,137 | 8,018,658 | 7,586,536 | ||||||||||||||
Equity securities | 119,381 | 36,016 | 246,196 | ||||||||||||||
Other investments | 166,976 | 249,129 | 361,030 | ||||||||||||||
Short-term investments | 171,976 | 266,057 | 178,983 | ||||||||||||||
Proceeds from redemption of fixed maturities | 1,526,396 | 1,282,796 | 1,241,214 | ||||||||||||||
Proceeds from redemption of short-term investments | 69,707 | 19,366 | 45,831 | ||||||||||||||
Proceeds from the repayment of mortgage loans | 39,121 | 60,244 | 133,081 | ||||||||||||||
Purchase of other assets | (44,661) | (63,106) | (25,103) | ||||||||||||||
Net cash provided by (used in) investing activities | 489,921 | (774,315) | 638,554 | ||||||||||||||
Cash flows from financing activities: | |||||||||||||||||
Net proceeds from issuance of senior notes | — | 717,509 | — | ||||||||||||||
Redemption of senior notes | (500,000) | (250,000) | — | ||||||||||||||
Repurchase of preferred shares | (225,000) | — | — | ||||||||||||||
Taxes paid on withholding shares | (10,382) | (10,165) | (10,080) | ||||||||||||||
Dividends paid - common shares | (141,590) | (137,209) | (133,502) | ||||||||||||||
Dividends paid - preferred shares | (31,831) | (42,625) | (42,625) | ||||||||||||||
Net cash provided by (used in) financing activities | (908,803) | 277,510 | (186,207) | ||||||||||||||
Effect of exchange rate changes on foreign currency cash, cash equivalents and restricted cash | 2,154 | 44,238 | 3,114 | ||||||||||||||
Increase (decrease) in cash, cash equivalents and restricted cash | (73,225) | (253,563) | 466,234 | ||||||||||||||
Cash, cash equivalents and restricted cash - beginning of year | 1,576,457 | 1,830,020 | 1,363,786 | ||||||||||||||
Cash, cash equivalents and restricted cash - end of year | $ | 1,503,232 | $ | 1,576,457 | $ | 1,830,020 | |||||||||||
Supplemental disclosures of cash flow information: | |||||||||||||||||
Income taxes paid | $ | 4,414 | $ | 39,949 | $ | 15,698 | |||||||||||
Interest paid | $ | 54,108 | $ | 59,563 | $ | 64,822 |
At and year ended December 31, 2020 | Insurance | Reinsurance | Total | ||||||||||||||||||||
Gross premiums written | $ | 4,018,399 | $ | 2,808,539 | $ | 6,826,938 | |||||||||||||||||
Net premiums written | 2,357,501 | 1,978,908 | 4,336,409 | ||||||||||||||||||||
Net premiums earned | 2,299,038 | 2,072,271 | 4,371,309 | ||||||||||||||||||||
Other insurance related income (loss) | 2,647 | (10,736) | (8,089) | ||||||||||||||||||||
Net losses and loss expenses | (1,697,014) | (1,584,238) | (3,281,252) | ||||||||||||||||||||
Acquisition costs | (461,533) | (467,984) | (929,517) | ||||||||||||||||||||
Underwriting-related general and administrative expenses | (378,839) | (99,129) | (477,968) | ||||||||||||||||||||
Underwriting income (loss) | $ | (235,701) | $ | (89,816) | $ | (325,517) | |||||||||||||||||
Net investment income | 349,601 | ||||||||||||||||||||||
Net investment gains | 129,133 | ||||||||||||||||||||||
Corporate expenses | (101,822) | ||||||||||||||||||||||
Foreign exchange losses | (81,069) | ||||||||||||||||||||||
Interest expense and financing costs | (75,049) | ||||||||||||||||||||||
Reorganization expenses | (7,881) | ||||||||||||||||||||||
Amortization of value of business acquired | (5,139) | ||||||||||||||||||||||
Amortization of intangible assets | (11,390) | ||||||||||||||||||||||
Income (loss) before income taxes and interest in income (loss) of equity method investments | $ | (129,133) | |||||||||||||||||||||
Net losses and loss expenses ratio | 73.8 | % | 76.4 | % | 75.1 | % | |||||||||||||||||
Acquisition cost ratio | 20.1 | % | 22.6 | % | 21.3 | % | |||||||||||||||||
General and administrative expense ratio | 16.5 | % | 4.8 | % | 13.2 | % | |||||||||||||||||
Combined ratio | 110.4 | % | 103.8 | % | 109.6 | % | |||||||||||||||||
Goodwill and intangible assets | $ | 320,434 | $ | — | $ | 320,434 | |||||||||||||||||
At and year ended December 31, 2019 | Insurance | Reinsurance | Total | ||||||||||||||||||||
Gross premiums written | $ | 3,675,931 | $ | 3,222,927 | $ | 6,898,858 | |||||||||||||||||
Net premiums written | 2,209,155 | 2,280,460 | 4,489,615 | ||||||||||||||||||||
Net premiums earned | 2,190,084 | 2,397,094 | 4,587,178 | ||||||||||||||||||||
Other insurance related income | 2,858 | 13,586 | 16,444 | ||||||||||||||||||||
Net losses and loss expenses | (1,278,679) | (1,766,119) | (3,044,798) | ||||||||||||||||||||
Acquisition costs | (468,281) | (556,301) | (1,024,582) | ||||||||||||||||||||
Underwriting-related general and administrative expenses | (401,963) | (103,772) | (505,735) | ||||||||||||||||||||
Underwriting income (loss) | $ | 44,019 | $ | (15,512) | $ | 28,507 | |||||||||||||||||
Net investment income | 478,572 | ||||||||||||||||||||||
Net investment gains | 91,233 | ||||||||||||||||||||||
Corporate expenses | (129,096) | ||||||||||||||||||||||
Foreign exchange gains | 12,041 | ||||||||||||||||||||||
Interest expense and financing costs | (68,107) | ||||||||||||||||||||||
Reorganization expenses | (37,384) | ||||||||||||||||||||||
Amortization of value of business acquired | (26,722) | ||||||||||||||||||||||
Amortization of intangible assets | (11,597) | ||||||||||||||||||||||
Income (loss) before income taxes and interest in income (loss) of equity method investments | $ | 337,447 | |||||||||||||||||||||
Net losses and loss expenses ratio | 58.4 | % | 73.7 | % | 66.4 | % | |||||||||||||||||
Acquisition cost ratio | 21.4 | % | 23.2 | % | 22.3 | % | |||||||||||||||||
General and administrative expense ratio | 18.3 | % | 4.3 | % | 13.9 | % | |||||||||||||||||
Combined ratio | 98.1 | % | 101.2 | % | 102.6 | % | |||||||||||||||||
Goodwill and intangible assets | $ | 332,553 | $ | — | $ | 332,553 | |||||||||||||||||
At and year ended December 31, 2018 | Insurance | Reinsurance | Total | ||||||||||||||||||||
Gross premiums written | $ | 3,797,592 | $ | 3,112,473 | $ | 6,910,065 | |||||||||||||||||
Net premiums written | 2,324,747 | 2,334,215 | 4,658,962 | ||||||||||||||||||||
Net premiums earned | 2,362,606 | 2,428,889 | 4,791,495 | ||||||||||||||||||||
Other insurance related income | 3,460 | 7,162 | 10,622 | ||||||||||||||||||||
Net losses and loss expenses | (1,494,323) | (1,695,964) | (3,190,287) | ||||||||||||||||||||
Acquisition costs | (399,193) | (569,642) | (968,835) | ||||||||||||||||||||
Underwriting-related general and administrative expenses | (395,252) | (123,916) | (519,168) | ||||||||||||||||||||
Underwriting income | $ | 77,298 | $ | 46,529 | $ | 123,827 | |||||||||||||||||
Net investment income | 438,507 | ||||||||||||||||||||||
Net investment losses | (150,218) | ||||||||||||||||||||||
Corporate expenses | (108,221) | ||||||||||||||||||||||
Foreign exchange gains | 29,165 | ||||||||||||||||||||||
Interest expense and financing costs | (67,432) | ||||||||||||||||||||||
Reorganization expenses | (66,940) | ||||||||||||||||||||||
Amortization of value of business acquired | (172,332) | ||||||||||||||||||||||
Amortization of intangible assets | (13,814) | ||||||||||||||||||||||
Income (loss) before income taxes and interest in income (loss) of equity method investments | $ | 12,542 | |||||||||||||||||||||
Net losses and loss expenses ratio | 63.2 | % | 69.8 | % | 66.6 | % | |||||||||||||||||
Acquisition cost ratio | 16.9 | % | 23.5 | % | 20.2 | % | |||||||||||||||||
General and administrative expense ratio | 16.8 | % | 5.1 | % | 13.1 | % | |||||||||||||||||
Combined ratio | 96.9 | % | 98.4 | % | 99.9 | % | |||||||||||||||||
Goodwill and intangible assets | $ | 343,571 | $ | — | $ | 343,571 | |||||||||||||||||
Years ended December 31, | 2020 | 2019 | 2018 | ||||||||||||||||||||
Bermuda | $ | 602,432 | $ | 738,258 | $ | 606,452 | |||||||||||||||||
Ireland | 1,516,596 | 1,679,646 | 1,805,882 | ||||||||||||||||||||
U.S. | 3,398,108 | 3,090,547 | 2,811,537 | ||||||||||||||||||||
Lloyd's of London | 1,309,802 | 1,390,407 | 1,686,194 | ||||||||||||||||||||
Gross premiums written | $ | 6,826,938 | $ | 6,898,858 | $ | 6,910,065 | |||||||||||||||||
Years ended December 31, | 2020 | 2019 | 2018 | ||||||||||||||||||||
Insurance | |||||||||||||||||||||||
Property | $ | 605,650 | $ | 633,550 | $ | 796,945 | |||||||||||||||||
Marine | 293,746 | 281,764 | 300,944 | ||||||||||||||||||||
Terrorism | 47,378 | 47,345 | 49,150 | ||||||||||||||||||||
Aviation | 70,910 | 55,028 | 74,203 | ||||||||||||||||||||
Credit and political risk | 105,869 | 91,698 | 102,825 | ||||||||||||||||||||
Professional lines | 715,276 | 661,250 | 570,241 | ||||||||||||||||||||
Liability | 313,291 | 264,667 | 229,373 | ||||||||||||||||||||
Accident and health | 143,723 | 144,499 | 207,777 | ||||||||||||||||||||
Discontinued lines - Novae | 3,195 | 10,283 | 31,148 | ||||||||||||||||||||
Total Insurance | 2,299,038 | 2,190,084 | 2,362,606 | ||||||||||||||||||||
Reinsurance | |||||||||||||||||||||||
Catastrophe | 244,934 | 267,591 | 250,016 | ||||||||||||||||||||
Property | 256,244 | 311,625 | 317,038 | ||||||||||||||||||||
Credit and surety | 187,721 | 208,717 | 250,276 | ||||||||||||||||||||
Professional lines | 207,605 | 206,328 | 220,687 | ||||||||||||||||||||
Motor | 255,916 | 398,565 | 438,693 | ||||||||||||||||||||
Liability | 396,906 | 373,664 | 363,292 | ||||||||||||||||||||
Engineering | 60,521 | 63,899 | 67,932 | ||||||||||||||||||||
Agriculture | 73,696 | 188,925 | 176,435 | ||||||||||||||||||||
Marine and aviation | 53,516 | 59,209 | 35,570 | ||||||||||||||||||||
Accident and health | 333,996 | 319,619 | 299,813 | ||||||||||||||||||||
Discontinued lines - Novae | 1,216 | (1,048) | 9,137 | ||||||||||||||||||||
Total Reinsurance | 2,072,271 | 2,397,094 | 2,428,889 | ||||||||||||||||||||
Total | $ | 4,371,309 | $ | 4,587,178 | $ | 4,791,495 | |||||||||||||||||
Goodwill |
Intangible
assets with an indefinite life |
Intangible
assets with a finite life |
Total | ||||||||||||||||||||||||||
Balance at December 31, 2018 | |||||||||||||||||||||||||||||
Gross amount | $ | 97,092 | $ | 120,784 | $ | 410,575 | $ | 628,451 | |||||||||||||||||||||
Accumulated amortization | n/a | n/a | (66,534) | (66,534) | |||||||||||||||||||||||||
Accumulated translation adjustment | 4,911 | — | — | 4,911 | |||||||||||||||||||||||||
102,003 | 120,784 | 344,041 | 566,828 | ||||||||||||||||||||||||||
Amortization | n/a | n/a | (184,043) | (184,043) | |||||||||||||||||||||||||
Impairment charges | — | — | (3,500) | (3,500) | |||||||||||||||||||||||||
Balance at December 31, 2019 | |||||||||||||||||||||||||||||
Gross amount | 97,092 | 120,784 | 404,304 | 622,180 | |||||||||||||||||||||||||
Accumulated amortization | n/a | n/a | (247,804) | (247,804) | |||||||||||||||||||||||||
Accumulated translation adjustment | 4,911 | — | — | 4,911 | |||||||||||||||||||||||||
102,003 | 120,784 | 156,500 | 379,287 | ||||||||||||||||||||||||||
Amortization | n/a | n/a | (37,742) | (37,742) | |||||||||||||||||||||||||
Balance at December 31, 2020 | |||||||||||||||||||||||||||||
Gross amount | $ | 97,092 | $ | 120,784 | $ | 394,604 | $ | 612,480 | |||||||||||||||||||||
Accumulated amortization | n/a | n/a | (275,846) | (275,846) | |||||||||||||||||||||||||
Accumulated translation adjustment | 4,911 | — | — | 4,911 | |||||||||||||||||||||||||
102,003 | 120,784 | 118,758 | 341,545 | ||||||||||||||||||||||||||
Amortization | n/a | n/a | (16,055) | (16,055) | |||||||||||||||||||||||||
Impairment charges | (1,202) | — | — | (1,202) | |||||||||||||||||||||||||
$ | 100,801 | $ | 120,784 | $ | 102,703 | $ | 324,288 | ||||||||||||||||||||||
VOBA and intangible assets | ||||||||||||||||||||||||||
Balance At December 31, 2020
|
Gross amount | Accumulated amortization | Total | |||||||||||||||||||||||
U.S. state licenses | $ | 26,036 | n/a | $ | 26,036 | |||||||||||||||||||||
Customer relationships and customers lists - Ternian (1)
|
13,330 | (7,665) | 5,665 | |||||||||||||||||||||||
VOBA - Novae (2)
|
256,942 | (253,088) | 3,854 | |||||||||||||||||||||||
Syndicate capacity (2)
|
94,748 | n/a | 94,748 | |||||||||||||||||||||||
Coverholders (2)
|
63,565 | (17,216) | 46,349 | |||||||||||||||||||||||
Large brokers (2)
|
46,641 | (10,106) | 36,535 | |||||||||||||||||||||||
SME brokers (2)
|
14,126 | (3,826) | 10,300 | |||||||||||||||||||||||
$ | 515,388 | $ | (291,901) | $ | 223,487 | |||||||||||||||||||||
VOBA and intangible assets | ||||||||||||||||||||||||||
Balance At December 31, 2019
|
Gross amount | Accumulated amortization and impairment | Total | |||||||||||||||||||||||
U.S. state licenses | $ | 26,036 | n/a | $ | 26,036 | |||||||||||||||||||||
Customer lists, trademark and non-compete - Media Pro (3)
|
9,700 | (9,700) | — | |||||||||||||||||||||||
Customer relationships and customers lists - Ternian | 13,330 | (6,333) | 6,997 | |||||||||||||||||||||||
VOBA - Novae | 256,942 | (247,950) | 8,992 | |||||||||||||||||||||||
Syndicate capacity | 94,748 | n/a | 94,748 | |||||||||||||||||||||||
Coverholders | 63,565 | (11,918) | 51,647 | |||||||||||||||||||||||
Large brokers | 46,641 | (6,996) | 39,645 | |||||||||||||||||||||||
SME brokers | 14,126 | (2,649) | 11,477 | |||||||||||||||||||||||
$ | 525,088 | $ | (285,546) | $ | 239,542 | |||||||||||||||||||||
VOBA | Intangible assets | Total | ||||||||||||||||||||||||
2021 | 3,854 | 10,916 | 14,770 | |||||||||||||||||||||||
2022 | — | 10,916 | 10,916 | |||||||||||||||||||||||
2023 | — | 10,916 | 10,916 | |||||||||||||||||||||||
2024 | — | 10,916 | 10,916 | |||||||||||||||||||||||
2025 | — | 9,921 | 9,921 | |||||||||||||||||||||||
2026 and thereafter | — | 45,264 | 45,264 | |||||||||||||||||||||||
Total remaining amortization expense | 3,854 | 98,849 | 102,703 | |||||||||||||||||||||||
Indefinite lived intangible assets | — | 120,784 | 120,784 | |||||||||||||||||||||||
Total intangible assets | $ | 3,854 | $ | 219,633 | $ | 223,487 | ||||||||||||||||||||
Amortized
cost |
Allowance for expected credit losses |
Gross
unrealized gains |
Gross
unrealized losses |
Fair
value |
|||||||||||||||||||||||||||||||||||||
At December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||||||||||||||||||
U.S. government and agency | $ | 1,881,489 | $ | — | $ | 38,969 | $ | (1,759) | $ | 1,918,699 | |||||||||||||||||||||||||||||||
Non-U.S. government | 632,875 | — | 38,826 | (428) | 671,273 | ||||||||||||||||||||||||||||||||||||
Corporate debt | 4,408,351 | (303) | 254,261 | (6,358) | 4,655,951 | ||||||||||||||||||||||||||||||||||||
Agency RMBS(1)
|
1,244,727 | — | 42,170 | (688) | 1,286,209 | ||||||||||||||||||||||||||||||||||||
CMBS(2)
|
1,268,273 | — | 87,598 | (2,284) | 1,353,587 | ||||||||||||||||||||||||||||||||||||
Non-agency RMBS | 136,198 | (20) | 4,604 | (678) | 140,104 | ||||||||||||||||||||||||||||||||||||
ABS(3)
|
1,712,236 | — | 14,527 | (6,685) | 1,720,078 | ||||||||||||||||||||||||||||||||||||
Municipals(4)
|
282,781 | — | 13,148 | (31) | 295,898 | ||||||||||||||||||||||||||||||||||||
Total fixed maturities | $ | 11,566,930 | $ | (323) | $ | 494,103 | $ | (18,911) | $ | 12,041,799 | |||||||||||||||||||||||||||||||
At December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||||||||||||||||||
U.S. government and agency | $ | 2,102,849 | $ | — | $ | 16,345 | $ | (6,313) | $ | 2,112,881 | |||||||||||||||||||||||||||||||
Non-U.S. government | 564,505 | — | 14,535 | (2,448) | 576,592 | ||||||||||||||||||||||||||||||||||||
Corporate debt | 4,797,384 | — | 140,426 | (7,556) | 4,930,254 | ||||||||||||||||||||||||||||||||||||
Agency RMBS(1)
|
1,570,823 | — | 25,215 | (3,454) | 1,592,584 | ||||||||||||||||||||||||||||||||||||
CMBS(2)
|
1,340,156 | — | 29,838 | (4,942) | 1,365,052 | ||||||||||||||||||||||||||||||||||||
Non-agency RMBS | 84,381 | — | 1,393 | (852) | 84,922 | ||||||||||||||||||||||||||||||||||||
ABS(3)
|
1,599,867 | — | 4,706 | (5,880) | 1,598,693 | ||||||||||||||||||||||||||||||||||||
Municipals(4)
|
203,275 | — | 4,359 | (407) | 207,227 | ||||||||||||||||||||||||||||||||||||
Total fixed maturities | $ | 12,263,240 | $ | — | $ | 236,817 | $ | (31,852) | $ | 12,468,205 | |||||||||||||||||||||||||||||||
Cost |
Gross
unrealized gains |
Gross
unrealized losses |
Fair
value |
||||||||||||||||||||||||||
At December 31, 2020 | |||||||||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||||||||
Common stocks | $ | 10,810 | $ | 689 | $ | (557) | $ | 10,942 | |||||||||||||||||||||
Preferred stocks | 6,301 | 1,767 | — | 8,068 | |||||||||||||||||||||||||
Exchange-traded funds | 147,794 | 74,314 | (390) | 221,718 | |||||||||||||||||||||||||
Bond mutual funds | 256,839 | 20,878 | — | 277,717 | |||||||||||||||||||||||||
Total equity securities | $ | 421,744 | $ | 97,648 | $ | (947) | $ | 518,445 | |||||||||||||||||||||
At December 31, 2019 | |||||||||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||||||||
Common stocks | $ | 504 | $ | 77 | $ | (388) | $ | 193 | |||||||||||||||||||||
Preferred stocks | — | — | — | — | |||||||||||||||||||||||||
Exchange-traded funds | 215,986 | 81,444 | (105) | 297,325 | |||||||||||||||||||||||||
Bond mutual funds | 182,466 | — | (5,777) | 176,689 | |||||||||||||||||||||||||
Total equity securities | $ | 398,956 | $ | 81,521 | $ | (6,270) | $ | 474,207 | |||||||||||||||||||||
Amortized
cost |
Fair
value |
% of Total
fair value |
|||||||||||||||||||||
At December 31, 2020 | |||||||||||||||||||||||
Maturity | |||||||||||||||||||||||
Due in one year or less | $ | 436,287 | $ | 444,527 | 3.6 | % | |||||||||||||||||
Due after one year through five years | 4,165,696 | 4,335,219 | 36.0 | % | |||||||||||||||||||
Due after five years through ten years | 2,344,859 | 2,489,050 | 20.7 | % | |||||||||||||||||||
Due after ten years | 258,654 | 273,025 | 2.3 | % | |||||||||||||||||||
7,205,496 | 7,541,821 | 62.6 | % | ||||||||||||||||||||
Agency RMBS | 1,244,727 | 1,286,209 | 10.7 | % | |||||||||||||||||||
CMBS | 1,268,273 | 1,353,587 | 11.2 | % | |||||||||||||||||||
Non-agency RMBS | 136,198 | 140,104 | 1.2 | % | |||||||||||||||||||
ABS | 1,712,236 | 1,720,078 | 14.3 | % | |||||||||||||||||||
Total | $ | 11,566,930 | $ | 12,041,799 | 100.0 | % | |||||||||||||||||
At December 31, 2019 | |||||||||||||||||||||||
Maturity | |||||||||||||||||||||||
Due in one year or less | $ | 438,881 | $ | 443,228 | 3.6 | % | |||||||||||||||||
Due after one year through five years | 4,810,202 | 4,884,837 | 39.2 | % | |||||||||||||||||||
Due after five years through ten years | 2,091,486 | 2,157,157 | 17.3 | % | |||||||||||||||||||
Due after ten years | 327,444 | 341,732 | 2.7 | % | |||||||||||||||||||
7,668,013 | 7,826,954 | 62.8 | % | ||||||||||||||||||||
Agency RMBS | 1,570,823 | 1,592,584 | 12.8 | % | |||||||||||||||||||
CMBS | 1,340,156 | 1,365,052 | 10.9 | % | |||||||||||||||||||
Non-agency RMBS | 84,381 | 84,922 | 0.7 | % | |||||||||||||||||||
ABS | 1,599,867 | 1,598,693 | 12.8 | % | |||||||||||||||||||
Total | $ | 12,263,240 | $ | 12,468,205 | 100.0 | % | |||||||||||||||||
12 months or greater | Less than 12 months | Total | |||||||||||||||||||||||||||||||||||||||
Fair
value |
Unrealized
losses |
Fair
value |
Unrealized
losses |
Fair
value |
Unrealized
losses |
||||||||||||||||||||||||||||||||||||
At December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||||||||||||||||||
U.S. government and agency | $ | — | $ | — | $ | 251,606 | $ | (1,759) | $ | 251,606 | $ | (1,759) | |||||||||||||||||||||||||||||
Non-U.S. government | 16,115 | (262) | 3,652 | (166) | 19,767 | (428) | |||||||||||||||||||||||||||||||||||
Corporate debt | 63,640 | (2,244) | 233,970 | (4,114) | 297,610 | (6,358) | |||||||||||||||||||||||||||||||||||
Agency RMBS | 6,580 | (20) | 78,672 | (668) | 85,252 | (688) | |||||||||||||||||||||||||||||||||||
CMBS | 19,736 | (1,012) | 70,656 | (1,272) | 90,392 | (2,284) | |||||||||||||||||||||||||||||||||||
Non-agency RMBS | 5,109 | (598) | 9,558 | (80) | 14,667 | (678) | |||||||||||||||||||||||||||||||||||
ABS | 325,436 | (4,011) | 360,402 | (2,674) | 685,838 | (6,685) | |||||||||||||||||||||||||||||||||||
Municipals | — | — | 11,881 | (31) | 11,881 | (31) | |||||||||||||||||||||||||||||||||||
Total fixed maturities | $ | 436,616 | $ | (8,147) | $ | 1,020,397 | $ | (10,764) | $ | 1,457,013 | $ | (18,911) | |||||||||||||||||||||||||||||
At December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||||||||||||||||||
U.S. government and agency | $ | 9,536 | $ | (67) | $ | 614,705 | $ | (6,246) | $ | 624,241 | $ | (6,313) | |||||||||||||||||||||||||||||
Non-U.S. government | 99,466 | (2,036) | 18,361 | (412) | 117,827 | (2,448) | |||||||||||||||||||||||||||||||||||
Corporate debt | 121,635 | (3,847) | 375,858 | (3,709) | 497,493 | (7,556) | |||||||||||||||||||||||||||||||||||
Agency RMBS | 195,395 | (1,816) | 326,402 | (1,638) | 521,797 | (3,454) | |||||||||||||||||||||||||||||||||||
CMBS | 24,281 | (64) | 364,641 | (4,878) | 388,922 | (4,942) | |||||||||||||||||||||||||||||||||||
Non-agency RMBS | 6,345 | (792) | 25,816 | (60) | 32,161 | (852) | |||||||||||||||||||||||||||||||||||
ABS | 535,780 | (4,667) | 404,641 | (1,213) | 940,421 | (5,880) | |||||||||||||||||||||||||||||||||||
Municipals | 5,418 | (34) | 46,684 | (373) | 52,102 | (407) | |||||||||||||||||||||||||||||||||||
Total fixed maturities | $ | 997,856 | $ | (13,323) | $ | 2,177,108 | $ | (18,529) | $ | 3,174,964 | $ | (31,852) | |||||||||||||||||||||||||||||
|
December 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||||
|
Carrying value | % of Total | Carrying value | % of Total | |||||||||||||||||||||||||
Mortgage loans held for investment: | |||||||||||||||||||||||||||||
Commercial | $ | 593,290 | 100 | % | $ | 432,748 | 100 | % | |||||||||||||||||||||
Total mortgage loans held for investment | $ | 593,290 | 100 | % | $ | 432,748 | 100 | % | |||||||||||||||||||||
Fair value |
Redemption frequency
(if currently eligible) |
Redemption
notice period |
|||||||||||||||||||||||||||
At December 31, 2020 | |||||||||||||||||||||||||||||
Long/short equity funds | $ | 25,300 | 3 | % | Annually | 60 days | |||||||||||||||||||||||
Multi-strategy funds | 121,420 | 15 | % | Quarterly, Semi-annually |
60-95 days
|
||||||||||||||||||||||||
Direct lending funds | 272,131 | 33 | % |
Quarterly(1)
|
90 days | ||||||||||||||||||||||||
Private equity funds | 124,706 | 15 | % | n/a | n/a | ||||||||||||||||||||||||
Real estate funds | 164,250 | 20 | % |
Quarterly(2)
|
45 days | ||||||||||||||||||||||||
CLO-Equities | 6,173 | 1 | % | n/a | n/a | ||||||||||||||||||||||||
Other privately held investments | 70,011 | 8 | % | n/a | n/a | ||||||||||||||||||||||||
Overseas deposits | 45,165 | 5 | % | n/a | n/a | ||||||||||||||||||||||||
Total other investments | $ | 829,156 | 100 | % | |||||||||||||||||||||||||
At December 31, 2019 | |||||||||||||||||||||||||||||
Long/short equity funds | $ | 31,248 | 4 | % | Annually | 60 days | |||||||||||||||||||||||
Multi-strategy funds | 136,542 | 18 | % | Quarterly, Semi-annually |
60-90 days
|
||||||||||||||||||||||||
Direct lending funds | 277,395 | 36 | % | n/a | n/a | ||||||||||||||||||||||||
Private equity funds | 80,412 | 10 | % | n/a | n/a | ||||||||||||||||||||||||
Real estate funds | 130,112 | 17 | % | n/a | n/a | ||||||||||||||||||||||||
CLO-Equities | 14,328 | 2 | % | n/a | n/a | ||||||||||||||||||||||||
Other privately held investments | 36,934 | 5 | % | n/a | n/a | ||||||||||||||||||||||||
Overseas deposits | 63,952 | 8 | % | n/a | n/a | ||||||||||||||||||||||||
Total other investments | $ | 770,923 | 100 | % | |||||||||||||||||||||||||
Year ended December 31, | 2020 | 2019 | 2018 | ||||||||||||||||||||
Fixed maturities | $ | 317,121 | $ | 384,053 | $ | 356,273 | |||||||||||||||||
Other investments | 16,059 | 60,038 | 48,959 | ||||||||||||||||||||
Equity securities | 9,328 | 10,434 | 10,077 | ||||||||||||||||||||
Mortgage loans | 15,432 | 14,712 | 13,566 | ||||||||||||||||||||
Cash and cash equivalents | 13,582 | 26,882 | 27,566 | ||||||||||||||||||||
Short-term investments | 2,749 | 7,053 | 9,365 | ||||||||||||||||||||
Gross investment income | 374,271 | 503,172 | 465,806 | ||||||||||||||||||||
Investment expenses | (24,670) | (24,600) | (27,299) | ||||||||||||||||||||
Net investment income | $ | 349,601 | $ | 478,572 | $ | 438,507 | |||||||||||||||||
Year ended December 31, | 2020 | 2019 | 2018 | ||||||||||||||||||||
Gross realized investment gains | |||||||||||||||||||||||
Fixed maturities and short-term investments | $ | 186,726 | $ | 93,160 | $ | 46,067 | |||||||||||||||||
Equity securities | 25,648 | 3,449 | 20,435 | ||||||||||||||||||||
Gross realized investment gains | 212,374 | 96,609 | 66,502 | ||||||||||||||||||||
Gross realized investment losses | |||||||||||||||||||||||
Fixed maturities and short-term investments | (94,607) | (56,515) | (142,153) | ||||||||||||||||||||
Equity securities | (5,840) | (323) | (3,389) | ||||||||||||||||||||
Gross realized investment losses | (100,447) | (56,838) | (145,542) | ||||||||||||||||||||
Allowance for expected credit losses | (323) | — | — | ||||||||||||||||||||
Impairment losses(1)
|
(1,486) | — | — | ||||||||||||||||||||
OTTI losses | — | (6,984) | (9,733) | ||||||||||||||||||||
Change in fair value of investment derivatives(2)
|
(2,434) | (1,823) | 5,445 | ||||||||||||||||||||
Net unrealized gains (losses) on equity securities | 21,449 | 60,269 | (66,890) | ||||||||||||||||||||
Net investment gains (losses) | $ | 129,133 | $ | 91,233 | $ | (150,218) | |||||||||||||||||
Year ended December 31, | 2020 | 2019 | 2018 | ||||||||||||||||||||
Balance at beginning of period | $ | — | $ | — | $ | — | |||||||||||||||||
Expected credit losses on securities where credit losses were not previously recognized
|
22,570 | — | — | ||||||||||||||||||||
Additions (reductions) for expected credit losses on securities where credit losses were previously recognized
|
(11,542) | — | — | ||||||||||||||||||||
Impairments of securities which the Company intends to sell or more likely than not will be required to sell | — | — | — | ||||||||||||||||||||
Securities sold/redeemed/matured | (10,705) | — | — | ||||||||||||||||||||
Balance at end of period | $ | 323 | $ | — | $ | — | |||||||||||||||||
Year ended December 31, | 2020 | 2019 | 2018 | ||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||
Non-U.S. government
|
$ | — | $ | 90 | $ | 4,697 | |||||||||||||||||
Corporate debt
|
— | 6,894 | 4,995 | ||||||||||||||||||||
Non-agency CMBS | — | — | 41 | ||||||||||||||||||||
Total OTTI recognized in net income | $ | — | $ | 6,984 | $ | 9,733 | |||||||||||||||||
At December 31, | 2020 | 2019 | ||||||||||||||||||
Collateral in Trust for inter-company agreements | $ | 1,153,157 | $ | 1,580,689 | ||||||||||||||||
Collateral for secured letter of credit facility | 434,845 | 473,187 | ||||||||||||||||||
Funds at Lloyd's | 1,155,832 | 1,314,345 | ||||||||||||||||||
Collateral in Trust for third-party agreements | 1,903,274 | 1,856,327 | ||||||||||||||||||
Securities on deposit or in trust with regulatory authorities | 265,959 | 76,229 | ||||||||||||||||||
Total restricted investments | $ | 4,913,067 | $ | 5,300,777 | ||||||||||||||||
Quoted prices in active markets
for identical assets (Level 1) |
Significant other observable
inputs (Level 2) |
Significant unobservable inputs (Level 3) | Fair value based on NAV practical expedient | Total fair value | |||||||||||||||||||||||||||||||
At December 31, 2020 | |||||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||||||||||||
U.S. government and agency | $ | 1,861,240 | $ | 57,459 | $ | — | $ | — | $ | 1,918,699 | |||||||||||||||||||||||||
Non-U.S. government | — | 671,273 | — | — | 671,273 | ||||||||||||||||||||||||||||||
Corporate debt | — | 4,653,447 | 2,504 | — | 4,655,951 | ||||||||||||||||||||||||||||||
Agency RMBS | — | 1,286,209 | — | — | 1,286,209 | ||||||||||||||||||||||||||||||
CMBS | — | 1,351,847 | 1,740 | — | 1,353,587 | ||||||||||||||||||||||||||||||
Non-agency RMBS | — | 140,104 | — | — | 140,104 | ||||||||||||||||||||||||||||||
ABS | — | 1,709,413 | 10,665 | — | 1,720,078 | ||||||||||||||||||||||||||||||
Municipals | — | 295,898 | — | — | 295,898 | ||||||||||||||||||||||||||||||
1,861,240 | 10,165,650 | 14,909 | — | 12,041,799 | |||||||||||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||||||||||||||
Common stocks | 10,942 | — | — | — | 10,942 | ||||||||||||||||||||||||||||||
Preferred stocks | 8,068 | — | — | — | 8,068 | ||||||||||||||||||||||||||||||
Exchange-traded funds | 221,718 | — | — | — | 221,718 | ||||||||||||||||||||||||||||||
Bond mutual funds | — | 277,717 | — | — | 277,717 | ||||||||||||||||||||||||||||||
240,728 | 277,717 | — | — | 518,445 | |||||||||||||||||||||||||||||||
Other investments | |||||||||||||||||||||||||||||||||||
Hedge funds(1)
|
— | — | — | 146,720 | 146,720 | ||||||||||||||||||||||||||||||
Direct lending funds | — | — | — | 272,131 | 272,131 | ||||||||||||||||||||||||||||||
Private equity funds | — | — | — | 124,706 | 124,706 | ||||||||||||||||||||||||||||||
Real estate funds | — | — | — | 164,250 | 164,250 | ||||||||||||||||||||||||||||||
CLO-Equities | — | — | 6,173 | — | 6,173 | ||||||||||||||||||||||||||||||
Other privately held investments | — | — | 70,011 | — | 70,011 | ||||||||||||||||||||||||||||||
Overseas deposits | — | 45,165 | — | — | 45,165 | ||||||||||||||||||||||||||||||
— | 45,165 | 76,184 | 707,807 | 829,156 | |||||||||||||||||||||||||||||||
Short-term investments | — | 161,897 | — | — | 161,897 | ||||||||||||||||||||||||||||||
Other assets | |||||||||||||||||||||||||||||||||||
Derivative instruments (refer to Note 7) | — | 18,875 | — | — | 18,875 | ||||||||||||||||||||||||||||||
Total Assets | $ | 2,101,968 | $ | 10,669,304 | $ | 91,093 | $ | 707,807 | $ | 13,570,172 | |||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||
Derivative instruments (refer to Note 7) | $ | — | $ | 2,364 | $ | 9,122 | $ | — | $ | 11,486 | |||||||||||||||||||||||||
Cash settled awards (refer to Note 16) | — | 13,273 | — | — | 13,273 | ||||||||||||||||||||||||||||||
Total Liabilities | $ | — | $ | 15,637 | $ | 9,122 | $ | — | $ | 24,759 | |||||||||||||||||||||||||
Quoted prices in active markets
for identical assets (Level 1) |
Significant other observable
inputs (Level 2) |
Significant unobservable inputs (Level 3) | Fair value based on NAV practical expedient | Total fair value | |||||||||||||||||||||||||||||||
At December 31, 2019 | |||||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||||||||||||
U.S. government and agency | $ | 2,053,622 | $ | 59,259 | $ | — | $ | — | $ | 2,112,881 | |||||||||||||||||||||||||
Non-U.S. government | — | 576,592 | — | — | 576,592 | ||||||||||||||||||||||||||||||
Corporate debt | — | 4,927,957 | 2,297 | — | 4,930,254 | ||||||||||||||||||||||||||||||
Agency RMBS | — | 1,592,584 | — | — | 1,592,584 | ||||||||||||||||||||||||||||||
CMBS | — | 1,359,817 | 5,235 | — | 1,365,052 | ||||||||||||||||||||||||||||||
Non-agency RMBS | — | 84,922 | — | — | 84,922 | ||||||||||||||||||||||||||||||
ABS | — | 1,598,204 | 489 | — | 1,598,693 | ||||||||||||||||||||||||||||||
Municipals | — | 207,227 | — | — | 207,227 | ||||||||||||||||||||||||||||||
2,053,622 | 10,406,562 | 8,021 | — | 12,468,205 | |||||||||||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||||||||||||||
Common stocks | 193 | — | — | — | 193 | ||||||||||||||||||||||||||||||
Preferred stocks | — | — | — | — | — | ||||||||||||||||||||||||||||||
Exchange-traded funds | 297,325 | — | — | — | 297,325 | ||||||||||||||||||||||||||||||
Bond mutual funds | — | 176,689 | — | — | 176,689 | ||||||||||||||||||||||||||||||
297,518 | 176,689 | — | — | 474,207 | |||||||||||||||||||||||||||||||
Other investments | |||||||||||||||||||||||||||||||||||
Hedge funds(1)
|
— | — | — | 167,790 | 167,790 | ||||||||||||||||||||||||||||||
Direct lending funds | — | — | — | 277,395 | 277,395 | ||||||||||||||||||||||||||||||
Private equity funds | — | — | — | 80,412 | 80,412 | ||||||||||||||||||||||||||||||
Real estate funds | — | — | — | 130,112 | 130,112 | ||||||||||||||||||||||||||||||
CLO-Equities | — | — | 14,328 | — | 14,328 | ||||||||||||||||||||||||||||||
Other privately held investments | — | — | 36,934 | — | 36,934 | ||||||||||||||||||||||||||||||
Overseas deposits | — | 63,952 | — | — | 63,952 | ||||||||||||||||||||||||||||||
— | 63,952 | 51,262 | 655,709 | 770,923 | |||||||||||||||||||||||||||||||
Short-term investments | — | 38,471 | — | — | 38,471 | ||||||||||||||||||||||||||||||
Other assets | |||||||||||||||||||||||||||||||||||
Derivative instruments (refer to Note 7) | — | 3,174 | — | — | 3,174 | ||||||||||||||||||||||||||||||
Total Assets | $ | 2,351,140 | $ | 10,688,848 | $ | 59,283 | $ | 655,709 | $ | 13,754,980 | |||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||
Derivative instruments (refer to Note 7) | $ | — | $ | 3,965 | $ | 9,672 | $ | — | $ | 13,637 | |||||||||||||||||||||||||
Cash settled awards (refer to Note 16) | — | 21,731 | — | — | 21,731 | ||||||||||||||||||||||||||||||
Total Liabilities | $ | — | $ | 25,696 | $ | 9,672 | $ | — | $ | 35,368 | |||||||||||||||||||||||||
Fair value | Valuation technique | Unobservable input | Range |
Weighted
average |
|||||||||||||||||||
Other investments - CLO-Equities | $ | 6,173 | Discounted cash flow | Default rates | 4.5% | 4.5% | |||||||||||||||||
Loss severity rate | 50.0% | 50.0% | |||||||||||||||||||||
Collateral spreads | 3.0% | 3.0% | |||||||||||||||||||||
Estimated maturity dates | 5 years | 5 years | |||||||||||||||||||||
Other investments - Other privately
held investments |
$ | 21,643 | Discounted cash flow | Discount rate | 1.3% | 1.3% | |||||||||||||||||
Default rate | 0.5% | 0.5% | |||||||||||||||||||||
Loss absorption yield | 1.0% | 1.0% | |||||||||||||||||||||
Estimated maturity date | 5 years | 5 years | |||||||||||||||||||||
Derivatives - Other underwriting-
related derivatives |
$ | (9,122) | Discounted cash flow | Discount rate | 0.4% | 0.4% | |||||||||||||||||
Opening
balance |
Transfers
into Level 3 |
Transfers
out of Level 3 |
Included in
net income(1)
|
Included
in OCI (2)
|
Purchases | Sales |
Settlements/
distributions |
Closing
balance |
Change in
unrealized
gains/(losses) (3)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate debt | $ | 2,297 | $ | — | $ | — | $ | — | $ | 207 | $ | — | $ | — | $ | — | $ | 2,504 | $ | — | |||||||||||||||||||||||||||||||||||||||||||||
CMBS | 5,235 | — | — | — | (11) | — | — | (3,484) | 1,740 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
ABS | 489 | 9,091 | — | — | 116 | 969 | — | — | 10,665 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
8,021 | 9,091 | — | — | 312 | 969 | — | (3,484) | 14,909 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other investments | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CLO-Equities | 14,328 | — | — | (6,017) | — | — | — | (2,138) | 6,173 | (5,319) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other privately held investments | 36,934 | — | — | 6,040 | — | 27,037 | — | — | 70,011 | 6,040 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
51,262 | — | — | 23 | — | 27,037 | — | (2,138) | 76,184 | 721 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 59,283 | $ | 9,091 | $ | — | $ | 23 | $ | 312 | $ | 28,006 | $ | — | $ | (5,622) | $ | 91,093 | $ | 721 | |||||||||||||||||||||||||||||||||||||||||||||
Other liabilities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative instruments | 9,672 | — | — | 9,421 | — | — | — | (9,971) | 9,122 | (550) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | $ | 9,672 | $ | — | $ | — | $ | 9,421 | $ | — | $ | — | $ | — | $ | (9,971) | $ | 9,122 | $ | (550) | |||||||||||||||||||||||||||||||||||||||||||||
Year ended December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate debt | $ | 49,012 | $ | — | $ | — | $ | 4,790 | $ | (4,168) | $ | — | $ | (6,068) | $ | (41,269) | $ | 2,297 | $ | — | |||||||||||||||||||||||||||||||||||||||||||||
CMBS | 19,134 | — | (7,077) | — | 142 | — | — | (6,964) | 5,235 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
ABS | 18,533 | — | (18,230) | — | 186 | — | — | — | 489 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
86,679 | — | (25,307) | 4,790 | (3,840) | — | (6,068) | (48,233) | 8,021 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other investments | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CLO-Equities | 21,271 | — | — | (199) | — | — | — | (6,744) | 14,328 | (199) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other privately held investments | 44,518 | — | — | 18,092 | — | 22,500 | (48,176) | — | 36,934 | 5,150 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
65,789 | — | — | 17,893 | — | 22,500 | (48,176) | (6,744) | 51,262 | 4,951 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 152,468 | $ | — | $ | (25,307) | $ | 22,683 | $ | (3,840) | $ | 22,500 | $ | (54,244) | $ | (54,977) | $ | 59,283 | $ | 4,951 | |||||||||||||||||||||||||||||||||||||||||||||
Other liabilities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative instruments | 10,299 | — | — | (627) | — | — | — | — | 9,672 | (627) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | $ | 10,299 | $ | — | $ | — | $ | (627) | $ | — | $ | — | $ | — | $ | — | $ | 9,672 | $ | (627) | |||||||||||||||||||||||||||||||||||||||||||||
December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||||||||
Derivative
notional amount |
Derivative asset
fair
value(1)
|
Derivative liability
fair
value(1)
|
Derivative
notional amount |
Derivative asset
fair
value(1)
|
Derivative liability
fair
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||||||||||||||||||||||||||||||||||||
Relating to investment portfolio: | |||||||||||||||||||||||||||||||||||||||||
Foreign exchange forward contracts | $ | 105,781 | $ | 2 | $ | 2,364 | $ | 68,998 | $ | — | $ | 1,405 | |||||||||||||||||||||||||||||
Relating to underwriting portfolio: | |||||||||||||||||||||||||||||||||||||||||
Foreign exchange forward contracts | 1,197,012 | 18,873 | — | 1,038,630 | 3,174 | 2,560 | |||||||||||||||||||||||||||||||||||
Other underwriting-related contracts | 75,000 | — | 9,122 | 85,000 | — | 9,672 | |||||||||||||||||||||||||||||||||||
Total derivatives | $ | 18,875 | $ | 11,486 | $ | 3,174 | $ | 13,637 | |||||||||||||||||||||||||||||||||
December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||
Gross amounts | Gross amounts offset |
Net
amounts(1)
|
Gross amounts | Gross amounts offset |
Net
amounts(1)
|
||||||||||||||||||||||||
Derivative assets | $ | 27,765 | $ | (8,890) | $ | 18,875 | $ | 7,673 | $ | (4,499) | $ | 3,174 | |||||||||||||||||
Derivative liabilities | $ | 20,376 | $ | (8,890) | $ | 11,486 | $ | 18,136 | $ | (4,499) | $ | 13,637 | |||||||||||||||||
Consolidated statement of operations line item that includes gain (loss) recognized
in net income |
Amount of gain (loss) recognized in
net income |
|||||||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||||||||
Relating to investment portfolio: | ||||||||||||||||||||||||||
Foreign exchange forward contracts | Net investment gains (losses) | $ | (2,434) | $ | 1,854 | $ | 3,446 | |||||||||||||||||||
Interest rate swaps | Net investment gains (losses) | — | (3,677) | 1,999 | ||||||||||||||||||||||
Relating to underwriting portfolio: | ||||||||||||||||||||||||||
Foreign exchange forward contracts | Foreign exchange gains (losses) | 44,166 | (10,678) | (3,509) | ||||||||||||||||||||||
Other underwriting-related contracts | Other insurance related income (loss) | (9,035) | 1,789 | 2,384 | ||||||||||||||||||||||
Total | $ | 32,697 | $ | (10,712) | $ | 4,320 | ||||||||||||||||||||
Insurance segment | ||||||||||||||||||||
Reserve class and tail | ||||||||||||||||||||
Property and other | Marine | Aviation | Credit and political risk | Professional lines | Liability | |||||||||||||||
Short | Short | Short/Medium | Medium | Medium | Long | |||||||||||||||
Reported lines of business | ||||||||||||||||||||
Property | X | |||||||||||||||||||
Marine | X | |||||||||||||||||||
Terrorism | X | |||||||||||||||||||
Aviation | X | |||||||||||||||||||
Credit and political risk | X | |||||||||||||||||||
Professional lines | X | |||||||||||||||||||
Liability | X | |||||||||||||||||||
Accident and health | X | |||||||||||||||||||
Discontinued lines - Novae | X | X | X |
Reinsurance segment | |||||||||||||||||
Reserve class and tail | |||||||||||||||||
Property and other | Credit and surety | Professional lines | Motor | Liability | |||||||||||||
Short | Medium | Medium | Long | Long | |||||||||||||
Reported lines of business | |||||||||||||||||
Catastrophe | X | ||||||||||||||||
Property | X | ||||||||||||||||
Credit and surety | X | ||||||||||||||||
Professional lines | X | ||||||||||||||||
Motor | X | ||||||||||||||||
Liability | X | ||||||||||||||||
Engineering | X | ||||||||||||||||
Agriculture | X | ||||||||||||||||
Marine and aviation | X | ||||||||||||||||
Accident and health | X | ||||||||||||||||
Discontinued lines - Novae | X | X | X |
At December 31, | 2020 | 2019 | |||||||||||||||
Reserve for reported losses and loss expenses | $ | 5,331,900 | $ | 4,860,916 | |||||||||||||
Reserve for losses incurred but not reported | 8,594,866 | 7,891,165 | |||||||||||||||
Reserve for losses and loss expenses | $ | 13,926,766 | $ | 12,752,081 | |||||||||||||
Year ended December 31, | 2020 | 2019 | 2018 | ||||||||||||||||||||
Gross reserve for losses and loss expenses, beginning of year | $ | 12,752,081 | $ | 12,280,769 | $ | 12,997,553 | |||||||||||||||||
Less reinsurance recoverable on unpaid losses, beginning of year | (3,877,756) | (3,501,669) | (3,159,514) | ||||||||||||||||||||
Net reserve for unpaid losses and loss expenses, beginning of year | 8,874,325 | 8,779,100 | 9,838,039 | ||||||||||||||||||||
Net incurred losses and loss expenses related to: | |||||||||||||||||||||||
Current year | 3,297,161 | 3,123,698 | 3,389,949 | ||||||||||||||||||||
Prior years | (15,909) | (78,900) | (199,662) | ||||||||||||||||||||
3,281,252 | 3,044,798 | 3,190,287 | |||||||||||||||||||||
Net paid losses and loss expenses related to: | |||||||||||||||||||||||
Current year | (571,442) | (598,988) | (724,199) | ||||||||||||||||||||
Prior years | (2,365,959) | (2,371,637) | (2,368,615) | ||||||||||||||||||||
(2,937,401) | (2,970,625) | (3,092,814) | |||||||||||||||||||||
Foreign exchange and other | 211,949 | 21,052 | (1,156,412) | ||||||||||||||||||||
Net reserve for unpaid losses and loss expenses, end of year | 9,430,125 | 8,874,325 | 8,779,100 | ||||||||||||||||||||
Reinsurance recoverable on unpaid losses, end of year | 4,496,641 | 3,877,756 | 3,501,669 | ||||||||||||||||||||
Gross reserve for losses and loss expenses, end of year | $ | 13,926,766 | $ | 12,752,081 | $ | 12,280,769 | |||||||||||||||||
Favorable (Adverse) | Favorable (Adverse) | Favorable (Adverse) | |||||||||||||||||||||
Insurance | Reinsurance | Total | |||||||||||||||||||||
Year ended December 31, 2020 | $ | 8,937 | $ | 6,972 | $ | 15,909 | |||||||||||||||||
Year ended December 31, 2019 | 53,302 | 25,598 | 78,900 | ||||||||||||||||||||
Year ended December 31, 2018 | 92,806 | 106,856 | 199,662 | ||||||||||||||||||||
Favorable (Adverse) | Favorable (Adverse) | Favorable (Adverse) | |||||||||||||||||||||
Years ended December 31, | 2020 | 2019 | 2018 | ||||||||||||||||||||
Property and other | $ | 46,791 | $ | 11,042 | $ | 64,781 | |||||||||||||||||
Marine | 16,780 | 33,260 | 17,913 | ||||||||||||||||||||
Aviation | 6,416 | 3,741 | (2,938) | ||||||||||||||||||||
Credit and political risk | (745) | 18,810 | 3,609 | ||||||||||||||||||||
Professional lines | (35,661) | 11,721 | 31,687 | ||||||||||||||||||||
Liability | (24,644) | (25,272) | (22,246) | ||||||||||||||||||||
Total | $ | 8,937 | $ | 53,302 | $ | 92,806 | |||||||||||||||||
Favorable (Adverse) | Favorable (Adverse) | Favorable (Adverse) | |||||||||||||||||||||
Years ended December 31, | 2020 | 2019 | 2018 | ||||||||||||||||||||
Property and other | $ | (5,935) | $ | (133,448) | $ | 6,012 | |||||||||||||||||
Credit and surety | 36,829 | 53,223 | 33,497 | ||||||||||||||||||||
Professional lines | (15,352) | 3,668 | 21,310 | ||||||||||||||||||||
Motor | 21,086 | 70,872 | 22,932 | ||||||||||||||||||||
Liability | (29,656) | 31,283 | 23,105 | ||||||||||||||||||||
Total | $ | 6,972 | $ | 25,598 | $ | 106,856 | |||||||||||||||||
Insurance property and other | ||||||||||||||||||||||||||||||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | At December 31, 2020 | |||||||||||||||||||||||||||||||||||||
For the years ended December 31, | Total of incurred-but-not-reported liabilities plus expected development on reported claims | Cumulative number of reported claims | ||||||||||||||||||||||||||||||||||||
Accident year | 2011 unaudited | 2012 unaudited | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 unaudited | 2020 | ||||||||||||||||||||||||||||
2011 | $ | 347,569 | $ | 325,274 | $ | 304,702 | $ | 284,201 | $ | 281,155 | $ | 279,964 | $ | 280,395 | $ | 278,688 | $ | 277,792 | $ | 277,515 | $ | (231) | 6,367 | |||||||||||||||
2012 | 393,170 | 403,254 | 385,068 | 364,667 | 360,525 | 354,801 | 353,971 | 343,934 | 343,619 | (21) | 29,942 | |||||||||||||||||||||||||||
2013 | 310,601 | 300,682 | 273,775 | 269,831 | 269,490 | 279,922 | 276,229 | 275,712 | 1,135 | 53,204 | ||||||||||||||||||||||||||||
2014 | 362,684 | 357,885 | 347,227 | 331,142 | 330,011 | 328,404 | 323,736 | 4,334 | 62,371 | |||||||||||||||||||||||||||||
2015 | 280,489 | 273,606 | 262,733 | 258,190 | 255,319 | 257,419 | 1,763 | 48,469 | ||||||||||||||||||||||||||||||
2016 | 355,771 | 384,230 | 375,260 | 362,103 | 356,016 | 3,427 | 93,792 | |||||||||||||||||||||||||||||||
2017 | 911,274 | 838,640 | 824,039 | 813,005 | (5,501) | 698,289 | ||||||||||||||||||||||||||||||||
2018 | 742,601 | 775,861 | 754,741 | 10,217 | 731,142 | |||||||||||||||||||||||||||||||||
2019 | 454,386 | 448,467 | 11,186 | 659,908 | ||||||||||||||||||||||||||||||||||
2020 | 733,794 | 308,515 | 524,539 | |||||||||||||||||||||||||||||||||||
Total | $ | 4,584,024 | ||||||||||||||||||||||||||||||||||||
Insurance property and other | ||||||||||||||||||||||||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | ||||||||||||||||||||||||||||||||
For the years ended December 31, | ||||||||||||||||||||||||||||||||
Accident year | 2011 unaudited | 2012 unaudited | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 unaudited | 2020 | ||||||||||||||||||||||
2011 | $ | 83,511 | $ | 191,823 | $ | 248,346 | $ | 270,636 | $ | 269,626 | $ | 269,423 | $ | 270,104 | $ | 270,546 | $ | 270,516 | $ | 270,507 | ||||||||||||
2012 | 77,794 | 214,771 | 279,588 | 302,638 | 310,171 | 315,391 | 315,466 | 317,574 | 317,803 | |||||||||||||||||||||||
2013 | 76,179 | 199,930 | 238,808 | 249,852 | 260,895 | 263,930 | 265,749 | 269,598 | ||||||||||||||||||||||||
2014 | 133,451 | 261,155 | 308,010 | 315,212 | 319,414 | 320,597 | 317,306 | |||||||||||||||||||||||||
2015 | 100,483 | 204,862 | 229,901 | 244,205 | 244,916 | 251,758 | ||||||||||||||||||||||||||
2016 | 126,232 | 294,777 | 335,173 | 343,839 | 345,188 | |||||||||||||||||||||||||||
2017 | 256,136 | 634,649 | 751,394 | 781,152 | ||||||||||||||||||||||||||||
2018 | 292,977 | 592,507 | 693,287 | |||||||||||||||||||||||||||||
2019 | 197,703 | 330,268 | ||||||||||||||||||||||||||||||
2020 | 219,395 | |||||||||||||||||||||||||||||||
Total | 3,796,262 | |||||||||||||||||||||||||||||||
All outstanding liabilities before 2011, net of reinsurance | 7,141 | |||||||||||||||||||||||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ | 794,903 | ||||||||||||||||||||||||||||||
Insurance property and other | |||||||||||||||||||||||||||||
Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited) | |||||||||||||||||||||||||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | ||||||||||||||||||||
34.0% | 40.8% | 14.6% | 4.7% | 1.3% | 1.1% | —% | 0.7% | 0.1% | —% |
Insurance marine | ||||||||||||||||||||||||||||||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | At December 31, 2020 | |||||||||||||||||||||||||||||||||||||
For the years ended December 31, | Total of incurred-but-not-reported liabilities plus expected development on reported claims | Cumulative number of reported claims | ||||||||||||||||||||||||||||||||||||
Accident year | 2011 unaudited | 2012 unaudited | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 unaudited | 2020 | ||||||||||||||||||||||||||||
2011 | $ | 90,960 | $ | 79,215 | $ | 73,257 | $ | 66,351 | $ | 66,320 | $ | 66,560 | $ | 68,860 | $ | 69,555 | $ | 68,861 | $ | 67,054 | $ | (1,250) | 3,830 | |||||||||||||||
2012 | 89,889 | 83,431 | 69,484 | 71,663 | 72,708 | 75,326 | 73,581 | 63,067 | 66,026 | 7,249 | 4,135 | |||||||||||||||||||||||||||
2013 | 80,641 | 102,110 | 97,660 | 98,759 | 83,984 | 83,594 | 82,622 | 81,774 | 846 | 2,354 | ||||||||||||||||||||||||||||
2014 | 59,786 | 44,936 | 49,238 | 44,979 | 46,705 | 48,470 | 42,221 | (2,231) | 2,166 | |||||||||||||||||||||||||||||
2015 | 160,793 | 142,383 | 138,704 | 131,483 | 118,861 | 123,836 | 7,507 | 2,231 | ||||||||||||||||||||||||||||||
2016 | 86,464 | 78,953 | 76,805 | 71,694 | 70,491 | 3,300 | 2,857 | |||||||||||||||||||||||||||||||
2017 | 207,378 | 172,077 | 160,919 | 158,812 | 13,932 | 4,005 | ||||||||||||||||||||||||||||||||
2018 | 186,550 | 194,257 | 183,415 | 34,579 | 4,370 | |||||||||||||||||||||||||||||||||
2019 | 170,489 | 168,318 | 47,064 | 4,475 | ||||||||||||||||||||||||||||||||||
2020 | 170,763 | 107,624 | 3,558 | |||||||||||||||||||||||||||||||||||
Total | $ | 1,132,710 | ||||||||||||||||||||||||||||||||||||
Insurance marine | ||||||||||||||||||||||||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | ||||||||||||||||||||||||||||||||
For the years ended December 31, | ||||||||||||||||||||||||||||||||
Accident year | 2011 unaudited | 2012 unaudited | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 unaudited | 2020 | ||||||||||||||||||||||
2011 | $ | 26,467 | $ | 44,483 | $ | 55,329 | $ | 58,465 | $ | 60,340 | $ | 61,063 | $ | 65,512 | $ | 67,560 | $ | 68,051 | $ | 68,022 | ||||||||||||
2012 | 10,752 | 38,820 | 45,197 | 50,028 | 50,865 | 53,309 | 55,387 | 56,524 | 56,689 | |||||||||||||||||||||||
2013 | 19,577 | 44,931 | 56,126 | 64,497 | 67,196 | 78,245 | 78,396 | 79,683 | ||||||||||||||||||||||||
2014 | 6,365 | 15,418 | 27,529 | 27,462 | 36,681 | 41,788 | 42,945 | |||||||||||||||||||||||||
2015 | 21,467 | 55,425 | 109,431 | 112,390 | 113,818 | 115,391 | ||||||||||||||||||||||||||
2016 | 12,498 | 31,890 | 57,552 | 63,829 | 64,645 | |||||||||||||||||||||||||||
2017 | 14,634 | 68,709 | 92,848 | 117,253 | ||||||||||||||||||||||||||||
2018 | 27,218 | 87,150 | 117,629 | |||||||||||||||||||||||||||||
2019 | 36,354 | 76,175 | ||||||||||||||||||||||||||||||
2020 | 38,433 | |||||||||||||||||||||||||||||||
Total | 776,865 | |||||||||||||||||||||||||||||||
All outstanding liabilities before 2011, net of reinsurance | 6,786 | |||||||||||||||||||||||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ | 362,631 | ||||||||||||||||||||||||||||||
Insurance marine | |||||||||||||||||||||||||||||
Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited) | |||||||||||||||||||||||||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | ||||||||||||||||||||
19.8% | 29.7% | 22.5% | 7.0% | 5.3% | 6.3% | 3.2% | 2.1% | 0.5% | —% |
Insurance aviation | ||||||||||||||||||||||||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | ||||||||||||||||||||||||||||||||
For the years ended December 31, | ||||||||||||||||||||||||||||||||
Accident year | 2011 unaudited | 2012 unaudited | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 unaudited | 2020 | ||||||||||||||||||||||
2011 | $ | 639 | $ | 2,834 | $ | 4,527 | $ | 5,047 | $ | 5,584 | $ | 5,836 | $ | 6,057 | $ | 6,199 | $ | 6,244 | $ | 6,252 | ||||||||||||
2012 | 958 | 2,872 | 4,166 | 5,966 | 6,863 | 7,087 | 7,201 | 7,136 | 7,134 | |||||||||||||||||||||||
2013 | 4,402 | 7,339 | 9,767 | 11,474 | 13,585 | 14,195 | 14,516 | 15,976 | ||||||||||||||||||||||||
2014 | 3,990 | 8,035 | 11,711 | 13,871 | 14,509 | 14,874 | 15,044 | |||||||||||||||||||||||||
2015 | 8,092 | 16,182 | 20,990 | 23,253 | 24,716 | 26,026 | ||||||||||||||||||||||||||
2016 | 10,424 | 19,310 | 26,311 | 27,879 | 29,117 | |||||||||||||||||||||||||||
2017 | 21,458 | 40,811 | 51,512 | 59,895 | ||||||||||||||||||||||||||||
2018 | 21,544 | 40,713 | 48,088 | |||||||||||||||||||||||||||||
2019 | 18,465 | 29,808 | ||||||||||||||||||||||||||||||
2020 | 6,311 | |||||||||||||||||||||||||||||||
Total | 243,651 | |||||||||||||||||||||||||||||||
All outstanding liabilities before 2011, net of reinsurance | 6,511 | |||||||||||||||||||||||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ | 84,024 | ||||||||||||||||||||||||||||||
Insurance aviation | |||||||||||||||||||||||||||||
Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited) | |||||||||||||||||||||||||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | ||||||||||||||||||||
25.8% | 26.8% | 18.1% | 11.4% | 7.6% | 3.5% | 2.0% | 3.3% | 0.4% | 0.1% |
Insurance credit and political risk | ||||||||||||||||||||||||||||||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | At December 31, 2020 | |||||||||||||||||||||||||||||||||||||
For the years ended December 31, | Total of incurred-but-not-reported liabilities plus expected development on reported claims | Cumulative number of reported claims | ||||||||||||||||||||||||||||||||||||
Accident year | 2011 unaudited | 2012 unaudited | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 unaudited | 2020 | ||||||||||||||||||||||||||||
2011 | $ | 58,154 | $ | 48,665 | $ | 47,706 | $ | 48,361 | $ | 48,333 | $ | 45,036 | $ | 33,609 | $ | 27,904 | $ | 27,904 | $ | 27,754 | $ | 118 | 4 | |||||||||||||||
2012 | 32,602 | 15,672 | 12,435 | 12,447 | 10,323 | 47 | 199 | 199 | 199 | 155 | 4 | |||||||||||||||||||||||||||
2013 | 26,439 | 25,684 | 9,759 | 9,880 | 14,942 | 14,067 | 12,377 | 12,739 | 4,432 | 2 | ||||||||||||||||||||||||||||
2014 | 38,825 | 70,713 | 67,109 | 68,324 | 69,589 | 71,275 | 70,747 | 2,123 | 6 | |||||||||||||||||||||||||||||
2015 | 30,329 | 30,368 | 27,524 | 26,012 | 25,930 | 24,851 | 1,542 | 2 | ||||||||||||||||||||||||||||||
2016 | 47,736 | 43,746 | 41,256 | 41,826 | 25,612 | 2,061 | 1 | |||||||||||||||||||||||||||||||
2017 | 48,086 | 33,524 | 26,552 | 18,744 | 8,163 | 3 | ||||||||||||||||||||||||||||||||
2018 | 45,047 | 34,116 | 32,740 | 12,279 | 1 | |||||||||||||||||||||||||||||||||
2019 | 51,638 | 80,181 | 23,821 | 14 | ||||||||||||||||||||||||||||||||||
2020 | 60,501 | 48,752 | 24 | |||||||||||||||||||||||||||||||||||
Total | $ | 354,068 | ||||||||||||||||||||||||||||||||||||
Insurance credit and political risk | |||||||||||||||||||||||||||||
Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited) | |||||||||||||||||||||||||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | ||||||||||||||||||||
18.3% | 39.1% | 5.2% | 2.9% | 11.9% | 5.2% | 2.4% | —% | —% | —% |
Insurance professional lines | ||||||||||||||||||||||||||||||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | At December 31, 2020 | |||||||||||||||||||||||||||||||||||||
For the years ended December 31, | Total of incurred-but-not-reported liabilities plus expected development on reported claims | Cumulative number of reported claims | ||||||||||||||||||||||||||||||||||||
Accident year | 2011 unaudited | 2012 unaudited | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 unaudited | 2020 | ||||||||||||||||||||||||||||
2011 | $ | 314,835 | $ | 316,639 | $ | 335,265 | $ | 327,971 | $ | 331,903 | $ | 344,964 | $ | 353,336 | $ | 353,862 | $ | 351,191 | $ | 345,862 | $ | 22,156 | 7,239 | |||||||||||||||
2012 | 330,010 | 377,296 | 378,793 | 377,895 | 365,291 | 367,369 | 355,893 | 353,860 | 335,671 | 22,818 | 8,334 | |||||||||||||||||||||||||||
2013 | 385,460 | 399,136 | 400,434 | 367,072 | 356,643 | 358,938 | 336,933 | 340,078 | 41,955 | 9,457 | ||||||||||||||||||||||||||||
2014 | 414,720 | 413,840 | 423,998 | 394,748 | 374,397 | 356,930 | 350,182 | 63,136 | 9,825 | |||||||||||||||||||||||||||||
2015 | 379,378 | 379,036 | 384,477 | 359,619 | 346,488 | 329,502 | 54,530 | 10,493 | ||||||||||||||||||||||||||||||
2016 | 351,055 | 353,679 | 360,116 | 361,799 | 372,198 | 76,612 | 11,836 | |||||||||||||||||||||||||||||||
2017 | 396,543 | 403,257 | 439,134 | 435,827 | 154,318 | 13,670 | ||||||||||||||||||||||||||||||||
2018 | 365,577 | 378,822 | 432,338 | 196,909 | 16,453 | |||||||||||||||||||||||||||||||||
2019 | 407,043 | 429,729 | 248,218 | 16,369 | ||||||||||||||||||||||||||||||||||
2020 | 439,054 | 384,984 | 9,284 | |||||||||||||||||||||||||||||||||||
Total | $ | 3,810,441 | ||||||||||||||||||||||||||||||||||||
Insurance professional lines | |||||||||||||||||||||||||||||
Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited) | |||||||||||||||||||||||||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | ||||||||||||||||||||
4.9% | 13.3% | 17.2% | 14.8% | 12.1% | 10.8% | 7.0% | 3.1% | 3.6% | 4.4% |
Insurance liability | ||||||||||||||||||||||||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | ||||||||||||||||||||||||||||||||
For the years ended December 31, | ||||||||||||||||||||||||||||||||
Accident year | 2011 unaudited | 2012 unaudited | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 unaudited | 2020 | ||||||||||||||||||||||
2011 | $ | 2,761 | $ | 10,540 | $ | 20,190 | $ | 38,377 | $ | 46,074 | $ | 54,996 | $ | 60,261 | $ | 62,151 | $ | 67,114 | $ | 72,023 | ||||||||||||
2012 | 1,631 | 5,515 | 15,412 | 30,146 | 37,140 | 42,741 | 46,541 | 48,035 | 48,317 | |||||||||||||||||||||||
2013 | 2,364 | 23,287 | 33,326 | 42,056 | 60,011 | 66,970 | 71,989 | 73,320 | ||||||||||||||||||||||||
2014 | 1,419 | 18,665 | 49,861 | 71,609 | 84,389 | 93,589 | 103,063 | |||||||||||||||||||||||||
2015 | 5,440 | 22,441 | 39,718 | 92,753 | 120,357 | 141,062 | ||||||||||||||||||||||||||
2016 | 6,333 | 23,326 | 36,404 | 56,497 | 66,437 | |||||||||||||||||||||||||||
2017 | 5,481 | 29,687 | 59,432 | 116,232 | ||||||||||||||||||||||||||||
2018 | 9,554 | 35,056 | 72,604 | |||||||||||||||||||||||||||||
2019 | 7,900 | 40,047 | ||||||||||||||||||||||||||||||
2020 | 8,156 | |||||||||||||||||||||||||||||||
Total | 741,261 | |||||||||||||||||||||||||||||||
All outstanding liabilities before 2011, net of reinsurance | 53,506 | |||||||||||||||||||||||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ | 802,929 | ||||||||||||||||||||||||||||||
Insurance liability | |||||||||||||||||||||||||||||
Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited) | |||||||||||||||||||||||||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | ||||||||||||||||||||
3.3% | 13.0% | 14.5% | 20.5% | 12.1% | 9.0% | 6.2% | 2.0% | 3.1% | 5.8% |
Reinsurance property and other | |||||||||||||||||||||||||||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | At December 31, 2020 | ||||||||||||||||||||||||||||||||||
For the years ended December 31, | Total of incurred-but-not-reported liabilities plus expected development on reported claims | ||||||||||||||||||||||||||||||||||
Accident year | 2011 unaudited | 2012 unaudited | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 unaudited | 2020 | |||||||||||||||||||||||||
2011 | $ | 1,147,558 | $ | 1,156,022 | $ | 1,156,008 | $ | 1,113,395 | $ | 1,096,469 | $ | 1,070,969 | $ | 1,069,295 | $ | 1,070,875 | $ | 1,072,109 | $ | 1,068,938 | $ | 4,016 | |||||||||||||
2012 | 558,114 | 526,700 | 511,157 | 480,467 | 464,567 | 459,625 | 461,000 | 457,777 | 457,372 | 747 | |||||||||||||||||||||||||
2013 | 583,687 | 567,292 | 536,423 | 516,164 | 510,134 | 509,582 | 506,213 | 505,548 | 738 | ||||||||||||||||||||||||||
2014 | 544,212 | 565,279 | 539,285 | 526,767 | 524,785 | 524,099 | 521,230 | 39,729 | |||||||||||||||||||||||||||
2015 | 481,328 | 470,515 | 465,427 | 459,819 | 455,873 | 461,382 | 6,756 | ||||||||||||||||||||||||||||
2016 | 623,624 | 644,393 | 630,447 | 626,868 | 628,910 | 2,351 | |||||||||||||||||||||||||||||
2017 | 1,101,428 | 1,080,866 | 1,098,312 | 1,106,201 | 47,451 | ||||||||||||||||||||||||||||||
2018 | 889,102 | 1,020,689 | 1,025,683 | 68,161 | |||||||||||||||||||||||||||||||
2019 | 966,716 | 977,194 | 183,064 | ||||||||||||||||||||||||||||||||
2020 | 855,632 | 442,418 | |||||||||||||||||||||||||||||||||
Total | $ | 7,608,090 | |||||||||||||||||||||||||||||||||
Reinsurance property and other | |||||||||||||||||||||||||||||
Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited) | |||||||||||||||||||||||||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | ||||||||||||||||||||
20.8% | 41.8% | 18.4% | 6.3% | 2.6% | 2.5% | 0.6% | 1.4% | 1.0% | 0.4% |
Reinsurance credit and surety | ||||||||||||||||||||||||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | ||||||||||||||||||||||||||||||||
For the years ended December 31, | ||||||||||||||||||||||||||||||||
Accident year | 2011 unaudited | 2012 unaudited | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 unaudited | 2020 | ||||||||||||||||||||||
2011 | $ | 22,714 | $ | 56,811 | $ | 75,122 | $ | 83,199 | $ | 87,860 | $ | 90,181 | $ | 92,557 | $ | 94,208 | $ | 95,042 | $ | 95,734 | ||||||||||||
2012 | 50,749 | 88,745 | 103,866 | 109,765 | 113,340 | 115,187 | 116,559 | 118,514 | 118,948 | |||||||||||||||||||||||
2013 | 32,786 | 79,432 | 94,952 | 101,765 | 109,528 | 111,532 | 116,501 | 118,730 | ||||||||||||||||||||||||
2014 | 35,910 | 63,361 | 89,356 | 98,712 | 106,341 | 110,768 | 111,316 | |||||||||||||||||||||||||
2015 | 33,105 | 84,626 | 103,810 | 121,482 | 123,365 | 127,130 | ||||||||||||||||||||||||||
2016 | 42,410 | 75,646 | 95,624 | 105,444 | 106,658 | |||||||||||||||||||||||||||
2017 | 37,531 | 76,621 | 94,020 | 106,016 | ||||||||||||||||||||||||||||
2018 | 39,333 | 71,157 | 76,834 | |||||||||||||||||||||||||||||
2019 | 19,535 | 33,521 | ||||||||||||||||||||||||||||||
2020 | 25,366 | |||||||||||||||||||||||||||||||
Total | 920,253 | |||||||||||||||||||||||||||||||
All outstanding liabilities before 2011, net of reinsurance | 20,223 | |||||||||||||||||||||||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ | 243,609 | ||||||||||||||||||||||||||||||
Reinsurance credit and surety | |||||||||||||||||||||||||||||
Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited) | |||||||||||||||||||||||||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | ||||||||||||||||||||
29.7% | 29.1% | 13.9% | 7.9% | 3.6% | 2.3% | 1.9% | 1.6% | 0.6% | 0.7% |
Reinsurance professional lines | |||||||||||||||||||||||||||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | At December 31, 2020 | ||||||||||||||||||||||||||||||||||
For the years ended December 31, | Total of incurred-but-not-reported liabilities plus expected development on reported claims | ||||||||||||||||||||||||||||||||||
Accident year | 2011 unaudited | 2012 unaudited | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 unaudited | 2020 | |||||||||||||||||||||||||
2011 | $ | 202,330 | $ | 202,548 | $ | 203,632 | $ | 212,362 | $ | 209,993 | $ | 209,133 | $ | 201,175 | $ | 178,046 | $ | 167,553 | $ | 163,620 | $ | 8,396 | |||||||||||||
2012 | 210,543 | 217,148 | 222,578 | 224,912 | 223,661 | 213,805 | 215,159 | 207,936 | 204,530 | 10,839 | |||||||||||||||||||||||||
2013 | 210,173 | 215,431 | 216,716 | 215,064 | 214,668 | 207,425 | 183,035 | 170,614 | 17,670 | ||||||||||||||||||||||||||
2014 | 220,070 | 220,132 | 220,120 | 220,167 | 234,567 | 231,153 | 230,034 | 21,710 | |||||||||||||||||||||||||||
2015 | 212,683 | 213,076 | 215,362 | 226,092 | 233,056 | 230,331 | 37,004 | ||||||||||||||||||||||||||||
2016 | 195,753 | 196,922 | 200,808 | 229,187 | 257,160 | 55,800 | |||||||||||||||||||||||||||||
2017 | 156,074 | 157,025 | 163,474 | 180,501 | 64,159 | ||||||||||||||||||||||||||||||
2018 | 148,348 | 151,299 | 158,552 | 86,571 | |||||||||||||||||||||||||||||||
2019 | 141,702 | 142,176 | 101,309 | ||||||||||||||||||||||||||||||||
2020 | 141,457 | 123,152 | |||||||||||||||||||||||||||||||||
Total | $ | 1,878,975 | |||||||||||||||||||||||||||||||||
Reinsurance professional lines | |||||||||||||||||||||||||||||
Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited) | |||||||||||||||||||||||||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | ||||||||||||||||||||
1.0% | 5.8% | 13.0% | 15.1% | 13.9% | 12.1% | 9.6% | 5.4% | 4.4% | 0.9% |
Reinsurance motor | |||||||||||||||||||||||||||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | At December 31, 2020 | ||||||||||||||||||||||||||||||||||
For the years ended December 31, | Total of incurred-but-not-reported liabilities plus expected development on reported claims | ||||||||||||||||||||||||||||||||||
Accident year | 2011 unaudited | 2012 unaudited | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 unaudited | 2020 | |||||||||||||||||||||||||
2011 | $ | 164,847 | $ | 169,341 | $ | 173,561 | $ | 179,943 | $ | 176,048 | $ | 166,869 | $ | 155,648 | $ | 150,105 | $ | 142,017 | $ | 139,182 | $ | 17,768 | |||||||||||||
2012 | 188,256 | 179,151 | 166,747 | 158,734 | 153,524 | 143,492 | 140,251 | 131,573 | 131,937 | 13,920 | |||||||||||||||||||||||||
2013 | 172,316 | 171,275 | 158,838 | 148,804 | 145,148 | 141,827 | 132,624 | 129,238 | 12,486 | ||||||||||||||||||||||||||
2014 | 192,457 | 196,133 | 191,121 | 187,883 | 183,197 | 179,646 | 175,871 | 6,713 | |||||||||||||||||||||||||||
2015 | 233,605 | 231,712 | 235,796 | 237,299 | 225,413 | 223,532 | 11,590 | ||||||||||||||||||||||||||||
2016 | 257,429 | 279,115 | 281,659 | 270,554 | 261,473 | 11,999 | |||||||||||||||||||||||||||||
2017 | 379,810 | 396,370 | 377,292 | 378,976 | 37,506 | ||||||||||||||||||||||||||||||
2018 | 375,513 | 378,515 | 391,410 | 55,538 | |||||||||||||||||||||||||||||||
2019 | 354,221 | 354,568 | 79,778 | ||||||||||||||||||||||||||||||||
2020 | 221,276 | 152,472 | |||||||||||||||||||||||||||||||||
Total | $ | 2,407,463 | |||||||||||||||||||||||||||||||||
Reinsurance motor | ||||||||||||||||||||||||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | ||||||||||||||||||||||||||||||||
For the years ended December 31, | ||||||||||||||||||||||||||||||||
Accident year | 2011 unaudited | 2012 unaudited | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 unaudited | 2020 | ||||||||||||||||||||||
2011 | $ | 24,346 | $ | 49,721 | $ | 65,351 | $ | 76,441 | $ | 83,615 | $ | 89,952 | $ | 94,893 | $ | 95,946 | $ | 98,020 | $ | 100,394 | ||||||||||||
2012 | 29,851 | 55,800 | 71,305 | 81,695 | 88,535 | 92,812 | 95,269 | 96,508 | 98,316 | |||||||||||||||||||||||
2013 | 34,780 | 56,692 | 71,790 | 82,510 | 88,589 | 94,498 | 97,715 | 100,213 | ||||||||||||||||||||||||
2014 | 44,432 | 78,589 | 99,642 | 108,374 | 119,252 | 129,566 | 139,456 | |||||||||||||||||||||||||
2015 | 59,120 | 98,431 | 120,135 | 138,317 | 155,110 | 169,838 | ||||||||||||||||||||||||||
2016 | 62,171 | 110,605 | 136,449 | 155,493 | 175,311 | |||||||||||||||||||||||||||
2017 | 73,759 | 141,599 | 174,770 | 209,888 | ||||||||||||||||||||||||||||
2018 | 85,701 | 150,276 | 200,801 | |||||||||||||||||||||||||||||
2019 | 91,189 | 159,461 | ||||||||||||||||||||||||||||||
2020 | 25,631 | |||||||||||||||||||||||||||||||
Total | 1,379,309 | |||||||||||||||||||||||||||||||
All outstanding liabilities before 2011, net of reinsurance | 233,087 | |||||||||||||||||||||||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ | 1,261,241 | ||||||||||||||||||||||||||||||
Reinsurance motor | |||||||||||||||||||||||||||||
Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited) | |||||||||||||||||||||||||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | ||||||||||||||||||||
22.1% | 18.2% | 11.0% | 7.7% | 6.1% | 5.0% | 3.4% | 1.2% | 1.5% | 1.7% |
Reinsurance liability | ||||||||||||||||||||||||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | ||||||||||||||||||||||||||||||||
For the years ended December 31, | ||||||||||||||||||||||||||||||||
Accident year | 2011 unaudited | 2012 unaudited | 2013 unaudited | 2014 unaudited | 2015 unaudited | 2016 unaudited | 2017 unaudited | 2018 unaudited | 2019 unaudited | 2020 | ||||||||||||||||||||||
2011 | $ | 5,202 | $ | 21,305 | $ | 40,027 | $ | 70,339 | $ | 92,760 | $ | 112,649 | $ | 123,781 | $ | 136,200 | $ | 142,173 | $ | 150,790 | ||||||||||||
2012 | 3,545 | 12,812 | 28,426 | 58,881 | 78,405 | 101,391 | 115,874 | 126,298 | 134,789 | |||||||||||||||||||||||
2013 | 5,977 | 22,262 | 52,364 | 69,100 | 88,334 | 102,678 | 113,217 | 123,774 | ||||||||||||||||||||||||
2014 | 7,112 | 28,700 | 48,503 | 70,400 | 89,760 | 110,511 | 131,002 | |||||||||||||||||||||||||
2015 | 7,274 | 27,476 | 54,640 | 81,010 | 109,349 | 131,327 | ||||||||||||||||||||||||||
2016 | 11,886 | 37,831 | 69,903 | 112,434 | 143,917 | |||||||||||||||||||||||||||
2017 | 12,448 | 42,218 | 78,830 | 121,535 | ||||||||||||||||||||||||||||
2018 | 19,369 | 50,223 | 85,671 | |||||||||||||||||||||||||||||
2019 | 19,334 | 45,511 | ||||||||||||||||||||||||||||||
2020 | 16,948 | |||||||||||||||||||||||||||||||
Total | 1,085,264 | |||||||||||||||||||||||||||||||
All outstanding liabilities before 2011, net of reinsurance | 95,411 | |||||||||||||||||||||||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ | 1,320,221 | ||||||||||||||||||||||||||||||
Reinsurance liability | |||||||||||||||||||||||||||||
Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited) | |||||||||||||||||||||||||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | ||||||||||||||||||||
4.5% | 9.5% | 12.4% | 14.3% | 11.9% | 11.0% | 8.1% | 6.6% | 4.2% | 4.5% |
Reconciliation of the disclosure of incurred and paid claims development to the liability
for unpaid claims and claim adjustment expenses |
||||||||||||||||||||
At December 31, 2020 | ||||||||||||||||||||
Net outstanding liabilities | Reinsurance recoverable on unpaid claims | Gross outstanding liabilities | ||||||||||||||||||
Insurance segment | ||||||||||||||||||||
Property and other | $ | 794,903 | $ | 508,225 | $ | 1,303,128 | ||||||||||||||
Marine | 362,631 | 162,396 | 525,027 | |||||||||||||||||
Aviation | 84,024 | 64,252 | 148,276 | |||||||||||||||||
Credit and political risk | 106,644 | 51,667 | 158,311 | |||||||||||||||||
Professional lines | 1,786,152 | 1,227,183 | 3,013,335 | |||||||||||||||||
Liability | 802,929 | 1,182,644 | 1,985,573 | |||||||||||||||||
Total insurance segment | 3,937,283 | 3,196,367 | 7,133,650 | |||||||||||||||||
Reinsurance segment | ||||||||||||||||||||
Property and other | 1,640,017 | 497,211 | 2,137,228 | |||||||||||||||||
Credit and surety | 243,609 | 70,143 | 313,752 | |||||||||||||||||
Professional lines | 990,567 | 186,245 | 1,176,812 | |||||||||||||||||
Motor | 1,261,241 | 228,453 | 1,489,694 | |||||||||||||||||
Liability | 1,320,221 | 318,222 | 1,638,443 | |||||||||||||||||
Total reinsurance segment | 5,455,655 | 1,300,274 | 6,755,929 | |||||||||||||||||
Total | $ | 9,392,938 | $ | 4,496,641 | 13,889,579 | |||||||||||||||
Unallocated claims adjustment expenses | 140,245 | |||||||||||||||||||
Foreign exchange and other(1)
|
49,072 | |||||||||||||||||||
(Ceded)/assumed reserves related to retroactive transactions | (152,130) | |||||||||||||||||||
Total liability for unpaid claims and claims adjustment expense | $ | 13,926,766 | ||||||||||||||||||
Year ended December 31, | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||||||||||
Premiums
written |
Premiums
earned |
Premiums
written |
Premiums
earned |
Premiums
written |
Premiums
earned |
||||||||||||||||||||||||||||||||||||
Gross | $ | 6,826,938 | $ | 6,768,733 | $ | 6,898,858 | $ | 6,910,677 | $ | 6,910,065 | $ | 6,882,217 | |||||||||||||||||||||||||||||
Ceded | (2,490,529) | (2,397,424) | (2,409,243) | (2,323,499) | (2,251,103) | (2,090,722) | |||||||||||||||||||||||||||||||||||
Net | $ | 4,336,409 | $ | 4,371,309 | $ | 4,489,615 | $ | 4,587,178 | $ | 4,658,962 | $ | 4,791,495 | |||||||||||||||||||||||||||||
Year ended December 31, | 2020 | 2019 | |||||||||||||||
5.875% Senior Notes (1)
|
$ | — | $ | 499,687 | |||||||||||||
5.150% Senior Notes
|
246,559 | 246,491 | |||||||||||||||
4.000% Senior Notes
|
347,324 | 346,997 | |||||||||||||||
3.900% Senior Notes
|
295,748 | 295,339 | |||||||||||||||
Junior Subordinated Notes | 420,064 | 419,643 | |||||||||||||||
Total Debt | $ | 1,309,695 | $ | 1,808,157 | |||||||||||||
Description | Issuance Date | Aggregate Principal | Issue Price | Net Proceeds | Maturity Date | ||||||||||||||||||||||||||||||
5.150% Senior Notes
|
March 13, 2014 | 250,000 | 99.474 | % | 246,000 | April 1, 2045 | |||||||||||||||||||||||||||||
4.000% Senior Notes
|
December 6, 2017 | 350,000 | 99.780 | % | 347,000 | December 6, 2027 | |||||||||||||||||||||||||||||
3.900% Senior Notes
|
June 19, 2019 | 300,000 | 99.360 | % | 296,000 | July 15, 2029 | |||||||||||||||||||||||||||||
Junior Subordinated Notes | December 10, 2019 | 425,000 | 99.000 | % | 420,750 | January 15, 2040 | |||||||||||||||||||||||||||||
Description | Interest Rate | Interest Payments Due | |||||||||||||||
5.150% Senior Notes
|
5.150 | % | Semi-annually in arrears on April 1 and October 1 of each year | ||||||||||||||
4.000% Senior Notes
|
4.000 | % | Semi-annually in arrears on June 6 and December 6 of each year | ||||||||||||||
3.900% Senior Notes
|
3.900 | % | Semi-annually in arrears on January 15 and July 15 of each year | ||||||||||||||
Junior Subordinated Notes(2)
|
4.900 | % | Semi-annually on January 15 and July 15 of each year | ||||||||||||||
Year ended December 31, | |||||||||||
2021 | — | ||||||||||
2022 | — | ||||||||||
2023 | — | ||||||||||
2024 | — | ||||||||||
2025 | — | ||||||||||
After 2025 | 1,325,000 | ||||||||||
Unamortized discount and debt issuance expenses | (15,305) | ||||||||||
Total senior notes and notes payable | $ | 1,309,695 | |||||||||
Year ended | Year ended | ||||||||||||||||
December 31, 2020 | December 31, 2019 | ||||||||||||||||
Lease cost: | |||||||||||||||||
Operating lease expense | $ | 24,726 | $ | 27,549 | |||||||||||||
Short-term lease expense(1)
|
299 | 1,132 | |||||||||||||||
Sublease income(2)
|
(3,578) | (1,144) | |||||||||||||||
Total lease expense | $ | 21,447 | $ | 27,537 | |||||||||||||
Other information: | |||||||||||||||||
Operating cash outflows from operating leases | $ | 20,452 | $ | 25,004 | |||||||||||||
Right-of-use assets obtained in exchange for new operating lease liabilities | $ | 36,742 | $ | — | |||||||||||||
Weighted-average remaining lease term - operating leases(3)
|
10.2 years | 9.0 years | |||||||||||||||
Weighted-average discount rate - operating lease(4)
|
4.2 | % | 4.7 | % | |||||||||||||
Expected | |||||||||||
Year ended December 31, | Cash Flows | ||||||||||
2021 | $ | 22,817 | |||||||||
2022 | 23,598 | ||||||||||
2023 | 20,190 | ||||||||||
2024 | 14,478 | ||||||||||
2025 | 13,849 | ||||||||||
Later years | 78,987 | ||||||||||
Discount | (33,656) | ||||||||||
Total discounted operating lease liabilities | $ | 140,263 | |||||||||
Year ended December 31, | |||||||||||
2020 | $ | 19,225 | |||||||||
2021 | 19,129 | ||||||||||
2022 | 20,049 | ||||||||||
2023 | 16,641 | ||||||||||
2024 | 11,006 | ||||||||||
Later years | 58,562 | ||||||||||
Discount | (29,028) | ||||||||||
Total discounted operating lease liabilities | $ | 115,584 | |||||||||
At and year ended December 31, | 2020 | 2019 | 2018 | ||||||||||||||||||||
Earnings (loss) per common share | |||||||||||||||||||||||
Net income (loss) | $ | (120,424) | $ | 323,473 | $ | 43,021 | |||||||||||||||||
Less: Preferred share dividends | 30,250 | 41,112 | 42,625 | ||||||||||||||||||||
Net income (loss) available (attributable) to common shareholders | $ | (150,674) | $ | 282,361 | $ | 396 | |||||||||||||||||
Weighted average common shares outstanding | 84,262 | 83,894 | 83,501 | ||||||||||||||||||||
Earnings (loss) per common share | $ | (1.79) | $ | 3.37 | $ | — | |||||||||||||||||
Earnings (loss) per diluted common share | |||||||||||||||||||||||
Net income (loss) available (attributable) to common shareholders | $ | (150,674) | $ | 282,361 | $ | 396 | |||||||||||||||||
Weighted average common shares outstanding | 84,262 | 83,894 | 83,501 | ||||||||||||||||||||
Share-based compensation plans(1)
|
— | 579 | 506 | ||||||||||||||||||||
Weighted average diluted common shares outstanding | 84,262 | 84,473 | 84,007 | ||||||||||||||||||||
Earnings (loss) per diluted common share | $ | (1.79) | $ | 3.34 | $ | — | |||||||||||||||||
Weighted average anti-dilutive shares excluded from the dilutive computation | 922 | 154 | 245 | ||||||||||||||||||||
Year ended December 31, | 2020 | 2019 | 2018 | ||||||||||||||||||||
Shares issued, balance at beginning of year | 176,580 | 176,580 | 176,580 | ||||||||||||||||||||
Shares issued | — | — | — | ||||||||||||||||||||
Total shares issued at end of year | 176,580 | 176,580 | 176,580 | ||||||||||||||||||||
Treasury shares, balance at beginning of year | (92,621) | (92,994) | (93,419) | ||||||||||||||||||||
Shares repurchased | (194) | (176) | (200) | ||||||||||||||||||||
Shares reissued | 588 | 549 | 625 | ||||||||||||||||||||
Total treasury shares at end of year | (92,227) | (92,621) | (92,994) | ||||||||||||||||||||
Total shares outstanding | 84,353 | 83,959 | 83,586 | ||||||||||||||||||||
Year ended December 31, | 2020 | 2019 | 2018 | ||||||||||||||||||||
In the open market: | |||||||||||||||||||||||
Total shares | — | — | — | ||||||||||||||||||||
Total cost | $ | — | $ | — | $ | — | |||||||||||||||||
Average price per share (1)
|
$ | — | $ | — | $ | — | |||||||||||||||||
From employees:(2)
|
|||||||||||||||||||||||
Total shares | 194 | 176 | 200 | ||||||||||||||||||||
Total cost | $ | 10,382 | $ | 10,165 | $ | 10,080 | |||||||||||||||||
Average price per share(1)
|
$ | 53.43 | $ | 57.66 | $ | 50.40 | |||||||||||||||||
Total shares repurchased: | |||||||||||||||||||||||
Total shares | 194 | 176 | 200 | ||||||||||||||||||||
Total cost | $ | 10,382 | $ | 10,165 | $ | 10,080 | |||||||||||||||||
Average price per share(1)
|
$ | 53.43 | $ | 57.66 | $ | 50.40 | |||||||||||||||||
Per share data | |||||||||||||||||||||||
Dividends declared | Dividends paid in year of declaration | Dividends paid in year following declaration | |||||||||||||||||||||
Year ended December 31, 2018 | |||||||||||||||||||||||
Common shares | $ | 1.57 | $ | 1.17 | $ | 0.40 | |||||||||||||||||
Series D preferred shares | $ | 1.38 | $ | 1.03 | $ | 0.34 | |||||||||||||||||
Series E preferred shares | $ | 137.50 | $ | 103.13 | $ | 34.38 | |||||||||||||||||
Year ended December 31, 2019 | |||||||||||||||||||||||
Common shares | $ | 1.61 | $ | 1.20 | $ | 0.41 | |||||||||||||||||
Series D preferred shares(1)
|
$ | 1.21 | $ | 1.03 | $ | 0.18 | |||||||||||||||||
Series E preferred shares | $ | 137.50 | $ | 103.13 | $ | 34.38 | |||||||||||||||||
Year ended December 31, 2020 | |||||||||||||||||||||||
Common shares | $ | 1.65 | $ | 1.23 | $ | 0.42 | |||||||||||||||||
Series E preferred shares | $ | 137.50 | $ | 103.13 | $ | 34.38 | |||||||||||||||||
Share-Settled Performance
Restricted Stock Units |
Share-Settled Service
Restricted Stock Units |
||||||||||||||||||||||||||||
Number of
restricted stock units |
Weighted average grant date
fair value(1)
|
Number of
restricted stock units |
Weighted average
grant date
fair value(1)
|
||||||||||||||||||||||||||
Nonvested restricted stock units - December 31, 2018 | 232 | $ | 54.54 | 1,411 | $ | 54.12 | |||||||||||||||||||||||
Granted | 127 | 54.70 | 523 | 54.88 | |||||||||||||||||||||||||
Vested | (61) | 53.82 | (487) | 54.29 | |||||||||||||||||||||||||
Forfeited | (40) | 64.01 | (174) | 54.49 | |||||||||||||||||||||||||
Nonvested restricted stock units - December 31, 2019 | 258 | 53.31 | 1,273 | 54.32 | |||||||||||||||||||||||||
Granted | 97 | 62.26 | 894 | 58.98 | |||||||||||||||||||||||||
Vested | (27) | 64.01 | (561) | 55.29 | |||||||||||||||||||||||||
Forfeited | (39) | 48.89 | (105) | 57.54 | |||||||||||||||||||||||||
Nonvested restricted stock units - December 31, 2020 | 289 | $ | 55.92 | 1,501 | $ | 56.50 | |||||||||||||||||||||||
Cash-Settled Performance Restricted Stock Units | Cash-Settled Service Restricted Stock Units | ||||||||||||||||
Number of
restricted stock units |
Number of
restricted stock units |
||||||||||||||||
Nonvested restricted stock units - December 31, 2018 | 27 | 932 | |||||||||||||||
Granted | — | 364 | |||||||||||||||
Vested | (12) | (333) | |||||||||||||||
Forfeited | (9) | (110) | |||||||||||||||
Nonvested restricted stock units - December 31, 2019 | 6 | 853 | |||||||||||||||
Granted | — | 1 | |||||||||||||||
Vested | (6) | (332) | |||||||||||||||
Forfeited | — | (51) | |||||||||||||||
Nonvested restricted stock units - December 31, 2020 | — | 471 | |||||||||||||||
Year ended December 31, | 2020 | 2019 | 2018 | ||||||||||||||||||||
Share-based compensation expense (1)
|
$ | 47,789 | $ | 52,218 | $ | 54,011 | |||||||||||||||||
Tax benefits associated with share-based compensation expense | $ | 8,061 | $ | 8,913 | $ | 7,772 | |||||||||||||||||
Liability for cash-settled restricted stock units (2)
|
$ | 13,273 | $ | 21,731 | $ | 20,648 | |||||||||||||||||
Fair value of restricted stock units vested (3)
|
$ | 50,757 | $ | 51,206 | $ | 50,750 | |||||||||||||||||
Unrecognized share-based compensation expense | $ | 74,014 | $ | 75,770 | $ | 87,341 | |||||||||||||||||
Expected weighted average period associated with the recognition of unrecognized share-based compensation expense | 2.4 years | 2.3 years | 2.4 years | ||||||||||||||||||||
Year ended December 31, | 2020 | 2019 | 2018 | ||||||||||||||||||||
Current income tax expense (benefit) | |||||||||||||||||||||||
U.S. | $ | (1,122) | $ | 12,601 | $ | (5,401) | |||||||||||||||||
Europe | 365 | 22,425 | 10,409 | ||||||||||||||||||||
Other | — | 469 | 51 | ||||||||||||||||||||
Deferred income tax expense (benefit) | |||||||||||||||||||||||
U.S. | (3,098) | 17,665 | 15,288 | ||||||||||||||||||||
Europe | (8,466) | (29,468) | (49,833) | ||||||||||||||||||||
Total income tax expense (benefit) | $ | (12,321) | $ | 23,692 | $ | (29,486) | |||||||||||||||||
Net current tax receivables (payables) | $ | 12,205 | $ | 13,130 | $ | 9,683 | |||||||||||||||||
Net deferred tax assets (liabilities) | (1,625) | 18,621 | 39,775 | ||||||||||||||||||||
Net tax assets | $ | 10,580 | $ | 31,751 | $ | 49,458 | |||||||||||||||||
At December 31, | 2020 | 2019 | |||||||||||||||
Deferred tax assets: | |||||||||||||||||
Discounting of net reserves for losses and loss expenses | $ | 47,912 | $ | 40,523 | |||||||||||||
Unearned premiums | 46,049 | 42,709 | |||||||||||||||
Operating and capital loss carryforwards(1)
|
80,008 | 85,901 | |||||||||||||||
Accruals not currently deductible | 28,096 | 29,705 | |||||||||||||||
Tax credits | 11,142 | 2,956 | |||||||||||||||
Other deferred tax assets | 24,266 | 14,355 | |||||||||||||||
Deferred tax assets before valuation allowance | 237,473 | 216,149 | |||||||||||||||
Valuation allowance | (20,778) | (18,560) | |||||||||||||||
Deferred tax assets net of valuation allowance | 216,695 | 197,589 | |||||||||||||||
Deferred tax liabilities: | |||||||||||||||||
Deferred acquisition costs | (33,550) | (38,320) | |||||||||||||||
Net unrealized investments gains | (62,921) | (30,434) | |||||||||||||||
Intangible assets | (46,132) | (44,199) | |||||||||||||||
Equalization reserves | (2,825) | (2,825) | |||||||||||||||
Other deferred tax liabilities | (72,892) | (63,190) | |||||||||||||||
Deferred tax liabilities | (218,320) | (178,968) | |||||||||||||||
Net deferred tax assets | $ | (1,625) | $ | 18,621 | |||||||||||||
At December 31, | 2020 | 2019 | |||||||||||||||
Operating and Capital Loss Carryforwards(1)
|
|||||||||||||||||
Singapore (branch) operating loss carryforward | $ | 110,504 | $ | 103,899 | |||||||||||||
U.K. operating loss carryforward(2)
|
357,226 | 431,374 | |||||||||||||||
Ireland operating loss carryforward | 404 | 9,064 | |||||||||||||||
Ireland capital loss carryforward | 716 | 716 | |||||||||||||||
Belgian operating loss carryforward | 1,850 | — | |||||||||||||||
Tax Credits(1)
|
|||||||||||||||||
Ireland foreign tax credit | $ | 2,386 | $ | 2,092 | |||||||||||||
U.K. tax credit | 8,756 | 864 | |||||||||||||||
At December 31, | 2020 | 2019 | |||||||||||||||
Income tax expense: | |||||||||||||||||
Valuation allowance - beginning of year | $ | 18,560 | $ | 13,891 | |||||||||||||
Operating loss carryforwards | 661 | 2,445 | |||||||||||||||
Foreign tax credit | 293 | (114) | |||||||||||||||
U.K. branch assets and other foreign rate differentials | 1,264 | 2,338 | |||||||||||||||
Valuation allowance - end of year | $ | 20,778 | $ | 18,560 | |||||||||||||
Accumulated other comprehensive income: | |||||||||||||||||
Valuation allowance - beginning of year | — | 5,064 | |||||||||||||||
Change in investment - related items | — | (5,064) | |||||||||||||||
Valuation allowance - end of year | — | — | |||||||||||||||
Total valuation allowance - end of year | $ | 20,778 | $ | 18,560 | |||||||||||||
Year ended December 31, | 2020 | 2019 | 2018 | ||||||||||||||||||||
Income (loss) before income taxes | |||||||||||||||||||||||
Bermuda (domestic) | $ | (45,951) | $ | 179,418 | $ | 181,597 | |||||||||||||||||
Foreign | (86,794) | 167,747 | (168,062) | ||||||||||||||||||||
Total income (loss) before income taxes | $ | (132,745) | $ | 347,165 | $ | 13,535 | |||||||||||||||||
Reconciliation of effective tax rate (% of income before income taxes) | |||||||||||||||||||||||
Expected tax rate | 0.0 | % | 0.0 | % | 0.0 | % | |||||||||||||||||
Foreign taxes at local expected rates: | |||||||||||||||||||||||
U.S. | 5.6 | % | 8.1 | % | 65.7 | % | |||||||||||||||||
Europe | 9.2 | % | 0.4 | % | (289.7) | % | |||||||||||||||||
Valuation allowance | (1.7) | % | 1.3 | % | (13.4) | % | |||||||||||||||||
Net tax exempt income | — | % | — | % | (3.3) | % | |||||||||||||||||
Change in European enacted tax rate | (1.7) | % | — | % | 16.9 | % | |||||||||||||||||
Other | (2.1) | % | (3.0) | % | 5.9 | % | |||||||||||||||||
Actual tax rate | 9.3 | % | 6.8 | % | (217.9) | % | |||||||||||||||||
Before tax amount | Income tax (expense) benefit | Net of tax amount | |||||||||||||||||||||
Year ended December 31, 2020 | |||||||||||||||||||||||
Available for sale investments: | |||||||||||||||||||||||
Unrealized gains (losses) arising during the year for which an allowance for expected credit losses has not been recognized | $ | 360,357 | $ | (43,191) | $ | 317,166 | |||||||||||||||||
Unrealized gains (losses) arising during the year for which an allowance for expected credit losses has been recognized | (40) | — | (40) | ||||||||||||||||||||
Adjustment for reclassification of net realized (gains) losses, impairment losses and OTTI losses recognized in net income (loss)
|
(90,380) | 12,368 | (78,012) | ||||||||||||||||||||
Unrealized gains (losses) arising during the year, net of reclassification adjustment | 269,937 | (30,823) | 239,114 | ||||||||||||||||||||
Foreign currency translation adjustment | 3,571 | — | 3,571 | ||||||||||||||||||||
Total other comprehensive income (loss), net of tax | $ | 273,508 | $ | (30,823) | $ | 242,685 | |||||||||||||||||
Year ended December 31, 2019 | |||||||||||||||||||||||
Available for sale investments: | |||||||||||||||||||||||
Unrealized gains (losses) arising during the year | $ | 414,982 | $ | (40,367) | $ | 374,615 | |||||||||||||||||
Adjustment for reclassification of net realized (gains) losses and OTTI losses recognized in net income (loss) | $ | (29,618) | $ | 4,889 | $ | (24,729) | |||||||||||||||||
Unrealized gains (losses) arising during the year, net of reclassification adjustment (1)
|
385,364 | (35,478) | 349,886 | ||||||||||||||||||||
Foreign currency translation adjustment | (1,066) | — | (1,066) | ||||||||||||||||||||
Total other comprehensive income (loss), net of tax | $ | 384,298 | $ | (35,478) | $ | 348,820 | |||||||||||||||||
Year ended December 31, 2018 | |||||||||||||||||||||||
Available for sale investments: | |||||||||||||||||||||||
Unrealized gains (losses) arising during the year | $ | (297,259) | $ | 5,528 | $ | (291,731) | |||||||||||||||||
Adjustment for reclassification of net realized (gains) losses and OTTI losses recognized in net income (loss) | 105,730 | (4,828) | 100,902 | ||||||||||||||||||||
Unrealized gains (losses) arising during the year, net of reclassification adjustment | (191,529) | 700 | (190,829) | ||||||||||||||||||||
Foreign currency translation adjustment | (11,165) | — | (11,165) | ||||||||||||||||||||
Total other comprehensive income (loss), net of tax | $ | (202,694) | $ | 700 | $ | (201,994) | |||||||||||||||||
Amounts reclassified from AOCI(1)
|
|||||||||||||||||||||||||||||
AOCI components | Consolidated statement of operations line item that includes reclassification adjustment | Years ended December 31, | |||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
Unrealized gains (losses) on available for sale investments
|
|||||||||||||||||||||||||||||
Other realized gains (losses)
|
$ | 91,866 | $ | 36,602 | $ | (95,997) | |||||||||||||||||||||||
Impairment losses | (1,486) | — | — | ||||||||||||||||||||||||||
OTTI losses | — | (6,984) | (9,733) | ||||||||||||||||||||||||||
Total before tax | 90,380 | 29,618 | (105,730) | ||||||||||||||||||||||||||
Income tax (expense) benefit | (12,368) | (4,889) | 4,828 | ||||||||||||||||||||||||||
Net of tax | $ | 78,012 | $ | 24,729 | $ | (100,902) | |||||||||||||||||||||||
Foreign currency translation adjustments(2)
|
|||||||||||||||||||||||||||||
Foreign exchange gains (losses) | $ | — | $ | 6,043 | $ | — | |||||||||||||||||||||||
Income tax (expense) benefit | — | — | — | ||||||||||||||||||||||||||
Net of tax | $ | — | $ | 6,043 | $ | — | |||||||||||||||||||||||
Bermuda | Ireland | U.S. | ||||||||||||||||||||||||||||||
At December 31, | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||
Required statutory capital and surplus | $ | 1,584,854 | $ | 1,502,153 | $ | 778,493 | $ | 719,405 | $ | 542,824 | $ | 500,750 | ||||||||||||||||||||
Available statutory capital and surplus | $ | 3,004,077 | $ | 3,288,752 | $ | 1,085,317 | $ | 1,069,621 | $ | 1,685,684 | $ | 1,713,013 | ||||||||||||||||||||
Quarters ended | Dec 31 | Sep 30 | Jun 30 | Mar 31 | ||||||||||||||||||||||||||||
2020 | ||||||||||||||||||||||||||||||||
Net premiums earned | $ | 1,087,368 | $ | 1,091,312 | $ | 1,104,003 | $ | 1,088,625 | ||||||||||||||||||||||||
Net investment income | 109,503 | 101,956 | 45,040 | 93,101 | ||||||||||||||||||||||||||||
Net investment gains (losses) | 83,356 | 55,609 | 53,043 | (62,877) | ||||||||||||||||||||||||||||
Underwriting income (loss) (1) (2)
|
(80,835) | (135,324) | 87,412 | (196,767) | ||||||||||||||||||||||||||||
Net income (loss) available (attributable) to common shareholders | (4,819) | (72,945) | 112,477 | (185,390) | ||||||||||||||||||||||||||||
Earnings (loss) per common share | $ | (0.06) | $ | (0.87) | $ | 1.33 | $ | (2.20) | ||||||||||||||||||||||||
Earnings (loss) per diluted common share | $ | (0.06) | $ | (0.87) | $ | 1.33 | $ | (2.20) | ||||||||||||||||||||||||
2019 | ||||||||||||||||||||||||||||||||
Net premiums earned | $ | 1,172,051 | $ | 1,157,307 | $ | 1,123,607 | $ | 1,134,212 | ||||||||||||||||||||||||
Net investment income | 117,557 | 115,763 | 137,949 | 107,303 | ||||||||||||||||||||||||||||
Net investment gains | 42,712 | 14,527 | 21,225 | 12,767 | ||||||||||||||||||||||||||||
Underwriting income (loss)(1) (2)
|
(49,254) | (78,718) | 78,659 | 77,822 | ||||||||||||||||||||||||||||
Net income (loss) available (attributable) to common shareholders | (9,897) | 27,745 | 166,387 | 98,125 | ||||||||||||||||||||||||||||
Earnings (loss) per common share | $ | (0.12) | $ | 0.33 | $ | 1.98 | $ | 1.17 | ||||||||||||||||||||||||
Earnings (loss) per diluted common share | $ | (0.12) | $ | 0.33 | $ | 1.97 | $ | 1.16 | ||||||||||||||||||||||||
/s/ Deloitte Ltd. | ||
Hamilton, Bermuda | ||
February 26, 2021 |
Exhibit
Number |
Description of Document | |||||||
Rule 2.7 Announcement dated July 5, 2017 in connection with acquisition of Novae Group plc (incorporated by reference to Exhibit 2.1 to the Company's Current Report on Form 8-K filed on July 6, 2017). | ||||||||
Rule 2.7 Announcement dated August 24, 2017 in connection with acquisition of Novae Group plc (incorporated by reference to Exhibit 2.1 to the Company's Current Report on Form 8-K filed on August 25, 2017). | ||||||||
Certificate of Incorporation and Memorandum of Association of AXIS Capital Holdings Limited (incorporated by reference to Exhibit 3.1 to the Company's Registration Statement on Form S-1 (Amendment No. 1) (No. 333-103620) filed on April 16, 2003). | ||||||||
Amended and Restated Bye-laws of AXIS Capital Holdings Limited (incorporated by reference to Exhibit 4.2 to the Company's Registration Statement on Form S-8 filed on May 15, 2009). | ||||||||
Specimen Common Share Certificate (incorporated by reference to Exhibit 4.1 to the Company's Registration Statement on Form S-1 (Amendment No. 3) (No. 333-103620) filed on June 10, 2003). | ||||||||
Senior Indenture among AXIS Specialty Finance LLC, AXIS Capital Holdings Limited and The Bank of New York Mellon Trust Company, N.A., as trustee, dated as of March 23, 2010 (incorporated by reference to Exhibit 4.4 to the Company's Quarterly Report on Form 10-Q filed on April 27, 2010). | ||||||||
Senior Indenture among AXIS Specialty Finance PLC, as issuer, the Company, as guarantor, and The Bank of New York Mellon Trust Company, N.A., as trustee, dated as of March 13, 2014 (incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed on March 13, 2014). | ||||||||
First Supplemental Indenture, dated as of April 3, 2019, among AXIS Specialty Finance PLC, AXIS Capital Holdings Limited and The Bank of New York Mellon Trust Company, N.A., relating to the 5.150% Senior Notes due 2045 (incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed on April 4, 2019). | ||||||||
Junior Subordinated Indenture dated as of December 10, 2019, among AXIS Specialty Finance LLC, AXIS Capital Holdings Limited and The Bank of New York Mellon Trust Company, N.A. (incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed on December 11, 2019). | ||||||||
First Supplemental Indenture dated as of December 10, 2019, among AXIS Specialty Finance LLC, AXIS Capital Holdings Limited and The Bank of New York Mellon Trust Company, N.A., relating to the 4.900% Junior Subordinated Notes due 2040 (incorporated by reference to Exhibit 4.2 to the Company's Current Report on Form 8-K filed on December 11, 2019). | ||||||||
Form of 5.875% Senior Notes due 2020 (incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed on March 23, 2010). | ||||||||
Form of 5.150% Senior Notes due 2045 (incorporated by reference to Exhibit 4.3 to the Company's Current Report on Form 8-K filed on March 13, 2014). | ||||||||
Form of 4.000% Senior Notes due 2027 (incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed on December 6, 2017). | ||||||||
Form of 3.900% Senior Notes due 2029 (incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed on June 19, 2019). | ||||||||
Form of 4.900% Junior Subordinated Notes due 2040 (incorporated by reference to Exhibit 4.3 [included as part of Exhibit 4.2] to the Company's Current Report on Form 8-K filed on December 11, 2019). | ||||||||
Certificate of Designations setting forth the specific rights, preferences, limitations and other terms of the 5.50% Series D Preferred Shares (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed on May 20, 2013). | ||||||||
Certificate of Designations setting forth the specific rights, preferences, limitations and other terms of the 5.50% Series E Preferred Shares (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed on November 7, 2016). | ||||||||
†4.14
|
Description of AXIS Capital Holdings Limited's Securities Registered under Section 12 of the Exchange Act. | |||||||
Amended and Restated Shareholders Agreement dated December 31, 2002, among AXIS Capital Holdings Limited and each of the persons listed on Schedule A thereto (incorporated by reference to Exhibit 10.1 to the Company's Registration Statement on Form S-1 (Amendment No. 3) (No. 333-103620) filed on June 10, 2003). | ||||||||
*10.2
|
Consulting Agreement by and between Michael A. Butt and AXIS Specialty Limited dated May 3, 2012 (incorporated by reference to Exhibit 10.5 to the Company's Current Report on Form 8-K/A filed on May 9, 2012). | |||||||
*10.3
|
Amendment No. 1 to Consulting Agreement by and between Michael A. Butt and AXIS Specialty Limited dated December 5, 2013 (incorporated by reference to Exhibit 10.4 to the Company's Current Report on Form 8-K filed on December 9, 2013). | |||||||
*10.4
|
Amendment No. 2 to Consulting Agreement by and between Michael A. Butt and AXIS Specialty Limited dated December 5, 2014 (incorporated by reference to Exhibit 10.4 to the Company's Annual Report on Form 10-K filed on February 23, 2015). | |||||||
*10.5
|
Amendment No. 3 to Consulting Agreement by and between Michael A. Butt and AXIS Specialty Limited dated January 15, 2016 (incorporated by reference to Exhibit 10.5 to the Company's Annual Report on Form 10-K filed on February 25, 2016). | |||||||
*10.6
|
Amendment No. 4 to Consulting Agreement by and between Michael A. Butt and AXIS Specialty Limited dated December 8, 2016 (incorporated by reference to Exhibit 10.6 to the Company's Annual Report on Form 10-K filed on February 27, 2017). | |||||||
*10.7
|
Amendment No. 5 to Consulting Agreement by and between Michael A. Butt and AXIS Specialty Limited dated December 7, 2017 (incorporated by reference to Exhibit 10.7 to the Company's Annual Report on Form 10-K filed on February 28, 2018). | |||||||
*10.8
|
Amendment No. 6 to Consulting Agreement by and between Michael A. Butt and AXIS Specialty Limited dated December 5, 2018 (incorporated by reference to Exhibit 10.8 to the Company's Annual Report on Form 10-K filed on February 26, 2019). | |||||||
*10.9
|
Amendment No. 7 to Consulting Agreement by and between Michael A. Butt and AXIS Specialty Limited dated July 18, 2019 (incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q filed on August 7, 2019). | |||||||
Employment Agreement by and among Albert Benchimol, AXIS Capital Holdings Limited and AXIS Specialty U.S. Services, Inc. dated May 3, 2012 (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K/A filed on May 9, 2012). | ||||||||
Amendment No. 1 to Employment Agreement by and among Albert Benchimol, AXIS Capital Holdings Limited and AXIS Specialty U.S. Services, Inc. dated March 9, 2015 (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on March 11, 2015). | ||||||||
Amendment No. 2 to Employment Agreement by and among Albert Benchimol, AXIS Capital Holdings Limited and AXIS Specialty U.S. Services, Inc. dated January 19, 2016 (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on January 25, 2016). | ||||||||
Amendment No. 3 to Employment Agreement by and among Albert Benchimol, AXIS Capital Holdings Limited, AXIS Specialty U.S. Services, Inc. and AXIS Specialty Limited dated January 1, 2017 (incorporated by reference to Exhibit 10.10 to the Company's Annual Report on Form 10-K filed on February 27, 2017). | ||||||||
Amendment No. 4 to Employment Agreement by and among Albert Benchimol, AXIS Capital Holdings Limited and AXIS Specialty Limited dated December 6, 2018 (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on December 11, 2018). | ||||||||
Employment Agreement by and between Peter W. Wilson and AXIS Specialty U.S. Services, Inc. dated June 23, 2014 (incorporated by reference to Exhibit 10.12 to the Company's Annual Report on Form 10-K filed on February 23, 2015). | ||||||||
Amendment No. 1 to Employment Agreement by and between Peter W. Wilson and AXIS Specialty U.S. Services, Inc. dated September 21, 2016 (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on September 27, 2016). | ||||||||
Amendment No. 2 to Employment Agreement by and between Peter W. Wilson and AXIS Specialty U.S. Services, Inc. dated September 19, 2019 (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on September 24, 2019). | ||||||||
Employment Agreement by and between Peter Vogt and AXIS Specialty U.S. Services, Inc. dated December 11, 2017 (incorporated by reference to Exhibit 10.22 to the Company’s Annual Report on Form 10-K filed on February 28, 2018). | ||||||||
Amendment No. 1 to Employment Agreement by and between Peter Vogt and AXIS Specialty U.S. Services, Inc. dated October 2, 2020 (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on October 7, 2020). | ||||||||
Employment Agreement by and between Steve K. Arora and AXIS Specialty U.S. Services, Inc. dated July 5, 2017 (incorporated by reference to Exhibit 10.20 to the Company's Annual Report on Form 10-K filed on February 26, 2019). | ||||||||
Amendment No. 1 to Employment Agreement by and between Steve K. Arora and AXIS Specialty U.S. Services, Inc. dated October 6, 2020 (incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K filed on October 7, 2020). | ||||||||
Letter Agreement by and between Steve K. Arora and AXIS Specialty U.S. Services, Inc. dated July 5, 2017 (incorporated by reference to Exhibit 10.21 to the Company's Annual Report on Form 10-K filed on February 26, 2019). | ||||||||
Amendment No. 1 to Letter Agreement by and between Steve K. Arora and AXIS Specialty U.S. Services, Inc. dated October 6, 2020 (incorporated by reference to Exhibit 10.3 to the Company's Current Report on Form 8-K filed on October 7, 2020). | ||||||||
Employment Agreement by and between David Phillips and AXIS Specialty U.S. Services, Inc. dated March 21, 2014 (incorporated by reference to Exhibit 10.22 to the Company's Annual Report on Form 10-K filed on February 26, 2019). | ||||||||
2007 Long-Term Equity Compensation Plan, as amended (incorporated by reference to Exhibit 4.4 to the Company's Registration Statement on Form S-8 filed on May 15, 2012). | ||||||||
2017 Long-Term Equity Compensation Plan (incorporated by reference to Exhibit 4.4 to the Company's Registration Statement on Form S-8 filed on May 8, 2017). | ||||||||
†*10.27
|
Executive Long-Term Equity Compensation Program. | |||||||
Executive Annual Incentive Plan (incorporated by reference to Exhibit 10.29 to the Company's Annual Report on Form 10-K filed on February 27, 2020). | ||||||||
†*10.29
|
Executive Annual Incentive Plan. | |||||||
AXIS Executive RSU Retirement Plan (incorporated by reference to Exhibit 10.26 to the Company's Annual Report on Form 10-K filed on February 27, 2017). | ||||||||
Form of Employee Restricted Stock Unit Award Agreement (incorporated by reference to Exhibit 10.24 to the Company's Annual Report on Form 10-K filed on February 21, 2014). | ||||||||
Form of Employee Restricted Stock Unit Award Agreement (Performance Vesting) (incorporated by reference to Exhibit 10.22 to the Company's Annual Report on Form 10-K filed on February 27, 2017). | ||||||||
Form of Employee Restricted Stock Unit Award Agreement (Retirement Eligible/Performance Vesting) (incorporated by reference to Exhibit 10.27 to the Company's Annual Report on Form 10-K filed on February 27, 2017). | ||||||||
Form of Employee Restricted Stock Unit Award Agreement (Retirement Eligible) (incorporated by reference to Exhibit 10.28 to the Company's Annual Report on Form 10-K filed on February 27, 2017). | ||||||||
Form of Employee Restricted Stock Unit Award Agreement (Performance Vesting) (incorporated by reference to Exhibit 10.37 to the Company's Annual Report on Form 10-K filed on February 28, 2018). | ||||||||
Form of Employee Restricted Stock Unit Award Agreement (incorporated by reference to Exhibit 10.38 to the Company's Annual Report on Form 10-K filed on February 28, 2018). | ||||||||
Form of Employee Restricted Stock Unit Award Agreement (Performance Vesting) (incorporated by reference to Exhibit 10.36 to the Company's Annual Report on Form 10-K filed on February 26, 2019). | ||||||||
Form of Employee Restricted Stock Unit Award Agreement (incorporated by reference to Exhibit 10.37 to the Company's Annual Report on Form 10-K filed on February 26, 2019). | ||||||||
Form of Employee Restricted Stock Unit Award Agreement (Performance Vesting) (incorporated by reference to Exhibit 10.39 to the Company's Annual Report on Form 10-K filed on February 27, 2020). | ||||||||
†*10.40
|
Form of Employee Restricted Stock Unit Award Agreement (Performance Vesting). | |||||||
†*10.41
|
Form of Employee Restricted Stock Unit Award Agreement. | |||||||
AXIS Specialty U.S. Services, Inc. Supplemental Retirement Plan (incorporated by reference to Exhibit 10.23 to the Company's Annual Report on Form 10-K filed on February 26, 2008). | ||||||||
Directors Annual Compensation Program (incorporated by reference to Exhibit 10.42 to the Company's Annual Report on Form 10-K filed on February 27, 2020). | ||||||||
Master Reimbursement Agreement, dated as of May 14, 2010, by and among AXIS Specialty Limited, AXIS Re Limited, AXIS Specialty Europe Limited, AXIS Insurance Company, AXIS Surplus Insurance Company, AXIS Specialty Insurance Company, AXIS Reinsurance Company and Citibank Europe plc (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on May 19, 2010). | ||||||||
Amendment to Master Reimbursement Agreement dated January 27, 2012 by and among AXIS Specialty Limited, AXIS Re Limited, AXIS Specialty Europe Limited, AXIS Insurance Company, AXIS Surplus Insurance Company, AXIS Specialty Insurance Company and AXIS Reinsurance Company and Citibank Europe plc (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on January 30, 2012). | ||||||||
Amendment to Committed Facility Letter dated November 20, 2013 by and among AXIS Specialty Limited, AXIS Re SE, AXIS Specialty Europe SE, AXIS Insurance Company, AXIS Surplus Insurance Company and AXIS Reinsurance Company and Citibank Europe plc (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on November 21, 2013). | ||||||||
Amendment to Committed Facility Letter dated March 31, 2015 by and among AXIS Specialty Limited, AXIS Re SE, AXIS Specialty Europe SE, AXIS Insurance Company, AXIS Reinsurance Company, AXIS Surplus Insurance Company and Citibank Europe plc (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on April 1, 2015). | ||||||||
Amendment to Facility Fee Letter dated March 31, 2015 by and among AXIS Specialty Limited, AXIS Re SE, AXIS Specialty Europe SE, AXIS Insurance Company, AXIS Reinsurance Company, AXIS Surplus Insurance Company and Citibank Europe plc (incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K filed on April 1, 2015). | ||||||||
Committed Facility Letter dated December 18, 2015 by and among AXIS Specialty Limited, AXIS Re SE, AXIS Specialty Europe SE, AXIS Insurance Company, AXIS Surplus Insurance Company and AXIS Reinsurance Company and Citibank Europe plc (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on December 22, 2015). | ||||||||
Committed Facility Letter dated March 27, 2017 by and among AXIS Specialty Limited, AXIS Re SE, AXIS Specialty Europe SE, AXIS Insurance Company, AXIS Surplus Insurance Company and AXIS Reinsurance Company and Citibank Europe plc (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on March 31, 2017). | ||||||||
Amendment to Master Reimbursement Agreement dated March 27, 2017 by and among AXIS Specialty Limited, AXIS Re Limited, AXIS Specialty Europe Limited, AXIS Insurance Company, AXIS Surplus Insurance Company, AXIS Reinsurance Company and Citibank Europe plc (incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K filed on March 31, 2017). | ||||||||
Amendment to Committed Facility Letter dated March 28, 2018 by and among AXIS Specialty Limited, AXIS Re SE, AXIS Specialty Europe SE, AXIS Insurance Company, AXIS Surplus Insurance Company, AXIS Reinsurance Company and Citibank Europe plc (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on April 3, 2018). | ||||||||
Deed of Amendment to $250 million secured letter of credit facility dated March 28, 2019 by and among AXIS Specialty Limited, AXIS Re SE, AXIS Specialty Europe SE, AXIS Insurance Company, AXIS Surplus Insurance Company, AXIS Reinsurance Company and Citibank Europe plc (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on April 3, 2019). | ||||||||
Deed of Amendment to $500 million secured letter of credit facility dated December 24, 2019 by and among AXIS Specialty Limited, AXIS Re SE, AXIS Specialty Europe SE, AXIS Insurance Company, AXIS Surplus Insurance Company, AXIS Reinsurance Company and Citibank Europe plc (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on December 30, 2019). | ||||||||
Deed of Amendment to $250 million secured letter of credit facility dated March 28, 2020 by and among AXIS Specialty Limited, AXIS Re SE, AXIS Specialty Europe SE, AXIS Insurance Company, AXIS Surplus Insurance Company, AXIS Reinsurance Company and Citibank Europe plc (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on April 1, 2020). | ||||||||
†21.1
|
Subsidiaries of the registrant. | |||||||
†22.1
|
Subsidiary Guarantors and Issuers of Guaranteed Securities. | |||||||
†23.1
|
Consent of Deloitte Ltd. | |||||||
†24.1 | Power of Attorney (included as part of signature pages hereto). |
†31.1
|
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |||||||
†31.2
|
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |||||||
†32.1
|
Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |||||||
†32.2
|
Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |||||||
†101 | The following financial information from AXIS Capital Holdings Limited’s Annual Report on Form 10-K for the year ended December 31, 2020 formatted in Inline XBRL: (i) Consolidated Balance Sheets at December 31, 2020 and 2019; (ii) Consolidated Statements of Operations for the years ended December 31, 2020, 2019 and 2018; (iii) Consolidated Statements of Comprehensive Income for the years ended December 31, 2020, 2019 and 2018; (iv) Consolidated Statements of Changes in Shareholders' Equity for the years ended December 31, 2020, 2019 and 2018; (v) Consolidated Statements of Cash Flows for the years ended December 31, 2020, 2019 and 2018; and (vi) Notes to Consolidated Financial Statements, tagged as blocks of text and in detail. | |||||||
†104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
AXIS CAPITAL HOLDINGS LIMITED | ||||||||||||||||||||
By: | /s/ ALBERT BENCHIMOL | |||||||||||||||||||
Albert Benchimol | ||||||||||||||||||||
President and Chief Executive Officer |
Signature | Title | |||||||
/s/ ALBERT BENCHIMOL |
Chief Executive Officer, President and Director
(Principal Executive Officer) |
|||||||
Albert Benchimol | ||||||||
/s/ PETER VOGT |
Chief Financial Officer
(Principal Financial Officer) |
|||||||
Peter Vogt | ||||||||
/s/ KENT ZIEGLER |
Global Corporate Controller
(Principal Accounting Officer) |
|||||||
Kent Ziegler | ||||||||
/s/ W. MARSTON BECKER | Director | |||||||
W. Marston Becker | ||||||||
/s/ CHARLES A. DAVIS | Director | |||||||
Charles A. Davis | ||||||||
/s/ ANNE MELISSA DOWLING | Director | |||||||
Anne Melissa Dowling | ||||||||
Signature | Title | |||||||
/s/ ELANOR R. HARDWICK | Director | |||||||
Elanor R. Hardwick | ||||||||
/s/ THOMAS C. RAMEY | Director | |||||||
Thomas C. Ramey | ||||||||
/s/ HENRY B. SMITH | Director | |||||||
Henry B. Smith | ||||||||
/s/ BARBARA A. YASTINE | Director | |||||||
Barbara A. Yastine | ||||||||
/s/ LIZABETH H. ZLATKUS | Director | |||||||
Lizabeth H. Zlatkus |
At December 31, 2020 | |||||||||||||||||||||||
Amortized cost | Fair value | Amount shown on the balance sheet | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Type of investment: | |||||||||||||||||||||||
Fixed maturities, available for sale, at fair value | |||||||||||||||||||||||
U.S. government and agency | $ | 1,881,489 | $ | 1,918,699 | $ | 1,918,699 | |||||||||||||||||
Non-U.S. government | 632,875 | 671,273 | 671,273 | ||||||||||||||||||||
Corporate debt | 4,408,351 | 4,655,951 | 4,655,951 | ||||||||||||||||||||
Agency RMBS | 1,244,727 | 1,286,209 | 1,286,209 | ||||||||||||||||||||
CMBS | 1,268,273 | 1,353,587 | 1,353,587 | ||||||||||||||||||||
Non-agency RMBS | 136,198 | 140,104 | 140,104 | ||||||||||||||||||||
ABS | 1,712,236 | 1,720,078 | 1,720,078 | ||||||||||||||||||||
Municipals | 282,781 | 295,898 | 295,898 | ||||||||||||||||||||
Total fixed maturities | $ | 11,566,930 | 12,041,799 | 12,041,799 | |||||||||||||||||||
Mortgage loans, held for investment, at fair value | 593,290 | 593,290 | |||||||||||||||||||||
Short-term investments, at fair value | 161,897 | 161,897 | |||||||||||||||||||||
Equity securities, at fair value | 518,445 | 518,445 | |||||||||||||||||||||
Other investments, at fair value (1)
|
539,616 | 829,156 | |||||||||||||||||||||
Equity method investments (2)
|
— | 114,209 | |||||||||||||||||||||
Total investments | $ | 13,855,047 | $ | 14,258,796 | |||||||||||||||||||
2020 | 2019 | ||||||||||
(in thousands) | |||||||||||
Assets | |||||||||||
Investments in subsidiaries | $ | 5,633,176 | $ | 5,807,851 | |||||||
Cash and cash equivalents | 1,711 | 3,103 | |||||||||
Other assets | 5,832 | 5,540 | |||||||||
Total assets | $ | 5,640,719 | $ | 5,816,494 | |||||||
Liabilities | |||||||||||
Intercompany payable | $ | 289,486 | $ | 215,911 | |||||||
Dividends payable | 50,153 | 50,927 | |||||||||
Other liabilities | 5,386 | 5,648 | |||||||||
Total liabilities | 345,025 | 272,486 | |||||||||
Shareholders’ equity | |||||||||||
Preferred shares | 550,000 | 775,000 | |||||||||
Common shares (shares issued 2020: 176,580; 2019: 176,580
shares outstanding 2020: 84,353; 2019: 83,959)
|
2,206 | 2,206 | |||||||||
Additional paid-in capital | 2,330,054 | 2,317,212 | |||||||||
Accumulated other comprehensive income | 414,395 | 171,710 | |||||||||
Retained earnings | 5,763,607 | 6,056,686 | |||||||||
Treasury shares, at cost (2020: 92,227; 2019: 92,621)
|
(3,764,568) | (3,778,806) | |||||||||
Total shareholders’ equity | 5,295,694 | 5,544,008 | |||||||||
Total liabilities and shareholders’ equity | $ | 5,640,719 | $ | 5,816,494 |
2020 | 2019 | 2018 | |||||||||||||||
(in thousands) | |||||||||||||||||
Revenues | |||||||||||||||||
Net investment income
|
$ | 750 | $ | 1,800 | $ | 900 | |||||||||||
Total revenues | 750 | 1,800 | 900 | ||||||||||||||
Expenses | |||||||||||||||||
General and administrative expenses | 37,629 | 53,335 | 29,250 | ||||||||||||||
Total expenses | 37,629 | 53,335 | 29,250 | ||||||||||||||
Income (loss) before equity in net income (loss) of subsidiaries | (36,879) | (51,535) | (28,350) | ||||||||||||||
Equity in net income (loss) of subsidiaries | (83,545) | 375,008 | 71,371 | ||||||||||||||
Net income (loss) | (120,424) | 323,473 | 43,021 | ||||||||||||||
Preferred share dividends | 30,250 | 41,112 | 42,625 | ||||||||||||||
Net income (loss) available (attributable) to common shareholders | $ | (150,674) | $ | 282,361 | $ | 396 | |||||||||||
Comprehensive income (loss) | $ | 122,261 | $ | 672,293 | $ | (158,973) |
2020 | 2019 | 2018 | |||||||||||||||
(in thousands) | |||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||
Net income (loss) | $ | (120,424) | $ | 323,473 | $ | 43,021 | |||||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||||||||
Equity in net (income) loss of subsidiaries | 83,545 | (375,008) | (71,371) | ||||||||||||||
Change in intercompany payable | 73,575 | (32,081) | 87,042 | ||||||||||||||
Dividends received from subsidiaries | 350,000 | 250,000 | 200,000 | ||||||||||||||
Other items | 20,715 | 23,619 | (79,927) | ||||||||||||||
Net cash provided by operating activities | 407,411 | 190,003 | 178,765 | ||||||||||||||
Cash flows from financing activities: | |||||||||||||||||
Taxes paid on withholding shares | (10,382) | (10,165) | (10,080) | ||||||||||||||
Dividends paid - common shares | (141,590) | (137,209) | (133,502) | ||||||||||||||
Repurchase of preferred shares | (225,000) | — | — | ||||||||||||||
Dividends paid - preferred shares | (31,831) | (42,625) | (42,625) | ||||||||||||||
Net cash used in financing activities | (408,803) | (189,999) | (186,207) | ||||||||||||||
Increase (decrease) in cash, cash equivalents and restricted cash | (1,392) | 4 | (7,442) | ||||||||||||||
Cash, cash equivalents and restricted cash - beginning of year | 3,103 | 3,099 | 10,541 | ||||||||||||||
Cash, cash equivalents and restricted cash - end of year | $ | 1,711 | $ | 3,103 | $ | 3,099 | |||||||||||
At and year ended December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) |
Deferred
acquisition costs |
Reserve
for losses and loss expenses |
Unearned
premiums |
Net
premiums earned |
Net
investment income(1)
|
Net losses
and loss expenses |
Acquisition
costs |
Other
operating expenses(2)
|
Net
premiums written |
|||||||||||||||||||||||||||||||||||||||||||||||
Insurance | $ | 176,749 | $ | 7,310,498 | $ | 2,295,763 | $ | 2,299,038 | $ | — | $ | 1,697,014 | $ | 461,533 | $ | 378,839 | $ | 2,357,501 | ||||||||||||||||||||||||||||||||||||||
Reinsurance | 254,690 | 6,616,268 | 1,390,123 | 2,072,271 | — | 1,584,238 | 467,984 | 99,129 | 1,978,908 | |||||||||||||||||||||||||||||||||||||||||||||||
Corporate | — | — | — | — | 349,601 | — | — | 101,822 | — | |||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 431,439 | $ | 13,926,766 | $ | 3,685,886 | $ | 4,371,309 | $ | 349,601 | $ | 3,281,252 | $ | 929,517 | $ | 579,790 | $ | 4,336,409 | ||||||||||||||||||||||||||||||||||||||
At and year ended December 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) |
Deferred
acquisition costs |
Reserve
for losses and loss expenses |
Unearned
premiums |
Net
premiums earned |
Net
investment income(1)
|
Net losses
and loss expenses |
Acquisition
costs |
Other
operating expenses(2)
|
Net
premiums written |
|||||||||||||||||||||||||||||||||||||||||||||||
Insurance | $ | 191,925 | $ | 6,496,568 | $ | 2,115,664 | $ | 2,190,084 | $ | — | $ | 1,278,679 | $ | 468,281 | $ | 401,963 | $ | 2,209,155 | ||||||||||||||||||||||||||||||||||||||
Reinsurance | 300,194 | 6,255,513 | 1,510,582 | 2,397,094 | — | 1,766,119 | 556,301 | 103,772 | 2,280,460 | |||||||||||||||||||||||||||||||||||||||||||||||
Corporate | — | — | — | — | 478,572 | — | — | 129,096 | — | |||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 492,119 | $ | 12,752,081 | $ | 3,626,246 | $ | 4,587,178 | $ | 478,572 | $ | 3,044,798 | $ | 1,024,582 | $ | 634,831 | $ | 4,489,615 | ||||||||||||||||||||||||||||||||||||||
At and year ended December 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) |
Deferred
acquisition costs |
Reserve
for losses and loss expenses |
Unearned
premiums |
Net
premiums earned |
Net
investment income(1)
|
Net losses
and loss expenses |
Acquisition
costs |
Other
operating expenses(2)
|
Net
premiums written |
|||||||||||||||||||||||||||||||||||||||||||||||
Insurance | $ | 209,622 | $ | 6,426,309 | $ | 2,061,123 | $ | 2,362,606 | $ | — | $ | 1,494,323 | $ | 399,193 | $ | 395,252 | $ | 2,324,747 | ||||||||||||||||||||||||||||||||||||||
Reinsurance | 357,000 | 5,854,460 | 1,574,635 | 2,428,889 | — | 1,695,964 | 569,642 | 123,916 | 2,334,215 | |||||||||||||||||||||||||||||||||||||||||||||||
Corporate | — | — | — | — | 438,507 | — | — | 108,221 | — | |||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 566,622 | $ | 12,280,769 | $ | 3,635,758 | $ | 4,791,495 | $ | 438,507 | $ | 3,190,287 | $ | 968,835 | $ | 627,389 | $ | 4,658,962 | ||||||||||||||||||||||||||||||||||||||
(in thousands) |
GROSS AMOUNT |
CEDED TO
OTHER COMPANIES |
ASSUMED
FROM OTHER COMPANIES |
NET
AMOUNT |
PERCENTAGE
OF AMOUNT ASSUMED TO NET |
|||||||||||||||||||||||||||||||||
2020 | ||||||||||||||||||||||||||||||||||||||
Property and Casualty | $ | 3,455,690 | $ | 2,446,890 | $ | 2,840,834 | $ | 3,849,634 | 73.8 | % | ||||||||||||||||||||||||||||
Accident and Health | 154,511 | 43,639 | 375,903 | 486,775 | 77.2 | % | ||||||||||||||||||||||||||||||||
Total | $ | 3,610,201 | $ | 2,490,529 | $ | 3,216,737 | $ | 4,336,409 | 74.2 | % | ||||||||||||||||||||||||||||
2019 | ||||||||||||||||||||||||||||||||||||||
Property and Casualty | $ | 3,134,462 | $ | 2,311,001 | $ | 3,187,623 | $ | 4,011,084 | 79.5 | % | ||||||||||||||||||||||||||||
Accident and Health | 141,535 | 98,242 | 435,238 | 478,531 | 91.0 | % | ||||||||||||||||||||||||||||||||
Total | $ | 3,275,997 | $ | 2,409,243 | $ | 3,622,861 | $ | 4,489,615 | 80.7 | % | ||||||||||||||||||||||||||||
2018 | ||||||||||||||||||||||||||||||||||||||
Property and Casualty | $ | 3,258,999 | $ | 2,163,417 | $ | 3,074,906 | $ | 4,170,488 | 73.7 | % | ||||||||||||||||||||||||||||
Accident and Health | 209,041 | 87,686 | 367,119 | 488,474 | 75.2 | % | ||||||||||||||||||||||||||||||||
Total | $ | 3,468,040 | $ | 2,251,103 | $ | 3,442,025 | $ | 4,658,962 | 73.9 | % |
Performance Level
|
Relative TSR Percentile
|
Performance Multiplier
|
||||||
Maximum
|
85th or above
|
200%
|
||||||
Target
|
55th
|
100%
|
||||||
Threshold
|
25th
|
25%
|
||||||
Minimum
|
below 25th
|
0
|
Subsidiaries
|
Jurisdiction of Incorporation
|
||||
AXIS Specialty Holdings Bermuda Limited
|
Bermuda
|
||||
AXIS Specialty Limited
|
Bermuda
|
||||
AXIS Specialty Investments Limited
|
Bermuda
|
||||
AXIS Specialty Investments II Limited | Bermuda | ||||
AXIS Ventures Limited | Bermuda | ||||
AXIS Ventures Reinsurance Limited | Bermuda | ||||
AXIS Reinsurance Managers Limited
|
Bermuda
|
||||
AXIS Re SE
|
Ireland
|
||||
AXIS Specialty Europe SE
|
Ireland
|
||||
AXIS Specialty Global Holdings Limited
|
Ireland
|
||||
AXIS Specialty Holdings Ireland Limited
|
Ireland
|
||||
Ternian Insurance Group LLC | Arizona | ||||
AXIS Specialty Insurance Company
|
Connecticut
|
||||
AXIS Group Services, Inc.
|
Delaware
|
||||
AXIS Specialty Finance LLC
|
Delaware
|
||||
AXIS Specialty U.S. Holdings, Inc.
|
Delaware
|
||||
AXIS Specialty U.S. Services, Inc.
|
Delaware
|
||||
AXIS Specialty Underwriters, Inc.
|
Delaware
|
||||
AXIS Insurance Company
|
Illinois
|
||||
AXIS Surplus Insurance Company
|
Illinois
|
||||
AXIS Reinsurance Company
|
New York
|
||||
AXIS Managing Agency Ltd. | United Kingdom | ||||
AXIS Specialty Finance PLC | United Kingdom | ||||
AXIS Specialty UK Holdings Limited
|
United Kingdom | ||||
AXIS Corporate Capital UK Limited
|
United Kingdom |
AXIS Corporate Capital UK II Limited
|
United Kingdom | ||||
Novae Group Limited
|
United Kingdom | ||||
AXIS UK Services Limited
|
United Kingdom | ||||
Novae Holdings Limited
|
United Kingdom | ||||
Novae Syndicates Limited
|
United Kingdom | ||||
AXIS Underwriting Limited
|
United Kingdom | ||||
Contessa Limited
|
United Kingdom | ||||
AXIS Re SE Escritório de Representação No Brasil Ltda.
|
Brazil | ||||
AXIS Specialty Canada Services, ULC
|
British Columbia | ||||
AXIS Reinsurance (DIFC) Limited
|
Dubai |
Guaranteed Securities | Issuer (Jurisdiction) |
Guarantor (Jurisdiction)
|
||||||
5.875% Senior Notes due 2020 (repaid in 2020) | AXIS Specialty Finance LLC (Delaware) |
AXIS Capital Holdings Limited (Bermuda)
|
||||||
5.150% Senior Notes due 2045 | AXIS Specialty Finance PLC (United Kingdom) |
AXIS Capital Holdings Limited (Bermuda)
|
||||||
4.000% Senior Notes due 2027 | AXIS Specialty Finance PLC (United Kingdom) |
AXIS Capital Holdings Limited (Bermuda)
|
||||||
3.900% Senior Notes due 2029 | AXIS Specialty Finance LLC (Delaware) |
AXIS Capital Holdings Limited (Bermuda)
|
||||||
4.900% Junior Subordinated Notes due 2040 | AXIS Specialty Finance LLC (Delaware) |
AXIS Capital Holdings Limited (Bermuda)
|
/s/ Deloitte Ltd. | ||
Hamilton, Bermuda | ||
February 26, 2021 |
/s/ ALBERT BENCHIMOL | ||||||||
Date: | February 26, 2021 |
Albert Benchimol
President and Chief Executive Officer |
/s/ PETER VOGT | ||||||||
Date: | February 26, 2021 |
Peter Vogt
Chief Financial Officer |
Date: | February 26, 2021 | /s/ ALBERT BENCHIMOL | ||||||
Albert Benchimol | ||||||||
President and Chief Executive Officer |
Date: | February 26, 2021 | /s/ PETER VOGT | ||||||
Peter Vogt | ||||||||
Chief Financial Officer |